When Hard Money Is the Right Answer
- Distressed Acquisitions — Where speed of close and condition flexibility are essential
- Foreclosure Auction Purchases — Where cash-equivalent close is required
- Off-Market Opportunities with Tight Timelines — Where conventional financing cannot close fast enough
- Story Credit Situations — Where borrower credit, recent bankruptcy, or other complications prevent conventional underwriting
- Bridge to Conventional Refinance — Acquire with hard money, stabilize, refinance into conventional debt
- Property Condition Issues — Where conventional lenders won't engage
When Hard Money Is the Wrong Answer
- Long-term hold strategy without a clear refinance plan
- Deals that don't actually generate enough cash flow to service hard money debt
- Borrower with conventional credit who just hasn't shopped multiple lenders
- Situations where a bridge loan would work and is materially cheaper
The Practical Realities
Hard money is expensive. A 12% interest rate on a 24-month interest-only loan plus 3 points origination is materially more expensive than agency, CMBS, life company, SBA, or even bridge financing. The exit strategy matters more than the going-in pricing. Underwrite the takeout — stabilization to bridge or permanent, sale at value-add completion, or other clear exit — and the cost of capital becomes acceptable. Without a realistic takeout, hard money is a path to losing the property.
Hard Money vs. Bridge Loan Comparison
| Feature | Bridge Loan | Hard Money |
|---|---|---|
| Rate | 7.5–9.5% | 10–14% |
| Term | 12–36 months | 12–24 months |
| LTV | 70–80% | 60–70% |
| Recourse | Often limited | Often required |
| Speed of Close | 30–60 days | 7–21 days possible |
| Credit Sensitivity | Sensitive | Less sensitive |
| Property Condition | Solid bones required | Can accept distress |
| Best For | Value-add, lease-up | Distressed, fast close, story credit |
Frequently Asked Questions
What is a hard money loan?
A hard money loan is short-term asset-based commercial real estate debt provided by private lenders rather than banks or institutional lenders. Hard money lenders focus on the property's value and exit strategy rather than the borrower's income, credit, and debt-to-income — making hard money useful for distressed acquisitions, fast closes, story credit borrowers, and situations where conventional financing isn't available.
What are typical hard money loan terms in Florida?
Hard money: 10–14% interest rate, 12–24 month term, 60–70% LTV (based on as-is or after-repair value depending on lender), 1–4 points origination, often interest-only payments, occasionally requires significant guarantor backstop. Fast close — 7–21 days possible for clean deals.
When does hard money make sense vs. a bridge loan?
Bridge loans are institutionally-priced short-term debt (7.5–9.5%) for value-add and lease-up plays where the property has solid bones and a clear stabilization path. Hard money is more expensive but accepts more story — distressed condition, borrower credit issues, fast close requirements, or unconventional property types. The line between bridge and hard money has blurred but hard money generally costs 200–400 bps more.
Is hard money risky?
Hard money is expensive — typically 10–14% interest rates — so it must be used purposefully with a clear, near-term exit (sale or refinance). When used for true bridge situations with realistic exit timelines, hard money is appropriate and useful. When used to finance deals that don't actually pencil at hard money cost of capital, it can be financially destructive. Underwrite the takeout, not just the going-in.
Who can help me source a hard money loan in Florida?
Michael R. Linton at Linton Global Solutions maintains direct relationships across the Florida hard money / private capital lender network. We screen for deal-appropriate lenders, structure transactions efficiently, and ensure the takeout strategy is realistic before committing to hard money cost of capital. Call (312) 612-1031.
Article Summary
Florida hard money loans are short-term, asset-based, private capital financing — typically 10–14% interest, 12–24 month terms, 60–70% LTV, with close timelines as short as 7–21 days. Hard money is appropriate for distressed acquisitions, foreclosure auction purchases, off-market opportunities with tight timelines, story credit situations, and bridge-to-conventional-refinance strategies. The exit strategy matters more than the going-in pricing — without a realistic takeout (stabilization to bridge/perm, sale at value-add completion), hard money becomes financially destructive. Bridge loans are typically 200–400 bps cheaper but require solid property bones and stabilization paths. Michael R. Linton maintains direct relationships across the Florida hard money lender network and screens for deal-appropriate placement.
Key Takeaways
- ✓Hard money: 10–14% rate, 12–24 month term, 60–70% LTV, 7–21 day close possible.
- ✓Best for distressed, fast-close, story credit, and bridge-to-refinance situations.
- ✓Bridge loans are typically 200–400 bps cheaper for solid value-add deals.
- ✓Exit strategy matters more than going-in pricing — underwrite the takeout.
- ✓Hard money is appropriate for foreclosure auction and off-market with tight timelines.
- ✓Not appropriate for long-term hold without clear refinance plan.
- ✓Florida has a deep hard money lender network across deal sizes.
- ✓Michael R. Linton screens for deal-appropriate hard money placement.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving 500+ banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- American Association of Private Lenders. "Private Lending Industry Resources." AAPL, https://aaplonline.com/. Accessed Jun 6, 2026.
- Mortgage Bankers Association. "Commercial & Multifamily Lending Research." MBA, https://www.mba.org/. Accessed Jun 6, 2026.
- Federal Reserve Bank of New York. "Commercial Real Estate Lending Statistics." NY Fed, https://www.newyorkfed.org/. Accessed Jun 6, 2026.
- NAREIT. "Mortgage REIT Industry Research." NAREIT, https://www.reit.com/. Accessed Jun 6, 2026.
- Federal Reserve Bank of St. Louis. "Private Capital and Real Estate Lending Data." FRED Economic Data, https://fred.stlouisfed.org/. Accessed Jun 6, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.
Interest 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.