Miami Hard Money Lenders: Fast, Flexible Loans
Looking to kickstart your next real estate project in Miami with a hard money loan? These loans can be used for various property types, from fixer-uppers in Little Havana to condos in Brickell intended for long-term rentals. Hard money lenders are known for their fast and flexible financing options, which can be appealing to investors and homeowners who need to secure funds quickly and avoid the lengthy approval process of traditional loans.
In this guide, we’ll cover everything you need to know about hard money lending in Miami. We’ll explain what hard money loans are, their costs, and their benefits. Whether you’re flipping houses, investing in rental properties, or dealing with foreclosure, we’ll help you determine if working with a hard money lender is the right choice for your real estate goals.
Editor’s note: This post is for educational purposes and is not intended to be construed as financial advice. HomeLight always encourages you to consult your own advisor.
What is a hard money lender?
A hard money lender is a private individual or company that offers short-term loans secured by real estate. Unlike traditional lenders, who focus oh a borrower’s credit score and income, hard money lenders in Miami place more importance on the value of the property. They typically work with real estate investors, including house flippers and those purchasing rental properties, who need quick and flexible financing.
Hard money lenders determine loan amounts based on the after-repair value (ARV) of the property, which is the estimated worth of the property after renovations and repairs. They usually lend a percentage of the ARV to make sure the investment remains profitable and secure.
These loans often come with higher interest rates, ranging from 8% to 15%, and shorter repayment terms, typically 6 to 24 months. Costs can include origination fees, closing costs, and points. If a borrower fails to repay a hard money loan, the lender can seize the property to recoup their investment.
How does a hard money loan work?
If you’re a real estate investor searching for a financing option with speed and flexibility, hard money lenders in Miami could be the solution you need. Here’s a breakdown of how hard money loans work:
