How to Use Other People’s Money to Buy Real Estate in Phoenix

Using other people’s money to buy real estate in Phoenix will allow you to buy more lucrative investments than you otherwise could. 

There are a number of options you have to consider if you aren’t starting from a position of having a lot of capital to spend–read on as we explore how you can use other people’s money to buy real estate in Phoenix. Please note that this article is for informational purposes, not financial or legal advice.


Government-backed, conventional, or private loans are common ways to use other people’s money to buy real estate in Phoenix. However, you must compare the rates and fees of each and consider the repayment terms to take advantage of the best offers available. Currently, the interest rates for 30-year fixed-rate conventional loans average 6.79 to 6.85%, and the interest rates for 15-year fixed-rate conventional loans average around 6.12. Of course, these rates can vary depending on your circumstances. The requirements of each type of loan may vary greatly; however, they typically require borrowers to have a minimum credit score, a certain level of assets, and reliable income. You’ll also need your savings, with enough to make a downpayment, 


Joining together a group of compatible investors, leveraging the expertise of other investors, and pooling financial resources with a shared goal and strategy is one way to use other people’s money to buy real estate in Phoenix. Considering these factors will help you build a great team; agree beforehand on how the partners will handle disputes and get everything in writing. It’s also important that your lines of communication remain open and transparent and that you can be honest about shortcomings or mistakes. Finally, of course, you’ll need to learn more about their goals and vision for the partnership to ensure a good fit and that they have experience, a good reputation, a strong work ethic, and are financially sound.

Seller Financing

Sellers who are willing to finance create an excellent opportunity for you to use other people’s money to buy real estate in Phoenix. In addition, these sellers provide an option for those credit issues or other states of affairs that cause them to be unable to obtain other types of loans. Sellers offering to finance are often more willing to work with buyers on the loan terms; however, they will remain in control of the property and hold ownership until the buyers have fully repaid the loan, which you must carefully consider. Remember, it is always advisable to have a professional review of the documents for any financial agreement before signing.

Hard Money Loans

Hard money loans are short-term loans typically used by investors who need or prefer to use other people’s money to buy real estate in Phoenix. Private lenders or companies more willing to take on the risk, like buyers with credit issues or properties needing severe repairs, typically offer loans. However, hard money loans come with higher interest rates and fees, shorter repayment periods, and higher payments and risk. In addition, your hard money loan may not be subject to the same consumer protections and regulations as conventional loans. In addition, if there are issues with repaying the loan, the lender will foreclose on the property.

Professional buyers at Shot Rock Holdings can help you understand all you need to know about using other people’s money to buy real estate in Phoenix. The professional buyers at Shot Rock Holdings are happy to answer questions about getting started or issues holding you back without obligation; let us help you over the hurdles. Our professional buyers are seasoned local experts who want to help. Don’t forget to ask about our current inventory of the best real estate available in Phoenix. Call Shot Rock Holdings at 480-331-5226.

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