The quick read: Compare Little Rock hard money lenders on the same four questions, leverage basis, rate and points, draws and extensions, and then test each written offer against the exit the deal actually has. In Pulaski County that exit carries a tax reset most rehab models miss. Arkansas assesses property at 20% of market value, and Amendment 79's 10% annual cap on increases for non-homestead property does not apply to substantial improvements, defined as renovation adding 25% or more to value. So the finished rehab is taxed on its new value, not on the acquisition bill, and a refinance sized on the seller's tax line can come up short on debt service.
How do you compare hard money lenders for a Little Rock flip or small rental rehab?
You compare hard money lenders for a Little Rock flip or small rental rehab by putting the same scope, budget and after-repair value in front of each lender type, collecting written answers on leverage, pricing, draws and extensions, and then running each answer through the exit: a retail sale or a refinance carrying the post-rehab Pulaski County tax bill.
The investor's decision comes first. A buyer looking at a 1920s bungalow in Hillcrest, a shell building in SoMa off Main Street, a dated ranch in The Heights or a duplex in Midtown is betting that the after-repair value (ARV) or the stabilized rent covers the price plus the work. The hard money loan only finances the months in between, so the right lender is the one whose terms still work on the day you sell or refinance.
This is an evaluation framework, not a ranking of named lenders. It compares four lender types:
- Local private lender: lends its own or its investors' money, decides quickly and prices for uncertainty.
- National fix-and-flip lender: a nonbank program lender with a standard draw process and file-by-file pricing.
- Debt fund: pooled capital that underwrites the business plan and often the sponsor's track record.
- Bank or credit union rehab line: leans on your credit, liquidity and deposits.
For the general mechanics of the product, read our guide to hard money loans for commercial real estate, and our glossary entry on ARV.
What do published sources say about hard money leverage, rates and terms?
Published, dated consumer-finance sources give general ranges rather than Little Rock quotes: NerdWallet puts typical hard money loan-to-value at 50% to 75% with 10% to 30% or more down, and fix-and-flip terms at six to 24 months, while none of these sources publishes points, draw fees or extension fees, so those become written questions.
| Question | Local private lender | National fix-and-flip lender | Debt fund | Bank or credit union line |
|---|---|---|---|---|
| Question Leverage basis | Local private lender LTVs "from 50% to 75%" (NerdWallet, hard money) | National fix-and-flip lender LTV "usually up to 90%"; some to 90% LTC or higher (NerdWallet, fix and flip) | Debt fund No dated public source; ask cost, as-is or ARV | Bank or credit union line No dated public source; ask the internal limit |
| Question Down payment | Local private lender "10% to 30% (or more)" (NerdWallet) | National fix-and-flip lender Ask the cash required at closing in dollars | Debt fund Ask | Bank or credit union line Ask |
| Question Rate and points | Local private lender "High interest rates" (NerdWallet); ask points in and out | National fix-and-flip lender Ask rate, floor and points in writing | Debt fund Ask index, spread and floor | Bank or credit union line Ask |
| Question Draws | Local private lender Ask who inspects and days to wire | National fix-and-flip lender Ask how the rehab holdback is released | Debt fund Ask draw count and turnaround | Bank or credit union line Ask about lien waivers and title updates |
| Question Term and extension | Local private lender "A few months to a few years" (NerdWallet) | National fix-and-flip lender "Six to 24 months" (NerdWallet) | Debt fund Ask the extension fee | Bank or credit union line Ask maturity and renewal conditions |
Hard money LTV range (NerdWallet hard money guide, updated Mar 10, 2026): 50% to 75% Hard money down payment (same guide): 10% to 30% or more Fix-and-flip repayment term (NerdWallet fix-and-flip guide, updated Feb 11, 2026): six to 24 months
The percentage matters less than what it is applied to. NerdWallet's own examples show the gap: 80% loan-to-cost on a $120,000 project is $96,000, while a 70% ARV lender lends at most $140,000 on a home worth $200,000 after repairs. Ask every lender for its maximum loan in dollars on your budget and ARV, whether the rehab budget sits inside that cap, and whether points are financed or paid in cash. Our loan-to-cost calculator runs the same comparison.
Why does the Little Rock metro's small-building market shape the exit?
