Did you know that 1,000 people move to Florida every day? Not only does Florida seem to be immune to the issues plaguing the rest of the country and their housing shortages, it is actually seeing growth. And no wonder! With sunny weather and rich culture, it’s a great place to live.
But how can you capitalize on that growth? If you need access to capital, hard money lenders can be a useful option, providing quick access to funds for your next real estate investment. But finding the right private lender can be a challenge, especially in a competitive market like Florida. That’s why I’ve gone through the trouble of compiling the best hard money lenders in Florida so that you don’t have to (you can thank me later).
1. Loan Mountain Capital
Loan Mountain Capital earns the first spot in my list because they just get it–timing is crucial in real estate investing and they don’t play around. They claim a 30 minute pre-approval and a 24-hour close. In my experience, while we did not close in the 24 hour period they advertise, it was by the far the most streamlined experience out of all the hard money lenders that I’ve had the displeasure of working with.
This comes as no surprise considering that Loan Mountain was founded by real estate investors with over 35 years of experience. They are headquartered in Charlotte, NC but have specialized in helping builders and investors throughout the South East, including Florida. Oh, and did I mention that they are relationship focused? It’s a joy to work with people who don’t see you as another client, but rather as a business partner.
What makes them the best hard money lender in Florida?
There’s no question that Loan Mountain Capital is the quickest and most reliable hard money lender. If speed is important to you, you’d be hard pressed to find a better option.
- Quick, reliable draw schedules
- 30 minute pre-approval, 24 hour close
- No Junk Fees
- In-house servicing
- No prior experience needed
- No credit score requirements
Loan Types and Terms
All hard loans can be either single family or multifamily (2-6 units) and offer competitive rates. The loan options offered by Loan Mountain Capital include:
- Fix and Flip: No appraisal needed. 6-12 months terms.
- New Construction Loans: 9-18 month terms.
- Rental Loans: No appraisal needed. Up to 30-year terms.
Things to keep in mind:
- Don’t expect the lowest rates. Their interest rates range between 11.8-12% depending on the project’s scope and potential. There are cheaper alternatives out there, but generally speaking, those private lenders find other ways to minimize their risk (like finding any excuse to delay your draw).
- No credit requirements BUT having good credit has its benefits. If you have a good credit score you’re more likely to successfully negotiate better terms.
2.Renovo Financial
Renovo earned second place because they have local experience, positive reviews, and a solid track record. Founded over 13 years ago in Chicago Illinois, Renovo has made over $6 Billion in originations and has expanded to several states across the country, including Florida. Since Renovo’s local lenders are on-site and in-person, you get the benefit of partnering with real estate experts in the local market.
Why you should consider them.
- In-house servicing, so no third parties involved.
- Fast access to draws
- C3 Fund: provide capital to BIPOC and women small business owners to rehab properties in low to moderate income neighborhoods. Definitely check it out if you qualify.
Loan terms and rates
All hard loans offered by Renovo are 1-4 units residential and multifamily up to 30 units.
- Fix and Flip, Fix to Rent, and Bridge only: 12-18 months, $100k to $2M loans.
- Rental Property Loans: 30 Year Fixed, $100k to $3M ($3M+ Case by Case). Purchase, Rate & Term Refinance, and Cash-Out Refinance are all accepted.
- New construction: 12 –18 Months and multifamily up to 24 months, $100k to $2M ($2M+ Case by Case).
Word of caution!
Unlike most other hard money lenders on this list, Renovo does not share their origination fees, points, or LTV and LTC ratios. This is a red flag for two reasons: either they squeeze junk fees before closing or their rates are not as competitive as they claim.
3. Center Street Lending
Center Street Lending is a private money portfolio lender that provides business-purpose loans for single and multi-family investments. Their management team has been involved in real estate financing since 1992, financing billions of dollars of residential real estate.
Center Street Lending earned third place because of their vast loan offerings, transparency with fees and rates, and solid track record. Some of the hard loans they offer include: fix and flip, fix and rent, buy and rent, Buy, tear down and build, new construction loans, and bridge loans.
Loan terms and rates.
All properties must be non-owner occupied. You need prior experience, minimum of 650 FICO score, 2 months of recent bank statements and a background check.
- Fix and flip loans: up to 85% LTC/LTV, 6-24 months, $150k up to $10M, $250k to $10MM+ non-owner occupied property.
- Short Term Rental Property Loans: 6-24 months terms, 60% cash out available. $150k up to $100M. Fixed/interest only payments, Short term rental friendly (airbnb and vrbo).
