You found 5 acres under market. The seller needs cash in 10 days. You do not have $72,000 sitting around, and the bank laughs when you say "raw land." This is the exact moment a hard money loan for a land flip is built for.
What is a hard money loan for a land flip?
A short term, interest only loan that funds the purchase so you can resell at a profit.
A hard money land flip loan pays the seller at closing. You hold the land for a few months, market it, and resell it for cash or on owner financing. When it sells, the loan is paid off from the sale. The lender cares most about the land's value and how fast you can resell it.
Need a hard money lender for land?
$30K to $1M, 20% down, no appraisal, no points, close in about 7 days. Written quote in 24 hours.
Get a Free QuoteSee Hard Money Land LoansWhat does a hard money land flip really cost?
On a real Florida flip, $6,510 for six months of money.
A borrower found a 5 acre Florida parcel at $72,000, under recent sales. We lent $57,600 at 16% with 20% down and closed in 7 days. The borrower resold it six months later.
| Florida flip | Amount |
|---|---|
| Purchase price | $72,000 |
| Down payment (20%) | $14,400 |
| Loan | $57,600 at 16%, interest only |
| Interest, 6 months | $4,608 |
| Closing fee | $600 |
| Exit fee (2%) | $1,152 |
| Total cost of the money | $6,510 |
Full details are on the Florida land flip case study. Rule of thumb: if the cost of the money is a small slice of your spread, the rate does not matter much.
What does a hard money lender look for on a land flip?
A good price, a clean parcel, and a clear plan to resell.
- A purchase price at or under recent land sales
- Legal access, no flood zone, and no major wetlands
- At least 1 acre, in a state the lender covers
- Your resale plan: cash buyer, owner financing, or splitting it
- 20% down, or another property you own as cross collateral
We do not lend in CA, AZ, NV, NY, NJ, ND, SD, or VT, and we fund the land purchase only, not site work or construction.
Can I flip land with no money down?
Yes, if you own another property with equity.
Pledge one other property as cross collateral and we can fund 100% of the purchase. When the flip sells, both liens release. Or bring a partner who puts up the 20% down. I would avoid lenders that offer zero down with no extra collateral. The math usually shows up somewhere else, in points or a profit split.
What if I resell the land on owner financing?
Sell the note to us at closing and the flip loan pays off the same day.
Many land buyers cannot get a bank loan, so owner financing brings more buyers and often a better price. When you find your buyer, we buy the note at closing for 80% to 90% of the balance, and that cash pays off our loan. Or keep the payments and wrap our loan. See how it works in sell at closing.
How fast can a hard money land flip loan close?
About 7 days, with no appraisal.
Send the parcel, the price, and your resale plan on the quote page. We send written terms within 24 hours. The whole program is on land flip financing, and every loan on our case studies page was a flip.
Frequently Asked Questions
What is a hard money loan for a land flip?
A short term, interest only loan that funds a land purchase so you can resell it at a profit. It is paid off when the land sells.
How much does a hard money land flip loan cost?
On a Damen Capital Florida flip, a $57,600 loan at 16% held 6 months cost $6,510: $4,608 interest, $600 closing, and a $1,152 exit fee.
Can I flip land with no money down?
Yes, if you pledge one other property you own as cross collateral. Damen Capital can then fund up to 100% of the purchase.
How fast can a hard money land flip loan close?
About 7 days with Damen Capital, with no appraisal.