Arizona hard money is asset-based bridge capital: decisions hinge on the deal and the exit, not on W-2 income. From Phoenix to Tucson, it funds the deals that need to close before a bank could even order an appraisal.
When Arizona deals need hard money
| Deal type | Why speed matters |
|---|---|
| Probate or estate sale | Certainty of capital when title is messy |
| Gap between purchase and permanent debt | Short-term bridge until refi or resale |
| Courthouse auction in Phoenix | Proof of funds and 7–10 business day close beat financed buyers |
| Non-warrantable or distressed collateral | Asset-based decision when agencies decline |
| BRRRR acquisition + rehab start | Bridge to Arizona DSCR after lease-up |
What Arizona investors use hard money for
- Estate and probate acquisitions in Phoenix that need certainty of funds
- BRRRR starts — acquire and rehab, then exit to Arizona DSCR
- Auction and trustee-sale buys — close on the courthouse timeline, not a 45-day bank clock
- Bridge between purchase and permanent financing or sale
Why speed matters here: Arizona foreclosure is non-judicial. Under section 33-808, the sale date is no sooner than the ninety-first day after the notice of sale is recorded. Buyers who can fund on that calendar beat a slower loan.
Arizona ARV bands and leverage caps
Investor ARV on Phoenix sold comps commonly runs $265,000 – $395,000 with $25,000 – $65,000 rehab scopes. Monsoon and habitation heat stress HVAC scope — Phoenix exurban comps do not price Tucson basin ARV.
Arizona state income tax (flat 2.5%) affects flip and hold exits — structure entity and timing with your CPA. Property tax at ~0.62% (below-average effective property tax) flows into carry on every month you hold bridge capital.
Arizona hard money terms (2026)
| Term | Arizona range |
|---|---|
| Scope risk | Monsoon and habitation heat stress HVAC scope — Phoenix exurban comps do not price Tucson basin ARV |
| Leverage | Up to 100% of cost on a qualified flip, capped at 75% ARV. Bridge up to 90% of purchase |
| Rate | Interest-only 8.99%–13.5% + points |
| Term | Flip 6–12 months. Bridge 12–24 months |
| Close | 7–10 business days |
| Basis | Asset-based; $325,000 – $475,000 typical ARV |
Arizona metros we fund
| Metro | Typical basis | Rent band | On-the-ground notes |
|---|---|---|---|
| Phoenix | $340K–$480K | $1,800–$2,500 | trustee-sale acquisitions and strong in-migration |
| Tucson | $280K–$390K | $1,450–$2,000 | lower basis, steady university and defense demand |
Arizona levies state income tax (flat 2.5%); structure the hold or flip exit with that in mind. The market centers on Phoenix, where the median sale price runs about $460,000 (Phoenix market data, 2026) after cooling from its pandemic peak into a more balanced, buyer-friendlier market. Slower absorption rewards conservative ARVs — confirm the DSCR refi clears before assuming a retail flip exit.
Diligence before you fund in Arizona
Insurance and hazard diligence matter in Arizona:
- Extreme heat and HVAC load
- Wildfire risk in northern WUI zones
- Monsoon flooding in low desert washes
What we need to issue a Arizona term sheet
- Entity documents (LLC operating agreement, EIN) for vesting
- Comps or a desktop valuation toward ARV
- Purchase contract or auction confirmation
- Proof of funds for down payment and reserves
- A credible exit — resale comps or projected rent
Bring those and a Arizona file can move to term sheet quickly — the asset and the exit do the talking.
Recent Arizona deal
Phoenix metro flip funded at 90% LTC for trustee-sale acquisition. Asset and exit drove the approval — not a personal income file.
BRRRR pathway: hard money → DSCR in Arizona
The compounding play in Arizona is not the flip check — it is recycling capital. Acquire distressed stock in Phoenix with hard money, rehab on draws, place a tenant at market rent, then exit to Arizona DSCR when the ratio clears at target LTV.
Phoenix auction timelines reward sponsors who can close in days, then pivot to Arizona DSCR once rent is documented.
Define the exit before you borrow
Hard money is a bridge in Phoenix, not a destination. Underwrite one of two exits before you draw:
- Phoenix resale — fix and flip Arizona when spread clears
- Phoenix hold — Arizona DSCR on executed lease and investor tax
Arizona Department of Financial Institutions mortgage licensing applies; verify STR ordinances by municipality.
When hard money is the wrong tool in Phoenix
- Stabilized Phoenix rental with executed leases — use DSCR Arizona
- Owner-occupied strategy — business-purpose bridge does not apply
- No credible exit — hard money is a bridge; underwrite the resale or refinance exit before you borrow
Arizona hard money FAQ
What does Arizona hard money cover?
Business-purpose acquisition and rehab on Phoenix SFR and small multifamily — sized to $265,000 – $395,000 sold comps, not listing aspirational pricing.
What diligence is Arizona-specific?
Monsoon and habitation heat stress HVAC scope — Phoenix exurban comps do not price Tucson basin ARV.
What is the typical Arizona exit?
