Hard Money Lenders in Michigan
Michigan rewards basis discipline. Detroit duplex stock and Grand Rapids SFR still trade at price points that support BRRRR when mechanical scope is honest — but winter carry, lead paint, and block-level vacancy punish optimistic pro formas imported from warmer markets.
Good Michigan inventory moves through estate sales, off-market wholesalers, and multiple-offer MLS listings — channels where 7–10 business day hard money closes beat conventional timelines. Hard money funds the buy-and-rehab phase when approval rests on after-repair value and the deal, not W-2 income.
Where Michigan investors deploy capital
- Detroit — deepest investor market; brick duplexes, land-contract history, block-level diligence.
- Grand Rapids — west Michigan growth; suburban SFR and small MF value-add.
- Lansing / East Lansing — university and state-government employment base.
- Flint and secondary metros — extreme low basis; experienced sponsors only.
Why Michigan rewards the BRRRR investor
A modest rehab on Detroit or Grand Rapids stock can lift both value and rent — and DSCR refinance often returns most invested capital when Detroit rental registration and lead-safe scope are handled before lease-up.
Because rehab holdbacks release on inspected milestones, experienced sponsors sequence mechanical work before cosmetic finish — protecting both ARV and lease-up timelines. See fix and flip loans Michigan for resale-focused capital on the same acquisitions.
Rates, leverage, and terms
9.5%–13% interest-only with up to 90% LTC and rehab holdbacks on qualified files. Rehab holdbacks release on inspected milestones for qualified repeat sponsors.
A realistic worked example
An investor contracts a value-add property for $95,000.
- Bridge at 88% LTC funds about $83,600 of the purchase, interest-only.
- Rehab of $48,000 — scope released in draws as work passes inspection.
- As-completed value of $185,000 with market rent around $1,250/side.
- Stabilize both sides or flip to owner-occupant in a Grand Rapids-adjacent corridor. — or refinance into DSCR permanent debt when the rent roll is documented.
Draw schedule discipline
Structure draws around mechanical-first sequencing — roof, HVAC, panel, and plumbing before kitchen and bath finish. That protects appraisal and insurance bindability at exit and avoids tying up capital waiting on cosmetic reimbursements.
Underwriting realities specific to Michigan
- Detroit rental registration — verify compliance before lease-up and DSCR refi.
- Lead paint — pre-1978 stock requires EPA-compliant renovation practices.
- Winter mechanicals — budget furnace and plumbing freeze protection on vacant holds.
- Block comps — Detroit values vary sharply street-by-street; half-mile rule is minimum.
Why investors work with Jaken Finance Group
We structure Michigan deals — entity setup, draw schedules, and refinance planning — so the BRRRR cycle closes the loop. Pair this page with fix and flip loans Michigan for the full Michigan product matrix.
Not sure which product fits? Start with what kind of loan you need or get pre-qualified.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Closing times are in business days and commence upon receipt of appraisal payment and satisfaction of borrower conditions. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.