Private Money and Hard Money Loans in Florida
Fast, flexible real estate financing for investors, business-purpose borrowers,
construction projects, bridge loans, fix-and-flip transactions, rental properties,
mixed-use buildings and commercial real estate.
Some private lenders focus primarily on the property, equity and exit strategy — not just tax returns, W-2 income or conventional credit guidelines.
Years Experience
Wholesale Lenders
Loans Closed
Private Capital Solutions
When a Traditional Bank Is Not the Right Fit
Hard Money Loans in Florida can provide another financing option when a real estate
transaction does not fit conventional bank guidelines or when timing is critical.
Private lenders often place significant weight on the property value, borrower equity,
project plan and exit strategy.
Mortgages Done Right works with multiple private, hard-money and specialty lenders.
Rather than relying on one lender’s guidelines, Greg Hayden can compare financing
structures for investment properties, commercial real estate, construction and other
business-purpose transactions.
Most Hard-Money Lenders Do Not Finance Owner-Occupied Primary Residences
Most private and hard-money lenders focus on business-purpose transactions,
non-owner-occupied investment properties, commercial real estate, bridge loans,
construction and other investor-related scenarios.
Financing directly on an owner-occupied primary residence is much more limited
and may be subject to additional consumer-lending requirements.
Some private lenders also require an investment property to be vested in an LLC
or other eligible business entity. Entity vesting requirements vary by lender and
do not, by themselves, determine whether a transaction is considered business-purpose.
Investment Property?
Single-family rentals, condos, 2–4 units, multifamily, mixed-use, commercial,
construction and other non-owner-occupied properties may have significantly more
private-money options.
The Bank Said No — Does the Property Still Have Enough Equity?
A bank decline does not necessarily mean the property cannot be financed. Private
lenders may evaluate scenarios differently when there is sufficient collateral,
equity and a reasonable exit strategy.
Call Greg before assuming the transaction is dead. A private lender may look at the
collateral and exit strategy very differently from a conventional bank.
Property Value, Equity and Exit Strategy Can Matter More Than Traditional Income
Private-money underwriting can be very different from conventional mortgage
underwriting. The lender may place greater emphasis on the real estate and the
borrower’s equity position.
- Current property value
- Purchase price
- After-repair value when applicable
- Borrower equity or down payment
- Property condition
- Project budget
- Borrower experience when relevant
- Liquidity and reserves
- Marketability of the property
- Clear repayment or exit strategy
Properties and Transactions Private Lenders May Consider
Residential Investment Properties
Private lenders may finance non-owner-occupied single-family homes, condos,
townhomes and 2–4 unit investment properties.
Fix-and-Flip Loans
Financing may be available for acquisition, renovation and resale projects.
Depending on the lender, rehabilitation funds may be advanced through construction
draws.
Bridge Loans
Short-term bridge financing can provide time to sell, renovate, stabilize,
refinance or obtain permanent financing.
Ground-Up Construction
Private construction financing may be available for new residential investment,
multifamily, mixed-use and certain commercial projects.
Mixed-Use and Multifamily
Properties combining residential and commercial uses, apartment buildings and
other multifamily assets may fit private-money programs.
Commercial Real Estate
Depending on the lender, eligible collateral may include office, retail,
warehouse, industrial, medical, mixed-use and other commercial properties.
Cash-Out Refinance
Investors may use private money to access equity for another acquisition,
renovation, business need or property repositioning.
Foreign National Private Money
Certain lenders may consider foreign national investors without traditional
U.S. credit or U.S. income documentation.
Distressed or Unusual Properties
Private financing may be useful when the property condition, occupancy or use
prevents standard institutional financing.
Private Capital for Ground-Up Construction, Rehab and Fix-and-Flip Projects
Construction and renovation projects often need a lender that understands future
value rather than only the property’s current condition.
Depending on the program, private financing may help fund acquisition,
construction or renovation costs and allow the investor to complete the project
before selling or refinancing into permanent financing.
Does Credit Score Matter for a Hard-Money Loan?
It depends on the lender. Some private-money programs have minimum credit-score
requirements, while others may have no stated minimum FICO and focus much more heavily
on collateral, equity, liquidity and the exit strategy.
A credit problem that prevents conventional financing does not automatically prevent
private financing. However, credit history, bankruptcies, foreclosures, judgments,
liens and other borrower information may still be reviewed depending on the lender.
