We lend money in metropolitan areas within North and South Carolina, Georgia, Tennessee, Virginia and select areas of Florida, with a few exceptions, to people who buy single family residences (SFR’s), Multi-Family properties, 5 + Unit apartment complexes, Mixed-Use properties and Multi-Tenanted Commercial property. These investors then fix up the properties and sell them or refinance them to rent out. We work very hard to fund quickly so that you can demand large discounts from your sellers. Our program is great for people who can buy right, fix a property up quickly, and then get it re-sold or refinanced.
We charge three to five points (3-5%) of the loan amount. These points are in addition to the other costs associated with any other loan closing such as attorney fees, processing fees, recording fees, etc. These fees typically run about $1850.00 plus the points.
This is, however, an estimate.
Other costs involved may include pro-rating of taxes, insurance, servicing fees and interim interest.
Although the term of a rehab loan is generally six to twelve (6-12) months, you may, at the Lender’s sole discretion, renew the loan for an additional 90 days for an additional renewal fee of two (2) points of the loan balance that is paid to the lender at the time of renewal. Most of the loans are paid off within 190 days.
We can loan up to 100% of seventy percent (70%) of the ARV on single family residences (SFR), 55%-65% for other type properties. We may, at our sole discretion, require 10% of the purchase price as a down payment. You cannot get cash out of a hard money rehab loan.
For single-family residence properties, we loan in NC, SC, GA, VA, TN, FL, and now TX. Nationwide, multi-family & commercial properties are considered on a case by case basis.
Mostly, we look at days on market for the subject property very carefully. Exceptions to that rule are sometimes made to those with A+ credit and money in the bank or borrowers with whom we have an ongoing relationship.
We also look at the investors basic background, as well as credit worthiness. Our current minimum acceptable score is 640, however, we want you to be honest about your credit challenges. HOW you handled--and hopefully overcame--those challenges is important to us, too!
In some instances, no money down loans are available. We may, at our sole discretion, require 10% of the purchase price as a down payment. You are required to bring points and fees to closing and have reserves to satisfy the underwriters. You cannot get cash out of a hard money/private capital loan.
Fill out the online application. We will contact you within 2 business days to discuss your application and inform you of additional documentation that may be needed.
As a general rule we will need:
- Copy of SSN and Driver’s License/Passport
- Financial Documents: Last 2 years of tax returns, last three months bank statements and two most recent statements for any stock bonds, IRA, 401K, and annuities.
- LLC Documents: Articles of Organization, Operating Agreement, EIN/Tax ID Document, Certificate of Good Standing and completed W-9.
- Signed Disclosures that we provide: Closing Disclosure, Background Report Authorization, Borrower’s Rehab Loan Disclosure, Credit Report Authorization and Release, Draw Schedule Disclosure and Loan Fraud Disclosure
- Purchase or Assignment Contract
- Completed Repair List (we provide)
As a general rule, no, but we look at each deal on a case-by-case basis. We prefer that properties we loan on be within a county or city with a population of at least 300,000 people. Exceptions sometimes made for those with A+ credit.
Yes. We pull complete background checks, including credit, on all borrowers. This helps us to determine that you will still be able to qualify for the permanent financing when it comes time to refinance. Our goal is to make sure that you are able to refinance out of the hard money rehab/private capital loan as soon as possible.
Our approval is based upon your past credit history, credit score, funds available, credit card(s), available balance, and the value of the property you want financed. We look at the total overall potential of the Investor. Carolina Capital Management, LLC requires its investors to have an “A” or “B” credit grade, generally 640 or higher. We look at your credit and background to get a feel for the person or persons who are borrowing the money in order to screen for borrowers who never intend to repay or may have issues with following rules and directions.
We look for ways to finance your investment, not for ways to turn you down.
Within 2-3 business days after you have submitted your loan application and documentation, we can usually make a decision or give you a general idea if we can help you.
Remember, each loan is unique. Some loans can easily be closed in 10 days while others may take three weeks or more.
There are many factors which prevent us from making any guarantees as to if/when a loan will close. If you have already been pre-approved, it normally takes around seven business days once you find a property and submit the property information to us. Sometimes it takes a little more or less. We have closed in as few as two (2) days.
Many times it all depends on how long it takes to collect your loan documents, have a title search completed, get the appraisal and schedule a closing. There are other factors that can also delay a closing.
Always allow yourself plenty of time when writing your contract.
Carolina Capital Management, LLC can pre-approve you for our loan program prior to finding the right investment property.
Our process is two-fold.
We approve the applicant and we approve the investment property you are interested in financing.
We recommend that you get pre-approved so once you find a property to purchase, we can close faster.
We write 6- 12 month interest only loans. We charge three to five (3-5) points at closing and an additional two (2) points renewal fee is paid to the lender for one ninety (90) day extension period (at Lender’s sole discretion).
The average life of a hard money rehab loan is 190 days. The purpose of a hard money rehab loan is to either turn the property quickly or have it rehabbed and refinanced with a conventional lender.
Carolina Hard Money does not have any pre-payment penalties; you may pre-pay the loan any time you wish prior to the term of the loan.
If you are purchasing a property to rehab and rent, you can begin processing your refinance loan as soon as the repairs are complete and the final inspection has been made. You may also seek alternate sources to refinance and pay off your rehab loan if you wish.
Don’t forget that we can also transition your rehab loan to a long-term rental loan. Ask us how!
The current interest rate is between 10.99%-13.75%. *Subject to change without notice.
Yes! We will fund the purchase and all your repairs up to seventy percent (70%) Loan to Value (LTV), if you and the property qualify.
We do require you to complete a detailed, itemized repair list of the repair work. A draw schedule identifies the number and amount of each draw.
After a certain percentage of the repairs have been completed and verified, the monies are forwarded to you.
We will start with one property until we have established a business relationship with you. As you become more experienced and have successfully completed a few loans with us, we can look at funding up to 2 properties as they are identified.
Carolina Capital Management, LLC will order an appraisal from a qualified appraiser of their choosing who is familiar with evaluating investment properties. The appraiser will determine an “after repaired value” (ARV) based on the list of repairs that you and/or your contractor will be completing.
The cost of the appraisal is usually between $475-$600. Commercial or multiple units could be substantially higher.
Rush fees may be incurred for appraisals needed in less than 5-7 business days.
You may have as many as five (5) draws as described in the “Rehab Loan Draw Schedule” over the life of the loan.
Each draw request will require an inspection to ensure that the work is completed in a thorough and professional manner.
After completing a certain percentage of the required work, you will fill out a “Draw Request Form” online. We will schedule an inspector to visit your property and authorize release of your funds.
Your payments must be current in order to draw funds.
The inspector is one approved by Carolina Capital Management, LLC. There will be a $150 inspection fee charged for each draw, which is deducted from the total draw amount.
If you request a draw and the work requested for reimbursement is not complete, you will be charged for the initial inspection and for the re-inspection, if you request one.
Upon completion of the complete project, you (and the contractor if there is one) will sign a completion certificate verifying all work is complete and code violations, if any, have been satisfied. Draws will not be released on or after the first payment is due and not received.