What should I prepare before applying for hard money in Florida?

One PDF package: purchase contract, three sold comps, line-item scope with 10%–15% contingency, LLC docs, investor insurance quote, and written exit (resale pro forma or DSCR lease plan). Complete files close in 7–14 business days on qualified non-owner-occupied deals.

How do hard money draws work during a Florida rehab?

Holdback releases on inspection milestones — rough-in, drywall, CO. Submit draw requests 48 hours before completion; plan 3–5 business days per release after inspection.

Does Jaken Finance Group hard money require owner occupancy in Florida?

No — Jaken Finance Group finances non-owner-occupied investment property only, in Florida and all 50 states. Owner-occupied purchases are outside program scope.

Blog

5 Tips to Handle the Hard Money Lending Process in Florida

Published June 12, 2026 · Updated July 18, 2026

By Jason Taken · Principal, Jaken Finance Group

File prep, draw rhythm, exit planning, and term-sheet review for Florida flips — 8.99%–13.5% IO bridge on non-owner-occupied investment property nationwide.

Florida investors closing distressed non-owner-occupied deals face ** hurricane-season insurance**, code-enforcement timelines, and competition from cash buyers — all of which reward a clean hard money file and disciplined draw rhythm. Jaken Finance Group underwrites qualified bridge files at 8.99%–13.5% interest-only nationwide, including Florida. Permanent hold exits move to DSCR at 5.75%–10.5% when the asset stabilizes. These tips apply to any qualified investment-property bridge — not a generic checklist, but the operational habits that keep 7–14 business day closes and draw schedules on track.

Tip 1 — Submit one complete PDF package

Underwriters queue complete files ahead of partial submissions. Before LOI, assemble:

Document	Purpose
Purchase contract / LOI	Price, timeline, assignment terms
Sold comps (3+)	ARV support within 0.5 mi
Scope + bids	LTC, draw schedule, 10%–15% contingency
Entity docs	LLC OA, EIN, certificate of good standing
Exit letter / pro forma	Resale spread or DSCR path
Insurance quote	Investor/landlord — not owner-occ HO-3
Liquidity statement	Two months IO reserve minimum

What is hard money · Hard money application process · Checklist for evaluating proposals.

Florida-specific add-ons when relevant:

Wind/hurricane coverage quote — standard landlord policies may exclude coastal wind
Flood determination on FEMA zones — affects insurance and resale disclosure
Code violation status from municipality — open violations go in scope

Hard money for code violations · Florida hard money programs.

Incomplete packages miss the 7–14 day bridge window — by the time comps arrive, the contract has expired or the seller accepted cash.

Tip 2 — Read the term sheet before you waive inspection

Hard money is business-purpose bridge debt — not a 30-year owner-occupied mortgage. Verify these line items on every term sheet:

Term sheet item	What to confirm
Rate	8.99%–13.5% IO — note exact rate and floor
LTC / ARV caps	Matches your pro forma cash to close
Term + extensions	Base term, extension fee, max months
Draw schedule	Milestones aligned to GC payment rhythm
Prepayment	No penalty on flip exit
Entity vesting	LLC name matches operating agreement
Guaranty scope	Understand recourse terms

Hard money vs conventional · Demystifying hard money approval.

Florida investors occasionally confuse hard money with private seller financing or subject-to structures — the term sheet should clearly state lien position, interest rate, and maturity date on a non-owner-occupied investment note.

Tip 3 — Pre-negotiate your exit before close

Bridge without exit is indefinite IO carry at 8.99%–13.5%. Document one of these paths at submission:

Exit	Requirements	Next product
Resale	ARV comps, ~8% sale cost budget, 4–9 mo timeline	Payoff from proceeds
DSCR refi	Lease plan, DSCR ≥1.0, seasoning	5.75%–10.5% permanent
Wholesale assignment	End-buyer capacity, assignment terms	Payoff at assignment close

Using hard money to invest · Hard money buy-and-hold strategy · DSCR hub.

Pre-qualify the DSCR desk before you close bridge if refi is the plan — confirm seasoning (6–12 months from note date), lease term minimum, and appraisal ordering timeline. A rehab that finishes on schedule but misses refi by 90 days adds $4,000–$6,000 in IO at typical note sizes.

