Universal Capital

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New England’s Premier Hard Money Lender

Short-Term Financing for Real Estate Investments

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An estimate of real estate value. Recent comparable sales in the neighborhood is the most important factor in determining value. This should be contrasted against the home inspection.


An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

Bridge Loan

A sum of money lent by a bank or other lending institutions to cover an interval between two transactions. Most often it includes the buying of one house and the selling of another. Also known as Bridge Financing, Bridge Lending, and Short-Term Bridge loans.

Cloud On Title

Any condition that affects the clear title to real property.


Something that is pledged as security for the repayment of a loan, and is then forfeited in the event of not fulfilling obligations.

Collateral Lending

Providing a loan where the collateral serves as protection for a lender against a borrower’s default. For example, any borrower failing to make any payments under the terms of a loan obligation. Also know as Collateral Financing.

Commercial Property

Commercial real estate is usually space that is leased out to individuals or businesses.

Commercial investment

An investment in a for-profit enterprise involved in the buying/selling of commercial real estate that is expected to generate cash flow.

Comparable Sales

Sales that have similar characteristics as the subject property and are used for analysis in the appraisal process.

Debt Financing

When an individual and/or institutional investors sell bonds, bills, or notes to a firm that raises money for working capital or capital expenditures.

Distressed Property

A property that is in poor financial or physical condition.


The right to use the land of another.


Anything that burdens (limits) the fee title to property, such as a lien, easement, or restriction of any kind.


The value of real estate over and above the liens against it. It is obtained by subtracting the total liens from the value.

Escrow Payment

That portion of a mortgagor’s monthly payment held in trust by the lender to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due.

Equity Financing

Refers to the sale of an ownership interest to earn funds for business means.


Provide funding for a person or enterprise. Also known as funds.


When the homeowner is unable to make full principal and interest payments on their mortgage. This then allows the lender to take possession of the property, evict the homeowner, and sell the home. As it is specified in the mortgage contract.

Fix and Flip

This is a type of real estate investment strategy, in which an investor purchases distressed properties that need renovations done, and then intend on reselling them for a profit.

Hard Money Lender

Hard Money Lenders are lending companies that offer a type of real-estate backed loan. They are usually short-term lenders that provide funding based on the value of the collateral or real estate involved. Other common phrases used are Private Lenders, Private Financing, Business Lending.


The process of investing money for profit. Another common term is Investor Loan.

Joint Venture

When two or more parties undertake jointly on a commercial enterprise.

Loan To Value Ratio (LTV)

The ratio of the mortgage loan principal (amount borrowed) to the property’s appraised value (selling price). Example – on a $100,000 home, with a mortgage loan principal of $80,000 the loan to value ratio is 80%.

Mezzanine Financing

Debt capital that gives the lender the right to take ownership or equity interest in the company if the loan obligation is not paid back in full and on time. It is generally subordinated to banks and venture capital companies because they are senior lenders.

Non-owner Occupied

The owner does not now nor do they intend to occupy the property.

Origination Fee/Points

A fee paid to the lender for originating the loan and is based on a percentage of the loan amount

Promissory Note

A written contract containing a promise to pay a definite amount of money at a definite future time.

Rehab Loans

Loan used to renovate a distressed property. Other common phrases used are Construction Loan, and Construction Financing.


The action of renovating a building. Similar terms include Complete Renovation, New Construction, Rehab, and Land Development

Residential Property

Real estate that is designed for people to live in.

Residential Investment

Investment in residential structures such as single-family and multi-family units, expenditures on manufactured homes, and improvements to housing units.

Speculative (“Spec”) Building

Building homes that are built in anticipation of finding a buyer or not having a buyer lined up to purchase they home.

Structured Finance

A service that usually involves highly complex financial transactions that are offered by many large financial institutions. Mostly used for companies that have unique financing needs. Other common phrases include Financial Solutions, Standard Loan, and Finance Arrangements.


an area of land divided into multiple plots.

Title Insurance

An insurance policy which protects the insured (purchaser or lender) against loss arising from defects in the title.

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