A Beginner’s Guide to House Flipping

If you’re new to fix-and-flip real estate investing, you may have many questions about how to proceed, particularly when it comes to securing financing and buying a property. Learning the answers to those questions is crucial to getting your fix-and-flip career off the ground. Here’s a quick look at what you should know as a fix-and-flip beginner.

How much cash does a fix-and-flip beginner need?

For beginning fix-and-flip investors, cash flow is crucial to turning a profit. Depending on the heat of the market you’re operating in, the best deals might be snapped up quickly by other investors with quick access to capital, so be prepared in advance by knowing what your property flip will cost and how much capital you have available.

The two most obvious costs associated with a fix-and-flip project are the property’s purchase price and the cost of renovations. To get an idea of what it will cost to buy and renovate your investment property, research the home sale prices in your target area well ahead of any project; know what homes similar to yours have recently sold for, and determine the cost of repairs and upgrades your property will need to make it competitive in that market.

In addition to acquisition and renovation costs, there are other expenses to consider. If your property’s title is encumbered with unpaid back taxes, for example, it could cost you thousands of dollars. Know these costs in advance, and don’t forget to build them into your budget!

Are you using your own savings to pay for your investment property, or will you need to borrow money to leverage your cash on hand? If you plan to use bank or hard money financing, be sure to include interest and loan fees to your project budget.

Finally, don’t neglect to plan for utilities, agent commissions and closing costs. It’s unlikely that any one of these costs will bust your budget on its own. However, several added together may make a big impact on your bottom line.

What are the best fix-and-flip financing options for beginners?

There are a number of ways to finance your first fix-and-flip investment. In addition to non-lender funding sources such as savings, 401(k) funds, or private gifts or loans, there are a few different commercial loan types a beginning fix-and-flip investor should consider:

  • Loan type #1: a hard money loan. A hard money loan typically features a higher interest rate and shorter term than most bank loans. Approval is based more on the value of a “hard” asset (in this case, the home you’re rehabilitating), than the credit history of the borrower, so these loans often feature significantly lower qualifying restrictions compared to conventional loans. After making a down payment of 15 to 20 percent, a hard money borrower makes interest-only payments followed by a balloon repayment of the principal at the end of the loan term when the rehabbed property is sold.
  • Loan type #2: a HELOC. A Home Equity Line of Credit or HELOC allows you to borrow against the value of your current home, making this a good option for beginning investors that already own a home. Using a HELOC, investors can borrow as much or as little as they need for a fix-and-flip project, up to the limit set by the equity in their home.
  • Loan type #3: conventional bank financing. Though experienced investors may prefer fewer qualifying restrictions and faster funding, a new fix-and-flip investor may be more willing to bear the strict approval criteria and slower funding pace common to traditional bank loans.

What other steps should a beginning fix-and-flip investor take?

In addition to understanding financing, there are some other steps a fix-and-flip beginner may want to consider:

1) Find a mentor:
While experience is a great teacher, aligning with a mentor can help you avoid costly mistakes. An experienced mentor can share with you the details of their successes and their failures and may also be willing to help you identify the best projects to pursue. How do you find one? In this post for BiggerPockets.com, real estate investor Michael Zuber offers some great guidance on identifying and selecting a mentor.

2) Consider wholesaling:
It may be wise for a fix-and-flip beginner to start their real estate investment career as a wholesaler. Wholesalers develop a keen eye for distressed properties and learn how to network with owners and potential buyers to find deals and execute purchase contracts quickly. Wholesalers do not perform repairs on properties, nor do they need huge cash reserves, as they will act as a go-between between sellers and fix-and-flip investors looking for lucrative projects, as explained by Investopedia in this scenario:

A typical wholesaling scenario looks like this: The wholesaler has a house under contract for $90,000 that he estimates needs $20,000 in repairs but will sell for $150,000 once the repairs are made. Using his network of investors, he finds an eager buyer at $100,000. He assigns the contract to this investor, who then has a profitable fixer-upper project. The wholesaler makes a $10,000 profit without ever owning the home.

By starting your real estate investment career as a wholesaler, you can build important relationships with investors and other key players in your target market as you build up your cash reserves to help fund your first fix-and-flip project.

