# Hard money and fix-and-flip loan glossary > Illinois Lender, a private money lender for real estate investors, defines the terms investors meet in hard money lending: ARV, rehab budget, rehab draw, exit strategy, term sheet, underwriting, liquidity, title, and more. Each entry gives the general meaning first. Canonical: https://www.illinoislender.com/glossary/ · Last updated: 2026-10-31 ## Terms, A to Z ### After-repair value (ARV) The estimated market value of a property once the planned renovation is finished, usually supported by comparable sales. Investors use it to size a project, and lenders use it to judge the exit. The Illinois Lender deal form asks for it as an optional field. ### Attorney review period A short period after a purchase contract is signed, set by the contract, in which each side's attorney can review it and propose changes. It is a standard part of many Illinois residential purchase contracts. ### Bridge loan Short-term financing that covers the gap until a longer-term outcome, such as a sale or a refinance. Illinois Lender makes [bridge loans](https://www.illinoislender.com/bridge-loans/) for a purchase, a refinance, or a cash-out when renovation is not the main purpose. ### Business-purpose loan A loan made for a business or investment purpose rather than personal, family, or household use. Every Illinois Lender loan is business-purpose; [see who it is for](https://www.illinoislender.com/faq/#eligibility). ### Cash-out Also: cash-out refinance A loan on a property the investor already owns that is larger than the existing debt, freeing up equity as cash. Illinois Lender offers [cash-out](https://www.illinoislender.com/cash-out-refinance/) on investment property only, as one of its bridge loans. ### Comparable sales Also: comps Recent sales of similar properties nearby, used to estimate what a property is worth. Comps are the usual support for an after-repair value. They are on the list of [what to have ready](https://www.illinoislender.com/how-it-works/#have-ready). ### Exit strategy Also: exit How a short-term loan will be repaid: usually by selling the property or by refinancing it, for example into a rental loan. Illinois Lender reviews the exit [at the first look](https://www.illinoislender.com/how-it-works/#steps). ### Fix-and-flip loan Also: rehab loan, purchase-and-rehab loan A short-term investment property loan that combines purchase money and renovation money, repaid when the property is sold or refinanced after the work. Illinois Lender's [fix-and-flip loans](https://www.illinoislender.com/fix-and-flip-loans/) release the renovation money in [rehab draws](https://www.illinoislender.com/glossary/#rehab-draw). ### Hard money loan A short-term loan from a private, non-bank lender, secured by real estate and underwritten mainly on the property and the borrower's plan to repay it. Illinois Lender's fix-and-flip and bridge loans are what investors commonly call hard money. See [hard money vs. a bank loan](https://www.illinoislender.com/hard-money-vs-bank-loan/). ### Interest rate Also: rate The price of borrowing, charged on the loan balance and usually stated as a yearly percentage. Illinois Lender doesn't publish a rate. It's set for each deal and shown on the term sheet ([why no published rate](https://www.illinoislender.com/faq/#costs)). ### Liquidity Cash, and assets that can be turned into cash without a large loss in value. Lenders look at liquidity to see whether a borrower can cover costs beyond the loan itself. It is one of the borrower items in [underwriting](https://www.illinoislender.com/how-it-works/#underwriting). ### Loan-to-value (LTV) The loan amount compared with the property's value, used by lenders to measure leverage. Illinois Lender doesn't publish loan-to-value limits. Leverage is set for each deal. ### Non-owner-occupied property Also: investment property Real estate the borrower holds as an investment and does not live in. Illinois Lender lends only on non-owner-occupied investment property, never on a home the borrower lives in. [Read the eligibility answers](https://www.illinoislender.com/faq/#eligibility). ### Payoff statement Also: payoff letter A statement from a borrower's current lender showing the amount needed to pay an existing loan off in full on a given date, including interest and any fees. A refinance or cash-out needs one to show how much of the new loan goes to the old one. ### Points Also: origination points An upfront lender fee expressed as a percentage of the loan amount. Illinois Lender doesn't publish points. They're set for each deal and shown on the term sheet. ### Private money loan Also: private lending A loan funded by a private lender rather than a bank or credit union. "Private money" and "hard money" are often used interchangeably. ### Rehab budget Also: scope of work The itemized plan and cost for the renovation: what will be done and what it will cost. The [Illinois Lender deal form](https://www.illinoislender.com/send-a-deal/) asks for it on every deal (zero if there is no work). ### Rehab draw Also: draw, construction draw, rehab holdback A staged release of renovation funds. Instead of paying the whole rehab budget at closing, the lender holds it back and releases it in draws as work is completed. [How draws work at Illinois Lender](https://www.illinoislender.com/fix-and-flip-loans/#draws). ### Term sheet A written summary of proposed loan terms, such as amount, rate, points, fees, and term, issued before the borrower commits. It is a proposal, not final approval. [What is on an Illinois Lender term sheet](https://www.illinoislender.com/how-it-works/#term-sheet). ### Title Also: title work Legal ownership of a property. Title work is the search of public records for liens, unpaid taxes, or other claims against it, so that ownership can transfer or a loan can be secured on a clear footing. It is part of [underwriting](https://www.illinoislender.com/how-it-works/#underwriting). ### Under contract A property the buyer has a signed purchase agreement on but does not yet own. Whether to [send one to Illinois Lender](https://www.illinoislender.com/faq/#the-deal) is answered in the FAQ. ### Underwriting The lender's review of the property, title, borrower, and deal before a loan closes. Every Illinois Lender loan is subject to underwriting; [see what it looks at](https://www.illinoislender.com/how-it-works/#underwriting). ## Where these terms show up The [six-step process](https://www.illinoislender.com/how-it-works/) shows where the term sheet, underwriting, and draws fit. The loan pages use the terms in context: [fix-and-flip](https://www.illinoislender.com/fix-and-flip-loans/), [bridge](https://www.illinoislender.com/bridge-loans/), [cash-out](https://www.illinoislender.com/cash-out-refinance/), and [first-time flippers](https://www.illinoislender.com/first-time-flipper-loans/). For the lender comparison, see [hard money vs. a bank loan](https://www.illinoislender.com/hard-money-vs-bank-loan/). - [Hard money loan questions](https://www.illinoislender.com/faq/) - [Hard money loans in Chicago](https://www.illinoislender.com/chicago-hard-money-loans/) ## Have a deal? Send it. Questions go in the notes. We answer them with the deal. Send it through the form at https://www.illinoislender.com/send-a-deal/ (about two minutes; not a loan application). ## Disclosures Illinois Lender makes business-purpose loans secured by non-owner-occupied investment property. It does not make consumer loans or loans on a primary residence. Submitting a deal is not a loan application or a commitment to lend. All loans are subject to underwriting, property review, and approval. Terms, rates, and fees vary by deal and are provided in writing before closing. Illinois Lender does not publish rates, points, loan-to-value limits, or closing timelines. More: https://www.illinoislender.com/llms.txt · Send a deal: https://www.illinoislender.com/send-a-deal/