Hard money lenders offer a valuable service to real estate investors and house flippers in need of a quick short-term loan. But finding the right lender is key to successfully closing on your property purchase. Here's our guide to the best hard money lenders in South Carolina.
If you're new to real estate investing, it may surprise you to learn that many experienced investors don't go to a traditional bank or mortgage broker to finance their projects.
Many use hard money lenders. They charge higher interest rates than traditional lending institutions, but they offer some key advantages. They base approval on the purchase of property and other assets as collateral, and they approve much more quickly than a traditional bank loan.
Hard money loans are also not determined by a borrower's credit rating and they usually don't need standardized underwriting. But as noted earlier, you pay higher interest rates — often in the double-digits.
They do have a major pro, however. Hard money loans allow you to finance your project and rehab before your home is in sale condition. If you plan carefully, you can repay the loan and reap a good post-sale profit after you account for your interest payments.
If you're interested in flipping homes or investing in real estate, speak to a local real estate agent about hard money lenders in South Carolina. They work on real estate transactions every day and will guide you to reputable lenders.
Here's our guide to the best money lenders in South Carolina.
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Carolina Hard Money
Carolina Hard Money is a commercial mortgage lender for real estate investors and small builders. It offers hard money rehab loans and loans for ground up construction for investors in North Carolina and the Southeast.
It offers private capital loans up to 70% ARV (the estimated value of the property once improvements are completed) for single family residential properties. Borrowers can also obtain up to 65% ARV on multi-tenant commercial and mixed-use properties.
Loan terms are typically 12 months, but there are exceptions and extensions are possible. The origination fee for loans is 3% to 5% of the total loan amount and interest rates are between 9.99% and 13.75%. There are no prepayment penalties.
Lima One Capital
Lima One Capital is based out of Greenville and provides short-term fix-and-flip loans, along with long-term funding options for single-family and rental properties. It also has rehab and short-term interest-only financing for larger multi-unit properties.
It has a wide range of loans for investors wanting to buy a rehab property. Its fix-and-flip loan offers 90% funding for purchase and rehab costs.
The ARV for a loan is up to 75% and the length of the loan is 13 months. Lima One Capital also has a bridge plus loan for investors who want to purchase or refinance for resale or need a bridge loan for long-term financing.
Lima One offers a construction loan for those who own a fully platted lot that is free-and-clear and would like to build an investment residence or commercial building. Its ARV for funds is 70% and the loan term is 13 months.
Founded in 2006, Straightline Funding now provides hard money loans in Alabama, Florida, Georgia, and several other Southern states. It offers rehab loans, bridge loans for multi-unit residences, funding for new construction projects, and commercial property loans.
Straightline's one-to-four family residence loan provides up to 90% of the purchase price of the property and does not require investor real estate experience. Borrowers need to have a minimal credit score of 550. The loan is typically closed within 10 days.
Rates for bridge loans vary. For an LTV of less than 60%, Straightline charges 9% for people with a credit score of 750 or higher. But if your credit score is between 550 and 599, the interest rate for the same loan is 12%. That jumps to 15% for an LTV of 75%.
Coastal Equity Group
This lender is based out of Charleston. The company aims to be local, so it rewards return borrowers. Its website says that although it welcomes novice investors to apply for loans, return clients receive lower rates and higher loan-to-value ratios.
The company's loans are based on the asset's after appraisal value. They lend up to 75% of the ARV and pre-approvals can occur in as little as one day. Closings also don't take long and can occur within 5 days.
Interest rates vary depending on the size of the loan. They typically range from 10% to 14%. The maximum loan amount is $1,000,000, and the minimum is $50,000. Origination fees are usually between 2% and 4%. Terms of the loan are typically between 6 months and a year.
Charleston Private Lending
Charleston Private Lending offers loans of up to 100% financing and closings within a week. Its loans do not require minimum credit scores. The loans are interest-only payments and the lender does not charge prepayment penalties. It also provides same day pre-approval letters.
Charleston Private Lending has a simple four-step process. There's the evaluation where you tell the loan officer about your project and experience. The application gathers all necessary documentation. Processing is done in house. And the closing is done quickly. If the borrower meets all requirements, the company will release the funds in a matter of days.
Ask a Clever Partner Agent About Financing Your Investment Property
Whether you're an experienced investor or a new hand at real estate, it's essential to work with a professional agent when you want to buy an investment property. Clever Partner Agents know local market conditions and can help you determine where the best opportunities are.
They can also put you in touch with good contractors for fix-and-flip properties. Most importantly, they can guide you to reputable hard money lenders if you need fast and convenient financing.
Clever partners with top real estate agents from major companies like Keller Williams, Century 21, and RE/MAX. They are all full service and will help you target your investment dollars for maximum return.