BLN Software

Lend Some Money

“Bridge Loan Network has been a game changer for my company. The software is modern and user friendly helping me stay organized and work more efficiently, therefore allowing me to focus more time on growing my business and follow up with clients. My clients enjoy having the ability to go into their loan files and submit documents, message with their loan officer, and watch the file progress in one safe and secure place. The BLN team has also delivered service at the speed my clients expect of me and I couldn’t be happier. Thank you to the whole Bridge Loan Network Team.”

– Lend Some Money, LLC

Everest Business Capital

“I have had the pleasure of working with Jacob from Bridge Loan Network. He works very hard at helping me to find a home for my clients who need a loan for Real Estate Investing purposes. I would highly recommend his company to any who is a lender in the Real Estate Investor Market.”

– Everest Business Capital

The Importance of Appraisals in Private Lending

Appraisals are a crucial step in the investment real estate industry and most private and hard money lenders require investors to have a completed appraisal done, before moving forward to underwriting and closing.

To ensure all our customers, including lenders, brokers and investors, receive the best customer service and quick turn times with their appraisal ordering, Bridge Loan Network has partnered with the nationwide appraisal management company, Appraisal Nation. Bridge Loan Network customers can now order appraisal reports directly in their lending portal and then have the completed report automatically uploaded into the system.

Before discussing more about how our integration with Appraisal Nation is a valuable add-on for our customers, it’s important to understand why appraisals are a vital step in the lending process.

There are three main sections of the appraisal report we’re going to discuss in this article, the As-Is Value, the After-Repair Value, and Comparable Properties, to help you gain a better understanding of the reports for yourself and your customers.

The As-Is Value

When an appraisal is being completed the appraiser examines the properties As-Is Value, which is the value the property is worth in its standing condition now, with no renovations completed. This value is an important factor for the lenders and may impact their decision to close the loan. If a property’s value is low, for instance, $10k, then some lender’s may choose to not lend on that property as it is below their minimum loan amount.

The After-Repair Value

If the property has any type of rehab work needed, then the appraiser will also take into consideration the borrower’s rehab budget to determine the After-Repair Value (ARV) of the property. The ARV on the appraisal will tell the lender what the distressed property is expected to be worth after all the renovations on the rehab list are completed. ARV is often valued by both lenders and borrowers to ensure the project is lucrative enough for all parties, and each will see a return-on-investment.

Comparable Properties

Comparable properties are another aspect of an appraisal that is crucial to evaluating the value of the property in both its As-Is state and its After-Repair Value state. The appraiser will look at similar properties in the immediate surrounding area and compare the value of those properties to the value of the subject property. If there are no similar properties in the surrounding area, this could dictate that the property is in a rural area, which some private lenders tend to avoid.

Overall, in the private money industry, time is one of the most valuable assets. Our integration with Appraisal Nation saves your company time by streamlining the entire appraisal process. Simply place an order in the Bridge Loan Network software and Appraisal Nation will take care of the rest. Utilizing their nationwide network, your request will be assigned to a certified appraiser promptly.

After the appraisal is scheduled, Appraisal Nation’s Client Service team will continue to work with the appraiser until the report on the property is finished. Once the report is complete, Appraisal Nation has their in-house appraisers review the to ensure all fields are complete, and then the report is uploaded into the Bridge Loan Network software. The Bridge Loan Network software keeps all loan documents in one secure location for all members of the transaction, streamlining the lending process.

Marketing Your Rental Property to Millennials, Here’s What You Should Know

If there was ever a model generation for landlords to have in their rentals, millennials would be that generation. Born in the 1980s to the 2000s, the millennial generation has far outnumbered other generations, such as the Baby Boomers, and while the Baby Boomers have recovered from the Recession of the 2000’s, the millennial generation has not. With higher ratios of student debts and a competitive job market, millennials are not jumping into home-ownership but instead looking to rent for longer periods. This makes the millennial generation the perfect target to market your rental property towards.

Before setting up the listing or adding new repairs to the property it’s important to understand exactly who the millennial generation is and what they are looking for in a home.

Who Are Millennials?

