Good morning BP family- has anyone worked with Anchor Loans?
We are ready to do a refi on our duplex and would like to hear about what kind of experience others have had with this company. Thanks!
We have done one rehab with them and it went well. Everything according to timeline.
thanks @Jesse Blaine . We are still shopping on doing a refi.
I used them as a Hard money lender on a deal, they were able to close within two weeks but added a construction "holdback" in the 11th hour. Long story short they have been very good at dispersing my funds.
What type of terms are they offering?
Most every lender holds back construction. If they didn’t they’d be Funding your whole Deal.
I know someone at anchor. Seems like a decent person.
they have been refi lender that paid off a bunch of my deals.. so I love them LOL.. I get the cash they get the mortgage.
Now we know a quick way to Jay's heart... large wire transfers. LOL
@Account Closed too funny.. but also dead on true !!.. my point is that with all the fake lenders and social media lender scammers out there. Anchor is for real. if you qualify and your property qualifies they are a for real lender.
Just like in your neck of the woods
Visio is very good I get payoffs from them
Lima one I get payoffs from them
Lending home sometimes I get payoffs but they are for real.
Lendingone is for real.
Peak in KC is for real.
Conventus in SF is for real
and of course NOrris in Socal is for real.
I just hate to see these folks get scammed by the fake lenders and get ripped of for the 500 bucks or so these fake lenders try to get out of people.. offering terms that don't exist and the borrowers are too green to know they are not real..
@Mario Mormile I suspect 2 and 7 is for very highly experienced operators that's just a tad over commreical bank rates. And may only be CA.. rates usually are higher when you go to other areas
@David Weintraub when I say holdback I mean that I needed to bring my $22k rehab budget to the closing, Anchor Loans would hold those funds and allow me to draw against it once portions of the project were completed and verified by their appraisers. Again this is my first time dealing with hard money and Im not sure if this is the standard or because its my first deal with Anchor...
@Jay Hinrichs it appears you have a long track record of deals with HML is this common throughout the industry?
@John Geldert its not necessarily standard procedures but just one way to do it.
same thing as many of the lenders want you to do the work pay the subs then upon inspection they will reimburse you.. this throws a monkey wrench into many flippers cash flow..
its whatever you can negotiate.. but if your looking the the least expensive money then your going to have to put up the most cash and give the greatest protection to the lender.
It's not standard at all. You don't have to bring those funds to the table to that capacity.
Hi @Mario Mormile, I'm the COO at Anchor Loans. I know I'm a little late to the party here but I wanted to say hi and please don't hesitate to reach out if you have any questions.
Hi @Mario Mormile , I'm the COO at Anchor Loans. I know I'm a little late to the party here but I wanted to say hi and please don't hesitate to reach out if you have any questions.
I just refinanced a property with Anchor Loans last fall. They were not my 1st, 2nd, or even 3rd choice but all of the banks in my area would not do the deal. Trust me when I say I was extremely nervous with Anchor Loans and it didn't help that I was working through a broker in Chicago so there was a 3rd party in the way... The deal got done but at a HUGE EXPENSE to me. First, I paid $1,500 in upfront fees to Anchor that I didn't see as a credit in the settlement statement (or expense). Second, I paid over $22,000+ in commissions to the broker and Anchor Loans. Third, I noticed on the settlement statement that Anchor Loans charged me $5,700 for PMI Insurance that I was never told about. Fourth, they quoted me $4,000 for the appraisal. Ended up finding a local company that would do it for $1,500 and it was like pulling teeth to get Anchor Loans to accept them for the appraisal. I had to walk away a few times for them to finally agree to the lower appraisal price by my local vendor. Fifth, it took them almost 8 weeks to actually close on this deal after the appraisal. I had to get a 3 month extension from the current mortgage holder to avoid being in default. Sixth, at the final hour, Anchor Loans tells me they are not licensed in my state to lend to a Limited Partnership (LP) and I was forced to quickly form an LLC and Quit Claim Deed the property from the LP over to the LLC (MORE TIME AND MORE MONEY). You would have thought that they could have told me this weeks earlier... Seventh, the interest rate was a good 2% higher than a local bank.
Bottom Line: If you can get a loan from a local bank or credit union you will be FAR BETTER OFF. Obviously, if you have bad credit or a distressed property, Anchor Loans is for real but I was sweating bullets the hole time and will be refinancing this property back to a local lender and away from Anchor Loans when possible....
Hi @Jeff Niemeier . I'm the COO of Anchor Loans and really sorry to hear about your experience. I do see that you came to us through a broker which is why your points paid were higher. You also reference paying for PMI Insurance, however none of our loans have PMI. PMI is for conventional financing. I'd like to talk to you about the details and clear up any confusion as well as hear about your experience so that we can work to avoid these issues in the future. Let me know if you're available to talk and how to reach you. Thanks!
Anchor Loans has turned to the dark side. 2 and 12 on 99,9. They wanted 35 in reserves and 2k for earnest money. Fine, but they changed the number four times, and by sizeable jumps of $4500 and more. The asked us to sign our lives away and even used our personal credit for a loan that purchased under our LLC. The bad part is, that WE NEVER GOT ANY CASH TO CLOSE OR FINAL NUMBERS!! They always had some excuse why they couldn't close after the 5 to 7 day promise. They played the "delay game" to get us past the contingency date, making it difficult to get our money back. DO NOT TRUST ANCHOR LOANS! They will start off perfectly like a great company, but once you are in the deal, be very careful. HAVE YOUR OWN ATTORNEY.
Hi Mike Harris. I’m the CEO of Anchor, and I am disappointed and surprised to hear about your negative perception of Anchor as described in your review. I have thoroughly reviewed the file regarding your loan application – including notes from emails, phone calls and texts. I feel obligated to point out that your post appears to be based upon your reaction to not getting everything you wanted as opposed to the facts of what actually happened with your loan application. Without going into those details here, the fact is that Anchor has been in business for more than 20 years, and over 85% of our monthly originations are made to repeat borrowers – obviously happy with Anchor to give us reoccurring business. That remarkable 85% statistic is a product of many things, including (1) the fact that at all times Anchor is committed to transparency and therefore all terms are disclosed up front so that our clients’ valuable time is never wasted, and (2) Anchor’s 20 year track record of providing personalized and outstanding customer service to each and every one of its clients. We always have been and continue to be committed to helping our clients achieve their business goals, however we all only succeed when the process is mutually beneficial. I wish you the best in all future endeavors.
Update, Anchor Loans sold my loan and now it is being serviced by Cohen Financial in Chicago. The last auto debit payment to Anchor Loans was never forward to Cohen Financial, so Cohen charged me a $411 late fee and demanded payment of the missing month! It took me multiple emails and phone calls to both Anchor Loans and Cohen Financial for them to "find" the missing payment! After 45 days the missing payment has been created to my account with Cohen but they still want payment of the $411 late fee... If at all possible, please use a local bank to finance your deals. Nation wide lenders like Anchor Loans are more expensive and you will not get the service of a small bank. I've talked to the Anchor Loans COO and I know they care. Just not as good as a local personal banker...
Stay away. We had two deals with them. One was paid off and went well (around $4M). The second deal went really bad and we are looking at legal options. They refused to extend our loan due to covid. Raised our interest from 7.99% to 10.2%, and when refinancing was delayed by new lender due to Anchor delays in giving us payoff, they began charging default rates. This even though they verbally told us when We refinance they would waive the fees. Stay away. I’m all honestly. Very unorganized, slow draw process even when they tell you upfront they are not and very little experience and efficiency in high end and hillside projects. They might be good for quick renovations. Anything more and their loan docs will screw you.