Glossary of Hard Money, Private Money, Commercial Loan, SBA, Title, Deed, and Commercial Real Estate Terms

A loan provision that may allow a lender to demand the full balance due if a borrower defaults or violates material loan terms.

An investor classification based on income, net worth, or entity status that may affect private investment eligibility.

The estimated value of a property after planned repairs, renovations, or improvements are completed.

The scheduled repayment of principal and interest over time, often shown through a payment schedule.

A professional opinion of property value based on comparable sales, income, replacement cost, and market conditions.

A loan document giving the lender rights to rental income if the borrower defaults.

A transaction where a buyer may take over an existing loan if the loan documents and lender allow it.

A larger final payment due at maturity after a series of smaller scheduled payments.

A loan secured by more than one property or parcel of real estate.

Short-term financing used to bridge a timing gap, pending sale, refinance, lease-up, or stabilization period.

A revolving business credit facility that can be drawn, repaid, and redrawn subject to the lender agreement.

A commercial real estate metric calculated by dividing net operating income by property value or purchase price.

A refinance where the requested new loan may exceed the reported payoff of current debt.

A state-issued document confirming that a business entity is active and compliant with certain filing requirements.

The historical sequence of ownership transfers affecting a property.

Title that appears free from unresolved liens, ownership disputes, or defects that would impair transfer or financing.

Fees and charges paid at closing, which may include title, escrow, recording, lender, legal, and third-party costs.

Property or other assets pledged as security for a loan.

Short-term commercial property financing often used for acquisition, refinance, renovation, lease-up, or stabilization.

A loan secured by income-producing or business-use real estate such as multifamily, office, retail, warehouse, hotel, or mixed-use property.

The planned cost to build, renovate, or improve a property, often reviewed with plans, permits, and contractor information.

A staged disbursement of construction loan proceeds after work is completed or inspected.

Funds set aside for unexpected costs, repairs, overruns, or project delays.

A report showing credit history, accounts, payment performance, inquiries, and public-record or collection information where applicable.

A numerical indicator of credit risk based on credit history and scoring model criteria.

A structure where one loan is secured by multiple properties or where collateral supports more than one obligation.

Required payments of principal and interest on a loan over a stated period.

A ratio comparing property or business income to required debt payments; commonly used in rental and commercial review.

A legal instrument used to transfer ownership interest in real property.

A transfer of property to a lender as an alternative to foreclosure when accepted by the lender.

A security instrument used in some states that places legal title with a trustee until the loan obligation is satisfied.

Failure to meet a loan obligation, such as payment, insurance, taxes, reporting, occupancy, or other covenant requirements.

A commercial loan payoff structure where substitute collateral may replace the original real estate collateral under certain loan terms.

The review process for confirming property, borrower, title, income, value, risk, and transaction details before closing.

Deposit funds delivered by a buyer to show seriousness under a purchase contract.

The difference between property value and outstanding debt secured by the property.

A neutral holding arrangement for funds, documents, taxes, insurance, or closing instructions.

The borrower's plan to repay or replace the loan, such as sale, refinance, stabilization, lease-up, or long-term financing.

A review of whether a proposed project appears practical based on cost, timing, market demand, approvals, and income potential.

Short-term investment-property financing used to purchase, renovate, and resell a property.

A determination of whether a property is located in a flood zone that may require flood insurance.

A temporary arrangement where a lender may agree to pause, reduce, or modify payments under specific conditions.

A legal process by which a lender seeks to enforce its rights against collateral after default.

A refinance or short-term loan scenario intended to resolve urgent foreclosure or maturity pressure when sufficient equity and exit strategy exist.

Additional capital used to cover a shortfall between available borrower funds and the total funds needed for a transaction.

A deed in which the grantor typically gives broad warranties about title, subject to the language of the document.

Financing used to build new property improvements, typically reviewed around land value, budget, plans, permits, and borrower contribution.

A person or entity that agrees to be responsible for repayment or obligations if the borrower does not perform.

Asset-focused financing often used by investors for time-sensitive, transitional, renovation, or non-bankable scenarios.

Insurance coverage for physical damage risks to collateral property.

Funds withheld at closing and released later after conditions are met, such as repairs, tenant improvements, or construction draws.

Commercial financing for hotel or motel properties, often reviewed around occupancy, revenue, franchise status, management, and value.

A valuation method that estimates commercial property value based on income, expenses, and capitalization assumptions.

Loan proceeds or borrower funds set aside to cover interest payments during a construction, renovation, or stabilization period.