Millennials will account for 75% of the workforce by 2025.
94% of millennials use the internet and online sites to search for a home.
Millennials are more likely to stay with their current employer for 3 to 6 years, compared to employer duration from Generation X at the same age.
By 2020 one in three adults will be considered a millennial.

Millennials have the ability to shape the rental market due to the huge percentage of current applicants looking for a rental, and this trend doesn’t look like it is going to change anytime soon.

What Do Millennials Look for in a Rental?

1. Proximity to Work

With the millennial generation holding their current jobs longer than previous generations they are less concerned with great school systems or quiet neighborhoods and more concerned with their commute to work. When listing the rental include information about train station, bus routes, highway systems and main roads.

2. Environmentally Friendly

The millennial generation is also more conscious of the environment and going green. When renovating the rental property be mindful to add in green features such as energy efficient appliances in the kitchen and laundry room, energy-saving lightbulbs, low flow toilets and water-saving showerheads. These can be small updates but make a huge difference when it comes to the environment and cost-cutting on utility bills which is why this is appealing to millennials.

3. Acceptance of Pets

More than 3/4 of millennials are pet owners, and by limiting a rental to only those without a pet you are drastically reducing your pool of ideal tenants. Speaking from experience, one out of every three apartments I looked at was not pet-friendly, therefore I was willing to pay more to find that one apartment that would allow my pet to live with me. There are also certain ways to protect your rental as well with the addition of “pet rent” fees and security deposits.

How to Reach Millennials

The first-place millennials will look for a new rental is online so it’s important that you have a website and online listing for the home.

The rental listing should include:

Monthly rent.
Security deposit cost.
Quality pictures of each room, outdoor space and exterior.
Pet policy.
Room count, including bedrooms and bathrooms.
Amenities including the energy efficient appliances, and green upgrades.
Location of property in relation to roadways, nightlife, and other venues.

It will also be beneficial to ask previous renters for reviews to place on your website as well because reviews and ratings are effective indicators of quality for the internet-savvy millennial users.

The millennial generation is important to the rental market since they are a hold a significant percentage of the current applicants and the trend toward renting over home ownership doesn’t look to be changing anytime soon. If you can ensure that your rental property fits into what millennials are looking for then you will find that vacancy issues with no longer something to worry about.

If you’re looking to buy and hold another rental property, Bridge Loan Network is here to help you find the financing you need.

Submit a free inquiry and the opportunity will be matched with our qualified and approved hard money lenders.

The simple application portal digitizes the lending process enabling brokers and borrowers to upload needed documents, authorize credit checks and have a full loan package for our lenders to review. Apply now!

49th Hard Money Pitbull Conference

Bridge Loan Network is attending and exhibiting at the upcoming 49^th National Hard Money Pitbull Conference in California. The Pitbull Conference which is taking place June 2^nd through 3^rd at the Beverly Hilton Hotel is the oldest and largest organization of its kind in the country. Their mission is to educate brokers, lenders, and investors on the emerging opportunities that exist in the hard money lending space.

The agenda for the Pitbull Conference is filled with compelling sessions from hard money industry experts. In addition to the mix of educational sessions, there will be numerous opportunities for networking with other attendees and the awesome exhibitors, such as Bridge Loan Network.

“Bridge Loan Network always looks forward to attending the Pitbull Conferences throughout the year,” says Bridge Loan Network’s President of Operations, Jonathan Allen. “These events are essential for us as a hard money lending software company, to be able to network with the attendees as well as other exhibitors is invaluable.”

Be sure to visit the Bridge Loan Network team at the show. For more details on the Pitbull Conference, click here.

Landlord Tip: How to Get Your Property Summer Renter Ready

The warm summer months are one of the most active times of the year for the real estate industry. This is a time when college graduates move to new cities following jobs, and families feel more secure looking for a new home now that their kids are out of school for the summer.

If you are a rental property owner or a landlord with properties that are open for rent, then the summer season is the perfect time to prepare your rental properties for new tenants. The first impression your property makes is what’s going to help it stand out from all the other rentals they have looked at online and in person. And it’s important for your rental home to show that new tenants will have a landlord who cares about the property and who maintains it suitably.