3) Find a team:
Finally, it’s crucial for beginning fix-and-flip investors to assemble a reliable group of collaborators. A successful house flip can’t be done alone. You’ll need some combination of contractors, designers, insurance and real estate agents, a reliable lender and other specialists to help you achieve your investment goals. Focus on building your fix-and-flip team early and you’ll reap the rewards later in your investment career.

When you’re ready to invest, Anchor Loans can help with financing

Once you’re ready to begin investing, Anchor Loans can help you with the next steps. We’re happy to work with fix-and-flip investors early in their journey, as long as they meet certain conditions. The Anchor Blog is a great resource for investors of all experience levels to help you build a long-term investment strategy or get approved for a fix-and-flip loan. And once you’re ready to get started, Anchor Loans is happy to speak with you about beginning your fix-and-flip journey.

Recovering from and Planning for Government Shutdowns: What Fix-and-Flip Investors Should Know

The government shutdown is over, at least for the next three weeks while lawmakers continue to negotiate. But even with the record-breaking shutdown temporarily resolved, real estate investors may be experiencing a ripple effect, and now is a good time to assess the strength of your real estate investment business and shore up any weaknesses.

In looking ahead, how might this and future shutdowns affect the fix-and-flip industry, and what can you do to be better prepared to weather uncertainty?

In the event of a shutdown, you could experience issues with delayed closings, potentially leaving you vulnerable to financial overextension. To avoid potential long-term effects on your business, planning for uncertainty is critical for a fix-and-flip investor.

Before the next shutdown or other crisis comes along, take this opportunity to assess your fix-and-flip business plan, as Fortune Builders recommends.

In the face of uncertainty, make sure you have solid answers to these questions:

1) What are your goals and what concrete steps will you lay out to reach those goals? It’s difficult to have a good plan if you don’t have a firm idea where you’d like to end up. A slow period is a good time to assess what goals you hope to reach with your fix-and-flip investment business and what you need to do to reach them.

2) Who are the most important members of your team and how do they help you reach your business goals? No investor in the fix-and-flip world succeeds alone, and your business plan should account for the people who help you drive your success. As you assess your plan, consider the people upon whom you depend to make your business run. Are your relationships as strong as they could be? If so, is there anyone you could add to your team to improve it even more? If not, what can you do to shore up your important relationships?

3) What does a SWOT analysis reveal about your plan? Assessing the Strengths, Weaknesses, Opportunities, and Threats to your business plan is an excellent way to uncover potential gaps or avenues for improvement. If home buying slows as a result of delays in FHA and other government mortgage programs, are you prepared for any potential financial impact on your business?

4) Where is your funding coming from? Is it secure? Funding is perhaps the most important element of your business plan and having a clear understanding of your funding sources and their reliability is crucially important. While the government shutdown may have only affected specific sectors of the real estate lending industry, it’s still a good time to assess your funding stream and its strength moving forward.

How the lending sector was affected by the shutdown

Effects of the government shutdown showed up most prominently in the government lending sector. Bankrate.com reports several types of loans directly handled by the federal government experienced the most significant issues during the shutdown. While the shutdown didn’t affect VA Loans, FHA mortgages could continue to experience closing delays well beyond the end of the shutdown, thanks to a backlog of unprocessed loans.

Ultimately, the shutdown hit USDA loans the hardest. The U.S. Department of Agriculture did not issue any new USDA Direct Loans or Guaranteed loans for the duration of the shutdown, though that lending program has now resumed.

The bottom line is, whether it’s a government shutdown or any other widespread disruption of the housing market, uncertainty can cause problems for investors. To combat the threat of market uncertainty, investors should take this time to reestablish ties with lenders, buyers, and title companies, and review their business plans. Take every opportunity to make sure everyone on your team is on the same page regarding any deals you may have in the works. Even if a market disruption doesn’t affect your projects directly, a little extra communication is never a bad thing.

How to Get Approved for a Fix-and-Flip Loan

As a successful fix-and-flip investor, you know there is nothing more important to your bottom line than quick access to capital. In a competitive industry where cash is king and lucrative deals are snapped up quickly, it is critical to have cash available to execute purchase contracts, compete at foreclosure auctions, close cash-only deals and fund construction. If your business strategy includes using borrowed capital for your next rehab project, a fix-and-flip lender can approve and fund your loan in 5 to 10 days—some can fund even faster for rush deals.

