Three Market Indicators Fix-and-Flip Investors Should Watch


Fix-and-flip investing is no casual money-making scheme. It takes careful planning and foresight to succeed in every step, from purchasing your property, to renovation, to the eventual resale of your investment property.


Understanding the market conditions that help lead to a “sold” sign is key to getting the best return on your investment. Here are three market indicators that will help you better assess whether it’s the right time to start your fix-and-flip investment project.


1) Population Movement


It’s critically important to understand population trends in your target market. After all, the end goal of every fix-and-flip investment is the “flip” — selling your renovated property to a new buyer.


Finding a buyer depends greatly on the number of potential home buyers in your area, and understanding how many people are entering or exiting your market will help you determine whether or not it’s a good time to invest.


The U.S. Census Bureau offers in-depth information on population trends around the country, including a recent study on the fastest growing cities in the United States.


2) Economic Strength


A second indicator of the potential quality of your fix-and-flip investment is economic strength. If your local economy is going strong, there is a good chance potential home buyers will be more willing to make a home purchase in the near future. A shrinking economy, however, likely means a weaker real estate investment market will follow.


A related indicator is the relative economic diversity of an area. A city or region’s local economy will tend to be much stronger if it includes diverse industries, but cities that bank on one industry tend to be very vulnerable. WalletHub recently explored the most and least economically diverse economies in the country. Examining their data could help you determine if your area is ripe for investment.


3) Construction Trends


Construction and construction spending represent the third indicator fix-and-flip investors may want to monitor. Increased construction spending can mean a short supply of housing in a given market, and closely monitoring construction trends can give fix-and-flip investors a better understanding of the true inventory available in their markets.


The U.S. Census Bureau supplies detailed information on both new construction permits and how much construction companies are spending on new residential construction on a quarterly basis. Keeping an eye on this data could give you a better idea of what sorts of houses your potential buyers are looking for and whether they may be interested in a new home or a newly renovated property.

9 Questions About Hard Money Loans

Anchor Loans FAQs about hard money loans


Hard money loans are an ideal option for successful real estate entrepreneurs who might not meet the requirements for traditional bank loans. Anchor Loans has more than 20 years of experience in fix-and-flip and rental property financing, and with our latest post, we’re highlighting nine questions real estate investors may have about hard money loans.


1) What makes hard money loans unique?


While conventional loans are based on the borrower’s income, credit, and other assets, hard money loans are based mainly on the value of the property to be renovated. This real property value (a “hard” asset) gives hard money loans their name.


2) Will I need to put money down?


In most cases, you will be required to have a cash down-payment as part of the loan structure. Your prior experience with fix-and-flip properties and the individual project will affect the amount of your down payment.  The down payment requirement typically ranges from 15-20 percent.


3) What is the interest rate for a hard money loan?


As with most real estate loans, the interest rate for hard money loans varies according to the lender and the current market conditions. Anchor Loans’ interest rates generally fall between 8.00% -13.00% depending upon the property location and type, and the borrower’s level of experience.


4) What is the typical loan-to-value ratio?


Typically, the loan will not exceed 70% of the “after repaired value” or ARV. Anchor’s in-house valuation team determines a property’s ARV.


5) How long is the loan term?


Most loans provided by Anchor Loans are for less than one year with an option for paid extensions at Anchor’s discretion. Anchor Loans also offers three- and five-year term loans with our rental loan program.


No matter how long the term is, it’s generally best to pay back your hard money loan as quickly as possible to fully realize the value of your investment. Anchor does not charge a prepayment penalty on fix-and-flip loans, but rental loans may have a prepayment penalty.


6) What is the origination timeline?


For approved borrowers, loans on single family homes can be approved within 72 hours of application. Anchor Loans can fund rush loans in is as little as 48 hours, but the normal expected funding time is 5 to 10 business days.


7) How important is my credit rating?


While your credit rating will be considered during the loan application process, it won’t be as important as if you were applying for a traditional bank loan. Anchor Loans prefers a minimum 620 credit score, but it can be lower on a case-by-case basis.


8) What are the costs to consider?


