Reliable Hard Money Lenders In Arizona

Arizona Fix And Flip Hard Money Loans

AZ Hard Money Loans Are Financing Your Arizona Fix And Flips

Asset Based Lending specializes in fast financing for fix and flip investors with a focus on flexible underwriting that allows us to work with several different types of rehab projects. We’re able to close our rehab loans in 10 days or less on average, so you’ll never miss out on a potential deal. These 12-month interest-only bridge loans allow Arizona investors the ability to acquire property and begin renovating with the most competitive rates on the market, including the industry’s only true zero-point program. ABL offers funding that covers up to 85% of purchase price and 100% of the rehab costs. Whether you’re working on your first fix and flip or a seasoned professional, ABL is ready to finance your flip. Click to learn more about our Arizona fix and flip loans.

Why Arizona Investors Choose Fix And Flips

Fix and flips are one of the most consistent and reliable forms of real estate investing, offering profits that allow investors the ability to funnel that capital into their next projects. Right now Arizona fix and flips are on the rise, with a total of nearly 8% of home sales in the state attributed to flips. Arizona fix and flip investments are seeing an average profit of $50,000 as of Q1 2022. More than one-third of real estate investors use outside financing for their projects, with AZ hard money lenders being the preferred choice for bridge loans since investors can both close and exit the deals quickly. Our fix and flip loans focus on closing in 10 days on average so our borrowers never miss an opportunity due to financial delays. Whether you need to close fast, are seeking flexible loan terms, or another lender simply dropped the ball, ABL is here to help.

Using Hard Money Loans For Fix And Flips

Financing a fix and flip investment requires a lending partner that can close fast and offer a variety of loan options. That’s why so many real estate investors prefer hard money loans for fix and flips, as this type of financing can close in less than two weeks and comes with flexible loan terms. For example, Asset Based Lending has closed loans as quickly as two business days with the appropriate paperwork. These speedy loans allow fix and flip investors the opportunity to secure deals that would normally be missed if using another financing option. AZ hard money loans are also less stringent with its documentation requirements- aside from recent bank statements and a credit check, hard money lenders forego documents such as tax records or income verification. Investors that have tried borrowing from a bank or other traditional financial institutions know the pushback- the projects are inherently risky and banks typically don’t want to involve themselves in these types of projects. Or if they do choose to lend, its an agonizingly long process with enough loan stipulations, such as prepayment penalties or intensive documentation requirements, that ends up hurting the deal too much from the investor’s point of view. When it comes to fast and efficient lending for fix and flips, hard money loans are the best option for borrowers, and no lender does it better than Asset Based Lending.

Loans For Arizona New Construction

ABL provides hard money loans for new construction to real estate investors that are seeking competitive interest rates, fast draw turnarounds, and flexible underwriting. These 12-month new construction bridge loans are available to experienced investors, builders, and developers who can borrow up to 70% of the land value and 100% of the construction costs. ABL tailors our ground up construction loans to match each individual project, ensuring the borrower receives the best loan terms for their business strategy. We assess the investor’s experience level and the viability of the project to determine whether the deal is profitable for all parties. Whether you’re looking to finance the ground up construction of single family or multifamily projects, ABL is ready to discuss your upcoming deals. Click to learn more about our new construction loans.

Arizona New Construction Investment Info

Steady population growth combined with limited housing inventory has made Arizona new construction one of the most profitable investments in the state, providing the supply needed to meet increased demand. The number of building permits issued for new single-family homes in Phoenix increased by more than 3% year over year, with areas such as Franklin County seeing double-digit increases. Over 5,000 multifamily units were under construction in Scotsdale in Q1 2022, with the price per unit jumping over 24% from the previous year. The strong local economy and demand for housing helps fuel these types of increases, which builders and developers can take advantage of. The state’s housing supply is hovering around one month, which is far below the minimum three month supply needed to indicate a balanced market. Right now, demand is far outpacing supply, which has led to a 5% decrease in newly listed homes over the last year. Builders and developers can take advantage of these market conditions by filling the gaps in inventory and profiting from the seller’s market the state finds itself in. If you’re ready to use Arizona construction loans to scale your real estate business, then contact us today.

