Investors and Hard-Money Lenders Work Together on Phoenix's Built-Up Housing Stock
After a period during which it became a national poster child for what could go wrong with an economy, the Valley of the Sun is back on the upswing. With an incredibly low cost of living compared to the level of opportunity in the region, the Phoenix area is once again attracting newcomers by the droves. Whether that means so-called "snow birds" seeking a warm place to spend the winter or young families putting down roots for good, many people in the Phoenix area are looking for places to live.
That is good news for local property investors. Because there was so much excess housing stock created during the last building boom, local developers have not yet swung fully back into action. Instead, they remain mostly on the sidelines, waiting for the many homes that are still in limbo to be taken permanently off the market.
That leaves a whole lot of opportunity for property investors to facilitate this process. At one active property investing company in the area, the number of annual deals has risen by ten percent or more for each of the last five years. Given that the company was already flush with active, professional investors at the start of this period, that trajectory is an undeniably impressive one.
If investors are now more active than ever before, the same can likely be said of the lenders who contribute so fundamentally to their work. Companies like ipfloansphoenix.com are likewise busier than at virtually any time in the past, giving local investors exactly what they need as they seek to put homes into the hands of those who will ultimately live in them.
In many cases, this means hard-money deals with an inherently short time horizon. For many investors, holding a home in the Phoenix area for more than a month or so is something strictly to be avoided at the present time. Few traditional banks are interested in working with those of this outlook, but for hard-money specialists, these deals often make a great deal of sense. While precise figures are hard to come by, some insiders maintain that hard-money lending activity has never been more common, another sign of the current state of the Phoenix real estate market.