The Little Rock metro's small-building market shapes the exit because most finished rehabs sell to owner-occupants or small investors rather than institutions: the Census Bureau's 2025 permit estimates show 20 buildings of five or more units carrying 397 units, about 19.9 units per building, against 2,566 single-family homes.
Little Rock-North Little Rock-Conway metro, 5+ unit buildings permitted in 2025 (Census Bureau): 20 buildings, 397 units Same metro, 3-and-4-unit buildings permitted in 2025 (Census Bureau): 20 buildings, 71 units Same metro, 2-unit buildings permitted in 2025 (Census Bureau): 54 buildings, 108 units Same metro, single-family homes permitted in 2025 (Census Bureau): 2,566 buildings
New multifamily is arriving in mid-size buildings averaging about 20 units, so the stock a flip or small rental rehab competes with is mostly older houses, duplexes and fourplexes. That supports two exits: a retail sale to an owner-occupant, or a refinance into a DSCR loan held by a small investor.
Prices have been moving up slowly. The Federal Housing Finance Agency's all-transactions house price index for the metro, published on FRED, read 284.84 in the second quarter of 2026 against 278.39 a year earlier, about 2.3% higher (our arithmetic). That is modest appreciation, so the margin on a Little Rock flip still has to come from the buy price and the scope of work, not from the market rising during a six-month hold.
How does Amendment 79 reset the tax line on a finished Little Rock rehab?
Amendment 79 limits annual increases in taxable value to 5% for a homestead and 10% for other real property, but the Arkansas Department of Finance and Administration states the caps do not apply to substantial improvements, meaning renovation adding 25% or more to value, so a heavy Little Rock rehab is assessed at full value.
The state's Assessment Coordination Division sets out the formula as market value times 20% equals assessed value, times local millage equals tax, with its own example of $100,000 times 20% equal to $20,000, times .047 equal to $940. Pulaski County sits at the top of the division's millage table:
Assessment ratio (Assessment Coordination Division, 2023 annual report): 20% of market value Non-homestead cap (DFA, Amendment 79): taxable value up 10% per year until it reaches full assessed value Not capped (DFA, Amendment 79): newly discovered property, new construction and substantial improvements Substantial improvement (DFA): renovation, reconstruction or refurbishment adding 25% or more to value Pulaski County average overall millage (Assessment Coordination Division, approved in 2022 school elections): 58.28, ranked first of 75 counties Pulaski County reappraisal schedule (DFA): 2026, then 2030, 2034 and 2038
A county average is not the levy on any specific parcel, and a property in North Little Rock or a different school district carries its own rate, so pull the parcel's bill from the county before you model. The pattern holds regardless of the exact rate: once the rehab clears the 25% threshold, the tax line jumps to the full new value in one step.
| Illustrative tax line (our arithmetic) | Before rehab | After rehab, full value | After rehab, if the 10% cap applied |
|---|---|---|---|
| Illustrative tax line (our arithmetic) Market value (assumption) | Before rehab $140,000 | After rehab, full value $240,000 | After rehab, if the 10% cap applied $240,000 |
| Illustrative tax line (our arithmetic) Assessed or taxable value | Before rehab $28,000 | After rehab, full value $48,000 | After rehab, if the 10% cap applied $30,800 |
| Illustrative tax line (our arithmetic) Annual tax at 58.28 mills | Before rehab $1,631.84 | After rehab, full value $2,797.44 | After rehab, if the 10% cap applied $1,795.02 |
| Illustrative tax line (our arithmetic) Monthly tax | Before rehab $135.99 | After rehab, full value $233.12 | After rehab, if the 10% cap applied $149.59 |
The rehab in this example adds about 71% to value, far past the 25% threshold, so the middle column is the one a lender's exit model should use. A light cosmetic job adding under 25% stays inside the 10% cap, which is why the scope of work belongs in the tax model as well as the draw schedule.
What does the exit look like on an illustrative Little Rock rental rehab?
On an illustrative Little Rock duplex bought for $140,000 with a $60,000 rehab and a $240,000 ARV, a 70% ARV cap holds the hard money loan to $168,000, and a $180,000 refinance at 7.5% covers its payment 1.30 times on the pre-rehab tax bill but only 1.22 times on the full post-rehab bill.