- Bridge Loans: 75% LTV, 100% construction costs, 60% cash out, 6-24 months, $100k up to $10MM. As-is appraisal required.
- Construction Loans: 80% LTC, 65% ARV, 6-24 months, $250K to $10M. Access to expert advice. 9-18 month loan term. 680 minimum FICO score,
- Long Term Rental Loans: 80% LTC/LTV, 30 years, $100K up to $2.5M.
Things to keep in mind.
- Strict Requirements: 650+ FICO score, prior experience, background check, 2 months of recent bank statements.
- Deep Pockets: with loans of up to $100M, they are the best option for larger projects and experienced investors.
- Not the quickest close: given all their requirements, their 14 day close (optimistically) is to be expected. Not the slowest, but if you are in a hurry, I suggest you stick with Loan Mountain Capital.
4. I Fund Cities
If you’re fond of profane language and no-nonsense marketing, then you’re gonna be fond of I Fund Cities. The company started in 20018 in Philadelphia and have since originated more than 2,600 loans totalling over 1.21 Billion in total asset transaction value.
The alternative marketing approach is not the only interesting thing about them:
Loan Terms and Rates
- Fix and flip: rates as low as 10% and 7.25% (rental), up to 85% LTC or 70% LTV. Up to 80% LTV of purchase price, 100% rehab financing, 6-24 month (30 year rental).
- Multifamily Loans: rates as low as 10% (7.25% rental), 5 to 30 units (5-12 rental), up to 70% LTV on purchase only, up to 90% LTC on purchase and renovation, loans up to $10M, 6 -24 month terms (30 year rental).
- New construction: rates at 10%, 1-30 units, up to 82.5% LTC, up to 80% LTV, 100% construction financing, loans up to $10M.
- Build to rent: rates as low as 10% (build) and 7.25% (rental), up to 90% LTC on project, up to 80% LTV on purchase, 100% construction financing.
Things to keep in mind
They don’t fund properties that are designated as “rural” or commercial-mixed-use. As the borrower, you are not able to live in the property. However, a family member can occupy your property.
- Points: range from 1%-4% based on real estate asset,iInvestor experience, investor credit score, and investor liquidity
- Other fees: they charge a one-time application fee of $200 for your first deal, $1850 for legal documents, $250 of draw inspections, and appraisal.
- Prepayment penalties: some loan types do have prepayment penalties, but others do not. Give them a call to confirm your case.
5. Temple View Capital
Temple View Capital is a private portfolio lending company that offers flexible financing for investment property loans for investors in residential real estate. It was founded by entrepreneurs with more than 20 years of residential mortgage and real estate investment experience. They stand out because of their no-nonsense underwriting process and progressive rates – the more projects you complete, the better your terms and rates.
- Rental Loans: up to 80% LTV, $100K – 2M, 0.75x Minimum DSCR, qualify using interest-only payments, short-term rentals allowed
- Rehab Loans: up to 90% acquisition LTV, $75K – $4M, advanced rehab draws, monthly payments rolled into the loan.
- Ground Up Loans: up to 90% LTC and 75% LTARV, $100K – $4M, 12-24 months, non-Dutch interest, escrow payments, survey required
- Bridge Loans: up to 80% LTV, $75K – $4M, 6-24 months, escrow payments, no prepayment penalty, no red tape, no income, no reserves, no asset verification (restrictions apply)
Why consider Temple View Capital?
They have a solid reputation and track record, very upfront about the points and rates. Great customer service and no hidden (junk) fees–you only have to pay for the appraisal when required.
Things to consider
- FICO score: credit is taken into consideration as part of our underwriting process.
- Businesses only: Temple View lends only to business entities (LLC’s, C Corps, etc.).
- Draw schedule: it’s either advanced (they advance construction funds prior to work being completed) or reimbursement (they reimburse construction funds once work has been completed).
Closing the Deal
Finding the right hard money lender is like choosing the right dentist–even the best one is still likely to suck. However, like with the dentist, there are some steps you can take to improve your experience (brush your teeth, people).
First, if you have little to no experience or you have a poor FICO score, we recommend choosing one of the relationship lenders, such as Loan Mountain Capital or Renovo. Second, if speed and reliable draw schedules is a priority, Loan Mountain Capital is by far the best option. Finally, if you are an experienced investor working on larger projects, both I Fund Cities and Center Street Lending have deeper pockets for the ambitious among you.
Hopefully, you are now better equipped to find the right lender for you. Now get out there and close the deal. Good Luck!
