First Bridge Lending https://firstbridgelending.com Wed, 09 Oct 2019 09:54:01 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.11 5 Tips for a Successful Home Flip https://firstbridgelending.com/5-tips-for-a-successful-home-flip/ Wed, 07 Aug 2019 19:47:41 +0000 https://firstbridgelending.com/?p=210260 The post 5 Tips for a Successful Home Flip appeared first on First Bridge Lending.

]]>

Home flipping can be a great way to find a low-priced home that needs work, complete the work yourself (or with the help of a contractor), and quickly flip the home for a profit on your investment.

However, before you venture into a renovation project, you should know to make sure that your flip is successful. As an investor, success is ultimately defined by a single factor: your profit. An important part of this equation is selecting the right property for your goals.

These 5 tips from First Bridge Lending loan originator Hannah Edwards will help you set yourself up for a successful flip and ensure that you maximize the profitability on your investment.

  1. Buy at the right price to make a profit.

Homes that need renovation work are typically priced well below the market value of finished home, and as a result, they tend to attract a lot of attention and offers. When you’re considering investing in a flip property, remember that your ultimate goal in the transaction is your profitability.

Be willing to walk away if a home bids up out of your profit range, and don’t get caught in the competitive frenzy of multiple offers. Stick with a price you know you can make a profit. If the house price goes above your profit margin, find a different property to flip.

  1. Pay attention to curb appeal.

Curb appeal is an important factor in selling any home. The way the home looks the moment a prospective buyer sees it for the first time will create a powerful, lasting first impression that will go with them as they enter the home. If the home looks old, unfinished, and run down on the outside, then the buyer may not appreciate all the upgrades on the interior as much as if there’s a full package of good impressions.

Don’t forget to pay attention to curb appeal as you’re getting your flip home ready to sell. Here are some key items to focus on:

  • Take time to have the yard landscaped with fresh greenery, a lawn, and flowers to make it look welcoming and beautiful.
  • Stick with trendy but neutral paint colors on the outside of the home.
  • Make sure the gutters are cleaned and the yard is free of debris.
  • Update the mailbox.
  • Add seasonal décor to the front door (signs, wreaths, etc.) that makes it look like home.
  • Want to add a pop of color? Paint the door a contrasting color to draw attention and add a splash of color.
  1. Know your market and limit your purchases to markets you know well.

A vital factor of a successful flip is choosing a project in a market you know well. By understanding the market, specifically how homes are priced in a particular area, you’ll be able to quickly spot a good deal and get an idea of your profit margin. You won’t know one, unless you really know your market well.

Google the real estate hot spots to find flip opportunities, make sure you’re investing in an area that will support your venture. Make sure that you don’t just look at the listing prices of homes in your target market. These prices are more subjective to what homeowners want to get out of selling their homes. To measure the market opportunity, instead focus on the selling prices of homes. Are they selling at list price? Above or below list price?

You should also know a good contractor and crew (or partner with one who shares equity in the flip) and have them take a close look at any property you’re considering. This way, they can give you a detailed description and pricing on all the work that will need to be completed in the flip, along with pricing and timing.

  1. Create value in your flip.

Your goal during a flip project is to look for ways you can create value in the home with repairs and upgrades that will be attractive to buyers. Here’s a few of our favorite tips on quick value-adds in flip properties:

  • Don’t rip out good cupboards. If they’re in good condition can be painted or resurfaced and fitted with updated knobs to update them with a fresh new look without replacing them.
  • Mid-century items are in style right now, so leave features and fixtures from the 1960s era if they are in good condition (but remove or replace anything from the 80s and 90s).
  • Remove wide grout tile countertops in kitchen.
  • Paint neutral colors.
  • Have the home professionally staged for showings.
  1. Time is money—get in and get out quickly. 

Time is of the essence in a home flipping project. You need to get in, make the repairs and upgrades as quickly as possible, and relist the property for the best chance of a good profit. The market can change quickly, so if you take too much time on the renovation, you may be at risk of losing money in the long run.

Also, keep in mind, the bigger the project, the higher the risk. If it’s your first time flipping a home, don’t try to add square footage with new construction on the home. Stick to repairs and profit-boosting upgrades to the home instead.

