Anchor Blog

Tips for Creating Your Real Estate Investment Strategy

As you develop your real estate investment strategy, be sure to consider the key fundamentals for success which include, acquiring attractive properties in strong market locations, determining optimal cash flow, and identifying a financial lender that understands the investment property business and can be a valuable partner along the way.

 

Another important consideration in developing your strategy is determining the types of properties you will acquire, and your investment approach for each property. For example, will you include residential and/or commercial real estate? Will your strategy include fix-and-flip and/or buy-and-hold for rental? Our belief is that the healthiest real estate investment business will include a mixture of property types, contributing to diversification and a strong foundation.

 

To learn more about important decisions involved in real estate investing, download How to Invest in Real Estate: A Step-by-Step Guide for the First-Time Investor.

 

Tips for Success

 

 1) Choosing Attractive Properties: Be sure to consider the current demographic in the area. Are there new companies moving in with diverse employees? Will apartments or single-family homes be needed to house the influx of people? Determine the class of the investments you would like to pursue. Want to know more about how properties are classified? Watch this brief video.

 

 2) Strong Market Locations: Determine the city and state you want to invest in. According to Business Insider, Dallas, TX is currently the number one market for rental properties. Do the research to see where your city and state rank, to help determine if market conditions are positive for investing.

 

 3) Optimal Cash Flow: Determining optimal cash flow for your business should be worked on with your financial advisor. Use tools to track expenses and income and closely manage your cash flow statement along with your income statement and balance sheet. Having documentation and analysis of your ROI will empower more strategic decisions as more investments are added to your portfolio.

 

 4) Choosing the Right Lender: Finding a lender to help fund your property investments will be key to building your business. Hard money lenders, such as Anchor Loans, not only help you fund your property deals, but can also offer expert advice. Learn more about Anchor’s lending options.

 

 

by Steve Pollack

Five Key Tips for Real Estate Investment Success

5-key-tips-1

 

I was recently interviewed by Dennis Cisterna, a U.S. News & World Report real estate expert who hosts his own Investability podcast dedicated to teaching listeners how to invest like a real estate insider.

 

During the podcast interview, I shared 5 key tips every real estate investor should know to be successful. You can hear the entire episode on the Investability website (it’s #58), and here’s a summary of what I shared:

 

1) To succeed at fix-and-flip investing, it’s critical to know the value of your property and to know how much time and money should be spent on improvements.

 

2) Your success as an investor will be determined by your expertise at researching the market and analyzing in detail your property’s neighborhood and comparables. Doing your homework up front will save time and money in the long run.

 

3) Choose a lender that does not need to wait for cash from trust deed investors to fund your loan. Anchor Loans has immediate reserves available, and we quickly fund every loan we originate.

 

4) The investor/lender relationship is only successful with regular, forthright communication. If you communicate often with your lender through all stages of the lending process, they will want to work with you to achieve your goals.

 

5) Investors should make sure they partner with a lender with longevity and a proven record of success. Anchor Loans operates in 44 states and the District of Columbia and we have successfully weathered economic downturns because we understand the cyclical nature of real estate.

 

Listen to the entire podcast (Episode #58) or find it on iTunes. The episode can also be downloaded for listening at your leisure. If you’re a current real estate investor, or considering real estate investing, the critical information in this podcast will help you go in with your eyes open, and will highlight the necessity of working with a dependable, trustworthy lender.

 

For continued insight into today’s fix-and-flip investment market, be sure to follow us on Facebook and Twitter, as well as my personal social media accounts including stevepollackceo (Instagram) and @StevePollackCEO (Twitter).

by Steve Pollack

Anchor Loans Does It Again – Over $1 Billion in Loans Funded in 2017

1-billion

 

You may be part of the reason we’re celebrating this significant milestone.

 

Repeating last year’s record-breaking success, for the second consecutive year Anchor Loans funded over $1 billion in loans to real estate investors – and we couldn’t be more excited!  Whether taking advantage of new products like the rental program we launched this year, or leveraging our traditional fix-and-flip loans to transform properties, real estate investors from all over the country received hundreds of millions in Anchor financing to purchase, improve and profit from residential and commercial investment properties.

