- Accredited Investor
- An individual or entity that meets income, net-worth, or professional-credential thresholds defined by the SEC under Regulation D. Accredited investor status is required to participate in eligible Miller Bates investment opportunities. Investor eligibility is determined in accordance with applicable securities laws.
- ARV (After-Repair Value)
- The projected market value of a property after planned renovations are complete. Used to size loans on value-add and fix-and-flip projects. Miller Bates typically underwrites to a percentage of current value rather than ARV, but ARV is used as one factor in evaluating a borrower's proposed exit strategy.
- BPO (Broker Price Opinion)
- An estimate of market value prepared by a licensed real estate broker, often used in place of a full appraisal for speed or cost. Miller Bates uses appraisals and/or BPOs depending on the loan size and the state.
- Bridge Loan
- A short-term loan used to "bridge" the gap between an immediate capital need and a longer-term financing or sale event. Typical Miller Bates bridge loans run 3–12 months with an optional 1–12 month extension.
- Deed of Trust
- A recorded security instrument used in Utah and most Western states to pledge real property as collateral for a loan. Miller Bates loans are secured by a recorded deed of trust, which means the note is tied to a specific piece of property in the public record.
- LTV (Loan-to-Value)
- The loan amount divided by the property's current market value, expressed as a percentage. Miller Bates typically underwrites to LTV up to 65%, which provides additional collateral coverage relative to the loan amount.
- Loan Rate
- The stated interest rate on a loan. Interest rates charged to borrowers typically range from 10% to 13% APR. Historically, Miller Bates loan interest rates have generally averaged approximately 11.6%, although rates vary based on market conditions and individual transactions.
- Private Money Loan (a.k.a. Hard Money)
- A real estate loan funded by private capital rather than a bank. Underwriting is primarily based on the property and deal structure, not the borrower's credit score. Typically faster to close than a bank loan, typically with a higher rate to reflect the short-term, specialized nature of the capital.
- Regulation D
- SEC rules under the Securities Act of 1933 that permit private offerings of securities to accredited investors without full SEC registration. Certain Miller Bates investment offerings may be conducted pursuant to Regulation D exemptions under the Securities Act of 1933.
- Title Insurance
- An insurance policy protecting lenders and owners against defects in property title (e.g., undisclosed liens, forged documents). Miller Bates loans typically close through a title company with lender's title insurance in place.
