Hard money loans — also called bridge loans or private money loans — are short-term, asset-based financing tools used by real estate investors to acquire and rehabilitate properties quickly. Unlike conventional or DSCR loans, hard money lenders evaluate the property's value and the investor's experience rather than credit scores and income documentation. In Florida's competitive investment market, the ability to close in 7–10 days with hard money financing is often the difference between getting a deal and losing it to a cash buyer.
What Hard Money Loans Are — And Are Not
Hard money loans are fundamentally different from DSCR or conventional loans:
- Short-term — Typically 6–18 months. Not designed for long-term holds. The exit is either a sale (flip) or a refinance into a DSCR loan after stabilization (BRRRR).
- Asset-based — The lender primarily evaluates the property's current value and After Repair Value (ARV), not the borrower's income or credit score.
- Fast close — Hard money lenders can often close in 7–10 business days. Some can close in 3–5 days for experienced borrowers with established relationships.
- Higher rates — Hard money rates typically range from 9–13%+ in Florida. Points (origination fees) of 1–4% are common. The rate premium reflects speed, flexibility, and short term.
- High leverage available — Many hard money lenders offer up to 90% of purchase price and 100% of rehab costs for experienced investors with strong track records.
Florida Fix and Flip Market — Why Hard Money Matters
Florida has one of the most active fix-and-flip markets in the country. Tampa Bay, Orlando, Jacksonville, and South Florida all have significant distressed property inventory and strong end-buyer demand. Several Florida-specific dynamics make hard money essential:
- Auction competition — Florida has a significant foreclosure auction market (online through RealAuction and in-county). Auction purchases require immediate payment or very fast financing — hard money is the primary tool.
- Distressed seller market — Florida's active investor community creates a pipeline of off-market distressed deals that require fast close. A cash offer with 7-day close beats a DSCR approval every time on distressed property.
- Insurance during rehab — Vacant property insurance is required during renovation. Florida insurance for vacant investment properties is expensive and limited — factor this into your holding cost calculation.
- Permit requirements — Florida municipal permit requirements vary significantly by county and project scope. Unpermitted work discovered during rehab can add cost and timeline. Hard money lenders with Florida experience account for this.
Hard Money to DSCR — The BRRRR Strategy in Florida
The most common use of Florida hard money loans is as the first phase of a BRRRR strategy:
- Buy — Acquire distressed property with hard money (7–10 day close)
- Rehab — Complete renovation using hard money draw schedule (100% of rehab costs funded)
- Rent — Place tenant at market rent
- Refinance — Replace hard money with 30-year DSCR loan based on new appraised value
- Repeat — Use cash-out proceeds to fund next acquisition
Viador Partners handles both phases — bridge/hard money financing for the acquisition and rehab, then DSCR origination for the refinance. Managing both with one relationship streamlines the transition and reduces timeline risk.
Hard Money Loan Requirements in Florida
Florida hard money lenders typically evaluate:
- Property value — Current as-is value and projected ARV. The lender underwrites to ARV.
- Investor experience — Track record matters significantly. First-time investors face lower leverage and higher rates than experienced operators with 5+ completed projects.
- Exit strategy — Lenders want to understand clearly whether the exit is a flip or a refinance, and whether that exit is realistic given the market and project scope.
- Down payment — Typically 10–20% of purchase price for experienced investors. Less experience = more down payment required.
- Scope of work — Detailed rehab scope and budget required for draw schedule administration.
- Credit score — Less important than for DSCR but still reviewed. Most hard money lenders have a 580–620 minimum.
Frequently Asked Questions
A hard money loan is a short-term, asset-based loan used by real estate investors to acquire and rehabilitate properties quickly. The lender primarily evaluates the property's value and ARV rather than the borrower's income. Hard money loans typically close in 7–10 days and carry rates of 9–13%+ for 6–18 month terms.
Most Florida hard money lenders close in 7–10 business days. Experienced borrowers with established lender relationships can sometimes close in 3–5 days. This speed advantage is the primary reason investors choose hard money over conventional financing for distressed acquisitions.
Hard money is short-term (6–18 months), high rate (9–13%+), asset-based financing for acquisition and rehab. DSCR is long-term (30-year), moderate rate (6.5–8.5%), income-based financing for stabilized rental properties. Most serious BRRRR investors use hard money to acquire and rehab, then refinance into DSCR once the property is rented.
Yes, but with less favorable terms. First-time investors typically face lower LTV (less leverage), higher rates, and more rigorous scope-of-work requirements. Starting with smaller, simpler projects and building a track record leads to better terms over time.
Yes. Viador Partners works with hard money and bridge lenders for Florida fix-and-flip and BRRRR projects, and then handles the DSCR refinance after stabilization. Managing both phases through one relationship reduces timeline risk and simplifies the transition.
Most Florida hard money lenders focus on 1–4 unit residential properties and small multi-family. Some lend on commercial properties. Distressed properties, properties needing significant rehab, and properties with title issues that conventional lenders won't touch are all common hard money candidates.