Help me understand this Hard Money Term Sheet

[Kenny Kuramoto]

I wanted to see If i got this explanation right on this Hard Money Lender. I know people will have this question so here is a sample sheet I have. For context this my first BRRR so thats why the rates are probably high.

I was wondering a couple things

1. Estimated Cash due is what I have to put in? Is it my Down plus fees? 

2. How is my Down Calculated?  25% down of the Purchase Price?

3. They are only offering me 65% of ARV ?

Thanks everyone!

[Abbey Humphreys]

Hey Kenny- hope this helps!

1. 1. Estimated Cash due is what I have to put in? Is it my Down plus fees?

Yes – it looks like they are including some fees and costs but note the asterisk which says there might be additional fees to come

     2. How is my Down Calculated? 25% down of the Purchase Price?

This is a pretty poorly structured term sheet since this should be pretty easy to follow. It looks like they are offering a $101,500 Loan to purchase and then financing all of the renovation budget, but its not 100% obvious

3. They are only offering me 65% of ARV ?

Yes, that’s what it looks like. With your credit and assuming it’s a solid deal, these at first glance don’t look like great terms, you should consider shopping around