Investors

Hard Money Loans

Asset-Based Lending for Real Estate Investors.

Reviewed by Tathiana Moreno, NMLS #1684574 · Last updated September 2026

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Minimum Credit Score
No minimum (asset-based)
Minimum Down Payment
20–30% (varies by property)
Ideal For
Fix-and-flip investors, bridge financing, distressed properties

What is a hard money loan?

Hard money loans are asset-based, short-term loans primarily used by real estate investors for fix-and-flip projects, bridge financing, or time-sensitive acquisitions. Approval is based on the property's value, not your credit score.

Because hard money lenders are primarily concerned with the property's value and your exit strategy, not your W2 income or debt-to-income ratio, approval decisions move much faster than traditional financing, often in days rather than weeks. That speed comes at a cost: rates run higher than conventional financing, and terms are short, typically 6 to 24 months, which means hard money works best when you have a clear plan to sell or refinance before the term ends.

Who It's For

Hard money loans are designed for experienced real estate investors who need fast financing for purchase-rehab projects, bridge loans between transactions, or distressed properties that don't qualify for conventional financing. First-time flippers with a solid contractor and exit plan can qualify just as readily as seasoned investors, since the loan is secured by the property itself rather than a lengthy track record.

Key Benefits

  • Fast closings, often in 5–10 business days
  • Approval based on property value, not just credit
  • Available for properties in disrepair
  • No prepayment penalty in most cases
  • Interest-only payment options
  • Rehab funds can be escrowed into loan

What You'll Need

  • Property serves as primary collateral
  • Minimum 20–30% equity/down payment
  • Exit strategy documentation (sale or refinance)
  • Experience with real estate investment preferred
  • Property appraisal/valuation required
  • 6–24 month terms typical

Hard Money Loans in Florida for 2026

Florida's fix-and-flip and investment property market, especially in growth corridors like Cape Coral, Fort Myers, and the broader Southwest Florida region, relies heavily on hard money financing to move quickly on distressed and undervalued properties. Because approval is based on the property's after-repair value rather than your personal income documentation, hard money loans can often close in days rather than weeks, letting investors compete with cash buyers in a tight inventory market. Interest rates typically run 8–14%, reflecting the short hold periods and higher risk lenders take on. Florida's fast-growing rental demand also makes the BRRRR strategy (buy, rehab, rent, refinance, repeat) especially popular here, and hard money is typically the bridge that funds the buy-and-rehab phase before a long-term rental loan or conventional refinance takes over.

Frequently Asked Questions

Hard money loans can close in as few as 5–10 business days, making them ideal for competitive real estate markets.

Single-family, multi-family, commercial, mixed-use, and even properties in poor condition can qualify for hard money loans.

Typically yes. Terms range from 6 to 24 months, as they're designed as bridge financing until you sell or refinance.

Hard money loans focus primarily on the asset, so credit is less of a factor than with conventional loans.

Hard money rates are higher than conventional loans, typically 8–14%, reflecting the speed, flexibility, and risk involved.

Yes. Many of our hard money clients are out-of-state investors targeting the Southwest Florida market. Since approval is based on the property, not your personal residency, financing is straightforward.

Most hard money loans include extension options, though they typically come with an additional fee. Tathiana structures your exit strategy up front so this is rarely a surprise.

Many hard money programs allow rehab funds to be escrowed into the loan and released in draws as work is completed, so you're not fronting renovation costs entirely out of pocket.

BRRRR stands for buy, rehab, rent, refinance, repeat. Hard money typically funds the buy and rehab phases quickly, then you refinance into a long-term rental loan once the property is stabilized and tenant-occupied.

Yes, this is typically structured as a cash-out bridge loan against your existing equity, often used to fund the down payment or rehab costs on your next investment property.

Ready to Get Started?

Contact Tathiana today for a free, no-obligation consultation. She'll review your situation and tell you exactly what you qualify for.

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