📅 Monday, November 2, 2026 · By Landon Luchtel, Co-Founder, Kayak Capital · 8 min read

What Hard Money Lenders Require From First-Time Investors in Phoenix

The first time you apply for a hard money loan, you do not know what the lender is going to ask for. Some lenders send a 20 item checklist. Some ask for two years of tax returns, a credit pull, and a resume of past flips you do not have yet. A few ask for almost nothing, which can feel even more suspicious.

Here is what Phoenix hard money lenders actually require from first-time investors in 2026, which requirements are real and which are just friction, and how to choose your first lender so your first deal is not your most expensive one.

What Every Hard Money Lender Needs to See

No matter who you borrow from, a hard money loan is secured by the property. That means every serious lender needs the same core information about the deal:

• A signed purchase contract with the address, price, and closing date.
• Your rehab budget, ideally a line item scope of work, so the lender can see what you are buying and what it will be worth.
• Your expected after repair value (ARV), supported by a few nearby sales.
• Your down payment and closing funds. Hard money is rarely 100 percent financing, so you need cash for the gap.
• Insurance on the property, with the lender named as mortgagee, before funding.
• A title or escrow company handling the closing.

If a lender asks for those six things, they are doing their job. They are underwriting the deal, which is exactly what asset based lending is supposed to do.

What Many Lenders Add on Top

This is where first-time investors get tripped up. Many national platforms and fund lenders layer bank style requirements on top of the deal itself:

None of those extra requirements make your deal safer. They make the loan look more like a bank loan, which is the thing you went to a hard money lender to avoid.

How Much Cash Do You Really Need for Your First Flip?

This is the question that decides whether a first deal happens at all, and it is where fees hit beginners hardest, because points are paid in cash at closing.

Say you find a Phoenix flip at $300,000 with a $50,000 rehab budget. Total project cost is $350,000. At 85 percent of total cost, the loan is $297,500 and your down payment is $52,500.

Same house, same loan amount. The fee based lender needs $9,437.50 more of your cash on day one, before you have swung a hammer. For a first-time investor, that money is often the difference between closing the deal and walking away from it, or between having a contingency reserve and having none. (Title, escrow, and insurance costs are separate and apply with any lender.)

If loan to cost is new to you, our guide to how loan-to-cost works walks through the math step by step.

How to Choose Your First Phoenix Hard Money Lender

Your first lender matters more than your tenth. You do not yet know which corners can be cut, and you need someone who will pick up the phone when the inspection turns up a cracked slab. Here is what to look for:

1. Total cost in dollars. Ask every lender to put the full cost of your loan in writing, in dollars, for your expected hold time. Compare the totals, not the rates.
2. Who makes the decision. Ask whether you are talking to the person who approves the loan or to someone who passes your file up a chain. Direct lenders answer the same day.
3. How draws work. Get the draw process in writing: how you request money, how fast it funds, and whether each draw costs a fee. Slow draws stall your contractor and stretch your timeline.
4. What happens if you run long. First flips run long. Ask what an extension costs before you need one.
5. Local track record. Ask how many Phoenix loans the lender has funded, and ask for a couple of borrowers you can call.
6. No surprises at the closing table. Ask whether any charge will appear on the settlement statement that is not on the term sheet.

Our post on the 7 checks before you trust a hard money lender goes deeper on each one, and our guide to comparing Phoenix lenders includes a scorecard you can print.

Red Flags for First-Time Borrowers

A few things should make any beginner slow down:

• An upfront “application fee” or “commitment fee” before you have a term sheet.
• A rate that changes after your appraisal or after you have already opened escrow.
• A lender who cannot tell you who will approve the loan.
• Pressure to sign today on a deal that closes in three weeks.
• A term sheet with fees described only as percentages, so the dollar amount is hard to see.

How Kayak Capital Works With First-Time Investors

We built Kayak Capital to be the lender we wanted when we started. We lend our own money, so the people you talk to are the people who decide. Our pricing is the same whether it is your first deal or your fiftieth:

• 12 percent interest and zero points, zero fees
• Up to 85 percent of total cost
• No credit pull and no tax returns: the deal qualifies you
• In house property evaluation, no third party appraisal
• Approval typically within the hour and same day funding
• Rehab draws funded in about 24 hours

We have funded more than 1,700 loans over 13 years. We will tell you if the numbers do not work, and we would rather do that before you sign a contract than after. (Brand new to flipping? Start with our first-time flipper's guide.)

Frequently Asked Questions

What do hard money lenders typically require from first-time real estate investors?

Every hard money lender needs a signed purchase contract, a rehab budget, an estimated after repair value, proof of your down payment, insurance, and a title company. Many national lenders also require a credit check, tax returns, and an appraisal. Kayak Capital does not pull credit or require tax returns.

How should first-time investors choose a Phoenix hard money lender?

Compare total cost in dollars for your hold time, confirm you are talking to the decision maker, get the draw process and extension costs in writing, and ask for local borrowers you can call. Choose the lender that is cheapest in total and easiest to reach when something goes wrong.

What should Phoenix investors look for in a hard money lender?

Look for transparent total pricing, fast and predictable draws, a direct decision maker, a real Phoenix track record, and no fees that only appear at closing. Rate alone is a poor guide.

Can I get a hard money loan with no flipping experience?

Yes. Hard money is asset based, so the property and the numbers matter most. Some lenders raise rates or add fees for beginners. Kayak Capital charges the same 12 percent, zero points and zero fees on a first deal.

How much down payment do I need for a hard money loan in Phoenix?

With 85 percent loan to cost, plan on about 15 percent of the purchase plus rehab, plus closing costs and reserves. Avoid lenders whose points and fees add thousands more in cash at closing.