Irongate Private Capital
Fix & FlipSFR fix & flip — 1,880 sq ft, built 1974
- Rate
- 10.99%
Interest Rate 10.990% per annum
- Term
- 12 months
Initial Term 12 months
- Leverage
- 90.00%
Loan to Cost 90.00% of total project cost
- Fees
- 2.00%
Origination Points 2.000% of total loan amount ($5,769)
This sheet answers 25 of the 55 terms this tool looks for.
30 terms are not addressed at all — a term the sheet leaves out is not an absent cost, it is a cost nobody has quoted you yet, which is what the 30 questions below are for.
The verdict
Graded against the rules the industry actually uses, then stress-tested on the way out. New to this? Start here.
76 out of 100
This is a competitive sheet. The asks below are about trimming, not fixing.
How it scores
- Leverage against finished valueThe 70% Rule
Flippers have used one rule of thumb for decades: do not put more than 70 cents of debt against every dollar the finished house will be worth. The gap is what protects you if the sale comes in soft or takes longer than planned.
AStrong
- This deal:
- 69.5%
- Industry norm:
- 70% or below is the classic rule; 75% is the practical ceiling
- Equity cushion at completionCushion = value − debt
How much of the finished value is yours rather than the bank's. Selling costs alone run about 8%, so a cushion thinner than that means a sale at the appraised value still loses you money.
AStrong
- This deal:
- 30.5%
- Industry norm:
- 30%+ comfortable, 25% workable, under 20% thin
- Interest rate
What the money costs per year. Worth remembering that on a short-term loan the fees often matter more than the rate, because you only pay the rate for a few months but you pay the points in full on day one.
COkay
- This deal:
- 11.0%
- Industry norm:
- 9–13% for this loan type
- Read from:
- interest rate
- All-in cost of capitalRate + fees over the actual hold
The rate is not the price. Add the points and spread everything over how long you actually hold the loan, and a "9%" loan with 1.5 points over 12 months really costs you more than 9%.
COkay
- This deal:
- 13.1%
- Industry norm:
- 11–15% all-in
- Personal liability
You are personally on the hook for the whole loan. If the property sells for less than you owe, the lender can come after your other assets.
FWeak
- This deal:
- Full personal recourse
- Industry norm:
- Non-recourse with standard carve-outs is the better outcome
- Freedom to repay early
There is a cost to paying this off early. Check both the prepayment penalty and the minimum interest — the second one does the same job under a different name.
DOkay
- This deal:
- None · 3mo minimum interest
- Industry norm:
- Bridge loans should be open or near-open; watch minimum interest
Have you thought about…
If you keep it: refinance into a DSCR loan at 8.07%
Plenty of people start out planning to sell and end up renting instead. This is what that looks like. A long-term rental lender will lend against the finished value, and the rent has to cover the new payment with room to spare.
The refinance clears the loan and needs $3,522/month in rent to qualify.
| Finished value assumedfrom the ARV on this sheet | $415,000 |
| Take-out loan at 75% LTV | $311,250 |
| Current loan to be repaid | $288,450 |
| Cash back to youthe refinance clears the bridge loan | $22,800 |
| Monthly P&I at 8.07%, 30 years | $2,299 |
| Plus taxes and insurance (est.) | $519 |
| Monthly PITIA | $2,818 |
| Rent needed for 1.25× coveragethis is the number to check against real comparable rents before you commit | $3,522 / month |
What if rates move before you refinance?
Your exit depends on a rate that does not exist yet. You are borrowing today and refinancing months from now, so this is the risk nobody prices at closing. Each point of rate changes the rent you need.
Two points of rate movement changes the rent you need by about $561 a month.
| Take-out at 7.1%payment $2,604 | $3,255 / month rent needed |
| Take-out at 8.1%payment $2,818 | $3,522 / month rent needed |
| Take-out at 9.1%payment $3,039 | $3,799 / month rent needed |
| Take-out at 10.1%payment $3,266 | $4,083 / month rent needed |
If you sell: what is actually left
The finished value is not your profit. Take off the agent and closing costs, pay back the loan, and subtract everything the money cost you while you held it. What is left is the deal.
