For the last two years, Charlotte’s real estate market has been a sellers market, which means that there are more people looking to buy than there are homes available. Property prices continue to rise and it hasn’t stopped people from buying. You might be eager (as you should) to tap into Charlotte’s real estate market and need the right financing to do so effectively. Hard money lenders offer a flexible alternative to traditional bank loans, especially when working with unconventional properties or when timing is crucial. In this article, I’ve listed the best hard money lenders in Charlotte so that you can secure funding for your next investment without losing your mind.
My List of the Best Hard Money Lenders In Charlotte
- Loan Mountain Capital – (my pick, fast and reliable)
- Carolina Capital
- Lima One
- Alfie Loans
1. Loan Mountain Capital
Loan Mountain Capital is a hard money lender based in Asheville, North Carolina. They earn first spot on my list for being the fastest hard money lender servicing Charlotte. The founders were real estate investors but, after experiencing delayed draws and slow closing times, they realized they could do a better job. After years perfecting their processes, they now offer the fastest pre-approval and closing times in the Southeast. Equally important, their draw schedules are reliable and should help you avoid awkward conversations with contractors awaiting payment. Unless you need access to deeper pockets for big projects, I strongly believe Loan Mountain Capital is your best bet.
What to expect:
- Fastest closing times: assuming your documentation is in order, you can expect a 30-minute pre-approval and a 24 -hour close.
- Relationship Driven Lender: they believe their business is built on their clients’ success. As such, they’ll want to build a strong relationship with you and will go to great extent to help you thrive.
- Competitive Terms: good loan terms if you need a fix and flip loan, new construction loans, or bridge loans. Their interest rates average between 11% and 12%, with no hidden fees.
Loan Mountain Capital is a solid option for most investors–with a few caveats. First, as I mentioned before, Loan Mountain is not suitable for larger projects since they offer loans of up to $1.5 million. Second, while their rates are competitive with the industry’s standard, they’re not the cheapest option out there. However, when you evaluate a lender, you should take into consideration hidden fees, points, and waiting times in addition to the interest rate. Loan Mountain has no hidden fees, no origination points, and offers the fastest service in Charlotte. You get what you pay for, I suppose.
2. Carolina Capital
Carolina Capital is hard to describe because there’s nothing about them that stands out, they’re just decent at everything. Located in South Carolina, they’re technically not local but have plenty of experience working in the local market. They also service other states, like Georgia and Virginia, but are specialized in the Carolinas. I believe they deserve second place because they perform well where it matters–good loan terms, solid customer service, and relationship-focused. However, they do have one (big) kryptonite: speed.
What to expect:
- Great customer service: they serve as consultants for investors, so they’ll help you locate and structure transactions. They also have good response times.
- Good, flexible terms: they finance up to 90% of the purchase and 100% of the rehab for fix and flip loans. For new constructions, up to 85% LTC and 12-month terms. And if you are looking for long term financing, you should expect a 7% fixed, up to 75% LTV, and 30-year loan terms.
- Long closing times: with a 10-day average closing time, don’t expect Carolina Capital to be the fastest hard money lender in Charlotte. Once you close, however, their team is responsive and helpful.
Do keep it in mind that Carolina Hard Money requires 3-3.5 points on most loans with an interest rate upwards of 11.9%. They lie on the expensive end of the market, and unlike Loan Mountain Capital, they do not offer the benefit of fast funding. However, they still make it on the list because of their customer service, deeper pockets (up to $5 million loans), and local experience.
3. Lima One
Lima One is a national, fully-capitalized, direct lender ideal for high-leverage hard loans. I usually don’t recommend working with national lenders because you’ll often find yourself talking to a robot instead of a human being when issues inevitably arise. However, Lima One has two things going for them. First, they have fast and reliable draw schedules–with an average 4-day draw, you’ll avoid pissing off contractors with delayed payments. Second, they offer high leverage loans with low interest rates.
What to expect:
- High-Leverage Fix and Flip Loans: if you’re an experienced real estate investor, you’ll appreciate Lima One’s up to 92.5% LTC, 8.45% interest rates, and origination deferment until you exit the property.
- Fast Draws: they guarantee a 4-day draw schedule if everything is in check. This is a big deal considering other hard lenders can take up to 14 days to release funds.
- National reach, local inexperience: even though they are headquartered in South Carolina, Lima One won’t offer the local expertise that a hard money lender in Charlotte could offer.
Lima One is not higher on my list because, unless you become their biggest client, you won’t build a strong relationship with folk at Lima One. They are a national lender with thousands of accounts spread across the United States–your $75k fix and flip isn’t exactly crucial to their bottom line. However, this is not to say that you’ll have a terrible experience with them. They actually have a decent track record and no online complaints about their customer service. So if you are an experienced investor ready to scale, low interest rates and high LTC make Lima One a solid option.
4. Alfie Loans
Alfie is one of the few local players that I can legitimately recommend. Founded in Asheville in 2015, Alfie is the “youngest” company on this list. They’ve, however, quickly earned street creds with an impressive $430M in originations and over 1,000 deals closed. What I like about Alfie is their transparency regarding the fees you’ll pay. They even have a loan calculator, which should help you evaluate the cost of the loan, including the origination points, draw fees, and interest rate.
What to expect?
- Transparency: Alfie is open about every fee that they charge, which is rare among hard money lenders. They charge $150 for each draw, a fixed $800 for documentation, and a 2% origination fee. Not exactly cheap, but honesty goes a long way.
- Local Experience: they specialize in the Carolinas’ real estate market, with a strong presence in Charlotte, NC. If you need a local partner, they’re a good candidate.
- Consistent terms: every Alfie loan has a 12% interest rate, no matter what. This could be good or bad, depending on how you look at it. If you think you are sitting on a great opportunity and deserve better terms, perhaps give Loan Mountain or Carolina Capital a shot before you give Alfie a call.
Alfie is a solid local option, especially because they have a solid track record characterized by transparency and relationship lending. They do lie on the expensive side and are not known for their expediency.
It’s up to you!
The best hard money lender is the one that best suits your needs and priorities. If you value speed and relationship lending above all, then Loan Mountain Capital is your best option out there. However, if you value customer service and support, Carolina Hard Money is a nice alternative. Lima One is a good national lender for investors looking to maximize leverage. And finally, if you want a guaranteed interest rate and fees, Alfie is a great option with local experience. Now it is up to you! Remember to contact a few hard lenders before taking the plunge.