Money questions come up the moment someone finds their first Columbia deal. Which lender? Hard money or private? Can I use a DSCR loan on the rental? Below are the answers I give most often.
One thing to be clear on: I’m not a lender, and I don’t recommend specific lenders. I don’t quote rates or terms either — those change and depend on you, the property and the loan.
The full guide is at hard money lenders in Columbia SC. If the money is for a hold, read rental property investing in Columbia. For the city overview, see real estate investing in Columbia SC. And bring your deal to REI Skool for a second set of eyes.
Straight answers
Are you a hard money lender in Columbia SC?
No. I’m a real estate investor and a borrower, not a lender of any kind. These pages explain how funding works so you can ask better questions of any lender you talk to.
Why do Columbia flippers use hard money instead of a bank?
Many older Columbia houses don’t qualify for conventional financing in their current condition. Hard money lends primarily against the property and the plan, which fits a house that needs work. It usually costs more and runs on a shorter clock.
What’s the difference between hard money and private money?
Hard money usually comes from a business that lends to investors as its main work. Private money usually comes from individuals who know you. Both should be documented by an attorney. See hard money loans for more.
Can I use a DSCR loan on a Columbia rental?
Often, yes. DSCR loans look at whether the property’s rental income covers the debt. They’re common for refinancing a rehabbed rental. Requirements vary by lender. Read DSCR loan basics.
Do local banks lend to real estate investors in the Midlands?
Some community banks and credit unions do, usually once they know you and your track record. Expect more paperwork and a closer look at your personal finances.
What should I ask a hard money lender before signing?
Ask how draws work, who inspects them, every fee at closing and payoff, what happens if you run past the term, whether there’s a prepayment penalty, and for references from recent borrowers.
Can I raise money from several friends for a Columbia deal?
Be careful. Raising from many people or pooling money can implicate securities law. Talk to a South Carolina attorney before you accept anyone’s money.