About $23,830 of profit if it sells at the ARV, before overruns and before any extension.
| Sale at the ARV on this sheet | $415,000 |
| Less selling costs at 8% | − $33,200 |
| Less loan payoff | − $288,450 |
| Less interest over 12 months | − $31,701 |
| Less points | − $5,769 |
| Your cash in the dealreturned to you at sale | $32,050 |
| Estimated profit≈ 74% on the cash you put in | $23,830 |
How to push back
Specific asks, with why they land. Ask for several; concede the ones set by their credit box.
- Ask for 1.50% origination instead of 2.00%.Usually works
Points are the most negotiable line on any term sheet, and the ask costs you nothing. It lands far more often when you can say another lender has quoted you lower.
- Ask what the extension actually requires, not just what it costs — and get it in writing.Usually works
An extension conditioned on the work being substantially complete can be unavailable exactly when you need it. The conditions are more negotiable than the fee.
- Ask whether the guaranty can be reduced once the certificate of occupancy is issued.Worth a try
Burn-down guaranties are common on construction debt. Full recourse for the whole term is a starting position, not a rule.
- Ask for the good faith deposit to be refundable if the lender declines after underwriting.Worth a try
The deposit protects them if you walk and normally does nothing for you if they do. Making it symmetrical is a reasonable ask and rarely refused outright.
Analysis
Derived from the extracted terms — not from the label on the document.
What this loan is, read from its terms
✓ The terms are consistent with a fix & flip loan.
How we worked that out
- — Term of 12 months makes this a short-term loan.
- — Interest-only with the principal due at maturity — no equity is built.
- — Renovation or construction mechanics present (4 of 5 indicators, including rehab_holdback, after_repair_value, ltarv).
Numbers this sheet does not give you
- Actually advanced at closing
- $209,950
- Points payable at closing
- $5,769
- Interest per year at this rate
- $31,701
- Due as a lump sum at maturity
- $288,450
$288,450 commitment, less $78,500 construction holdback. The holdback is reimbursed against completed work and the interest reserve pays your own interest — neither is money you receive at closing.
2.00% of $288,450.
10.99% of $288,450. On a monthly basis, $2,642.
Interest-only means the principal never reduces. The full balance is due on the maturity date, from a sale or a refinance.
What stands out
- Critical
Interest accrues on the full commitment, not just what you have drawn
The sheet states "Full committed balance (dutch)". You pay interest on the undrawn construction holdback from day one. On this deal that is roughly $4,314 of interest on money you have not received yet, assuming the holdback draws evenly. Ask what the rate would be on a drawn-balance basis — lenders typically price the difference at half a point to a full point.
- Worth asking
3 months of interest are guaranteed regardless of when you repay
That is 25% of the 12-month term locked in. It is economically a prepayment penalty, but it is not called one — so asking "is there a prepayment penalty?" will not surface it. If you expect to exit early, price this as the cost it is.
- Worth asking
This is full personal recourse, not carve-out recourse
The sheet says "Full personal guaranty". You are personally liable for the whole balance, not just for bad acts. On a construction loan, check whether a completion guaranty sits on top of it — that obligates you to fund cost overruns from your own pocket without limit.
- Worth asking
You carry the third-party costs even if the loan never closes
The sheet obliges you to pay appraisal, inspection, legal, and title costs whether or not the loan is consummated. Ask the one question that matters here: if you decline the deal after underwriting, do I still pay?
- Worth asking
12 months to build, sell or refinance
Extension terms are stated (Two 3-month extensions at 1.00% each). Read the conditions, not just the fee — an extension that requires the work substantially complete may be unavailable exactly when you need it. Compare this against your realistic timeline, not your optimistic one.
Questions to ask your lender
Generated from what this sheet left out, left vague, or priced outside the normal range for a fix & flip.
30 questions, most important first.