Resale via fix and flip Phoenix or stabilize into Arizona DSCR when stabilized market rent is reflected in the rent roll.
Arizona bridge acquisition checklist
Monsoon and habitation heat stress HVAC scope — Phoenix exurban comps do not price Tucson basin ARV.
Size Arizona bridge exposure to $265,000 – $395,000 sold-comp discipline on Phoenix, Tucson, and Mesa acquisitions. Scope rehab to $25,000 – $65,000 bands on qualified files; front-load mechanical and rough-in draws so inspections are not wasted on cosmetic passes. Permanent exit: Arizona DSCR.
The trustee-sale calendar in Arizona
Arizona deeds of trust carry a power of sale. Section 33-807 says that power sits with the trustee. After a default, the trustee may sell the property in the manner set out in that chapter.
Section 33-808 tells the trustee how to give notice. The trustee records the notice in each county where the property sits. The trustee also posts the property at least twenty days before the sale. The notice runs in a newspaper at least once a week for four consecutive weeks. The sale date is no sooner than the ninety-first day after the notice of sale was recorded.
Section 33-813 covers reinstatement. The trustor, or another person the section names, may reinstate before 5:00 p.m. mountain standard time on the last day that is not a Saturday or a legal holiday before the sale. The trustee’s fee in that section may not exceed $600 or one-half of one percent of the unpaid principal, whichever is greater. That fee cap belongs to the trustee under section 33-813. It is separate from any charge by Jaken Finance Group.
A Phoenix bid still needs funds that can close. The ninety-first day is the statute’s earliest sale date. It is not your loan’s closing promise. A complete flip or bridge file at Jaken Finance Group closes in 7–10 business days.
Phoenix prices, jobs, and permits
The all-transactions house price index for Arizona was 731.21 in the second quarter of 2026. It was 724.44 a year earlier. The index is 100 in the first quarter of 1980 and is not seasonally adjusted. The change is about 0.9%. Flat prices mean the profit has to come from the buy and the rehab. Appreciation will not rescue a thin spread.
Building permits authorized 4,266 private housing units in August 2026. August 2025 was 2,523. Both figures are not seasonally adjusted. A jump in permits is future supply in the Valley. It does not rewrite a Tucson comp set. Keep Phoenix and Tucson exits in separate tabs.
Not seasonally adjusted unemployment was 5.6% in August 2026 and 4.9% in August 2025 (FRED AZURN). Wage-financed end buyers see that labor market. Cash buyers at a trustee sale see the ninety-first day.
The average 30-year fixed mortgage was 7.28% in the week of October 1, 2026. The week of September 24 was 7.03% (FRED MORTGAGE30US). That is a long loan for an owner-occupant. Your flip note is 8.99%–13.5% interest-only, for 6–12 months, capped at 75% of after-repair value.
Example: a Maricopa bridge, not a flip
Illustration only.
Purchase price $380,000. The asset is already rentable. Rehab is light enough that you are not using a fix-and-flip budget. Bridge leverage is up to 90% of purchase. Ninety percent of $380,000 is $342,000.
Hold the example for 14 months at 10.49% interest-only. Fourteen months fits the 12–24 month bridge term. The rate fits 8.99%–13.5%. Interest over 14 months is $41,855.10. Multiply $342,000 by 10.49%, then by 14, then divide by 12.
If you instead gut the house, switch products. A flip can fund up to 100% of cost on a qualified file and still stops at 75% of after-repair value. The flip term is 6–12 months. Mixing the two caps in one spreadsheet is how sponsors over-borrow.
The long-term rental loan is DSCR in Arizona, at 5.75%–10.5%, closing in about 14 business days. Read bridge loans in Arizona when the hold is the plan. The comparison of flip versus bridge is in fix and flip versus bridge.
Call Jaken Finance Group at (833) 264-7776 with the trustee-sale notice or the purchase contract. Put monsoon drainage and the HVAC tonnage in that first package.
Record the sale date from the notice. Count back to the day the notice was recorded. The statute’s earliest day is the ninety-first day after recording.
Ask whether reinstatement is still open before you wire a deposit. A cured default pulls the property off the sale.
Keep Phoenix comps in the Valley file. Keep Tucson comps in the Tucson file. A basin house and a desert-fringe house do not share one after-repair value.
Quote cooling equipment on current supplier pricing. A spring bid will not cover an August condenser if the index and the lead time have moved.
Name the exit before the term sheet. Resale and a lease into DSCR are different loans, with different close times.
Arizona hard money bridge gates — Phoenix acquisition (2026)
- $30,000 – $85,000 rehab bands — front-load mechanical and rough-in draws before cosmetic inspection passes.
- Permanent exit: Arizona DSCR on executed lease or fix and flip Arizona when spread clears.
- Phoenix metro flip funded at 90% LTC for trustee-sale acquisition.
Phoenix acquisition · 8.99%–13.5% IO · $30,000 – $85,000 draw bands · Tucson discipline · Submit scenario · (833) 264-7776.
Get Your Arizona Hard Money Quote · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.