Capital Fund 1 is a trusted hard money lender in Mesa, AZ. If you need short-term bridge financing for a real estate transaction, hard money loans provide the funds you need based on collateral rather than on your current credit profile.
A hard money loan in Mesa is a common tool for real estate investors who purchase, renovate, and resell properties within just a year or two. Hard money financing is used to purchase the property, and the property itself serves as collateral. Although the interest rates on this type of financing typically are higher than a traditional mortgage, we are often able to offer approval based on the property’s value. This makes hard money financing a popular choice for individuals with equity to put into real estate deals but poor credit.
Most types of residential and commercial property can be purchased with a hard money loan, provided that you will not be residing in the property. This type of financing is available for:
Single-family homes
Apartment and condo complexes
Multi-family residential properties
Commercial Buildings
Land & Construction
The repayment term for hard money loans is usually 6-24 Months, and most investors plan to use the property’s resale proceeds to repay this financing. You can usually borrow up to 90% of the purchase price of the property, which means you’ll need to save a sizable down payment. As you become a more experienced real estate investor, you may unlock access to higher loan-to-value hard money loans.
Most hard money loans require a monthly payment of interest alone or interest plus principal. After the end of the loan term, you will owe a balloon payment to settle the balance.
If you are planning to purchase an investment property in the Mesa Arizona area that meets the criteria described above, a hard money loan is an excellent solution if you need to act quickly and/or have not been approved for conventional real estate financing.
You can receive approval for financing within 24 hours, compared to about 45 days for a traditional mortgage. If you are competing for a home that has many open bids, the ability to close on the deal quickly may sweeten your offer.
The underwriting process differs from lender to lender. Most hard money lenders look at applications individually and offer funds on a case by case basis. The amount an applicant receives is based on a loan-to-value ratio set by the lender. For an LTV of 50%, the loan amount will be half of the value of whatever assets are used for collateral. Capital Fund 1 made the process even easier with a three-step process for securing a loan.
Capital Fund 1 makes it fast and simple for you to secure a hard money loan for construction, commercial projects, land and lot transactions, and fix and flip projects. Some loans may be approved and funded in as little as 24 hours with no credit check or tax information required.
At Capital Fund 1, we have provided more than $850 million in private real estate funding for more than 4,000 projects over the past 10 years. If you want to join the ranks of our satisfied customers by exploring hard money loan options, submit your application online today. You can also give us a call at (480) 889-6100.
