A conventional loan takes 30 to 45 days. A private loan can fund in 7 to 10. In Phoenix luxury real estate, that gap is the difference between winning the deal and watching it go to an all-cash buyer. Here's how it works.
Most buyers in Paradise Valley, Arcadia, and The Biltmore are competing against cash. When a listing hits the market at $3M, the seller has two offers on the table by Tuesday: one is cash, close in 10 days. The other is your conventional loan, close in 45.
The seller picks cash. Every time.
Private lending — hard money — is asset-based financing. Instead of underwriting your W-2, your tax returns, and your debt-to-income ratio for six weeks, the lender underwrites the property. If the deal makes sense and the equity is there, the loan funds.
That's the speed advantage, and it's not marginal. We're talking 7 to 10 days versus 30 to 45.
Here's the play I run with investors and residential buyers alike:
You pay a premium on the short-term loan (hard money isn't cheap), but you won the deal. In a market where the right property appreciates faster than your holding cost, that's the trade that matters.
If you're a W-2 buyer with perfect credit and no deadline, a conventional loan is fine. But if you're competing with cash in Phoenix luxury, the bank is your bottleneck.
Want to know if your deal qualifies for fast private capital? Schedule a Private Consultation and let's look at it together.
Whether you're acquiring, refinancing, or repositioning property in Paradise Valley, Arcadia, or The Biltmore — let's have a conversation about where you stand and where you want to be.