Frequently Asked Questions
What LTV ratio does Anchor Loans offer?
Loans generally do not exceed a 70% ARV (After Repaired Value) ratio of the property to be acquired. This amount can include purchase price, property rehabilitation costs and closing costs.
What interest rate do you offer?
Interest rates generally fall between 8.00% -13.00% depending upon the property location and type, as well as the investor’s experience.
What states do you lend in?
Anchor Loans lends in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington, Washington D.C., West Virginia, Wisconsin, and Wyoming. Our lending territory is still expanding and if there is a state you are interested in which we do not currently lend, we will be happy to notify you when we begin lending in that state upon request.
How long does it take to receive funding?
Though Anchor Loans can review and approve qualified loans in as little as two days for rush deals, most deals take approximately five days. However, the normal expected funding time is one to two weeks.
Can you finance the purchase or rehab of an owner-occupied property?
No. Anchor Loans does NOT lend on owner-occupied properties. We lend on a variety of qualified fix and flip investment properties.
What kind of properties does Anchor Fund?
Anchor Loans can fund all types of non-owner occupied properties that meet our qualifications. This includes single family residences, duplexes, triplexes, quadruplexes, apartments and other commercial properties. Anchor Loans does NOT fund owner-occupied properties.
How do I apply?
Our online application is available 24-hours. You can access by creating an account with us by clicking on the “Get a Loan” button on the homepage, or the login button in the upper right hand corner. From your account you can complete the application at any time. You are also welcome to call (310)395-0010 to schedule an appointment to speak with an Account Executive.
Who are the investors?
Anchor’s investors are experienced businesses or business people that purchase fixer uppers (rehab properties) well below market value from banks, other lending institutions, estates, etc. for the express purpose of resale for profit. They buy these houses or multiple unit buildings at a substantial discount, fix them up in timely fashion and have an excellent marketing program for resale – usually in a time frame of about 8 months. Most of our borrowers obtain loans on a repeated basis – using Anchor as their primary source of real estate related acquisition financing.
Why does a fix-and-flip investor come to Anchor Loans instead of a bank?
Anchor reacts quickly to loan requests and can underwrite and process a loan in a matter of days unlike a bank that often takes between 45-90 days. In addition, the investor may not be able to obtain a non-owner occupied property loan due to tightened banking lending policies.
Where are the properties located?
The properties that secure the investment are primarily located in California, and have grown to include properties in other states. Anchor Loans has evaluated over 16,000 properties within its 17 year history and is very experienced in valuing properties.
What types of investment fund products can someone purchase?
You can invest in Anchor’s Real Estate Mortgage Investment Fund (Anchor Fund, LLC) – Please refer to the Invest page.
What is the minimum investment for our investment fund?
The minimum capital required to invest in the Anchor Fund is $50,000.
What rate of return does Anchor Loans offer?
Depending on the investment pool selected, the current rate of return varies. Anchor Fund generates yields (net of loan servicing fees) that range from 9.00 % – 11.00%. Rate of return is variable and subject to change.
What ARV (After Repaired Value) ratio are the loans offered by Anchor Loans?
Anchor Loans generally do not exceed 70% of the after repaired value (ARV) of the property securing the loan. Frequently, loans are available with the after repaired value (ARV) ratios of 65% or less.
Who collects the borrower’s monthly payments?
Anchor Loans acts as the loan servicing agent on behalf of the investors. This includes collecting the monthly payments and distributing those payments to the investors.
How do I receive my investment return?
For Anchor Fund, LLC, the investor receives monthly disbursements of the interest on the loan by either check, wire or ACH (direct) deposit.
Will I have access to my investment if I need to make a withdrawal?
Depending on the tier category, your principle is subject to either: a 90 day lockout, or a 12 month lockout. During this period you cannot withdraw your investment.
Can I invest my IRA or Pension Plan?
IRA, SEP IRA and Pension Plans are accepted, subject to approval.
How do I apply?
Accredited Investors can contact our Capital Markets department at (310)395-0010, and request a Comprehensive Investor Packet. It will be mailed or e-mailed to you promptly and includes key information including the Investment Application.
How do you work with brokers?
Our relationship with you is based on the needs of both you and your clients. We do not charge you a fee to work with us like some other lenders do. Rather, we speak with you directly to determine the best route to do business together. To find out more on how we can do business, contact an account executive today.
Do I need to be a licensed mortgage broker?
Depending on the state the property is located in, you may be required Real Estate Agent or Broker Licensing to broker the loan. We will advise on the requirements for your states of interest at the time of loan submission.
Can I set my own fee’s on top of yours?
Yes, as a broker you are free to negotiate and charge your client a fee. However, this fee is added on top of the fees Anchor Loans charges your clients and are not inclusive of one another, nor can they exceed our fees.
What do you need from my clients?
Documentation required for your clients is the same as though they had come directly to us. They will be required to complete an application and qualify as a fix-and-flip investor.
Do you work with clients directly for items needed or through me?
We understand and respect the relationship between you and your clients, and we do our best to communicate with you at all times. There is minimal direct communication with your client that is needed for approval of loan terms to draw loan documents, as well as the signing of loan documents.
How do I get paid?
Your fee’s are processed through the close of escrow. Once the transaction has closed and there has been confirmation of recording, your payment is processed by Anchor to be disbursed via your preferred method of payment, Check or Wire. If you are in a licence required state your W-9 and copy of your Real Estate Agent or Broker License will be required prior to payment