REAL ESTATE INVESTOR FINANCING
Understand the terminology used throughout real estate and business financing — what each term means, how it works, typical financing practice, and how it relates to financing available through Green Fire Strategies.
What it is. The first leg of a double close — the investor's purchase (A) from the seller (B).
How it works. Transactional funding covers the A-B purchase; the B-C closing repays it the same day.
Typical financing practice. The A-B contract is a required document for double-close, stack, and echo requests.
AR · Accounts Receivable Financing · AR Financing
What it is. Money owed to a business by its customers; can be financed through invoice/AR financing.
How it works. A business borrows against eligible unpaid invoices; the advance depends on the customer's (account debtor's) credit.
Typical financing practice. Invoice financing bridges the timing gap between delivering a product or service and getting paid.
How it applies here. Invoice / AR financing is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. The portion of a fix-and-flip or construction loan applied toward purchasing the property, after other eligible costs (such as rehab) are funded first.
How it works. When rehab is allocated first within the loan, the remaining loan proceeds are applied toward the acquisition.
Typical financing practice. Allocating rehab first protects the renovation budget so it is fully funded, with the remaining loan capacity used toward the purchase price.
How it applies here. Green Fire Strategies' Fix & Flip structure allocates the elected eligible rehab budget within the loan first, with remaining proceeds applied toward acquisition.
ADU · Accessory Dwelling Unit
What it is. A secondary, self-contained living space on the same lot as a primary residence — such as a detached cottage, garage conversion, or basement unit.
How it works. ADUs can be rented for income. Local zoning and permitting determine whether an ADU can be built or rented legally.
Typical financing practice. ADUs are treated as a property feature that can increase rental income and value, which may affect financing on the property.
How it applies here. Rental income from a legal ADU may support DSCR rental financing available through Green Fire Strategies, subject to program guidelines and rent verification.
ARV · After Repair Value
What it is. The estimated market value of an investment property after all planned renovations are complete.
How it works. ARV is typically based on comparable sales of similar, finished properties in the same market. It represents the value the property should support once the work is finished — not its current condition.
Typical financing practice. Many fix-and-flip and value-add programs size the loan using a percentage of ARV (an ARV or LTARV cap) in addition to the cost of the project, so the financing does not exceed what the finished property is worth.
How it applies here. Fix & Flip financing available through Green Fire Strategies can reach up to 75% of ARV (LTARV). Maximum Leverage Fix & Flip can reach up to 95% LTC and 100% eligible rehab, while Express uses a lower LTC ceiling in exchange for faster execution. Applicable ARV constraints also apply.
What it is. The process of paying off a loan through scheduled payments of principal and interest over a set term.
How it works. Each payment covers interest for the period and applies a portion to principal. Early payments are mostly interest; later payments are mostly principal.
Typical financing practice. A 30-year amortization spreads full repayment across 30 years. Interest-only periods delay principal repayment, so the balance remains unchanged during that period.
How it applies here. DSCR rental financing available through Green Fire Strategies includes fully amortizing 30-year fixed options as well as interest-only-plus-amortizing structures.
What it is. An independent professional opinion of a property's market value, usually prepared by a licensed appraiser.
How it works. The appraiser inspects the property and compares it to recent sales of similar properties to estimate value.
Typical financing practice. Lenders use appraisals to confirm that the loan amount is supported by the property's value. Valuation outcomes are not guaranteed.
How it applies here. Many financing options available through Green Fire Strategies require an appraisal or valuation as part of underwriting; the valuation result is not guaranteed.
What it is. A lender's decision to provide financing on stated terms, after underwriting.
How it works. Approval is stronger than prequalification or preliminary terms. Conditional approval may still require conditions to be cleared.
Typical financing practice. Approval is distinct from prequalification, preliminary terms, and commitment; it is not a guarantee of funding.
What it is. The document filed with a state to form a limited liability company (LLC), identifying the business entity.
How it works. Articles of Organization establish the LLC as a legal entity separate from its owners.
Typical financing practice. Lenders commonly request Articles of Organization and the Operating Agreement to confirm the borrowing entity and authorized signers.
What it is. The estimated value of a property in its current condition, before any renovation or repair work.
How it works. As-is value reflects what the property is worth today, not what it will be worth after improvements.
Typical financing practice. Lenders may cap financing based on as-is value, ARV, or both, depending on the program.
What it is. The second leg of a double close — the investor's resale (B) to the end buyer (C).
How it works. The B-C closing repays the A-B transactional funding from the end buyer's funds the same day.
Typical financing practice. A verified, funded end buyer for the B-C leg is required.
What it is. A record of a business's or individual's account balances and transactions, used to verify liquidity and revenue.
How it works. Lenders request bank statements to verify reserves, liquidity, and (for business) revenue.
Typical financing practice. Proof of liquidity is commonly shown through recent bank statements.
What it is. A single loan that covers multiple properties under one structure, often with individual property release provisions.
How it works. One loan is secured by several properties. A release provision lets the borrower pay down part of the loan to free (release) an individual property for sale or refinance.
Typical financing practice. Blanket loans are used by investors growing a rental portfolio who want a single financing structure across multiple properties.
How it applies here. Portfolio / blanket loan financing is an available DSCR rental option through Green Fire Strategies, subject to program guidelines.
Borrower Capital · Equity
What it is. The cash or equity a borrower brings to a transaction — the portion of the deal not covered by financing.
How it works. Borrower contribution is the difference between total project cost (or purchase price plus costs) and the loan amount.
Typical financing practice. Most programs require some borrower contribution. Higher-leverage programs reduce (but rarely eliminate) the cash needed.
How it applies here. Some programs available through Green Fire Strategies can reach up to 95% LTC, reducing — but not always eliminating — the borrower contribution required.
What it is. Short-term financing used to acquire or hold an investment property temporarily, until a sale or permanent refinancing pays it off.
How it works. Bridge loans are typically interest-only with a short term (often months to a couple of years) and are repaid from a sale or a refinance (the exit).
Typical financing practice. Investors use bridge for time-sensitive acquisitions or to stabilize a property before refinancing into long-term debt. Bridge is generally not intended for major rehab — that routes toward Fix & Flip.
How it applies here. Bridge financing available through Green Fire Strategies includes Maximum Leverage and Express options. Express Bridge is intended for rent-ready or substantially complete properties; meaningful rehab routes to Fix & Flip.
BTR · Build to Rent
What it is. Financing for investors constructing properties they intend to retain as income-producing rentals — construction followed by permanent rental financing.
How it works. The construction phase funds the build through a draw schedule; the permanent phase provides long-term rental financing once the property is complete and stabilized.
Typical financing practice. Some structures use two separate closings (construction loan, then permanent rental loan); others use a one-time-close that combines both.
How it applies here. Build-to-Rent financing available through Green Fire Strategies includes two-close and one-time-close (OTC) options.
What it is. Credit established in a business's name, separate from the owner's personal credit.
How it works. Business credit is built through tradelines in the business's name and a track record of payment.
