Take advantage of fast-moving deals with our short-term investor loans that close quickly and provide flexible terms.
Short-term investor loans are designed for real estate opportunities that require immediate action and rapid capital deployment. Unlike conventional financing that involves lengthy underwriting processes, extensive documentation requirements, and rigid qualification criteria, short-term hard money loans prioritize speed and flexibility to meet the demands of time-sensitive transactions. These loans typically have terms ranging from a few months to two years, with structures that align costs with the temporary nature of the financing need. For investors who specialize in capturing opportunities that others miss due to financing delays, short-term hard money lending is an essential tool.
The defining characteristic of short-term investor loans is the streamlined approval process. While traditional lenders may take 30-60 days to approve and fund a loan, hard money lenders can evaluate opportunities and provide capital within days. This speed advantage comes from asset-based underwriting that focuses on the property value and the borrower's exit strategy rather than personal financial documentation, employment verification, and credit scoring models. For investments where the opportunity window is measured in days, such as foreclosure auctions, distressed seller situations, or competitive bidding environments, this rapid response capability can be the difference between securing a profitable deal and watching it go to another investor.
Phoenix's dynamic real estate market creates constant demand for fast financing. From trustee sales and foreclosure auctions requiring same-day or next-day funding commitments to estate sales needing quick closes to off-market deals where the first investor with proof of funds wins, speed translates directly into deal flow. Short-term investor loans enable sophisticated operators to compete effectively in these fast-moving environments, capturing spreads and returns that slower-moving investors cannot access. The cost of short-term financing is often insignificant compared to the profit potential of deals that would otherwise be impossible to fund.
Service Applications
Auction and foreclosure purchases represent the classic use case for short-term investor loans. Properties sold at trustee sales, sheriff sales, or foreclosure auctions must often be purchased with cash or cash-equivalent financing and closed within days. Traditional lenders cannot meet these timelines, eliminating bank-dependent buyers from competition. Hard money short-term loans provide the speed necessary to bid confidently at auctions, with lenders who understand auction procedures, can provide proof of funds letters, and can close quickly once you win a bid. The loan is then repaid through resale, refinancing, or rental of the acquired property.
Wholesale and assignment deals frequently require short-term capital when the wholesaler needs to actually close on a property before assigning the contract to an end buyer. While many wholesalers operate by assigning contracts without taking title, certain situations, such as REO properties that prohibit assignments, double closings, or deals requiring renovation before resale, require the wholesaler to temporarily own the property. Short-term investor loans fund these transactions with the loan paid off when the assignment or resale to the end buyer closes, often within days or weeks.
Distressed seller situations where homeowners face foreclosure, need to relocate quickly, or are dealing with personal crises often require fast closings in exchange for price discounts. These sellers prioritize certainty and speed over maximum price, creating opportunities for investors who can close immediately. Short-term loans enable investors to offer the quick closings that secure these deals, with financing arranged before making offers so sellers have confidence the transaction will complete on schedule.
1031 exchange replacement property acquisitions sometimes require fast action when the identification period is closing and the perfect replacement property becomes available. Investors who have sold properties and need to complete exchanges within strict IRS deadlines may need immediate capital to secure replacement properties. Short-term loans bridge the timing gap, allowing exchange completion while preserving tax deferral benefits. Once the exchange is complete or other permanent financing is arranged, the short-term loan is repaid.
Partnership buyouts and entity restructuring occasionally require short-term capital to buy out partners, settle disputes, or restructure ownership. Real estate partnerships can become complicated, and situations arise where one partner needs to exit quickly or ownership needs to consolidate. Short-term loans provide the capital for these transitions, secured by the underlying real estate, with repayment coming from refinance, sale, or new equity partners brought in after the restructuring is complete.
Common Challenges
Investors pursuing time-sensitive opportunities face the fundamental challenge that traditional financing simply cannot move fast enough. The due diligence, underwriting, appraisal, and approval processes that banks require take weeks to complete, by which time auction properties have sold, distressed sellers have accepted other offers, and competitive deals are long gone. This structural mismatch between bank timelines and opportunity windows forces investors to either maintain massive cash reserves, limiting their deal volume, or seek alternative financing.
