Hard Money Loan
A hard money loan is a short-term commercial mortgage from a private lender, sized primarily against asset value rather than borrower cash flow. Florida hard money typically: 10%–14% interest rate; 2–4 points upfront; 6–24 month term; 60%–75% LTV (or 65%–70% of After-Repair Value on rehab); cash flow underwriting minimal; closing in 7–21 days; recourse and personal guaranty standard. Used for distressed acquisition, rapid close, value-add bridge to permanent financing, and situations where traditional bank/agency timelines don't fit.
In Florida CRE financing — particularly distressed acquisition, time-sensitive 1031 closings, value-add bridge gaps, and situations where bank/agency timelines simply don't work — hard money loans provide rapid, asset-based capital that fills the gap between bridge debt and equity. Florida hard money lenders are active across multifamily, industrial, retail, hotel, and value-add transactions in the Orlando, Tampa, and I-4 corridor markets. Rates run 10–14%, points 2–4, terms 6–24 months, with 7–21 day closings on properly-prepared deals. This guide explains hard money correctly, current Florida market terms, when hard money is appropriate vs. bridge debt or seller financing, and the underwriting work Michael R. Linton's team performs to qualify hard money for Florida CRE transactions. Linton Global Solutions has direct relationships with Florida hard money lenders.
When Hard Money Is Appropriate
- Time-critical 1031 closings: exchange identification clock running and target property requires speed
- Distressed acquisition: bank-owned, special servicer, or auction acquisition with closing windows under 30 days
- Value-add bridge: property requires rehab capital before stabilization for traditional refinance
- Cash-flow disqualified properties: in-place NOI doesn't qualify for traditional debt but as-stabilized profile does
- Credit-impaired borrower: sponsor credit issues prevent agency or bank qualification
- Acquisition pre-leasing: property without sufficient leasing for stabilized debt but with clear lease-up path
- Pre-development: entitled land acquisition pending construction loan
- Recapitalization rescue: bridge between current capital structure failure and new structure
Florida Hard Money Market Profile
- Rate: 10%–14% interest-only typical; some structures with rate steps
- Points: 2–4 upfront origination points typical; sometimes higher for non-standard situations
- Term: 6–24 months typical; some structures up to 36 months
- LTV: 60–75% of as-is value typical; 65–70% of After-Repair Value (ARV) on rehab deals
- Underwriting: primarily asset-based — value, exit, sponsor experience; secondary cash flow
- Recourse: recourse and personal guaranty standard
- Closing speed: 7–21 days typical on properly-prepared deals
- Asset classes: multifamily, industrial, retail, hotel, mixed-use, land all financeable
- FL hard money lenders: regional Florida-specific lenders, national private capital, family office and HNW capital
Hard Money vs. Bridge Debt vs. Bank
- Hard money: 10–14% / 2–4 points / 6–24 months / asset-based / 7–21 day close
- Bridge debt: SOFR + 250–500 / 1–2 points / 12–36 months / cash flow underwriting / 30–60 day close
- Bank stabilized: SOFR + 175–300 fixed alternative / 5–10 year terms / cash flow underwriting / 45–90 day close
- Agency multifamily: ~6–7% fixed / 5–30 year terms / cash flow underwriting / 60–90 day close
- CMBS: ~6–7% fixed / 10-year typical / cash flow underwriting / 60–90 day close
- Exit path planning: hard money should always include defined exit to permanent financing — typically agency, CMBS, or bank refinance
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
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 real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, 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).
Why Choose Michael R. Linton and Linton Global Solutions for Your Hard Money Loan Decision?
Florida CRE sponsors choose Michael R. Linton for hard money because the difference between successful execution and a failed deal is direct lender relationships and a clean exit plan. Linton Global Solutions has active relationships across the Florida hard money lender network and structures hard money with defined exit to permanent financing. 39 years of Florida CRE transaction experience and active capital markets coverage produces hard money sized correctly and exited cleanly.