Tax Returns May Not Be Required
Some private lenders do not qualify borrowers using traditional tax-return income,
W-2 income or conventional debt-to-income ratios.
Documentation requirements vary. The lender may instead focus on assets, liquidity,
the property and the repayment plan.
Private Money Can Move Faster Than Traditional Financing
Private lenders can often evaluate a transaction more quickly because the approval
process may be more focused on the collateral and deal structure.
Closing speed depends on title, appraisal or valuation, insurance, legal
documentation and the complexity of the transaction.
Foreign National Hard-Money and Private Loans
South Florida attracts real estate investors from around the world. Certain private
lenders may consider foreign national borrowers who do not have U.S. credit,
traditional U.S. employment income or extensive U.S. financial history.
Down-payment, entity, reserve and documentation requirements vary substantially by
lender and property type.
Private Money Today, DSCR Financing Later
Investors frequently use short-term private financing to acquire, renovate or
stabilize a property and then refinance into longer-term rental financing.
Once the property is stabilized and generating acceptable rental income, a
DSCR Investor Loan
may provide a longer-term exit strategy.
Hard-Money Terms Can Vary Significantly by Lender and Deal
Private lending is not one standardized mortgage product. Interest rates, points,
leverage, term, reserves and documentation can vary materially depending on the
property and transaction.
Often more conservative than conventional financing and based heavily on the collateral.
Many private loans are short-term bridge loans, although terms vary by lender.
Interest-only payments are common in many private-money programs.
Programs can range from smaller investment loans to multimillion-dollar transactions.
Sale, permanent refinance, DSCR financing or another documented repayment plan may be required.
Private lenders may close significantly faster than traditional institutional financing when documentation is ready.
Rates, fees, loan amounts, leverage, documentation, credit requirements and terms vary
by lender and transaction. Examples on this page are general information and are not
a commitment to lend or a guarantee of specific terms.
One Private Lender’s Decline Does Not Mean Every Private Lender Will Say No
Private lenders have very different appetites. One may specialize in residential
fix-and-flip loans while another prefers commercial, construction, mixed-use,
multifamily or foreign national transactions.
Greg Hayden can compare multiple wholesale and private lending sources instead of
forcing the transaction into one lender’s guidelines.
More Florida Investment and Specialty Financing Options
Explore DSCR Investor Loans, Bank Statement Loans, No Income Verification Mortgage Loans, Palm Beach County mortgage options, Broward County mortgage options, and other communities on our Cities We Service page.
Private Money and Hard Money Loan Questions
What is a hard-money loan?
A hard-money loan is generally a private or asset-based real estate loan in which
the lender places significant emphasis on the collateral, equity and exit strategy
rather than relying solely on traditional income qualification.
Can I get a hard-money loan with bad credit?
Possibly. Some private lenders have flexible credit standards and certain programs
may not have a traditional minimum FICO requirement. Credit may still be reviewed,
and requirements vary by lender.
Can hard money be used for a primary residence?
Most private and hard-money lenders focus on business-purpose and non-owner-occupied
transactions. Financing directly on an owner-occupied primary residence is much more
limited and may involve different consumer-lending requirements.
Do I need an LLC for a private-money loan?
Some lenders require investment or business-purpose property to be vested in an LLC
or other eligible entity, while others do not. Requirements depend on the lender,
transaction and property.
Do private lenders require tax returns?
Some do not. Certain private lenders qualify primarily using the property, equity,
assets and exit strategy rather than conventional tax-return income. Documentation
varies by lender.
Can a foreign national get a hard-money loan?
Certain private lenders offer financing for foreign national investors, including
borrowers without traditional U.S. credit or employment documentation.
Can I use hard money for construction or fix-and-flip?
Yes, depending on the lender. Private-money programs may be available for fix-and-flip,
rehabilitation, ground-up construction and construction-completion projects.
How fast can a private-money loan close?
Private lenders can often move faster than traditional banks, but closing time depends
on the property, valuation, title, insurance, legal documentation and lender requirements.
Talk Directly With Greg About Private-Money Options
Whether the transaction involves an investment property, bridge loan, fix-and-flip,
construction, mixed-use property, commercial real estate or foreign national investor,
Greg can review the deal and compare available private lending options.