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Understanding Hard Money Lending in Arizona

Most people are well familiar with the traditional types of bank lending many individuals use to finance purchases like homes and vehicles. However, when you’re interested in real estate investing, there are other options you should explore. In Arizona, hard money lending is a viable option to help you more easily purchase the properties you want to use as either rental properties or to renovate and flip for a profit. Regardless of what type of real estate investing you’re interested in getting involved in, it’s essential to have a firm understanding of what hard money lending is and how it can benefit you.

What Is Hard Money Lending?

Traditional loans often require extensive credit checks and income verifications in order to be approved for the loan. This is where hard money loans are different. These loans are typically asset based and simply require you to have a valid property to put down as collateral. Hard money loans are most often obtained from individual investors or companies that specialize in this type of lending, rather than more traditional banking institutions. This means they aren’t likely to complete any of the income verifications and credit checks typically used to determine loan eligibility. Instead, they will look at the property you are interested in buying and put money up to fund the project as an investment. You are able to get the funds more quickly than traditional bank loans, but it’s essential to remember hard money loans are used for a shorter time, making them ideal for those who purchase properties, fix them up and sell them for a profit. In most situations, they are used to increase the value of the property.

How Do They Work?

When you’re ready to take on one of these real estate projects, you’ll need to put together a proposal that includes current details about the property, such as the purchase price and what type of property it is. This information must be presented to a prospective lender in order to let them see what they are investing in. However, it’s not just about the current state of the property. They will also want to know what types of improvements will be made, how much those will cost and a projection of the increase in value. This can help them decide whether your project is worth the investment. Rather than being concerned about your financial ability to pay back the loan through credit checks and income verification, they are far more interested in the value of the property and what kind of turnaround it will see. Because of the way these hard money loans are set up, if you fail to pay back the loan in the agreed upon timeframe, they are able to seize the property and sell it themselves to regain the money they’ve lost. This is why a collateral-based hard money loan can be beneficial to all involved without worrying about credit and income guidelines usually used to determine loan eligibility.

It’s important to note hard money loans typically only last between a few months and three years, giving you enough time to improve a property and sell it for a profit. Because the timeframe is so short, you can also expect higher interest rates, ranging between 10 and 18 percent. While this may seem like a disadvantage, the potential in this real estate investment opportunity far outweighs the interest rates.

Top 10 Tips to Sell Faster in Phoenix

It’s only natural to want to sell a property as quickly as possible. Whether you’re flipping a house or are selling the place you’ve lived in for years, finding and securing a buyer quickly allows you to move on faster and not have to wait for a big payoff.

Visit any bookstore or do a quick Google search, and there’s tons of literature on the art of selling property. However, a lot of it is full of vague information and tedious steps that don’t help you sell quickly. While you don’t want to cut out necessary steps, there are measures you can take to sell quickly and smoothly.

Follow these top 10 tips to selling faster in Phoenix, and you’ll be signing over your property in no time!

1. Make Sure All Maintenance & Improvements Are Complete

A lot of people make the grave mistake of listing the property prior to all renovations, maintenance projects and landscaping being completed. While it can seem like a time saver to list the property when it’s almost completed, doing so often boils down to some wishful thinking and a misunderstanding of how long these projects can actually take. Showing the property before it’s finished (and this also means being thoroughly cleaned inside and out) can also lead to lower bids being offered.

2. Take Quality Photos

Having great photos of your property is among one of the most important things when it comes to selling, because these are what actually draw potential buyers to the property. While you don’t necessarily need to hire a professional for this, all of the photos should be high resolution and well lit. Make sure there are no mop buckets or cleaning products left around, and if there is furniture, it should be clean and well staged.

3. Make Sure the Price is Right

It’s a good idea to discuss what the price should be with an experienced real estate agent, or if you’re selling on your own (not necessarily the fastest way to sell, but still doable), do your research on what similar properties in the area have sold for. You don’t want to be overpriced, but you don’t want to undersell either. Buyers will be quickly attracted to a property that is reasonably priced and fits what they expect to pay in the area.