Typical financing practice. Some business financing evaluates business credit in addition to personal credit.
BLOC · Business LOC · Business Line of Credit
What it is. Revolving credit a business can draw against, repay, and reuse — similar to a credit card but for business use.
How it works. Approved businesses access capital up to a credit limit and pay on the drawn balance. Qualification is typically revenue-based.
Typical financing practice. Owning an LLC alone does not qualify a business for a line of credit; revenue and business history generally matter.
How it applies here. Business lines of credit are an available gap-funding and business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. The income a business generates, used to qualify revenue-based financing.
How it works. Average monthly revenue and time in business drive business-funding options.
Typical financing practice. Business-funding prequalification asks for average monthly revenue and time in business.
How it applies here. Green Fire Strategies' business prequalification asks for average monthly revenue (e.g. $0–$9,999 up to $100,000+) and time in business.
What it is. A lump-sum loan repaid in fixed payments over a set term, where the amount is set by the lender based on the business profile.
How it works. The borrower receives a lump sum and repays on a fixed schedule. The loan size is determined by the lender, not by a single deal.
Typical financing practice. Term loans are used for expansion, equipment, or other larger business needs. They differ from revolving lines of credit.
How it applies here. Business term loans are an available business-funding option reviewed through Green Fire Strategies' prequalification.
Gap
What it is. The amount of money still needed to complete a transaction after the primary financing and borrower cash are accounted for.
How it works. Capital gap = total funds required − primary financing − borrower cash − other capital. A positive gap means more capital is still needed.
Typical financing practice. Gap-funding tools (unsecured capital, HELOCs, business lines, securities-backed financing, second-position structures) are used to cover a capital gap.
How it applies here. Green Fire Strategies uses multiple capital tools to help solve the missing piece. Use the Funding Gap Calculator to estimate a remaining gap.
What it is. Refinancing an existing loan for more than the current balance, with the extra amount taken as cash.
How it works. The new loan pays off the old loan and releases the difference to the borrower, accessing accumulated equity.
Typical financing practice. Investors use cash-out refinances to pull equity out of a property for other investments or to recover capital. Available equity depends on value and program limits.
How it applies here. Cash-Out Refinance is an available DSCR rental transaction type through Green Fire Strategies.
CO · Certificate of Occupancy
What it is. A document from a local government confirming a building is safe to occupy and meets code requirements.
How it works. After construction passes inspections, the jurisdiction issues a CO, allowing the property to be legally occupied.
Typical financing practice. Construction-to-permanent and build-to-rent financing often require a CO (or equivalent) before the permanent phase can fund.
What it is. Ownership of a property free of unresolved liens or claims (see Title).
How it works. Title work confirms clear title; it is generally required to close.
Typical financing practice. Existing liens must be cleared (released) or subordinated before clear title transfers.
What it is. The stage where underwriting conditions are satisfied and the loan is approved to fund.
How it works. After all conditions (documents, valuation, title) are cleared, the file moves to closing.
Typical financing practice. Clear to close does not guarantee a specific closing date; third-party and title coordination still apply.
What it is. The process of finalizing a real estate or loan transaction, signing documents, and transferring funds.
How it works. At closing, the title or escrow company coordinates signing, records documents, and disburses money according to the settlement statement.
Typical financing practice. Closing costs, fees, and timing vary by transaction and jurisdiction.
What it is. The fees and expenses paid to complete a transaction, beyond the purchase price or loan amount.
How it works. Closing costs include title, escrow, recording, origination, and other third-party fees.
Typical financing practice. Closing costs are separate from origination points and are not always financed. Borrowers should budget for them.
What it is. Property or other assets that secure a loan — the lender can claim the collateral if the loan is not repaid.
How it works. The collateral is pledged against the loan. Real estate financing is typically secured by the property being financed.
Typical financing practice. Some financing is secured by real estate; other financing (unsecured term loans, credit stacking) is not secured by a specific property.
CLTV
What it is. The combined amount of all loans on a property divided by the property's value.
How it works. CLTV = (first loan + second loan) ÷ value. It accounts for multiple liens on the same property.
Typical financing practice. Lenders use CLTV when a second lien (such as a HELOC or second-position structure) is placed behind a first loan.
How it applies here. CLTV is relevant to HELOC and second-position cross-collateralized gap funding available through Green Fire Strategies.
What it is. Real estate used for business purposes (retail, office, industrial, mixed-use) rather than residential.
How it works. Commercial properties are underwritten differently from residential investment properties, often based on the property's income.
Typical financing practice. Some programs accept mixed-use or commercial collateral; program eligibility varies.
What it is. A binding written agreement by a lender to provide financing on stated terms, after underwriting is complete.
How it works. A commitment is stronger than a prequalification or preliminary terms — it represents a formal, documented agreement to lend.
Typical financing practice. Commitments are distinct from prequalification, preliminary terms, and approval. Any binding obligation must arise from a written agreement executed by the appropriate parties.
How it applies here. A commitment for financing available through Green Fire Strategies arises only from a written agreement executed by the appropriate parties — not from submitting an application.
What it is. The projected value of a property once construction or renovation is finished.
How it works. Completed value is based on comparable finished properties, similar to ARV but used most often for construction.
Typical financing practice. Construction programs may cap the loan using a percentage of completed value in addition to LTC.
How it applies here. Ground-Up Construction financing available through Green Fire Strategies can reach up to 95% LTC, subject to applicable completed-value constraints.
What it is. A preliminary approval that remains subject to conditions being satisfied before funding.
How it works. The borrower must clear listed conditions (documents, valuation, verification) before the loan can fund.
Typical financing practice. Conditional approval is not a final approval and does not guarantee funding.
What it is. A property where the owner holds title to an individual unit and shares common areas with other unit owners.
How it works. Condos have a homeowners association and shared common elements. Lenders review the condo project's eligibility.
Typical financing practice. Some condos are 'non-warrantable' (do not meet standard agency condo guidelines), which can affect financing availability.
What it is. The total planned cost to build or renovate, including hard costs, soft costs, and contingency.
How it works. The budget is broken into categories (materials, labor, permits, etc.) and funded through a draw schedule as milestones complete.
Typical financing practice. Lenders review the budget for reasonableness against the scope of work and completed value.
What it is. A release of construction funds tied to a completed milestone in the draw schedule.
How it works. After a milestone is completed and inspected, the lender releases the corresponding draw to fund that stage of work.
Typical financing practice. Draws fund over time — not the full budget on day one. Digital draw inspections can be completed quickly.
How it applies here. Green Fire Strategies offers 24-hour digital draw inspections on supported construction and fix-and-flip programs.
What it is. A structure that combines construction financing and permanent financing into a single loan that converts when construction is complete.
How it works. The loan funds construction through draws, then converts to permanent financing once the property is finished and qualifies.
Typical financing practice. A one-time-close (OTC) construction-to-permanent loan avoids a second closing. Build-to-Rent often uses this structure.
