A $2M fix and flip in Miami is a different lending product from a $500K fix and flip in the same market. The lender pool shifts, the documentation expectations shift, and the underwriting attention per deal goes up because the loss exposure is material. Knowing where $2M lives in the capital stack is half the battle.
Why $2M sits in a unique sweet spot
Most hard-money fix-and-flip lenders cap their typical deal size around $1M. Above that, they either decline or syndicate, which slows close time. On the other end, institutional bridge lenders (debt funds, banks) usually start at $3–5M loan minimums because deal economics don't work below that. The $1.5M–$3M band is served by a specific set of private capital pools and specialty fix-and-flip lenders who built their underwriting around this size.
Practical consequence: you can't use the same lender list at $2M that you'd use at $500K. The cheap retail-grade fix-and-flip platforms (Kiavi, Lima One, RCN) will quote — but their pricing and terms get less competitive at $2M, and their decision-making slows. Private capital pools at this size offer faster close and better terms but require a sharper sponsor profile.
Miami-specific dynamics that affect pricing
- Insurance: post-2024, property insurance in coastal Miami can run 3–5x continental US averages. Lenders require bound insurance at close, and the premium changes the deal economics.
- Hurricane code (FBC): properties built before 2002 need upgrade compliance during rehab — impact-rated windows, roof tie-downs, wind-load engineering. Adds budget and lender wants it line-itemed.
- Condo conversions: if the project is a condo conversion or condo unit flip, lenders need HOA financials, assessment history, and condo questionnaire. Condos with pending assessments or insurance disputes are very hard to finance.
- Flood zone: AE/VE zone properties trigger required flood insurance and higher LTV haircuts. Lenders pull the flood map at intake.
- Foreign buyer dynamic: Miami has a large foreign-buyer exit market, which lenders price favorably on multifamily / luxury single-family exits but cautiously on standard SFR exits where domestic financing is the path.
What 7–14 day close requires
Close speed at $2M is achievable but conditional on document readiness. The lenders that close in 7 days don't have magic — they have a defined doc package, and they close fast when sponsors deliver it without back-and-forth.
Minimum doc package: signed purchase contract, sponsor schedule (last 5 flips with addresses, purchase/sale prices, hold periods), borrower entity docs (LLC, EIN, operating agreement), proof of funds for down payment, contractor info (license, insurance, scope), draw schedule, target ARV with comparable sales support, and a bound insurance quote (or AOR if you're using the lender's preferred broker).
Typical $2M Miami fix-and-flip terms
- Loan size: $1.5M–$2.5M
- LTC: 75–80% of purchase + 100% of rehab (subject to ARV cap)
- ARV cap: 70–75% of as-completed appraised value
- Rate: 10–12% interest-only, paid current monthly
- Origination: 2–3 points
- Term: 12 months, with 3–6 month extension option
- Recourse: full personal recourse standard at this size
- Draw schedule: 4–6 draws, lender inspection per draw
Why $2M deals get different treatment than $500K
At $500K, lenders treat the deal as commodity flow. Quick yes/no based on sponsor credit + property type. The lender's actual loss exposure on a single deal is modest, so underwriting is light.
At $2M, every deal gets human underwriting attention. The lender wants to see comparable completed flips at similar size, not just any flips. A sponsor with ten $400K flips on the resume but no comparable $2M+ project will struggle — the underwriter doesn't have data that the sponsor can execute at scale. The fastest closes happen when the sponsor brings 2–3 comparable $1.5M+ completed projects in similar Miami submarkets.