Frequently Asked Questions
What is a hard money loan in CRE?
A hard money loan is a short-term commercial mortgage from a private lender, sized primarily against asset value rather than borrower cash flow. Florida hard money typically: 10–14% interest rate; 2–4 points upfront; 6–24 month term; 60–75% LTV (or 65–70% of After-Repair Value on rehab); minimal cash flow underwriting; 7–21 day closings; recourse and personal guaranty standard. Used for distressed acquisition, rapid close, value-add bridge, and situations where bank/agency timelines don't fit.
What are current Florida hard money rates?
Current Florida hard money market: interest rate 10–14% (interest-only typical); 2–4 origination points upfront; 6–24 month term; 60–75% LTV on as-is value; 65–70% LTV on After-Repair Value (ARV) for rehab projects. Rates vary by asset class, sponsor experience, exit certainty, and current rate environment. Sophisticated Florida hard money sponsors negotiate rate steps, prepayment optionality, and extension options.
When should I use hard money vs. bridge debt?
Hard money is appropriate when: (1) closing window is under 30 days, (2) cash flow underwriting won't support traditional bridge, (3) credit issues prevent bank qualification, (4) project is pre-development or pre-stabilization. Bridge debt is preferable when: (1) cash flow supports underwriting, (2) 30–60 day timeline works, (3) lower rate (SOFR + 250–500) and points (1–2) economically meaningful, (4) longer term (12–36 months) needed. Always plan exit to permanent financing at hard money origination.
What's a typical hard money LTV?
Florida hard money LTV typically runs 60–75% of as-is value. Value-add and rehab structures often use After-Repair Value (ARV) at 65–70% LTV — meaning the loan can fund both acquisition and partial rehab against the projected post-rehab value. Sponsor equity required: typically 25–35% of project cost on as-is structure; 30–35% on ARV structure. Lower LTV available for credit-impaired sponsors or asset classes outside the lender's specialty.
Who can source Florida CRE hard money financing?
Michael R. Linton and Linton Global Solutions have direct relationships with Florida hard money lenders — regional Florida-specific lenders, national private capital, family office, and HNW capital. Active hard money placements across multifamily, industrial, retail, hotel, mixed-use, and value-add deals in Orlando, Tampa, and the I-4 corridor. 39 years of Florida CRE transaction experience produces hard money structures with defined exit to permanent financing. Call (312) 612-1031 or use the live loan quote generator.
Article Summary
Hard money loan = short-term commercial mortgage from private lender, sized primarily against asset value. FL terms typical: 10–14% rate, 2–4 points, 6–24 month term, 60–75% LTV (65–70% ARV on rehab), recourse + PG, 7–21 day close. Asset-based underwriting; cash flow underwriting minimal. Used for time-critical 1031, distressed acquisition, value-add bridge, cash-flow disqualified properties, credit-impaired sponsors, pre-development. Always plan exit to permanent financing (agency, CMBS, bank refinance) at origination.
Key Takeaways
- ✓Hard money = short-term private lender debt, asset-based underwriting.
- ✓FL profile: 10–14% rate / 2–4 points / 6–24 months / 60–75% LTV.
- ✓Closes in 7–21 days vs. 45–90 days for bank/agency.
- ✓Used for distressed, 1031 timing, value-add bridge, credit-impaired situations.
- ✓Always plan exit to permanent financing at origination.
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 (AAPL). "Private Lending Industry Standards." AAPL, https://aaplonline.com/. Accessed Jul 20, 2026.
- Scotsman Guide. "Private Money Lender Reports." Scotsman Guide, https://www.scotsmanguide.com/. Accessed Jul 20, 2026.
- Mortgage Bankers Association. "CRE Origination Trends." MBA, https://www.mba.org/. Accessed Jul 20, 2026.
- Florida Office of Financial Regulation. "FL Private Lender Compliance." FL OFR, https://www.flofr.gov/. Accessed Jul 20, 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.