8 Best Hard Money Lenders in South Carolina

South Carolina sits on the Atlantic Coast, bordered by the Savannah River. The state is home to around 5.1 million people, with the largest density of people living in the Greenville – Spartanburg – Anderson metro area. It’s a beautiful area with warm weather throughout much of the year. This subtropical highland climate, along with the coastline, has made South Carolina a popular tourist attraction.

The state is also home to the Sea Islands, a number of barrier islands in the ocean. While tourism makes up some of the state’s economy, it is also noted for its media, transportation, and healthcare industries. It’s home to numerous colleges, including the University of South Carolina, Furman University, and The College of Charleston, which was founded in 1770.

A vibrant place to live, South Carolina can also be rather affordable with a moderate cost of living. Home buyers here can expect to see a volatile market in some situations. Not only does the area attract a large number of second home buyers and short-term rental owners, but home values have been on the way up over the last few years.

The median sale price of a home in South Carolina is currently $273,000, according to the South Carolina Realtors Association. Some areas of the state may be far less. Home styles range from large, single-family homes to apartments, condos, and townhomes. Beachfront property is some of the most desirable in the region and the most expensive.

The U.S. Census Bureau notes that 76.6 percent of people here own their homes, and 23.4 percent rent them. That’s a high level of ownership and may indicate there is less demand for traditional, long-term rental property. About 6.3 percent of rentals in the area are vacant. There could be room for additional investments in some areas.

How hard money loans work

One way investors may wish to buy homes and multifamily properties in this area is through the use of a hard money loan. A hard money loan in South Carolina is available through various private investors and groups of private investors. These professionals come together to offer asset-based loans to borrowers who meet their qualifications on properties that are typically hard to finance otherwise.

This may include fix and flip projects, bridge loans for new developments, and rental income properties. There is more risk associated with these loans, which means home buyers are likely to pay more in higher interest rates and fees compared to other types of asset-based loans.

When it comes to hard money lenders in South Carolina, there is some level of security present. These loans are asset-backed loans which means the value of the property helps to guarantee the loan for the lender. If a home buyer defaults on that loan, the lender can foreclose to get back some of the money they put into the home.

That helps to defray some of the risk to the lender. Also important is that these loans typically are for 1 to 5 years, not long term. For lenders, that means they can count on getting their money back in hand quickly.

Most hard money loans are used for fix and flip homes or rental properties that need a significant amount of renovation and improvement. The lender offers the loan based on the after repair value (AFV) of the property in most cases. This allows the borrower to obtain the funds they need quickly to buy the real estate. The higher interest rates may be offset by these types of benefits which are generally not available through traditional big banks.

8 Top South Carolina hard money lenders

If you’re in the market for a real estate investment project in South Carolina, consider these hard money lenders that are available for projects in the state.

1. BridgeWell Capital 

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:

• Rental loans require 25% down
• Residential and commercial properties ok
• No tax returns or income verification
• 5-year rental loan term
• Fix and flip loans can cover 100% of rehab costs
• Up to 75% ARV
• No interest on undrawn rehab funds
• No pre-payment penalty

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.

2. Lima One Capital

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:

• For Fix and Flip loans, up to 90% LTC and 70% LTV for loans from $75K to $3 million
• 12, 19 and 24-month terms available
• Interest only loans
• For Fix and Rent loans, can finance single properties or portfolio loans with 5, 10, 30-year term options available
• For rental property, can fund loans from $75K to $1 million up to 80% LTV on purchases and refinances.

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.

3. HouseMax Funding

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:

• Minimum loan amount is $75,000
• Lends up to 75% of the after-repair value (APV)
• 1-3 points origination charge
• 3 months reserves required
• Direct lender that approves loans internally and funds using their own private capital.
• Lends in urban and suburban communities in all 50 states.
• Goal is to close loans in 10 days or less.
• Specializes in fix & flip loans, construction and rental loans
• Multi-family and commercial properties are ok

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.

4. LendSimpli

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:

• Loan amounts up to $5 million for 1-4 unit properties
• Loan amounts up to $20 million for 5+ unit properties
• Single family (1-4 units)
• Multifamily (5-20 units)
• No owner-occupied properties
• Loan terms 12-24 months
• Interest-only payments with rates starting at 8.50%
• Max LTC is 90% of project costs
• Minimum credit score is 660
• Prefer that you have at least two transactions in the past three years

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.

5. Fund That Flip

Fund That Flip is a hard money lender based in New York that focuses on short term bridge loans for real estate investors looking to flip properties. Founded by Matt Rodak in 2014, Fund That Flip lends in most states.

We contacted Fund That Flip to learn more about their bridge loan program and here is what we found:

• Up to 80% LTC and 70% ARV ratios for your project
• Rates start at 9.99%
• Direct lender with discretionary capital
• Construction projects ok
• 10% down payment required

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.

6. EquityMax

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:

• Single Family Homes
• 1-4 Multi-Unit Properties
• Condos and Townhomes ok
• Commercial property and Industrial Warehouses OK
• Direct lender that has decision making over financing deals.
• Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
• No prepayment penalties
• No minimum credit score required

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.

7. Easy Street Capital

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:

• Interest rates range from 6.9% – 10.9%
• Points range from 2-3
• There is a $1495 document fee
• No minimum credit score required
• Down payments of at least 10% required
• Renovation financing ok
• Fix and Flip loans do not typically have prepayment penalties

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.

8. Stratton Equities

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:

• Loan amounts from $100,000 up to $5 million
• Investment properties only
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV
• Rates start at 7.25%
• Interest only payments
• Loan terms are 9-24 months
• Foreign nationals are eligible
• No prepayment penalty option is available

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.

Pros/Cons of South Carolina hard money loans

Should you use South Carolina hard money lenders? If you qualify for a lower interest rate loan for the property you wish to buy, then you should not use hard money loans due to the higher costs. However, there are other reasons to consider them.

Pros

These loans are often available when other types of real estate loans – such as government backed or conventional loans – are not. There are fewer restrictions and limitations on these loans, as well as less oversight, making them more accessible to borrowers.

They are also designed to be based on after repair value of the home. That is much unlike a traditional loan. For borrowers, that’s important because it may mean less money coming out of the borrower’s savings to fund the work.

Shorter terms of 1 to 5 years help to reduce overall costs while also helping to ensure investors can get out of these loans sooner. Also, most of these loans can close faster, often within 30 days, instead of the 60 to 90 that it typically takes for a traditional home loan to close.

When you’re looking at private money loans, compare them to the alternatives. You’re taking on risks in new construction, but much fewer risks than a fix and flip property. So the lender has to feel confident that they have a chance of recouping their investment, and you do, too. If you work quickly and feel confident that you can make necessary repairs, this is a good choice, especially if you don’t want a traditional loan or to have to refinance another property to come up with the cash. If you’re organized, underwriting can be simple, too, but you need to find th right mortgage broker to help you in your hard money loan process for buying residential real estate.

Cons

There are some limitations with these loans. The biggest of them is the much higher interest rates. These range from 8 to 15 percent for many borrowers, and fees associated with the loan may be high as well. For some people, traditional loans or new construction loans just aren’t an option for covering the purchase price of residential properties.

Lenders set their own terms and qualifications, which means some may require a large down payment while others may not. Some may have more strict qualifications of borrowers, too, such as having a good credit score and some experience managing rental properties. Yet, these lenders tend to be far easier to work with than big banks, even in these situations. The lender can also force the property into foreclosure if you don’t stay current on the loan. Make sure you real through all these details on a short-term loan like this, since it does give the private money lender the opportunity to take action relatively quickly if you default.

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