What Fix-and-Flip Lenders Look For

While you are choosing an experienced, dependable fix-and-flip lender to finance your deal, you should also be aware of four key underwriting components that will affect whether your loan might be approved—the location of the property, the value of the property, your level of experience and your financial standing and credit history. Here’s how those factors play a role in a hard money lender’s approval decision:

1) Where is the property located?

Your project’s location is an important factor in fix-and-flip loan approval. State regulations can affect what lenders are able to offer in terms of loan type, interest rates, fees, points, loan-to-value ratio, loan length and prepayment penalties. Be aware that some lenders operate in a limited geographic area, and many do not finance properties in high crime areas or in rural areas where population size is limited.

2) What is the value of the property?

Your fix-and-flip lender will need to know the as-is value of the property, your estimate of the cost of repairs, and the property’s estimated after-repair value (ARV). Although your lender will conduct its own valuation, you will need to present an estimate based on your research of neighborhood comps and your knowledge of the property’s condition and estimated construction costs.

3) What is your level of experience?

If you have had past success flipping houses for a profit, your lender may be willing to negotiate loan-to-value ratio, rates and points. Some lenders will work with a first-time flipper, but to mitigate their risk they might offer loan terms that include a larger down payment, higher interest rate, and more points.

4) What is your financial standing and credit history?

Hard money loans are usually based more on the value of the asset than on the borrower’s credit history, however, you will want to ask your lender if there is a minimum acceptable credit score and whether a recent bankruptcy or foreclosure could disqualify you. Every lender is different, and fix-and-flip lenders are generally more flexible than conventional banks, so don’t count yourself out until you’ve spoken to your lender about the programs they have available for borrowers with credit challenges. Conversely, borrowers with good credit may find fix-and-flip lenders are willing to offer discounted rates and points, or they may accept a lower down payment.

Typically, a hard money lender will expect a qualified borrower to contribute at least 20% of the cost of purchasing a fix-and-flip property, but case-by-case exceptions are made, so be sure to ask your lender how much cash you should expect to bring to the deal.

How to Get Approved for a Fix-and-Flip Loan with Anchor Loans

  • Your subject property must be located in one of the 46 U.S. states (and D.C.) in which we operate, and cannot be situated in a high crime area, or in a rural community below 50k population.
  • Anchor’s valuation team must determine that there is sufficient ARV in your deal to warrant loan approval.
  • Anchor’s preferred borrower has at least five fix-and-flip projects under their belt, but we also work with the less experienced investor if they are operating as a qualified corporation or multi-member LLC.
  • Loan applicants should expect to contribute 20% of acquisition costs to be approved for financing. This amount is sometimes lower for high volume borrowers—on a case-by-case basis.
  • Although perfect credit isn’t a make-or-break factor in our loans, it certainly doesn’t hurt. Borrowers with good-to-excellent credit should talk with an account executive to find out how they can benefit from their higher score. Anchor’s preferred minimum credit score is 620, but that can be lower on a case-by-case basis.

If you’re ready for your next fix-and-flip project and think you may be a good fit with Anchor Loans, we’d love to hear from you. Learn more about what we’re looking for from our fix-and-flip borrowers here and contact us when you’re ready to get started.

Our fast, flexible and transparent lending process can help you meet your funding needs on your fix-and-flip project right away.

5 Tips for Writing an Eye-Catching Property Listing

There are a lot of properties on the market vying for the attention of buyers, and that means to attract buyers to your property and get it sold for the best possible price, you’ll need to create a unique listing. Your post should be well-written, short, and informative. Give it an eye-catching headline and do your best to inject a bit of humor or personality to make your listing stand out. Here are five tips on writing an eye-catching property listing:

Be unique

You’ve probably got an idea in mind of what your listing is supposed to look like, but there’s no reason yours must be the same as all the others. Put some thought and effort into making your listing interesting and unique. Emphasize improvements you’ve made to the property and write a bit about the curb appeal, quality of upgrades or value-added design changes buyers in your market are looking for.

Keep it short and sweet

Although you want your listing to be unique, you really don’t want it to be uniquely long. Write your post with the goal of keeping it short, sweet, and to the point. Tell the reader what they need to know, then wrap things up. This applies to your headline as well. Research has shown that the ideal headline length is five words.