What it is. An individual's personal credit history and score, used in personal and many business credit decisions.
How it works. Consumer credit is reflected in a FICO score and credit report.
Typical financing practice. Many business and gap-funding tools still evaluate consumer credit.
What it is. An amount reserved in a construction budget to cover unexpected costs.
How it works. A contingency line holds funds in reserve; unused contingency may be released or reallocated per program guidelines.
Typical financing practice. Lenders often require a contingency in the budget to protect against cost overruns.
What it is. A written estimate from a contractor for completing specified work.
How it works. Contractor bids support the rehab/construction budget and scope of work during underwriting.
Typical financing practice. Lenders review bids for reasonableness against the scope and ARV/completed value.
FICO · Credit Score · FICO Score
What it is. A number representing a consumer's credit risk, calculated from credit history.
How it works. FICO scores range roughly from 300 to 850. Higher scores generally reflect stronger credit and may support better terms.
Typical financing practice. Many programs publish a minimum credit guideline. Some financing (securities-backed, transactional) is not primarily credit-based.
How it applies here. Credit guidelines vary by program. Green Fire Strategies' Fix & Flip core program references a 660 guideline; Express references 600. Transactional funding does not pull credit.
Credit Sponsor · Guarantor
What it is. A person with stronger credit who supports an application, agreeing to be responsible for the obligation.
How it works. A sponsor or guarantor's credit and assets support the loan. A personal guarantee is common.
Typical financing practice. Sponsorship can help a borrower with limited credit qualify, subject to program rules.
How it applies here. Credit sponsorship is discussed as a resource through Green Fire Strategies where program guidelines permit.
What it is. The percentage of available credit a borrower is using on revolving accounts.
How it works. Utilization = balances ÷ credit limits. Lower utilization generally helps a credit profile.
Typical financing practice. Reducing utilization (for example through debt consolidation) before applying for more capital can improve approvals, but no specific FICO gain is guaranteed.
How it applies here. Debt consolidation to reduce utilization is an available gap-funding step reviewed through Green Fire Strategies' prequalification.
What it is. Securing a loan using more than one property, or using a separate property to secure a loan on a different transaction.
How it works. A second property is pledged as additional collateral. Second-position cross-collateralized gap funding borrows against equity in a separate property.
Typical financing practice. Cross-collateralization can fund larger gaps beyond unsecured capacity, but it ties another property to the transaction.
How it applies here. Second-position cross-collateralized gap funding is an available option through Green Fire Strategies, subject to appraisal and program guidelines.
What it is. Restructuring or paying down existing debts (often revolving balances) to reduce monthly payments and utilization.
How it works. A consolidation loan pays off multiple balances, ideally leaving a lower overall monthly obligation and lower utilization.
Typical financing practice. Reducing utilization can prepare a profile for larger capital approvals, but no specific FICO improvement is guaranteed.
How it applies here. Debt consolidation is an available first step in the Gap Funding prequalification through Green Fire Strategies.
DSCR
What it is. A ratio comparing a rental property's income to its housing payment, used to qualify rental financing on cash flow rather than personal income.
How it works. DSCR = gross monthly rent ÷ PITIA (the total housing payment). A ratio at or above 1.0 generally means the rent covers the payment.
Typical financing practice. Programs publish minimum DSCR guidelines. Stronger coverage generally supports stronger terms; weaker coverage may route to flexible programs.
How it applies here. DSCR rental financing available through Green Fire Strategies includes programs down to 0.75x DSCR, with flexible / no-minimum-DSCR options for weaker coverage. Actual qualifying DSCR may differ based on the methodology used for qualifying rent, taxes, insurance, HOA/PUD expenses, debt service, appraisal findings, and other underwriting adjustments.
Funding
What it is. The release of loan funds — at closing and through construction draws.
How it works. Funding occurs when the loan money is wired or disbursed. For construction, funding happens in stages through draws.
Typical financing practice. Funding is the final step after closing; it does not occur until all closing and title conditions are met.
What it is. A list of documents a borrower should prepare to support a financing application.
How it works. Checklists typically include entity documents, purchase contracts, scope of work, contractor bids, bank statements, and value information.
Typical financing practice. Having documents ready speeds review; not all documents are required for every program.
What it is. Back-to-back closings where an investor buys a property (A-B) and immediately resells it (B-C) the same day, using transactional capital for the A-B purchase.
How it works. Transactional funding covers the A-B purchase; the B-C closing repays it the same day from the end buyer's funds.
Typical financing practice. Double-close pricing is typically a percentage of the A-B amount up to a threshold, with tiered pricing above that threshold.
How it applies here. Double Close funding is available through Green Fire Strategies at 1.25% up to $1M, with tiered pricing above $1M provided in writing after review.
What it is. The portion of the purchase price a buyer pays in cash, not financed by the loan.
How it works. Down payment = purchase price − financed amount. It is part of the borrower contribution.
Typical financing practice. Higher-leverage programs reduce the down payment required; gap funding can sometimes cover a down-payment shortfall.
What it is. A release of funds tied to a completed milestone (see Construction Draw).
How it works. Draws are inspected and released as work is completed, rather than all at once.
Typical financing practice. Draw schedules protect both borrower and lender by tying funds to verified progress.
What it is. An inspection verifying that completed work matches the draw request before funds are released.
How it works. An inspector (or digital inspection) confirms the milestone is done, then the corresponding draw is released.
Typical financing practice. Digital draw inspections can be completed quickly, often within 24 hours on supported programs.
How it applies here. Green Fire Strategies offers 24-hour digital draw inspections on supported programs.
What it is. The plan that maps construction milestones to the funds released at each stage.
How it works. Each milestone (foundation, framing, etc.) corresponds to a percentage of the construction budget.
Typical financing practice. The schedule is reviewed during underwriting and may be adjusted to match the project.
EMD · Earnest Money
What it is. A deposit made to secure a purchase contract, showing the buyer's good faith.
How it works. EMD is paid into escrow when the contract is signed. It may be refundable during the inspection or contingency period and becomes non-refundable after that window closes.
Typical financing practice. EMD funding provides the earnest money during the refundable period so an investor can secure a contract without tying up their own cash.
How it applies here. EMD funding is available through Green Fire Strategies with Option A (5% upfront + 20% at close) or Option B (10% upfront, $0 at close), with minimums.
What it is. Transactional capital for the B-C down payment in a double close, repaid from the B-C spread when everyone cashes out.
How it works. Echo funds the end buyer's down payment; the B-C spread must cover the Echo funding, fee, and costs.
Typical financing practice. Use Echo when everyone cashes out (no seller carry remains); use Stack when the seller stays in.
How it applies here. Echo funding is available through Green Fire Strategies at 2.5% with a $2,500 minimum, with approved add-ons.
What it is. A borrower's agreement to receive disclosures and communications electronically rather than on paper.
How it works. By consenting, the borrower agrees that electronic documents satisfy legal delivery requirements.
Typical financing practice. Electronic consent is commonly required for digital financing workflows.