Choosing Asset Based Lending For New Construction Loans

The constant feedback from investors that utilize ABL hard money loans for new construction is the fast time to close and loan flexibility are part of their project’s success. A slower close time or stricter loan parameters would hurt their ability to scale their real estate business as quickly as they would like. By securing financing quickly with terms that are investor-friendly, builders and developers are able to leverage ABL construction loans to their advantage and control more of the market share in the areas they invest in. While some investors seek out bank financing or private money loans, they realize the slow nature and strict guidelines of bank loans or lack of reliability from a private money lender ends up costing them deals or causing more issues instead of making things easy. Working with a lender that’s ready to work as fast as you is invaluable, ensuring you can grow and scale your real estate business at whatever pace you’re comfortable with. Asset Based Lending is run by real estate investors, so we strive  to create a seamless loan process that allows investors to receive their financing quickly and focus on the project at hand. As direct hard money lenders with full control of our capital, we’re able to lend on various new construction investments and use flexible underwriting to ensure our borrowers receive their best potential loan. Whether you’re looking to build a few homes a year or you’re ready to scale to multifamily development, then contact us today to discuss your upcoming projects.

DSCR Loans for Arizona Rental Property

Asset Based Lending offers simple and reliable Arizona rental loans. These term rental loans are designed for buy and hold investors that want to secure properties between 1-8 units or refinance an entire rental portfolio. We offer competitive terms with rates starting as low as 6.875% with leverage up to 80% LTV. Our goal is to provide the most flexible rental loan options to our borrowers including 30-year amortization, ARM, and interest-only options. ABL offers a variety of rental loan options with single rental loans up to $3M and rental portfolio loans up to $6.25M. These loans for rental property are available to investors of all experience levels, assessing each deal based on the income-producing viability of the property. We also offer the ability to use our bridge program to complete property rehab or finance ground up construction before refinancing into a long-term rental loan, making us a one-stop shop for Arizona real estate investors. Click to learn more about our rental loan programs.

Arizona Rental Markets

The large metro areas such as Tucson and Phoenix are contributing to Arizona’s strengthening rental market, offering affordable rental property that’s seeing consistent year over year growth. For example, Phoenix has seen an 11% year over year increase in its average rent prices, and with 54% of the city’s population renting versus owning its an attractive location for real estate investors looking for their next rental property. Tucson is in a similar situation, with a 10% year over year increase in its average rent prices. The city has a slightly lower rental population of 46%, but that won’t impact the ability to fill vacancies as demand for the area continues to rise and prices remain at an affordable cost compared to the local economy. As mentioned earlier, areas like Phoenix are benefitting from increased tourism thanks to a developed and University of Arizona bringing a steady stream of visitors throughout the year. This consistent flow of temporary residents are boosting the short term rental market in the area, making Airbnb and Vrbo properties a viable investment strategy. Whether you’re looking to buy and hold property for traditional long-term rentals or are interested in growing a small portfolio of short term rental properties, Asset Based Lending can help finance your success. If you’re ready to start or grow your real estate rental portfolio using our Arizona rental loans, then contact us today.

Hard Money Bridge Loans for Stabilized Proprety

With the real estate markets shifting in different directions, such as the cooling down of home sale prices and rising interest rates on rental loans, some borrower’s exit strategies need to shift with it. That’s why Asset Based Lending now offers bridge loans for stabilized properties, allowing borrowers the option to reposition their investment and wait for market conditions to match their desired exit. These bridge loans are designed for investors who have recently completed a renovation or ground up construction but believe market conditions don’t favor their current exit strategy, so they decide to hold the property as a rental. Or maybe you’re an investor that’s looking at a turnkey rental property that you may eventually sell or refinance when mortgage rates come down in the future. Either way, you need an interest only loan without pre-payment penalties to bridge the gap.

How Do These Stabilized Bridge Loans Work?

Our 2-year debt service coverage loans can help bridge your financing for up to 24 months with no prepayment penalty, so you can exit the loan whenever you’re ready. With extensions available for an additional fee, we’ll make sure you’re properly financed from start to finish so that you have time to determine your final exit strategy and capitalize on your investment at the right time. We can provide stabilized financing for properties up to 20 units, using the lesser of either market rent or leased rent to determine the DSCR and deliver you competitive loan terms. While all loans are different and structured to meet the individual investor’s needs, the typical stabilized loan is a 2-year interest-only loan with rates starting at 10.5% and LTV up to 65%-70%. Loan terms are determined based on factors such as borrower experience, FICO score, and DSCR, using the lesser of either market rent or leased rent to determine your DSCR. If you have a deal that requires temporary bridge financing, then contact us today.