Hard Money & High Stakes with Ryan Morell of Rain City Capital

Episode Description:

In this dynamic episode of Retire On Rentals, host Nicholas Cook chats with Ryan Morell, Sales Director at Rain City Capital, a lender bringing a fresh approach to real estate investing. Ryan shares his journey from banking to mastering foreclosure auctions and hard money lending, offering unique solutions for investors. We explore Rain City’s focus on non-owner-occupied deals, mutual success philosophy, and creative strategies like cash-as-collateral loans. Whether you’re a newbie or seasoned investor, this episode unpacks how to leverage bridge financing, navigate foreclosures, and grow your portfolio in 2025. Tune in for actionable insights to retire on rentals!

Key Topics & Timestamps:  

• 00:00 – Introduction
  Nicholas Cook welcomes listeners to Retire On Rentals and introduces Ryan Morell, Sales Director at Rain City Capital, highlighting their unique investor-focused approach.  
• 01:30 – Ryan’s Origin Story
  Ryan shares how he “fell into” real estate in 2011, leaving a bank job to become a liaison for investor groups bidding at foreclosure auctions, igniting his love for the fast-paced field.  
• 04:00 – Rain City Capital’s Investor Pool
  Learn about Rain City’s focus on non-owner-occupied deals—fix-and-flips, rental purchases, and bridge financing for distressed properties.  
• 07:15 – Mutual Success Philosophy
  Ryan explains how Rain City prioritizes long-term relationships, ensuring clients’ success fuels their own, with some partnerships spanning nearly 15 years.  
• 10:30 – Flexibility for Clients
  Discover how Rain City’s in-house underwriting offers flexibility—extending timelines, guiding newbies, and being honest about deal viability to foster mutual wins.  
• 14:00 – Ideal Clients
  From first-time family flippers to seasoned contractors and realtors, Ryan details who thrives with Rain City, emphasizing the value of trusted teams.  
• 18:00 – Underwriting Approach
  Ryan unpacks a simple, experience-based guideline: tighter terms for beginners, better rates and leeway for veterans, guiding all to success.  
• 21:30 – Turnaround Time
  Speed is key! Rain City closes in days for experienced clients or about a week to 10 days for newbies, especially in competitive pre-foreclosure deals.  
• 25:00 – Foreclosure Auction Model
  A unique edge: Rain City bids at auctions with cashier’s checks, lends the funds, and secures the deal, breaking barriers for investors.  
• 29:00 – Due Diligence for Auctions
  Ryan reveals their process—driving properties, checking titles with multiple companies, and managing risks like liens or burnt-down homes.  
• 34:30 – Multifamily Lending
  Rain City funds smaller multifamily projects for acquisition or ground-up, connecting clients to partners for bigger deals.  
• 38:00 – Loan Origination & Growth
  Ryan discusses holding loans, selling to note buyers, and record-breaking growth ($523-527M in 2024 originations) via securitizations.  
• 43:00 – Market Challenges & Growth
  Despite turbulent rates, Rain City thrives in the investment space, adapting through 2020 and beyond with consistent growth.  
• 47:30 – Sponsor Break
  A word from Sleep Sound Property Management, Portland’s top-rated firm for multifamily and residential real estate. Visit sleepsoundpm.com.  
• 48:30 – Cash-as-Collateral Strategy
  Ryan explains this creative twist: record loans at 100%, hold the down payment as collateral, and return it upon refinance—boosting cash-on-cash returns.  
• 53:00 – Lending Regions
  Rain City operates short-term loans in 16 states (Puget Sound, Oregon, Texas, etc.) and DSCR loans in 43, always expanding strategically.  
• 57:00 – Interest Rates Impact
  Rates affect cost of capital, but Rain City prioritizes relationships, offering competitive 10% loans despite market shifts.  
• 60:30 – 2025 Opportunities
  Ryan sees growth potential—hold properties, build equity, and look Midwest or South, with Rain City connecting clients to resources.  
• 64:00 – Loan Volume & Culture
  A milestone $523-527M funded in 2024, driven by a rock-star team and a family-like culture with rigorous hiring for fit.  
• 68:30 – Advice for Investors
  Ryan urges: don’t fear real estate! Education (e.g., BiggerPockets) and hard money’s leverage make it accessible—be conservative, but take the leap.  
• 72:00 – Rapid-Fire Q&A  
  • Dinner with anyone? John Daly, the unconventional golfer, for a fun, unique chat.  
  • Whiskey or wine? Whiskey—Jameson, versatile and middle-of-the-road.  
  • Right career? Ryan loves people, puzzles, and watching clients grow, with golf and flexibility as bonuses.
• 77:00 – Closing Thoughts
  Nicholas thanks Ryan for sharing Rain City’s vision. Stay focused, stay driven, and retire on rentals!

Guest:  

• Ryan Morell: Sales Director at Rain City Capital, a 15-year veteran of hard money lending, foreclosure auctions, and investor partnerships. From banking to building wealth, Ryan’s passion for relationships and creative solutions drives success.

Resources Mentioned:  

• Rain City Capital: Connect at [email protected] or text (425) 319-7757.  
• Sleep Sound Property Management: Visit sleepsoundpm.com for real estate acquisition, operation, and sales support.  
• BiggerPockets: A go-to for free real estate education and insights.

Call to Action:
Enjoyed this episode? Like and subscribe to Retire On Rentals for more tips on optimizing real estate and passive income. Reach out to Ryan at [email protected] or (425) 319-7757, and join us on your journey to retire on rentals! Stay focused, stay driven.