Last Updated on March 18, 2021

Hard money lending is alternative to formal lending sources and warrants those who borrow to use their investment (mostly property) as collateral on the loan. While several lending sources rely on a borrower’s credit history, hard money lenders rely on the specific asset involved.

Requirements For Becoming a Hard Money Lender in Florida

Hard money lending as an investment opportunity in Florida is a special chance for businessmen with enough capital to invest. However, if you are making any financial decision it is vital to consider due diligence and predetermine any possible risks. If you wish to become a hard money lender in Florida residential, you should put the following factors to consideration:

  1. Company name and contacts
  2. Business legal structure
  3. Area market research
  4. Business plan
  5. Gather financial projections
  6. Set up your business
  7. Conclusion

Company name and contacts

You should start by naming your business and acquiring a corporate address, fax, and phone number. These are important regardless of how you lawfully structure your business because your legal papers will require a corporate address. Plus, if people want to find a hard money lender in South Florida, they need a valid business name and contact information. To reserve your company name, contact the secretary of state’s office in North Florida.

Business legal structure

You need a professional lawyer to determine the legal structure of your hard money lending business in Florida. Your attorney should be an expert in investments and real estate. He should also have experience serving hard money lenders in Florida residential. Discuss with your lawyer the proper business type, tax issues, licensing and various legal matters concerning residential and commercial lending.

Area market research

You must focus on your particular investment area. Talk to hard money lenders in Florida residential for both positive and negative feedback. You also focus on what you understand and discover what the markets are doing in your space. For instance, find possible hard money lenders interest rates in Florida and use the information to predict the possible input and output required for the business. Consequently, you would want to know the main challenges faced by hard money lenders in Florida.

Business plan

Draft your business plan and underwriting standards based on the types of lending you plan to do. This means you develop items to value parameters, investment amounts, interest rates charged, property types, etc. Your business plan should be designed to guide and keep you on track.

Gather financial projections

Whether you are investing your own money or a loan, you need to know the break-even points, projected monthly and annual income as per interest rates charged, monthly expenditures, legal fees, and other expenses. You will require to formulate a balance sheet, income and cash flow statements, plus a profit and loss statement. Note that hard money lenders interest rates will depend on the type of loans you offer, and the initial capital you want to invest.

Set up your business

Purchase a domain name, set up your website and launch your business. You should have the website done by an expert. Your possible clients must be in a position to access the website when search online to find hard money lenders in South Florida. Include an intake form on the site to automatically search for projects online. You must also set up your physical office in an accessible location, it becomes easy to discover that you are one of the hard money lenders in Florida.


Hard money lenders in Florida normally charge higher interest fees than traditional loans. However, they can provide borrowers with increased access to loans, and a tolerant approval process. Investors with less money at hand  and high equity in the property are likely to opt for hard money lenders for loans. Additionally, property investors at risk of foreclosure may also take up hard money loans.

Hard money lending interest rates in Florida range from eight percent to 18 percent. The interest rate relies on the loan amount, the property’s ARV and the borrower’s credit rating. A person with bad credit is charged a higher interest rate than somebody with an excellent credit rating.

Hard Money Lenders IO is a Private Lending Company located in Miami, Florida providing loans to real estate investors and entrepreneurs. We specialize in offering loans to professional real estate investors for their non-owner occupied real estate investments. We operate throughout the state of Florida & have a network of investors nationwide.
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