Are you wondering how to get a hard money loan in Arizona?
In this expert-level guide, we’ll explain how you can get an Arizona hard money loan for an investment property in as little as 24 hours.
A hard money loan is a short-term lending product primarily used in real estate transactions for investment properties.
Unlike traditional loans offered by banks or credit unions, hard money loans are secured by the property itself and are usually funded by private investors.
Hard money loans are perfect for investors looking to flip properties, start a new construction project, or when a quick closing is essential.
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What are the Advantages of a Hard Money Loan?
Hard money loans offer several advantages for borrowers, but it’s essential to understand that they are typically short-term, high-interest loans that are secured by real estate.
Here are some of the advantages of hard money loans:
- Quick Approval and Funding: Hard money lenders typically have a streamlined approval process compared to traditional banks. This can result in quicker loan approval and funding, which is especially beneficial for real estate investors who need to act fast to secure a property.
- Flexible Qualification Requirements: Hard money lenders are more concerned with the value of the collateral (usually real estate) than the borrower’s credit score or financial history. As a result, individuals with poor credit or a history of foreclosure or bankruptcy may still qualify for a hard money loan.
- Asset-Based Lending: Hard money loans are primarily asset-based, meaning the loan amount is determined by the value of the property being used as collateral. This can allow borrowers to access larger loan amounts than they might with traditional lenders.
- Short-Term Financing: Hard money loans are typically short-term, usually ranging from a few months to a few years. This can be advantageous for real estate investors who plan to buy, renovate, and sell properties quickly. The shorter loan term can help minimize interest costs.
- Funding for Unique Situations: Hard money lenders are often willing to fund projects that traditional lenders might deem too risky, such as fix-and-flip properties, construction projects, or properties in poor condition. This makes hard money loans suitable for real estate investors who specialize in such projects.
- No Prepayment Penalties: Many hard money lenders do not charge prepayment penalties, allowing borrowers to pay off the loan early without incurring extra costs.
- Creative Financing Options: Hard money lenders may offer creative financing solutions, such as interest-only payments, to help borrowers manage their cash flow during the loan term.
- Bridge Financing: Hard money loans can serve as bridge financing, allowing borrowers to acquire a property quickly while they secure more permanent financing through traditional lenders.
- Opportunity to Build Relationships: Working with hard money lenders can help borrowers build relationships in the real estate industry. Successful projects funded with hard money can lead to referrals and future investment opportunities.
How to Get a Hard Money Loan in Arizona
District Lending can help you get a hard money loan in Arizona for various real-estate investment projects, including Single Family Rentals (SFRs), Commercial Real Estate, Construction and Development, Multi-Family Rentals, and Land projects.
We specialize in Single Family Fix and Flips and can you fund up to 90% of the purchase price with a quick closing in 24-48 hours.
Here’s a list of documents we’ll need to help you get a hard money loan fast in Arizona:
Single Family Rental (SFR) Needs List – Loan Amount Up To 90% Of Purchase Price
- Purchase contract
- Photos of the interior and exterior of the property
Commercial Needs List – Loan Amount Up To 80% Of Purchase Price
- Purchase contract
- Photos of the interior & exterior of the property
- Rent roll
- P&L
- Line-item rehab budget and summary of renovation budget with total estimated amount going forward
- Two addresses of any past projects (if applicable)
Construction/Development Needs List – Loan Amount Up To 75% Of Total Cost
- Purchase contract
- Two addresses of any past projects (if any)
- Photos of the interior & exterior of the property
- Line-item rehab budget including cost to date and list of costs going forward
- Building Permits
Multi Family Needs List – Loan Amount Up To 80% Of Purchase Price
- Purchase contract
- Current Photos of the interior & exterior of the property
- Rent Roll
- Current Leases
- Unit Lease Break Down
- Line-item rehab budget and summary of renovation budget with total estimated amount going forward
- Two addresses of any past projects (if applicable)
Land Needs List – Loan Amount Up To 50% Of Purchase Price
- Purchase contract
- Photos of the interior & exterior of the property
- Line-item rehab budget and summary of renovation budget with total estimated amount going forward
- Two addresses of any past projects (if applicable)
Keep in mind we can help connect you with a quality asset-based lender, meaning there is no need for credit checks, borrower financials, or any appraisals.
And we can help you close a hard money loan in Arizona within 24-48 hours!
Looking For Hard Money Lenders in Arizona? WE CAN HELP!
You’ve got questions about Arizona private money loans…
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If you’re looking for a hard money loan in Arizona on an investment property, and want to close quickly, you can get in touch with us HERE.
>> Click HERE to get an Arizona hard money loan rate in 60 seconds or less!
About the Author
Brian Reese is a senior advisor and co-owner at District Lending. He is one of the world’s leading experts in veteran benefits, having helped millions of veterans secure their financial future since 2013. Brian is the founder VA Claims Insider, an education-based Coaching & Consulting company whose mission is to educate and empower veterans to get the VA disability benefits they’ve earned for their honorable service. A former active-duty air force officer, Brian deployed to Afghanistan in support of Operation Enduring Freedom. He is a distinguished graduate of management of the United States Air Force Academy and earned his MBA as a National Honor Scholar from the Spears School of Business at Oklahoma State University.
“As a military veteran, I’ve made it my life’s mission to help people live happier and wealthier lives. District Lending brings this mission to life. We believe in integrity, honesty, and transparency, which is why you’ll see our rates right on our website. You’ll find lower rates and zero lending fees, which means you can buy your dream home for less. The savings are passed on to you — the way it should be.”
– Brian Reese, Advisor and Co-Owner, District Lending
