The Quick Read: A hard money deal summary is a short, organized package that lets a private lender judge the property and the plan instead of your income. It is not a regulated form, so no standard template exists, but the core contents repeat from file to file. Lenders size the loan off the deal, so clean documents protect the loan amount.
- Core contents: purchase contract, line-item scope of work with a budget, comparable sales supporting after-repair value (ARV), entity documents, proof of funds, and an exit plan.
- Two leverage tests apply, one on cost and one on ARV, and the lower result governs.
- The scope of work has to reach the appraiser, or ARV can come in light.
- Rehab money is a holdback released in draws, so the summary should show how you fund the gap.
- Program terms vary by lender, property, and experience, and nothing here is a commitment to lend.
What Is a Hard Money Deal Summary?
It is a one-to-two page cover sheet plus exhibits. No federal rule defines it. It is a private-lender convention, and the lender’s credit policy decides what it wants to see.
What this loan actually costs to carry.
Hard money is sized against the project and priced by time. Enter the deal and see how much the program will lend, the cash required at closing, the carry while you hold it, and what is left at the exit.
Leverage tiers on the current program: 85% with fewer than 2, 90% with 2 or more, 93% with 5 or more completed projects — every tier capped at 75% of after-repair value. Loan amounts up to $5,000,000, larger by exception; terms of 6 to 18 months, interest-only, no prepayment penalty. The rehab portion funds in draws against completed work, not at closing.
Program parameters shown update from Lendmire’s centralized guideline source. Rate, points, and months are editable assumptions, not quoted terms.
Cost cap sets the loan · positive spread
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. Rate, points, and months are editable assumptions. Hard money is business-purpose financing for real estate investors, not a consumer mortgage. Leverage on the current program tops out at 93% of project cost for investors with a documented track record, capped at 75% of after-repair value, with rehab funding up to 100% of the documented budget released in draws; actual terms vary by lender, borrower experience, property, and exit. Lendmire is a mortgage broker, not a lender.
Hard money underwriting is asset-based. Scotsman Guide notes that these decisions rest on the subject property, which usually makes lenders conservative on leverage. The summary is your argument that the property, the plan, and the exit support the loan.
Three documents get confused, so separate them.
| Document | Purpose | Who writes it |
|---|---|---|
| Deal summary | Pitch the deal to get terms | Borrower |
| Term sheet | State the lender’s proposed terms | Lender |
| Full underwriting file | Back every claim with exhibits | Both sides |
The summary comes first. The term sheet responds to it. The file is what the summary becomes once every line has paper behind it.
The Summary, Field by Field
Build it in this order. Each field points to an exhibit.
| Field | What to write | Exhibit |
|---|---|---|
| Property | Address, type, unit count, current condition | Photos, listing |
| Purchase | Contract price and closing target | Executed contract |
| Rehab | Total budget, contingency line | Line-item SOW |
| ARV | Your value, with the comp logic | 3 adjusted sales |
| Loan request | Amount asked, purchase and holdback split | Sources and uses |
| Borrower and entity | LLC name, signer, project history | Entity documents |
| Exit | Sale or refinance, plus a backup | Listing plan, rent estimate |
Keep the first page factual. Skip adjectives. A lender reading twenty of these wants the numbers, the exhibits, and the exit in one scan.
Supporting Documents, Grouped by What They Prove
The property. The executed purchase contract proves price and terms. Photos and a condition note prove the starting point.
The plan. A line-item scope of work with a budget, not a lump sum. Add a contingency line.
The value. Comparable sales that match the finish level you are funding: cosmetic, mid-level, or full gut. Three conservative comps beat ten optimistic ones. Show your adjustments.
The entity. Articles of organization, EIN confirmation, operating agreement, good standing, and the authorized signer. Lenders place loans to LLC borrowers subject to lender program eligibility, and missing entity paper is a common early stall.
The cash. Recent bank statements, full pages, not screenshots. Liquidity treatment varies by lender, so ask before you list any non-cash source as liquidity.
The borrower. A short project history and bio. Experience matters for leverage, and it is documented by completed projects.