- As-Is ValueNot addressed
What as-is value are you sizing the initial advance against, and is it the purchase price or an appraisal? If the appraisal comes in below it, does my advance shrink?
This term sheet does not address this at all.
- Completion GuarantyNot addressed
Is a completion guaranty required in addition to the payment guaranty? Is my obligation capped, and does it survive if I hand you the keys?
This term sheet does not address this at all.
- Loan In Balance RequirementNot addressed
Who determines whether the loan is in balance, on what basis, and how long do I have to cure? Can I cure with a letter of credit instead of cash?
This term sheet does not address this at all.
- Cross-Collateralization and Cross-DefaultNot addressed
Are the properties cross-collateralized, cross-defaulted, or both? What does it take to release one property, and what is the release price?
This term sheet does not address this at all.
- Interest ReserveNot addressed
Does the interest reserve come out of the loan proceeds or is it additional? How many months does it cover, and what happens when it runs out?
This term sheet does not address this at all.
- Completion DeadlineNot addressed
Is there a completion deadline separate from maturity? What happens if I miss it while still current on payments, and can it be extended?
This term sheet does not address this at all.
- Exit Strategy RequirementNot addressed
What evidence of exit do you need at closing? If my exit is a DSCR refinance, will you pre-qualify it, and do you offer that loan yourself?
This term sheet does not address this at all.
- Loan PurposeNot addressed
What purpose is this priced as? If I switched to a cash-out refinance, what happens to the rate and the maximum LTV — and is there a seasoning period before I can?
This term sheet does not address this at all.
Standardized terms
Economics
Loan Amount
The principal the lender is offering to advance.
$288,450
Total Loan Amount $288,450
Loan Purpose
The transaction type this loan is priced as — acquisition/purchase, rate-and-term refinance that replaces existing debt, or cash-out refinance that returns equity to the borrower. This is how the borrower comes to own or re-finance the asset, not what will be built or renovated on it: a scope of work, a construction description or a property description is not a loan purpose.
Not addressed
Two sheets are not comparable until you know this. Purpose sets the LTV ceiling and the price before any other factor — a cash-out refinance is typically capped several points below a purchase and carries a rate add-on, so a cash-out quote that looks worse than a purchase quote may in fact be the better offer. A sheet that never states it is quoting against an assumption you have not seen.
Typical: Purchase, refinance, or refinance with rehab funds
Loan-to-Value (LTV)
The loan amount as a percentage of the property value — usually the lesser of purchase price and appraised value.
Not addressed
Sets how much cash you bring. It is rarely a single number: it varies by loan purpose (purchase, rate-and-term, cash-out), by term length, and by whether the loan is interest-only.
Loan-to-Cost (LTC)
The loan as a percentage of total project cost — purchase price plus renovation budget plus, sometimes, closing costs.
90.00%
Loan to Cost 90.00% of total project cost
Loan-to-After-Repair-Value (LTARV)
Total loan as a percentage of the appraised value the property will have once the work is finished.
69.51%
Loan to ARV 69.51% (maximum 70% for this tier)
As-Is Value
What the property is worth today, before any renovation — the appraised or broker-opined value in its current condition.
Not addressed
This is the number the day-one advance is actually sized against, and it is the only way to check the rest of the sheet against itself: purchase price, as-is value, rehab budget and ARV have to reconcile, and LTC and LTV are computed off different ones of them. Without it you cannot tell whether an advance is constrained by cost or by value, which is exactly what decides how much cash you bring to closing.
Typical: Lender-ordered as-is appraisal, or the purchase price on an arms-length buy
After Repair Value (ARV)
The appraised value the property is expected to reach once the renovation described in the scope of work is complete.
$415,000
After Repair Value $415,000
Interest Rate
The annual rate charged on the outstanding balance.
10.99%
Interest Rate 10.990% per annum
Rate Structure (Fixed / Floating, Index, Spread, Floor)
Whether the rate is fixed for the term or floats over an index such as SOFR, plus the spread added to that index and any floor below which the rate cannot fall.
