We lend for purchase and rehab costs for your fix-and-flip properties.
When you have a rental property and need cash for rehab and re-fi.
We lend on most multi-family and commercial properties.
Hard money loans are most often used by real estate investors (e.g., fix-and-flip, BRRRR) who are unable or unwilling to secure a traditional bank loan.
A hard money loan is a short-term (usually 12 months) commercial loan secured by the investment property.
Unlike conventional commercial bank loans, hard money loans are funded by private lenders, like Hard Money South, and are approved based on a property’s after repair value compared to the requested loan amount, not necessarily the borrow’s experience, credit score or income.
Hard money borrowers receive the vast majority, but rarely all, of the funds needed to purchase and then rehab the property, as hard money lenders want borrow’s to have meaningful ‘skin in the game’ too.
The loan is repaid within 3, 6, 12 or even 18 months, often with interest-only monthly payments and a balloon payment at the end of the loan or once the improved property is resold or re-financed.
We lend to new and established real estate investors and if the property is located in metro Augusta, Georgia. This may include Aiken, Barnwell, Burke, Columbia, Edgefield, Lincoln, McCormick, McDuffie, Richmond, Washington, and Wilkes counties.
Loan terms vary based on the unique characteristics of the borrower and property, but generally here’s what you can expect.
Every hard money deal has different lending criteria and different point structures.
As a general rule, count on an interest rate 11.9%, and you will probably have to pay anywhere from 0.9 to 2.9 points.
Sometimes we will require points to be paid up-front, while other times we can build them into the loan amount.
We have come to find that each hard money deal is unique and it is impossible to provide exact numbers and loan structure until the deal is reviewed and approved, although all loan terms are always disclosed up-front and long before settlement.
There are no upfront fees however along with the 11.9% annual interest rate, our loans will cost you from 0.9 to 2.9 points (one point equals 1% of the loan amount).
Some or all of these points may have to be paid up-front, but often times we will let you build the points into the back of the loan (i.e., we will increase the loan amount to cover the points).
You will also be required to pay the title/insurance/escrow company to perform the title search, close the loan and issue lender’s title insurance.
Yes. As with a conventional loan, you will be required to pay for a title search on the property and ensure we are being put in the proper first lien position. You will be required to pay for the title/insurance/escrow company to close your loan, record a mortgage or deed of trust in the land records, and issue lender’s title insurance policy.
Yes. Although there are times when we will not allow secondary liens, most times we don’t worry about where you come up with the remaining money to buy the property, whether from a business partner or seller held promissory note. As a first lienholder, we will be the first amounts paid back upon foreclosure and, thus, usually are not concerned with a second note holder.
Nope. We do not lend on primary residences. State and Federal laws have strict disclosure requirements for consumer mortgage loans, as well as on fees and interest rates.
Approvals are typically granted within 24 hours and settlements usually take 5-7 business days to conduct the valuation, perform the title work, and have loan documents drafted.
We may be able to roll your points into your loan; but all third-party title fees and closing costs must be paid by you at closing.
Yes. If your real estate transaction requires a lending pre-approval letter, we can provide that to you, most of the time in the same day it is requested.
Usually not but it could vary from deal to deal. Because much of the money used for hard money loans comes from private investors who want to keep our money working, we usually require a few months of minimum guaranteed interest periods.
We are committed to help you with your real estate project so if you are performing and need to extend your loan, its usually is fine. The initial loan term is usually 12 months but with time overruns its common to do extensions until you can exit the project.
No. Each deal stands on its own. If it makes good loan sense, you will get the loan regardless of how many properties you own. We have clients that we have multiple outstanding loans with at any time.
Before providing documents, let’s have quick conversation to make sure your project is a good fit for us.
Once tentatively approved, we will ask for documentation and additional information including:
Contact us to discuss your deal and we’ll review it within 24 hours. If we like your deal, and you like our terms, we can close fast and fund your project in days.
In the CSRA, staying ahead as a real estate investor isn’t about luck, it’s about positioning. Whether you’re flipping in Richmond County, buying rentals in North Augusta, or hunting value in Hephzibah or Grovetown, the difference between winning and losing deals often comes down to speed, sourcing, and consistency.