Anchor Blog

Anchor Loans Launches New Rental Loan Program for Buy-and-Hold Investors

We are pleased to announce that Anchor Loans, the nation’s largest hard-money lender to the fix-and-flip industry, has launched a new rental loan program developed to assist current landlords in growing their property portfolios and achieving their overall business goals.

 

Stephen Pollack, CEO

Stephen Pollack, CEO

For the first time, Anchor is providing financing for rental property investment in every state where we operate.  Our rental product is extremely user friendly and will have increased flexibility to help current rental property owner-operators achieve their business goals.

 

Buy-and-hold investors are increasingly seeking our assistance to take advantage of opportunities to expand their real estate portfolios.  Offering a rental financing product is the perfect solution to serve the needs of Anchor’s current clients, and expand our business beyond the fix-and-flip industry we have historically served.

 

Over the last twenty years, Anchor has grown and matured, and so have our clients.  As a firm, we consider ourselves a partner with our borrowers. We are committed to our clients’ success, and being able to offer a quality rental product will help our clients, as well as our company, continue to grow.

 

Over 85 percent of Anchor’s customers are repeat borrowers who appreciate the speed, efficiency, expertise, flexibility and customer service that come with Anchor financing.  Anchor’s experience, relationships and proprietary Fintech platform continue to set us apart from other lenders in our ability to rapidly evaluate, underwrite and fund loans, usually in as few as 3-10 business days. With over $1.1 billion in loans funded in 2016, Anchor Loans is the nation’s leading direct-private lender to the fix-and-flip industry.

 

Steve Pollack | President & CEO

 

by Steve Pollack
Posted in About Us | Comments Off on Anchor Loans Launches New Rental Loan Program for Buy-and-Hold Investors

Tips and Tricks for Successful Fix-and-Flip Business Owners

Tools to have for your fix-and-flip business

 

Being successful is something that we all aspire to in life. If you want to be your own boss in the fix-and-flip industry, here are some helpful tips and tricks to get you started.

 

Many fix-and-flip business owners started out as a part-time flipper to preserve a steady income flow and perhaps insurance coverage. However, if you have been flipping for more than 5 years and can save a years worth of income, you are ready to become a full-time flipper. Here are some tips to get you started.

 

Develop a business plan – every business should begin with a plan that succinctly defines its mission and purpose; how it will buy and sell, profitability goals, returns expected on properties; major achievements already gained; a market analysis and target properties identified within that market; a marketing plan; known competitors; the company’s advisors; examples of project budgets; and organizational structure and overhead expenses.

 

Financial support for multiple projects – multiple concurrent investments require teaming up with a lender that understands and specializes in helping business scale, like Anchor Loans.

 

Team of advisors – make sure your trusted advisors know you are going full-time and that you intend to keep them busy. It may be smart to have more than one advisor in each category to avoid possible delays and bottlenecks.

 

Delegate time consuming tasks – for those tasks that have to be done, but maybe are not exactly adding value to your business – delegate them. Examples of these include mowing the lawn of your properties, showing the home, minor repairs and marketing the home.

 

Create your tool kit – you never know when that next deal will fall into your arms. Always have a toolkit ready to investigate that “can’t miss” property that one of your team member’s just tipped you off about, including a flashlight, business cards, tape measure, camera and calculator.

 

If you still have questions, contact us and we can help you through a few of these. We are partners to our clients and want them all to be successful.

 

To get started with your next deal, sign up for our borrower portal.

 

by Steve Pollack
Posted in Uncategorized | Comments Off on Tips and Tricks for Successful Fix-and-Flip Business Owners

What Do Fintech and Fix-and-Flip Have in Common?

Fintech

 

Fintech, or financial technology, is one of those up and coming terms that investors are starting to hear about, but may not fully understand yet. Similar to other industries where technology tools are streamlining workflows and increasing productivity, fintech ranges from Apple Pay and Quickbooks, to investment software apps and processes. All of these are designed to increase transparency of finances for businesses and consumers and to speed up customer service and engagement.