First Bridge Lending has extensive experience in the flipper real estate investment market. We’re local to California and understands just how the market is trending where you’re looking to buy. We can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy and renovate.

For more information on flipper real estate investments, contact First Bridge Lending directly by calling 415-366-1235 for our Petaluma office.

Contact First Bridge

The post 5 Tips for a Successful Home Flip appeared first on First Bridge Lending.

]]>
First Bridge Cross-Collateral Loans https://firstbridgelending.com/first-bridge-cross-collateral-loans/ Fri, 05 Apr 2019 03:05:20 +0000 https://firstbridgelending.com/?p=210176 The post First Bridge Cross-Collateral Loans appeared first on First Bridge Lending.

]]>

Acquiring financing for multiple properties, whether for investment purposes or the purchase of a new home (when you’ve not yet sold an existing one) can present some challenges for both borrowers and lenders alike.

Traditional mortgage financing will not typically support the circumstances or timing in these situations, but a cross-collateral loan from a reputable lender may be just the solution you need to help you accomplish your investment goals, streamline your finances, and move quickly to secure sought-after properties in the market.

What is a Cross-Collateral Loan?

In a cross-collateral loan, a lender issues new financing that includes two or more properties for collateral (including existing properties and the new purchase), including release provisions for each property. The new loan secures multiple properties in one monthly payment for the buyer.

For example, if a buyer owns a property with no debt that is valued at $500K, then the buyer could get a loan for a new property priced up to $500K, using the existing property and the new purchase as collateral to secure financing.

Advantages of a Cross-Collateral Loan

Cross-collateral loans provide financing for buyers who are in unique positions that may otherwise rule out loan options due to their circumstances (or those of the property they wish to buy).

This loan type can offer many advantages to the right buyer or investor, including:

  • Borrowers can leverage equity from another property they own
  • Borrowers can gain more equity in a cross-collateral deal
  • Borrower can have one monthly loan payment instead of multiple loans, on multiple properties
  • Lenders can get the additional security they need to finance a tough loan with unique terms

Which Types of Buyers Benefit Most From a Cross-Collateral Loan?

Cross-collateral loans can be advantageous for different types of buyers and scenarios, including:

  • Investors who want to move quickly on a hot investment property
  • Home buyers who want a second residence or need to purchase a new home before their existing home has sold
  • High-risk property types that won’t qualify for conventional financing
  • Poor credit history that limits buyer financing options

Investors can take advantage of cross-collateral loans by using the equity on other properties they own as collateral for a new purchase. With a cross-collateral loan, an investor can move quickly on a sought-after investment property and make a strong, cash offer with no contingencies of selling an existing property or obtaining financing.

Home buyers who are looking into purchasing a second residence, or who want to purchase a new home before they’ve sold an existing property can also benefit from a cross collateral loan. These buyers can use their existing equity and pledge it as collateral on a new home purchase. The buyer can then pay one payment for both properties. If one of the properties used as collateral is debt-free, and the buyer sells that property, those funds can be used to pay off the cross-collateral loan. This type of cross-collateral loan is commonly referred to as an owner-occupied bridge loan, which provides short-term financing options for buyers.

Risky property types or poor buyer credit profiles can often prevent investors or home buyers from getting the financing they need to purchase a particular property. Cross-collateral loans are a great option when there is extra risk involved in the deal, because there’s extra collateral on existing properties to help secure the loan.

The Advantage of Using First Bridge Lending for a Cross Collateral Loan

Many lenders do not offer cross collateral, but First Bridge Lending understands the importance of reliable, reactive investor financing. We have extensive expertise in cross collateral loans and can help you leverage your existing equity as collateral on a new investment-all in one loan payment. We handle all the underwriting in house, can waive inspections and appraisals, and can get you funds for an all-cash offer in as little as 3-10 business days.

First Bridge is local to California and understands just how the market is trending where you’re looking to buy. We can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy.

For more information on First Bridge Lending and our lending practices, please contact us directly by calling 415-366-1235.

Contact First Bridge

The post First Bridge Cross-Collateral Loans appeared first on First Bridge Lending.

