Hard money lenders in North Carolina are an opportunity for investment property buyers to access loans for rental property and residential real estate projects.
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North Carolina sits on the Atlantic Ocean in the southern portion of the country. It is a larger state that’s known for cities such as Raleigh, Charlotte, and Halifax. There’s a lot of history in this state, too, dating back to the original 13th colonies. That aside, today, North Carolina is a modern state with a wide range of benefits to those who live here. Portions of the Appalachian Mountains are in this area, providing excellent skiing and hiking opportunities. There’s also the Atlantic coastal plain which offers some of the best beaches in the region. It’s also a large city by population as it’s home to 10.5 million people in areas like Asheville, Winston-Salem, Greensboro and Durham. Its economy is diverse, accounting for hydroelectric power generation, technology, and agriculture. It is one of the largest areas of farmland and has a strong tourism appeal as well.
When it comes to living here and purchasing real estate, North Carolina home buyers will find a highly diverse real estate market. There are some areas of much higher value than others, with more rural portions of the state typically having home values that are much lower. The average purchase price of a home in North Carolina is $300,000 according to the North Carolina Realtors Association. That’s a bit higher than the national average but well below what some other coastal states’ values are. Like much of the country, home values have risen in the last ten years thanks to a low inventory of new homes and affordable mortgages.
The U.S. Census Bureau states that 68.5% of people in the state own their homes, and 31.5% rent their homes in North Carolina. That’s around average or a bit below in terms of home ownership. There are some areas along the coast where rental incomes and second homes are common. Of the available rentals in the state, 5.2% of them are vacant. For those who are looking at the state for its rental income benefits, that’s a good sign. And, with its tourism benefits, communities near the coastline tend to be excellent options for short-term rentals.
Hard money loans are a type of financial, real estate tool designed to provide borrowers with access to competitively priced loans when other traditional lenders are unwilling to lend. Hard money lenders are private money lenders in North Carolina that provide funds to purchase a range of home styles, including rental income properties, fix and flip residential properties, and commercial real estate development properties. Most traditional lenders do not typically offer loans on these properties because of the higher risk involved with them, but hard money lenders are more likely to do so.
Keep in mind that nearly all hard money loans in North Carolina are asset-backed loans. Like most mortgages, these loans are secured by the property, and the home works as collateral should the property owner default on the loan. There is a significantly higher level of risk with these loans than with traditional residential loans, though. That’s why this type of asset-backing is so critical to hard money lenders. If borrowers default, the lender can pursue foreclosure legally, allowing them to get back some of the investment they make into the loan.
Keep in mind that most hard money loans are short term. They offer loans from 1 to 5 years. It is expected that borrowers will have refinanced rental income properties or other investment deals within that time. In the case of fix and flip homes, it is expected that the borrower will have fixed and upgraded the home, sold it, and repaid the loan with the proceeds.
If you’re ready to learn more about the best hard money lenders in North Carolina, here are the top options we’ve found through our research.
BridgeWell Capital got started in 2008 and, according to their website, has funded over $500 million in real estate investment deals. They lend throughout the midwest and eastern part of the country and offer the typical suite of private money financing.
We contacted BridgeWell Capital to learn more about their private lending business and here are some of the highlights:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
Lima One Capital is based in Greenville, South Carolina and founded by former Marines. They lend throughout the United States and offer typical private money lending products like Fix and Flip, bridge loans, construction loans, rental loans and multi-family loans.
We contacted Lima One Capital to learn more about their private lending business and here are some of the highlights:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.
We reached out to EquityMax to learn more about their hard money loans and these are the key highlights that you need to know:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.
We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.
We reached out to HouseMax to learn more about their hard money lending program and here is what we found:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.
We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.
We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:
When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.
North Carolina hard money lenders offer competitive loans when most other lenders do not offer them. This makes these loans some of the best options for borrowers today. Keep in mind, too, that lenders will charge more for these loans, often between 8 and 15 percent in interest, and there could be higher fees. Yet, the benefit here offsets that in that these loans are short term and readily accessible to many qualified borrowers when other lenders are not.
Most often, the property purchased through these loans has significant repair needs or may have the potential to sell at a much higher level if they are renovated. For that reason, North Carolina hard money loans are often based on the after repair value of the property rather than the current value of the home. That’s key since many of these loans are hard to finance otherwise because of their condition. Lenders also set the terms and conditions for these loans.
Take into consideration that these loans have fewer requirements, such as fewer obstacles to obtaining the funds. Some lenders have lower credit score requirements. While it is common for the loan to value ratio to be under 80 percent in typical loans, many lenders with hard money loans will offer loans under this value, even at a much lower down payment.
They also are more willing to loan above the home’s value to provide the borrower with the money needed to make repairs on the property. This, along with a fast close that could happen in under 30 days, makes this type of loan an excellent choice for many investors looking at borrowing to buy investment real estate in North Carolina.
If you want to find the best hard money lenders in other states, click on your state below.
Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.
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