 

The fix-and-flip industry has its share of fintech to help property investors like yourselves manage their business on location or at their office. Helping to lead the way is  Anchor Loans, which has become the largest private lender to the fix-and-flip market by – in part – providing investors with an easy to use borrower portal that helps make their next deal happen more quickly.

 

So how does it work? A new borrower simply signs up for free at anchorloans.com to create their account. The signup process takes less than a minute to complete, and once it’s done they have immediate access to a borrow portal that helps them submit a new loan application in less than 10 minutes. In addition, as time goes by they can use the portal to view the status of that deal (and others that might be in progress), as well as review and manage deals already paid. It’s a fintech platform that helps fix-and-flip investors manage their business at the click of a button, streamlining the entire borrowing and funding process.

 

Leveraging technology and business processes to make it easier for borrowers is nothing new at Anchor Loans.   We’ve been doing it for 19 years. Our goal is simple: “Apply. Submit. Fund.”

 

To learn more about other fintech tools that are shaping the marketplace, check out this recent Forbes article.

 

Ready for your next deal? Sign up for the Anchor Loans borrower portal and get started.

by Steve Pollack

Twelve Pieces of Advice When Flipping

We follow the flipping industry just like you do, and we recently came across a couple of timely lists that we thought were worth passing along.

 

The first one was “How to Flip a House: 7 Signs You’ll Rake in Huge Profits” from Realtor.com, and the second was “Top 5 Must Haves For Flipping Homes In NYC” on TGDaily.com.

 

So, how do you make huge profits?  According to Margaret Heidenry, paying attention to these seven signs can make a big difference:

 

1) It’s in a neighborhood where homes sell fast (anything sooner than 62 days beats the national average)

2) The house meets the 70% rule (if you want to make 10-30% in profit, you need to acquire that home at 70% of the final after-repair-value price)

3) You can price the house right (hint: use median prices as a guide)

4) The property has more than one bedroom

5) The needed repairs are mostly cosmetic

6) Understand what scares home buyers (replacing old appliances and roofs for example)

7) The neighborhood itself doesn’t need flipping (people enjoy living there)

 

To read the full article with details on each of these factors, click here.

 

How about the importance of considering regional or local issues when looking to fix-and-flip properties?  TGDaily.com highlights these five factors when flipping properties in New York City:

 

Being patient is just one of the great pieces of advice in these articles

Being patient is one of 12 pieces of great advice shared in these articles

1) Have legal and tax advisers on hand that understand the complexity of property laws in New York

2) It’s more practical in NYC to have your own handyman than to keep contacting a variety of local contractors to fix a home

3) Select location wisely (be sure the neighborhood has what target buyers want)

4) Estimate material costs accurately (just knowing the value of land in NYC is not enough)

5) Be patient (so you don’t pay too much, too soon, too often)

 

For more information on each of these considerations, click here.

 

In summary, neighborhoods matter, price matters, the home itself matters, timing matters, and laws and taxes matter.  Paying attention to these and other details can help quickly turn flipping problems into flipping profits for your business.

 

by Steve Pollack

Can the Age of a Home Make a Difference?

There are several strategies to finding that next property to fix-and-flip, and one that experienced investors often rely on is looking at neighborhoods with homes that are right around 20 years of age.

 

What’s so special about 20+ year of age? It’s because many of them will only require cosmetic fixes to kitchens, bathrooms and décor.  Nominal updates equal lower repair costs and shorter repair periods to get the home ready for sale, which means increased profits for you the investor.

 

Below is a high-level checklist for inspecting 20+ year old properties:

 

Checklist

20+ year old homes can be a great investment if you follow this simple checklist.

1)  Look for potentially hazardous materials like lead and asbestos in homes built before the 1980s.

 

2) Be sure to inspect for termite damage (e.g. sagging or buckling floors.

 

3) Mold or mildew damage can be common in basements and bathrooms, but are easily fixable provided they are not also inside walls.

 

4) Plumbing problems are evident if you see discoloration on floors and ceilings. Consider bringing in a licensed plumber if you see these telltale signs.

 

5) Foundation or structural issues may be present if you see cracks or uneven areas in the foundation. It’s “buyer beware” if you see these signals. Foundation repairs can put you in a whole new cost category.