]]>
4 Benefits of Real Estate Investing as a Hedge against Inflation and a Volatile Stock Market https://firstbridgelending.com/4-benefits-of-real-estate-investing-as-a-hedge/ Thu, 14 Feb 2019 17:55:01 +0000 https://firstbridgelending.com/?p=210154 The post 4 Benefits of Real Estate Investing as a Hedge against Inflation and a Volatile Stock Market appeared first on First Bridge Lending.

]]>

The stock market is influential for investors who are looking for high returns on their investment, but there’s also a high amount of risk and uncertainty that goes along with such investments. Even slight shifts in the economy or a change to other factors that influence stock prices and value can cause significant losses on your investment.

The real estate market, though, can provide a much more stable source of investment income that you can use as a hedge against the impact of inflation or the swift changes in a volatile stock market. Many investors are turning their attention to real estate as a source of reliable, profitable returns that stay consistent over the short and long-term.

As a real estate investor, you can secure strong gains on the right types of property (regardless of the state of the market) and take advantage of these 4 benefits that real estate investments in your portfolio will offer against poor economic and stock market trends.

1. Sticking to Areas Popular with Investors Can Protect Against Inflated Homeowner Premiums

When homeowners are competing on real estate in desirable areas or neighborhoods, prices typically inflate along with the demand. While spending more on a property as a long-term home might make sense to a home buyer, the increased prices aren’t as desirable to investors who want to turn a profit on resale or rental. When you stick to areas that are popular with investors with similar motivations and cash flow as you, you’ll find that prices will stay more static and not be as affected by increased premiums driven up by homeowners. Competing with investors (vs. competing with homeowners) will help shield you from inflation and keep your numbers in a profitable range on your investment property.

2. Many Investment Properties May Be More Immune to Recession

Investing in the stock market can offer big returns in a strong economy, but it can also be extremely risky when the market dips into a lull or even a recession. Some of your strongest investments can quickly shift down in a volatile market, and it’s the risk you assume when you place your investment in stocks.

However, real estate investments (especially in the commercial and rental markets) are much less prone to losses in times of recession because they provide solutions or services that people will always need no matter the state of the economy (such as food, gas, housing, convenience items, etc).

3. Publicly Traded REITs Remain Solid Over the Long-Term

Publicly traded REITs can be especially advantageous over the long-term of a real estate investment, and give you more investment choices with less capital involved. You can add diversity to your portfolio through REITs, and while they are more prone to losses in times of recession, the liquidity of these investments typically evens out over the long-term in terms of profits.

4. Owning Rental Property Provides a Good Investment Foundation

Rental properties have long been a popular and reliable source of investment income that can be enjoyed in both the short-term and long-term depending on your strategy. Though a real estate investment comes with inherent costs such as mortgage, taxes, and ongoing upkeep, a good portion of these expenses can be offset by the rent you earn on the property with an excess that comes in every month as profitable income. The true profitability of rental properties comes in when the mortgage is paid off, but this type of investment can create positive cash flow that creates a solid foundation in your portfolio.

In addition to cash flow, rental properties also give you the benefits of appreciation on the property, as it increases in value over time due to improvements made to the property. If you strategically choose a property that is located in a growing, promising location, and carefully select tenants who are reliable and trustworthy, you can often see appreciation occur rather quickly.

First Bridge Lending has extensive experience in the real estate investment market and all the benefits you can hedge against inflation and volatile stock market trends by making strategic, smart choices in your real estate investments. We’re local to California and understands just how the market is trending where you’re looking to buy. They can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy.

For more information on how a real estate investment can strengthen your portfolio and protect your investment against inflation and volatile stock markets, contact First Bridge Lending directly by calling 415-366-1235.

Contact First Bridge

The post 4 Benefits of Real Estate Investing as a Hedge against Inflation and a Volatile Stock Market appeared first on First Bridge Lending.

]]>
Is Now the Right Time to Buy an Investment Property? https://firstbridgelending.com/is-now-the-right-time-to-buy-an-investment-property/ Thu, 25 Oct 2018 00:03:22 +0000 https://firstbridgelending.com/?p=210088 The post Is Now the Right Time to Buy an Investment Property? appeared first on First Bridge Lending.