Why the Scope of Work Controls the Loan
Underwriting runs on two numbers: the as-is value and the ARV. The pattern is a more generous as-is test and a tighter ARV ceiling, and the loan binds to whichever gives the lower amount.
Here is where files break. In Scotsman Guide’s example, if the scope of work is not attached to the appraisal order, the appraiser may land on a $200,000 as-is value and only a $210,000 ARV. The appraiser had no line-by-line picture of the rehab, so the value gain was never recognized. The ARV ceiling then cuts the loan.
The operating habit is simple. Meet the contractor, finish the budget, and attach the scope to the appraisal order before the order goes in. Not after.
How Leverage Is Tested on the Network
Across Lendmire’s wholesale network, leverage on a fix and flip is tiered by documented completed projects. Terms vary by lender, property, and experience.
- 93% of project cost at 5+ completed projects.
- 90% of project cost at 2+ completed projects.
- 85% of project cost with fewer than 2.
- Every tier is capped at 75% of ARV.
- Up to 100% of the rehab budget funds in draws against completed work. That is a rehab-budget figure, not a purchase loan-to-value.
There is no true 100% purchase program. Percent-of-cost and percent-of-ARV are different tests, so label them in the summary. Bridge purchases without rehab run up to 80% of purchase price, and refinances run up to 65% of value.
Other parameters, also typical and subject to lender guidelines: loan amounts up to $5,000,000 (larger by exception), terms of 6 to 18 months interest-only, a 620 minimum score with added conditions below 660, and non-owner-occupied residential of 1 to 4 units. Underwriting stays asset-based, so the property, plan, and exit carry the file.
The 70% rule is a different thing. It is an investor screening heuristic: purchase price plus rehab not exceeding 70% of ARV. Use it to screen offers. Do not put it in the summary as if it were a lender requirement.
A Worked Summary
These are modeled assumptions, not market data.
A first-page entry might read like this. Property: a three-bedroom single-family in average condition. Purchase: executed contract attached. Rehab: itemized budget with a contingency line, mid-level finish. ARV: three adjusted comps at mid-level finish. Loan request: purchase portion plus a rehab holdback, shown as percentages of cost and of ARV. Exit: listing at completion, with a rent estimate as the backup.
Then run the two tests. The cost-based test and the 75%-of-ARV cap are both computed from your own numbers. If the ARV test produces the smaller loan, that is the loan. Put both results on the page. A lender who sees you ran both tests reads you as someone who has done this before.
The sources-and-uses table should show the purchase portion, the holdback, and your cash in. Mark the holdback as released in draws, so the reader sees you understand the gap.
Making the Numbers Reconcile
Mismatches stall files more than weak deals do. Check these before you send.
1. The purchase price on the summary matches the contract exactly.
2. The rehab total on the summary matches the last line of the scope of work.
3. The ARV on the summary matches the comp logic, and the finish level matches the scope.
4. The loan request splits cleanly into purchase and holdback.
5. The entity name on the summary matches the articles, the EIN letter, and the bank account.
6. Proof of funds covers cash to close plus a reserve.
Documenting the Exit
The exit section states how the loan is repaid. Two paths exist: a sale, or a refinance into long-term financing.
For a sale, state the listing plan and your assumptions for sale costs. Lenders want a realistic view, and the margins are thin. ATTOM’s report puts the typical national flip margin at 21.5%, down from 25.7% in the prior quarter and 27.6% a year earlier, with typical gross profit of $60,526 and a typical 161 days from purchase to resale. Gross profit is before rehab costs. HousingWire’s coverage of ATTOM data reported 61.1% of flips were cash purchases, so financed flippers compete with cash buyers.
For a backup, many investors refinance out of hard money into long-term DSCR financing once the property is stabilized. Lendmire brokers that path. The summary should include a rent estimate so the backup is real. Know the rules for it: the exit loan sizes on its own appraisal, not on your ARV estimate, and cash-out seasoning typically runs from the recorded deed, not from rehab completion or lease signing. Clearing 1.00 coverage on rent against PITIA is not the same as positive cash flow, because repairs, vacancy, and management sit outside the calculation. The complete DSCR loans guide covers the exit-side math.
What Happens After You Submit
Expect follow-up questions on property condition, liquidity, title, insurance, and the payoff plan. Answer from the exhibits already in the file.
