Grow your real estate investing business with the most competitive and transparent private lender for bridge loans (hard money, fix & flip, rehab, ground up construction), DSCR rental loans.

Private Lender for DSCR Loans and Fix & Flip Loans | OfferMarket

Private Lender for DSCR Loans and Fix & Flip Loans

#### What is real estate equity?

 

Real estate equity is the ownership interest in a property. Typically, a property is purchased with a mortgage loan at a specified loan-to-value ratio ([LTV](https://www.offermarket.us/real-estate-glossary/ltv)). 

 

#### How to calculate real estate equity?

 

Equity = Market Value - Loan Value

 

For example, if you own a property that, based on [comps](https://www.offermarket.us/real-estate-glossary/comps) or an [appraisal](https://www.offermarket.us/real-estate-glossary/appraisal) is worth $100,000, but you have a $75,000 mortgage loan, then your equity is $25,000.

 

$25,000 = $100,000 - $75,000

Equity in real estate is ownership in a property. Equity is the value that is left to the owner once liabilities are subtracted or paid off. Learn more about equity at OfferMarket.

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Equity - Real Estate Glossary - OfferMarket

What is Equity in real estate?

### What does Direct To Seller mean?

 

"Direct To Seller" is a term typically used by [wholesale real estate](https://www.offermarket.us/guides/wholesale-real-estate-101) [dispositions managers](https://www.offermarket.us/real-estate-glossary/dispositions) to clarify that they are the contract holder in contract to buy a property from a seller. The term "direct to seller" is often used to clarify that the dispositions manager is not a joint venture partner to another wholesaler who actually has a property under contract.

 

### If the above paragraph is confusing, keep reading:

 

- [Wholesale Real Estate 101](https://www.offermarket.us/guides/wholesale-real-estate-101)
- [Wholesale Real Estate: The World Of Real Estate You Probably Know Nothing About (But You Should)](https://dwshorowitz-offermarket.medium.com/wholesale-real-estate-the-world-of-real-estate-you-probably-know-nothing-about-but-you-should-b544c6ad69b5)
- [Sell My House Fast, We Buy Houses In Any Condition For Cash](https://dwshorowitz-offermarket.medium.com/sell-my-house-fast-we-buy-houses-in-any-condition-for-cash-c84c30d55539)

Direct To Seller doesn't exactly mean that it implies. Usually it's not exactly direct to seller. There's more to learn at OfferMarket.

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Direct To Seller - Real Estate Glossary - OfferMarket

What is Direct To Seller in real estate?

## What does Full Boat mean?

 

Full Boat is a term used by private lenders when they are charging interest for the full amount of a [bridge loan](https://www.offermarket.us/blog/bridge-loans-fix-and-flip-loans-hard-money), including the construction holdback portion, regardless of whether it is actually utilized and before it is actually utilized.

 

## Do all private lenders charge full boat interest?

 

No. But many do, so it's important to understand how much you can save if you are able to avoid full boat interest.

 

At OfferMarket, we believe that borrowers should only be charged for the portion of their loan that has been disbursed. This includes the purchase price component and [draw requests](https://www.offermarket.us/frequently-asked-questions/what-is-the-draw-request-process-for-offermarket-capital-construction-loans) that have been processed. We only charge interest on the loan amount that has been disbursed -- this is called "[As Disbursed](https://www.offermarket.us/real-estate-glossary/as-disbursed)".

 

## Full Boat vs. As Disbursed

 

### Scenario

 

- Purchase Price: $200,000
- Construction Holdback (rehab loan): $100,000
- Interest Rate: 8.45%
- Loan Term: 6 months
- Draw 1: $50,000 after month 2
- Draw 2: $50,000 after month 4

 

### Example: Full Boat

 

If you are being charged full boat, you will be charged 8.45% interest on the construction holdback starting on day 1. So after 6 months, you will have paid **$4,225** in interest on the construction loan component. That's **$704.17 per month**.

 

### Example: As Disbursed

 

If you are being charged as disbursed, you will have paid $2,112.50 in interest in the construction loan component. That's **$1,408.33** interest for Draw 1 and **$704.17** interest for Draw 2.

 

### Example: Summary

 

In this example, full boat costs the borrower twice the amount in interest payments compared to As Disbursed, an extra $2,112.50 that cuts into your profit.

Full Boat is a term used by private lenders when they are charging interest for the full amount of a bridge loan, including the construction holdback component, from day 1.

Full Boat Meaning - Real Estate Glossary - OfferMarket

Full Boat

## What is a Schedule Of Real Estate Owned?

 

A Schedule Of Real Estate Owned (SREO) is a document that real estate investors applying for a loan provide to lenders in order to communicate their current real estate holdings and real estate investing experience.

 

The SREO is typically a spreadsheet and we have provided you with OfferMarket Capital's Schedule Of Real Estate Owned template below.

 

## What information is included in a Schedule Of Real Estate Owned?

 

- Property Number
- Property Type
- Purchaser/Entity Name
- Street Address
- City State
- ZIP	
- Purchase Price
- Purchase Date	
- Renovation Budget
- Monthly Rent
- Occupancy Status
- Sale Price
- Sale Date
- Days Held

 

The *Sale Price*, *Sale Date* and *Days Held* are for properties that you have sold -- i.e. they were fix and flip or rental properties that you have since sold.

 

## Schedule Of Real Estate Owned Template

 

Here is OfferMarket Capital's [Schedule Of Real Estate Owned (SREO) template](https://docs.google.com/spreadsheets/d/e/2PACX-1vStfF-rbpUk1XQ5QtD0Te1MuUj2lH0kk7w2YbQKwqu0Xv_2wMSbp5S22CPKk_2V4T8ZMnlEwnUabWuZ/pubhtml?gid=1988909553&single=true).

 

## Schedule Of Real Estate Owned Excel Template

 

**To download the Schedule Of Real Estate Owned Excel template:**

 

1. Go to our [Schedule Of Real Estate Owned Template](https://docs.google.com/spreadsheets/d/1h03J85WTXxltIC7fqaLQ19hISiVPnW6LVkCq0aksAO0/edit?usp=sharing)
2. Click 'File' in the top left menu
3. Click 'Download' in the dropdown menu
4. Select 'Microsoft Excel (.xlsx)' from the list of options

 

## Schedule Of Real Estate Owned PDF Template

 

**To download the Schedule Of Real Estate Owned PDF template:**

 

1. Go to our [Schedule Of Real Estate Owned Template](https://docs.google.com/spreadsheets/d/1h03J85WTXxltIC7fqaLQ19hISiVPnW6LVkCq0aksAO0/edit?usp=sharing)
2. Click 'File' in the top left menu
3. Click 'Download' in the dropdown menu
4. Select 'PDF (.pdf)' from the list of options

 

## Related concepts

 

- [Collateral Desktop Analysis](https://www.offermarket.us/real-estate-glossary/collateral-desktop-analysis)
- [ISAOA/ATIMA](https://www.offermarket.us/real-estate-glossary/isaoa-atima)
- [Landlord Insurance](https://www.offermarket.us/real-estate-glossary/landlord-insurance)
- [USPAP](https://www.offermarket.us/real-estate-glossary/uspap)
- [DSCR](https://www.offermarket.us/real-estate-glossary/dscr-debt-service-coverage-ratio)

A Schedule Of Real Estate Owned, or SREO, is a list of real estate a borrower owns that is submitted to a lender during the loan approval process for review by underwriting. There's more to learn about real estate finance at OfferMarket. 