Michigan hard money is asset-based bridge capital: decisions hinge on the deal and the exit, not on W-2 income. From Detroit to Grand Rapids, it funds the deals that need to close before a bank could even order an appraisal.
When Michigan deals need hard money
| Deal type | Why speed matters |
|---|---|
| Courthouse auction in Detroit | Proof of funds and a 7–10 business day close beat financed buyers |
| Non-warrantable or distressed collateral | Asset-based decision when agencies decline |
| Gap between purchase and permanent debt | Short-term bridge until refi or resale |
| BRRRR acquisition + rehab start | Bridge to Michigan DSCR after lease-up |
| Probate or estate sale | Certainty of capital when title is messy |
What Michigan investors use hard money for
- Bridge between purchase and permanent financing or sale
- Distressed / non-warrantable assets a conventional lender will not touch
- BRRRR starts — acquire and rehab, then exit to Michigan DSCR
- Estate and probate acquisitions in Detroit that need certainty of funds
Why speed matters here: Michigan foreclosure is non-judicial — foreclosure by advertisement is fast, with a statutory redemption period. Asset-based capital lets you act on that inventory before financed buyers can.
Michigan ARV bands and leverage caps
Investor ARV on Detroit and Grand Rapids sold comps commonly runs $145,000 – $235,000 with $20,000 – $52,000 rehab scopes. Detroit title and water shutoff liens — quiet title before hard money close.
Michigan state income tax (flat 4.25%) affects flip and hold exits — structure entity and timing with your CPA. Property tax at ~1.38% (uncapping at transfer (Proposal A) raises the tax line for new investor owners) flows into carry on every month you hold bridge capital.
Michigan hard money terms (2026)
| Term | Michigan range |
|---|---|
| Scope risk | Detroit title and water shutoff liens — quiet title before hard money close |
| Leverage | Detroit flips: up to 100% of cost, capped at 75% ARV. Bridge leverage is 90% of purchase. |
| Rate | Interest-only 8.99%–13.5% + points |
| Term | Flip term 6–12 months. Bridge term 12–24 months. |
| Close | 7–10 business days after a Detroit or Grand Rapids file is complete |
| Basis | Asset-based; $125,000 – $285,000 typical ARV |
Michigan metros we fund
| Metro | Typical basis | Rent band | On-the-ground notes |
|---|---|---|---|
| Detroit | $90K–$220K | $1,050–$1,500 | rental registration required; panel and HVAC draws sequence first — Detroit metro hub |
| Grand Rapids | $240K–$340K | $1,500–$2,000 | appreciation market with diverse employment |
Michigan levies state income tax (flat 4.25%); structure the hold or flip exit with that in mind.
Diligence before you fund in Michigan
Underwrite local risk honestly in Michigan:
- Lead and panel/HVAC age in Detroit stock
- Winterization risk on vacant rehabs
What we need to issue a Michigan term sheet
- Comps or a desktop valuation toward ARV
- A credible exit — resale comps or projected rent
- Purchase contract or auction confirmation
- Proof of funds for down payment and reserves
- Entity documents (LLC operating agreement, EIN) for vesting
Clean documents on these points are what compress a Michigan closing to days, not weeks.
Recent Michigan deal
Detroit duplex rehab funded at 88% LTC with panel and HVAC draws before kitchen finish. The pattern repeats: speed on acquisition, a clean scope, and a defined exit.
BRRRR pathway: hard money → DSCR in Michigan
The compounding play in Michigan is not the flip check — it is recycling capital. Acquire distressed stock in Detroit with hard money, rehab on draws, place a tenant at market rent, then exit to Michigan DSCR when the ratio clears at target LTV.
Detroit and Grand Rapids auction timelines reward sponsors who can close in days, then pivot to Michigan DSCR once rent is documented.
Define the exit before you borrow
Hard money is a bridge in Detroit and Grand Rapids, not a destination. Underwrite one of two exits before you draw:
- Detroit and Grand Rapids resale — fix and flip Michigan when spread clears
- Detroit and Grand Rapids hold — Michigan DSCR on executed lease and investor tax
Michigan DIFS regulates mortgage activity; Detroit rental registration required for lease-up.
When hard money is the wrong tool in Detroit and Grand Rapids
- Stabilized Detroit and Grand Rapids rental with executed leases — use DSCR Michigan
- Owner-occupied strategy — business-purpose bridge does not apply
- No credible exit — hard money is a bridge; underwrite the resale or refinance exit before you borrow
Michigan hard money FAQ
What does Michigan hard money cover?
Business-purpose acquisition and rehab on Detroit and Grand Rapids SFR and small multifamily — sized to $145,000 – $235,000 sold comps, not listing aspirational pricing.
What diligence is Michigan-specific?
Detroit title and water shutoff liens — quiet title before hard money close.
What is the typical Michigan exit?
Resale via fix and flip Detroit and Grand Rapids or stabilize into Michigan DSCR when stabilized market rent is reflected in the rent roll.
Michigan bridge acquisition checklist
Detroit title and water shutoff liens — quiet title before hard money close.
Size Michigan bridge exposure to $145,000 – $235,000 sold-comp discipline on Detroit and Grand Rapids acquisitions. Scope rehab to $20,000 – $52,000 bands on qualified files; front-load mechanical and rough-in draws so inspections are not wasted on cosmetic passes. Permanent exit: Michigan DSCR.
Advertisement, then a redemption clock that depends on the property
Michigan allows foreclosure by advertisement when MCL 600.3204 is met. There must be a default that makes the power of sale operative. A lawsuit to collect the debt must not be pending, with stated exceptions for a receiver and for the uniform assignment of rents. The mortgage with the power of sale must be recorded. The party foreclosing must own the debt, own an interest in it, or be the servicer.
