After over 30 years serving Arizona with hard money loans we have been asked many questions. Here is a few of the most common questions. What questions do you have? Feel free to contact us or call anytime, we're here to help make your next project a success!
Here’s the short answer: A hard money loan is a specific type of asset-based loan financing through which a borrower receives funds secured by real property. Hard money loans are typically issued by private investors or companies.
The history of our industry includes endless esoteric debate over wether to call itself private money or hard money lending. If you do an online search of both terms you’ll discover there is no single definition for either. Take a look at any Arizona private money lender or Arizona hard money lender website and you’ll likely find both terms used interchangeably and frequently, but it’s not because they are confused. It’s all about ranking with the search engines and since the battle for business is now fought on the internet no one wants to leave to chance that all pistons aren’t firing. When the phone rings the borrower could be asking for either hard or private money and it makes no sense to argue with a good loan opportunity. “Are you guys private money or hard money?” My stock answer: “Absolutely!, now tell me what you’re trying to accomplish so that we can craft an exacting loan to fit your needs.”
However, truth be told, given the opportunity to introduce myself where there are no preconceived notions about our business, I do prefer to say we are an Arizona private money lender. After all, “private” leaves less to the imagination than “hard”, don’t you think? Kenwood Mortgage Investments is an Arizona private money lender, and yes, we are also an Arizona hard money lender. Call us anything you like, so long as you call us when you need a fast funding without unnecessary personal intrusion or bank underwriting neurosis.
We fund loan amounts of $50,000 to $25,000,000 usually within 24-48 hours of receiving a preliminary title report and are regarded by the industry as a lower rate/longer term alternative to typical terms offered by our competitors. Kenwood makes loans on the following property types:
Interest rates are typically higher than conventional commercial or residential property loans and generally range from 8% to 12%. There is two basic reasons for this: 1) funds for our hard money Arizona loans are sourced from private individuals or investment groups looking for higher returns than are typically offered by banks and other traditional institutions, hence the rates charged are going to be higher than those charged by those institutions. 2) Arizona Hard Money lenders work very quickly, usually closing loans inside of one week from the first phone call or application. This means their capital has to be ready and available at a moments notice. Opportunity cost for the investor are high as they have to keep a fair amount of capital on hand and unemployed, earning very little interest as they stand ready to fund your loan.
The “3 C’s of real estate lending” will ultimately determine the interest rate you pay and the amount of money your lender is willing to loan:
1) Credit. Your credit history is the best indicator of timely payments. Do you generally pay your bills on time or has everybody in your path had to chase you for money? A lenders expectation of how hard they have to work to collect payments will affect your loan pricing. If you have excellent credit history your lender will be open minded to a lower rate. Poor credit will likely result in higher pricing for your hard money Arizona loan or a loan declination altogether.
2) Capacity. Can you afford your Arizona hard money loan? Your loan has to make sense and any professional hard money lender wants to make sure you truly benefit from the loan. Your ability to afford the monthly payments and eventually retire the obligation will be given heavy consideration.
3) Collateral. The condition and marketability of the property is the most important factor your Arizona hard money lender will consider. Your hard money lender wants to understand the true value of the real estate before they can establish a final loan amount. Also known as the “LTV” or loan-to-value ratio. Is your property in great condition and easily marketable in its current state? Does it need work, is it in a major metropolitan region of Arizona or is it rural. And of course, the most important question to answer is “what price can the borrower command for the property if they needed to sell it in the current market?”
Once the “3 C’s” are properly addressed your hard money lender can properly price the loan and arrive at a loan amount they are comfortable with.
Kenwood Mortgage Investments typically funds its Arizona hard money loans within 24 hours of receiving a clear preliminary title report, which is usually in hand within 3-5 days from the submission of your completed loan application found here . In some cases, we have actually funded the loan on the same day the file arrives from a mortgage professional. In every case, no licensed Arizona mortgage broker or banker is faster than Kenwood. Our funds are sourced in-house which means we are not burdened by secondary markets or typical bank-type neurosis. At the moment the loan makes sense we are looking to draft loan documents and fund immediately.
First position Arizona Trust Deeds (Deeds of Trust) - Kenwood Mortgage Investments chases “Safety” not “Yield”
Current yield 8%, for the conservative investor
Kenwood is not your typical hard money lender. We only fund first position loans on highly marketable investment grade real estate at low loan to value ratios earning us the reputation as a “coupon clipper” rather than a “yield chaser”. Our interest rates and fees are set to attract only what we consider to be the safest deed of trust opportunities available. Since 1992, Kenwood Mortgage Investments principals and underwriters have invested millions of their own personal funds in the very loans they underwrite. Few of our competitors can make the same claim. If you have experience with deeds of trust investing in Arizona and have a genuine appreciation for quality loan underwriting, then you should get to know us.
This page of our website is not designed to educate you about Arizona trust deed investing nor is it an offer to sell investments. Instead, we encourage you to contact Randy or Mark to discuss your interest and let us answer any questions you may have.
We are proud of our 22 year history in the business and look forward to sharing it with you.