Lender costs include an origination fee (typically 1-3 points), loan fee, and evaluation fee.  Third party costs may include title and escrow fees.


9) Is financing available for repairs?


When financing repairs, Anchor Loans establishes a “holdback” account from which money is dispersed to cover repair costs. If a borrower chooses to fund their own repairs, Anchor Loans will verify that the borrower has the funds to do so.


In a holdback situation, Anchor Loans will fund the money for repairs into an escrow account. The borrower completes the repairs, then submits a request for reimbursement. Anchor Loans will inspect the property and confirm the work has been done, disbursing the money for the repairs once verification is complete.


Do you have more questions about hard money loans? Our team at Anchor Loans is here to answer your questions about real estate investment financing, fix-and-flip lending, and how you can get involved. To learn more, call us today.

Five Book Recommendations from Anchor Loans


Reading is one of the most beneficial things you can do in your free time. Sitting down with a good book reduces stress, expands your vocabulary, improves your memory, boosts your writing skills, and generally makes you a stronger, more well-rounded person.


Here are five recommended books, which members of the Anchor Loans staff have found to be useful in their business and personal lives.


Deep Work by Cal Newport


“Newport’s book opened my eyes to more efficient and productive ways to create more meaningful project results.” – Steve Pollack, CEO/President and Co-Founder


Good to Great by Jim Collins


“My whole approach to management changed after reading this book more than 10 years ago. Good to Great identifies what distinguishes great companies from good ones. The common qualities found in great companies centered around the character of their leaders and employees.” – Bryan Thompson, Chief Financial Officer


Who Moved My Cheese by Spencer Johnson


“This book is a great read about how to deal with change.”  – Maya Levin, Director of Financial Operations


Getting to Yes: Negotiating Agreement Without Giving In by Roger Fisher and William L. Ury


“I use this book virtually every day in my day-to-day life and business activities. It is about negotiation and is applicable in any scenario, not just legal or transnational matters.” – Pouyan Zivari, Legal Counsel


Man’s Search for Meaning by Viktor E. Frankl


“This is a really great motivational read on finding and fulfilling your purpose.” – Brittany Goodchild, Capital Markets Manager

5 Fix-and-Flip Basic Tips


If you’re thinking about getting into the fix-and-flip real estate game in the Santa Rosa Beach, Florida area, then the following pointers should help you get started.  In every market there are some different variables as well as some fundamentals that remain constant.  We are going to cover a few of each in the following paragraphs.


1)  Fix-and-flip is not a get rich quick scheme

There are many TV shows on cable today that make flipping homes seem like a very simple and extremely lucrative business or hobby.  This could not be further from the truth.  There is nothing easy about a successful fix-and-flip.  It takes knowledge, connections, hard work, and a little bit of luck for a successful house flip. One of the problems with some fix–and-flip investors in Santa Rosa Beach is they think that just because it’s beautiful and there are lots of investment properties, their place will sell quickly and for profit.  Do not expect to be able to find a property being sold way below market value that’s going to be simple to bring up to standard and sell for a huge profit.  There is more involved.  But, if you do your homework and plan properly, you can make a very good living flipping homes or condos.


2)  Work with a knowledgeable realtor

The Santa Rosa Beach, Florida real estate market has many different types of properties in a small geographic area.  Within 2 miles you can find a $10 million beachfront mansion, a  20-year-old double wide, and a torn up 3-bedroom single family home with good bones ready to be fixed and flipped. Working with a knowledgeable local real estate agent is key. An excellent local realtor will know precisely what is for sale, what has sold, and what will likely be selling in the future.  Your Santa Rosa Beach real estate agent can tell you how much they feel a property can sell for when fixed, and how long it should take to sell.  They will be able to find properties for you that meet your criteria the day they hit the market. Many times, well-experienced realtors will also come across “pocket listings” that do not get listed on the MLS.  Furthermore, realtors will know of listings before they hit the market and be able to relay this info directly to you.  Do not underestimate how valuable a qualified and experienced real estate agent can be.