Then the term sheet arrives. Check that leverage is stated as percent of cost and percent of ARV, that the holdback is described, and that the draw process is spelled out. Draw cadence is negotiated, not standard. Some lenders inspect every draw. Others inspect once and accept photos afterward. Some pay stored materials only with receipts and photos. Get the cadence in writing.
After closing, draw packages need invoices, lien waivers, change orders, and dated photos. Draws reimburse work already done, so you fund the first phase and wait. Show that cash gap in your sources and uses. For the full list of rehab-file paperwork, see Lendmire’s hard money fix-and-flip documentation checklist.
Where the General Rule Breaks
- Liquidity proof. Lenders differ on what counts as liquid funds.
- Draw rules. No federal rule fixes an inspection schedule. The loan agreement controls.
- Entity timing. A newly formed LLC may lack a bank account, which delays proof of funds.
- Condos. Property type can change eligibility.
- FHA 203(k). A different product with its own holdback mechanics. Do not use its terms as hard money terms.
- Not offered. Commercial, industrial, land or lots, hospitality, and owner-occupied properties are not on the program sheet. The program is not available in LA, MN, ND, SD, or in Baltimore, Chicago, and Detroit.
Key Terms Defined
ARV (after-repair value): The appraised value of the property once the funded scope is complete.
As-is value: What the property is worth in its current condition.
Scope of work (SOW): A line-item list of repairs with a cost for each.
Holdback: The rehab portion of the loan, released in draws instead of at closing.
Draw: A release of rehab funds after inspected, completed work.
Loan-to-cost: The loan as a percentage of purchase price plus rehab budget.
Sources and uses: A table showing where the money comes from and where it goes.
Common Mistakes and Pre-Submission Check
- Sending a lump-sum rehab figure instead of a line-item budget.
- Skipping the contingency line.
- Using best-case finish comps for a cosmetic scope.
- Listing non-cash funds as cash without asking.
- Sending bank statement screenshots with missing pages.
- Entity names that differ across documents.
- Quoting the 70% rule as if it were the lender’s.
Before contract, you can prepare entity documents, bank statements, the experience list, and a draft scope. After contract, add the executed contract, final budget, and comps.
If you are buying, rehabbing or refinancing an investment property on a short timeline and want to see how the numbers work, Lendmire can help you compare hard money options based on the project, the exit plan, leverage, and your goals.
Frequently Asked Questions
What goes on a hard money deal summary?
Property details, purchase price, rehab budget, ARV with comp support, the loan request, borrower and entity information, and the exit plan. Each field should point to an exhibit. Lender requirements vary.
Is a deal summary the same as a term sheet?
No. You write the summary to request terms. The lender writes the term sheet in response. The summary is the pitch and the term sheet is the offer.
How many comps should I include?
Three conservative, adjusted comps matched to the finish level you are funding is a common practice. More is fine if each is relevant. Quality and matching matter more than count.
Does the lender fund the full rehab at closing?
No. The rehab portion is a holdback released in inspected draws against completed work. On the network, up to 100% of the rehab budget can fund this way, varying by lender, property, and experience.
Can a first-time flipper submit a summary?
Yes. First-time investors qualify at the lower leverage tiers, with at least a 620 score and added conditions below 660. A clear scope, solid comps, and documented liquidity help the file.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage brokerage specializing in DSCR investor loans, helping arrange financing across 41 markets, including Washington, D.C., through wholesale and investor-lending channels. The model centers on property-level rental income reviewed by the lender rather than W-2 documentation, subject to lender guidelines, suiting entity-owned and multi-property investors. Lendmire holds Scotsman Guide Top Mortgage Workplace recognition for 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Scotsman Guide, “Take a Tutorial on Hard Money Loans”
2. ATTOM, Home Flipping Profits Continue Gradual Two Year Decline
3. HousingWire, ATTOM Q1 Home Flipping Coverage
This article is part of Lendmire’s hard money loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Meet Hard Money Requirements on Your First Fix-and-Flip · Hard Money Fix and Flip Seasoning Rules for a Quick Resale · How a Hard Money Lender Sizes an Interest-Only Fix and Flip Loan
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.