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Updated over 1 year ago on . Most recent reply
![Kenny Kuramoto's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2534630/1694579831-avatar-kennyk47.jpg?twic=v1/output=image/cover=128x128&v=2)
Help me understand this Hard Money Term Sheet
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!
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![Abbey Humphreys's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2770742/1692896332-avatar-abbeyh6.jpg?twic=v1/output=image/crop=1996x1996@190x633/cover=128x128&v=2)
Hey Kenny- hope this helps!
- 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