3)  Understanding market trends and inventory

Just because you have found a quality realtor you like and trust, doesn’t mean you do not have to keep up with the real estate market yourself.  At the least, you should have a good understanding of the current real estate inventory.  This will also help you understand the market trends.  It is not uncommon for an investor to flip properties in numerous markets. Therefore, it is extremely important to realize that though they are relatively close to each other, the Santa Rosa Beach real estate market is different from the Seaside Florida market. Knowing the best times of year to sell in your market will help you plan the best times to purchase.  As you will see over and over, the more you read about the timing of flipping homes, owning the property for the shortest amount of time is crucial to your bottom line.


4)  Have more than one good contractor

The reason you should have more than one contractor is simple.  Every single day matters when doing a fix-and-flip.  If you purchase your property and you are ready to get started on the “fix” portion and your one and only contractor is busy, you’re going to have a problem.  It is possible for builders and contractors to be busy year-round, but they are likely to be swamped late winter and early spring because they’re getting ready for the busy season in Santa Rosa Beach, which is summertime.  Just picture if your contractor is going to need weeks or months before he can start work on your project.  This is why it’s crucial to have numerous relationships with contractors and subcontractors you can call on when needed.  When a few days can take a big chunk of your profits out of your pocket, you need to have things planned out and have backup contingency plans.


5) Have a good hard money financing option

Now you have found a property, have a contractor (more than one) and are working with a qualified local realtor.  However, there’s one more step missing.  Without being able to pay cash yourself, you will need a loan.  Typically, when you are doing a home flip, you get a different type of loan than when you’re purchasing your primary residence.  What you need is a hard money loan or a fix-and-flip loan.  You want to work with a lender that has been focusing on hard money loans for quite some time and processes many of them every year. The number one lender in the fix-and-flip space is Anchor Loans. Anchor has been lending for more than 20 years, funds over $1 billion to real estate entrepreneurs annually, and can fund loans within 5 to 10 days of borrower approval—even  faster for a rush project.


In conclusion, you should be starting to get an idea of what it will take to get started and successfully complete a  fix– and-flip.  Although this article merely breaks the surface, these tips should stay relevant for as long as you are flipping homes.  As was stated at the beginning of the article, some of these tips will help you get started, and some are fundamental.  Ultimately, the two work side-by-side.  Don’t forget things that you learn in the beginning and never get too smart to take advice from professionals about their niche.


Danny Margagliano is a Realtor and guest blogger and from in the Emerald Coast of Florida, more specifically, South Walton Beach. If you are in the market for your first fix-and-flip, vacation home or retirement home in the Santa Rosa Beach area, you can reach Danny at 850-830-4747.

Three Key Questions for Evaluating Fix-and-Flip Property

Evaluating Fix-and-Flip Property


Maximizing the return on investment is the goal of every fix-and-flip project. But how do you give yourself the best chance of making that happen? It comes down to picking a property that buyers will like while avoiding breaking the bank on improvements.

Here are three important questions that will help you make the right call on properties you’re considering for your next fix-and-flip investment.


1)  What does the property offer home buyers?


Visiting a property in person will give you the most accurate answer to any questions you’ll have about a given property’s condition, but you can also learn about these things online. If you have access to the local Multiple Listing Service (MLS), you can find detailed information there. If not, sites like and can be excellent sources for similar information. Other sites like Google Maps,, and can help you learn more about the neighborhood.


2)  What do recently sold comps reveal about what buyers want in a home and what they are willing to pay?


The MLS can be a great source of information on comparable properties recently sold in the area, as can other sites that aggregate MLS information for free public access. Take a close look at nearby properties that were sold in the past three months to get a good idea what buyers are looking for in terms of square footage, features, age and other amenities. Collect this information in a central location for easy reference as you consider a property.


3)  How does the subject property compare to comps?


Once you’ve compiled detailed information on the comparable properties in your area, compare the property you’re considering to that information. What needs to be done to bring your prospective property in line with the others in the area? Will you still be able to turn a profit after making improvements? If the project looks profitable on paper, prepare to visit the property in person so you can more accurately estimate its value.


