Glossary # Private Money Loan Glossary The terms you will run into as a Texas investor, with the definition and how we actually use it at Cedar Top. [Apply Now](https://cedartoplending.com/apply/) [Rates & Terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/) Hard money loan A short-term, asset-based loan secured by real estate, underwritten primarily on the property and the deal rather than the borrower's credit score. Our hard money rates start at 12% with 2 to 4 points, on Texas non-owner-occupied investment property. [Learn more](https://cedartoplending.com/hard-money-loans/). Private money Financing from a private lender rather than a bank, often used by real estate investors for speed and flexibility. We are investors ourselves, so we read a deal the way you do. ARV (After-Repair Value) The estimated value of a property after planned renovations are complete, supported by comparable sales. On a fix and flip we lend up to 75% of ARV, so a realistic ARV drives how much you can borrow. [Learn more](https://cedartoplending.com/hard-money-loans/fix-and-flip/). LTV (Loan-to-Value) The loan amount as a percentage of the property's current value. Bridge and commercial go up to 75% LTV; new construction up to 70% LTV. LTC (Loan-to-Cost) The loan amount as a percentage of the total project cost, purchase plus rehab or construction. On new construction we lend up to 90% of loan to cost. [Learn more](https://cedartoplending.com/hard-money-loans/new-construction/). Points An origination fee expressed as a percentage of the loan amount. One point equals 1% of the loan. We charge 2 to 4 points depending on the program and the deal. [Learn more](https://cedartoplending.com/hard-money-loans/rates-and-terms/). Draw A release of rehab or construction funds, made as work is completed and inspected. Our draw fees start at $250, and we typically fund the day after the inspection report comes in. [Learn more](https://cedartoplending.com/resources/draw-process/). Bridge loan Short-term financing that bridges a property between transactions, such as an acquisition before a refinance or sale. Transactional funding Very short-term funding for a same-day A-B-C double closing, used by wholesalers with an end buyer in place. Our fee is 1.5%, or a $1,500 minimum, paid at closing. No upfront fees, and nothing if the deal does not close. [Learn more](https://cedartoplending.com/hard-money-loans/transactional-funding/). Double close (A-B-C) Two back-to-back closings: the investor buys from the seller (A-B) and immediately resells to the end buyer (B-C). Exit strategy How the loan will be repaid, typically a sale or a refinance. We look at the exit on every deal. Qualified intermediary (QI) A third party that facilitates a 1031 exchange by holding exchange funds and preparing documentation. We act as the qualified intermediary on Texas 1031 exchanges. [Learn more](https://cedartoplending.com/1031-exchange/). 1031 exchange A transaction under IRC Section 1031 that may defer capital gains tax when investment property is exchanged for like-kind property. Consult your tax advisor. Non-owner-occupied Property that is not the borrower's primary residence, held for investment or business purposes. Every loan we make is on non-owner-occupied Texas investment property, to an entity rather than an individual. Loan servicing Ongoing administration of a loan: collecting payments, accounting, statements, escrow, and reporting. We service owner-finance notes, wrap loans, and private-lender loans across Texas. [Learn more](https://cedartoplending.com/loan-servicing/). ## Texas Private Money Lending From Cedar Top Now that you know the terms, apply now or call us and we will walk your deal through with you. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) [Call 817-984-3129](tel:+18179843129) --- Canonical URL: https://cedartoplending.com/resources/private-money-loan-glossary/