Hard Money & Fix-and-Flip Loans in Colorado & Florida 2026

Fix-and-flip investing — buying distressed properties, renovating them, and selling for profit — requires financing that moves at the speed of real estate deals, not bank bureaucracy. Traditional lenders won't touch properties that need significant work, and the 30–45 day conventional timeline is too slow for most auction and off-market purchases. Hard money loans fill this gap. Here's how they work and what to expect in Colorado and Florida.

What Is a Hard Money Loan?

A hard money loan is a short-term, asset-based loan used primarily by real estate investors for acquisition and renovation of investment properties. Key characteristics:

• Based on the asset, not the borrower: Lenders primarily underwrite the property's after-repair value (ARV) rather than your income or credit
• Fast: close in 5–15 business days; some lenders can close in 48–72 hours
• Short term: 6–24 months (designed for the duration of a flip or renovation)
• Higher rates: 9–13% (2026 range depending on lender and deal quality)
• Points: typically 2–4 points upfront (2–4% of loan amount)
• No prepayment penalties: usually none, since the goal is to pay off quickly

Hard Money Loan Structure

LTV and ARV: Most hard money lenders lend based on:

• Up to 70–75% of ARV (After Repair Value)
• Or up to 90% of purchase price + 100% of renovation costs — whichever is less

Example: Distressed Denver home purchase $300,000. Renovation estimate $80,000. ARV (comparable renovated sales): $550,000.

• 70% of ARV: $385,000
• 90% of purchase ($270,000) + 100% of renovation ($80,000): $350,000
• Lender likely advances: $350,000
• Investor equity required: $300,000 + $80,000 = $380,000 total project cost; lender covers $350,000; investor brings $30,000 + points/interest

Typical Terms in 2026

The Draw Process

Hard money lenders don't typically release all renovation funds upfront. They use a draw schedule:

1. Initial advance: purchase + enough for first phase of renovation
2. Draws: as renovation milestones are completed, inspector verifies, additional funds released
3. Final draw: upon completion of renovation

This protects the lender but requires the investor to manage cash flow carefully — you may need reserves to bridge between draw advances.

Fix-and-Flip in Colorado

Denver metro: Most active CO fix-and-flip market. Target neighborhoods with older housing stock (Westwood, Barnum, Globeville, parts of Aurora) where $300,000–$400,000 distressed purchases have strong $500,000–$600,000+ ARVs after renovation. Tight margins in hot markets — due diligence is critical.

Colorado Springs: Strong market; lower purchase prices ($250,000–$350,000 distressed) with ARVs often $400,000–$500,000+.

Pueblo / Fremont County: High gross margins possible ($140,000 purchase, $60,000 renovation, $280,000 ARV) but slower liquidation timelines.

Fix-and-Flip in Florida

Jacksonville Westside/Northside: Lower price points, military tenant demand for finished product, $180,000–$250,000 distressed purchases with $320,000–$400,000 ARVs.

Tampa Ybor City / East Tampa: Urban gentrification plays; higher renovation complexity but strong ARVs.

Orlando east / Kissimmee: Access to workforce buyer pool; $250,000–$330,000 distressed with $380,000–$450,000 ARVs after renovation.

Post-Ian Southwest Florida: Lee and Charlotte Counties have distressed inventory post-Hurricane Ian — higher risk (insurance, flood zone) but potential for significant discount-to-ARV spreads.

Exit Strategies

Sale (most common): Renovate, list, and sell. Profit = sale price – purchase – renovation – financing – holding – agent fees – taxes.

BRRRR (Buy, Renovate, Rent, Refinance, Repeat): After renovation, refinance into a conventional or DSCR rental loan to pay off the hard money loan, pull out equity, and use proceeds for the next deal.

Refinance into permanent financing: If the flip takes longer or you decide to hold as rental, refinance into a 30-year DSCR loan.

Underwriting Your Deal

The classic flip formula: purchase + renovation + carrying costs + sale costs = total project cost. Sale price - total project cost = gross profit.

Target margin: Most experienced flippers target 15–20% of ARV as minimum gross profit.

Example: ARV $500,000 × 20% = $100,000 minimum profit margin → maximum total project cost: $400,000.

• Maximum all-in cost (purchase + renovation + holding + selling): $400,000

FAQ

Can a first-time investor get hard money? Yes, though some lenders require experience or a co-borrower with a flip track record. Starting with a simpler, lower-risk deal in a market you know well is wise.

Are hard money loans legal? Yes — they're used by experienced investors across the country. They're unregulated private loans (not CFPB-regulated consumer mortgages) and are appropriate for experienced investors on investment properties.

How do I find hard money lenders in CO and FL? Through mortgage brokers (like me) who have wholesale relationships with private money lenders, or through local real estate investment associations (REIAs) in Denver, Tampa, and Jacksonville.

Let's Structure Your Fix-and-Flip Financing

📞 970-708-9624 | tj@taytoncapitalllc.com

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