Not addressed
A floating rate with a floor is a one-way bet against you: you get none of the benefit if rates fall below the floor, and all of the exposure if they rise.
Typical: Fixed per advance is common; floating over Term SOFR with a floor also appears
Rate Cap Requirement
On a floating-rate loan, a requirement that the borrower buy an interest rate cap — a derivative that pays out if the index rises above a strike.
Not addressed
Caps cost real money up front and the price swings with volatility. A term sheet that requires one without saying so leaves a five- or six-figure cost out of your budget.
Typical: Sometimes required on floating-rate bridge
Origination Fee / Points
The lender's fee for making the loan, stated as a percentage of the loan amount.
2.00%
2.000% ($5,769)
Origination Points 2.000% of total loan amount ($5,769)
Exit Fee
A fee charged at payoff, usually a percentage of the original or outstanding balance.
Not addressed
Easy to overlook because it is not due until the end. Frequently waived if you take the same lender's permanent financing — which is a lock-in dressed up as a courtesy, and worth pricing as one.
Term
How long until the loan matures and the full balance is due.
12 months
Initial Term 12 months
Amortization
The schedule over which principal is repaid. Longer amortization means lower payments and a larger balance left at maturity.
Interest only, no amortization
Interest only, monthly. There is no amortization.
There is no amortization.
Typical: None — interest only, principal due at maturity
Interest-Only Period
A period during which only interest is due and the principal balance does not reduce.
Not addressed
Improves cash flow early on, but you build no equity during it, and lenders normally still qualify you on the fully amortizing payment — so it helps your wallet, not your approval.
Typical: Full term — bridge loans are interest-only throughout
Interest Accrual Basis (Full Balance vs. Drawn)
Whether interest is charged on the entire committed loan amount from day one ("full boat" or "dutch") or only on funds actually drawn ("non-dutch").
Full committed balance (dutch)
Interest is charged on the FULL COMMITTED LOAN AMOUNT from the date of closing, whether or not the rehab holdback has been drawn. A drawn-balance option is available at 11.740%.
Interest is charged on the FULL COMMITTED LOAN AMOUNT of $288,450 from the date of closing
Typical: Both are common; the difference is worth roughly 0.5–1.0% in rate
Day Count / Accrual Convention
The convention used to compute interest — 30/360, Actual/360, or Actual/365.
Actual/360
Day Count Actual/360
Typical: Actual/360 near-universal
Extension Options
The right to extend maturity, the fee for doing so, and the conditions you must meet to qualify.
Two 3-month extensions at 1.00% each
Two extensions of 3 months each at 1.00% of the then-outstanding balance, subject to rehab 90% complete and property listed.
Extensions Two extensions of 3 months each... an extension fee of 1.00%
Credit Tests
Minimum DSCR
The minimum ratio of property income to debt service the lender requires. A 1.25x requirement means income must be 25% above the payment.
Not addressed
This is the test that decides whether the loan is approved at the size you want. A lower minimum means you can borrow more against the same property.
Typical: Usually tested at the take-out, not at origination
Minimum Credit Score
The minimum qualifying credit score, usually the mid-score of the primary guarantor.
680 minimum (714 actual)
FICO Minimum 680. Borrower mid-score 714.
Borrower Experience Requirement
The number of comparable projects completed, used both to qualify the borrower and to set the pricing tier.
Tier 2 — 3 to 9 completed flips
Experience Tier Tier 2 — 3 to 9 completed flips in the trailing 36 months.
Typical: Tiered by completed exits in the trailing 36 months
Eligible Property Types
The stated rule about which property types this program will lend on, and which it excludes or prices differently — unit count, condominium, rural, mixed-use, manufactured, short-term rental. This is the eligibility policy the sheet sets out, not a description of the subject property: "two detached single-family residences" is what this deal happens to be, whereas "1–4 unit non-owner-occupied; no rural, no manufactured" is the rule. If the sheet only describes the subject property and states no policy, this term is absent.