 

6) Radon gas naturally occurs in certain areas of the country, but is easily detectable during inspection.

 

7) Missing or damaged shingles can be signs of roofing problems, which also can be easily detected during inspection.

 

8) Inefficient windows often plague older homes, so make plans to plug leaks or introduce replacements to increase energy efficiency and market attractiveness.

 

9) Electrical systems should be brought up to current standards, but because this can be expensive consider having these systems evaluated by a licensed electrician.

 

10) Mechanical equipment such as water heaters, furnaces and air conditioning units can also be expensive replacements, so consider having them evaluated by licensed HVAC professional to make sure there are no surprises.

 

For more solutions on how some of these age issues can be fixed or avoided, please feel free to visit this article by Money Crashers.

 

Ready to finance your next fix and flip property?  Anchor Loans has funded more than 14,000 short-term loans totaling over $4 billion— the majority of them to borrowers with less than perfect credit and on properties in need of repair.  Click here to apply for a fix and flip loan or get a quick estimate.

by Steve Pollack

The Main Stages of Rehabbing Your House

rehabbing your house

 

Now that you have built trust, presented an offer, and closed the sale you are ready for the next phase of your project – rehabbing your house.  There are six key stages to keep in mind, beginning with pre-construction to-do’s and ending with final details.  In between you will address things like structure, systems, and surfaces (both finished and unfinished.)

 

1)  Pre-construction

 

In this stage you are primarily focused on securing your new property using a locksmith, filing your plans and permits, and lining up your exterminators, plumbers, electricians, engineering and carpentry specialists.  How can you make this stage easier?  Start by identifying and on-boarding your project manager or General Contractor.

 

2) Rough Structure

 

In this stage you put your structural engineers, laborers, plumbers, carpenters, and landscapers to work doing rough soil grading, and rough plumbing, framing, sub-flooring, roof decking, and outside doors, windows, and trim.

 

3) Major Systems

 

In this stage you will turn your attention to some major items like fireplaces, HVAC, plumbing in walls and ceilings, bathtubs and showers, BATT insulation, and exterior masonry and concrete.   Your team here includes a number of licensed professionals including HVAC, plumbing, and electrical.   It also includes a chimney sweep, mason, and handyman or installer for the insulation.

 

4) Unfinished Surfaces

 

In this stage your efforts focus on drywall, garage doors, gutters, wood floors, cabinetry, interior doors and trim, and a cleanup crew prior to painting.  Here you should rely on your drywall crew, garage door company, gutter vendor, hardwood floor vendor, cabinet vendor/installer, trim carpenters, and make-ready crew.

 

5) Finished Surfaces

 

Now you are ready to begin your finished-surface projects like painting, installing countertops, laying down tile and flooring, and finishing up your HVAC, plumbing, and electrical work.  Your team for this phase includes your painters (interior and exterior), countertop vendor (laminate, granite, etc.), flooring vendor (tile, vinyl, or hardwood), HVAC specialistm and licensed plumber and electrician.

 

6) Final Details

 

This stage includes all of your fun “final touches” like mirrors and shower doors, appliances, carpeting, landscaping, and adding just the right accessories and décor to add sizzle to the property.  Here you will be relying on your trim carpenter, glass contractor, appliance vendor, landscaper, designer, and final cleanup crew.

 

If these six stages for rehabbing your house seem like a lot of work, they certainly can be if you don’t have your team ready and assembled as you need them.  As mentioned above, having a solid project manager can really help smooth out this process for you.  We will talk more about General Contractors and scheduling out upcoming work in upcoming posts.

 

If you are looking to scale up your volume, snap up quick deals and increase your ROI, short-term fix-and-flip financing may be the right choice for you.

 

Interested in faster loan closings, lower risk, and growing your fix-and-flip business?  Get our free step-by-step Fix-and-Flip Borrowers Guide for driving ROI and growth.

 

Ready to finance your next fix and flip property?  Anchor Loans has funded more than 13,900 short-term loans totaling over $4 billion— the majority of them to borrowers with less than perfect credit and on properties in need of repair.  Click here to apply for a loan or get a quick estimate.

