Mortgage Glossary
Hard Money Loan
Short-term, high-rate financing secured by real estate — the tool investors use for the purchase-and-rehab phase of a deal.
What is a hard money loan?
A hard money loan is a short-term real estate loan funded by private investors or specialty lenders, secured by the value of the property (the “hard asset”) rather than by the borrower’s personal income. Terms are typically 6–24 months. Rates run 8–12%+ with several points of origination fees on top.
The trade-off is speed and flexibility. Hard money lenders can close in 5–10 days, finance properties that aren’t rent-ready (vacant, distressed, mid- rehab), and underwrite primarily on the ARV (after-repair value) rather than the as-is condition. Conventional and DSCR lenders typically can’t do any of that.
Hard money is a tool for a phase — not a long-term hold. The math only works if the borrower has a clear exit: sell the property after rehab, or refinance into cheaper permanent financing once the property is stabilized.
Not offered by TQL — here’s how TQL fits into the BRRRR flow
Total Quality Lending does not originate hard money, bridge loans, or fix-and-flip loans. TQL is permanent financing — the loan investors refinance INTO once the rehab is done.
The BRRRR investor pattern (Buy, Rehab, Rent, Refinance, Repeat):
- Buy — hard money funds the acquisition at distressed pricing
- Rehab — hard money also funds or releases construction draws
- Rent — place a tenant or stand up the STR
- Refinance — this is where TQL DSCR takes over. Up to 80% LTV cash-out at a 30-year fixed or ARM rate, qualifying on the property’s now-stabilized rental cash flow
- Repeat — the cash pulled out in the refi funds the next deal
TQL is the permanent exit. The conventional 6–month seasoning rules don’t apply — cash-out is available once title is seasoned per guidelines.
FAQs
Does TQL offer hard money loans?
No. Total Quality Lending is permanent (30-year) investor financing. We do not originate hard money, bridge loans, or fix-and-flip loans. We're the lender investors refinance INTO once they've completed rehab — the long-term hold loan in a BRRRR strategy.
When should I use hard money vs TQL DSCR?
Hard money: when you need to close fast (5–10 days), the property is uninhabitable or unrentable in current condition, or you're planning to rehab and sell or refinance within 6–12 months. TQL DSCR: when the property is rent-ready (or close to it), you intend to hold for cash flow, and you want a 30-year fixed or ARM with rates below hard money.
How do BRRRR investors use TQL DSCR?
BRRRR — Buy, Rehab, Rent, Refinance, Repeat — is the playbook many investors follow. Hard money handles steps 1 and 2 (buy + rehab). Once the property is rented and stabilized at the new ARV (after-repair value), TQL DSCR provides the long-term refinance at a real mortgage rate, often pulling out enough cash to fund the next acquisition.
Get a quote from a real human
Talk to a loan officer who can structure your BRRRR refinance into TQL DSCR.