The city of Asheville, North Carolina, has experienced significant growth over the last few years. According to Canopy MLS, property listings increased by 14% and the average property sales price has increased by at least 10%. That growth took place this year alone. It’s a great time to be invested in Asheville’s real estate–but you probably knew that already.
If you’re considering investing, or if you are currently working on a project, you’ll need a steady source of cash. Hard money lenders may help you finance your investments and turn your visions into reality. But not all hard money lenders are made equal. That’s why we’ve curated a list of the most reliable hard money lenders in Asheville, North Carolina.
1. Loan Mountain Capital
Loan Mountain Capital, founded by homebuilders and real estate investors, has over 35 years of expertise in construction and real estate. Based in Charlotte, North Carolina, this private credit fund specializes in asset-based lending and short-term real estate financing across the Southeastern United States. Loan Mountain Capital combines deep industry knowledge with a strong regional presence.
What sets them apart:
- Speed of approval: with a 30 minute pre-approval and a 24 hour close, Loan Mountain Capital has one of the quickest approval rates of all hard money lenders in North Carolina.
- Fast and reliable draw schedule. This one is crucial. Many hard lenders advertise easy access to funds but client reviews tell a completely different story. It’s refreshing to see that Loan Mountain Capital is an exception.
- Relationship Lenders: unlike larger firms, they like to build long-lasting partnerships with their clients. They also never outsource loan servicing nor sell loans to third parties, which is always welcomed.
- Wide range of loan options: fix -to-flip, bridge, single and multifamily rental properties, and new constructions. They probably have what you’re looking for.
Something to keep in mind:
- They only close loans between $50k and $1.5m. If you are working on projects that require deeper pockets, you might want to consider a larger firm. However, for most individuals, the benefit of working with a local, relationship lender outways any potential downside.
2. Lima One
Lima One Capital, founded by two former marines, is headquartered in Greenville, South Carolina. They founded Lima in 2010 and have since expanded their operations nationwide, including North Carolina. We chose Lima One as the second best hard money lender in Asheville because despite not being “local”, they have great customer service, acceptable loan terms, and lots of experience in the industry.
Lima One Capital Highlights:
- Interest on draw: pay interest only on what you draw, not on unused funds
- Good LTV and LTC: fix-to-flip has a 92.5% LTC and 75% LTV. New construction loans have up to 90% LTC and 70% LTV. Bridge loans up to 80% LTV.
- Flexible Loan Terms: 13, 19, and 24-month term options for construction loans. 5, 10 and 30-year term options for the rental loan.
- No personal income requirements. They do check credit score for first time borrowers, but once you’re approved, they only need to underwrite the property.
A word of caution:
- Strict Terms: Loan to Value (LTV) and Loan to Costs (LTC) are metrics used in real estate and construction financing to compare the loan amount to the total cost of a project. A high LTC, for example, means the borrower is financing a larger portion of the project’s total cost through the loan. This can be beneficial if you have limited cash or want to retain more capital for other investments. However, lenders view a higher LTC ratio as riskier and thus may impose stricter terms, higher interest rates, or require additional collateral to mitigate their risk.
- Speed of approval: their average time from initial submission to borrower approval is about 10 days. If you are in a rush, there are better options out there.
- Not Local: working with a nationwide lender has its perks, but nothing beats the experience of local lenders. Local lenders know the challenges specific to your city and state, as well as could accurately interpret the potential of your project. However, out of the nationwide lenders, Lima One is a good option.
3. Alfie
Alfie operates as a private debt fund focused on construction lending. Founded in Asheville in 2015, the fund gathers investor capital to offer short-term construction and bridge loans to builders, developers, and real estate professionals throughout North and South Carolina.
Key highlights
- Interest on draw: pay interest only on what you draw, not on unused funds
- Local Experience: CEO and founder Jon Sarver has brokered over $75 Million in commercial and residential real estate in his career. Recently, Jon assembled a series of historic buildings with an eye to preserving the character of traditional Asheville.
- Fixed Interest Rate: all Alfie loans are set at a fixed 12% interest rate. This can be considered both, a perk or a downside.
- Lenient construction financing: up to 100% construction financing, including soft costs.
Downsides:
- Speed of approval: average 2-3 week closing timeline (subject to borrowers attorney’s closing schedule).
- Fees and more fees: 2% origination fee (can be rolled into loan at closing), $800 documentation fee, and a $150 draw fee for every draw.
- Limited Loan Terms: 12 month loans only.
- Documentation requirements: you need to provide evidence of your ability to service the monthly debt. This includes a credit check, personal finance statement, building permits, and BPO. Tax returns not required.
- Not an option for beginners: Alfie only loans to borrowers with “sufficient experience” in real estate development or investment. Instead consider Loan Mountain Capital if you are starting out and would like to partner with a local lender.
4. Lynk Capital
Lynk Capital is an established private lender offering residential renovation, construction, and rental loans across the country. Headquartered in Raleigh, North Carolina, they have first hand experience in the local market. Both clients and employees have left great reviews on indeed and hardmoneyhome.com, describing the team as a group of competent, responsive professionals.
Key Highlights:
- Deeper Pockets: loans range between $100k and $5mil. They might be a good option for ambitious projects.
- Flexible Loan Terms: up to 18 months terms for fix & flip and construction loans, and up to 30 years for rental and bridge loans.
- Credit score is not a dealbreaker: they approve borrowers based on the quality of the property, the experience of the borrower, and the overall likelihood that the project will be successful. While they do review credit history, it is not a primary requirement and many borrowers with damaged credit are able to be approved.
Things to consider:
- Speed of approval: Lynk has the slowest closing time of all the companies featured here. They take 10-20 days to close construction loans, fix & flip close on average in 7-10 days, and rental & bridge loans can take up to 30 days to close.
- Not the quickest draw: according to several online sources, the average draw process for most hard money lenders is anywhere between 1-2 days. Lynk, however, claims to have an average draw time of 3-5 days.
- Low Interest, Low Ratios: while they do offer lower starting rates than their competitors, they mitigate risk by offering lower LTC and LTV. Construction rates start at 11% with an 85% LTC & 65% LTV. Fix & Flip rates start at 10% with a 95% LTC & 70% LTV. Finally, rental & bridge rates start at 6.75% with up to 80% LTV.
Hard money, soft landing
After extensive research, we are confident that the hard money lenders in this list will satisfy the needs of most property investors.
If you want speed and efficiency, Loan Mountain is your best bet. If you want longer loan terms, Lima One is a good option. Alfie is a good choice for those of you who want a fixed interest rate regardless of the loan. And if your main concern is getting the lowest interest rate regardless of draw times, then Lynk Capital is a good alternative.
So there you have it—Asheville’s real estate scene is overflowing with opportunity and, with the right hard money lender, it is yours for the taking.
You might also be interested in our article on acquisition financing options, you know, for when you are ready to expand your operations!
