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!

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!

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:

1. 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.
2. 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.
3. 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.
4. 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?
5. 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.

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!

Top real estate professionals are always on the lookout for new tools and technology solutions to help their businesses gain a competitive advantage over their competitors. Plus, it’s also getting harder and harder to compete in the real estate industry without utilizing the right technology solutions.

To help determine the software solution that will be the right fit for your processes and business model, it’s helpful to first start by asking yourself these two questions;

What are the challenges your team faces?

One of the first steps in finding right software solution is by talking with your team about their processes and identifying the obstacles and challenges they face on a daily basis. For example;

Has it become increasingly difficult to manage multiple clients and deals at once?

Would automating the credit and background checks alleviate more time that could be spent working with new clients?

Do you often come across deals you cannot fund?

Once the challenges have been uncovered, you can then determine new objectives and goals that can help alleviate these challenges.

What are you looking for in a new software?

Examine your workflows and speak with your team to learn where inefficiencies or tedious tasks are. Then, determine what you are looking for in a technology that can help solve these.

Potential Software Objectives:

• Conduct Better Deals (and More Deals)
• Seamless Communication (Internally and Externally)
• Secure Paperless Document & Fee Collection
• Workflow Automation
• Professionalizing the Process
• Integration with Vendors & Other Resources
• Establishing Referral Connections

Ask your team if there are any technology solutions they’ve researched and been curious about. Then encourage them to schedule a demonstration of the software to determine if it would work for your company as a whole.

Bridge Loan Network’s Loan Management System

With our Loan Management System (LMS) companies can manage and track all their loans, upload and store documents, run soft and hard credit checks, pull background reports and conveniently send full loan packages to approved lenders, or your lender of choice.

Bridge Loan Network also offers our brokers the opportunity to have a white labeled online loan application for your clients to complete. Any application that is submitted will generate a loan ID and will populate directly into your LMS.

LMS Features Include:

• Shorter Loan Application
• Access to Bridge Loan Network’s Referral Portal
• Easy One Click Borrower Credit & Background Checks
• Loan Progress Toolbar
• Broker Commission Forms & Reports
• Comprehensive Rehab Budget Analysis
• Customer Support System

Benefits of the LMS Include:

• Increase your online presence to capture more leads
• Use your website to inform your target audience about different loan programs

Overall, the technology solution chosen will ultimately stem from its ability to help your team and business outperform the competition. To maximize the execution of the new technology with your team, you must clearly understand the challenges and set new objectives to overcome them.

As the leading software in the hard money and private lending space, Bridge Loan Network is designed specifically for real estate brokers, investors and lenders alike. Commercial Loan Brokers utilize Bridge Loan Network’s Loan Management System to provide clients with a secure and centralized location to process their loans. With Bridge Loan Network’s software, the loan process is simplified and automated every step of the way.

Contact us today for a demonstration of our Loan Management System. 

There’s no shortage of creative financing options available to investors, but one of the most popular methods to finance a real estate investment property is with the use of private or hard money lending. These lenders will look at experience level, financial history, and credit scores when determining if a loan scenario is a right fit for the company.

When lenders check a borrower’s credit score, usually with a hard tri-merge pull, it’s mainly focusing on the borrower’s ability to repay the loan based on their past financial history. Typically, credit score minimum requirements depend on the exit strategy of the real estate investment. For an investor who is fixing up the property for resale, the credit score may not be as big of a determining factor for LTV’s and interest rates. This compared to an investor who’s exit strategy is to refinance out of the hard money loan using a traditional lender, the credit score will be a significant factor in the loan approval process.

Generally speaking, Private Lenders are looking for a credit score above 600 but will consider credit scores around 575 and above depending on the reason for the scores level. So, before diving into the ways to improve your credit score to obtain the best LTV and interest rates, it’s important to understand how your credit score is determined. Credit scores operate on a scale range of 300 to 850, where 850 is the highest credit score that can be achieved.  To achieve any score, credit is comprised of five elements, with some holding more weight (shown as the percentage below) than others;

1.  Payment History (35%)

2.  Amounts Owed (30%)

3.  Length of Credit History (15%)

4.  New Credit (10%)

5.  Types of Credit Accounts (10%)

With the five elements that determine a credit score in mind, here are four simple ways to help increase your credit score;

1. Check the Credit Report and Score

This may sound obvious, but it’s surprising how many people don’t actually know what their credit score is. In particular, when checking your score, it’s important to make sure there are no late payments incorrectly listed, and that the amounts owed (if any) for each of your accounts are correct. If you see any errors on the reports, dispute them immediately.

Before pulling a hard check on your credit that will affect the overall score, Bridge Loan Network offers soft credit pulls. Soft credit pulls have no effect on the credit score and will give the lender a general understanding of the credit score and if this is a scenario that makes sense for their company and the LTV and interest rates they can offer.

When the lender determines the borrower and the deal are secure, the hard tri-merge credit pull will still need to be on file, but if you are in the Bridge Loan Network portal, this score will last 90 days, and will not have to be pulled for every loan scenario you send to the lenders.