 

Since 1998 Anchor has funded over 16,600 loans totaling over $5.1 billion. We attribute our phenomenal success to the expertise and dedication of our energetic staff who make customer service the top priority. In addition to providing fast, dependable financing, the Anchor Loans team offers our borrowers guidance on everything from securing the right property, to determine the best loan products to optimize ROI. Supporting our elite team of professionals is our proprietary Fintech platform, which continues to set us apart from our competitors in our ability to rapidly evaluate, underwrite and fund loans – typically within 3 to 10 business days.

 

In the private lending industry, success can be defined any number of ways, but at Anchor, success is helping our clients realize their business goals while we maintain our position as the nation’s number one hard-money lender to the fix-and-flip market.

 

 

by Steve Pollack

Children’s Hunger Fund Mobile Food PAK at Anchor Loans on December 9

charity-post-image

 

This holiday season, Anchor Loans is partnering with the Children’s Hunger Fund (CHF) to give back to local communities. With the help of the CHF, we will be donating 1,000 boxes of food, to families in Pacoima, CA.

 

The Children’s Hunger Fund is a non-profit organization that combats poverty and food insecurity by providing nutritious food to malnourished children all over the globe.

 

On December 9th, the CHF will set up a ‘Mobile Food PAK’, at our offices in Calabasas, CA. There, staff will pack 1,000 boxes of food, which will be delivered to families in Pacoima. Located in the North Eastern region of the San Fernando Valley, Pacoima is home to some of our staff here at Anchor Loans.

 

Anchor’s CFO, Bryan Thompson, who leads the charity committee, believes, “Helping families in need at the holidays gives our employees a sense that they are making a difference. This is a great way for our staff to connect with each other and members of the community.”

 

In order to make our efforts possible, Anchor staff members are hard at work to raise the money needed to fund our donation. Anchor management has also offered to match all donations employees raise.

 

On Friday, December 1st at 12pm, Anchor Loans will be holding a fundraising event at our offices at 5230 Las Virgenes Road, Suite 105 in Calabasas, CA, where we will hold an auction, a raffle, and a bake sale to help meet our goal. Our doors are open to the public for this event. We hope to see you there!

 

video

 

For more information, watch our video.

 

 

 

 

And if you would like to make a financial donation to support our Mobile Food PAK, you can make your contribution by clicking here.

 

 

by Steve Pollack
Posted in Charities | Comments Off on Children’s Hunger Fund Mobile Food PAK at Anchor Loans on December 9

Anchor Loans Surpasses $5 billion in Total Loan Originations to the Fix-and-Flip Market

As the nation’s largest direct private money lender to the “fix-and-flip” industry, Anchor Loans is pleased to announce that we have surpassed $5 billion in total loan origination volume since our inception over 19 years ago.

 

This milestone, in addition to exceeding the $4 billion mark in January of this year, makes 2017 the second consecutive year that we have originated over $1 billion in loans in a single year.  These significant milestones are firsts for our industry, reinforcing Anchor’s leadership position in the market.

 

First fix-and-flip lender to surpass $5 billion in loans

Given the extremely fragmented nature of lenders to the fix-and-flip market, where substantial numbers of small local firms fund between $5 million and $50 million per year, our attainment of over $1 billion in assets under management have significantly increased the number of loans we’re making, which already totals over 16,000.

 

Since 1998 Anchor has shown exceptional performance.  Our experience, relationships, and proprietary Fintech platform set us apart from other lenders in our ability to rapidly evaluate, underwrite and fund loans, typically in as few as 3-10 business days.

 

No other company in this space is close to matching our total loan volume, and that is a testament to the energy, dedication and hard work from everyone on our staff. Contact us  for fix and flip financing and  house flipping financing options we offer.

 

Well done, Anchor team.

