Hard Money Loans: Everything You Need To Know

Most hard money loans are for short-term projects and when you purchase a property to renovate and quickly turn over, time is of the essence. Your main goal is to sell for a profit, in a rising market this is achievable, but sometimes it can be hard to get a loan.Hard money is a term used mainly in the USA and Canada where they are common loans, and the market for hard loans continues to expand, and this is where Florida money loans can help.

How to Get a Hard Money Loan

Florida money loans, LTV, or loan to value are determined by the ratio of the loan amount, divided by the property valuation, (determined by a broker), of the property. Some lenders will only lend 65% of the property’s value, and the loans require high down payments. If you have some spare cash for the deposit, this is an ideal loan to progress your plan to fix and sell a property and move on to the next one.

Specialty lending can mean that you will get the loan you want and be able to undertake your renovation fast. You may have purchased the property at auction, or it may be a foreclosure. Once you purchase the property, the clock is ticking and you are anxious to complete the work within a year, as there is not much advantage in selling as is. Because interest rates on a hard money loan are typically higher, you will need to look for the best deal, as rates can be as high as 13% or 14%. Specialty Lending for fix and flip can only be used for residential real estate opportunities, as it is typically offered as a short-term loan, set for 12 months with a fee.

Finding a Property

  • Many purchasers look around for a nearly deceased estate, snap it up before it goes to auction, and then undertake minor renovations, and can have it back on the market within 10-12 months.
  • Alternately they may find a small house on a big block of land, and add value to it, increasing the market price, often doubling it at auction.
  • Another option is the old family home needing a makeover, totally renovating it with a new kitchen and bathrooms, changing floors, and painting. In fact, they sometimes put in all the new appliances and landscape the grounds, making this a very attractive package for the purchaser. For those with the vision and expertise to find the deals and have the work completed in a timely manner, there is money to be made.

The Goal

You may be planning to fix and sell houses as a career, and there is money to be made in the process. Once you have a good team of tradespeople around you, you can get everything done quite quickly and then move on to the next property.

The end goal is to make the house desirable without spending too much money on doing so. The timing is also of great importance as it has to be done fast and be back on the market before the loan expires. People who are serial flippers understand that there is always a good deal coming along, it is important to be ready to snap it up. Often you will need to make quite a few offers to get the property under contract.

Florida Money Loans

People who undertake hard money loans often pay higher interest rates, and they could be 13% or 14%, so shop around for the best deal. These loans are very popular with investors in real estate as they are :


  • approved fast
  • flexible
  • not too much documentation is involved
  • sometimes the only option for turning over a property fast.
  • once you have turned a couple of properties over you will have a much larger deposit

You don’t pay cash when you use hard money loans, so it makes sense to fix and flip, using someone else’s money to make a lump sum for yourself.


  • hard money loans are largely unregulated.
  • higher interest rates apply


Florida money loans will help you progress your plan, and at the moment the real estate market is ideal for this type of activity. All you really have to do is work to a time frame to get the house sold and the money in the bank.