Craft an attention-grabbing headline

Your headline is one of the most important parts of your listing, so don’t write it as an afterthought. The headline is what grabs a reader’s attention and if your headline is boring, no one will look at your listing. If you’re having trouble thinking of a good headline, consider some of the positives of your property, or use humor to draw attention to your listing. What’s important is that your headline makes buyers do a doubletake and entices them to read more.

Improve your writing before you post

A big part of any good property listing is the quality of the writing. Be sure to check out some online writing tools like ViaWriting and WritingPopulist for help with grammar. Don’t risk posting a property listing with grammatical mistakes that will make you look like an amateur.

Include some great pictures

Great photos are absolutely key to selling your property. Show off all the work you’ve put in to raising the value of your property by including some high-quality photos of the home’s interior and exterior. Buyers want to know that it is worth their time to take a look at your property, and providing some great photos will help nudge them along. If you really want to make your listing stand out, include a 360 image or a video tour of the house and the neighborhood. Many buyers are as interested in the local community as the property itself, so if your property is in a great location, show it.

Conclusion

You’ve put a lot of work into improving the value of your property, so take the time to write a listing that will get your property the attention and sales price it deserves.

 

Grace Carter

Grace Carter is a tech writer and editor at Legit Essay Writing Service and UKWritings website. She curates tech submissions, reviews and proofreads them. Also, Grace teaches creative writing at Essay roo educational portal.

Fix-and-Flip Data You Should Consider Before Your Next Project


Maximizing the return on your investment in a property can be a complicated process. Asking the right questions about a property you’re considering is an excellent way to determine whether it’s a good investment, but digging into hard fix-and-flip data can also be a worthwhile pursuit.

 

Here are three data sources you should consider before you purchase your next investment property.

1 – Foreclosure Reports

Foreclosure data in your target real estate market can reveal much about its strength and the likelihood that a particular property will turn a profit. A sudden jump in foreclosures could mean that your area is experiencing some economic hardship, and investing could be less likely to produce a good return.

 

However, it’s also worth noting that foreclosure reports don’t always accurately depict the current market. It can take months for a foreclosure trend to become evident in the data you’re reviewing. Such a slow-moving process can make it difficult to accurately assess whether or not a trend will affect your investments.

2 – Population Movement, Average Days on Market and Inventory Levels

The number of potential buyers in a given real estate market has a significant effect on how property in that market moves. In short, more buyers means more potential for moving a property quickly, which in turn brings you a faster return on your investment.

 

Understanding how population levels in your target market are moving, therefore, can help you accurately gauge the strength of a market. A growing population means more house-hungry buyers who could be ready to make a purchase. A declining population, meanwhile, often signals a cooling market.

 

Checking the average days a property is on the market and the market’s home inventory levels can also help you understand the market’s strength or weakness. A shorter time on the market typically means a strong pool of buyers who may be willing to compete for available homes. Likewise, a limited amount of inventory on the market can have a positive effect on prices through the simple effect of supply and demand.

3 – Crime Rates and School Districts

Finally, crime statistics and school district quality are both good indicators of how a market will be perceived. Take note of what crimes, if any, are committed in the market while paying attention to the quality of the nearby school districts. Buyers are willing to pay more money for properties located in good school districts.

The 5 Best States for Fix-and-Flip Investing

Flipping houses can be big business, but not all markets are created equal. In some parts of the country, investors are getting more bang for their buck. In Maryland or Pennsylvania, for example, a fix-and-flip investor can make an average profit of $110,000 on their flipped house, while other states may not offer quite the same return.

So where exactly does your money go further? What are the best states for fix-and-flip investing and what makes them the cream of the crop? Here are the five best states for the fix-and-flip investor.

1. Texas

The housing market in Texas is on the rise, working its way up the list of the nation’s best housing prices for fix-and-flip investors: the sale of flipped homes in some metro areas rose by over 20% in 2017.

 

The Dallas and Fort Worth markets are among the most attractive to prospective flippers. Homes in the Dallas area can routinely be flipped for profits exceeding $100,000.

2. New Jersey

Because of changing federal tax laws, many New Jersey home buyers are targeting specific price ranges for upcoming home purchases. Most buyers are looking to purchase a property under the $725,000 cap on mortgage interest deductions.