 

Steve

 

by Steve Pollack
Posted in About Us, News | Comments Off on Anchor Loans Surpasses $5 billion in Total Loan Originations to the Fix-and-Flip Market

Home Seller Average Price Gain at Record High

If you are a home seller, you have something to cheer about these days.  According to a Q2 2017 U.S. Home Sales Report from Attom Data Solutions, homeowners who sold in the second quarter realized an average price gain of $51,000 since purchase — the highest average price gain for home sellers since Q2 2007, when it was $57,000.

 

home seller profits by metro

The hottest markets can be seen here in ATTOM’s “Home Seller Profits” heat map, with the highest average returns coming in from Northern California (San Jose at 75% and San Francisco at 65%), Seattle (63%) and Denver (62%).

 

What does this mean for you?  It’s the most profitable time to sell a home in over a decade.

 

To read the full report, click here.

 

To keep an eye on these and other market trends affecting fix-and-flip investors, continue to follow our Anchor blog.

 

At Anchor, we don’t just have the fix-and-flip capital you need, but also the ability to tailor that capital to fit your investment objectives. We offer timely, flexible, and competitive services that will work with you to provide new construction finances. We can also help you evaluate particular properties of interest through our loan approval process.

 

by Steve Pollack
Posted in News | Comments Off on Home Seller Average Price Gain at Record High

Better Ways to Monitor Your Local Markets

Are you trying to keep an eye on local markets for fix-and-flip trends and deal opportunities?  In a previously released blog post, Anchor Loans highlighted rental market trends across the top 100 markets from Zumper.com.

 

But what about other market insight tools that you can check out on your own?  One resource that is free on the web is the Stat’s and Trends section of the RealtyTrac website.  Here you can see:

local-markets

Online resources are available to help fix-and-flip investors monitor their local markets.

 

* Summary U.S. real estate statistics and foreclosure trends, including media sale prices and foreclosure rates and hot U.S. Metros.

 

* Market trends, including bank owned, auction and pre-foreclosure properties, as well as number of properties per square footage, bedrooms, and year built

 

* Foreclosure trends by state, with drill-down options to the county level

 

A third resource we found is Local Market Monitor.  Although it is a paid service, the insight and analysis they provide includes:

 

* 320 metro areas with market reviews, economic commentaries, stress-test forecasts, home price forecasts, future construction needed, investment ratings and scores, and more

 

* 3000 counties with home price forecasts, future construction, local cap rates, business growth reports, demographics, and more

 

* 20,000 zip code areas with demographics and home price forecasts

 

At Anchor, we don’t just have the fix-and-flip capital you need, but also the ability to tailor that capital to fit your investment objectives. We offer timely, flexible, and competitive services that will work with you to provide new construction finances. We can also help you evaluate particular properties of interest through our loan approval process.

 

by Steve Pollack

Is Your Community One of the Top 100 Rental Markets?

 

For Rent sign

 

Recently, Zumper released its National Rent Report for August 2017. With over 1 million active listings across the United States, the company analyzed rental data for the top 100 metro areas by population, providing a comprehensive view of the current state of the market.

 

What They Found

 

* One-bedroom apartments increase in rental rates by 1.2% or to an average of $1,176 per apartment nationally.

 

* Two-bedroom rental rates only changed by .6%, increasing rent to $1,399 per apartment.

 

* The top five rental markets were: 1) San Francisco; 2) New York; 3) San Jose; 4) Washington DC and Boston (tied); 5) Los Angeles.

 

* Markets with notable increases included Pittsburgh, Denver, Irvine, Plano, and Gilbert (AZ).

 

* Markets with notable decreases included New Orleans, Sacramento, Scottsdale, Chicago, and St. Petersburg.

 

View the entire 100-market rent index report by visiting Zumper’s report here.

 

For more information about Anchor’s rental loan program, click here.  Or you can email us at info@anchorloans.com or call 310-395-0010.

 

 

by Steve Pollack
Posted in News | Comments Off on Is Your Community One of the Top 100 Rental Markets?