 

 

by Steve Pollack

Key Steps in Closing Your Next Fix-and-Flip Property

Step to Closing Your Property

 

Ok, you have established trust with the seller and now it’s time to get down to the business of closing your investment property. Here are the steps that fix-and-flip professionals take to insure an orderly and effective closing:

 

1) Set up escrow

 

2) Arrange inspections by specialists on your team for electrical, plumbing, HVAC, chimney, well, asbestos, radon, lead paint, and insect damage (e.g. termites)

 

3) Use the inspection data to help confirm improvement cost estimates you made at the beginning of your property valuation

 

4) Order a property survey, request a settlement statement, and review the title search report

 

5) Prepare financing and arrange for property insurance

 

6) Prepare for repairs by scheduling roof, HVAC, etc., and also schedule pest control (if needed)

 

7) Prepare for improvements by scheduling your drywall, flooring, countertops, windows, etc.

 

8) Also schedule utilities, and have a locksmith ready to come out to re-key and install your keybox

 

9) Schedule your cleanout crew, and have a dumpster delivered so you can begin the tear-down part of your re-hab project

 

10) If you are working with a designer or architect, schedule that meeting as well

 

11) Sign your closing documents

 

Congratulations, you’ve acquired your investment and are now ready to go. In our next post we will look at the major stages of rehabbing your property.

 

Are you interested in faster flip loan closings, lower risk, and growing your fix-and-flip business? Get our free step-by-step Fix-and-Flip Borrowers Guide for driving ROI and growth.

 

Ready to finance your next fix and flip property? Click here to apply for a fix and flip loan or get a quick estimate.

by Steve Pollack

Five Ways to Establish Trust with a Seller

establish-trust

 

It’s not surprising that when you do the things necessary to quickly establish trust with a seller, your ability to make a successful offer on a fix-and-flip property goes up dramatically.

 

You’ve worked hard to find a very particular kind of seller and property, and now you have to get them to agree to turn that property over to you. But look at the situation from their perspective. They bought this property, and now (as is too often the case) they are reluctantly in need of selling it and selling it quickly. But in a competitive fix-and-flip market, where multiple people may be vying for that same property with bridge loans for real estate and more, the buyer who establishes trust first will have the upper hand.

 

Here are five ways that you can quickly establish trust with a seller:

 

1) Express an awareness of their situation. As mentioned above, often times finding the right property at the right price is the result of an unanticipated situation in the sellers life. Rather than hide from it, show empathy with their predicament and let them know that you are here to help.

 

2) Share your value proposition. State why you want the property and the improvement steps you plan to take to make it better.

 

3) Show your ability to close. It’s highly likely that they are in need of selling the property and getting cash quickly. Your ability to show them that you can do both – with ease – will lessen their anxiety and motivate them to act.

 

4) Explain the improvement costs needed to fix the place. As you begin talking with the seller, they may start thinking that they can do this work themselves. If you share with them all the direct and hidden costs in getting a house like theirs ready to sell at market value, you will be seen as a trusted advisor and it should temper their enthusiasm to take such a path on their own.

 

5) If appropriate, share your expected profit. Let them know why you are doing what you are doing and what you hope to get out of it. This can communicate to the seller that both of you are in this together, and that you have no hidden agendas.

 

Whether you use one, two, or all five of the above steps, the key is to be honest with the seller right from the start.

 

Feel free to add personal touches like:

 

* Sharing how you’ve rehabbed similar properties and how well they turned out.

 

* Taking notes and pictures of the property while you are with the seller to show how much you care.

 

* Verifying facts as you go to show that you want to get it right.

 

* Making a decision once rapport and trust have been established and asking for the sale.

 

And when you make the offer, be sure to establish the purchase price, earnest money, closing costs, and an acceptance date. We will have more more share about closing steps in our next blog post.

 

Are you interested in faster flip loan closings, lower risk, and growing your fix-and-flip business? Get our free step-by-step Fix-and-Flip Borrowers Guide for driving ROI and growth.

 

Ready to finance your next fix and flip property? Click here to apply for a fix and flip loan or get a quick estimate.