 

Fix-and-flip investors can take advantage of these changes by targeting inexpensive properties that can be upgraded with more luxurious features, giving buyers a quality property under the $725,000 market ceiling. The most popular cities in New Jersey are those with short commute times to major cities like New York and Philadelphia.

3. Tennessee

At an average of around $260,000, housing prices in Tennessee are some of the lowest in the country, and because Tennessee is full of so many up-and-coming areas, it’s a popular choice for home flippers hoping to make a quick return on investment. The average time to flip in Tennessee is one of the lowest rates in the country at just 147 days from the initial purchase to the time of sale.

4. Pennsylvania

Like Tennessee, many parts of Pennsylvania are experiencing a dramatic revitalization, which in turn is pushing up home prices. Still, Pennsylvania boasts a lower median housing cost, so there’s room for greater profit with the right flipping strategy. In 2017, when more than 207,000 homes were flipped nationwide, Pennsylvania featured four of the most profitable markets in the country.

5. Colorado

As more companies choose Colorado for their corporate headquarters, demand for housing is rising rapidly. Denver leads the way in the Colorado fix-and-flip market, with flipped homes in many Denver zip codes returning gross profits well over $100,000.

 

Ashley Lipman

Content marketing specialist

Ashley is an award-winning writer who discovered her passion in providing creative solutions for building brands like TheUrbanAvenue online. Since her first high school award in Creative Writing, she continues to deliver awesome content through various niches.

Three Real Estate Trends to Watch in 2019

Every year presents new and unique challenges to real estate investors. As 2018 draws to a close, it’s time to take stock of what’s on the horizon. What emerging real estate trends that will shape the market in 2019 and beyond?

 

Experts from the Forbes Real Estate Council recently presented their ideas on what factors will shape the world of real estate in the New Year. Here are three major trend areas to watch as we prepare to flip the calendar to 2019.

Trend 1 – More big shifts in prices and rates

2018 showed us that first time home buyers (millennials in particular) are more willing than ever to consider smaller homes. In 2019, it’s fair to expect that trend will continue. However, these small homes could become more luxury-focused as buyers try to wring more bang out of their buck.

 

“I think we will see a seismic shift in what luxury looks like,” said Elizabeth Ann Stribling-Kivlan in Forbes ”There’s now a real opening for the “tiny house movement” to be synonymous with luxury.”

 

But someone still has to build those homes. Though 2018 brought some relief, the construction industry is still lagging behind demand for housing. Limited inventory means rising prices, and a strengthening economy means rising interest rates.

 

That’s not necessarily bad news for investors, though. Timing the right purchase ahead of a bump in prices could mean a very substantial return on your investment. Do your due diligence with these market trends in mind. Rising prices in 2019 could be a win for your fix-and-flip project.

Trend 2 – Real estate emerges as a support to big business and environmental living

Commercial real estate isn’t necessarily the domain of the fix-and-flip investor, but it’s an important trend to watch. According to Christopher Kelly, real estate “will evolve from being a commodity to a strategic weapon in the war for top talent that will be won and lost on experience.”

 

As big companies expand into new areas through commercial real estate, their workforce will need somewhere to live. Fix-and-flip investors can take advantage of this trend by targeting properties that support a moving workforce.

 

Outside of the world of big business, more buyers are beginning to see their home as an asset in the fight against global warming. Therefore, green real estate investing should be a key focus of any fix-and-flip investor. Targeting properties with environmentally friendly features or adding them during renovations could open up your investment to an entirely new market of buyers.

 

Trend 3 – Technology and real estate will become more intertwined than ever

The world of real estate is already very dependent on technology. Sites and apps like Zillow and Trulia, for example, have revolutionized the home search process for millions of buyers. Zillow receives as many as 160 million visits every month and even began buying houses of its own in 2018.

 

These trends only figure to continue as data gathering and usage becomes more prevalent in the real estate industry, especially in one key area: artificial intelligence.

 

“The next big arms race in real estate may involve artificial intelligence,” said Ashkan Zandieh, who believes AI could help investors identify new profit sources they may not have otherwise considered.

 

But whether it’s AI or just a new real estate app, technology is likely to play an even bigger role in the world of real estate than ever before.

Cryptocurrency and Real Estate Investing – Is It the Future?