Every input is an illustrative assumption, not a quote, a market rate, an appraisal or a rent survey: $2,000 a month of rent across two units, $150 a month of insurance, a 30-year amortization and the Pulaski County average millage.
Hard money sizing: 85% of the $200,000 all-in cost would be $170,000, but a 70% ARV cap allows $168,000, so the cap binds and the investor funds about $32,000 plus closing costs and carry.
Refinance at exit: 75% of the $240,000 ARV is $180,000. Principal and interest at 7.5% over 30 years is $1,258.59 a month. With the seller's old tax line of $135.99 and insurance, the payment is $1,544.57 and coverage is about 1.30. With the full post-rehab tax of $233.12, the payment is $1,641.71 and coverage falls to about 1.22 (all our arithmetic).
If the refinance lender's minimum were 1.25 (an assumption for this example), the deal that looked approvable on the old bill would fail on the real one. Sized to 1.25 on the full tax line, the loan drops to about $174,035, so the cash returned at refinance shrinks from about $12,000 to about $6,035 before costs. The hard money payoff is still covered, but the investor leaves more money in the building. Run your own numbers in the DSCR calculator with the post-rehab tax line.
Which Little Rock neighborhood questions should go to every lender in writing?
Five Little Rock situations deserve written questions to each lender before you sign: historic-district scope in Hillcrest, contingency on adaptive reuse in SoMa, sale versus refinance exits in The Heights and Midtown, deals across the river in North Little Rock's Argenta, and any plan to run short-term rentals under the city's 2023 ordinance.
Historic scope in Hillcrest. Older houses in and around historic districts can carry exterior review or simply surprise the contractor once walls open. Confirm with the City of Little Rock whether the parcel sits in a locally regulated district, then ask the lender how much contingency it requires in the budget and whether a change order reopens the draw schedule.
Adaptive reuse in SoMa. Converting an older commercial building near Main Street to residential or mixed use brings code, egress and utility unknowns. Ask whether the lender sizes on cost or on an as-completed value, and what happens to the holdback if the permit set changes.
Sale exits in The Heights, refinance exits in Midtown and Riverdale. A retail sale exit needs an ARV supported by renovated sales nearby. A refinance exit needs rent, insurance and the post-rehab tax bill to clear the take-out lender's coverage test. Ask the hard money lender which exit it is underwriting and whether its extension terms assume a sale or a refinance.
Argenta and North Little Rock. North Little Rock is a separate city with its own planning, permitting and inspection process. Ask whether the lender has closed and funded draws on the north side of the river and whose inspections it relies on.
Short-term rentals. Little Rock's short-term rental ordinance, on the Board of Directors' June 20, 2023 agenda, allows an owner-occupied STR-1 only where the Planning Commission has granted a Special Use Permit, requires a Planned Zoning District for a non-owner-occupied STR-2 with a $500 annual inspection fee, and caps the city at 500 short-term rentals at any one time. A flip or rental plan that depends on nightly income has to clear that process first, and an exit lender will want to know which rent it is underwriting.
How do you get hard money lenders competing for a Little Rock deal?
You get hard money lenders competing for a Little Rock deal by sending each one the same complete package, with the contract, scope, budget, ARV support and an exit plan built on the post-rehab Pulaski County tax line, so their written terms can be compared on identical assumptions instead of on headline rates.
YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Its software matches the request against a catalog of 20,000+ loan programs, and human brokers structure the request, negotiate for the borrower and carry the deal toward closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
What to send:
- Purchase contract, address and the parcel's current Pulaski County tax bill
- Scope of work, contractor bids and the draw schedule you want
- ARV support: renovated sales you consider comparable, with addresses
- Exit plan: target sale price, or the rent roll and refinance you expect, with the post-rehab tax line
- For historic or adaptive-reuse projects, any city review requirements already identified
- Your completed rehabs, with dates and outcomes
The Little Rock market hub and the Arkansas market hub collect our local material; neither promises any lender or term. When the package is ready, send the deal for review. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing.
The bottom line
Compare Little Rock hard money lenders on the dollars each will lend against your real budget and ARV, then on points, draws and extensions in writing. Then rebuild the exit on the tax bill the finished property will carry: in Pulaski County a rehab adding 25% or more to value is reassessed at full value, and a refinance sized on the old bill can miss coverage.