Skip to main content

Property Management Blog

What is a Hard Money Loan?

What is a Hard Money Loan?

What is a Hard Money Loan? Hear Lesa Say Sale Executive with Rain City Capital explain hard money loans, what they are and how would use them and why to Designated Broker Jason Clifford.

If you would like more information you can contact Lesa Say at or 206-271-8009

Interview Transcript:

Jason:                   Hi, I'm Jason with SJC and I'm here with Lisa, and she's a hard money lender, so basically she takes money and she puts it in concrete and it makes it really hard.

Lisa:                       That's exactly what I do.

Jason:                   That's not really it, so she can explain what hard money lenders are, what that is and kind of who uses it any why, so.

Lisa:                       Absolutely, so a lot of people use hard money, so you just might be wanting to acquire the property as a fix and flip or a buy and hold family or even commercial. We basically look at the asset first and then we look at the individual second, and other reason why people use us is maybe they don't have the capital or they do have the capital in the bank, but they don't want to utilize all of it, so they want to be able to leverage their money, people that use us really like to leverage.

Jason:                   Okay, so somebody that maybe is buying a property, they're looking at having to do renovation of that property, they may want to go out and get a hard money lender loan on it, my understanding is beyond just the basics of how they're leveraged on it, but that also opens them up to doing like work on the property themselves and so some of the requirements are less.

Lisa:                       Absolutely, for more of your regular lenders they're going to want to have your contractors lined up, they're going to want to have those specific people and you can't do the work with us you can. Of course plumbing, electrical always be safe, hire a professional please higher professional, but that does allow you to do it. But then it also allows you to acquire properties that might not be loanable, so if you're wanting to buy a rental property but it needs repair because you want to get a better value, you can use us to acquire the property, we'll actually help you fund the repairs and then you do the take out with your traditional lender.

Jason:                   Yes, so you refinance it later?

Lisa:                       Absolutely, 100%.

Jason:                   Okay, all right excellent. Well if you'd like more information about this strategy you can contact Lisa or myself, we'll have information here linked down on the blog, thanks for watching.

Lisa:                       Thank you.