The uncertainty of traditional loan approvals creates another barrier. Investors cannot confidently commit to purchases or auction bids without certainty that financing will be available. Banks issue pre-approval letters that contain numerous conditions and outs, leaving investors exposed to the risk of loan denial after they've made commitments. Short-term hard money lenders provide genuine certainty, issuing firm commitments quickly that allow investors to act decisively.
Documentation requirements for conventional loans compound the timing problem. Banks want tax returns, pay stubs, employment verification, bank statements, and extensive financial disclosure that takes time to gather and review. Many successful investors have financial situations that don't fit neatly into underwriting boxes, multiple income streams, entity structures, recent transitions, creating delays or denials. Short-term lending focuses on the property and the exit strategy, requiring minimal documentation and moving to closing quickly.
Our Approach
Our short-term lending process is built for speed from the ground up. When you contact us with a time-sensitive opportunity, we immediately assess the property, your purchase price, and your exit strategy. Within hours, we can provide indicative terms, and within 24-48 hours, we can issue a firm commitment letter that you can present to sellers or auction houses as proof of funds. We understand that in fast-moving situations, every hour matters.
We maintain relationships with title companies and attorneys who understand hard money transactions and can close quickly when needed. For auction purchases, we can coordinate same-day or next-day wire transfers. For standard purchases, we can close in as little as 3-5 business days. Our documentation is streamlined but protective, we move fast without cutting corners on the legal protections that matter.
Our loan structures reflect the short-term nature of the financing. Interest rates are higher than long-term loans but calculated only for the time you actually have the money, if you repay in 30 days, you pay 30 days of interest, not a full year's worth. We don't charge prepayment penalties on most short-term programs because we expect you to pay off quickly. Our goal is to provide capital that enables your deals, not to trap you in expensive long-term financing.
Phoenix Market
Phoenix's real estate market operates at a pace that rewards prepared investors. Trustee sales occur daily across Maricopa County, estate sales and probate properties regularly come to market needing quick disposition, and the competitive environment for investment properties means the fastest buyer often wins. From the foreclosure auction steps downtown to the wholesale networks connecting investors with off-market deals, speed is a competitive advantage throughout the Valley. Short-term financing allows local and out-of-state investors alike to participate fully in this dynamic market.
How quickly can you fund a short-term investor loan?
For simple acquisitions with clear title, we can fund in as little as 24-48 hours from application. More typically, we close in 3-5 business days, which allows time for title search, property valuation, and document preparation. For auction purchases where you need a proof of funds letter immediately, we can issue that within hours of receiving basic information about your financial capacity and the target property. The key is communicating your timeline upfront so we can prioritize accordingly.
What are the typical costs for short-term loans?
Short-term loans typically carry interest rates of 10-14% annually plus origination points of 2-4% of the loan amount. While these costs are higher than conventional financing, remember that short-term loans are designed to be repaid quickly, if you have the loan for one month, you're paying roughly 1/12 of the annual interest rate. For a $300,000 loan at 12% held for 30 days, the interest cost is approximately $3,000. When that loan enables you to capture a property with $50,000 in equity or profit potential, the financing cost is a small price for the opportunity.
Do you require a specific exit strategy?
Yes, we need to understand how you plan to repay the loan before we make a commitment. Common exit strategies include selling the property after renovation (fix-and-flip), refinancing into long-term rental financing (rental hold), selling to another investor (wholesale/assignment), or selling other assets to generate repayment funds. We evaluate the feasibility of your exit strategy as part of our underwriting. While we don't require pre-arranged takeout financing, we do need to see a credible path to repayment within the loan term.
Can I get a short-term loan if I have bad credit?
Credit is less important for short-term hard money loans than for conventional financing because the loan is primarily secured by the property and structured for quick repayment. We focus on the deal quality, the property value, your experience, and your exit strategy. That said, extremely poor credit or active bankruptcies can still be problematic. We evaluate each situation individually, if you have a strong deal and a clear exit, credit issues alone won't necessarily disqualify you, though they may affect terms or require additional guarantees.
What happens if I need more time than originally planned?
We understand that real estate projects don't always go according to schedule. If you need more time to complete your exit strategy, we offer loan extensions subject to additional fees and a review of the property status and market conditions. It's important to communicate with us before your loan matures if you anticipate needing an extension, waiting until the last minute limits our options. Most extensions are granted when the project is progressing and additional time is reasonable, but we can't extend indefinitely if there's no viable path to repayment.
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