What it is. Renovation costs a program allows to be financed within the loan, as distinct from non-eligible or out-of-pocket costs.
How it works. Only eligible rehab is funded within the loan; the elected eligible rehab budget is allocated first.
Typical financing practice. Programs define what counts as eligible; non-eligible costs are the borrower's responsibility.
How it applies here. Green Fire Strategies' Fix & Flip programs can finance up to 100% of eligible rehab, allocated first within the loan.
What it is. Documents that establish and govern a borrowing entity, such as Articles of Organization and the Operating Agreement.
How it works. These documents show the entity exists and identify who is authorized to sign.
Typical financing practice. Lenders request entity documents to confirm the borrowing party and authorized signers.
What it is. Financing where the equipment itself secures the loan, and the amount is tied to the equipment's value.
How it works. The lender advances funds to acquire equipment; the equipment serves as collateral.
Typical financing practice. Equipment financing is a business-funding option for vehicles, machinery, or production assets.
How it applies here. Equipment financing is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. The owner's interest in a property — value minus what is owed against it.
How it works. Equity grows as the property value rises or the loan balance falls. It can be accessed through a cash-out refinance or a HELOC.
Typical financing practice. Existing equity is a source of capital for gap funding (HELOCs, second-position structures).
What it is. A neutral third party (or account) that holds funds and documents until transaction conditions are met.
How it works. Escrow holds the buyer's and lender's funds and releases them according to the settlement statement at closing.
Typical financing practice. Transactional funding runs through escrow so capital enters and exits with the transaction safely.
What it is. A loan already secured against a property before a new loan or transaction.
How it works. An existing mortgage must be paid off (satisfied) or subordinated for a new first-position loan to close.
Typical financing practice. For refinances, the existing mortgage's payoff demand determines how much new financing is needed.
What it is. The plan for repaying short-term financing — usually a sale or a refinance.
How it works. A bridge or fix-and-flip loan is repaid when the property is sold or refinanced into long-term debt.
Typical financing practice. Lenders review the exit strategy because short-term financing is not meant to be held indefinitely.
What it is. A lengthening of a short-term loan's maturity date, often for a fee.
How it works. If the exit (sale or refinance) is delayed, the borrower may request an extension to the term.
Typical financing practice. Extensions are not guaranteed and may carry fees; availability depends on the program.
40-Year
What it is. A DSCR structure combining a 10-year interest-only period with a 30-year amortizing period — 40 years total.
How it works. Years 1–10 are interest only; years 11–40 amortize over 30 years. Both payments and both DSCRs are shown.
Typical financing practice. The IO phase lowers the payment and improves DSCR early; the amortizing phase begins after year 10.
How it applies here. A 40-Year DSCR structure (10 years IO + 30 years amortizing) is available through Green Fire Strategies. Both payments and both DSCRs are shown separately in the calculator.
What it is. The highest-priority lien on a property — paid first in the event of default.
How it works. A first-position loan has priority over later liens (second position, etc.).
Typical financing practice. Primary real estate financing is typically first position. Second-position structures sit behind the first.
What it is. An investor with limited or no completed investment-property experience.
How it works. Newer investors may qualify with additional liquidity, stronger collateral, or experienced team members.
Typical financing practice. Some programs specifically support first-time investors; others prefer experienced borrowers.
How it applies here. First-time investor options are available on qualifying Green Fire Strategies transactions.
What it is. Short-term financing that combines acquisition and renovation for a property an investor intends to renovate and resell (or refinance).
How it works. The loan funds the purchase and eligible rehab; rehab is allocated first within the loan, with remaining proceeds toward acquisition. Draws release as milestones complete.
Typical financing practice. Sizing uses LTC and LTARV caps. Rehab is funded first to protect the renovation budget.
How it applies here. Green Fire Strategies offers Maximum Leverage Fix & Flip (up to 95% LTC, 100% eligible rehab, up to 75% LTARV) and Express Fix & Flip (up to 93% LTC, faster execution).
What it is. A loan that pays off completely through scheduled payments over its term, with no balloon at the end.
How it works. Each payment covers interest plus principal; the balance reaches zero by the end of the term.
Typical financing practice. A 30-year fixed DSCR loan is typically fully amortizing over 30 years.
What it is. How money moves through a transaction — from lender to escrow, and from escrow to the parties at settlement.
How it works. In transactional structures, capital is wired to escrow and repaid from escrow; no borrower funds move through personal accounts.
Typical financing practice. A single title/escrow company coordinates the funds flow for both legs.
GC · General Contractor
What it is. The contractor responsible for managing a construction project, including subcontractors, schedule, and quality.
How it works. The GC coordinates the build, pulls permits, and oversees trades. Lenders review the GC's capacity and track record.
Typical financing practice. Construction financing often requires an identified, qualified contractor.
What it is. The total monthly rental income a property is expected to generate before expenses.
How it works. Gross rent is the top-line income used in DSCR calculations before taxes, insurance, HOA, and vacancy.
Typical financing practice. Lenders may use actual rent (lease-supported) or market/projected rent depending on the program and occupancy.
What it is. Financing for new residential construction, funding land acquisition and vertical construction through a draw schedule.
How it works. The loan funds land and construction in stages; the completed value supports the structure. Borrower capital and LTC/completed-value constraints apply.
Typical financing practice. 100% eligible construction financing does not mean 100% of the total project — land and other constraints still apply.
How it applies here. Ground-Up Construction financing available through Green Fire Strategies can reach up to 95% LTC and 100% eligible construction financing.
What it is. The physical construction costs — materials and labor — in a construction budget.
How it works. Hard costs cover what is actually built: framing, finishes, systems, etc.
Typical financing practice. Hard costs are distinguished from soft costs (design, permits, fees) and contingency.
What it is. A credit check that may affect a credit score, typically associated with a formal application.
How it works. A hard pull appears on the credit report and can have a small short-term impact on the score.
Typical financing practice. Soft pulls (prequalification) generally do not affect the score; hard pulls are tied to actual applications.
HELOC · Home Equity Line of Credit
What it is. A revolving line of credit secured by equity in a property, with a draw period followed by a repayment period.
How it works. The borrower draws against available equity during the draw period, then repays. Qualification depends on equity, income, and debt-to-income.
Typical financing practice. Primary-residence HELOCs and investment-property HELOCs have different starting guidelines and CLTV limits.
How it applies here. HELOCs are an available gap-funding tool reviewed through Green Fire Strategies' prequalification.
HOA · PUD · HOA/PUD
What it is. A homeowners association (HOA) fee or planned unit development (PUD) fee — a recurring cost for shared community maintenance.
How it works. HOA/PUD fees are part of the housing payment and included in DSCR calculations (PITIA).
Typical financing practice. Condos, townhouses, and some planned communities carry HOA/PUD fees; a valid zero may apply where there is no association.
How it applies here. HOA/PUD is an input in the DSCR calculators and DSCR applications available through Green Fire Strategies. A zero value is valid where no HOA/PUD exists.
