Private lending guide
Hard money closing costs: separate lender economics from third-party expenses.
Learn the major cost categories in a Florida private real estate loan, including interest, origination points and third-party closing expenses.
Three cost buckets.
A borrower should model financing cost separately from property closing expenses and project carrying costs.
| Category | Examples |
|---|---|
| Lender economics | Interest and origination points. |
| Transaction expenses | Title, recording, valuation, legal, insurance and closing-related items where applicable. |
| Project carrying cost | Taxes, insurance, utilities, HOA, renovation carrying costs and other ownership expenses. |
SPI Capital's current public borrower framework states 12% simple interest and 3 origination points. Third-party expenses vary by transaction and provider and should not be represented as fixed without a live closing statement or quote.
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Start with the transaction.
Submit the property, requested loan, business plan and exit strategy for a preliminary fit review.