1. Dispute Any Errors

Under the Fair Credit Reporting Act, both the organization that provided your credit report and the credit bureau are responsible for amending incorrect information on your credit report.  It’s important to reach out to both parties with the information you believe is incorrect and clearly identify each item you are disputing, explain the facts around the error, and request it be deleted or a correction is issued. Also, in most states, you may be eligible to receive a free credit report from the credit bureau, once a dispute has been recorded, to verify your corrected information is listed.

1. Pay Bills on Time

Payment history makes up 35% of your credit score. Late payments, even if they are only a couple days late, can have a major negative impact on the credit score. Setting up payment reminders with your card provider or adding reminders on your phone can help ensure no payments are missed. Most credit card companies have account settings to send alerts via text messages, emails or phone calls when a payment is coming due. You can also set-up your account to pay your balance every month, even if it’s just the minimum due, so you’ll never miss a payment again.

1. Under-use the Card

Amounts owed is another major contributor, making up 30% of credit scores. It’s important to keep credit balances below 30% of the max limit of the account. Using even less will only help the score more. Some studies show that using your card at a 10% utilization ratio will have the most impact on raising the credit score.

Overall, private and hard money lenders may run credit checks to look for a borrower’s ability to repay the loan and credit score requirements can depend on the exit strategy of the investment itself. It’s important to know where you stand and how certain spending behaviors can affect your score.

Both soft and hard credit pulls are offered to all of our brokers on the Bridge Loan Network software. If you currently have these feature and are unaware of how to use them please reach out to our team for training. If you are interested in adding either of these features to your software, please again, reach out to a member of our team.

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!

When investing in real estate, it’s important to have an exit strategy, in the overall plan. This is especially important when choosing to use a private lender for funding. For example when determining the exit strategy ask yourself; is this a property you want to renovate and sell as quickly as possible, or are you looking to hold the property as a rental and refinance with a conventional lender? These are the questions your lender is likely going to ask when determining if you are a qualified borrower, and how much they can lend on the project.

What is an exit strategy?

An exit strategy is how you plan to pay back your loan at the end of the agreed upon term. It’s basically how you will get out, or exit, from the investment property, earn your return on investment (hopefully) and pay back the loan. With a sound exit strategy in the plan before you purchase the property you will be able to prevent any losses, or at least keep those to a minimum.

The Fix and Flip Exit Strategy

With this exit strategy the intent is to purchase a house that needs repairs, complete the renovations and then relist the home on the market for a profit. This method typically produces the fastest short-term profits for investors who want to then repay the loan and move on to another property to fix and flip. The overall exit strategy is to sell the property.

The Fix and Lease Exit Strategy

Fixing and leasing a property means that you are typically planning on refinancing the property with a conventional lender and holding the property as a rental unit. If you plan to refinance the property you will need to have stronger credit scores than a fix and flip exit strategy. Typically for a fix and lease scenario, lenders only lend to investors with a 660-credit score or higher. Your credit score needs to show your ability to secure another loan by the end of the term.

Do Your Homework!

It’s important to know what you are going to do with a property before you buy it. So do your homework! Experienced real estate investors also have a backup plan or a “Plan B” in their investment plan as well. Having more than one exit strategy gives you options and doing your homework before investing shows you those options. Before you invest do your homework. Plan your exit strategy.

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!

Alright, you’ve done all the hard work and completed your latest fix and flip project. You’ve checked all the boxes on your rehab list, and it’s time to list the property for sale.  Before you do, follow these four home staging tips and tricks to sell the flip quickly so you can get started on the next.

1. Clean, Clean, Clean

Construction zones are messy so first thing first, scrub any and all surfaces in the house. This includes cleaning all the windows (inside and out), light fixtures, ceiling fans, countertops, and appliances. Potential buyers look at and touch everything, so make sure the entire house is spotless.

2. Curb Appeal

First impressions count, and buyers will take notice that when a house looks cared for on the outside, the inside must be maintained to that standard as well. This doesn’t mean you have to go all out with extravagant gardens and lawn fixtures, just keep it simple. Mow the lawn (or add fresh sod), powerwash the walkways and siding, and plant simple greenery and blooming flowers. Also, just by adding a welcome mat to the entrance way can help set the tone for what’s to come inside.

3. Maximize the Floor Plan

Playing up the floor plan and square footage in the house can be done with strategic furniture placement. Arrange the furniture around a focal point in the room, like a fireplace in the living room, or where the bed will be in the master bedroom. If the house has an open floor plan, highlight where the separate room set-ups would go.  If there is no open floor plan, highlight the flow from one room to another with the furniture arranged to create an easy, clear path.

4. Set the Scene

Buyers don’t want to have to imagine how accommodating the home will be for entertaining family and friends, so it’s helpful to set the scene in the house. Set the dining room table with cloth napkins, dishes, and a nice centerpiece. If there is a bar area add some wine glasses and decorative bottles. In the kitchen place matching mugs and bowls, and cookbooks on the counters. You can also play up the bathroom areas by laying out matching hand towels, decorative soaps, candles, and faux flowers.

Other helpful tips;

• Choose a neutral color palette with small pops of color for each room.
• Arranging mirrors in strategic places can help brighten up dark rooms and hallways.
• Check out open houses in your area to see the competition to keep the neighborhood’s personality and buyers in mind.

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!