Investment Property Loans & Financing

Hard Money Lenders Arizona

40 N. Central Ave. Suite #1400
Phoenix, AZ 85004
(480) 999-6183

Hard Money Lenders Arizona is an experienced investment property lender who provides investment property loans in Arizona. If you need fast, reliable funding, we provide investment property financing to real estate investors. Based in Phoenix, Arizona, Hard Money Lenders Arizona offers real estate investment loans throughout Arizona, and we have over 37 years of experience in the field.

Experienced, Direct Hard Money Lenders for Rental Properties

At Hard Money Lenders Arizona we provide fast approvals, competitive rates and excellent customer service. We have proven time and again to be one of the most reliable and experienced sources of hard money investment property loans in Arizona. We have the capital, experience, and expertise you need to get your loan quickly funded. We are a direct hard money lender serving Arizona and our funding is fast and easy.

Investment Property Financing

We understand real estate investor’s needs and, therefore, make our loan applications fast and easy so you can get your money when you need it. We know that real estate investors prefer financing investment property with hard money lenders because we require less paperwork, resulting in faster approvals and funding, especially compared to traditional loans that banks and credit unions offer. In addition, we have fewer requirements as we are not asset-based lenders.

Investment Property Loan Interest Rates

Rates for investment property loans vary based on the variables of the loan scenario. These include the loan value, length of the loan, the location and condition of the property, and the overall perceived risk of the investment. Hard money loans typically have higher interest rates than traditional loans because conventional lenders focus on owner occupied home mortgages and do not provide financing for investment property loans. Hard money investment property loan rates in Arizona may be lower than in other states. In fact, Arizona hard money lenders create enough competition to keep the rates lower than in many other areas of the United States.

Investment Property Loan Requirements

Generally speaking, hard money lenders in Arizona require few loan requirements when compared to traditional lenders. Some of these requirements include:

A Down Payment:
This is usually the main requirement for a hard money loan. Overall, a hard money lender will require a significant down payment in the 25 to 30 percent range or sufficient equity in the property if the loan will be a refinance.
Borrower’s Finances:
The borrowers should be able to prove they have the necessary funds for the costs associated with monthly loan payments, taxes, insurance, and other holding costs for the investment property.
Rental Income:
The hard money lender will want to be certain that the property’s rental income will cover, or at least come close to meeting the monthly payment for the financial obligation.
Proof of an Exit Strategy:
Hard money investment property loans are short-term and are given for up to 3 or 4 years. The lender will need to know that the real estate investor’s exit plan strategy is solid, whether they plan to sell, refinance or pay off the investment from other sources.

Hard Money Investment Property Loans and Quick Closings

When you work with a reputable hard money lender, you can fund an investment property in a little as 3 to 5 days. In most cases, real estate investors opt for hard money loans to quickly buy a property that has become available. After securing a hard money loan, the borrower can then refinance for a longer loan term with a lower interest rate. This is particularly important when there are many real estate investors bidding on the same property. Furthermore, sellers are more likely to accept and offer from a real estate investor who has secured a hard money loan rather than a conventional loan. These experienced sellers understand that hard money lenders can approve a loan much faster than a traditional lender and with fewer issues. In some cases, a seller may even take a lower bid because they know that the escrow time will be much shorter, and they can sell their property quickly.

Rental Property Loans & Financing

Purchasing rental property is an extremely popular real estate investment strategy. In fact, real estate investors purchase these types of properties to be rented out to tenants for more than the monthly liabilities (principal, interest, taxes, insurance). In an ideal situation, the property owner will receive positive cash flow right from the beginning, although this is not always the case. Another plus is that the real estate investor will depend on the property appreciating over time and take advantage of tax benefits to maximize their profits.

Rental Properties & Hard Money Lenders

Hard money lenders are available for borrowers who want to quickly secure a loan to buy a property. In some cases, these loans are approved the same day and the funding received in just a few days. Once the loan is secured and the rental property purchased, the borrower can then start shopping around for a long-term conventional loan with a lower interest rate. In other cases, borrowers seek out hard money lenders when they are denied by a conventional lender like a bank or credit union. There are many reasons a conventional lender may deny a loan, including poor credit, too many existing conventional loans, a recent bankruptcy, or a short sale. On the other hand, hard money lenders focus primarily on the value of the property and the borrower’s equity in the property, including the down payment. This focus on value and equity allows hard money lenders to overlook poor credit and other factors that banks and credit unions focus on.

Rental Property Financing Requirements for Hard Money Lenders

When seeking a hard money loan for a rental property investment, the borrower will need at least a down payment of 25 percent since 100 percent financing is not available from hard money lenders. Rental property hard money loans are generally easy to get provided the borrower has enough to cover the down payment and the property’s holding costs.
Also, if a real estate investor has sufficient equity in another property but does not have enough cash for a down payment, the real estate investor may be able to take out a cash out refinance loan in order to raise the funds for the down payment on the new rental property purchase. The lender will also want to see that the investor has enough cash reserves available to deal with potential tenant vacancies, repairs and any other unforeseen issues.
Rental property loans from hard money lenders are not typically short-term loans. The longest terms available are usually 3 to 4 years. Hard money loans for rental properties are often amortized over 30 years but a balloon payment will be due after the agreed upon term. The lender will want to know the real estate investor’s intended exit strategy upfront to understand how the borrower will repay the rental property loan. The exit strategy may involve refinancing the rental property loan into a long-term conventional loan or selling the property for a profit.

Real Estate Investment Loans

Hard Money Lenders Arizona provides a wide variety of real estate investment loans to real estate investors in Arizona. Other popular real estate investment loans include investment property refinance loans and investment property rehab loans.

Investment Property Rehab Loans

Also known as fix and flip loans, investment property rehab loans are available for real estate investors who wish to purchase a property and make repairs and improvements quickly, then sell the property for a profit. Rehab loans for investment property gives the real estate investor a short-term loan with the funds they need to purchase the property and in some cases also provide a portion of the funds for the rehab costs. Rehab loans for investors are often in high demand during a strong real estate market as many real estate investors seek to take advantage of appreciating real estate prices.

Fix and hold loans are also available to investors in Arizona who wish to purchase a property in need of rehab, make improvements and then rent out the property. An investment property rehab loan would typically have a 12-month loan term while a fix and hold loan would have a loan term closer to 3 years.

Investment Property Refinance Loans

Hard Money Lenders Arizona is able to help real estate investors refinance investment property in Arizona. These refinance loans are common for real estate investors who currently own investment property with sufficient equity. Hard Money Lenders Arizona offers both refinance loans for investment property and cash out refinance investment property loans. A refinance loan gives the borrower a lower interest rate and longer term if the loan is due soon. With a cash out refinance loan, the borrower can quickly pull equity from the existing property in order to reinvest in another property.

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