Good Afternoon Randy, I am very grateful for the opportunity your company and you personally given to me. Thank you for all your help and I appreciate you and your staff and looking forward to working with you in the future. I have just close the loan today and the title should send you all the documents needed. Thank you!
Randy and Tiffany, I just wanted to give a big thank you to both of you for making the Mesa purchase such an easy and hassle-free experience. I look forward to working with you again in the near future.
Randy worked closely with me and my real estate agent to purchase an investment property in Scottsdale and even with us being in Canada, all went smoothly and we closed the transaction on time. Tiffany, Randy and Rose’s assistant, prepared the docs and she is a gem.
I called Randy and Rose at 11:00am and needed a loan that day by 2:00pm to preserve my right to purchase a piece of property I had under construction. Rose typed the docs, Randy got in his car and inspected the property and wired the funds to the seller — and we closed by 1:30 that afternoon!! They dropped everything and saved me. What can I say — they are terrific.
Randy, I called five different lenders before calling you. You definitely had the best terms and now that the deal is closed I can say the best service as well. My client is extremely happy.
I want to say thank you to all the staff at Kenwood Mortgage. Randy, Rose, Mark and Jessica made my loan transaction seem effortless. From the first phone call I made to Kenwood to the closing of my loan it was seamless. They were all very knowledgeable, efficient and professional in dealing with me. Private Money lenders sometimes get a “bad rap” but these guys are “top notch”. They will always be my first call on any of my real estate transactions. Thanks again for a job well done and can’t wait for the next one.
We have a successful jet charter business and had an opportunity to acquire another aircraft but had to move fast. We called Mark Speno and Randy Persson and they underwrote an investment property that our principal owned and funded a cash out refinance within days. Very smooth ride with Mark and Randy. I recommend them to anyone requiring quick real estate financing.
Randy is not a traditional banker. He really cares about me growing my business. He’s always available for advice and feedback about new projects and the development of the current sites.
Randy is the sole reason for me being able to get back on my feet so quickly post bankruptcy, providing me the financial boost that I needed to get me into my current situation.
From: Charles S… “Greg, do you know any hard money lenders you can refer me to?” Reply: Greg S…. “The best in town (highest in integrity) is Randy Persson. It’s Kenwood Mortgage in Scottsdale 480.783.8800"
Thank you for all your help in getting us our loan so quickly. Much appreciated!
Debbie and I would like to thank you for all your efforts in helping us close on our house. Your patience and fortitude with both us and the Title Company is truly appreciated. Here's to the beginning of a very profitable business relationship for us all!
The team at Kenwood Mortgage helped me seize a discount on a time sensitive business opportunity. They brought the experience and resources to the table that made everything seamless. That allowed me to focus on what I do best, bringing high caliber insurance services to my community.
The rapid expansion of Impact Church required transitional capital that would prepare us for the construction of our new campus in Scottsdale. Kenwood is a local lender who understands the direction of our ministry as well as the future value of our operations and closed the loan in record time.
I take pride in my established reputation of moving quickly and efficiently for clients who are competing in the Phoenix Metropolitan real estate market. Kenwood Mortgage Investments provided a 24 hour funding on a fix and flip when other lenders wanted a week or more. Success requires working with a lender who operates the way I do, Kenwood is that lender.
Just an update on the job progress. Couldn’t have pulled this off without your help. Thanks again!
We would like to know if we could work with you again based upon our past project performance... You were so helpful the last time and again we want to express our appreciation for guiding us through our second project.
I’ve worked with Kenwood Mortgage on a number of deals. They are fast, efficient, and ethical. I have never had to wait on a deal to go through, or deal with issues with lost paperwork or hidden fees as I have with other mortgage companies. I will do business with them again.
The professional service at Kenwood Mortgage is A+ Rating! Randy, Rose, Mark and Tiffany are true professionals! They have closed loans for my customers when other lenders have failed. You need a mortgage loan, with fast professional service do yourself a favor and call Kenwood Mortgage!
My father has been investing my trust money with Mark Speno of Kenwood Mortgage for the last 2 years. It has been a very profitable and pleasant relationship. I, along with my father Ron, highly recommend Kenwood as a vehicle for any of your investment needs
Kenwood Mortgage is an amazing family owned business with exceptional professionalism. They have closed loans for my customers and always have been top notch. What they present is what they provide. Always on time and excellent service. I highly recommend this company as they are very trustworthy, honest, fast and efficient. I have had the pleasure to work with them for over 8 years, and know they will always be there for lending needs for my clients.
Good Morning, Mark – I just wanted to thank you, Randy and your partners once more. I truly enjoy speaking and working with you.
Kenwood Mortgage Investments is a licensed Mortgage Broker in the state of Arizona. NMLS MB #13866 | NMLS #170223. This is not a commitment to lend. All loans subject to credit approval. Guidelines subject to change without prior notice. This information is provided to assist business professionals only and is not an advertisement extended to the consumer as defined by Section 226.2 Regulation Z.-EOE. Equal Housing Lender. 7950 East Redfield Road #110, Scottsdale, Arizona 85260. Main: AZ: (480) 783-8800. Powered By Loan Officer X.