I’m in a constant search for real estate investment opportunities in up-and-coming locations, and North Carolina currently checks all the boxes. For many investors and builders such as myself, however, finding financing for construction is not an easy task. Enter hard money loans.
I’ve rounded up an extensive list of the best and most reliable private lenders in North Carolina to make it easier for you to find the right partner. To determine my top picks in the state I delved a little deeper by looking into loan terms, closing speed, and reliability. Learn more about them below:
1. Loan Mountain Capital
Loan Mountain Capital continues to be my top hard money lender choice in North Carolina for a reason. Despite being in the market for over 3 decades, they are still very much the hard-lender-next-door. Their local, in-house team focuses solely on providing financing to builders and fix and flip investors in North Carolina.
What we like most about Loan Mountain Capital, aside from their speed in moving things forward, is how they view their relationship with builders. They work with you in true partnership to find solutions up to the final payoff. Below are some of their highlight:
Real people that care, no outsourced teams
Unlike many hard money lenders that operate like large banks, you can expect personalized, attentive service from Loan Mountain. Their community-focused teams are located in most major cities in North Carolina, with headquarters in Charlotte, and their priority is to be available to you whenever needed.
Closing speed & reliability
In construction, time is of the essence. This is where Loan Mountain really excels. Be prepared to know if you’re approved quickly, many times in as little as 24 to 48 hours. What’s great is they focus on the value of your project, more so than your credit score, to determine if you are qualified.
Loan terms & highlights
- They are the go-to single-family residential fix-and-flip lender, but also offer acquisition bridge and new construction loans.
- Approval in as little as 24 hours
- Private loans range from $50k to $1.5M
- 6-12 month terms
- Interest rates range between 11.8-12% depending on the project’s scope and potential.
2. Alfie
Based in Asheville, Alfie has been offering short-term loans since 2015 to builders and real estate entrepreneurs in North and South Carolina. They pride themselves in having a community-first philosophy, working closely with borrowers to make sure their projects are successful. I’m including some of their highlights below:
- Interest-only loans based on funds drawn
- 12% fixed interest rate on all loans
- 12-month term
- Closing time after approval is typically 2-3 weeks
- Unlike many other hard lenders, Alfie offers up to 100% financing for new construction, including soft costs
3. Lima One Capital
Although based in Greenville, South Carolina, Lima One Capital lends throughout the United States, including North Carolina. Founded by marines and now with a team of over 200 people, they are capable of moving quickly to quote and service loans. Some of their highlights include:
- Their main loan products are fix and flip, rental property, and multifamily bridge lending.
- Available terms: 12, 19 and 24-month terms
- 5, 10, and 30-year term options for rental loans
- A fix and flip loan can range from $75K to $3MM
- You can expect an approval speed of under 10 business days
A standout with Lima One Capital is that once your line of credit is approved, they would only need to underwrite your next properties before funding, not the borrower.
4. Carolina Capital
Carolina Capital offers hard money and ground-up construction loans for investors in multiple states, including North Carolina. Something to note though, they may not be able to lend if the property is in a rural area. As real estate investors themselves, they understand the challenges and needs of their borrowers. Read below to learn some of their highlights:
- They offer loans for single and multi-family properties, 5+ unit apartment complexes and multi-tenanted commercial properties.
- Interest rates start at 11.99%
- 6-9 month interest-only fix and flip loans
- 12-month term for ground-up construction loans
- They do have a minimum credit score requirement, but there are exceptions to the rule and look at everything on a case-by-case basis.
- Loan applications can be approved in 2-3 business days. After approval, expect to close in around 2-7 days, depending on several factors such as paperwork admin, title search completion, etc.
Benefits of working with a hard money lender
Whether you’re a seasoned pro or just getting started, a hard money loan can be a flexible solution if you’re looking to take advantage of the opportunities in a competitive real estate market such as North Carolina. One of the standout advantages is the speed and ease with which these funds can be secured.
Unlike traditional loans that often get slowed down by paperwork and lengthy approval processes, many hard money lenders focus on the value of the property and the potential of the project, allowing you to move forward quickly.
Another key benefit is the ability to work directly with lenders to tailor loan terms to your specific needs. This flexibility means you can structure a deal that aligns with your investment strategy, whether you’re flipping homes or developing new properties. While the interest rates may be higher than conventional bank loans, ranging from 8.99% to 12% in North Carolina, the short terms and the potential for high returns make these loans an attractive option for investors ready to act fast.
With this well-vetted list of private lenders, I hope you’re able to find the right partner to move your projects forward.
