If you’re looking to invest in real estate in Tampa, FL, then you will need a large amount of money to start with. And while banks usually offer all kinds of mortgages to long-term home buyers, if you’re looking to make a short-term investment in real estate, then what you will need is a hard money lender. Luckily, what we have for you is our list of top 5 hard money lenders in Tampa.
What is a Hard Money Lender?
To put it short – hard money lenders are individuals or organizations that offer short-term loans to investors at a relatively high interest rate.
There are many ways to get funding for investing in real estate; from bank mortgages to Real Estate Investment Funds, to mutual funds and crowdfunding. However, most lenders out there are usually reluctant to lend money for short-term investments due to the risk associated with them.
For this reason, hard money lenders are common among short-term investors, especially beginner investors who do not have a large sum of money for a down payment.
Additionally, and while some hard money lenders may have specific credit score requirements, most of them will care a lot more about the deal itself and how promising it is as an investment opportunity.
For example; a fix-and-flip is one of the most common types of investments that are funded through hard money lenders, especially in the Florida housing market and in Tampa where there is an abundance of foreclosures and investors flipping houses in Tampa.
So, when you’re trying to find hard money lenders in Tampa, one thing you want to keep in mind is that you will need to bring your math along – hard money lenders might ask about the reparation costs and the estimated ARV (After Repair Value) of the property.
This, however, comes at a cost, as hard money lenders have higher interest rates than a more traditional loan or long-term mortgage. The risk, of course, will vary depending on the nature of your investment, the risks associated, your credit score, and the amount of money you have available for a down payment.
Now that you know what hard money lending is all about, let’s talk about the best hard money lenders in Tampa, FL.
Our Top 5 Hard Money Lenders in Tampa, Florida
As mentioned before, hard money lenders in Tampa are common due to the abundance of foreclosures and the popularity of the fixer-upper investment strategy in the state of Florida.
So, in no particular order, here are the best hard money lenders in Tampa:
Hard Money Tampa
Hard Money Tampa is a great option when it comes to financing your investment to any type of real estate investor out there!
Hard Money Tampa has the widest selection of options to choose from out of any other hard money lender in Tampa on our list.
Loan Amount: $10,000 – $30,000,000
Interest Rate: 7.99% – 12%
Max LTV: 60%
In addition to the wide range of options in terms of the loan amount and interest rates, Hard Money Tampa covers the widest range of property types and investment strategies, making it closer to a traditional lender than a hard money lender.
Hard Money Tampa also offers long-term loans and will lend on single-family and multi-family properties.
Finally, they are accredited by the Better Business Bureau and have an excellent rating of A+.
Associates Home Loan of Florida
Another great option when it comes to the wide range of options available is the Associates Home Loan of Florida.
This lender does not only offer hard money loans for fix and flips and rental strategies, but it also offers it for refinancing. Meaning, if your window for selling a fixer upper in order to pay off your first loan closes and you haven’t managed to sell the house yet, Associates Home Loan of Florida can refinance your investment so that you could pay off your first loan and get some extra time to sell your property.
Loan Amount: $15,000 – $15,000,000
Interest Rate: 11%
Max LTV: 70%
Additionally, Associates Home Loan of Florida covers a wide range of properties, including single-family homes, multi-family homes, apartment buildings, and senior housing.
They have a rating of A+ with the Better Business Bureau.
The Miami-based company, Brickell Financial, also operates in the Florida real estate market providing a wide range of loans to real estate investors, including in Tampa.
Brickell Financial stands out because of how accessible it is to beginner investors due to covering both short-term and long-term investments; but more importantly, for offering a high maximum of 80% LTV on their single-family and multi-family homes as well as apartment complexes.
Loan Amount: $30,000 – $5,000,000
Max LTV: 80%
Overall, Brickell Financial is a great option for beginner investors who want to invest in a fixer upper and are looking for private money lenders in Tampa, as they offer hard money construction loans in addition to property loans – meaning they could be your one-stop hard money lenders in Tampa.
Capital Funding Financial
We talked about the hard money lenders in Tampa who have the widest range of options, now let’s talk about one that has a very narrow one: Capital Funding Financial.
This company offers hard money short-term and fix-and-flip loans throughout the entire state of Florida. However, the hard money loans they offer are very narrow in terms of the loan amount as well as its LTV requirement.
Loan Amount: $75,000 – $1,000,000
Interest Rate: 7.25%
Additionally, Capital Funding Financial only offers hard money loans with a 1-year term, and they have a 550+ credit score requirement as well. Of course, if you meet the criteria and are looking for a hard money loan within the amount range, then the relatively low-interest rate makes this an excellent option for you when it comes to hard money lenders in Tampa.
Capital Funding Financial is accredited with the Better Business Bureau.
A to Z Capital
Another money lender in Tampa that specializes in short-term fix-and-flip loans is A to Z Capital.
This company also covers the entire state, including the Tampa real estate market. They are very popular among flippers, as they cover the rehab costs in addition to the property cost. However, they do also have somewhat strict requirements on their loans, and their range of options isn’t as flexible when it comes to investments that are not short-term or fixer-upper.
Loan Amount: $50,000 – $2,000,000
Interest Rate: 6.5%
A to Z Capital also has a credit score requirement of 600+, as well as a 10% down payment. If you meet these requirements, however, the low interest rate combined with the ability to include your rehab costs in the loan makes them an excellent option for any flipper in Tampa!
It is no surprise that there are several great options when it comes to hard money lenders in Tampa, and each investor’s preferences might vary depending on the type of investment that they want to make.
Regardless of the type of investment, and before picking your favorite from our list of hard money lenders in Tampa, make sure to find the perfect property for your investment based on smart analytics and calculations that will tell you everything you need to know, basically telling you how much money you’re going to make on your investment – and make sure to use Mashvisor, a tool that was designed for real estate investors, agents and enthusiasts who are looking to access all the market’s data in one place using our property finder and real estate investment analysis platform!
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