New to Real Estate · Miami, FL · Member since 2022 · 11 posts · 6 votes
Does anyone know and can recommend any hard money/private money lenders in Florida that they have either worked with or heard great things about and also that allows for a balloon payment instead of monthly interest payment ?
Does anyone know and can recommend any hard money/private money lenders in Florida that they have either worked with or heard great things about and also that allows for a balloon payment instead of monthly interest payment ?
Three starting points;
1. BiggerPockets --> Network --> Hard Money Lenders --> Filter by state (FL)
2. Google "Florida hard money lenders"
3. Local meetups/REIA events where you can get investor referrals, meet with local HML reps, or individual private lenders
To address the second part of your question...
Essentially all short-term "bridge" loans are structured as I/O or 'interest-only' and require a balloon payment at the end of the term, because you aren't paying down the principal during the course of the loan.
In other words, most all short-term hard money loans you'll be looking at will require monthly interest payments and a balloon payment at the end of the term. This balloon payment is generally made from the proceeds of either a) a sale of the subject property or b) refinancing the existing debt.
You may be instead referring to an 'interest reserve' whereby the lender can build in the interest payments to the loan structure.
This availability will be based in part on your deal (how much room there is to increase the total loan amount and still adhere by lender underwriting guidelines) and also the lender (lenders vary in their tolerance for interest reserves).