]]>

Prior to joining First Bridge Lending, I managed hedge fund capital and oversaw the investments of over 2,000 fix-and-flip transactions in California. Being involved in so many deals, I began looking for ways to optimize operations, and have sliced and diced the numbers in just about every way imaginable. I started analyzing trends and diving deep into questions like:

  • What resale price is outperforming the portfolio average in different zip codes?
  • How do buyers in different markets value pools?
  • What is the right amount of renovation to spend on different age and sized homes?

While much of the analysis I did was filled with significant noise, the right time of year to buy remained a constant in successful investment returns.

Year after year, I observed that properties purchased between October and February (Winter) outperformed the June to July (Summer) purchases for investors. After sponsor fees and commissions, the winter buys returned around a 20% internal rate of return (IRR), while the summer hovered around 9%.

This is a significant difference, and the consistency in these results made it statistically impossible that time of year could not be a driving factor in the results.

Why?

Economics 101 → Supply and Demand. In the Winter, you are competing with less buyers, while in the summer you need to increase your purchase price offer to stand out amongst the competition and close the deal. Conversely, buying in the Winter means you can use the Spring/Summer real estate rush to your advantage. When you are selling your Winter buys in the Spring and Summer, you are exposing your sale to the greatest number of buyers and will likely fetch a higher price for your property as a result.

Buyer Timing. Younger families made up the majority of the buyers’ pool on our properties, and often times they were first-time home buyers. These buyers don’t tend to move as frequently over the non-summer months, so you want to time your buy appropriately to be ready to bring your property to market when the most buyers are looking and ready to move.

Hold Time is an IRR Killer. The faster you flip and sell your property, the more you’ll make on your investment. Buying during the Spring or Summer may put you in a position where you’ll have to hold onto that property until the next wave of buyers is ready the next year. But a winter buy can help you decrease your hold times.

While financing now is less expensive than it was when I was buying, even just turning a 9-month hold to a 7-month, will likely increase your IRR by about 50% due to the net savings in financing charges, taxes, and faster turning of your capital.

Undervaluing the ARV on Winter Buys. During your due diligence period, you typically look back 90 days in a liquid market, and that paints a distorted picture of the exit when you buy in the Winter. For example, if you enter escrow in December, you are likely looking at ARV comparables from September through November, but your sale will likely experience a spring bump, meaning you’ll fetch a higher exit price and quicker exit.

While buying in the Winter is certainly not more important than a deliberate approach to your acquisition (or running solid, efficient operations) it is a variable that will give you tailwind in your investments, which is always welcomed in the challenging fix-and-flip market.

Contact First Bridge

The post Is Now the Right Time to Buy an Investment Property? appeared first on First Bridge Lending.

]]>
5 Reasons to Build a Long-Term, Single-Family Real Estate Portfolio https://firstbridgelending.com/5-reasons-to-build-a-long-term-single-family-real-estate-portfolio/ Wed, 10 Oct 2018 21:05:47 +0000 https://firstbridgelending.com/?p=210004 The post 5 Reasons to Build a Long-Term, Single-Family Real Estate Portfolio appeared first on First Bridge Lending.

]]>

In the United States, single-family houses for rent represent the largest real estate investment asset class, valued at approximately $3 trillion. This figure outstrips the multifamily rental market of approximately $2.5 trillion and dwarfs all of the other categories.
This makes the opportunity in single-family homes quite a substantial one for investors. Building a real estate portfolio is something that can benefit every type of real estate investor, but the advantages of structuring your portfolio to include single-family rental homes drastically outweigh those of a multi-family investment for these five key reasons.

1. Leverage Real Estate as Part of a Long-Term Investment Strategy

Combining your investment capital with financing helps increase your buying power and opens up an opportunity for you to make greater returns on your property investments. You can invest in more properties, at one time, with the same amount of money, yet yield quadruple the returns.

For example, if you have $200,000 that you’re looking to invest, you could simply purchase $200,000 in stocks. But you could also use that same amount to invest in four separate single-family rental properties (by putting $50,000 down on each one and financing the remaining amount over the long-term of your investment.