4. List on MLS

Your local Multiple Listing Service or MLS is your best bet to sell the property quickly. This will give the property more exposure, and it can easily be done through a broker or real estate agent who works in the area.

5. Read the Market

Once your property listing is up and running, it is important to pay attention to how it performs early on. If you’re not getting as much interest as you’d like, it could be because of something you can easily fix (like getting better photos or supplying more information). Talk to your agent about how things are going on the buying side of things, and see if there are any comments coming through that you can use to your advantage.

6. Be Smart About Lowering the Price

Going along with the above, sometimes one of the adjustments you’ll have to make is lowering the price. However, a dramatic drop in price can look bad, and too many price reductions can also turn buyers away. If you’re going to lower the price, it should only be done to meet market standards and should be done as sparingly as possible. You can discuss what the best strategy is here with your real estate agent.

7. Only Accept Offers with Lender Approval

When you do start getting offers, you should only look at ones that come with an approval letter from the buyer’s lender. The last thing you want to do is accept a bid quickly only to find that the buyer doesn’t actually have the funds to back it up, as this can end up costing you time and money.

8. Go with the Best Offer

Contrary to popular belief, the best offer is not necessarily the one that offers the most money. Instead, it is the one with a responsible buyer who will close on time and is financially qualified. They already have lender approval, and they are prepared with all the documentation they need. Oftentimes, the first offer you receive is the best one, but it is still important to review these qualities in each offer you are considering.

9. Be Prepared for the Inspection

Most buyers won’t close without an inspection being completed, and in many cases they will have specific details they want looked at (like the foundation, water heater, electric outlets, etc.) to make sure the property is up to code and safe as well as valuable. Be prepared for this ahead of time so you aren’t caught off guard.

10. Complete the Appraisal

The final step is letting your property be appraised. This process can go faster if you have gotten a previous appraisal report that you can provide a copy of, as it will help the current appraiser do their job more efficiently (and better understand your pricing).

Tips For Estimating Arizona Rehab Costs

Flipping houses is an exciting and lucrative business – if you’re good at getting the right estimates of rehab costs. If you want to be a pro, you need a system. This comes with experience and after some time, it will be easy for you to walk through your fix and flip project and quickly and precisely asses the rehab costs, including labor and materials. Keep in mind, however, that material prices fluctuate over seasons. There are so many variable, steps, choices, and work that goes into a rehab project that you’ll want to make sure you do it right – right from the beginning.

Ready to learn the tips and tricks of the trade that will turn you into a pro? Read on to find out.

Material Costs

After your walk through, make a list of the materials you need and visit your local supply stores to compare prices on paint, tile, flooring, lumber, windows, doors, and more. From here, you can contact local lumber yards or other stores to find competitive prices. Expect to shop at a few different stores. You’ll probably find yourself buying paint from one store and lumber from another. Keep in mind that there’s a difference between working with the big box stores and specialty stores. For one thing, the owners of specialty stores are “specialists” and have the expertise to help you pick the right materials. Not everyone working at big box stores fits into this category.

To save money, talk with a manager about membership benefits and pricing. The more work you do, the more chance you’ll have of negotiating a better price for your materials.

Time is Money

Have you ever replaced a roof or renovated a full size bath? Do you know how long these projects take? If you’ve answered “no” to these questions, take a step back and do some research before you tackle a rehab project. For example, installing a new roof should only take a few days, but there are contractors out there who will tell new investors that it will take two to three weeks. In fact, many projects can be done quickly on a rehab flip. That’s why it’s important to know the exact time it should take for a project – you are paying labor costs after all! – before hiring a contractor.

Base Estimates on Function and Category

Typically, you would think to categorize your expense by project. You’d add up everything needed for the kitchen remodel, the master bath renovation, etc… But this method isn’t the best way to go about a rehab. Instead, list by function and category, like plumbing, flooring, electrical, and windows. Put it into this perspective: you don’t hire a kitchen contractor. You hire a plumber. You’ll hire a carpenter to do your trim work. An electrician to do your electric work.

Once you draw up a Scope of Work using this method, you’ll easily see the flow of the project and what order it needs to be done in. This will help you know whether your contractors are on schedule and what materials to have on hand and ready to go.

