New to Real Estate · Melbourne FL · Member since 2025 · 30 posts · 11 votes
Hey everyone,
I’m working on a retail fix-and-flip in Central Florida using a hard money lender (90% purchase / 100% rehab), and I’m structuring the remaining capital stack.
For those of you who’ve done similar deals, I’d love to learn how you typically structure short-term capital used for down payment and closing costs on these types of projects.
A few questions for the group:
Do you usually see this structured as a flat return or an annualized return?
What ranges are common for a ~6-month target hold?
From an investor’s perspective, what are the most important things you look for when evaluating a deal like this (structure, downside protection, timeline, operator experience, etc.)?
Appreciate any insight from those with experience — always helpful to hear how others approach these.
Lender · Boston, MA · Member since 2021 · 125 posts · 64 votes
8mo
Usually flat return, 20%+ is common given the 2nd position weaker security. The overall strength of the deal is probably the most important factor. Doing your homework and putting together a nice info packet on the property and how you plan to manage the rehab and how you plan on paying everyone back with multiple exit strategies is what a lot of investors want to see. Having decent credit and some reserve funds would help. Operator experience is a big plus also.
Appreciate the insight — that aligns with what I’ve been hearing as well. The emphasis on overall deal strength, clear execution, and defined exit planning makes a lot of sense. Helpful perspective, especially on how investors evaluate second-position risk. Thanks for sharing.
Lender · Marlboro, NJ · Member since 2025 · 243 posts · 149 votes
8mo
You’re right to think about this early.
What I typically see on Florida fix-and-flips is short-term capital for down payment/closing structured more around risk position than headline return. Most operators use a flat return for sub-12 month holds simply to keep alignment clean if timelines shift.
For a ~6-month target, ranges vary, but more important than the number is clarity on downside protection: where that capital sits relative to the hard money lender, whether it’s secured or unsecured, and how overruns or delays are handled.
From an investor's perspective, the biggest drivers are operator track record, conservative ARV assumptions, realistic timelines, and a structure that doesn't break if the deal takes 9 months instead of 6. Deals fail more often from execution drift than from bad markets.
Clean structure and clear expectations usually matter more than squeezing an extra point out of the return.