To learn more about evaluating a property as a potential fix-and-flip investment, download our guide Evaluating Fix-and-Flip Property Value and Condition today. And when you’re ready to pursue your next fix-and-flip investment, contact us for fast, reliable funding for your project.


Three Reasons to Switch

Three Reasons to Change Your Fix-and-Flip Loan Provider


If you’re a fix-and-flip veteran, chances are you’ve worked with the same lender for most or all of your projects so far. But what if choosing a new lender could supercharge your fix-and-flip investments and increase your ROI?


Here are three reasons to consider making a switch to Anchor Loans for your next fix-and-flip project:


Anchor Loans is the nation’s number 1 fix-and-flip lender


If you’re going to get a fix-and-flip loan, why not go straight to the top of the industry? Anchor Loans is the first private direct lender to fix-and-flip investors to fund more than $1 billion in loans in a single year. We provided more than $1 billion in loans in 2016, more than $1 billion in 2017, and more than $5.5 billion since 1998.


A big reason for those eye-popping numbers is our commitment to providing unmatched customer service. More than 85% of Anchor’s customers are repeat borrowers who appreciate the seamless approval process, fast funding and decades of expertise that come with Anchor financing. Our clients are so happy with Anchor they refer friends and family. As a result, more than 70% of Anchor’s new borrowers are referred by one of our clients.


Anchor Loans Lets Data Drive Our Decisions


Every loan originated by Anchor Loans is carefully analyzed and considered from all angles, weighing data on market conditions, housing costs, cost of living, and a host of other factors. In short, we rely on numbers, never luck.


This data-driven approach leads to a high success rate for loans we originate and a very low default rate. Though real estate investing is never a guaranteed win, reading the data as well as we do definitely tilts the odds towards success.


Anchor Loans is Fast


Flipping properties is as much about speed as anything else, and with Anchor Loans, speed is on your side. We’re confident in our ability to turn loans around quickly. While a timeline of one to two weeks is typical, it’s not uncommon for our loans to be approved in as little as 72 hours.


Our fintech supports an easy-to-use portal where you can sign up for an account in under a minute and apply for fix-and-flip and rental property financing through a secure, guided process. With a few button clicks from an Anchor processor, your submitted loan request then goes into the approval queue. When all requirements are met, funds are wired within 24 hours.


If working with the best, most reliable, and fastest lender in the business sounds like the right move for your fix-and-flip investment, check out Anchor Loans. We’re excited to work with you.

Anchor Loans Expands into New Markets; Now Serving 47 Markets Nationwide

Calabasas, Calif. May 31, 2018 – Anchor Loans, the nation’s largest lender to the fix-and-flip industry, is now originating loans in 47 markets across the country. Throughout the last year, Anchor added 13 additional states to its lending roster.

“Our growth outside of California over the last two years has increased to 50 percent of our loan production,” said Stephen Pollack, Anchor Loans president and CEO. “Using our fintech platform, we are rapidly ramping up across the nation to help fix-and-flippers realize their business goals with the ability to close a deal faster.”

The 13 additional states bring the number of markets Anchor Loans operates in to 47 and include Alaska, Iowa, Kentucky, Maine, Minnesota, Montana, Nebraska, New Hampshire, New Mexico, North Dakota, Rhode Island, West Virginia and Wyoming.

Anchor’s experience, relationship and proprietary fintech platform continue to set the firm apart from other lenders in its ability to rapidly evaluate, underwrite and fund loans, often 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 18,000 loans originated totaling more than $5.7 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 where they 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.

Green Real Estate Investing


A growing part of the world of real estate could represent a prime opportunity for anyone interested in fixing and flipping properties.


Expected to grow by 13% over the next five years, this new market sector will boost real estate values by millions (if not billions) of dollars across the country. It’s a type of investment that’s getting significant tax breaks and other benefits from local, state, and federal government offices, and is a category of real estate where buildings sell more quickly for more money than anywhere else.


What is it? It’s green real estate investing, and it could be the next big thing for fix-and-flip investors.


What is green real estate investing?