 

 

by Steve Pollack

Anchor Loans, Who Provide Bridge Loans for Real Estate, Has Another Record Lending Month – Surpasses $116 million in March

record-month

 

Anchor Loans, the nation’s largest hard-money lender to the fix-and-flip industry, is pleased to announce that March 2017 was another record lending month for the company. We originated over 360 loans totaling more than $116 million dollars, another high-water mark for an organization that has already surpassed $4 billion in loan origination volume, and was among the first to lend out over $1 billion dollars in a single year (2016).

 

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 over the course of an entire year, Anchor’s loan volume in March was 2.2x to 30x those amounts, offering further testimony to the size, scale, and scope of our financial resources and lending platform.

 

Anchor’s experience, relationships and proprietary Fintech platform continue to set the firm apart from other lenders in its ability to rapidly evaluate, underwrite and fund loans, typically in as few as 3-10 business days.

 

All of this translates into what is now the nation’s premier direct-private lender to the fix-and-flip market with over 14,600 loans originated totaling more than $4.3 billion.

 

About Anchor Loans

 

At Anchor Loans, we bring borrowers and investors together to create mutually beneficial opportunities for all parties. We do this by specializing in the financing of rehab properties that contribute to the improvement of the neighborhoods in which those properties reside. Because we know, understand, and anticipate the needs of our clients, we offer the fastest and most reliable funding options on the market resulting in lucrative, honest, and long-term relationships. By focusing our mission on these key areas, we continue to grow at a record pace, expanding into new markets and establishing ourselves as a leader in the lending sector for real estate investments and fix and flip financing.

 

Are you interested in faster bridge and fix loan closings, lower risk, and growing your fix-and-flip business? Get our free step-by-step Fix-and-Flip Borrowers Guide for driving ROI and growth.

 

Ready to finance your next fix and flip property? Click here to apply for a loan or get a quick estimate.

 

by Steve Pollack

Three Methods for Estimating the Value of a Fix-and-Flip property

 

Although there are a wide of variety of methods that fix-and-flip professionals use when estimating the value of a potential investment property, below are three of the most common and proven approaches.
Before we get started, it is important to note that there is no right or wrong answer here.  Each approach is a viable option.  The key is simply to identify the one that best matches your preference based on a combination of factors that include thoroughness, accuracy, speed, and cost.

 

Here they are in a nutshell:

 

1-2-3

* The first option is to hire a professional. Although this is your highest cost approach (because fees will be incurred), professionals combine excellent thoroughness with a nice balance of accuracy and speed.

 

* The second option is doing it yourself. When you take on the role yourself, the fees associated with hiring a professional are obviously eliminated and the levels of thoroughness and accuracy can still be comparable. Unfortunately, when using this method you need to realize that professionals can accomplish the same evaluation tasks much more quickly and efficiently – so speed greatly suffers.

 

* In response to weaknesses presented by the second approach, a third option is available to you. By applying what is called the “rules of thumb” method, you can substitute a more detailed and programmatic evaluation model with high-level data that “approximates” the results you seek to analyze. As such, rules of thumb can combine excellent speed with decent levels of accuracy. However, there is a price to be paid, as thoroughness suffers – which means you could be exposed to risks associated from overlooking key potential issues.

 

Regardless of which approach best fits your temperament and investment style when estimating potential properties, be mindful to bucket your anticipated improvements into basic, standard, and designer categories, as well “make-hab”, re-hab, or full remodel projects. Each choice will play a big part in determining your overall cost-per-square foot outcome and your overall profitability.

 

Get Fix and Flip Loans, Bridge Loans, and More

 

Interested in faster loan closings, lower risk, and growing your fix-and-flip business?  Get our free step-by-step Fix-and-Flip Borrowers Guide for driving ROI and growth.

 

Ready to finance your next fix and flip property?  Anchor Loans has funded more than 14,000 short-term loans totaling over $4 billion— the majority of them to borrowers with less than perfect credit and on properties in need of repair.  Click here to apply for a fix and flip loan or get a quick estimate.

 

by Steve Pollack
/* */