Don’t Forget the Finishes

After knocking down walls, ripping out countertops and putting everything back together again, you’re done. But hold on, don’t forget about trim and finishes. All that work you put into your rehab project still needs some added touches. In fact, these extras add value to your property, make it more desirable to buyers, and overall improve the aesthetics of the property. This means that when you’re creating a Scope of Work sheet, you’ll want to include estimates for things like doorknobs, door stops, outlet covers, baseboards, and miniblinds. This is a somewhat expensive part of the rehab process, so it’s important to have it properly estimated for materials and labor in the beginning.

If you’re new to flipping properties, it’s always better to start with a smaller project rather than a gut job. This way, you can ease into learning about calculating the costs of a rehab project and scheduling the contractors you’ll need to help get the job done. Take heart, however, by knowing that the learning curve for flipping properties is steep. It won’t take you long to figure out how to work this system and turn every rehab flip into a profit. Finally, prepare for the unexpected. Every job will hold a surprise for you so be sure to have a contingency budget tucked away.

Arizona Hard Money Loans: A Step By Step Look

While most individuals go through a traditional bank loan process in order to buy a home, those who purchase homes for investment purchases often turn to other alternatives to fund their ventures. This is because banks often have stricter policies regarding the amount of money you make and how much they’re willing to lend you. When you purchase homes for the purpose of renovating and reselling them, this can make buying the properties you need difficult, if not impossible. This is why many real estate investors are turning to hard money loans in Arizona to fund their purchases. These loans are obtained from private individuals or organizations, making them somewhat easier to obtain and providing more flexible terms and faster turnaround times. Because these loans use the property as collateral, there is little risk to the lender or the investor, making them an excellent choice for real estate development investors. How does this process work?

Determine Your Goals

First and foremost, you need to determine your goals as a real estate investor. Are you looking to do this on the side for a little extra spending cash? Do you want to make this your full-time job? How many homes do you intend to purchase and resell and in what timeframe? Establishing your goals and writing them up as a business proposal are critical in getting the funding you need. The property may serve as collateral, creating less risk for the lender, but that doesn’t mean they don’t want to know what you intend to do with the money they are providing. The more detailed your goals and plans are, the more likely they will believe in your project as much as you do. It’s typically best to have a property in mind, providing the location of the property, your estimated budget for the project and how much you’re aiming to resell the home for. If you’ve done other projects in the past, before and after pictures can be useful as well. All this information is invaluable in giving the lender peace of mind.

Locate Lenders

Once you have your plan in place, you can start actively pursuing hard money lenders in your area. If you know others who are involved in these types of projects, ask them for referrals. Local real estate clubs and other similar organizations can also be valuable resources to find hard money lenders in your area. When you find lenders to consider, chances are they will want to do some research of their own before even considering your proposal. This means they may look into your background a bit, although they won’t be as concerned about your finances and credit as more traditional lenders. They will also want to research the property you’re considering, so they can get a good idea whether it’s likely to return on the investment as you hope. After all, the property is what secures the loan and ensures they get their money back as promised.

Fill Out an Application

Although the process is different from traditional bank lending, you will still need to fill out an application if you want to apply for a hard money loan. This application allows the prospective lender to look at your credit report, as well as any other necessary financial information to help them make a sound decision regarding whether to loan you the money. While these factors certainly aren’t the most important in these situations, they do still need to be taken into some consideration. In essence, you will work with your hard money lender as a partner in the project, which is what makes this type of lending so different from your traditional loans. The lender should be interested in your goals and what you plan to do. If they aren’t, they likely aren’t in this business for the right reasons and you may be better off looking elsewhere. Once they approve your application, the loan goes through the underwriting process, which is similar to that which is used for traditional loans.

The Underwriter

In simple terms, the underwriter is the individual who assesses the level of risk to help lenders decide if providing the funds is the right option for them. After all, the loan is no good to them if the individual taking it out won’t be able to repay it. They will approve the loan based on the value of the property, your credit and your capacity to pay the loan back. Property value is the most important factor in the calculation of hard money loans.

