Real Estate Investor Glossary

See ARV — the estimated market value of a property after all renovations are complete.

The estimated market value of a property after all planned renovations are complete.

The current market value of a property in its existing condition, before any renovations.

Short-term financing used to 'bridge' the gap between buying a new property and selling or refinancing an existing one.

A structured plan for disbursing rehab loan funds in installments as renovation work is completed and verified.

The plan for how an investor will repay their loan — typically by selling the property or refinancing into long-term debt.

A short-term real estate loan designed for investors who buy, renovate, and resell properties for profit.

Asset-based short-term lending secured by real property, typically used by investors who need fast financing without traditional income verification.

The ongoing expenses an investor incurs while owning a property — including interest, taxes, insurance, and utilities — before it is sold or refinanced.

See LTC — the ratio of the total loan amount to total project cost.

See LTV — the ratio of the loan amount to property value (typically ARV for flip loans).

The ratio of the total loan amount to the total project cost (purchase price + rehab budget).

The ratio of the loan amount to the appraised value of the property, expressed as a percentage.

A non-bank lender — typically a fund, specialty finance company, or individual — that provides real estate loans based on property value rather than borrower income.

The price paid to acquire an investment property, before renovation costs.

The estimated total cost to complete all planned renovations on an investment property.