Hard money loans for investors who need to move fast
Hard money loans are short-term, asset-based loans for investment property. They are built for flips, rehabs, auction purchases and deals that cannot wait on a bank, and we line them up for investors across Southwest Florida.
What is a hard money loan?
A hard money loan is a short-term, interest-only loan for investment property that is approved mainly on the property's value, including its after-repair value, rather than on your income. Terms usually run 6 to 24 months and cost more than a traditional mortgage, with higher rates and upfront points. Investors use them to buy and renovate quickly, then sell or refinance into a long-term loan such as DSCR.
Talk it through with a licensed loan officer. No credit pull to ask questions. NMLS # 226100.
- Who it is for
- House flippers, rehab investors, auction and cash-offer buyers, and investors bridging to a long-term loan
- How you qualify
- Mainly the property's value and after-repair value, plus your down payment and experience
- Loan amount
- A percentage of the purchase price and rehab budget, capped by the after-repair value
- Term
- Usually 6 to 24 months, interest-only
- Cost
- Higher rate than a mortgage plus upfront points; we compare lenders for you
- Property use
- Investment and business purposes only, not a home you will live in
What lenders want to see on a hard money deal
The property and the plan matter most. Clear numbers get you better terms.
- The deal. Purchase contract or auction details, with the price and closing date.
- A scope of work. Your renovation budget, line by line, and your contractor if you have one.
- An exit plan. Sale comparables for a flip, or rent and DSCR numbers if you plan to refinance and hold.
- Down payment and experience. Funds for your share of the purchase and rehab, and any past projects you have completed.
Rehab in Southwest Florida has its own rules
Storm-damaged and dated homes are common opportunities here, but the budget has to account for local permitting and flood rules.
The 50% flood rule
In a flood zone, if repair or improvement costs exceed half the building's value, FEMA rules require bringing it up to current flood standards. That can change the whole budget.
Permits and inspections
Cape Coral, Fort Myers and Lee County each run their own permitting. Draw schedules should match inspection timing so money arrives when the work is done.
Insurance on a rehab
Vacant and under-renovation homes need the right builder's risk or vacant policy, and wind and flood coverage affect your refinance later.
From first call to closing, step by step
Send the deal
Property, price, rehab budget and your exit plan, sale or refinance.
Get terms
We compare lenders on rate, points, leverage and draw process.
Close
We coordinate valuation and title around your contract or auction deadline.
Renovate and exit
Draws fund the work; then sell, or refinance into a DSCR loan to hold.
Hard money questions, answered
Straight answers. If yours isn't here, call or send it through the form below.
How does a hard money loan work?
A hard money lender funds part of the purchase and renovation of an investment property based mainly on its value and after-repair value. You pay interest only for a short term, usually 6 to 24 months, then repay the loan when you sell or refinance.
Can I use a hard money loan to buy a home to live in?
No. Hard money loans are for investment and business purposes. If you plan to live in the home, we will look at FHA, conventional or renovation loans instead.
How much down payment does a hard money loan need?
It depends on the lender, your experience and the deal. Lenders typically lend a percentage of the purchase price and rehab budget, capped by the after-repair value, and you bring the rest.
Do hard money lenders check credit?
Most do, but the property and the plan carry more weight than with a traditional mortgage. Experience with past projects can also improve your terms.
How are renovation funds paid out?
Rehab money is usually held back and released in draws as work is completed and inspected, based on the scope of work you submit at closing.
What is the exit strategy on a hard money loan?
Lenders want to know how you will repay the loan: selling the finished property, or refinancing into a long-term loan such as a DSCR mortgage once it is rented.
Have a deal on the clock? Send it now
Share the property, price, rehab budget and your exit plan. We will come back with hard money terms and what you need to close.
- Phone
- (239) 634-6685
- Serving
- Cape Coral, Fort Myers and Southwest Florida
- NMLS
- Company 2371310 · Loan Officer 226100