 

 

Even though it is still approached with caution by the public, cryptocurrency is slowly but surely gaining a foothold in various markets. The doubts, of course, are understandable, as Bitcoin’s value in particular fluctuates quite unpredictably. Coindesk reports that the world’s most popular cryptocurrency ended September with its lowest volatility for over a year, but also suggests that this is merely the calm before yet another storm. Despite issues like these, many experts believe that cryptocurrency will shape the future of finance, and as that future unfolds, we could soon see a significant role for cryptocurrency in real estate.

 

Cryptocurrency is becoming more accessible

 

Although Bitcoin is primarily used today as a trading commodity, FXCM notes that Bitcoin is also gaining ground in various traditional businesses. These include entertainment outlets, restaurants, and even casinos. Several global retailers, such as Walmart, Amazon, and McDonald’s, are also projected to have cryptocurrency payment systems installed in 2019.

 

With many businesses jumping on the bandwagon, it’s only right to ponder how cryptocurrency will affect real estate. Forbes Real Estate Council’s Matthew Murphy believes that cryptocurrency will innovate the real estate sector via blockchain. This is the decentralized technology used by Bitcoin and other cryptocurrencies to record transactions. Because of its decentralized nature, blockchain is perceivably indestructible and impervious to hacks. Transactions in real estate are often done offline, through personal engagements between specific entities. The introduction of blockchain smart contracts can change this norm, as real estate assets can now be tokenized and traded. There would also be no need for a middle person to facilitate the transactions.

 

Real estate is beginning to welcome cryptocurrency

 

Meanwhile, some real estate entities are already accepting cryptocurrencies as payment. Just last March, the New York Post reported on the first two units in New York City to be sold under a Bitcoin contract. The real estate developer, Ben Shaoul, shared that he had used the third party service BitPay to receive Bitcoin payments. The service, in turn, paid Shaoul’s company in cash. Several other listings accepting Bitcoin have also turned up in Miami, the Bay Area, and even across Australia and Canada.

 

It is interesting to note that listings with cryptocurrency options tend to get more exposure, and are also often luxury condos. Though such listings are becoming more common, Redfin agent Aaron Drucker advises first-time home buyers not to go for Bitcoin transactions because it’s currently too risky. Leave these to buyers who are out to buy their second or third homes.

 

Millennials could be key to cryptocurrency in real estate

 

All in all, cryptocurrency’s entry into the real estate market comes at an opportune time, as previously pointed out on Anchor Loans, the increasing number of Millennial home buyers. This demographic already accounts for 34% of buyers in the market, hence the need for house flipping strategies that appeal to them. When it comes to cryptocurrency, research showed that about 30% of Millennials prefer investing in Bitcoin than in stocks or government bonds. In general, Millennials are more open to this new technology in order to create opportunities for themselves. That’s why it’s safe to say that the generation has helped fuel the cryptocurrency trend, making it a household word in numerous industries.

 

Perhaps Millennial buyers’ demand will increase the role of cryptocurrency in real estate. Global acceptance of the digital currency may still be in its infancy, but with cryptocurrencies already seeing uses in real estate and other businesses, it’s only a matter of time.

 

Elaine Nelson is a former real estate agent who worked in the industry for six years. She operated mainly in Kansas. Elaine shares her real estate insights in the digital space whenever she’s not busy being a stay-at-home mom and wife. She also likes to read about real estate trends and contemplate how these will affect the future of the industry.

 

Three Fix-and-Flip Investors Share How Anchor Loans Made a Difference

Anchor Loans Before and After

 

We recently spoke with three fix-and-flip investors, all of whom used Anchor Loans on their own projects (before and after photos above). In their own words, here’s how Anchor Loans made the difference in their individual projects and in their investments going forward.

 

Over the course of your relationship with Anchor Loans, what’s made them stand out to you?

 

Vartan A.: “A couple of things. One is speed. The speed is a big factor, how things get processed, and that they can fund quickly. Another factor is service. That is, their customer service. They know what our needs are and they’re knowledgeable about our business. That makes our job a lot easier and smoother.

 

“The service and speed are definitely a big part. I also want to mention [Anchor Loans account executive] Lance Spencer. Lance has been very accessible. Any time I need something done quick or in a special way, Lance always accommodates.”

