Lima One Capital is a lender that provides hard money loans to real estate investors and home builders. It was founded by John Warren and John Thompson. It provides both short-term and long-term loans for fixes and flips or for multiple-family properties. This is very helpful for investors who need a large amount for investing in their business.
Loan types:
It provides three types of loans:
- Fix and flips loans ( This is a short-term loan financing for rehabs ).
- Rental loans (long-term financing for rentals ).
- Multi-family property loans (short-term financing for rehabs of properties of 5 or more units ).
What Is a Hard Money Loan?
Lima One Capital is a lender for real estate investors in the United States. It was founded in 2010 in Greenville, South Carolina, by John Warren. It is a hard money lender. A hard money loan is a short-term loan based mostly on the value of the property, not only on the borrower’s income or credit score. Investors use these loans to buy and fix homes fast. Banks often take weeks to approve a loan. A hard money lender can move faster. The price of that speed is a higher interest rate and higher fees.
Hard money loans suit investors, not people buying a home to live in. The borrower plans to sell the home or to refinance into a long-term loan. A buyer should have a clear exit plan before they take the loan. Without one, the loan can become very costly.
Fix and Flip Loans: How They Work
A fix and flip loan pays for the purchase and the repair of a home. The investor buys a home that needs work. The lender gives money for the purchase and for part of the repair cost. The investor fixes the home and sells it for a profit. The loan term is short, often 12 to 13 months. The lender checks the after-repair value of the home, known as ARV. ARV is the market value of the home after the repairs are done.
Lenders often price these loans in tiers. A new investor pays a higher rate. An investor with many completed deals pays a lower rate. The rates listed in this post come from 2022 and are now out of date. Rates change often with the market. Always check the current rates and fees on the lender’s own website before you apply.
Rental Loans and the Debt Service Coverage Ratio
A rental loan is a long-term loan for a property that earns rent. Lima One offers 30-year rental loans and other rental products. These loans often use the debt service coverage ratio, known as DSCR. DSCR compares the monthly rent income of the property with the monthly loan payment. If the rent covers the loan payment with room to spare, the loan is seen as safer. The lender looks at the property’s cash flow more than the borrower’s personal income. This helps investors who own many rentals.
Rental loans have a loan-to-value ratio, or LTV. LTV is the loan amount as a share of the property value. A 75 percent LTV on a $200,000 property means a loan of up to $150,000. A lower LTV means the borrower pays more of the cost from their own money, but the loan is less risky for the lender.
Costs to Understand Before You Borrow
| Cost | What it means |
|---|---|
| Interest rate | The yearly cost of borrowing, paid each month. |
| Origination fee | A fee charged to set up the loan, often shown as points. One point is 1 percent of the loan. |
| LTV | The loan as a share of the property value. |
| ARV | The value of the home after repairs are done. |
| Draw fee | A fee some lenders charge when they release repair funds in stages. |
Ask for the full cost in writing. A low interest rate can hide a high origination fee. Compare the whole cost, not one number alone.
Risks and Alternatives
The main risk is a repair that costs more or takes longer than planned. The loan term is short, so delays cost money. A slow sale can force a costly extension or a refinance. A second risk is a fall in home prices. If the after-repair value drops, the profit can vanish. A third risk is a rental with no tenant. An empty rental still needs loan payments.
Alternatives include a conventional bank loan, a home equity line of credit, a private lender, or a partner who adds cash. Each option has its own cost and speed. A first-time investor should talk to more than one lender and compare the terms in writing.
Frequently Asked Questions
What is Lima One Capital?
Lima One Capital is a United States lender for real estate investors. It offers fix and flip loans, rental loans, and multifamily property loans.
Who founded Lima One Capital?
Lima One Capital was founded by John Warren and John Thompson. It is based in Greenville, South Carolina.
What is a fix and flip loan?
It is a short-term loan used to buy and repair a home. The investor fixes the home and sells it for a profit, then repays the loan.
What is DSCR in a rental loan?
DSCR is the debt service coverage ratio. It compares the rent income of a property with the loan payment. A strong ratio shows the rent can cover the loan.
Disclaimer: This guide is for general information only. It is not financial advice. Loan rates, fees, and terms change often. This guide gives no investment advice for readers. Check the current terms on the lender’s own website and speak to a licensed adviser before you borrow.
Last Updated: 6 November 2026