Hard Money Loan
Short-term, asset-based real estate financing from private lenders, typically 6–24 months at 9–13% interest. Used for fix-and-flip or BRRRR acquisitions where speed (5–10 day close) matters more than rate. Refinanced into DSCR after rehab. See DSCR vs Hard Money →
Why it matters on a DSCR loan
Hard money is the front end of the BRRRR pipeline: it wins deals that need speed or heavy rehab, with the plan of refinancing into a long-term DSCR loan once the property is stabilized and rented. The costliest mistake is borrowing hard money without confirming the DSCR exit first — if the post-rehab rents or your credit profile won't support the refinance, you're stuck in expensive short-term debt when the balloon comes due. Line up your DSCR takeout terms, seasoning timeline, and reserve requirements before you close on the hard money loan, not after.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).