Closing

The final step in the process of obtaining a hard money loan is the closing. This is the time when you and the lender will sign all documents related to the terms, including payment terms, amount of the loan and more. An escrow agent should be used to ensure everything is in order and ready to go. Once all the paperwork is signed, you’re ready to begin renovating the property so you can turn it around as quickly as possible.

Advantages of Arizona Fix and Flip Loans

Real estate investors with varying levels of expertise or poor credit often look to Arizona Fix and Flip loans for financing. Acquiring an Arizona Fix and Flip loan offers several advantages over other conventional loans. While the structure of Arizona Fix and Flip loans may vary, many real estate investors choose them because you can count on fewer federal regulations and an easier overall application and approval process. In addition, these loans allow you to receive a 40% to 50% return on investment with little cash down and no other upfront fees.

The approval process for Arizona Fix and Flip loans are generally less restrictive than loans from banks. This helps reduce the chances of missing out on a great investment and ensures you can start your project right away. These loans are ideal for investors who understand the market, the renovation process, and the details of the loan agreement. Here are a few things to consider ensuring your investment is a successful flip and not a flop.

Research the Community

You will need to have a plan before the application process begins. First, you will need to find property that you are interested in. After pinpointing a property of interest, you will need to spend time doing your own research so that you are familiar with the neighborhood. When analyzing a neighborhood, it is wise to consider the school system or reputable alternative school options available. In addition, keep in mind the importance of reliable public transportation. Finding property that fits your budget in an area close to metropolitan areas with commuting options is a great asset, as well.

Calculate Potential Worth of the Property

To help determine how much the property is worth or potentially worth, consider doing a comparison of recent homes that are currently for sale or have recently sold in the area. You want to invest in property that gives you great returns after making necessary renovations. Knowing the retail value of surrounding homes and the cost of necessary renovations can help determine if the property is worth an investment. Banks are generally not interested in the potential value and often steer away from property in need of renovations. Arizona Fix and Flip loans are designed with a future mindset and are interested in what the property’s future value could be.

Assess How Long the Project Will Take

Depending on the size and scale of the project, flipping a house can often be a short or lengthy process. This makes a loan with flexible terms an important element in house flipping. Whether it is a complete fixer upper or a few minor repairs, fix and flip projects often come with a few surprises or setbacks. Arizona Fix and Flip loans, often structured with longer repayment periods, provide investors with a cushion for delays or unexpected repairs.

With flexible terms, fast and easy approval, quick funding, and low interest rates, Arizona Fix and Flip loans let investors take advantage of a great real estate market while making the fix and flip process both easy and hassle-free.

How to Make Money in Phoenix Apartments

Are you considering using a fix and flip loan for an apartment? If so, it’s essential that you develop a strategy first to ensure you are able to pay this loan off as soon as you can. Here, you can learn more about finding and utilizing the right deals, along with what you need to know to correctly value an apartment, while utilizing the various income increasing strategies to help you maximize the overall value of the apartment property that you purchase so that you are able to easily earn a profit and pay of your loan’s balance.

Before taking out a loan to flip an apartment successfully, it’s important to find the right property.

The process of finding the right apartment properties to flip is somewhat challenging. The majority of apartment buildings are being sold off-market. After all, landlords don’t want to alert their tenants to any potential changes in the ownership of the building, and as a result, they avoid posting a listing of the property for sale. Therefore, to find these apartment properties that are for sale, you should contact local real estate brokers. These individuals can let you know what properties are available.

Once you find the possible property that you can flip, you need to make sure you consider the following:

  • Is the property in extremely dilapidated condition? Is there a need for physical improvements right away? If you are able, make the improvements needed, and then you can immediately increase the value of the property and resell it to earn a profit.
  • Think about any outside factors that may increase the value of the property in the near future. For example, are there any new public amenities such as schools or hospitals ready to be constructed nearby? If yes, then you may not have to spend too much of your own money to see the value of the property appreciate.

The primary difference in flipping an apartment versus a typical, single-family home is the valuation. Most residential properties are going to be valued on comparable sales, which limits the possible returns earned from the residential flips. With a commercial property, such as apartments, the income generated by the property will determine the value. As a result, the possible returns from an apartment renovation may be quite large, based on how much you can raise from the property.