For the purpose of this article, we are going to focus on how to prepare the exterior of the home to attract potential tenants. The interior is important as well, but since the weather is warmer, let’s focus on the yard work that needs to be done for tenants to see the value of an outdoor space.

Gardens, Grass, & Gnomes

Many renters, especially families will be looking for a place outside to enjoy the warmer months, as spending time with their kids who are off from school is at the forefront of their minds. By adding in a patio space and small garden areas with manageable plants and garden decor, not only are you adding ascetic and an outdoor living area, but you are also cutting back on the size of the lawn that will have to be maintained (by either the landlord or the tenants).

Clean, Repair & Update

After previous tenants move out, or after purchasing a new rental property, it’s imperative to take care of any repairs needed, and check to see if any fixtures can be updated. This can include sealing cracks in the driveway and walkways, updating the mailbox, touching up chipped or faded paint and updating the light fixtures on the front of the home.

Overall, the summer months may be the busiest time of the year for the real estate market, but it’s also one of the few times you can really highlight the exterior of your home to attract potential tenants. Even the simplest of patio spaces and gardens can add a whole new look to the property and with clean paint and a fresh mailbox can attract a wave of new tenants and ensure they feel at home.

For more information on the importance of curb appeal check out our past blog post, 3 Tips to Attract More Buyers to Your Flip with Curb Appeal, as it can also apply to rental properties.

Submit a free inquiry and the opportunity will be matched with our qualified and approved hard money lenders. The simple application portal digitalizes the lending process enabling brokers and borrowers to upload needed documents, authorize credit checks and have a full loan package for our lenders to review. Apply now!

Investor Advice: The Importance of the Rehab List

How important is the rehab list for a fix and flip project, really?

The answer is simple, it’s extremely important.

Having a detailed list of all the renovations needed when applying for a fix and flip loan is vital for the appraiser to develop a better understanding of the scope of the project and how much value the investor will be adding to the home.

When ordering an appraisal with a Private Lender both the rehab list and the appraisal order form are almost always needed. The appraiser is then going to look at two values: the current market value or As-Is Value and the After-Repair Value (ARV). With the rehab list being as detailed as possible, including the costs associated with each repair, the appraiser can then successfully determine the After-Repair Value, which can help determine how much a lender will loan on a specific project. For example, some lender will not lend above a certain percentage of the ARV.

Details Matter

Even though each investor has a different method of completing a rehab project, from stripping down to the studs, to adding luxury finishes, writing down the level of finishes on the rehab list is extremely important. The small details matter!

For example, when looking to update the kitchen as part of the scope of work it’s essential to go into detail about each specific update. Will there be granite counter-tops or laminate? Custom cabinets or stock cabinets? Stainless steel appliances? New flooring? These details will help the appraiser determine an appropriate After Repair Value.

Accurate Numbers

Now that you have each specific detail of the renovation in the rehab list it’s just as important to have the costs associated with each detail. This is extremely important when reaching out to a private lender for a rehab loan, as this will highlight the costs associated, ensuring you receive an accurate and complete rehab budget. Many private lenders will provide their own template rehab list/ budget builder to complete, but they may also accept your own personalized rehab list as well.

Overall, be clear with your numbers, check the numbers several times to make sure that the totals match and that something wasn’t counted twice or that a rehab item was omitted. The more accurate and detailed your rehab list is, the more accurate your appraisal value will be and the easier it will be to secure a rehab loan.

Submit a free inquiry and the opportunity will be matched with our qualified and approved hard money lenders. The simple application portal digitizes and organizes the lending process enabling brokers and borrowers to upload needed documents, authorize credit checks and have a full loan package for our lenders to review. Apply now!

2019 National Private Lender Expo

Bridge Loan Network is excited to be attending and exhibiting at the upcoming National Private Lender Expo in New York. The Expo which is taking place May 16^th at the Staten Island Hilton Garden Hotel is a one of a kind networking event where private lenders, investors, and mortgage brokers from across the country meet to discuss the commercial and residential real estate industry.