Not addressed
This is the most common reason a quote evaporates between term sheet and underwriting. Eligibility is decided by the program, not the deal, so a sheet issued before anyone looked at the subject property can be withdrawn in full once they do. A rate you cannot actually use on your property is not a rate.
Typical: Non-owner-occupied residential and small multifamily; ground-up often a separate program
Citizenship / Residency Requirement
Whether the borrower must be a US citizen or permanent resident, and the terms offered to a foreign national or a borrower on a visa.
Not addressed
A standard overlay that is rarely printed on the first page. Foreign-national programs exist at most investor lenders but carry their own pricing, a lower LTV ceiling, and documentation the borrower cannot produce quickly — passport, visa, US credit alternative, and often reserves held in a US account. Discovering it at underwriting costs the rate lock.
Typical: Foreign national accepted by some lenders at reduced leverage
Ongoing Financial Covenants
Tests you must keep meeting after closing — net worth, liquidity, DSCR, and reporting obligations.
Not addressed
These are how a performing loan becomes a defaulted one without you ever missing a payment. A liquidity covenant tested annually can be breached by a bad quarter.
Typical: Net worth and liquidity minimums, common on facilities
Structure & Risk
Recourse
Whether the lender can pursue your personal assets beyond the property. Non-recourse limits them to the collateral; full recourse does not.
Full personal guaranty
Full personal guaranty from all members holding 20%+
Guarantor Full personal guaranty from all members holding 20%+
Typical: Usually full personal guaranty of payment
Non-Recourse Carve-Outs (Bad Boy)
The acts that convert a non-recourse loan into a recourse one — typically fraud, misapplication of funds, waste, unpermitted transfers, and voluntary bankruptcy.
Not addressed
Term sheets almost never list them. Some carve-out sets are so broad that ordinary operating missteps trigger full personal liability, and you will not discover that until the loan documents arrive.
Typical: Often subsumed into a full payment guaranty
Completion Guaranty
A personal obligation to finish the construction in accordance with the approved plans and budget, funding any overrun yourself.
Not addressed
Separate from and additional to a payment guaranty. It means cost overruns come out of your pocket without limit, whatever happens to the loan.
Typical: Standard on ground-up construction
Loan In Balance Requirement
A requirement that undisbursed loan proceeds plus your committed equity always be enough to finish the project. If the lender decides they are not, you deposit the shortfall in cash.
Not addressed
The provision most likely to demand unexpected cash on short notice, and the lender usually has sole discretion to make the call.
Typical: Standard on construction; cure periods of 5–15 days
Entity / Vesting Requirement
The legal entity that must hold title — commonly an LLC, sometimes a bankruptcy-remote single purpose entity with an independent manager.
Not addressed
Business-purpose loans do not close in an individual name. SPE requirements add legal cost and, where a non-consolidation opinion is required, several thousand dollars and a week of time.
Typical: LLC, often single-asset
Cross-Collateralization and Cross-Default
Whether multiple properties secure the same debt (cross-collateralized) and whether a default on one triggers default on all (cross-defaulted). These are separate things.
Not addressed
Cross-default without cross-collateralization is standard on credit facilities and means one bad deal can accelerate every loan you have with that lender.
Typical: Facilities commonly cross-default without cross-collateralizing
Default Interest Rate
The rate that applies to the entire balance once the loan is in default, including at maturity.
24.00%
Default Rate The lesser of 24.00% per annum or the maximum permitted by law
Environmental Indemnity
A separate personal indemnity for environmental liabilities, which typically survives repayment of the loan and is carved out of non-recourse protection.
Not addressed
It outlives the loan. Even on a non-recourse deal, environmental exposure usually remains personal, and it does not go away when you pay the loan off.
Typical: Standard
Prepayment
Prepayment Structure
What it costs to pay the loan off early — a step-down penalty, yield maintenance, defeasance, a lockout period, or nothing at all.
None
None. Loan may be repaid at any time without premium.
Prepayment Penalty None.