Generally speaking,  green investing focuses on opportunities that conserve natural resources, produce alternative energy, or otherwise work to improve the world from an environmental perspective.


From a real estate perspective, green investing typically involves identifying properties that drain natural resources, then working to improve them in hopes of reselling the properties for a profit. For instance, a green real estate investor could purchase an older home, update the insulation and other parts of the property to make it more energy efficient, install solar panels, and then re-list the improved home in hopes of making a return on their investment.


At its core, green fix-and-flip investing isn’t all that different from traditional fix-and-flip investing. It’s just more focused on particular elements of a property that have a bigger impact on the environment.


Why does green real estate investing matter?


If green real estate investing isn’t that different from traditional investing, why does it matter? There are two reasons.


First, from a purely altruistic perspective, fix-and-flippers can have an impact on the environment through pursuing green real estate opportunities. According to Credit Suisse, more than half of the world’s natural resources are used by the real estate sector in some way, shape or form and more than 40% of that is used to cool, light and ventilate buildings. By pursuing green investments, fix-and-flippers can put a dent in this outsized use of energy and resources.


Secondly, environmentally responsible features are becoming more important to home buyers. Millennials, who represent about 32% of current home buyers, say they’re more likely to consider buying a property if it has energy-efficient features. That should be music to a real estate investor’s ears: homes with higher energy certifications (LEEDS and GreenStar) can sell for up to  30 percent more on average than those without, and owners of green rental properties can often charge more as well.


In short, the more green you put into your fix-and-flip properties, the more green you could see in your wallet.


How to get started in green real estate


If green real estate seems like a good fit for you, there two main areas you can target to get started.


First, consider using  energy-efficient materials in your future renovations. For example, insulating concrete allows for smaller heating and cooling equipment and can provide up to 25% energy savings on energy bills. Or, if you don’t have an opportunity to alter the insulation of a building, consider exploring  cool roof technology. Cool roof materials reflect rather than absorb heat, which makes homes easier to cool and lowers energy bills.


These energy efficient materials may cost more in the short term, but they’ll be more efficient in the long run and could lead to higher resale prices.


Second, when possible, you may want to add alternative-energy or energy efficient features to the home. Incorporating solar energy  into your next project could make you or your future buyer eligible for tax credits. It could also make you some serious money: according to a UC Berkeley study, home buyers could be willing to  pay up to $15,000 more  for a home with an average-sized solar photovoltaic system.


If solar energy sounds too ambitious, consider installing energy efficient appliances, starting with the air conditioner, water heater and refrigerator. Among the most common household appliances,  these three use the most energy. Getting them up to par will go a long way towards making your investment property more energy efficient.


The bottom line on green fix-and-flip investing


Green real estate investing may not be for everyone. The time and expense involved may be more than some investors are willing to bear. But if you’re ready to be among the trend-setters prepared to take advantage of this somewhat unexplored part of the real estate landscape, Anchor Loans is here for you. Contact us today  to get started on your fix-and-flip journey.

What are Hard Money Loans


What are Hard Money Loans?

Making sense of your financing options is the best way to make the right choice for your lending needs. Anchor Loans experts know the local lending marketplace, and within this latest post we discuss hard money loans and their unique benefits.


What is a Hard Money Loan?

Hard money loans are “asset-based” loans secured by real property. The loan amount is based on the value of the collateral, so credit scores and income levels are not a leading consideration for approval. Hard money loans are typically short-term—usually around 1 to 5 years—and are designed to help real estate investors repair and upgrade their properties to optimize profit.


What are the Benefits of Hard Money Loans?

Hard money loans are typically approved and funded quickly, do not exclude distressed properties or credit-challenged borrowers, and are much more flexible than conventional bank financing. Repayment schedules, construction cost disbursements and other elements of the loan can be optimized for each client.


What are the Main Drawbacks of Hard Money Loans?

If not managed correctly, hard money loans can be costly. Typically, borrowers will make monthly interest-only payments with a balloon repayment of the principal at the term’s end. It is critical to carefully consider the optimum loan period for your project. Borrowers must accurately assess their property’s after-repair-value and thoroughly research local market conditions to be confident they can pay the loan back on time, avoiding costs or possible default.