When it is time for you to value an apartment building, the value is typically set based on the current market cap rate and then divided by the revenue generated each year from the property. If you have an apartment that is earning $120,000 in income each year, and the current cap rate is approximately five percent, then the outcome is going to be $2.4 million dollars. While the nuances of this particular valuation process aren’t covered here, it gives you a general idea.

Before you take out any loan, it is important to know how you are going to pay it off. It’s also important that you can earn a profit by resulting in the property’s value to appreciate as fast as it can. When you are dealing with apartments, what is the fastest way for you to increase the value of your property? Raise the rent.

Raising rents that are exceptionally low is a great way to start and one of the most affordable and fastest ways for you to increase the value of your apartment, which is going to help you quickly repay the loan.

Complying with Arizona HOA Rules on an Investment Property

Those who are members of an HOA often pay close attention to following the rules, especially if they are currently living in the home. However, if you invest in property that is under the governance of an HOA, it can be more difficult to keep up with the regulations and make sure your tenants are keeping up with the rules so you don’t get in trouble. After all, it’s the homeowner who is responsible for making sure the HOA regulations are followed precisely. In addition, it’s important to make sure you understand what’s required if you intend to make any changes to the property.

Keep a Record of the Rules

When you first purchase a property, you should get a copy of the HOA rules to read through so you understand what’s expected of you. It’s important to always keep a copy of this list on hand so you can reference it and determine if there is an issue that needs to be addressed with your property. This is especially important if you purchase the property with the intent to flip it and resell it. In this situation, it’s important to know whether you are allowed to park a dumpster at the property for your demolition needs and what types of changes you can make, as well as whether approval is needed before you proceed. If you do intend to rent out the property, be sure you supply your tenants with a copy of the HOA terms, so they are more likely to follow them.

Understand the Fees

Every HOA operates differently so you’ll need to carefully read the terms to ensure you understand how often the fees should be paid and how much they are. Some homeowner’s associations charge the fees once per year, making it easy to pay them and forget about it until the bill comes the following year. However, others may charge on a quarterly or even monthly basis. If you intend to flip and sell the property, you may end up not having to pay much in terms of the HOA, but if you will be renting out the property, this is an obligation you’ll have to meet, whether you require your tenants to pay it or you pay it yourself. It’s important to determine how you will handle this aspect before you make the purchase and begin the process of investing in property.

Make Sure the Home Meets Codes

In many situations, the codes set forth in the HOA guidelines vary from the safety codes put in place by the government when it comes to building a home. This is why it’s critical to read through the HOA documents so you know what you are capable of doing to change the home. In fact, it’s important to remember just because you purchased a home that falls under an HOA doesn’t mean it is currently fully compliant with the regulations. Sometimes homeowners make changes that aren’t approved by the HOA, but they haven’t been uncovered at the time. If the HOA determines the house is outside their regulations while you are in possession of the home, you are the one who will get in trouble, not the previous owner. Therefore, in addition to making sure any future changes you intend to make are in compliance, you should go through the home with a checklist to ensure everything is up to the proper standard, making note of any changes you must make to achieve that goal.

Purchasing an investment property that is covered under an HOA has plenty of advantages, but it can also be difficult to make sure it remains under compliance, especially if you plan to make changes or you will be renting out the property. Be sure you read through your copy of the HOA terms carefully and ask any questions before you buy the property, so you don’t face any surprises later down the road.

How To Get Into Arizona House Flipping

House flipping can be a very lucrative and rewarding business if you have the know-how and are willing to put in time and effort. This corner of the market has exploded over the past decade (largely thanks to reality TV shows on house flipping), as more and more people have gotten into buying older homes for cheap with the intention of renovating and selling them for profit. Arizona in particular is a great place to get into house flipping, as the real estate market in general is strong but still has plenty of older, decrepit properties being listed for cheap.