What it is. The time a short-term loan is expected to be outstanding before the exit (sale or refinance).
How it works. Short-term financing is sized around a holding period; longer holds increase carrying costs.
Typical financing practice. Borrowers should plan for the holding period and any extensions in their cost analysis.
What it is. An agreement to compensate or protect another party from certain losses or claims.
How it works. Under the Terms, users agree to defend, indemnify, and hold harmless Green Fire Strategies from claims arising from their information, conduct, or decisions.
Typical financing practice. Indemnification is a standard part of terms of use and does not waive rights or liabilities that cannot lawfully be waived.
What it is. A loan repaid in fixed scheduled payments over a set term (unlike revolving credit).
How it works. Each payment reduces the balance until the loan is paid off.
Typical financing practice. Term loans and equipment financing are installment loans; lines of credit are revolving.
What it is. Evidence of insurance coverage on a property, required by lenders before closing.
How it works. The binder confirms the property is insured for the required amount; construction may require builder's risk.
Typical financing practice. Lenders require an insurance binder (and builder's risk during construction) to close.
IO · Interest Only · Interest-Only
What it is. A payment structure where the borrower pays only interest for a period, with no principal reduction.
How it works. During the IO period the loan balance stays the same; payments begin reducing principal once the amortizing phase starts.
Typical financing practice. IO periods lower the payment during the interest-only phase, which can improve DSCR in that period.
How it applies here. DSCR structures available through Green Fire Strategies include 10-year IO periods followed by amortizing phases (for example, 10 years IO + 30 years amortizing = 40 years total; or 10 years IO + 20 years amortizing = 30 years total).
What it is. See Accounts Receivable.
What it is. The cost basis of the land in a construction project — what was paid for the land (or its current value, per program).
How it works. Land cost is part of total project cost and feeds LTC calculations.
Typical financing practice. Programs may use purchase price or current value for land, and may treat owned land differently from land being acquired.
What it is. A contract granting a tenant the right to occupy a property in exchange for rent.
How it works. A signed lease documents the rent amount and term, supporting actual (in-place) rent for DSCR.
Typical financing practice. Lease-supported rent is stronger documentation than projected rent for underwriting.
What it is. The amount of financing relative to the borrower's own cash — higher leverage means less cash required up front.
How it works. Leverage is expressed through ratios like LTC, LTV, and LTARV.
Typical financing practice. Higher leverage reduces borrower cash but may increase cost or require stronger qualifications.
What it is. A legal claim against a property to secure a debt.
How it works. A lien must be cleared (released) before clear title can transfer. Existing liens affect CLTV and refinances.
Typical financing practice. Title work identifies liens; a clear title is generally required to close.
What it is. A contractual cap on the damages a party can be held responsible for.
How it works. Under the Terms, Green Fire Strategies is not liable for indirect or consequential damages; limitations are subject to applicable law.
Typical financing practice. Limitations do not apply where liability cannot legally be excluded or limited.
What it is. Cash or easily accessible funds a borrower has available for closing costs, reserves, and carrying the property.
How it works. Liquidity is verified through bank statements. Borrowed funds (such as a recent unsecured loan) may not automatically count as liquidity.
Typical financing practice. Programs require varying liquidity; reserves may be required for some rental and construction loans.
What it is. Placing multiple unsecured loans in a planned sequence to access more capital than a single loan would provide.
How it works. Because one application can affect the next, stacking is sequenced intentionally — typically unsecured term loans before the credit card layer.
Typical financing practice. Borrowed funds from stacking do not automatically count as liquidity for a later loan.
How it applies here. Unsecured term-loan stacking is an available gap-funding option reviewed through Green Fire Strategies' prequalification.
LTARV
What it is. The loan amount divided by the after-repair value (ARV) — a cap that limits financing to a percentage of the finished property's worth.
How it works. LTARV = loan ÷ ARV. Even when LTC allows more, LTARV can reduce the loan if the ARV is low.
Typical financing practice. Fix-and-flip programs commonly apply both an LTC and an LTARV cap.
How it applies here. Green Fire Strategies' Fix & Flip programs can reach up to 75% LTARV (Maximum Leverage) and 75% ARV (Express).
LTC
What it is. The loan amount divided by the total project cost (purchase/acquisition plus rehab or construction).
How it works. LTC = loan ÷ total project cost. It limits financing to a percentage of what the project costs to complete.
Typical financing practice. Many programs limit the loan using a percentage of total eligible project cost and may simultaneously impose an ARV/LTV cap. Not all lenders calculate LTC identically.
How it applies here. Certain Fix & Flip financing available through Green Fire Strategies can reach up to 95% LTC, while Express options may use a lower LTC ceiling in exchange for faster execution. Construction can reach up to 95% LTC. Applicable ARV/completed-value constraints also apply.
LTV
What it is. The loan amount divided by the property's value.
How it works. LTV = loan ÷ value. It limits financing to a percentage of the property's worth.
Typical financing practice. LTV is used across many programs; bridge commonly reaches up to 80% LTV and DSCR up to 85% LTV.
How it applies here. Bridge financing available through Green Fire Strategies can reach up to 80% LTV; DSCR rental financing can reach up to 85% LTV.
LTR · Long-Term Rental
What it is. A rental property leased to a tenant for an extended period (typically a year or more).
How it works. LTR income is usually lease-supported. DSCR programs qualify on this rental cash flow.
Typical financing practice. LTR is one of several rental strategies; mid-term and short-term rentals may also qualify on some programs.
How it applies here. Long-term, mid-term, and short-term rental strategies may be supported on DSCR rental financing available through Green Fire Strategies.
What it is. The rent a property could reasonably command in the current market, whether or not it is currently leased.
How it works. Market rent is supported by comparables or a rent schedule, and may be used when a property is not yet leased.
Typical financing practice. Some programs accept projected market rent; others require lease-supported (in-place) rent.
What it is. The date a loan must be repaid or refinanced by.
How it works. Short-term loans have a maturity date; if not exited by then, an extension may be requested.
Typical financing practice. Maturity dates are part of short-term loan terms; missing them can trigger default.
MCA · Merchant Cash Advance
What it is. An advance repaid through a percentage of future revenue — not a traditional loan.
How it works. Repayment is tied to daily or weekly revenue, so it flexes with sales but is generally more expensive than other capital.
Typical financing practice. MCAs are faster but costlier; a business LOC or term loan may be preferable where the profile supports it.
How it applies here. MCA is an available gap/business-funding option reviewed through Green Fire Strategies' prequalification.
MTR · Mid-Term Rental
What it is. A rental leased for a medium duration (often roughly 30 days to several months), such as corporate housing or travel nurses.
How it works. MTR income may qualify on DSCR programs that accept rental strategies beyond traditional long-term leases.
Typical financing practice. Documentation and qualifying-rent rules differ by program.
What it is. A property combining residential and commercial uses (for example, a building with retail below and apartments above).
