Anchor Blog

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 Blog Admin

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 Blog Admin

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 Blog Admin

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 Blog Admin

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 Blog Admin

Four Proven Steps When Analyzing a Fix-and-Flip Property

qualifying-property

 

Experienced fix-and-flip professionals know that analyzing a few simple best practices can help to quickly identify (or eliminate) an investment candidate.  Below are four of the most common ones to apply when analyzing your next property.

 

First, “pull the comps” from MLS.com for recently sold houses in your target neighborhood that possessed a similar size, layout and age.  Pay particular attention to the price they sold for and how long they were on the market.  See if those sale prices and holding periods fit your particular profit model and goals.

 

Next, visually inspect exterior factors such as:

 

* Condition of the roof, garage, doors and windows.

* Curb appeal of the architecture, trees, and landscape.

* View appeal factors that include line-of-sight to water, city skyline, or mountains.

* Street location (a cul-de-sac versus a major street / intersection)

* Proximity to potential eyesore factors like factories, power lines, rail lines, and more.

 

In addition, analyzing market timing factors like current mortgage rate trends and seasonal buying cycles will offer additional insights.

 

Finally, check with experts and friends on your fix-and-flip team including neighborhood real-estate agents, appraisers, inspectors, and neighborhood residents to name a few.

 

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 loan or get a quick estimate.

 

by Blog Admin

Los Angeles is a Real Estate Market to Watch

According to a recent article in the LA Times, Los Angeles is ranked number one in North America for property buying.  This is based on a CBRE Group survey of global real estate investors with a combined total of $1.7 trillion to spend on property in 2017.  And globally, it ranks among other top choices including London, England and Sydney, Australia. 

 

Also noted is that LA was the top choice for the second year in a row, according to the survey of investment fund managers, insurance companies and operators of pension and sovereign wealth funds. 

 

In addition, forty percent of investors said they intend to spend more this year than they did last year, while only 16% said they would spend less. 

In a related story, Southern California home prices have jumped again as short supply has been fueling bidding wars.  Home prices in February posted the largest increase in more than a year, as buyers looked to outbid one another for a reduced selection of homes for sale.  The median price for new and resale homes hit $460,000 last month, up $5,000 from January, which is also 7% higher than it was in February 2016.

 

Finally, in his Daily Wealth email newsletter, Dr. Steve Sjuggerud shared this compelling chart from Stansberry Research to conclude that there is no bubble in real estate – not even in Los Angeles.

la-home-prices

 

According to the chart, the median price of a house in LA, adjusted for inflation soared in the mid-2000s… and then crashed.  But as you can see, that’s not the case today in Los Angeles. 

 

So what does it all mean?  One early conclusion is that the place to start your North American real-estate investment search might just be Los Angeles.

 

Loans for Fix and Flip and More

 

Interested in faster fix and 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 bridge loan 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 Blog Admin

Stories of a First-Time Home Flipper and Single Woman

In a wonderful series of articles, the Chicago Tribune follows Beth Franken, a first-time home flipper and a single woman.  In many ways, her journey is similar to one that almost of us probably went through during our first-time foray into fixing-and-flipping a property. The floor guy doesn’t show, a sanitary pipe ends up outside the house instead of inside, and a kitchen appliance is too big for where it needs to go. In the last example, everyone looks at the appliance – the plumber, the carpenter, the electrician – and she suspects that nobody feels it is their problem. And then she realizes….they may be right!

 

first time fix-and-flip

But in other ways, Beth struggles with concerns over being taken advantage of by contractors as a single woman. A bill comes in much higher than her initial quote, and she has to navigate some choppy waters to find out if it is a legitimate increase or not. She keeps her cool, and in the end the answer is probably what you’d expect. Yes, there is a reason for the increase, someone overlooked a couple of things. But no, they also should have known better. The resolution, she pays more…but not all of it.

 

Does this sound like you?  Or maybe an earlier version of you? If it is, or if you know someone who is just getting started in the business of flipping homes, feel free to follow her journey through these and other stories ChicagoTribune.com.

 

Flipping for one: First-time reflects on flipping a house as a single woman

 

Flippers can’t be choosers: First-timer handles house-flip punches

 

First home-flipping project approaches finale, with a few hiccups

 

Enjoy House Flipping Financing Today

 

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? 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 flip or bridge loan or get a quick estimate.

by Blog Admin

Forbes Shares Eight Expert Housing Outlook Predictions for 2017

In a recent blog post, we shared with you what an incredible year 2016 was for the fix-and-flip market.

 

As we head into the remaining 9-months of 2017, here are eight housing outlook predictions that experts shared to Forbes magazine for 2017:

 

2017

1) Prices will continue to rise–but more slowly (Nela Richardson, chief economist at real estate brokerage Redfin)

 

2) Affordability will worsen as wages are expected to grow in America’s big cities this year, but the share of homes affordable to someone earning the median income is not (Richardson)

 

3) Mortgage rates will be volatile (Svenja Gudell, chief economist at Zillow.)

 

4) Credit availability will improve – maybe.

 

5) Supply will improve but remain short (Ralph McLaughlin, chief economist at Trulia)

 

6) More Millennials will become homeowners and renters (Zillow and Redfin)

 

7) Competition will grow fiercer (Redfin)

 

8) Political uncertainty will be replaced with policy uncertainty

 

What is the current housing outlook for certain types of homes right now? According to RealtyTrac market trends, the highest estimated availability right now is for homes between $100k and $200k, 1,200 and 1,400 square feet, and three bedrooms.

 

To read the full article from Forbes, click here. To see the current trends from RealtyTrac, click here.

Enjoy Hard Money Loans in Los Angeles

 

Interested in faster bridge loans for real estate 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 flip loan or get a quick estimate.

 

by Blog Admin

Don’t Confuse Today’s High-Performing Fix-and-Flip Market with a Decade Ago

According to Scotsman Guide News, today’s fix-and-flip market shouldn’t be confused with the one that overheated and crashed a decade ago.

 

Back then it was about inexperienced investors who were betting solely on price appreciation by buying properties in markets that they didn’t live near or understand.

 

Today on the other hand, it’s about people finding good properties at a discount in markets they carefully focus on, and then doing the necessary renovations. Their reward? Average profits last year of $62k above the median sales price of $127k according to Attom Data Solutions.

In places like Chicago where there are still numerous properties, rehabbing and flipping for a profit are the norm vs. tear-downs.

 

chicago-skyline

In places like Chicago where there are still numerous properties, rehabbing and flipping for a profit are the norm vs. tear-downs.

Tight inventories and rising home prices have contributed to the lift in activity, but that presents other challenges – like needing to look at off-market inventory sources to find good properties, and/or considering whether a market’s location and accessibility level dictates that total tear-downs are more the norm versus rehabs.

 

The article offers perspective from several different participants in the fix-and-flip market, including Daren Blomquist, senior vice president with Attom Data Solutions. “The easy part of flipping these days is selling the property. The hard part is buying it.   When we talk to flippers, the buzzword for them is to find inventory that is off-market.”

 

With over 125k businesses and individuals completing a flip in 2016, financing for those deals has reached a 9-year high at just under 33%. This growth is fueled in part by more sophisticated fix and flip lenders and lending platforms that make cash available quickly, and on great terms, based on the merits of the property and not the borrower.

 

To learn more, you can read the full article here.

 

Fix and Flip Financing and Loans

 

Are 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 bridge loan 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.  Click here to apply for a loan or get a quick estimate.

 

by Blog Admin