Term Sheet Analyzer: DSCR, Fix and Flip, Hard Money

Last updated: February 27, 2025

An alarming trend we're seeing in the DSCR loan and Fix and Flip loan category is fake and misleading loan terms. These are fooling beginner and experienced real estate investors alike.

We've identified the following types of bad term terms:

1. Bait and switch
2. Clueless broker/loan officer
3. Scam

Make no mistake, all of these are bad, but they are bad for different reasons. Detecting and avoiding them starts with understanding each scenario.

Bait and switch loan terms

Many brokers and lenders are desperate and uncompetitive. The last place you want to find out that your loan terms aren't what you thought they would be is at the closing table.

Clueless brokers and loan officers

The real estate private lending market is unregulated and has attracted an army of inexperienced brokers and loan officers working on commission and desperate for deals. In many cases, they don't realize that the expectations they're setting with you are pie in the sky.

Scam

This is by far the most concerning. The only fee you should be paying prior to closing is for your appraisal, and that fee should ideally be charged by a trusted 3rd party appraisal management company ("AMC").

Be sure to ask for references, check Google reviews, and speak with a representative before giving any sensitive information.

Term Sheet Analyzer

To help real estate investors, we offer a comprehensive term sheet review. If you think your loan terms are too good to be true, submit a loan request via the button below and we'll be happy to review the term sheet to let you know if we feel it's safe and competitive.

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Related reading

Beware of Too-Good-to-Be-True Rates: The Rise of DSCR Lender & Broker Scams