Hard money lender, what is it, - Posted by jerry

Posted by Jim Kennedy - Houston, TX on July 14, 2002 at 11:03:06:


This topic has been discussed many times on this news group. Do a search of the archives for “hard money” and you’ll find your answer as well as a plethora of information about the topic.

Ed Wachsman has a pretty good explanation of hard money in his How To article titled ?A Glossary Of Common Terms Used In Loans And Lending?. You can find it at:


Because hard money is ?expensive?, you should only consider using hard money as short term financing. It is ideal for acquiring and rehabbing a property that you plan on selling to a retail owner occupant as your exit strategy.

Since hard money lenders would require a first lien position, hard money is not a viable source of down payment funds.

Hope this helps.

Best of Success!!

Jim Kennedy,
Houston, TX

Hard money lender, what is it, - Posted by jerry

Posted by jerry on July 14, 2002 at 10:21:23:

and why would I use one? As you probably guessed from the subject, this is new to me. As to the question, would this be a route I would take if I needed a down payment to get into a property? Any information would be appreciated.