Miami real estate moves at a pace that conventional banks simply can't support. Off-market deals, auction properties, estate sales, and motivated sellers all require capital that can close in days. That's hard money. Used correctly, it's the competitive advantage that separates active investors from those sitting on the sideline waiting for a conventional loan to close.
How Hard Money Lending Works in Miami
A hard money lender in Miami evaluates your deal based on three things: the property's as-is value, the after-repair value (ARV), and your experience as a borrower. LTV on as-is value typically runs 65–80%. LTC (loan-to-cost) on fix & flip products runs up to 90%. The approval process is fast — most experienced borrowers can get a term sheet within 24–48 hours of submitting a loan application.
Miami-Specific Considerations
Title in Miami-Dade often involves properties with complicated ownership histories — multiple heirs, LLC chains, trust-owned properties. A clean title search is essential before any acquisition. Condo association documents matter for financing: some hard money lenders won't lend on condos with active litigation or significant deferred maintenance. SFR in Miami-Dade and Broward is more straightforward.
Costs to Expect
Hard money rates in Miami typically run 9–12% per year on a short-term note. Origination is 1–3 points. Expect an appraisal fee ($400–$600), inspection fees per draw ($150–$250), and a standard closing package from a title company. All-in, factor 2–3% of the loan amount in transaction costs at origination.