This quadruples your potential return on investment (compared to a single property) and diversifies your property investments across several markets. Diversifying your investments helps protect your investment from market fluctuations that could impact any individual location.

2. Generate Returns Through Growing Single-Family Property Values

Single-family rental homes comprise more than one-third of all U.S. rental properties — about 16 million currently, with another 13 million new rental households expected to be formed by 2030. Since U.S. housing stock is not keeping up with this future demand, the sector should enjoy a significant tailwind given these favorable supply/demand trends. Not surprisingly, demand for single-family rentals is at an all-time high and showing no signs of slowing.

The Southern California median home price slipped in July from June’s record high, but it was still up 5.8% from July 2017, according to data released by real estate firm CoreLogic.

  • In Los Angeles County, the median price climbed 5.7% from a year earlier, to $607,500
  • In Orange County, 6.6% to $735,750
  • In Riverside County, 5.8% to $386,000
  • In San Bernardino County, 6.6% to $325,000
  • In San Diego County, 8% to $579,750
  • In Ventura County, 6.3% to $595,000

3. Think (and Profit) Long-Term in Your Investments

Single-family real estate investments are ideal for people who want to create supplemental income for retirement, but that’s not the only area where real estate investments excel. If an investor targets SFR properties in the markets where the rental space is rapidly expanding due to population growth (and a diminished interest in home buying) the annual investment returns can also be substantial.
This ongoing stability means you can use these investments to supplement other riskier investments you may have in your portfolio to ensure long-term profitability.

4. Protect Your Principal

Real estate investing often acts as a hedge against larger economic trends. Single family home values and rental rates are more influenced by local economic conditions than national shifts. If you pick properties in an economically vibrant area, your single-family home investment can grow even in lean times, and data supports that single-family investments can offer the same returns as stocks, but with less fluctuation and volatility.

5. Take Advantage of Tax Breaks

As a single-family real estate investor, you can also enjoy some tax breaks by holding onto each property for at least one year as you build your portfolio. This is a long-term investment, and if you keep a property for more than a year, you’ll qualify for heavily reduced, long-term capital gains taxes when you do decide to sell that property in the future.

Single-family real estate can also provide tax breaks through depreciation. When you’re investing in single family homes that you intend to rent for additional income, you can take an annual tax deduction equal to the value of the building itself divided by the years of useful life for the structure.

First Bridge is local to California and understands just how the single-family real estate market is trending where you’re looking to buy. For more information on First Bridge Lending and our lending practices, please contact us directly by calling 949-373-5910 for our Newport Beach office and 415-366-1235 for our Petaluma office. We look forward to helping you with the next single-family investment for your portfolio.

Contact First Bridge

The post 5 Reasons to Build a Long-Term, Single-Family Real Estate Portfolio appeared first on First Bridge Lending.

]]>
First Bridge Lending Surpasses $1 Billion Mark in Private Loans Funded! https://firstbridgelending.com/first-bridge-lending-surpasses-1-billion-mark-in-private-loans-funded/ Fri, 24 Aug 2018 22:42:01 +0000 https://firstbridgelending.com/?p=209966 The post First Bridge Lending Surpasses $1 Billion Mark in Private Loans Funded! appeared first on First Bridge Lending.

]]>

First Bridge Lending is thrilled to announce that we’ve funded $1 Billion in private, direct real estate loans.

Since we started our company in 2011, we’ve stayed rooted in integrity and have strived to build a highly principled business around providing people with the funds they need to make their next big real estate move.

Where It All Began

First Bridge Lending started with one location in the Bay Area (and one employee) in 2011, under the name FJM Private Mortgage Fund. Our goals when we started still hold true as the guiding principles that have carried us to more than $1 Billion in loans funded.

Since day one, we’ve set out to:

  • Serve clients with private loans to support their real estate goals (even when conventional loans failed them)
  • Provide sound underwriting services in-house
  • Create a great work culture for our employees, clients, and investors
  • Become the top investment vehicle for investors in the state of California

These principles continue to shape our success as we will continue providing clients with simple, reliable private loan solutions that can be funded in as little as 3 days.

A Look Back at Our Journey to $1 Billion in Loans Funded

In celebration of our $1 Billion milestone, we want to take a look back at some of exciting things that have happened along the way.

