No rule requires investors to use their own money

Multiple funding options are available, some of which do not require your own capital. Using other people’s money is considered a prime strategy in real estate investment. Private lenders, hard money lenders, and experienced house-flipping investors are all practical funding sources for your next deal. Here are some options for flipping a house without your own funds:

1. Private Lenders

Private lenders often act as an investor’s primary funding source. They function as banks without the cumbersome process of traditional lenders. Arizona private lenders can be anyone with surplus funds, an interest in investing, and openness to negotiation. More importantly, private lenders are independent from financial institutions or government-backed agencies. This independence allows them to set their own terms.

Paying a higher interest rate is worthwhile if it secures quick funding. Many investors value the ability to act quickly over securing the lowest interest rate. In contrast, traditional banks may require 30 to 45 days to close, risking the loss of a deal.

Most private lenders want to be protected, so they usually ask you to sign a document promising to pay and use the property as security. Sometimes, they may want you to back up the loan with your other assets, but you can talk to them about the terms.

1. Hard Money Lenders

Hard money lenders are companies offering specialized short-term real estate-backed loans. According to Level 4 Funding, a hard money lender in Arizona, the company specializes in providing loans for various property types and typically serves borrowers who may not qualify for traditional financing. While typical transactional lenders offer loans of 15 or 30 years, Phoenix hard money lenders typically offer terms of 6 months to 2 years (Lenders Arizona, n.d.). Also, their lending guidelines are looser than traditional institutions, and their rates are slightly higher. Arizona hard money lenders usually charge 11 to 15 percent interest and about one to five points (upfront fees based on the loan amount). (Hard Money Loan Rates 2026: 9%-15% + Fee Breakdown, 2026) However, there are no universal guidelines; each lender has different criteria.

New England Home Buyers state, “You can finance all repairs with hard money lenders. Unlike traditional loans, hard money loans don’t depend on your credit score. However, these loans have higher fees and rates. Interest typically ranges from 8% to 15%, and points from one to five.”

Most Arizona hard money lenders typically finance only about 70 percent of the purchase price. This means investors hoping to avoid using their own cash may need to combine financing with private lenders.

What Is The 70% Rule in House Fix and Flip Lender?

Home flippers follow a clear model: buy a low-priced house, renovate, and resell for profit. To guide offers, use the 70 percent rule—pay no more than 70% of the after-repair value minus renovation costs. Estimate the future value post-renovation, multiply by 70%, then subtract repair expenses to find your maximum purchase price.

After-repair value (ARV) ✕ .70 − Estimated repair costs = Maximum buying price (Brumer-Smith, 2025)

The 70% rule is only a guideline. Before buying, research market trends, consult real estate pros for realistic resale values, and meet contractors to assess repair needs.

How To Find Arizona Hard Money Lenders

Hard money lenders operate across the country, so finding them is essential. Search online for hard money lenders in Arizona or Phoenix. You’ll find companies offering these loans. Attend real estate investor meetings to meet lenders directly. Also, consult real estate professionals in your network or ask for introductions to experienced lenders.

Matt Prosory RI/MLO/Broker
NCO Enterprises LLC
Private Hard Money
DBA Setabay/SetabayLoan/Level 4 Funding
26731 N 90th Drive
Peoria AZ 85383
Matt@Level4Funding.com
Telephone: 623-582-4444
NMLS 2062278 NMLS 1118493

References

Geraci, A. (2025). Arizona Private Money Lending: Licensing, Compliance & Document Requirements. Automate Loan Docs. https://automateloandocs.com/pages/blog/arizona-private-lending-guide.html

(2025). How long does it take to close on a house?. Opendoor. https://www.opendoor.com/articles/how-long-does-closing-take

(n.d.). Hard Money Lenders Arizona. HardMoneyHome.com. https://www.hardmoneyhome.com/lenders/view/hard-money-lenders-arizona

(2026). Hard Money Loan Rates 2026: 9%-15% + Fee Breakdown. ClearHouse Lending. https://www.clearhouselending.com/blog/hard-money-loan-rates-guide

(2023). Hard Money Lenders Arizona – Reviews, Rates, & Lending Guidelines. HardMoneyHome.com. https://www.hardmoneyhome.com/lenders/view/hard-money-lenders-arizona

Brumer-Smith, L. (2025). What is the After Repair Value?. The Motley Fool. https://www.fool.com/investing/stock-market/market-sectors/real-estate-investing/basics/arv-formula/