Acquisition & Development Financing
When most people think of real estate investing, they think of buying homes and commercial buildings they will either rent out or flip and resell for a higher price. However, this isn’t the only type of real estate investing you can choose. In fact, acquiring land and developing it into something businesses can use can be a lucrative way to make money in the field of real estate. This often requires a land development loan, which is typically secured by a mortgage to develop an empty lot of land into something that can be used by companies for a variety of purposes.
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What Is Involved
Contact Hard Money Lenders Arizona anytime, to speak with one of our very helpful and highly knowledgeable loan specialists about your property investment funding in Arizona
If Michael can't get the deal done, it's not getting done!
The speed at which Michael’s team worked at allowed us to close the deal in less than 3 weeks.
Ready to make the next deal, let’s go!
I highly recommend everyone to work with Michael and his team and insist on working with Laura, Michael’s loan processor’ whom without her diligence, our loan probably would’ve been delayed.
Together they are an amazing team.
Michael's assistant Lara made sure everything got done right, and on time. She is great to work with, and responded quickly to any question I had. Together they make a great team and I look forward to working with them in the future.
My wife and I were recently visiting Scottsdale for her birthday and had decided to look at a few homes. Nothing immediate, just getting ideas for the future. Then on the last day we run into the perfect new construction home, only problem is we weren't prepared to buy. Most of our long-term funding was tied up in our home back in Oregon and to complicate things further, the seller had another cash offer on the table and a ridiculously fast 3 week closing requirement to secure the property.
So, we took a leap of faith and called Hard Money Lenders with Barrett Financial and got Michael on the phone. That quickly took us from an impossible deal to closing on our new home in record time. Michael clearly communicated all the terms and numbers up front. And being such a rapid deal with a large amount of escrow on the line, he personally checked in with us daily.
We have worked with a lot of great people in the real estate and mortgage industries for over 30 years and have to say that Michael is one of the top professionals we have ever met. A true expert in mortgage and bridge loans / private lending. Even better, it was clear to us every day that Michael truly cares about his clients. Best phone call we could have ever made.
Thank you, Michael and Lara, for helping us make this North Scottsdale dream a reality!
Saleh.
Steven
If you’ll be working with a hard money lender in Arizona for this type of project, it’s important to understand what you can expect in terms of lending percentages. As a developer, you are likely to be required to put down at least 25 percent of the purchase price of the entire project cost. You will need at least 30 percent of the cost of the land itself. As a general rule of thumb, however, most hard money lenders won’t exceed more than 50 percent of the loan-to-value of refinancing the land. Many reasonable individuals are willing to fund up to 70 percent of this cost as long as the other 30 percent is being paid for in cash. If an investor goes into this project paying for their portion with any other type of loan or with credit toward work that has already been performed, the amount a hard money lender is likely to contribute will fall dramatically. In most cases, it can fall as far 55 percent of the loan-to-value ratio.
Understanding the basics of acquisition, development financing and hard money loans will help you determine if this kind of real estate investing is right for you and prepare you for what you need to make this type of investment happen.