Holdback
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
A holdback is a portion of loan proceeds or purchase price that is withheld at closing and released later once specified conditions are satisfied.
Holdbacks let a deal close before everything is finished. The lender or buyer keeps money aside until the repair is done, the lease is signed or the numbers improve, and both sides get protection.
Common Types
- Repair or capital holdback: released as work is completed and inspected.
- Leasing holdback: released when new leases are signed and tenants pay.
- Performance holdback: released when NOI or DSCR targets are met. See good news money.
- Purchase price holdback: part of the price kept in escrow for post-closing issues.
Terms to Pin Down
The release conditions, documentation required, inspection process, deadlines, whether partial draws are allowed, and what happens to unreleased funds. Fund your plan as if the holdback arrives late.
A Hypothetical Sanford Example
A buyer acquires a flex industrial building near Sanford that needs a new roof. In this example, the lender holds back the roof cost from the loan and releases it in two draws after inspections. The buyer pays the roofer between draws from its own cash. Hypothetical scenario.
From the Desk
A holdback is real money that isn't yours yet. Plan your cash as if it shows up late.
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 Holdback Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Plan Sources and Uses
Account for holdbacks in your capital plan.
Frequently Asked Questions
What is a holdback?
Money withheld at closing and released when conditions are met.
What are common holdback types?
Repair, leasing, performance and purchase price holdbacks.
How is a repair holdback released?
Usually in draws after completed work is inspected.
What if conditions aren't met?
The funds may be cancelled or used to pay down the loan.
Does a holdback reduce cash at closing?
Yes; plan equity accordingly.
Article Summary
A holdback keeps money in reserve until repairs, leasing or performance targets are met. Pin down release terms before closing.
Key Takeaways
- ✓Withheld at closing.
- ✓Released on conditions.
- ✓Repair, leasing or performance.
- ✓Draws need documentation.
- ✓Plan cash for late release.
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 a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
Ready to Talk About Your Holdback Deal?
Get a free consultation with Michael R. Linton — 39 years of CRE experience. Zero pressure.
Schedule a Free ConsultationWorks Cited
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 4, 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.