Over 286,000 people travel through Atlanta, Georgia’s airport every single day, making it the wor ld’s busiest airport. Georgia is also home to several Fortune 500 companies (which means rich employees in need of housing).
High traffic and a strong job economy may explain Georgia’s ever-green housing market. According to Redfin.com, home prices in Georgia were up 3.3% year-over-year in July. At the same time, the number of homes sold rose 5.2%. Oh, and the best part? The median days on the market is only 38 days!
Georgia is full of opportunity. But in order to capitalize, you’ll need a solid (pun intended) hard money lender. That’s why, my dear Georgian, I have compiled a list of the best hard money lenders in Georgia.
1. Loan Mountain Capital
Loan Mountain Capital takes the top spot on my list for hard money lenders in Georgia. They understand the ins and outs of real estate investing like no one else. Timing, reliability, and a solid partnership are the holy trinity in this business, and Loan Mountain delivers on all fronts. They are headquartered in North Carolina, but their expertise in asset-based lending extends well into Georgia and throughout the Southeast.
Why Loan Mountain Capital Stands Out:
- Lightning-Fast Approvals: With a 30-minute pre-approval and 24-hour close, you won’t find a faster hard money lender in Georgia. While a 24-hour close isn’t always guaranteed (because, as you know, there’s always some hiccup in real estate), they consistently deliver one of the fastest closing processes I’ve seen in the industry.
- Reliable Draw Schedules: One of the biggest frustrations with hard money lenders is dealing with unpredictable draw schedules. Loan Mountain Capital, however, has a straightforward and reliable draw schedule.
- No-Nonsense Fees: Thankfully, they don’t have any hidden junk fees that pop up at the last minute. This transparency is refreshing and much appreciated.
- Relationship-Driven: It’s rare to find a lender that treats you like a partner, not just another transaction. These guys invest in long-term relationships, and you can feel the difference. They handle everything in-house, from servicing to loan management, so you’re always dealing directly with them.
- Flexible Loan Options: fix and flip loans, build new construction loans, or rental loans for single-family or multifamily properties (2-6 units).
Things to Consider:
- Loan Size Limits: Loan Mountain typically deals with loans between $50k and $1.5m. If your project is on either extreme of this range, consider whether their lending bracket aligns with your needs.
2. Corevest
Founded in 2014, CoreVest, formerly Colony American Finance, has quickly scaled to over $20 billion in funded loans and more than 150,000 units financed. They have plenty of local market experience which might explain their surprisingly wide range of loan products. Seriously, they have so many loan options, each with specific terms, that summarizing was challenging.
What Sets CoreVest Apart:
- Diverse Loan Products: CoreVest offers an impressive range of hard loan options. Whether you’re focusing on rental portfolios, short-term rentals, fix and flips, or ground-up construction, they’ve got your back. They can accommodate projects of all sizes and scales—from as little as $75k to well over $50M.
Loans and Terms
- Rental Loans: CoreVest provides fixed-rate loans for rental portfolios, including single-family rentals (SFRs), condos, townhomes, and multifamily properties. They offer 30-year DSCR loans and shorter-term portfolio loans.
- Bridge Loans: Fix and Flip (90% of cost, 6-24 months, $75K-$2M), Credit Line (up to 85% LTC, 18-24 months, $1M-$50M), 2-Year No Ratio Bridge (up to 100% LTC, 70% LTV, 24 month, no prepayment penalty , $75k-$2M).
- New Construction: Up to 85% of cost. 12 to 24 month term (via extensions). $250k – $2.5M
They also offer Build for Rent Loans, Multifamily Bridge and Multifamily Term. For more specific details, check their website. I’m sure they’ll have an option that matches your exact needs.
Things to Keep in Mind:
- Yield Maintenance on Term Loans: If you’re considering a term loan, be aware that CoreVest requires yield maintenance—up to 54 months on a 5-year note and 114 months on a 10-year note. This might not suit you if you might want to refinance or sell the asset before the end of the term.
- Exclusivity to Residential Assets: CoreVest strictly finances residential investment assets such as SFRs, small multifamily properties, townhomes, and condos. If your portfolio includes mixed-use properties with a retail component, you’ll need to look elsewhere.
3. ROC Capital
Securing third place on my list is ROC Capital, a big fish in the hard money pond. Since its launch in 2014, ROC Capital has carved out a significant niche in the market by providing institutional capital through its third party originator program. I took points off because they have a diversified business model, which usually means a less-than-personalized experience.
What Makes ROC Capital Stand Out?
- No Experience Required: For most loan types, you don’t need prior experience to qualify, which is great if you’re just starting out. Ground-up construction loans are the exception—they do prefer borrowers to have some experience, ensuring that projects requiring more expertise are handled competently.
- Deep Pockets and High Leverage: ROC Capital isn’t afraid to put their money where their mouth is. They offer aggressive leverage options—up to 90% of the purchase price and 100% of the rehab budget for fix-and-flip loans.
Loan Options
- Fix and flip loans: standard 12 months, with an 18-month option on a case-by-case basis. Up to 100% of the rehab budget covered. Up to 90% LTC of the purchase price. Up to 75% LTV of the after-repair value (ARLTV). Loan amounts range from $50,000 to $3.5 million. No prior experience required for borrowers.
- Bridge loans:12-month term, with an option to extend up to 18 months at lender discretion. Up to 85% LTC of the purchase price, plus verified completed capex if owned for less than six months. LTV up to 70% for FICO scores of 700 and above, and up to 65% for scores between 660-699. Loan amounts from $75,000 to $1.5 million (larger loans possible at lender discretion). Minimum FICO score of 660.
- Ground-up construction loans: 12-month term, with an option to extend up to 18 months at lender discretion. Up to 75% LTC of the lower of land value or purchase price; up to 85% of total project costs. Loan amounts from $50,000 to $3.5 million. Previous real estate experience required; general contractors must have relevant experience with permitted projects.
- Rental loans: Up to 30-year fixed-rate mortgage or hybrid ARM terms available. Up to 80% LTV for purchase and refinance loans; up to 75% LTV for cash-out refinances. Minimum FICO score of 680, with a required debt service coverage ratio (DSCR) of at least 1.20x. Loan amounts up to $2 million. Minimum 90% occupancy rate by unit count for rental properties, and entity required.
Considerations
There’s a couple of things you want to keep in mind before choosing ROC Capital for your next project. First, their Third Party Originator program may raise questions about the source of capital. Since ROC Capital operates through a network of origination partners and pools money from multiple investors, this could potentially slow down the funding process compared to direct lenders who control their own funds. Additionally, while their terms are aggressive, their rates may not always be the most competitive, especially when considering their requirement for full recourse on all loans.
Another factor to consider is their borrower requirements, particularly the minimum FICO score for bridge loans and rental loans, which is set at 660 and 680 respectively. This could be a barrier for you. Finally, while they promise aggressive leverage, the higher LTVs are contingent on having a higher FICO score, which means not all investors will qualify for the most favorable terms. Talking about investors, check out our curated list of investors worth following.
Hard to say goodbye!
A hard money lender can mean the difference between a great, profitable experience and a failed investment. Hopefully, after reading this article, you feel better equipped to choose the right lender for you.
A quick recap: if you need speed and reliability, Loan Mountain Capital is the right choice. Need deeper pockets for large projects? Corevest, no questions asked. Do you have a high FICO score and could benefit from high leverage hard loans? ROC Capital could be a great option.
My job is pretty much done, now it’s up to you. Good luck on your next venture!
