6 Best Hard Money Lenders in Arizona

Arizona is a beautiful state that’s known for many things, including the Grand Canyon and its sweeping natural escapes. Though many know the area as being a desert-like area, the hottest days are still manageable thanks to the very low humidity here. More so, there are some outstanding forests and dense areas that see much more rainfall, especially in areas of the deep canyons where it does snow. And don’t forget its bustling cities like Tempe, Tucson and Phoenix. There are a few ski resorts in Arizona, too. Arizona today is home to over 7.1 million people, and the area has a moderate cost of living. Overall, it is a place with a vibrant lifestyle and one that is perfectly suited to many people.

One of the keys to Arizona is the price of homes. Over the years, the area has become a retirement destination with people moving to the warm climate for exceptional quality of life (from golf courses to luxury shopping). This, along with a limited amount of inventory, has pushed home prices higher in recent years. The average sale price of a home in Arizona was $477,219 in August of 2022, and that’s due to a range of these factors. Home prices in cities like Scottsdale and Phoenix are some of the highest in the region.

For those who are thinking about buying investment property in Arizona, there is a wide range of reasons to do so. There are many people who stay over winter in the area, which means they visit during the coldest parts of the year, making seasonal rentals a valuable investment form. According to data from the U.S. Census Bureau, 64.5% of people in Arizona own their homes, and 35.5% rent them. However, there are a significant number of available rentals in the region, with 8.4% of rentals being vacant.

How hard money loans work

Hard money loans provide a financial tool for borrowers who may not typically qualify for a traditional big bank or commercial loan. Hard money lenders in Arizona are willing to make these offers on certain types of real estate to help buyers because the home itself guarantees the loan. That means that when the borrower stops making payments for any reason, the lender has the legal right to force the legal sale of the home, which then results in the lender recouping its investment.

Hard money loans in Arizona are meant to be short term loans, those that last for between 1 and 5 years, in most cases. The loans are often used for fix and flip properties, new construction projects, rental property investments, and commercial real estate development. In most cases, they provide the buyer with the money they need to buy the property, make repairs to it, and then sell it or secure a new loan on the property that better represents the value of the property.

Hard money lenders are often willing to help investors to secure these loans, but it is still very important for borrowers to ensure these loans are right for them. They do tend to have a higher interest rate, but with the shorter term, this can often make sense overall.

In Arizona, hard money loans may be an excellent investment for those who plan to purchase and repair a home. That is because these private money loans are often based on the after repair value of the home, not on the current condition of the property. That allows borrowers to gain more access to the funds they need upfront to not just buy the property but also repair it. Typical mortgage and construction loans do not often offer this.

6 Top Arizona hard money lenders

If you’re in the market for a real estate investment project in Arizona, consider these hard money lenders that are available for projects in the state.

1. Prime Plus Mortgages

Prime Plus Motgages is based in Scottsdale, Arizona and serves the state of Arizona. Founded by Loren Howard, they offer real estate loan programs for residential properties, fix and flip, short sales, REO purchases and business investment properties.

We contacted Prime Plus Mortgages to learn more about their private lending business and here are some of the highlights:

• Funding typically available 1-2 days after approval
• Up to 90% LTV available
• Interest rates typically in the 10-16% range
• Asset based lending
• Points vary based on the deal and borrower experience
• No prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. Capital Fund I

Capital Fund I is based in Scottsdale, Arizona and acts as a direct lender. As an asset-based lender they are not looking for tax returns or credit checks. They serve the state of Arizona and offer private money products like fix and flip, construction loans, commercial building loans and land/lot loans.

We contacted Capital Fund I to learn more about their private lending business and here are some of the highlights:

• For fix and flip, LTV up to 75%, term of 6-12 months and no prepayment penalty.
• For buy and hold, LTV up to 70%, term of 12-24 months and no prepayment penalty.
• For construction and development loans, up to 70% LTV and term of 12-24 months.
• For land/lots, LTV up to 65% and term of 12-24 months.

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Easy Street Capital

East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

• Interest rates range from 6.9% – 10.9%
• Points range from 2-3
• There is a $1495 document fee
• No minimum credit score required
• Down payments of at least 10% required
• Renovation financing ok
• Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer and start the lending process, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investing market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

• Loan amounts up to $5 million for 1-4 unit properties
• Loan amounts up to $20 million for 5+ unit properties
• Single family (1-4 units)
• Multifamily (5-20 units)
• No owner-occupied properties
• Loan terms 12-24 months
• Interest-only payments with rates starting at 8.50%
• Max LTC is 90% of project costs
• Minimum credit score is 660
• Prefer that you have at least two transactions in the past three years

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. EquityMax

EquityMax is based out of Florida and most of its business in the state but is able to lend throughout the United States. Founded by Brad Emmer in 1990, EquityMax has decades of experience as a hard money lender.

We reached out to EquityMax to learn more about their hard money loans and these are the key highlights that you need to know:

• Single Family Homes
• 1-4 Multi-Unit Properties
• Condos and Townhomes ok
• Commercial property and Industrial Warehouses OK
• Direct lender that has decision making over financing deals.
• Can originate loans to individuals, LLCs, corporations, land trusts and self-directed IRAs.
• No prepayment penalties
• No minimum credit score required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

6. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

• Loan amounts from $100,000 up to $5 million
• Investment properties only
• Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
• Up to a 75% LTV
• Rates start at 7.25%
• Interest only payments
• Loan terms are 9-24 months
• Foreign nationals are eligible
• No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

Pros and cons of Arizona hard money loans

As an investor in real estate, one of the goals most have is to find the most affordable way to buy a property. Yet, traditional loans tend to be hard to manage because of the limitations traditional lenders and the government overall put on banks. Hard money lenders offer a better solution because they are more readily available to obtain. In some cases, borrowers do not have to pass the most stringent requirements for home inspections either. That makes them far more accessible overall, especially when a borrower wants to secure a piece of property quickly.

That is another one of the benefits of hard money loans. They can be very easy to obtain fast funding. Unlike a traditional mortgage loan process that could take up to 90 days and sometimes longer to close, most Arizona hard money lenders can close on the loan within 30 days and often less. That means that for investors and non-owners, they can purchase the home fast, get the money they need, get the work done at the property, and then sell or start renting it and be on to their next project. That could help them take advantage of properties that may not be available long.

In addition to this, hard money loans tend to be competitively priced when you consider that they are in place for a short amount of time. For borrowers who will use these loans for a few months to a few years, they can be very easy to obtain, put into place, and then pay off later when they sell the property, or they refinance it at a better interest rate. For all of these reasons, many people buying investment property in Arizona turn to these loans for the financial support they need.

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