“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

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!

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!