Typical: Usually none — but check minimum interest, which does the same job
Minimum Interest / Guaranteed Interest
A minimum number of months of interest you owe even if you repay sooner.
3 months
THREE (3) MONTHS. If the loan is repaid before the third monthly payment, borrower owes interest through month three regardless.
Minimum Interest THREE (3) MONTHS.
Reserves & Escrows
Tax and Insurance Escrow
Monthly collection of one-twelfth of annual property taxes and insurance, held by the lender.
Not addressed
Raises your monthly payment and, because it is included in PITIA, directly lowers your qualifying DSCR. A waiver, where available, both frees cash and improves coverage.
Typical: Sometimes waived on short-term loans
Interest Reserve
Loan proceeds set aside to pay your interest during the period the property produces no income.
Not addressed
It is funded out of your loan, not in addition to it — so it reduces the money available for the actual project, and you pay interest on it. It is not free carry.
Typical: Common on construction; sized to the projected build period
Liquidity / Reserve Requirement
Cash you must document and hold, usually expressed as a number of months of payments, often with a seasoning period.
Not addressed
Money you cannot deploy into the next deal. On STR programs it can be twice the long-term rental requirement, which materially changes how many deals you can run.
Typical: Sized to the first phase of work plus several months of interest
Draws & Construction
Rehab Holdback
The portion of the loan allocated to renovation, retained by the lender and released in draws as work is completed.
$78,500 (100% of budget)
Rehab Holdback $78,500
Draw Schedule and Process
How many draws are permitted, what triggers each, and how long funding takes after a request.
Up to 5 draws, reimbursement only
Up to 5 draws. Reimbursement of completed work only. Funding within 3 business days of a satisfactory inspection.
Draw Basis Reimbursement of completed work only.
Typical: 3–8 draws typical; funding within 2–5 business days of inspection
Draw and Inspection Fees
Per-draw administrative fees and third-party inspection costs, charged to the borrower.
$250 per draw + $175 inspection
Draw Fee $250 per draw (first draw fee waived)
Retainage
A percentage withheld from each draw until the project is complete and lien waivers are delivered.
10%
10% of each draw is retained and released with the final draw
Contractor Requirements
Licensing, insurance, references, and contract-form requirements the general contractor must satisfy before closing.
Licensed, insured, lender-approved
Contractor packet: license, general liability insurance naming lender as additional insured
Typical: Licensed, insured, lender-approved; GMP contract on ground-up
Contingency Requirement
A required cushion in the budget for cost overruns, typically a percentage of hard costs.
Not addressed
Consumes loan proceeds you might otherwise use, but a lender-required contingency is usually smaller than the overrun you will actually have.
Completion Deadline
A deadline for finishing construction — often earlier than loan maturity, and an independent event of default if missed.
Not addressed
You can be in default on a current, performing loan simply because the certificate of occupancy is late. Borrowers watch the maturity date and miss this one.
Typical: Commonly 2–4 months before maturity
Costs & Process
Good Faith Deposit
Money paid on acceptance of the term sheet, applied against third-party costs.
$1,500, non-refundable once appraisal ordered
Good Faith Deposit $1,500 due upon acceptance
Third-Party Report Costs
Appraisal, environmental, engineering, feasibility, and property condition reports, ordered by the lender and paid by you.
Not addressed
Non-refundable and paid before you know whether the loan closes. On a portfolio deal requiring an appraisal per property, this runs into five figures.
Lender Legal Fees
The cost of the lender's counsel documenting the loan, paid by the borrower.
Not addressed
Frequently uncapped on commercial and portfolio deals — you pay actual, whatever it turns out to be, and you have no control over how much time their lawyer spends.
Rate Lock
Whether and when the rate can be fixed, for how long, and what an extension costs.
Not addressed
An unlocked rate can move between term sheet and closing, and the term sheet number is often the best case. On agency deals the lock mechanics are a product feature in their own right.
Typical: Rate typically set at closing
Term Sheet Expiration
The date after which the offer lapses.
14 days
Expiration: 14 days
Exclusivity Clause
A commitment not to negotiate with other lenders for a stated period after accepting the term sheet.
