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What’s a term sheet

It’s a conditional commitment letter, or a good faith letter. It’s a written expression of interest by a hard money lender in making a loan, and an estimate of the eventual terms of the agreement. It is not a commitment letter. It is not legally binding. It is an encouraging statement, and means you’re in the right direction. If a borrower gets a term sheet, it means the hard money lender is willing to work with the borrower pursuant to the terms mentioned in the term sheet.