Secure funding for office buildings, retail spaces, industrial properties, and other commercial real estate ventures throughout Arizona.
Commercial real estate investing requires capital solutions that match the complexity and pace of business property transactions. Traditional commercial lending from banks often involves months of underwriting, extensive personal and business financial documentation, rigid qualification criteria, and conservative loan-to-value ratios that limit leverage. For investors and business owners who need to move quickly on opportunities, refinance maturing debt, or acquire properties that don't fit conventional lending boxes, hard money commercial real estate loans provide an essential financing alternative.
Hard money commercial loans are secured by the property itself rather than the borrower's personal financial profile, allowing for faster approvals and greater flexibility. These loans serve a variety of purposes including acquisition of income-producing properties, cash-out refinancing to access equity, bridge financing during lease-up or repositioning, and rescue capital for projects facing maturity defaults or covenant violations with existing lenders. The asset-based nature of hard money lending means we focus on the property's income potential, location, and value rather than scrutinizing tax returns, requiring personal guarantees in all cases, or mandating lengthy operating histories.
In Arizona's dynamic commercial real estate market, from the high-traffic retail corridors of Scottsdale and Tempe to the industrial parks near Phoenix Sky Harbor Airport and the multi-family developments throughout the Valley, investors need lenders who understand local market dynamics and can structure loans that align with their business plans. Hard money commercial lending fills the gap between traditional bank financing, which works well for stabilized properties with long-term tenants, and equity capital, which dilutes ownership. Our loans allow investors to maintain control of their assets while accessing the leverage needed to scale their portfolios or execute value-add strategies.
Service Applications
Acquisition financing represents one of the most common applications for commercial hard money loans. Investors pursuing office buildings in Phoenix's central business district, retail centers along major arterial roads, industrial warehouses in the West Valley, or multi-family properties in growing submarkets often need to close quickly to compete with cash buyers or meet seller deadlines. Traditional commercial acquisition loans can take 60-90 days to close, while hard money loans can close in 2-3 weeks, allowing investors to secure properties at favorable prices and then refinance into long-term bank financing once the asset is stabilized.
Cash-out refinancing enables commercial property owners to access equity trapped in their real estate for business expansion, property improvements, or portfolio growth. Many investors find themselves with significant equity in appreciated assets but unable to tap it through conventional refinancing due to seasoning requirements, debt coverage ratio constraints, or personal qualification issues. Hard money cash-out loans can provide 65-75% of current value regardless of the original purchase price, giving owners liquidity without forcing them to sell performing assets.
Bridge financing serves investors who need short-term capital to cover gaps between property events. Common scenarios include acquiring a property that requires lease-up before qualifying for permanent financing, funding tenant improvements and leasing commissions to attract quality tenants, covering carrying costs during vacancy periods, or providing capital for capital improvement projects that will increase rents and property value. Bridge loans typically have 12-24 month terms with interest-only payments, aligning costs with the temporary nature of the financing need.
Value-add repositioning projects benefit significantly from hard money financing. These investments involve acquiring underperforming commercial properties, perhaps with below-market rents, deferred maintenance, or poor management, and executing a business plan to improve operations and increase net operating income. Hard money loans can fund both the acquisition and the capital improvements needed for renovation, re-tenanting, or rebranding. Once the property achieves stabilized performance and higher valuation, investors can refinance into conventional financing or sell for a profit.
Distressed commercial properties and note purchases often require hard money financing because of their complexity or condition. Properties in foreclosure, bank REOs, or significant disrepair don't qualify for traditional lending but may offer compelling returns for experienced investors. Similarly, investors who purchase non-performing commercial mortgage notes at discount need capital to foreclose, cure defaults, or modify loans. Hard money lenders experienced in distressed situations can structure loans that accommodate the unique risks and timelines of these investments.
Common Challenges
Commercial real estate investors face distinct challenges that make traditional bank financing difficult or impossible to obtain. One major obstacle is the seasoning requirement, banks typically want to see 12-24 months of stable operating history before refinancing or providing cash-out loans. This creates a catch-22 for investors who improve properties and increase values quickly but can't access their equity through conventional means.