Not addressed
Removes your leverage exactly when you need it. If the lender re-trades during underwriting, you have no alternative ready.
Typical: Sometimes present; frequently negotiable
Conditions to Closing
Everything that must be delivered or true before the lender will fund.
Not addressed
Where timelines die. A condition like "written evidence that short-term rental use is permitted" or "full permit set issued" can take weeks you have not budgeted.
Typical: Enumerated at varying length; the specific ones matter more than the count
Estimated Time to Close
How long the lender expects to take from complete submission to funding.
10–14 business days
Estimated time to close: 10-14 business days
Exit Strategy Requirement
Evidence the lender requires that you can repay — a resale comparable analysis, a refinance pre-qualification, or a signed take-out commitment.
Not addressed
On a short-term loan the lender is underwriting your exit as much as the property. If the exit is a refinance, they may effectively underwrite that loan too.
Typical: Resale CMA or refinance pre-qualification required
Insurance Requirements
Coverage the lender requires — property, liability, loss of rents, builder's risk, flood, windstorm — with minimum amounts and endorsements.
Not addressed
In coastal and wildfire markets this has become a major and volatile cost, sometimes large enough to break the coverage test on its own. Builder's risk with vacancy permitted is a specific product many agents get wrong.
Typical: Builder's risk with vacancy permitted, plus general liability
Ongoing Reporting Requirements
Financial statements, rent rolls, and progress reports you must deliver after closing, and how often.
Not addressed
Administrative on its face, but late reporting is an event of default in many loan documents, and on facilities it can suspend your ability to draw.
Typical: Monthly portfolio and progress reporting on facilities
Original document text
*** SYNTHETIC EXAMPLE — NOT A REAL TERM SHEET ***
Written 2026-07-26 as a test fixture. Lender, borrower, and property are fictional.
Numbers are plausible but are NOT evidence of market pricing. See source.md.
------------------------------------------------------------------------------
IRONGATE PRIVATE CAPITAL, LLC
Fix & Flip / Bridge Term Sheet
Quote #: IG-26-4471
Date: July 11, 2026
Expiration: July 25, 2026 (14 days)
BORROWER
Entity Copperfield Renovations LLC (Georgia LLC)
Guarantor Full personal guaranty from all members holding 20%+
Experience Tier Tier 2 — 3 to 9 completed flips in the trailing 36 months.
Borrower reports 5 completed exits. Verified via HUD-1s.
FICO Minimum 680. Borrower mid-score 714.
Tier Pricing Tier 1 (0-2 exits): 11.99%, max 85% LTC, max 65% LTARV
Tier 2 (3-9 exits): 10.99%, max 90% LTC, max 70% LTARV
Tier 3 (10+ exits): 9.99%, max 92.5% LTC, max 75% LTARV
PROPERTY AND PROJECT
Address [Redacted] — single-family, 1,880 sq ft, built 1974
Purchase Price $242,000
Rehab Budget $78,500 (per contractor scope of work, attached)
Total Project Cost $320,500
After Repair Value $415,000 (subject to appraisal with ARV opinion)
Exit Strategy Resale. Borrower to provide a comparable market analysis
supporting the ARV and an estimated days-on-market.
LOAN STRUCTURE
Total Loan Amount $288,450
Initial Advance $209,950 (86.75% of purchase price)
Rehab Holdback $78,500 (100% of approved rehab budget)
Loan to Cost 90.00% of total project cost
Loan to ARV 69.51% (maximum 70% for this tier)
Borrower Cash
Required at Close $32,050 down payment plus closing costs and prepaids,
estimated $41,800 all-in.
IMPORTANT — HOW THE REHAB MONEY WORKS. The rehab holdback of $78,500 is NOT
advanced at closing. It is retained by lender and disbursed in arrears by draw
as work is completed and inspected. Borrower must fund each phase of work from
its own funds and is then reimbursed. Borrower should not rely on the holdback
as working capital.
