I’ve been watching the Jacksonville fix-and-flip market heat up, and I keep seeing investors jump into deals with hard money loans for that quick turnaround. Ambition’s great (we all want to scale fast!), but I’ve also seen a few folks get burned by cutting corners, think skipping inspections or stretching the numbers to make a deal work.
For those of you who’ve chased fast growth, did you find hard money loans gave you the edge, or did traditional financing keep you out of trouble? Any stories (good or bad) about lessons learned from pushing the envelope?
Would love to hear what’s worked and what you’d never do again!
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I’ve used hard money a couple times, and while it can speed things up, it definitely comes with pressure. One deal went great because we stayed super conservative on the rehab budget and timeline. Another? Not so much, unexpected foundation issues and high holding costs ate into everything.
Biggest lesson for me: don’t force the numbers just to make the deal “work.” Hard money magnifies both your wins and your mistakes. Now I only use it when the margins are solid and I have a clear exit strategy. Cutting corners to move faster rarely ends well.
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I’ve stuck with conventional loans, even if it means moving a little slower. The lower rates and longer terms keep my monthly costs predictable, and I’m less tempted to cut corners just to beat the clock. In this market, where inventory is up but competition is still fierce, I’d rather miss a deal than get burned by high-interest hard money if the flip takes longer than planned.
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hard money really does amplify everything. Without solid margins and a clear plan, the risks pile up fast. Appreciate sharing both sides of it.
predictable costs and a bit more breathing room go a long way. In this market, slower but safer often wins.
I mix it up. For quick cosmetic flips where I know the play and the neighborhood, I use hard money. But if there’s any uncertainty, weird zoning, bad roof, code issues I’ll go slower with conventional financing or private money. It gives me time to breathe. The key is having options and not forcing every deal through the same lens. Jacksonville’s heating up, but not every house is a good flip.