Global cash flow analysis is another challenge with traditional commercial lending. Banks evaluate not just the subject property's performance but the borrower's entire financial picture, including all other real estate investments and business interests. A strong property might be rejected because of weak performance elsewhere in the borrower's portfolio, even if the subject loan is well-secured. Hard money lenders focus on the individual asset, allowing investors to compartmentalize their financing.
Recourse requirements and personal guarantees create additional friction in traditional commercial lending. Most bank loans require unlimited personal guarantees, putting all of a borrower's assets at risk for any single property default. Hard money loans can often be structured as non-recourse or limited recourse, protecting borrowers' other assets. This is particularly valuable for investors with multiple properties who want to isolate risk on individual deals.
Our Approach
Our commercial lending process begins with understanding your property and business plan. We want to know the current income, lease expiration schedule, recent capital improvements, and your plans for the asset, whether that's long-term hold, value-add repositioning, or quick resale. This context helps us structure appropriate loan terms and identify potential issues early in the process.
We move quickly on commercial opportunities. While we conduct thorough due diligence including property inspections, rent roll analysis, and environmental assessments when needed, we streamline the process to close within 2-4 weeks in most cases. Our underwriting emphasizes the property's income potential and market position rather than requiring extensive personal documentation. For experienced commercial investors, we can move even faster on repeat business.
Our loan structures are designed for commercial investment realities. We offer interest-only payments during renovation or lease-up periods, flexible prepayment structures that don't penalize early exit if you refinance or sell, and extension options if your business plan takes longer than anticipated. We understand that commercial real estate is cyclical and that good deals sometimes need extra time, our goal is to be a long-term capital partner, not just a transaction lender.
Phoenix Market
Arizona's commercial real estate market offers diverse opportunities across the Phoenix metropolitan area. Scottsdale's luxury retail corridor, Tempe's growing office market anchored by Arizona State University, Chandler's high-tech industrial parks, and Phoenix's central business district each present unique investment profiles. The state's business-friendly environment, relatively low operating costs compared to coastal markets, and steady population growth support continued demand for well-located commercial properties across all sectors.
What types of commercial properties do you lend on?
We lend on most commercial property types including office buildings, retail centers, industrial warehouses, multi-family apartments (5+ units), mixed-use properties, self-storage facilities, and hospitality properties. We generally avoid highly specialized properties like gas stations or car washes unless the borrower has specific experience with those asset classes. Each property is evaluated based on its location, condition, income potential, and the borrower's business plan.
What are your typical loan terms for commercial properties?
Our commercial hard money loans typically range from 12 months to 5 years, with interest rates between 9% and 13% depending on property type, location, leverage, and borrower experience. We usually lend 65-75% of current value for existing income-producing properties, with loan amounts ranging from $250,000 to $5 million. Interest-only payments are standard, keeping debt service low during renovation or lease-up periods. We don't charge prepayment penalties on many of our programs, giving you flexibility to refinance or sell.
Do you require personal guarantees on commercial loans?
Personal guarantee requirements depend on the property, leverage, and borrower experience. For strong deals with experienced sponsors and moderate leverage, we can often structure loans with limited or no personal recourse. First-time commercial investors or higher-leverage loans typically require guarantees. We evaluate each situation individually and are transparent about guarantee requirements early in the process. Our goal is to structure deals that work for both parties while appropriately managing risk.
How do you evaluate commercial properties for lending?
Our underwriting considers multiple factors: the property's location and market position, current income and expense history, lease rollover schedule and tenant credit quality, physical condition and capital needs, and comparable sales and market rents. For value-add properties, we review your business plan, budget, and timeline. We also evaluate your experience with similar properties and your financial capacity to handle unexpected costs or delays. Unlike banks, we can consider pro forma income for properties being repositioned.
Can you refinance a commercial property I just purchased?
Yes, we offer cash-out refinancing without the lengthy seasoning periods required by banks. If you've added value through renovation, lease-up, or market appreciation, we can help you access that equity even if you purchased the property recently. We typically require at least 90 days of ownership to establish your basis, but beyond that, we look at current value and performance rather than original purchase price. This allows you to recycle capital quickly into new investments.
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