How it works. Mixed-use properties are evaluated based on their income and use mix.
Typical financing practice. Program eligibility for mixed-use depends on the property and program.
What it is. A business's revenue per month — a key qualifier for revenue-based financing and business lines.
How it works. Average monthly revenue is reported in ranges (for example, $10,000–$19,999).
Typical financing practice. Higher monthly revenue generally supports larger business-funding options.
How it applies here. Green Fire Strategies' business prequalification captures average monthly revenue in defined ranges.
What it is. A residential property with 2 to 4 units (duplex, triplex, fourplex).
How it works. These are treated as residential investment properties; the number of units may be required on applications.
Typical financing practice. Some programs require the unit count for 2–4 unit properties.
How it applies here. DSCR applications available through Green Fire Strategies show a Number of Units field for 2–4 unit and 5+ multifamily properties; it is hidden for single-family, condo, and townhouse.
What it is. A residential property with five or more units, often treated as a commercial property for financing.
How it works. 5+ unit properties are usually underwritten on the property's income, similar to commercial.
Typical financing practice. Program eligibility and the unit count requirement differ from 2–4 unit properties.
What it is. A condo project that does not meet standard agency condominium guidelines, which can limit financing options.
How it works. Factors like ownership concentration, HOA finances, or project type can make a condo non-warrantable.
Typical financing practice. Non-warrantable condos may still qualify on certain non-agency programs.
OTC · One-Time-Close
What it is. A construction-to-permanent structure with a single closing that combines construction and permanent financing.
How it works. One closing funds the build, then converts to permanent financing once complete — avoiding a second closing.
Typical financing practice. OTC is common in build-to-rent and construction-to-permanent programs.
How it applies here. Build-to-Rent financing available through Green Fire Strategies includes one-time-close (OTC) options.
What it is. The document governing how an LLC is run, including ownership and authority.
How it works. The Operating Agreement identifies members and who can bind the entity.
Typical financing practice. Lenders request the Operating Agreement to confirm authorized signers for the borrowing entity.
Points
What it is. A fee charged by a lender to originate a loan, expressed as a percentage of the loan amount (each 'point' = 1%).
How it works. Points are paid at closing (or deferred) and are part of the cost of financing.
Typical financing practice. Zero origination point options do not mean zero total transaction costs; other fees may apply.
How it applies here. Zero origination point options may be available on certain Green Fire Strategies programs; deferred origination points and other costs are disclosed in writing.
What it is. A statement from an existing lender showing the amount required to pay off a current loan.
How it works. For a refinance, the payoff demand tells the new lender how much is needed to satisfy the existing mortgage.
Typical financing practice. Payoff demands are time-sensitive and factor into refinance sizing.
What it is. Government approval to perform construction or change a property's use.
How it works. Permits are required for most construction; lenders review permit status during underwriting.
Typical financing practice. Construction financing generally requires permits to be in place or progressing.
What it is. An individual's promise to repay a business loan if the business does not.
How it works. Even when an entity borrows, a personal guarantee makes an individual responsible.
Typical financing practice. Personal guarantees are common in business financing and may affect the guarantor's credit.
PITI
What it is. Principal, Interest, Taxes, and Insurance — the components of a housing payment without HOA.
How it works. PITI is the basic housing payment used in some affordability calculations.
Typical financing practice. DSCR typically uses PITIA, which adds HOA/PUD.
PITIA
What it is. Principal, Interest, Taxes, Insurance, and Association dues — the full housing payment used in DSCR calculations.
How it works. PITIA = P&I + (taxes ÷ 12) + (insurance ÷ 12) + HOA. DSCR = gross rent ÷ PITIA.
Typical financing practice. PITIA is the denominator in the DSCR ratio for amortizing loans. For interest-only phases, the principal portion is zero.
How it applies here. DSCR calculators and applications available through Green Fire Strategies compute PITIA from the inputs you provide.
What it is. A loan covering multiple properties under a single structure (see Blanket Loan).
How it works. Portfolio loans let an investor finance several rentals together, often with release provisions.
Typical financing practice. Used by investors building or consolidating a rental portfolio.
How it applies here. Portfolio / blanket loan financing is an available DSCR rental option through Green Fire Strategies.
What it is. An early, non-binding indication of potential financing terms, subject to underwriting and verification.
How it works. Preliminary terms are a target or estimate, not a commitment. They can change based on the full review.
Typical financing practice. Preliminary terms are stronger than a prequalification but not a binding commitment.
How it applies here. Preliminary terms available through Green Fire Strategies (for example, a 24-hour preliminary terms target on bridge) are non-binding and subject to underwriting and final approval.
What it is. A fee for paying off a loan early, during a defined prepayment window.
How it works. If the borrower pays off within the prepayment period, a fee may apply; after the window, there is usually no penalty.
Typical financing practice. Some programs have no prepayment penalty; others use a prepayment structure for a set period.
How it applies here. No-prepayment-penalty options may be available on certain Green Fire Strategies programs.
What it is. A preliminary, non-binding indication of fit based on basic information — not an approval or commitment.
How it works. A prequalification reviews the deal at a high level before a full application and underwriting.
Typical financing practice. Prequalification is distinct from preliminary terms, approval, commitment, and funding. It does not guarantee financing.
How it applies here. Submitting an application or prequalification through Green Fire Strategies does not constitute approval, a commitment to lend, or a guarantee of any terms.
What it is. The amount of a loan, separate from interest; also the portion of a payment that reduces the balance.
How it works. In an amortizing payment, principal reduces the loan balance; in an interest-only payment, principal is zero.
Typical financing practice. During interest-only periods, the principal balance does not change.
What it is. The total cost of a project — purchase/acquisition plus rehab or construction (and related eligible costs).
How it works. Project cost is the denominator in LTC. It includes hard costs, soft costs, and contingency for construction.
Typical financing practice. Lenders review the full project cost, not just the purchase price, when sizing financing.
POF · Proof of Funds
What it is. Documentation showing a buyer has the funds available to complete a transaction.
How it works. POF is often required to submit an offer or demonstrate capacity. Verification of funds (VOF) confirms the money is real.
Typical financing practice. Transactional and gap-funding scenarios may use POF/VOF to support offers or closings.
How it applies here. Proof of Funds requests are available through Green Fire Strategies.
What it is. Documentation showing a borrower has the liquid funds required for closing costs, reserves, and carrying the property.
How it works. Proof of liquidity is commonly shown through recent bank statements.
Typical financing practice. Lenders verify liquidity to confirm the borrower can cover their contribution and reserves.
What it is. The category of real estate (single-family, condo, townhouse, multifamily, mixed-use, etc.) used in underwriting.
How it works. Property type drives eligibility, required fields (like number of units), and program fit.
Typical financing practice. Selecting the correct property type ensures the right questions appear on an application.
PUD
What it is. A planned community with shared common areas; often carries an association fee (see HOA/PUD).
How it works. PUD fees are part of the housing payment and included in PITIA when applicable.
