Foreclosure Legal process by which a mortgagor of real estate property is deprived of his interest in that property due to failure to comply with terms and conditions of the mortgage.

Hard Money cash or currency

Hard Money Loans A Hard Money Loan is a specific type of financing in which a borrower receives funds based on the value of a commercial real estate property. Hard money loans are typically issued at much higher interest rates than standard commercial or residential property loans. They are almost never issued by a standard commercial bank.

Interest The portion of a mortgage payment that is the "charge" for using the lender's funds.

Loan Processing All the steps taken by a lending institution from the time a loan application is received to the time the loan is closed and placed on the books, including processing the application, conducting the credit investigation, evaluating the loan terms, etcetera.

Loan Servicing After you obtain a loan, the company you make the payments to is "servicing" your loan.They process payments, send statements, manage the escrow/impound account, provide collection efforts on delinquent loans, ensure that insurance and property taxes are made on the property, handle pay-offs, assumptions and provide a variety of other services.

Private Lending An institution or an individual who provides funding in the form of debt.

Rate of Return The reward for investing. The value increase of an investment expressed as a percentage, or, the rate at which an investor recaptures the investment in income.

Trust Deed (Deed of trust) A document executed by a land owner by which the land is given as security for the payment of a note or other performance of an obligation. In California and some other states, the deed of trust is usually used instead of a mortgage.

12% return on investment This is YOUR RETURN on your investment.