Private Money Lending for Buy & Hold Loans in Arizona
Not all hard money loans are structured the same way. While most are intended as a short-term financing solution, there are times when market uncertainties can create a demand for a somewhat longer-term solution. These types of loans, known as “buy and hold loans,” are generally used when an investor is looking to own and maintain a rental property that generates monthly cash flow.
See If The Buy and Hold Program is Right for You
Unlike loans made for “fix and flip” properties, our buy and hold loan program is intended for investors who are looking to hold and maintain a property. For this reason, the terms on these loans tend to be a little longer with slightly lower interest rates, compared to fix and flip loans.
Buy and Hold loans can also be used as means of refinancing a property out of an existing loan or to get funds for reasons such as:
- Updating the property, such as installing new windows, a new roof or new AC units
- Making needed repairs to the property
- Putting equity into the property
- Using the cash-out to purchase more investment properties
Current Market Conditions
Depending on current conditions, while a home may have a high degree of value in its area, the market may not be conducive towards maximizing that value in a sale.
In those scenarios where the market’s ability to meet the value of a property is lagging, holding on to a property makes sense, particularly since the value of the property will likely continue to increase.
Another useful way to apply buy and hold loans is through the purchase of properties with an eye towards rental use. With a tenant in place, the property will continue to appreciate in value (far more so than simply sitting empty) as well as providing a revenue stream to pay down interest.
Assuming the property appreciates sufficiently in value, the long-term potential for this scenario offers a reliable and steady stream of income as well as the potential to set up a collection of properties for a future property management company.
Capital Fund 1
Capital Fund 1 serves the Phoenix area, including Scottsdale, Chandler, Mesa, Glendale and Peoria, as well as Northern Arizona and Tucson. If you have any questions, contact us today and we’ll be happy to go into further detail with you about any of our loan programs.
Current Buy and Hold Hard Money Loan Rates
- Rates: Starting at 9.9%
- Term: 12 months
- APR: 10.9%
- Loan Amount: $200,000
- Mortgage Point: 1 point
Please keep in mind the following factors about Capital Fund as a company:
- We are an asset based lender
- We don’t check credit
- We don’t ask for personal tax returns
- We can fund start to finish in 24 hours
- No prepayment penalties