Typical financing practice. Whether a property is a PUD affects the HOA/PUD input in DSCR calculations.
What it is. The contract between buyer and seller setting the terms of a property sale.
How it works. The executed contract is required to verify the deal terms, price, and deadlines (such as EMD refundability).
Typical financing practice. Transactional and acquisition financing requires an executed contract.
What it is. The agreed price a buyer pays to acquire a property.
How it works. Purchase price is a core input for fix-and-flip, bridge, and DSCR purchase sizing.
Typical financing practice. Financing is sized against purchase price, cost, and/or value depending on the program.
What it is. The rent figure a program uses for underwriting — which may be actual lease rent or market/projected rent, with adjustments.
How it works. Qualifying rent can differ from the gross rent a borrower expects, based on the program's methodology.
Typical financing practice. Actual qualifying DSCR may differ based on the methodology used for qualifying rent, taxes, insurance, HOA/PUD expenses, debt service, appraisal findings, and other underwriting adjustments.
How it applies here. Green Fire Strategies' DSCR calculators use the inputs you enter; actual qualifying DSCR during underwriting may differ based on the methodology used.
What it is. Refinancing an existing loan with a new loan of similar balance to change the rate or term, without taking cash out.
How it works. The new loan pays off the old one; the borrower keeps roughly the same balance but new terms.
Typical financing practice. Rate-and-term is one of the DSCR transaction types, distinct from cash-out refinance.
How it applies here. Rate-and-Term Refinance is an available DSCR rental transaction type through Green Fire Strategies.
What it is. The window during which an earnest money deposit can be refunded (often the inspection or contingency period).
How it works. EMD funding is placed during the refundable period; once it closes, the deposit becomes non-refundable.
Typical financing practice. EMD requests require the inspection end and close dates to confirm the refundable window.
What it is. The planned cost of renovations for a fix-and-flip project (see also Eligible Rehab and Renovation Budget).
How it works. The rehab budget is part of total project cost and is funded first within the loan through draws.
Typical financing practice. Lenders review the budget against the scope of work and ARV.
What it is. Funds reserved within the loan for renovation, released through draws as work is completed.
How it works. The holdback is not all paid up front; it is held and released after milestone inspections.
Typical financing practice. Holdbacks protect the renovation budget and tie funds to verified progress.
What it is. See Rehab Budget.
What it is. Long-term financing for an income-producing residential property, often qualified on rental cash flow (DSCR).
How it works. Qualification may be primarily based on the property's rental income rather than personal income.
Typical financing practice. Rental property loans support purchases, rate-and-term refinances, and cash-out refinances.
How it applies here. DSCR rental financing available through Green Fire Strategies supports purchase, rate-and-term, cash-out, and portfolio/blanket transaction types.
What it is. Funds a borrower is required to hold back (liquidity) to cover carrying costs or payments, beyond the cash needed to close.
How it works. Reserves are verified through bank statements and expressed as months of payments or a set amount.
Typical financing practice. Some rental and construction programs require reserves in addition to the borrower contribution.
What it is. Financing repaid through a percentage of future revenue (see also MCA).
How it works. Repayment flexes with sales, which can help cash flow but generally costs more.
Typical financing practice. Often used for short-term operating needs where traditional credit is unavailable.
What it is. Credit that can be drawn, repaid, and reused up to a limit (such as a line of credit or credit card).
How it works. Unlike an installment loan, revolving credit has no fixed payoff schedule; interest is paid on the drawn balance.
Typical financing practice. HELOCs and business lines of credit are revolving; term loans are not.
What it is. Two closings (A-B and B-C) completed the same day, one after the other (see Double Close).
How it works. Transactional funding covers the A-B purchase; the B-C closing repays it the same day.
Typical financing practice. A single title/escrow company coordinates both legs.
What it is. An SBA program for owner-occupied commercial real estate and major fixed assets.
How it works. 504 financing pairs an SBA-backed debenture with a lender loan to fund long-lived assets.
Typical financing practice. 504 is suited to owner-occupied CRE and major equipment, not short-term operating needs.
How it applies here. SBA 504 is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. The SBA's most common loan program, used for flexible general-purpose business needs up to a set maximum.
How it works. 7(a) loans are partially guaranteed by the SBA and made through approved lenders.
Typical financing practice. 7(a) is generally slower than conventional financing but can offer larger amounts and longer terms.
How it applies here. SBA 7(a) is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. A faster SBA path with a smaller maximum, for smaller balances.
How it works. Express offers a streamlined SBA process with faster turnaround than 7(a).
Typical financing practice. Express is used when speed matters and the amount fits within its cap.
How it applies here. SBA Express is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. A small SBA loan program for startups and very small businesses.
How it works. Microloans are smaller and may be available to businesses with minimal history.
Typical financing practice. Microloans suit very small needs and early-stage businesses.
How it applies here. SBA Microloan is an available business-funding option reviewed through Green Fire Strategies' prequalification.
What it is. A written description of the renovation or construction to be performed, including materials and tasks.
How it works. The scope of work is paired with the rehab/construction budget and reviewed by the lender and inspector.
Typical financing practice. A clear scope of work supports draw inspections and budget reasonableness.
What it is. A lien that sits behind a first-position loan, paid after the first in the event of default.
How it works. Second-position financing (such as a HELOC or cross-collateralized gap) is subordinate to the first lien.
Typical financing practice. Second-position structures let a borrower access additional capital behind existing debt.
What it is. Financing backed by collateral (such as equipment or real estate), as opposed to unsecured financing.
How it works. Collateral reduces lender risk; the borrower pledges an asset against the loan.
Typical financing practice. Secured financing may offer better terms than unsecured but risks the collateral.
SBLOC · Securities-Backed Line of Credit
What it is. Financing secured by eligible investment securities (and sometimes crypto), letting an investor borrow against holdings without selling.
How it works. The lender advances against the portfolio's value up to an LTV limit; if the collateral value falls, the borrower may face a margin call.
Typical financing practice. SBLOCs are not credit-based — they are collateral-based — but carry market risk if the securities decline.
How it applies here. Securities-backed financing is an available gap-funding option reviewed through Green Fire Strategies' prequalification.
Seller Carry · Seller Finance
What it is. An arrangement where the seller carries part of the financing instead of (or in addition to) an institutional loan.
How it works. The buyer pays the seller over time under a carry agreement, reducing the institutional financing needed. A cash gap can still remain.
Typical financing practice. Seller financing can be combined with a primary loan; if a cash-to-close shortfall remains, gap or transactional capital may help.
What it is. The completion of a closing — the transfer of funds and title (see Closing).
How it works. At settlement, escrow disburses money according to the settlement statement and records the transfer.
Typical financing practice. Transactional capital is repaid through settlement, not from personal liquidity.
STR · Short-Term Rental
What it is. A rental leased for short stays (such as nightly vacation rentals).
How it works. STR income can be higher but more variable. Some DSCR programs accept projected STR income.
Typical financing practice. Documentation and qualifying-rent rules differ from long-term rentals.
