Planning your first Florida investment deal? Learn what to prepare, which costs to compare and how to explain your repayment plan before requesting financing.
Hard money commonly describes property-secured financing used for a defined investment or business purpose. The exact structure varies. A property-focused review still involves underwriting, documentation and a credible repayment plan.
Start by explaining your experience honestly. A lender may consider your contractor, available cash, project scope and exit plan, but requirements vary. This guide does not promise approval for beginners or establish a no-experience program.
A renovation for resale, an income-producing rental and a ground-up build have different cash-flow needs. Choose the project strategy first. Compare the relevant loan options instead of assuming every hard money product works the same way.
The team will confirm the documents required for the specific transaction. Do not send sensitive identity or financial documents through an unverified channel.
Ask for an itemized estimate covering your contribution, lender fees, third-party closing costs and any reserves or prepaid amounts. A headline loan percentage does not tell you the complete cash requirement.
Clarify how renovation funds are released. If a draw reimburses completed work, you may need cash to pay contractors before reimbursement. Budget interest, insurance, taxes, utilities and association costs during the hold.
Model extra months of carry and an overrun in the work budget. Ask about extension availability, costs and conditions before relying on an extension. Avoid treating a future refinance as guaranteed.
Suppose a property costs $500,000 and planned repairs cost $125,000. A hypothetical $500,000 commitment might include a $375,000 purchase advance and a $125,000 renovation holdback. That still leaves a $125,000 purchase contribution, plus closing costs, carry and any reserves. The rehab holdback is not necessarily cash available on closing day.
This is an invented financing structure for education, not offered leverage or an approval. Adjust the calculator to your own assumptions and request a written cash-to-close estimate.
Explore an illustrative scenario. Change any assumption to see how it affects the estimate.
Illustrative estimates only. Default rates and leverage are assumptions, not offered terms. Actual proceeds, fees, underwriting and draw structures vary.
Discuss this scenario →Know what to expect before you take the next step.
Talk through your dealNo. A property-focused approach does not establish that credit, liquidity or borrower information will be ignored. Ask about the actual underwriting requirements.
No. The funding target depends on approval, complete documentation and closing readiness. A first transaction may require additional preparation.
Compare net proceeds, total fees, interest method, loan term, draw conditions, reserves, exit requirements and extension provisions on the same project assumptions.
Tell us about the property. Let’s get clear on what comes next.