  • We started with 1 location in the Bay Area serving Northern California, but have now expanded to serve Southern California with our Newport Beach location as well.
  • In 2011, we had 1 employee. Today, we’ve grown to 16 employees to serve the needs of all our borrowers and investors.
  • We’ve attracted institutional capital as we’ve grown and work with investors who typically don’t fund with small companies.
  • In 2011, our goal was to do $30 million a year; now we aim for $30 million a month!
  • Over the years we’ve built a team with a collective 75 years’ experience in real estate investments.

What’s Next for First Bridge and Our Clients?
People keep asking us, “What’s next? What will you do now that you’ve reached the $1 Billion mark in funded loans?”

Quite simply, we’re going to keep doing what we do best, serving our borrowers with integrity, sound real estate expertise, and strong investor relationships.

We are going to continue leveraging our real estate expertise to make direct, private loans happen quickly and seamlessly for both borrowers and investors.

We’ll keep serving clients by controlling every step of the loan process from origination to close. We have discretion over funds, produce our own loan documents, and do all of our underwriting in-house—no appraisal required.

How Our Loan Offering Is Growing to Include Owner Occupied Bridge Loans

By combining our 75 years of experience with our expansive funding resources, we are able to fund loans that most lenders wouldn’t even consider. We keep the process simple, easy, and reliable so you can worry about accomplishing your goals rather than your funding source.

We offer funding for fix-and-flip loans and 1031 exchanges, and we are continuing to expand our investment options to include owner occupied bridge loans. Intense regulations at the federal and state level keep many lenders from offering owner occupied loans. However, we have extensive knowledge of these loans and intend to use this expertise to help borrowers get the financing they need quickly and easily.

For more information on First Bridge Lending and our lending practices, please contact us directly by calling 949-373-5910 for our Newport Beach office and 415-366-1235 for our Petaluma office. We look forward to helping you with your real estate financing needs.

Contact First Bridge

The post First Bridge Lending Surpasses $1 Billion Mark in Private Loans Funded! appeared first on First Bridge Lending.

]]>
First Bridge Fix and Flip Loans https://firstbridgelending.com/first-bridge-fix-and-flip-loans/ Tue, 03 Jul 2018 13:23:36 +0000 https://firstbridgelending.com/?p=209934 The post First Bridge Fix and Flip Loans appeared first on First Bridge Lending.

]]>

Distressed or older properties in need of renovation are frequently listed for a much lower price than others in the same neighborhood of comparable size. The pricing is extremely attractive to investors who have the skills and expertise to restore a home and resell it for a profit, but while these homes boast a lot of potential, they’re also much more difficult (if not impossible) to finance through conventional loan types.

In such instances, a fix and flip loan can give you the option to present a strong, all-cash, contingency-free offer that will stand out amidst the sea of offers bound to be coming in on a fixer upper that is priced to sell fast.

What Is a Fix and Flip Loan?

A fix and flip loan is a unique type of financing that allows for the quick cash purchase of a single-family home or condo that may not meet the parameters or timeline of conventional home loans due to its age or condition.

This type of loan also gives buyers and investors options where they may not otherwise have them, whether they don’t have the full cash amount needed to invest in a property they want to renovate or need to keep funds liquid for a fast, profitable fix and flip renovation.

With conventional home loans, there’s often a long process involved in changing ownership of a property. There are usually contingencies (such as physical or loan contingencies) that are placed as conditions on the sale, and it can take anywhere from 30-45 days to fully lock in financing and close once an agreed price and plan is in place.

However, with a fix and flip loan, you can have funds available in as little as 5 days and can make a cash offer to the seller that is free of contingencies such as inspections, appraisals, and loan contingencies. An all-cash offer with no contingencies and a quick close can help bump your offer to the top of the pile and ensure that you’re able to secure the property you want quickly.

Who Should Seek Out a Fix and Flip Loan?

Fix and flip loans are ideal for investors who need reliable, reactive capital to move quickly on purchasing distressed or older homes in need of renovation. Fix and flip loans can be funded and presented to a seller as cash very quickly, which allows investors to move quickly on great opportunities. There are a lot of investors out there scoping out the profit potential of fixer uppers, so speed and reliability of funds are key components of ensuring you present the best deal and get an offer accepted and closed quickly.