Tip 4 — Run draw rhythm like a production schedule

Rehab holdbacks release on inspection milestones, not when the GC asks. Operational habits that prevent idle weeks:

Habit	Timing
Submit draw request	48 hours before milestone completion
GC site prep for inspector	Day before inspection
Respond to inspector questions	Within 24 hours
Change orders	Written approval before work starts
Weekly GC check-in	Aligned to draw calendar

Fix and flip draw process · Fix and flip calculator.

Plan 3–5 business days per draw after inspection. Florida humidity and permit backlogs routinely add 1–2 weeks to rough-in — build slack into the schedule, not into the lender timeline without an extension negotiated at origination.

Extension and IO reserve checklist

Task	Timing
Extension terms at origination	Fee + max months in writing
IO reserve	3–6 months at note rate
Draw 48 hrs before milestone	Avoid GC idle time
Final draw at CO	Release remaining holdback

Each idle week on a $200K note at 11% IO burns roughly $423 — four idle weeks equals $1,692 off spread with zero ARV progress.

Tip 5 — Model downside before you lock scope

Florida flip economics shift with insurance spikes, ARV softening, and carry extensions. Stress-test before LOI:

Base case: $185K purchase + $40K rehab = $225K all-in. ARV $290K. 90% LTC → $202,500 at 10.5% IO ≈ $1,772/mo over 6 months ≈ $10,632 carry.

Line	Base ARV	ARV −10%
ARV	$290,000	$261,000
Sale costs (~8%)	−$23,200	−$20,880
Net sale	$266,800	$240,120
All-in basis	−$225,000	−$225,000
Carry + closing	−$13,000	−$13,000
Spread (pre-tax)	~$28,800	~$2,120

At ARV −10%, the deal survives but margin collapses — one extra month of carry or a $8K scope overrun turns it negative. Hard money loan mistakes to avoid · Mistakes when borrowing hard money.

Add +1 month carry and +10% scope overrun to every pro forma before you commit — if the deal only works at base-case ARV with zero slippage, renegotiate purchase price or pass.

Worked example — Florida SFR flip file

Property: 3/2 SFR, Orange County — purchase $210,000, rehab $38,000, ARV $278,000 from three sold comps within 0.4 mi.

Stage	Action	Timeline
Day 0	Complete PDF submitted	—
Day 3	LOI issued — 10.25% IO, 88% LTC	—
Day 10	Close — note $218,240	Month 0
Month 2	Draw 1 — rough-in	$14,000 released
Month 3	Draw 2 — drywall / finishes	$16,000 released
Month 4	Final draw — CO	$8,000 released
Month 5	Listed	—
Month 6	Closed sale — payoff bridge	—

Total IO ≈ 6 × $1,864 = $11,184. Net spread after 8% sale costs and basis ≈ $24,000 pre-tax — viable because downside was modeled at LOI.

Fix and flip Florida · Benefits of hard money for flipping.

Common file mistakes that stall Florida deals

Pitfall	Fix before LOI
ARV from actives only	Three sold comps on matching product
Seller tax on pro forma	Pull investor tax bill from county appraiser
Scope without contingency	10%–15% line-item contingency
Verbal lease on DSCR exit	Executed lease + deposit before appraisal
Owner-occ insurance quote	Investor/landlord policy with wind coverage
Assignment without lender approval	Confirm assignability in term sheet

Jaken Finance Group finances non-owner-occupied investment property only — owner-occupied files are outside program scope regardless of state.

Hard money vs bank — why Florida investors choose bridge

Factor	Hard money bridge	Bank
Rate	8.99%–13.5% IO	Lower, amortizing
Close	7–14 business days	30–45+ days
Distressed collateral	Yes — with scope	Rarely
Entity vesting	LLC standard	Personal guarantee common
Property type	Non-owner-occupied	Varies

DSCR vs hard money vs conventional · Hard money loan statistics 2026.

When to skip hard money in Florida

Stabilized leased SFR — start with DSCR at 5.75%–10.5%
Owner-occupied primary — outside Jaken Finance Group program scope
Spread under 10% gross after 8% sale costs and carry
No GC or scope — draws cannot release without milestones
HOA rental cap blocks exit — verify before close on condo/townhome

Hard money for condos and townhomes.