Succeeding in Atlanta’s real estate market requires more than just enthusiasm; it demands the right financial backing. The city’s unique mix of rich culture and rapid growth offers abundant opportunities–but only if you are prepared to seize them!
Securing funding from hard lenders who know the local market can make all the difference. In this article, I share my list of the best hard money lenders in Atlanta so that you can focus on building, not financing.
Top hard money lenders in Atlanta:
Loan Mountain Capital: fast and reliable lender
Two words best describe Loan Mountain Capital: speed and reliability. By far the fastest lender I have come across, with a 30-minute pre-approval and a 24-hour closing time. Of course, these times are contingent on your documentation being ready and up-to-date. That being said, they offer reliable draw schedules and don’t have any hidden fees to scare you away.
The only major drawback is that they are located in Asheville, so you won’t have the pleasure of meeting with an agent in person (to me, this is actually a perk, but to each their own). Despite not being a local lender, they have lots of experience working in the South East, with a particularly strong presence in Georgia. Their customer service is also top notch, and since they are a relationship lender, future loans will come with benefits such as quicker closing times and lower interest rates.
Who is Loan Mountain for?
Loan Mountain is a great option for first timers and seasoned investors alike. No minimum FICO score, no required previous experience, lots of loan options at competitive rates, and the longer you work with them, the better your loan terms. Oh, and did I mention they can get you funded faster than just about any other lender in the U.S.?
CoreVest:
CoreVest is a nation-wide lender that has financed over 20 billion dollars in hard money loans since 2014, establishing itself as a market leader. CoreVest stands out for extremely flexible loan terms and conditions. They offer traditional fix and flip loans with either fixed or floating rates, credit lines of up to $50 million, 2-year bridge loans not based on DSCR, and several others. If you need a loan, they probably have an option that perfectly suits your needs.
That being said, there are several reasons why I tend to avoid recommending nation-wide hard money lenders. First, they lack local expertise. Atlanta’s real estate regulations may present challenges to which a national lender might not be privy (or empathetic). Second, local or regional lenders can treat you like a partner rather than a client. A national lender on the other hand, is less likely to be as invested in your success.
CoreVest earns second spot because even though they are not as quick as Loan Mountain Capital, you can expect to close within a week or two and they have plenty of loan options to choose from.
Who is CoreVest for?
Just about anyone, but with a maximum of $50 million dollars for rental loans and up to $30 million build-to-rent, they are best suited for investors with big projects and bigger dreams.
ROC Capital:
ROC Capital have made a name for themselves thanks in part to their originator program, where independent loan originators source potential borrowers for a commission. This program has allowed the company to scale quickly. But what does this mean to you? Since third party originators make money when you sign the papers, they are incentivized to be attentive and supportive throughout the loan process. They are also, however, incentivized to be extremely persistent.
That being said, they do have aggressive leverage options and a wide selection of loans. They offer up to 90% financing on purchase price and cover up to 100% of rehab costs for fix and flip loans. No prior experience is required for most loans, with ground-up construction loans being the exception. They’re also relatively flexible, with bridge loans being extendable up to 18 months and rental loans with up to 30-year fixed-rate mortgages or hybrid ARM terms. Oh and interest rates start at 9.25% for fix and flip loans and 5.4% for rental loans!
Who is ROC Capital for?
Since they have low interest rates and no prior experience requirements, ROC Capital is a solid option for most investors. However, there are two major considerations: FICO minimums and max loan amount. They cap their loans at $3.5M, which is more than enough unless you are a real estate whale. If you have a low FICO score (anything below 660), ROC Capital won’t take your business, in which case Loan Mountain Capital is your best option.
Carolina Capital:
Carolina Hard Money earns its place on my list as a solid option for newbies to real estate investing. While they may not offer the most affordable loan terms or win awards for funding speed, they excel in transparency and customer support. They have strong company values—fees, points, and expected interest rates are transparently displayed on their website and fully disclosed before you sign anything.
When it comes to loan terms, they do tend to be on the more expensive side, charging around 3 to 3.5 points on most loans. For fix and flip loans, they offer up to 90% of the purchase price and 100% of rehab costs, with interest rates starting at 11.9%. New construction loans are available with up to 85% loan-to-cost (LTC), and terms extend up to 12 months.
Who is Carolina Hard Money for?
They have great customer support and are willing to guide you through the loan process, making them an excellent choice if you’re seeking a lender who will be responsive and easy to work with. Another advantage is their capacity to handle larger loan amounts compared to some local lenders, offering financing up to $5 million.
Lima One:
Lima One is another Southern hard money lender that has a solid track record in Atlanta. The company was founded by former Marines and, given their recent growth, its clear military work ethic translates to real estate investing. But that’s not why they made it into my list. Lima One is one of the best hard money lenders in Atlanta because they offer a good balance between competitive loan terms and regional experience.
Key advantages of working with Lima One include interest only payments, no prepayment penalties, high LTC and LTV ratios, and no personal income requirements. Their high loan-to-cost ratio means you can finance a larger portion of your project with less cash upfront, but you may incur higher interest rates as a result. Another thing to keep in mind is that getting your loan approved with Lima One takes about 10 days, so if you are on a tight schedule, consider another lender.
Who is Lima One For?
Lima One is an excellent choice for investors who want to maximize leverage. Starting at 8.45%, they have the lowest starting interest rate for fix and flip loans out of all the lenders on my list. However, if you negotiate higher LTC and LTV ratios, the interest is likely to increase exponentially.
What to look for in a Hard Money Lender
Choosing the right hard money lender can be confusing, so here are the key factors to consider:
Speed and Efficiency
Quick Funding: Choose lenders known for swift approvals and disbursements.
Streamlined Process: An efficient application process saves time and hassle.
Experience and Reputation
Local Expertise: Opt for lenders familiar with the Atlanta market.
Proven Track Record: Look for positive client reviews and successful project histories.
Transparent Terms and Fees
Clear Costs: Ensure all fees and interest rates are disclosed upfront.
No Hidden Charges: Avoid lenders with ambiguous or undisclosed fees.
Flexible Loan Options
Customized Terms: Seek lenders offering loan terms tailored to your project.
Competitive LTV Ratios: Higher loan-to-value ratios can maximize your financing.
Communication and Support
Responsive Service: Ensure the lender is accessible and communicative.
Professional Guidance: Benefit from lenders who offer expert advice.
Legal Compliance
Proper Licensing: Verify the lender is licensed in Georgia.
Ethical Practices: Choose lenders who adhere to legal and ethical standards.
Now you are qualified to find a hard money lender that aligns with your financial needs and investment goals in Atlanta’s competitive real estate market. Choose wisely and good luck!