What do you do when your property has been impacted by natural disasters?

Sandbags in torrential flood defence in City Road

 

The potential devastation wind and water can have on a fix-and-flip investment property you own, or one that you are considering purchasing, is significant.

 

In the event of property damage, here are some immediate steps professionals advise any would-be or current property owner:

– File a claim with your homeowner’s insurance as soon as possible.

– If your standard homeowner’s policy does not cover flooding (the average flood claim is $30,000), you can open a claim with FEMA.

– It’s important to know that claims are often handled differently. For example, water coming through your roof might be treated differently than water rushing in from ground level, and vice versa. For these reasons,    in addition to contacting your insurance agent, we also recommend that you learn how the claims process works here.

– Either way, request a certified copy of your policy from your agent if you do not have one, or if it was damaged in the disaster.

 

In the meantime, here are some other factors to take into consideration that impact your flood insurance premiums:

– The age of building(s)

– The number of occupants

– The number of floors

– The location of contents

– The severity of flood risk (currently rated flood zone)

– The location of the first (lowest) floor to the elevation requirement on the flood zone map for your area (used for newer buildings)

– The preferred deductible amount compared with the amount of building and content coverage

 

FEMA offers accessible Q&As for homeowners who are unsure where to start. Visit their site here for more information. Even if you have not been impacted by hurricane Harvey or Irma, we urge that you research ways to prepare and cover your properties before a disaster strikes.

 

 

by Steve Pollack

5 Most Common Errors Made in House Flipping

Hands Counting

 

 

Since the early 2000s, house flipping has become one of America’s most popular trades. While many flippers are having great success, others have failed in the marketplace due to critical factors they’ve overlooked. No amount of insider insights and information can outweigh these five profit-killing mistakes fix-and-flip investors often make.

 

Not enough money

Researching all of your financing options and making sure the sale price will cover the cost of acquisition, interest, taxes and renovations, as well as the cost of utilities, is crucial to overcoming the financial hurdles. People too often fall in love with a piece of property at what seems like a great price, but there are many factors that can slow down the renovation and sales process, increasing your holding costs and turning what looked like a profitable venture into an unprofitable one.

 

Not enough time

Finding the right house is a process that takes time. And, we aren’t just referring to searching for the right property, we’re including all the time it takes for the renovations, inspections and full compliance checks necessary to consummate the ultimate sale. If you don’t schedule all of these events upfront, and stick to that schedule, putting the house back on the market might happen much later than you expected (see “Not enough money” above.)

 

Not enough skills

What does it take to flip a house? Being handy with drywall or a toolbox is not the only experience needed to be a successful flipper. Many flippers are also full-time contractors, but if you aren’t, find experienced and licensed professionals for your general contracting and sub-contracting needs. Common “team members” include electricians, plumbers, roofers, pavers, and more. You don’t need to go it alone, and in many case you shouldn’t. One misstep could erase all of your anticipated profits.

 

Not enough knowledge

In order to pick the right property, it might help to possess, or bring in, expertise and local knowledge about tax laws, housing market trends, and the skills needed for renovations. These “knowledge skills” can be just as important to a profitable fix-and-flip as the hard skills mentioned above.

 

Not enough patience

It’s all too common for rookies to throw cash at any problem that arises, or to “speed things up.” Carefully consider which problems need fixing and which ones don’t. Some fixes are must have, but many are simply nice to have. Don’t let the perfect get in the way of the good. Your goal is to make a property better, not perfect, to make the sale and earn the rewards. As for speeding things up, if you planned out your schedule as we recommend above, any impatience should melt away.

 

 

Read more about these five common errors made in house flipping by clicking here. Download our free Borrower’s Guide for more information about fix-and-flips on the Anchor Loans website.

 

by Steve Pollack

The Must-Have Guide To Maximize Flipping Profits

  • How To Speed Up loan closings
  • Reduce risk and increase your capital
  • How to Grow Your Fix and Flip Business Faster
Flip More Effectively Today