South Carolina is the fastest-growing state. Yup, you read that right. In 2023, the state saw a 1.7% increase in net population, and that growth doesn’t seem to be slowing down anytime soon. Experts attribute this boom to South Carolina’s affordable housing, which is about 20% lower than the national average. Add in the low cost of living and a strong economy, and it’s no wonder so many people are drawn here.
If you’re reading this, chances are you see the same opportunity I do—now is the perfect time to get into the real estate market. But to get started, you’ll need access to capital. Any investor knows how tricky it can be to find reliable, affordable hard money lenders. Fret not–I’m here to help! Below is my curated list of the best hard money lenders in South Carolina.
1. Loan Mountain Capital
When it comes to hard money lending in South Carolina, Loan Mountain Capital earns the top spot. Known for its speed and reliability, they understand that timing is everything in real estate investing. They advertise a 30-minute hard loan pre-approval process and a 24-hour close, which is among the fastest in the hard money lending industry. While you might not always close within 24 hours, their process is significantly more streamlined than other hard money lenders.
Why Choose Loan Mountain Capital?
Simply put: speed and local experience. Based in Charlotte, North Carolina, they serve the Southeastern United States with a particularly strong presence in South Carolina . Their deep understanding of the local market dynamics allows them to provide tailored solutions to local visionaries like you and me (pardon my self-indulgence).
Key Benefits of Working with Loan Mountain Capital:
- Fast Approvals and Closings: With a 30-minute pre-approval and potential for a 24-hour close, Loan Mountain Capital offers one of the quickest turnaround times in the region. This speed has been a game-changer.
- Reliable Draw Schedules: Unlike lenders who over-promised and under-delivered, their draw schedules are surprisingly reliable. Having no issues to access funds is how all hard loans should be.
- Relationship Approach: They view their clients as partners, not just customers. They manage all loan servicing in-house and never outsource or sell loans to third parties.
- Flexible Loan Options: whether you’re financing a fix-and-flip, a new construction project, or a rental property, they have a hard loan for you. Their offerings include fix-and-flip loans with no appraisal required (6-12 month terms), new construction loans (9-18 month terms), and rental loans that offer up to 30-year terms without the need for an appraisal.
Things to Keep in Mind:
While Loan Mountain Capital offers competitive rates, they are not necessarily the lowest in the market. Interest rates generally range from 10% to 12%, depending on the specifics of the project. However, these rates come with the benefit of quick, reliable funding and a transparent fee structure with no hidden costs.
2. Backflip
Backflip has become a standout in the hard money lending scene for their unique blend of proptech and fintech that is helping investors find and finance real estate opportunities. They earn second place for their suite of algorithms that may help beginner investors find gems in their local market. Founded in Denver in 2020, Backflip is a relatively new company with a limited track record. This is another reason why they aren’t higher on my list–I wouldn’t bet my money that they’ll stay in business 5 to 10 years from now.
What Makes Backflip a Top Contender?
Technology and high leverage. They are one of the few hard lenders with a mobile app that provides the latest public record and MLS data. And if you are an experienced investor, you might be interested in their zero gravity loan option, which minimizes upfront cash requirements since everything is rolled into the loan repayment.
Backflip’s Loan Options:
- The Backflip Standard: the most popular loan option among borrowers. With interest rates starting at 10%, origination fees from 1.25%, and a maximum loan-to-cost (LTC) of 85%, it offers a balanced mix of affordability and leverage.
- Double Double: this high-leverage loan includes both 1st- and 2nd-lien loans (also known as mezzanine financing), designed to minimize cash-to-close and maximize leverage. Interest rates at 13%, origination fees of 2%, and a max LTC of 93%. It’s best suited for transactions with a purchase price of $120,000 or more.
- Zero Gravity: aimed at minimizing upfront cash requirements during a fix and flip. This option features no upfront fees and no monthly interest payments, as everything is rolled into the loan repayment at the completion of the six-month project. Up to 96% effective LTC and a maximum loan-to-value (LTV) of 75%
BUT!
I’m not sure who their target market is… On the one hand, their app is useful to beginners who still don’t have a sophisticated approach to real estate investment. On the other hand, their loan options are not flexible enough for beginners–and the one loan option which is competitive (zero gravity), is only suitable for experienced professionals, who could probably benefit from relationship lenders that provide cheaper rates and more favorable terms over time.
3. Lima One
Lima One Capital was founded by two former Marines back in 2010 in Greenville, South carolina. Since then, they’ve expanded their reach across the country, serving states like North Carolina and beyond. I’ve decided to include them because of their local experience and competitive ratios. They also have deeper pockets than both Backflip and Loan Mountain Capital, with their largest loan of up to $3 million.
Why Consider Lima One Capital?
- Interest on Draw: You only pay interest on the funds you draw, not on the total loan amount. This flexibility can save you money if you don’t need the full loan upfront.
- Competitive LTV and LTC Ratios: For fix-and-flip projects, you get up to 92.5% LTC and 75% LTV. New construction loans can go up to 90% LTC and 70% LTV. Bridge loans are available with up to 80% LTV.
- Local Player: While they offer the benefits of a nationwide lender they also offer deeper insights into regional markets.
- No Personal Income Requirements: While they do check your credit score as a first-time borrower, once approved, their focus is primarily on the property’s underwriting.
Things to Keep in Mind:
- Strict Terms: Their high Loan-to-Cost (LTC) ratios mean you can finance a larger portion of your project with less cash upfront, but this comes with tighter terms. Expect higher interest rates or even additional collateral in some cases, as they aim to mitigate risk.
- Approval Speed: Getting approved with Lima One isn’t the fastest process—it typically takes around 10 days from start to finish. If you need funding faster, there might be quicker options out there.
If you’re an investor looking for a dependable lender with a broad reach and a solid track record, Lima One Capital is worth considering. Just keep their terms and approval times in mind when planning your next project.
Closing the Deal
If you’re like me, you might feel just as confused as when you first started reading. With so many hard money lenders, it can be tough to choose the right one for you. To simplify the decision, follow this thought process: Do you need money fast and reliably? Loan Mountain Capital. Do you want a seamless experience tailored for beginners? Backflip is perhaps the only option. Do you want a local partner in crime? Lima One is a solid option.
Hopefully now you are better equipped to choose the right hard money lender that suits your needs. Now go on and make some money. And remember, flip houses not fingers!