PRICING
Interest Rate 10.990% per annum
Accrual Basis Interest is charged on the FULL COMMITTED LOAN AMOUNT of
$288,450 from the date of closing, whether or not the rehab
holdback has been drawn. This is sometimes called "full
boat" or "dutch" interest. A drawn-balance ("non-dutch")
option is available at a rate of 11.740%.
Day Count Actual/360
Payments Interest only, monthly, due the 1st. First payment due the
1st of the second month following closing.
Est. Monthly Pmt $2,642.65 (on full committed amount)
TERM
Initial Term 12 months
Extensions Two extensions of 3 months each, at borrower's option,
subject to: (a) no event of default, (b) payment of an
extension fee of 1.00% of the then-outstanding balance per
extension, (c) rehab at least 90% complete for the second
extension, (d) property listed for sale.
Maturity Full principal, accrued interest, and all fees due at
maturity. There is no amortization.
REHAB DRAW PROCESS
Number of Draws Up to 5. Additional draws at $350 each.
Draw Fee $250 per draw (first draw fee waived)
Inspection Third-party inspection required for each draw. Inspection
fee $175, charged to borrower, deducted from draw proceeds.
Turnaround Funding within 3 business days of a satisfactory inspection.
Inspections are typically scheduled within 2 business days
of request.
Draw Basis Reimbursement of completed work only. No advance funding of
materials not yet installed, and no deposits to contractors.
Retainage 10% of each draw is retained and released with the final
draw upon completion, final inspection, and receipt of
lien waivers from all contractors and material suppliers.
Contingency Any change order increasing the scope by more than $5,000
or 10% of the original budget requires lender approval and
may require additional borrower equity.
FEES
Origination Points 2.000% of total loan amount ($5,769)
Underwriting Fee $1,495
Appraisal (ARV) $850
Property Inspection
(initial/feasibility) $325
Doc Prep / Legal $795
Wire Fee $45
Servicing Fee $35 per month
Exit Fee None
Prepayment Penalty None. Loan may be repaid at any time without premium.
Minimum Interest THREE (3) MONTHS. If the loan is repaid before the third
monthly payment, borrower owes interest through month three
regardless. A fast flip does not avoid this.
DEFAULT AND LATE
Late Charge 5% of the payment amount, after a 10-day grace period.
Default Rate The lesser of 24.00% per annum or the maximum permitted by
applicable law, accruing from the date of default.
Extension of
Maturity in
Default Not available. A loan that reaches maturity unpaid is in
default and the default rate applies to the entire balance.
CONDITIONS TO CLOSING
1. Appraisal supporting both as-is value and ARV. If the ARV comes in below
$415,000, the loan will be resized to 70% of the appraised ARV and borrower
must cover the shortfall in cash.
2. Detailed, line-item scope of work signed by borrower and by a licensed and
insured general contractor acceptable to lender. Lender reviews the budget
for feasibility and may reduce line items it considers unsupported.
3. Contractor packet: license, general liability insurance naming lender as
additional insured, W-9, and references.
4. Builder's risk insurance in an amount not less than the total project cost,
naming lender as mortgagee and loss payee, with vacancy permitted.
5. Entity documents, operating agreement, certificate of good standing, EIN.
6. Verification of borrower liquidity of not less than $35,000 after closing,
sufficient to fund the first phase of work and 6 months of interest.
7. Clear title, lender's policy in the full loan amount, with a pending
disbursement clause.
8. Background and litigation search on all guarantors. Any prior foreclosure,
deed in lieu, or bankruptcy within 36 months must be disclosed.
Good Faith Deposit $1,500 due upon acceptance of this term sheet, applied to
appraisal and inspection costs. Non-refundable once the
appraisal is ordered.
Estimated time to close: 10-14 business days from receipt of a complete file and
signed scope of work.
This term sheet is an expression of interest based on information supplied by the
borrower and is not a commitment to lend. All terms remain subject to appraisal,
underwriting, and credit approval, and may be withdrawn or modified at any time
prior to closing.