Fix and flip loans can also be used in cases where financing has fallen through due to contingencies or other factors that come along with purchasing a distressed property. A fix and flip loan can help you continue forward in your deal without losing time or momentum, and the amount can be flexible to help you stay competitive in what you want or need to offer to secure the deal.

The Advantages of Using First Bridge Lending for Fix and Flip Loans

Many lenders do not offer fix and flip loans, but First Bridge Lending understands the importance of reliable, reactive investor financing. We’re prepared to offer qualified investors and buyers the option to close quickly with a cash offer on fixer properties. We have extensive expertise in fix and flip loans and will do all the work to make sure industry regulations are met while helping you secure your investment property. We handle all the underwriting in house, can waive inspections and appraisals, and can get you funds for an all-cash offer in as little as 3 days.

First Bridge is local to California and understands just how the market is trending where you’re looking to buy. We can meet with you in person, attend property visits, and advise you on the specifics of the area where you’re looking to buy.

For more information on First Bridge Lending and our lending practices, please contact us directly by calling 949-373-5910 for our Newport Beach office and 415-366-1235 for our Petaluma office. We look forward to helping you with your fix and flip loan.

Contact First Bridge

The post First Bridge Fix and Flip Loans appeared first on First Bridge Lending.

]]>
First Bridge Owner Occupied Loans https://firstbridgelending.com/first-bridge-owner-occupied-loans/ Sat, 02 Jun 2018 22:39:35 +0000 https://firstbridgelending.com/?p=209895 The post First Bridge Owner Occupied Loans appeared first on First Bridge Lending.

]]>

If you live in a “hot” housing market such as Los Angeles, it’s important to be able to move quickly and create an offer that a seller cannot refuse. With so many potential offers, however, how do you stand out? Owner occupied loans can help you appeal to sellers and move quickly into your new home in record time.

What is the Owner Occupied Loan?

An owner occupied loan is a loan given to homeowners who want to purchase a new home and promise to live in it rather than rent it out or use it purely as an investment property. Owner occupied loans are given without contingencies.

In most cases, when a homeowner wants to purchase a new home, they must include a contingency in their purchase offers. This means that the homeowner can only commit to their offer to purchase the new home if their old home sells within a specified period. However, owner occupied loans allow homeowners to move forward with the purchase of a new home without this contingency.

In order to obtain an owner occupied loan, the homeowner must be willing to live in the home for a specified period of time. This time frame is usually one year, but depends on the specific property and its location. The loan itself can be underwritten and closed within 5-14 days, which offers quick a turnaround for buyers.

Who should take out an Owner Occupied Loan?

Owner occupied loans are perfect for homeowners interested in moving into a new home, but who want to purchase their new home without contingencies. These loans are also perfect for homeowners who are interested in purchasing a new home and can afford to do so, but who do not currently have a standard stream of steady income. The loan is based on the homeowner’s net worth and can include investment income as a determining factor for underwriting the loan. It also looks at the loan to value (LTV) percentage. Taking the loan amount needed and dividing it by the property value of the home determines the LTV of a property.

First Bridge Lending prefers to lend to homeowners who have a 65% LTV percentage or lower because it demonstrates that the homeowner will have a greater equity stake in the property.

The lack of contingencies and strict income requirements also make these loans perfect for homeowners who want to move quickly in hot markets.

When homeowners live in hot housing markets such as Los Angeles or San Francisco, they need to be able to move quickly. They will often be competing with five to seven other potential buyers. Submitting an offer without contingencies gives these buyers an upper hand and can make their offer more appealing to the seller. Owner occupied loans also are seen as “cash offers” by sellers and can help buyers compete with “all cash” offers. This can be especially helpful for homeowners living in hot real estate markets with fierce competition.

What makes the Owner Occupied Loans at First Bridge Lending unique?

Many lenders and mortgage brokers choose not to offer owner occupied loans. First Bridge Lending is prepared to offer owner occupied loans to qualified candidates in order to help them quickly move into a new home.

