A Florida investor’s guide to private money, hard money and the questions behind a financing proposal. Start with the transaction structure, not the label.
Private money broadly refers to capital from private sources rather than a conventional bank loan. It can involve an individual, a lending business or an investment fund. Source of capital alone does not establish cost, flexibility or eligibility.
Hard money is often used to describe property-secured investment financing with a defined repayment plan. It can overlap with private money. Ask how the actual loan is underwritten, funded and serviced instead of assuming the terms are interchangeable.
Ask who makes the credit decision, who provides the funds and whether an intermediary is arranging the loan. Confirm any broker compensation and how it appears in the total costs.
Identify the property collateral, proposed lien position, existing debt and any additional collateral or guarantees requested. A gross commitment should be distinguished from proceeds left after payoffs and costs.
Request the rate, interest calculation method, points, servicing or draw charges and closing-cost assumptions in writing. Compare proposals using the same hold period and repayment date.
Clarify the initial advance and any holdbacks, inspections or draw conditions. A commitment that includes future rehabilitation draws is different from receiving the entire amount at closing.
Match the term to the sale, refinance or other intended exit. Understand prepayment provisions, maturity obligations and extension conditions before signing.
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 dealNot on these pages. The scenarios focus on Florida investment-property and business-purpose financing, not unsecured personal borrowing.
No. The labels do not establish the price. Compare actual written proposals, proceeds and total costs over your expected hold period.
Provide the Florida property location, intended use, funding request, current debt and timeline. Explain how the loan would be repaid.
Tell us about the property. Let’s get clear on what comes next.
