Educational information only, not legal, tax or financial advice. Examples and calculations may contain errors; verify them with your own advisors. Advertised starting rates are annual interest, not APR; one point equals 1% of the loan amount. Other fees and costs may apply, and all financing is subject to underwriting.
What a hard money loan is
A commercial hard money loan is short-term financing from a private lender, sized mainly on the property's value and the business plan rather than on a bank's long checklist. In practice the terms hard money and bridge loan overlap; both are temporary loans repaid by a sale or a refinance.
Common Miami uses
Buying a storefront, office or small industrial building on a tight timeline, paying off a maturing loan, taking cash out of an investment property for another deal, or carrying a building through repairs before a bank will lend on it.
What it costs
Private money costs more than a bank loan because it moves on deals banks will not do. At Crosby Lending, rates start from 9% annually and origination from 1 point, with leverage up to 65% of value, subject to underwriting. Third-party costs like appraisal, title and legal fees also apply.
How to prepare
Have the property address, purchase price or value, the amount you need, any payoff statement, the rent roll if leased, the repair budget, and a clear repayment plan. A specific, realistic exit is what makes a private loan workable.
A local lender
Crosby Lending is part of Crosby Capital, based in Miami Beach since 2012, and lends on business-purpose real estate from $100K to $50M nationwide. Consumer and owner-occupied loans are not eligible.
Related guides
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