Preferred & Tiered Funding Senior Tranche The highest-priority debt slice in a structured deal, repaid first.
Preferred & Tiered Funding Subordination Agreement A contract establishing the order of repayment between multiple lenders.
Private & Hard Money After-Repair Value (ARV) The estimated value of a property after planned renovations are complete.
Private & Hard Money Bad-Boy Carve-Out Non-recourse loan exceptions triggered by fraud, waste, or misrepresentation.
Private & Hard Money Bridge Loan Short-term financing used to bridge the gap between buying a new property and selling another.
Private & Hard Money Cross-Default A loan provision triggering default on one loan if another loan is in default.
Private & Hard Money Draw Schedule A pre-agreed timetable for releasing rehab or construction funds as work progresses.
Private & Hard Money Fix-and-Flip Loan A short-term loan to acquire and renovate a property for quick resale.
Private & Hard Money Gap Funding Capital that fills the difference between a senior loan and the borrower’s available equity.
Private & Hard Money Hard Money Loan A short-term, asset-based loan from a private lender, typically at higher rates than banks.
Private & Hard Money Holdback Loan proceeds held in reserve and released as construction or rehab milestones are met.