A loan where scheduled payments cover interest for a defined period without reducing principal.

Financing for non-owner-occupied investment property rather than a primary residence.

A lien that may attach to property after a court judgment, subject to state law and recording rules.

The process of filling vacant units or commercial space with tenants until a property reaches stabilized occupancy.

A preliminary written summary of proposed transaction terms before a formal agreement or loan commitment.

A legal claim or encumbrance against property that may secure a debt or obligation.

The priority order of liens against property, such as first lien, second lien, or subordinate lien.

A guaranty where the guarantor's responsibility may be limited by amount, scope, time, or specific carveouts.

A written lender agreement to provide financing subject to stated terms, conditions, and closing requirements.

A fee charged by a lender or funding source for arranging or originating a loan.

A ratio comparing the loan amount to the total project cost, often used in construction and renovation lending.

A ratio comparing the loan amount to the property value used for underwriting.

A cash-management arrangement where rents or operating income may be directed to a controlled account.

The date when a loan must be paid off, renewed, extended, or otherwise resolved.

Subordinate financing often secured by ownership interests rather than a direct mortgage lien.

A property containing more than one use, such as retail and apartments, office and residential, or commercial and storage.

A security instrument that gives a lender a lien against real property to secure repayment.

Financing for properties with multiple residential units, commonly five or more units in commercial lending.

Property income after operating expenses but before debt service, capital expenditures, depreciation, and taxes.

Property that is not used as the borrower's primary residence; many investor/private capital scenarios require this status.

A recorded or delivered notice that a borrower is in default under loan or deed-of-trust terms.

A governing document for an LLC that may identify ownership, management authority, and signing powers.

Regular property expenses such as taxes, insurance, utilities, management, repairs, payroll, and maintenance.

Upfront fees expressed as a percentage of the loan amount.

Commercial property occupied by the business that owns or controls it.

A loan where more than one lender or investor may share funding, risk, or economic interest.

A written statement showing the amount required to pay a loan in full as of a specific date.

A promise by an individual to be personally responsible for business or entity debt obligations.

A map showing property boundaries, lots, easements, streets, or subdivisions.

Fees expressed as a percentage of the loan amount, often charged at closing.

A charge that may apply if a loan is paid off before a specified date or period.

A non-bank funding source that may provide capital using its own funds or private investor capital.

Financing provided by a private lender or investor rather than a traditional bank.

The borrower's written promise to repay a loan according to stated terms.

Financing used to acquire property, usually tied to a purchase contract and closing.

A deed that transfers whatever interest the grantor may have without broad warranties of title.

A refinance primarily intended to replace existing debt without significant new cash-out proceeds.

A loan structure where the borrower or guarantor may be personally liable beyond the collateral under certain circumstances.

The planned repair or renovation budget for an investment property project.

A recorded document showing that a lien has been satisfied or released.

A schedule of tenants, rents, lease terms, deposits, and occupancy information for rental property.

Funds set aside for future capital repairs or replacements.

Required cash or funds held to cover payments, repairs, taxes, insurance, or operating risk.

An SBA-backed financing structure often used for owner-user real estate and major fixed assets with a CDC and lender component.

A flexible SBA-guaranteed business loan program that may support working capital, business acquisition, debt refinance, or owner-user real estate.

The amount of time an asset, ownership, loan, funds, or credit history has existed.

A subordinate mortgage or deed of trust behind a first-lien loan.

A mortgage, deed of trust, or similar document used to secure repayment with real property.

The highest-priority debt position, generally paid before subordinate debt.

The point where a property reaches expected occupancy, income, repairs, or operating performance.

An agreement or status where one lien or claim is placed behind another in priority.

A lien for unpaid taxes that may affect property title or closing.

A preliminary summary of proposed loan or investment terms, usually subject to due diligence and final approval.

A title company's commitment to issue title insurance subject to listed requirements and exceptions.

Insurance protecting against certain covered title defects, liens, or ownership issues.

A review of public records to identify ownership, liens, encumbrances, and title issues.

An investment secured by a deed of trust or mortgage on real property.

A public financing statement used to perfect a security interest in certain business assets or personal property.

The review of borrower, collateral, income, risk, title, value, and repayment ability before loan approval.

Financing secured by land without completed income-producing improvements, often reviewed carefully around value and exit strategy.

Credit used by some lenders to fund loans before sale, payoff, or longer-term placement.

Business funds used for operations, payroll, inventory, marketing, or short-term cash-flow needs.

Local rules governing allowed property uses, density, structures, parking, and development standards.