What King Private Capital Does and How It Works in South Carolina Real Estate

King Private Capital is a private lending firm that finances real estate deals in South Carolina

King Private Capital provides short-term loans to real estate investors, house flippers, and developers who need funding faster than traditional banks typically move. The company lends against the property itself rather than the borrower's credit score, which means approval depends on the deal's value and the investor's plan to repay, not on a W-2 job or perfect credit history.

These loans are not mortgages in the traditional sense. They are bridge loans and construction loans meant to last months or a few years, not 30 years. Investors use them to buy properties that need work, renovate them, and then either sell or refinance into a permanent loan once the property is stabilized.

King Private Capital operates in South Carolina's real estate market alongside other private lenders, hard money lenders, and traditional banks. Understanding how their loans work, what they cost, and whether they fit your deal helps you compare options before you commit.

Key Takeaways

• King Private Capital lends based on property value and the investor's exit plan, not primarily on personal credit or employment history.
• These loans are short-term financing tools meant for real estate projects that will be sold or refinanced within months to a few years.
• Interest rates and fees are higher than traditional mortgages because the lender takes on more risk and the loan is meant to be temporary.
• The loan amount depends on the property's current or after-repair value and how much equity the investor brings to the deal.
• Working with a real estate agent who understands private lending can help you structure a deal that private lenders will fund.

How King Private Capital Loans Work

King Private Capital evaluates deals based on the property and the plan, not the borrower's personal finances. You submit information about the property address, its current condition, the purchase price, your renovation budget, and your exit strategy—whether you plan to sell, refinance, or hold the property long-term.

The lender orders an appraisal or valuation of the property in its current state and estimates its value after repairs are complete. They then decide how much to lend based on a percentage of one of those values, typically the lower number to protect themselves. If you are buying a house for $150,000 that will be worth $250,000 after $50,000 in work, the lender might offer 70 percent of the after-repair value, or $175,000, minus any fees.

You pay interest monthly while the loan is active. The full balance is due when you sell the property, refinance into a traditional mortgage, or reach the loan's maturity date. Some loans allow you to roll interest into the balance each month; others require you to pay it out of pocket.

What These Loans Cost

Private loans from King Private Capital and similar lenders carry higher costs than traditional mortgages because they close faster, carry more risk, and are meant to be temporary. Interest rates typically range from 8 to 15 percent annually, depending on the deal's strength, the property's location, and market conditions. A traditional mortgage might be 6 to 7 percent, so the difference is substantial.

Beyond interest, expect origination fees, appraisal fees, and possibly underwriting or processing fees. These often total 2 to 5 percent of the loan amount and are usually deducted from the funds you receive or added to the loan balance. Some lenders charge a prepayment penalty if you pay off the loan early, though this varies by lender and loan structure.

The total cost of borrowing $150,000 at 10 percent interest for one year, plus 3 percent in fees, is roughly $18,000 in interest and fees combined. That is a real expense that must be factored into your project budget and your expected profit.

Who Uses King Private Capital Loans

Real estate investors use private loans when they need speed or when traditional banks will not lend. A house flipper buying a distressed property might not have time to wait 30 days for a bank approval; a private lender can often close in 7 to 14 days. A developer building new homes needs construction financing that releases funds as work progresses; private lenders offer this structure.

Borrowers with past credit problems, recent bankruptcies, or self-employment income that does not fit a bank's underwriting box also turn to private lenders. Because the loan is secured by the property and based on the deal's strength, not the borrower's credit report, these loans are available to people traditional banks would decline.

Owner-occupants—people buying a home to live in—rarely use private loans because the costs are too high for a long-term hold. These loans are built for investors who will exit the deal within a few years and can absorb the higher costs into their profit calculation.

How to Work With King Private Capital

Contact King Private Capital directly or work through a real estate agent or mortgage broker who has relationships with private lenders. Many agents in South Carolina's investment market know which lenders move fastest and which are easiest to work with for specific deal types.

Prepare a package that includes the property address, purchase contract or offer, your renovation scope and budget, proof of funds or your down payment source, and your exit plan. The clearer and more detailed your plan, the faster the lender can move. Vague or incomplete information slows the process.

Once you submit, the lender orders an appraisal, reviews the deal, and issues a term sheet outlining the loan amount, interest rate, fees, and repayment terms. You review the terms, negotiate if needed, and then move to closing. Closing typically happens at a title company and involves signing loan documents and funding the loan.

Comparing King Private Capital to Other Lenders

South Carolina's real estate market includes traditional banks, credit unions, hard money lenders, and private capital firms. Traditional banks are cheapest but slowest and require strong credit and income documentation. Hard money lenders are faster and more flexible but often charge higher rates and fees than private capital firms. Private capital firms like King Private Capital sit in the middle—faster than banks, often cheaper than hard money, and willing to lend on deals banks will not touch.

The best lender for your deal depends on your timeline, the property's condition, your credit and income profile, and how much profit you expect. A deal that needs to close in two weeks requires a private or hard money lender. A deal where you have six months and strong credit might work with a bank and save you thousands in interest and fees. A real estate agent who works with investors can help you weigh these options.

What Happens When the Loan Matures

When the loan term ends—typically 12 to 36 months—the full balance is due. If you have not sold the property or refinanced, you must pay the lender in full or negotiate an extension. Extensions are possible but usually come with additional fees and higher interest rates.

Most investors plan their exit before they borrow. If you are flipping, you plan to sell within 12 months. If you are building, you plan to refinance into permanent financing once the project is complete. If you are holding for appreciation, you plan to refinance into a traditional mortgage once the property is stabilized and you have income history from renting it.

Failing to have an exit plan or missing your timeline can force you into an expensive extension or a rushed sale at a loss. This is why lenders ask for your exit strategy upfront and why experienced investors build contingency time into their timelines.

Frequently Asked Questions

What credit score do I need to borrow from King Private Capital?

Private lenders focus on the deal and the property value, not your credit score. However, most still prefer to see a score above 600 and will review your credit history for patterns of fraud or recent defaults. A lower score does not automatically disqualify you, but it may result in higher rates or a larger down payment requirement.

How much down payment do I need?

Down payment requirements vary by lender and deal. Most private lenders require 10 to 25 percent down, meaning they will lend 75 to 90 percent of the property's value or after-repair value. Stronger deals and borrowers with more experience may negotiate lower down payments.

How fast can King Private Capital close a loan?

Private lenders typically close in 7 to 14 days if your paperwork is complete and the property appraises as expected. This is much faster than traditional banks, which often take 30 to 45 days. Speed depends on how quickly you submit documents and how straightforward the deal is.

Can I use a private loan to buy a home I will live in?

Technically yes, but it is not practical. Private loans are expensive and meant to be paid off quickly. A home you plan to live in for 30 years should be financed with a traditional mortgage at a much lower rate. Private loans make sense only if you cannot get traditional financing and plan to refinance within a year or two.

What if I cannot pay the loan back on time?

Contact your lender immediately. Some lenders will negotiate an extension, though you will pay additional fees and interest. Others may foreclose on the property if you default. The best approach is to build extra time into your timeline and have a backup exit plan in case your primary plan falls through.