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Private Money Glossary

Here are some common terms associated with hard money financing and real estate. If you require further information, please do not hesitate to contact JB Private Investments at 650-315-9933 for a personalized consultation on your financing needs. 

Accounts receivable

Accounts receivable refers to the money that a business is owed by its customers for products or services sold on credit.



Assets refer to anything of value that is owned by an individual or business, including property, investments, and cash.

Bridge loan

A bridge loan is a short-term loan used to bridge the gap between the purchase of a new property and the sale of an existing property.



A borrower is an individual or entity that receives funds from a lender with the agreement to repay the borrowed amount plus interest within a specified period.



A broker is an intermediary between buyers and sellers who facilitates transactions between them and receives a commission for their services.


Business purpose loan

A business purpose loan is a type of loan intended for commercial or investment purposes rather than personal use.



Capital refers to financial resources, such as money or assets, that a business or individual can use to generate income or make investments.


Commercial loan

A commercial loan is a type of financing that is extended to businesses to fund their various operational or investment needs, such as purchasing equipment, expanding facilities, or acquiring commercial real estate.


Construction loan

A construction loan is a short-term loan used to finance the construction of a new property or the renovation of an existing one.

Credit score

A credit score is a numerical representation of a person's creditworthiness and likelihood of paying back debt on time.


Debt-to-income ratio

Debt-to-income ratio refers to the percentage of a borrower's monthly income that goes towards paying debts such as credit card bills, student loans, and mortgages.

Interest rate

An interest rate is the percentage of the loan amount charged by a lender to a borrower for the use of the money lent.


Investment property

An investment property is a real estate property purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property, or both.


Land loan

A land loan is a type of financing used to purchase raw land, undeveloped property or land intended for future development.



A loan is a financial agreement in which one party (lender) agrees to give money or property to another party (borrower) who promises to repay the loan with interest over a specified period.

Loan process

The loan process refers to the steps and procedures that borrowers go through to obtain a loan from a lender.


Mixed-use loan

A mixed-use loan is a type of loan that is used to finance properties that have both residential and commercial elements, such as apartment buildings with ground-floor retail spaces.



A mortgage is a loan that is secured by a property, typically used for the purchase of real estate.


Personal loan

A personal loan is typically used for a variety of purposes, such as debt consolidation, home improvements, or unexpected expenses.


Private Equity

Private equity refers to investments made in privately-held companies, such as venture capital, buyouts, and growth capital.


Private lending company

A private lending company is a business that provides loans to individuals or organizations using private funds, rather than funds from traditional financial institutions such as banks.

Property developer

A property developer is an individual or a company that buys land, finances real estate deals, and manages the development process to create new buildings or improve existing ones for commercial or residential use.


Purchase money loan

A purchase money loan is a loan that is issued to a homebuyer by the seller, often used when a buyer has difficulty getting a traditional mortgage.


Raw land

Raw land refers to undeveloped or unimproved land that does not have any structures or buildings on it.


Real estate investment

Real estate investment refers to the acquisition, ownership, management, rental, or sale of real estate for profit or income generation.


Real estate investor

A real estate investor is someone who invests in real estate properties with the intention of making a profit, either through renting, selling, or other forms of investment strategies.


Refinances loan

A refinances loan is a new loan that is taken out to pay off an existing loan, often with better terms such as a lower interest rate.



Refinancing is the process of obtaining a new loan with better terms to pay off an existing loan.


Residential loan

A residential loan is a type of loan used to purchase or refinance a home for personal use.

Short-term loan

A short-term loan is a loan that must be repaid within a relatively short period, usually less than a year.

Traditional mortgage lending

Traditional mortgage lending refers to the process of obtaining a mortgage loan from a bank or other financial institution.

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