The interest rates on a hard money loan are higher than a conventional bank loan. Most borrowers will pay between 8% and 14% for a hard money loan, although it could be higher or lower depending on the borrower’s experience, the value of the property and other considerations. The loan-to-value ratio for hard money loans also tends to be more conservative than for traditional loans. Lenders want to be sure they’ll recoup their investment, so the loan-to-value ratio may only be as high as 70% of the value of the property.


If you think a hard money loan could be a good fit for you, it’s important to work with a qualified lender with available capital and an excellent track record. To discover more about the options available, call Anchor today.

2018 Real Estate Trends



2018 is just a few months old, but already several major trends have emerged that will affect the world of real estate for the rest of the year and beyond.


Here are three major areas to keep an eye on throughout the rest of 2018.

1: Housing supply is (finally) catching up with demand

For too long, prospective home buyers faced a simple problem: there weren’t enough houses to buy. That was certainly an issue toward the end of 2017. Available housing inventory was down 12% over the twelve-month period ending in November of last year, according to Zillow.


Decreased inventory leads to booming prices and competitive bidding on available homes, but that’s only sustainable to a certain point. Eventually, the market has to produce more home inventory. That could be in the cards for 2018.


New home construction is expected to increase this year, and that’s why some realtors are predicting a better market for buyers by the end of 2018.


“The majority of the year should be challenging for most buyers, but we do expect growth in inventory starting in the fall,” says Danielle Hale, chief economist for


2: Tax reform will cause changes — but what will they be?

Even a few months after President Trump’s tax reform plan passed through Congress, it’s still not entirely clear how the real estate market will be affected. We can, however, identify a couple of areas to watch.


Trump’s plan changes both the mortgage interest deduction and the property tax deduction, on top of changes that could increase spending capabilities for buyers. It could take some time before people looking to buy a new home fully realize how the new law affects their bottom line, but when they do, the market is expected to respond. With a decrease in the mortgage-interest deduction from $1 million to $750k, higher-end property sales may slow.


On the flip side, there could also be some negative consequences for low-income buyers and renters. Research by Price Waterhouse Cooper points out that Trump’s tax plan reduces the value of low-income housing tax credits, which could make companies that manufacture low-cost housing less likely to build.


3: Millennials are Living Small and Looking for Affordability

As more people move to urban areas, demand for smaller, more affordable apartments is increasing, particularly among millennials. Analyst Nathaniel Kunes told Forbes this could become “more of a norm in big cities” and could affect construction trends over the next decade.


Millennials have famously been less likely to own a home than previous generations, and data consistently points to affordability as the main reason why many haven’t taken the plunge into home ownership. Business Insider identifies an inability to put together a down payment as the main hurdle for many millennials, leaving them looking for affordable apartments and other rental housing in the biggest urban centers.


Affordability isn’t an issue reserved for booming big cities alone. Price Waterhouse Cooper’s study of 2018 trends also points out unmet needs for affordable housing stock in traditionally affordable markets like Charleston, Atlanta, and San Antonio. It’s clear that across the board, the price tag on houses and rental properties alike will be a key issue in 2018.

What 2018 Trends Mean for Fix-and-Flip Investors


Navigating these trends comes down to awareness. With inventory still low for the time being, fix-and-flip sellers have an opportunity to stand out with high quality renovations, but be mindful that a wave of new housing could be on the horizon. Differentiating your updated properties from newly built homes could become more difficult in the near future.


With that in mind, buyers may become more flexible, depending on how the new tax plan affects their bottom line. While the long-term consequences may still be a mystery, if potential buyers get an unexpected tax boost, they could be more willing to jump into the market. That could mean the recent seller-friendly trend may continue.


Finally, as millennials transition toward their home-buying years, awareness of their tendency towards smaller homes and renting will be a big boost to fix-and-flip and buy-and-hold investors. Focusing on smaller properties in areas where demographics align with millennial preferences could be a path to success in 2018 and beyond.