The agenda for the National Private Lender Expo is filled with compelling sessions from industry experts. In addition to the mix of educational sessions, there will be numerous opportunities for networking with other attendees and the awesome exhibitors, such as Bridge Loan Network.

“Bridge Loan Network is looking forward to attending the National Private Lender Expo for the third time,” says Bridge Loan Network’s President of Operations, Jonathan Allen. “This event will provide us with the opportunity to make valuable business connections with others in the local and surrounding New York areas.”

Be sure to visit the Bridge Loan Network team at the show. For more details on the Expo, click here.

The Importance of Background Reporting

In a continued effort to provide superior customer service and product updates to our clients we launched our Broker User Survey earlier in the year to gain a greater insight into how we are doing.

Many of our survey results highlighted the need to focus training on the services we offer in our software, including the ability to run a background check on a borrower powered by LexusNexus.

Background checks on borrowers are an important step in many, if not all, private or hard money lending transactions. *

Lenders require background checks to gain a better understanding of the borrower and their likelihood of repaying the loan. In certain situations, a background check can make or break the loan.

The typical red flags lenders will be looking for in a background check are any real estate delinquencies such as missed mortgage payments, defaults, or foreclosures. This is one of the most important items lenders will look into on a background check and can be the hard-determining factor to pass on giving a loan. Lenders will also look at any judgments or tax liens and fraud, criminal activity or serious felonies reported. Depending on the lender, there may be other items that can be deemed as a red flag, but lenders will always specify the problem when declining to continue with the loan scenario.

With that being said, if you have a client that has any of these red flags come up on a background report, be upfront with your lender and talk through the different paths to getting the deal funded. In some cases, lenders will be able to make an exception on certain occurrences.

As a user of Bridge Loan Network, Brokers and Lenders can run background reports on borrowers similarly to running a credit check. The background report will be stored in the Bridge Loan Network system and attached to the borrower for 90 days.

*Our team at Bridge Loan Network has lenders in our network that can provide loans with no credit or background check. If you have a client that you think may have a problem with either aspect, ask our team about our no document lenders.

Selecting Your Next Investment Property

When fixing and flipping or fixing and leasing real estate properties there are some important aspects to take into consideration before moving forward with the project. The fix and flip corner in real estate investing can be highly profitable for investors, but it’s important to choose your projects wisely so you do not overextend yourself and your resources.

Before you purchase your next property, keep in mind these five important aspects:

Location – The location is not only important to consider for your potential ROI, but it’s also important to consider how accessible the property is for you and your team. You don’t want to choose a property that would be a nuisance to travel to on a daily basis. It could cause delays in the project and unforeseeable travel expenses. It’s also important to consider the surrounding neighborhood and comparable houses. The house could be the perfect flip, but in a neighborhood that is not desirable to homebuyers, it could turn into a flopped project.
Return on Investment – Having set guidelines for rehab projects helps investors choose a property to invest in. When selecting a property, consider the purchase price, renovation costs, taxes, fees, and interest payments compared to the after-repair-value of the home. Does this ROI meet your set guidelines? There are always risks involved when flipping and selling a home but, with these guidelines in mind, you shouldn’t make a purchase unless you feel the ROI will reflect properly.
Determine a timeline – Before purchasing a property look at the scope of work needed and then determine if these fit into your timeline. Are you looking for a quick fix and sell, or do you have more time to spend on renovations before listing for resale? It’s also important to consider the season and weather when determining a timeline. Weather can affect how fast certain home improvements can be done, and bad weather can cause delays. Also, homes tend to sell faster during the warmer and sunnier months and slower during the cold and snow-filled months.
Create a budget – Expenses can pile up when taking on a rehab project and it’s important to set a budget and stick with it. There can always be unforeseen expenses that occur but adding a section to the budget for unexpected expenses can help alleviate any stress if something arises. Also, keep in mind the market for the home. Do you need to spend more on high-end pieces or is the market looking for simple and practical?
Get funding – Are you ready to buy? Let us help find the funding for your flip, by matching you with lenders in our Bridge Loan Network Marketplace.