The good news is that just about anyone can flip a house, even if they don’t have prior experience. All it takes is dedication, a little creativity and of course, some investment up front. In fact, many people who start with just one house end up doing it again and again because their experience was so rewarding (financially and, very often, personally). We’re here to help you with the financial investment that flipping houses often requires, but in the meantime here are some tips you can use to get into flipping houses and turn your venture into a success.

Keep Doors Open

There are a lot of ways to find great opportunities right here in Arizona for house-flip projects. If you want to explore a lot of low-price options in a short period of time, it is a good idea to enlist the help of a realtor. Otherwise, you can find a great deal on your own if you’re willing to put in the legwork. Using websites like Zillow is one way to find cheap listings in the area of your choice, and it is also possible to get one through a foreclosure auction. If you do find a house online, just be wary of sending money online or being asked for a check without seeing the property in person and without a realtor involved. Always do your research, which of course brings us to the next tip…

Do Your Research

Whatever you do, don’t jump to buy the first cheap house for sale without knowing exactly what you’re getting into. After all, some people make the mistake of buying a cheap house, investing a lot in renovations, then pricing it way too high for the neighborhood it’s in. Likewise, some people don’t go as far as they should with the renovations, and the house still ends up looking a bit run-down in comparison to its neighbors. No matter how the house turns out, it just won’t sell (or at least not for as much as you want it to) if it no longer fits in with the surrounding area.

Don’t Neglect the Exterior

All of your hard work on the inside of the house won’t matter much if you can’t even get prospective buyers in the door! After all, many people tend to drive by houses for sale before they decide to take a tour up close, and there’s no easier way to turn someone off from this idea than to have an unappealing curbside view. The outside of the house should therefore be inviting, and any lawn should be well-kept. If there are any trees or hedges, they should be trimmed and far from unruly. This of course includes cleaning up and properly disposing of any remaining construction / renovation tools.

Another great way of making sure the outside complements all the great features the inside has to offer is to add pops of color. All too often forgotten, for example, is the mailbox (if applicable). Installing a cute, unique mailbox is always a great idea, but at the very least you should give it a fresh coat of paint. Other ways of adding touches of inviting color include a brightly colored door (as long as it does not clash with the rest of the exterior colors) and / or window shutters.

Don’t Over-Do It

When you’re looking to flip a house, you should first look at what the property does currently have to offer. After all, why spend a lot of time and money on large-scale renovations when you don’t actually need to? Sometimes a house just needs to be updated rather than fully renovated, saving you a lot of unnecessary time and money in the process.

Slow and Steady Wins the Race

It’s healthy to set timelines and goals for yourself, but it’s never good to rush things. Be realistic with the amount of time you’re going to need to flip the home. It’s important to not rush through the project, as then you risk having to list the house for far lower than you planned. Take the time to actually execute the renovation properly and ensure that the value of the property increases as it should.

Don’t Be Afraid to Ask For Help

We all need a little help sometimes. If the house needs some extensive renovations that require more than a coat of paint or other basic modifications, it’s a good idea to consider going with a professional contractor or at least enlisting the help of someone with more experience. When it comes to actually putting the house up for sale, you may also want to sell through a realtor or consider hiring a professional stager to ensure the house is in show-ready condition. Arizona has a booming real estate market, and so the good news is that you can hire the professional help you need without spending a fortune.

And of course, if you need any assistance on the financial front, Barrett Financial Group is here for you. Please feel free to reach out to us to learn more about how we can help you achieve your house flipping dreams.

 

Why Commercial Loans in Arizona Can Grow Your Business

If you’re the owner of a business, chances are that you already know that growth can be difficult. After all, it’s challenging enough to start a business in Arizona much less expand it. But the good news is that you can give yourself and your business a much needed boost by getting a commercial loan. If you’re hesitant, you’re not alone. However, it is important to consider the following when deciding whether or not a commercial loan in Arizona is for you.

A Commercial Loan Is a Long-Term Solution

Whereas other types of loans are meant to be repaid quickly, commercial loans in Arizona are meant for those who have long-term, multi-stage plans for their business. Many different kinds of long-term payment plans are therefore available, allowing you to move more steadily and carefully along with your plans. This in turn allows for better results.

