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 7–14 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 | Up to ~90% of purchase + rehab, capped to ARV |
| Rate | Interest-only 8.99%–13.5% + points |
| Term | 6–18 months |
| Close | As fast as 7–14 days |
| 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.
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.