 

Zachary L.: “At the time [when my relationship with Anchor Loans began] it was really about the personal relationship when we were just getting started, and now it’s just their quick turnaround and their reliability. I always know that they’re going to be able to get it done. There’s never any fear.”

 

Hernan H.: “Their reliability. In one word, that’s it. They’re bankable. You can take them for their word if they say they’re going to do something. They’re a company that stands behind what they say. I can make promises knowing I’m receiving the same kind of quality, a seriousness on the side of Anchor. If they say “yes I can fund this for you in three days or four days or five days,” they’ll get it done.”

 

Is there a specific instance where your close personal connection with Anchor Loans made a difference for you?

 

Zachary L.: “Definitely. It happens all the time when you take on a project where you have a partner or someone who wants to use their own broker or go with a certain outfit, and it’s always a big pain. For me, it’s about that familiarity and that relationship, so I’m always sort of pushing to Anchor because there’s so much going on in an escrow situation and you don’t want more hassle.

 

“When we go hard, with released contingencies, there’s just fear with some of the newer outfits or people I don’t know. Are they really going to come through? You never want to lose your earnest money deposit. I’ve never had an issue with Anchor delaying something or not being able to get documents out in time.”

 

Vartan A.: “There has been more than one instance where speed and service have played a role. In fact, I’ll come back to how Lance has helped out. It’s been very critical. Sometimes we deal with a lot of moving parts in our business, like listing agents or buyers’ agents or homeowners. Everybody wants things a certain way, and I want to buy the property and to accommodate these different people. So, sometimes if you have the right team, like Lance and his team, everything becomes much smoother.”

 

What do you see as the big difference between Anchor and other lenders with whom you’ve worked?

 

Zachary L.: “Before I used a lot of private money, investors or smaller lenders. It was a bit more amateur and a bit looser. It’s a lot less reliable. Moving forward with Anchor, it’s just very consistent.

 

Hernan H.: I’ve always considered Anchor my primary lender because of the relationship that was established at the personal level as well as business. Again, back to the fact that they’re a company you can count on. As an investor, when I’m sitting in front of a seller, I need to be sure I give promises that can be fulfilled, and that really relies on whether I’m finding it with my own cash or coming to anchor with a loan, that’s an important factor there for me.”

 

Ready to get started with Anchor Loans? Contact our team and start your fix-and-flip investment project today!

Empty Rental Property: How To Make It Rent-able

What to do with empty rental property

 

 

 

 

 

 

 

 


An empty rental property isn’t the worst thing that can happen in your real estate business, but it’s far from ideal. An empty rental unit costs almost as much to maintain as an occupied unit, except without the benefit of rental income.

So, what do you do if you find yourself in a situation where your rental property is unavoidably empty? Here are three steps to take to make your empty property as rent-able as it can be.

1) Check what else is available

Have you stayed on top of the rest of the rental market in your area? If you find your property vacant and haven’t kept up with rental trends, it’s possible the market may have shifted in such a way that your property is no longer as desirable as it once was.

Make sure you have a good feel for what sorts of properties are renting in your area, and if you find the market has passed you by, take steps to bring your property more in line with current trends.

2) Reassess your property’s strengths and weaknesses, then adjust strategy

After seeing what else is on the market, take a close look at your own property’s strengths and weaknesses. What does it offer that others don’t? Where does it fall short? Assessing the property in light of the rest of the market is a key step towards understanding why you may be without a tenant.

Once you’ve taken stock of your property, consider your strategy for getting it in front of potential renters. How are you marketing your property? If it’s not showcasing what’s best about the unit or house, you may be leaving money on the table.

3) Look for new or different markets

Once you’ve gotten a good handle on your property and how it aligns with the market as a whole, you may want to consider a more radical step —targeting a different market for your property.

The market for potential renters is changing nationwide. Most notably, it’s getting younger. Driven by the comparative affordability, millennials are turning to rental units rather than home ownership as their long-term housing solution. Adjusting your rental strategy to target this growing pool of potential renters could move your property from vacant to occupied.

It may also be worth exploring the potential of marketing your rental property as a vacation unit. Though long-term renters are ideal for many reasons, if your property is in a market ripe for tourism or vacationing, your rental property could be a good fit. Consider exploring this market as you look to get a new renter into your available property.