Private Real Estate Lending In Arizona
Rates, Construction Loans & More
If you’re building or renovating a property, a bank is not your only financing option. Private real estate lending can provide fast capital to move your project forward, with terms built around the property and your plan.
At Lukrom, that starts with local experience, direct funding, and a lean team that manages your loan from the initial review through payoff.
Here’s what borrowers should know about private real estate lending in Arizona, including interest rates, construction financing, and how Lukrom manages loans in-house.
What is private real estate lending?
Private real estate lending is financing provided by a private individual, company, or fund rather than a traditional bank.
The property serves as collateral, and the lender evaluates its value, the project budget, and the borrower’s repayment plan.
For borrowers, the important details are how the loan supports the project, what it costs, and how funding will work along the way.
How does Lukrom Operate?
Lukrom is based in Phoenix.
Through our lending fund, we directly finance real estate projects in Arizona.
We handle the entire lending process in-house rather than outsourcing it.
That includes reviewing your project, closing the loan, managing construction draws, and servicing it through payoff.
You work directly with our team throughout the life of your loan.
Is Lukrom a direct lender?
Yes. Lukrom is a direct, balance sheet lender.
We fund and retain our loans rather than selling them after closing.
We maintain discretion over our fund’s lending decisions and where capital is deployed.
For borrowers, this means direct access to the team making the decision. Keeping that process in-house supports fast, flexible closings and clear communication when questions arise.
Why having a local Arizona lender matters
A renovation in central Phoenix, a new home in Scottsdale, and a project in the West Valley can have different buyers and competing inventory.
As local real estate market trends show, property values and market conditions can vary significantly by neighborhood.
We understand Arizona’s unique market segmentation.
Being local helps us move quickly because we already know the area, understand property values, and can assess a deal without starting from scratch.
What Are Lukrom's Interest Rates?
Lukrom’s interest rates range from 9.75% to 12%, depending on the project and loan terms.
Does Lukrom fund construction?
Yes. Lukrom offers construction financing, including ground-up construction and renovation projects.
Construction financing provides funding for building or renovating a property, with funds typically released in stages as the project progresses.
At Lukrom, we manage construction draws in-house and charge no draw fees.
Our flexible draw structure helps keep funding aligned with your project’s progress.
How Does Collateral Work in Private Real Estate Lending?
In private real estate lending, collateral is the property used to secure the loan. The property’s value helps the lender evaluate the financing, and the property serves as security if the borrower fails to repay.
At Lukrom, no appraisal is required. If an appraisal is needed, we pay for it without letting it slow down closing.
Full recourse is not required for every loan; guarantee requirements depend on the specific terms.
Before signing, understand what property you’re pledging as collateral and whether you have any personal repayment obligations.
Where to start with Lukrom
Take 5 minutes, fill out the form, and we will intake your deal and price it out.
A loan originator will be in touch the same day regarding pricing!