Why Hard Money Lenders Use ARV
Hard money lenders care about exit, not entry. They'll lend 65–75% of After-Repair-Value, knowing they need a 25–35% cushion to recover principal if the borrower defaults. That structure protects the lender but also disciplines the borrower — overpay for the property or under-estimate ARV and the deal doesn't work.
The 70% Rule
The classic flipper rule: Maximum All-In ≤ 70% of ARV − Rehab Cost. If ARV is $850K and rehab is $110K, max purchase is $485K. Buy above that and the deal is mathematically marginal at best.
Florida Specific
Florida's 7%-ish selling cost (commission + doc stamps + title) is meaningfully higher than other states. Always bake it into your gross profit calc — never assume net = ARV minus loan payoff.
Pair with the FL Doc Stamp and Closing Costs.
Rate & Lending DisclosureInterest rates, loan terms, leverage levels, and pricing references shown on this page are estimates only, based on current Florida commercial real estate market conditions and lender feedback as of the page's last update. They are
not commitments to lend, are not loan approvals or pre-qualifications, and do not guarantee any specific loan terms or that financing will be available to any particular borrower or property. Actual interest rates, fees, leverage, amortization, prepayment terms, and other loan terms depend on borrower qualifications (credit, net worth, liquidity, experience), property characteristics, lender-specific underwriting requirements, third-party reports, and market conditions at the time of application. All loans are subject to lender credit approval, underwriting, and applicable federal, state, and local lending regulations. Linton Global Solutions is a Florida-licensed commercial real estate brokerage (FL Broker #BK703722); it is
not a lender. Financing is sourced through third-party lender relationships, and final loan terms are determined by the originating lender. This page does not constitute consumer credit advertising under Federal Reserve Board
Regulation Z (12 CFR Part 1026) and is intended for informational purposes only for commercial real estate professionals, investors, and owners considering commercial mortgage financing. Past loan terms or transactions do not guarantee future results.