MCL 600.3208 requires notice published for four successive weeks, at least once each week, in a newspaper in the county. If that county has no paper, use an adjacent county. Within 15 days after the first publication, post a true copy in a conspicuous place on the premises.
The sale is not the end of the borrower’s rights. MCL 600.3240 sets different redemption periods. Read the one that matches the collateral.
- Commercial or industrial property, or multifamily housing of more than four units, on a mortgage executed on or after January 1, 1965: 6 months from the sale.
- Residential property of four units or fewer, when the amount claimed due on the notice date is more than 66-2/3% of the original debt: 6 months.
- Residential property of four units or fewer that is abandoned under section 3241: 1 month.
- Property abandoned under section 3241a: 30 days, or until the 3241a(c) notice window ends, whichever is later.
- Property used for agricultural purposes: 1 year from the sale.
- If none of those subsections apply: 1 year from the sale.
Subsections (7), (8), (11), and (12) are each subject to section 3238. This note does not restate that section. A Detroit duplex is not automatically a six-month redemption. The six-month residential clock in subsection (8) applies only when the claimed balance clears that two-thirds test. Otherwise the catch-all is a year, unless another subsection fits. Jaken Finance Group does not treat a sheriff’s deed as clean resale title on the morning of the auction. Budget the redemption window before you schedule a retail buyer.
Wayne, Kent, and Oakland asking prices
Wayne County’s median listing price was $163,875 in September 2026, from $159,950 in September 2025. Not seasonally adjusted. Source: FRED MEDLISPRI26163. Kent County, which includes Grand Rapids, listed at $380,500, from $386,925 (MEDLISPRI26081). Oakland County listed at $400,000, from $429,950 (MEDLISPRI26125).
The Michigan all-transactions house price index was 584.90 in the second quarter of 2026, up 4.6% from 559.18. Not seasonally adjusted. Base 1980:Q1 = 100. Source: FRED MISTHPI. State prices rose while Oakland’s listing median fell. Use sold comps on the block, not the state index, to set ARV.
Unemployment, not seasonally adjusted, was 5.2% in August 2026, from 4.9% in August 2025 (MIURN). The seasonally adjusted rate was 5.0%, from 4.9% (MIUR). Quote them separately. Permits for new private housing units were 1,836 in August 2026, from 2,234 a year earlier (MIBPPRIV). Fewer permits do not shrink the stock of older Detroit houses that still need panels and furnaces.
Illustration: a Detroit duplex and the interest reserve
Illustration. Purchase $95,000. Rehab $35,000. Cost $130,000. After-repair value $190,000, which sits above Wayne County’s listing median because the sketch assumes a finished resale, not today’s ask.
Seventy-five percent of $190,000 is $142,500. Full cost is $130,000. The qualified flip funds $130,000. At 11.25% interest-only, inside 8.99%–13.5%, a year of interest is $14,625. A month is $1,218.75. Eight months is $9,750. The flip term maxes at 12 months.
| Detroit sketch | Figure |
|---|---|
| Cost | $130,000 |
| 75% ARV | $142,500 |
| Loan | $130,000 |
| Eight months of interest at 11.25% | $9,750 |
Ninety percent of the $95,000 purchase, the bridge cap, is $85,500. Bridge does not fund the $35,000 rehab inside that 90% test. Bridge terms run 12–24 months. Both products close in 7–10 business days on a complete file. The Detroit metro hub covers city registration. The permanent hold, after a lease, is Michigan DSCR at 5.75%–10.5%, in about 14 business days.
Bank prime was 7.00% on October 2, 2026, down from 7.25% on October 2, 2025 (DPRIME). The 11.25% sketch is the price of funding a house a bank will not appraise in time for an auction deposit.
Panels, diesel, and water liens
August 2026 construction materials were 10.1% above August 2025. The index moved from 341.458 to 375.908 (WPUSI012011). Price the electrical service and the furnace off a current bid. A 2025 allowance will miss the panel.
On-highway diesel averaged $6.199 a gallon in the week of October 5, 2026, down from $6.382 the week before, per the EIA gasoline and diesel update. Crews driving between Detroit and Grand Rapids still burn that fuel. Put haul cost in the draw budget.
Clear water and tax liens before close. A quiet title item that surfaces after funding eats the same months you reserved for redemption. Sequence panel and HVAC draws first, then finishes. That order matches how Detroit inspections actually fail.
What a complete Michigan package includes
- Auction confirmation or purchase contract
- A payoff and lien search that includes water and taxes
- Entity documents and EIN
- Sold comps inside Wayne or Kent, labeled as sold
- A note on which redemption subsection you think applies, for your counsel, not as a lending condition
- Exit path: fix and flip in Michigan or a leased DSCR refinance
The lender close is 7–10 business days after that package is in. Redemption planning sits on your resale calendar. It does not shorten the statute.
Michigan hard money bridge gates — Detroit acquisition (2026)
- $25,000 – $75,000 rehab bands — front-load mechanical and rough-in draws before cosmetic inspection passes.
- Permanent exit: Michigan DSCR on executed lease or fix and flip Michigan when spread clears.
- Detroit duplex rehab funded at 88% LTC with panel and HVAC draws before kitchen finish.
Grand Rapids bridge 8.99%–13.5% IO on $125,000 – $285,000 comps · DSCR Michigan · (833) 264-7776.
Get Your Michigan Hard Money Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.