SFR · Single-Family
What it is. A detached house designed for one household — the most common investment property type.
How it works. SFRs do not require a number-of-units field on applications.
Typical financing practice. SFR is a standard property type across fix-and-flip, bridge, DSCR, and construction programs.
What it is. Non-construction costs in a budget — design, permits, fees, and professional services.
How it works. Soft costs are separate from hard costs (materials and labor) and contingency.
Typical financing practice. Lenders review the split between hard, soft, and contingency costs.
What it is. A credit check that generally does not affect a credit score, often used for prequalification.
How it works. A soft pull reviews credit without the impact of a hard inquiry.
Typical financing practice. Prequalifications commonly use a soft pull; a hard pull may follow a formal application.
What it is. Transactional capital layered with a primary loan and seller carry to fill the closing-table gap when the seller stays in the deal.
How it works. Stack combines primary financing + seller carry + transactional capital. The core economic test is whether the seller carry covers the transactional funding, fees, and transaction costs.
Typical financing practice. Use Stack when the seller stays in the deal (seller carry remains); use Echo when everyone cashes out.
How it applies here. Stack funding is available through Green Fire Strategies at 2.5% with a $2,500 minimum, with approved add-ons.
10-Year IO
What it is. An interest-only period of 10 years, after which the loan begins amortizing.
How it works. For the first 10 years the borrower pays interest only; principal payments begin when the amortizing phase starts.
Typical financing practice. 10-Year IO is the front half of both the 40-year (IO + 30 amortizing) and flexible 30-year (IO + 20 amortizing) structures.
30-Year Fixed
What it is. A loan with a fixed rate and fully amortizing payments over 30 years.
How it works. The rate does not change for 30 years; the loan pays off completely over the term.
Typical financing practice. A common DSCR structure for long-term rental holds.
How it applies here. A fully amortizing 30-Year Fixed DSCR structure is available through Green Fire Strategies.
What it is. A summary of proposed financing terms, non-binding unless executed as a commitment.
How it works. A term sheet lists amount, rate, term, leverage, and conditions for review before a full application.
Typical financing practice. A term sheet is preliminary and not a commitment to lend.
What it is. How long a business has been operating — a factor in business financing qualification.
How it works. Lenders ask for time in business (for example, 0–6 months, 6 months–2 years, or 2+ years).
Typical financing practice. Longer time in business generally supports stronger business financing options.
What it is. The legal ownership of a property; a 'clear title' means no unresolved liens or claims.
How it works. Title work confirms ownership and identifies liens. A clear title is generally required to close.
Typical financing practice. Title companies coordinate closings and hold escrow funds.
What it is. A preliminary report from a title company showing the condition of title and any requirements or exceptions.
How it works. The commitment lists liens and requirements that must be cleared before a policy is issued.
Typical financing practice. Lenders review the title commitment to confirm insurable title.
What it is. The company that handles title insurance, escrow, and settlement for a transaction.
How it works. The title company coordinates signing, records documents, and disburses funds per the settlement statement.
Typical financing practice. Transactional funding runs through the title company so capital enters and exits safely.
What it is. An attached residential property, often with its own land and sometimes an HOA.
How it works. Townhouses do not require a number-of-units field; HOA/PUD may apply.
Typical financing practice. Townhouse is a standard property type across programs.
What it is. An account that appears on a credit report (such as a credit card or loan).
How it works. Tradelines build credit history. Credit card stacking adds multiple tradelines in a planned sequence.
Typical financing practice. Application order matters in stacking because inquiries from one layer can affect the next.
What it is. Short-duration escrow-secured capital that enters and exits with a transaction (EMD, Double Close, Stack, Echo).
How it works. Capital is placed for a closing (or a refundable contract window) and repaid from the same settlement.
Typical financing practice. Transactional funding does not pull credit; underwriting is based on the transaction and title/escrow structure.
How it applies here. Transactional funding available through Green Fire Strategies includes EMD, Double Close, Stack, and Echo, each with published base fees, minimums, and add-ons.
What it is. A property in a state of change — being stabilized, repositioned, or held temporarily before an exit.
How it works. Bridge financing is designed for transitional properties that need short-term capital before long-term financing or sale.
Typical financing practice. Meaningful rehab on a transitional property generally routes to Fix & Flip rather than bridge.
What it is. The process of evaluating a borrower, property, and transaction to decide whether and on what terms to provide financing.
How it works. Underwriting verifies value, income, credit, collateral, documents, and the deal structure against program guidelines.
Typical financing practice. Underwriting outcomes are not guaranteed; preliminary terms can change after full review.
What it is. Financing not secured by a specific property or asset (such as an unsecured term loan).
How it works. Unsecured capital is approved based on credit and income rather than collateral.
Typical financing practice. Unsecured term-loan stacking and 0% credit card stacking are unsecured gap-funding tools.
How it applies here. Unsecured term-loan stacking and 0% credit card stacking are available gap-funding options through Green Fire Strategies.
What it is. A term loan not secured by a specific property or asset.
How it works. Unsecured term loans are approved based on credit and income. Stacking places several in sequence.
Typical financing practice. Unsecured term-loan stacking is a common gap-funding tool for down-payment or closing-cost shortfalls.
How it applies here. Unsecured term-loan stacking is an available gap-funding option through Green Fire Strategies.
What it is. A rental property (or unit) that is not currently leased, reducing actual income.
How it works. Vacancy affects actual rent; some programs apply a vacancy factor to projected rent.
Typical financing practice. Market rent may be used during vacancy, but qualifying-rent rules differ by program.
VOF
What it is. Confirmation that funds shown as available are real and accessible (see Proof of Funds).
How it works. VOF is often required to confirm a buyer's stated funds are legitimate.
Typical financing practice. Transactional scenarios may require VOF to support offers or closings.
What it is. Short-term capital for day-to-day business operations.
How it works. Working capital covers operating needs; same-day options exist but it is not cheap long-term debt.
Typical financing practice. Working capital is a business-funding option for short-term operating gaps.
How it applies here. Working capital is an available business-funding option reviewed through Green Fire Strategies' prequalification.
0% APR · 0% Credit Card Stacking · Credit Card Stacking
What it is. A promotional period during which a credit card charges no interest, used in 0% credit card stacking.
How it works. Multiple cards are applied for in a planned sequence; the 0% periods provide interest-free capital for a set window.
Typical financing practice. Application order matters because inquiries from the card layer can affect other approvals. The promotional period (often 12–21 months) is the usable window.
How it applies here. 0% credit card stacking is an available gap-funding option reviewed through Green Fire Strategies' prequalification.
What it is. A program option with no up-front origination points (see Origination Points).
How it works. Zero points does not mean zero total transaction costs; deferred points or other fees may still apply.
Typical financing practice. Always review the full cost — points, deferred points, interest, and third-party fees — not just the point count.
How it applies here. Zero origination point options may be available on certain Green Fire Strategies programs; other costs may still apply.
