Florida’s real estate markets move quickly, especially in high-demand areas like Miami, Ft. Lauderdale, Tampa, and Orlando. Investors and property owners often need funding that matches the speed of the opportunity. Bridge loans and hard money loans provide short-term financing solutions designed specifically for competitive markets where traditional banks may move too slowly.
What Is a Bridge Loan?
A bridge loan is a short-term real estate loan used to “bridge” the gap between an immediate funding need and a long-term financing solution. These loans typically range from 6 to 24 months and are structured to be repaid through a refinance or sale.
In markets like Miami and Ft. Lauderdale, bridge loans are commonly used to:
- Purchase value-add properties
- Acquire condos that need updates
- Close quickly in multiple-offer situations
- Secure off-market investment opportunities
In Tampa and Orlando, bridge financing is often used for:
- Fix-and-flip projects
- Short-term rental conversions
- Small multifamily acquisitions
- Transitional commercial properties
Why Hard Money Loans Are Popular in Florida
Hard money loans are a form of bridge financing typically provided by private lenders. Unlike traditional banks, hard money lenders focus primarily on the value of the property and the exit strategy rather than extensive income documentation.
This makes them particularly effective in fast-moving markets like:
- Miami, where cash buyers dominate
- Ft. Lauderdale, where waterfront and investment properties trade quickly
- Tampa, one of Florida’s fastest-growing metros
- Orlando, where investor demand remains strong due to population growth and tourism
Hard money bridge loans often close in days instead of weeks, allowing investors to compete effectively.
Key Features of Florida Bridge and Hard Money Loans
While terms vary by lender, most bridge and hard money loans in Miami, Ft. Lauderdale, Tampa, and Orlando share common features:
- Short-term loan structure (6–24 months)
- Interest-only payment options
- Asset-based underwriting
- Faster approvals than traditional financing
- Higher rates compared to conventional loans
Loan amounts are typically based on either the current value of the property or the after-repair value (ARV) for renovation projects.
Common Exit Strategies
Because bridge loans are temporary, borrowers in Miami, Ft. Lauderdale, Tampa, and Orlando usually plan to exit the loan through:
- Selling the renovated property
- Refinancing into a long-term rental loan
- Converting to permanent commercial financing
Clear planning is essential when using short-term financing in competitive Florida markets.