A Small Loan Now Can Lead to Big Time Results

Commercial loans are intended for those who have a solid business plan and are looking to see considerable growth over a period of time. And because the overhead costs of securing the loan are relatively cheap, many business owners in Arizona who use a commercial loan to invest in their business end up seeing a lot more growth than first anticipated.

Large Amounts Can Be Loaned Out at a Time

There is no “standard” amount when in comes to commercial loans, and while many people choose to start off modestly, many others are able to foresee that they’re going to need a lot more help. Need a lot of money upfront to achieve your business dreams? Hey, the truth is that most business owners do. And with a commercial loan, you can get the money you need right from the start or work out a system where you’ll have access to it over time. Because these commercial loans are meant specifically for business ventures and, again, long-term plans, you are much more likely to be approved for a large sum of money than with other types of loans.

Commercial Loans Are Lower Risk 

Overall, commercial loans in Arizona are considerably lower risk than many other types of loans often sought out by business owners or general entrepreneurs. This is largely due to the fact that many types of commercial lenders do not require any collateral upfront, though it also helps that these loans have flexible repayment plans and generally high approval rates.

Never Lose Ownership of Your Business 

Going along with the above, lot of other types of lenders require collateral like the property deed or even ownership of the business for the duration of the loan period. It’s important to realize here that even though the lender may not be acting on their ownership, they can take it over in the end should even a small error occur on your part.

Considering the Bottom Line

It’s true that not all businesses need a commercial loan to get ahead, but they are often few and far between. If anything, those that do take advantage of commercial loans in Arizona are making an important and well calculated investment in their business and their future.

7 Best Arizona Cities for Real Estate Investments

Are you ready to invest in real estate? If so, Arizona is a great place to make this investment. But, do you know which cities are best when it comes to real estate investments? If not, then you definitely need the information found here.

If you want to invest in the best markets for real estate in Arizona, you definitely are not alone. When it comes to real estate activity, Arizona’s a hot bed; however, the following seven cities are considered the best when it comes to making a real estate investment.

Each of the cities in this list have made top spots in real estate guides and are considered great locations by experts in the industry. Also, due to the fact that the areas are growing, the investment you make will only appreciate in value.

1. Laveen

Considered one of the strongest real estate investment locations, this city has a vacancy rate that’s under one percent. When you add that to the fact that the neighborhood has a rental return rate that is, on average, 11 percent, it’s pretty clear why Laveen is such a great place to look for investment real estate.

2. Scottsdale

While Scottsdale may be considered part of the valley, it’s also a pretty unique suburb that is attractive to individuals from all walks of life. Featuring a wide array of exciting nightlife, a unique western flair, amazing hotels and highly rated restaurants, it’s not surprising that so many visitors have decided to call Scottsdale home. As an extremely desirable area in the valley, there’s also a huge supply of investing opportunities found here.

3. Queen Creek

One of the factors that has made this location grow in popularity is how close it is to Mesa Airport. Another factor is the real estate prices. Vacancy rates are low and the returns on rental properties are almost as high as what’s seen in Laveen.

4. El Mirage

Affordability is the driving factor when it comes to growth in El Mirage. Right now, the median home value in this city is $110,000. This location is home to more than thirty bars, coffee shops and restaurants. If you want a great opportunity, then you should check out El Mirage.

5. South Phoenix

Another city that boasts lower than average vacancy rates and great returns on rentals is South Phoenix. It’s also close to many popular attractions, such as Tempe Town Lake, the Botanical gardens and the zoo.

6. Maricopa City

With a vacancy rate under one percent, this area has seen an increase in residents. There’s also a 10 percent return on real estate investments here, which makes this is a great place to make investments.

7. Tucson

Tucson is to the south of Phoenix and home to three natural forests. It also boasts a mild climate and great culture, making it a growing market. This city attracts both renters and buyers from the entire country.

Real Estate Investment Loans

Finding the right location and property is the first step when investing in real estate in Arizona. The next step is to get financing. You can opt for non-traditional lenders, which offer the money you need faster than a traditional bank. Hard money lenders also don’t require mountains of red tape like a traditional lender does. This makes it much easier to get the financing needed.