One of the reasons why you rarely see owner occupied loans offered as an option with other lenders is because of the intense regulations required by the government. Regulations at both the federal and state level keep mortgage brokers from offering these loans simply because of the work involved. First Bridge Lending, however, has extensive knowledge of these regulations and experience in complying with them.

For more information on First Bridge Lending and our lending practices, please contact us directly by calling 949-373-5910 for our Newport Beach office and 415-366-1235 for our Petaluma office. We look forward to helping you with your owner occupied loan.

Contact First Bridge

The post First Bridge Owner Occupied Loans appeared first on First Bridge Lending.

]]>
FJM is now First Bridge Lending https://firstbridgelending.com/fjm-is-now-first-bridge-lending/ Thu, 12 Apr 2018 13:43:13 +0000 https://firstbridgelending.com/?p=209770 The post FJM is now First Bridge Lending appeared first on First Bridge Lending.

]]>

We’re pleased to announce that FJM Private Mortgage Fund is now First Bridge Lending! We’re bringing you the same team, the same quality, and the same experience, but we’re working to bring you even better service for your private lending needs.

Our new location in Orange County will serve you with quick, reliable loans in Southern California, and we’re expanding into a larger service area spanning Northern and Southern California.

We’re also well-capitalized with institutional investors, with rates now in the mid-8% range for well-qualified borrowers.

We’ve originated more than $1 billion in loans since 2012, and we focus on providing our borrowers with top-tier service while helping them obtain the right direct loan for their needs. We’re here to help you time and time again as you continue to invest in real estate, going beyond the one loan you need to make your investment work.

Our capital is available to service loans at any time with 100% discretion over every step of the process, enabling us to fund a loan in as little as three business days.

Contact us today to see your private lending options.

(And stay tuned: we’re preparing to launch a new owner-occupied product, and you’ll be among the first to know about it.)

Contact First Bridge

The post FJM is now First Bridge Lending appeared first on First Bridge Lending.

]]>
Meet the Team Changing the Hard-Money Market https://firstbridgelending.com/meet-team-changing-hard-money-market/ Thu, 22 Mar 2018 13:35:50 +0000 https://firstbridgelending.com/?p=209706 The post Meet the Team Changing the Hard-Money Market appeared first on First Bridge Lending.

]]>

At First Bridge Lending, we combine in-depth industry knowledge and a high level of service to provide the best private lending options for our borrowers’ property investments. Since 2012, we have closed more than 2,000 loans totaling more than $1 billion , and we have created and refined our lending process to give our clients the best loan options. Our ability to move quickly without sacrificing service or charging higher rates sets us apart from other lenders.

Here are three ways we will help you with your hard-money loans:

1. Understanding the borrower’s perspective

With more than 75 years of real estate investing and financing experience, our team has the expertise to understand each borrower’s needs and help you find the best solution for your loan. Because we’ve been on the other side of the table as investors, we have a higher level of understanding when it comes to the intricacies of borrowing as an investor. We give our borrowers the advantage of an insider’s perspective.

We do not use appraisers or any third parties for valuations or inspections. This streamlines the process and reduces borrower’s expenses. Our combined knowledge and resources allow us to make quick decisions and instill confidence in our borrowers.

2. Speed of execution

Because we manage a fully discretionary fund, we can assess and close a deal typically within three days. This helps borrowers move forward with their investments as quickly as possible with secured capital and prevents holding up the transaction.

Private and hard money lenders typically need at least 1-2 weeks to close, and some of the larger lending groups need even more time. As a mid-sized group, we are large enough to close any deal, but also small enough to be efficient, flexible, and fast.

3. Maintaining borrower relationships

We take pride in working directly with borrowers throughout the loan process. Our loans are serviced completely in-house, so you will always know exactly who you are working with on each deal. It also gives us the time to speak with you personally and understand your individual needs.

When you give us a call, you will reach our team, the same people who will be working with you from origination to term. We value long-term relationships with borrowers and excel in helping them with future investments as they build their portfolios.

* * *

Ready to get started? Contact us today to discuss your loan options.

Contact First Bridge

The post Meet the Team Changing the Hard-Money Market appeared first on First Bridge Lending.

]]>