Bryan R. Ziegenfuse On I Fund Philly’s Streamlined Process to Score a Real Estate Loan for Developers
If you are a developer in search of a real estate loan, the process can be streamlined with a company that has experience in these specific types of loans, according to Bryan Ziegenfuse, a managing partner indirect lender I Fund Philly. Typically, developers are looking for fix and flip loans, acquisition and construction loans or bridge financing, Bryan R. Ziegenfuse said.
The first, a fix and flip loan, provides developers and property owners with the funds to purchase a property, make repairs and updates as needed with the intent to sell the property in a relatively short time frame after the remodel has been completed.
Second, acquisition and construction loans offer the funds to build a project. According to Bryan Ziegenfuse, after the project is completed, the property owner often sells or refinances into a long-term loan.
Finally, bridge financing provides funds to acquire a property with the intent of receiving zoning approval, plans and permits, Bryan Ziegenfuse said.
No matter which of these loans you require, I Fund Philly is an example of a company that makes the lending process easier than it has been for decades, Bryan R. Ziegenfuse said. The company uses a streamlined four-step process. It takes just a few minutes to be pre-approved via ifundphilly.com and, according to the site, the underwriting process gives them the ability to issue sheets within 24 hours.
Bryan Ziegenfuse said the first step is simply to build your loan and select your rate. Loan experts at ifundPhilly ask questions and learn your goals with the project so they can provide loan options that are best suited to your situation. Borrowers have the opportunity to analyze their options quickly and succinctly rather than spending a great deal of time weighing the pros and cons of each choice. Plus, the loan experts are helpful and communicative to answer any questions that may arise.
After the loan and rate have been selected, the next step in the process is to accept the terms for the project. Bryan R. Ziegenfuse said these terms are easy to understand and can be explained further by loan experts so you don’t miss a beat. The application fee is just $400. Next, just upload documents about yourself and the property. The final step is for ifundPhilly to close the deal and you can begin your project.
If you are a developer outside of Philadelphia, there are many loan experts and companies. It is crucial to choose one that makes the process simple, easy to understand, streamlined and that provides assistance and information as needed, according to Bryan Ziegenfuse.
Bryan R. Ziegenfuse Shares Tips on Scouting Out Your Perfect Real Estate Agent Match
When it is time to find a real estate agent for you, you may find the process is overwhelming. There are plenty of real estate agents out there claiming to be the perfect fit for you, so who can you trust?
Bryan Ziegenfuse, a managing partner in a real estate direct lender, said before you choose your real estate agent it is important to speak with your lender and find out how much house you can afford. It can also benefit prospective home buyers to get preapproved for a home mortgage first so a budget is clearly in mind when working with a real estate agent. It also demonstrates to real estate agents that you are serious about purchasing a home.
Bryan R. Ziegenfuse shares his top tips for choosing a real estate agent, based on his decades of experience.
- Get Referrals From Others
Word of mouth and referrals from other homeowners is a crucial part of finding a trustworthy real estate agent, Bryan R. Ziegenfuse said. Ask friends and family members in the area who they have used and who they recommend (or suggest you stay away from), Bryan Ziegenfuse advised. If you can’t get personal references from people you know, online reviews and referrals can go a long way, too. Take advantage of people who have been through the process before and can point you in the right direction.
- Communication is Key
As with any other relationship, a real estate agent who you can communicate well with is essential, Bryan R. Ziegenfuse said. A real estate agent who you are uncomfortable talking to or who you feel is pressuring you is not a good fit. Do not settle for someone who makes you feel awkward or who you can’t be open with.
There are no dumb questions- a good real estate agent should be willing to listen to you carefully and answer your questions patiently as the process goes, Bryan R. Ziegenfuse said.
- Trust Your Gut
If you have a “gut feeling” or intuition that tells you a certain person is a great fit, trust that, Bryan Ziegenfuse recommended. At the end of the day, if someone has great experience and referrals but you just don’t have a good feeling about them, it is okay to keep looking. Likewise, if it just feels right and you jive with the real estate agent, trust your instincts and hire them.
Bryan R. Ziegenfuse, Managing Partner in a Direct Lender, Shares the Basics of Private Lending Loans
If you are considering a private lending money loan or just want to know what they are all about, Bryan Ziegenfuse is here to help.
Bryan R. Ziegenfuse is the managing partner indirect lender I Fund Philly, which focuses on real estate lending.
He has had a diversified career for more than 15 years as an executive across the lending, capital markets, finance, and portfolio management disciplines.
Without further ado, here are the top things to know about private lending loans, according to Bryan Ziegenfuse.
What is the definition of a private lending loan?
A private lending loan is usually used in real estate actions, Bryan R. Ziegenfuse said. The collateral for the loan is the property being purchased, not the buyers’ credit.
Who gives a private lending loan?
Private lending loans are not made by traditional lenders, such as banks, according to Bryan Ziegenfuse. The lenders are typically private individuals or companies that find value in a private lending loan.
Because private lending loans are riskier than traditional loans from banks or government lending, the cost to the borrower is typically higher.
What are the benefits of a private lending loan?
You may be wondering if the cost is higher and a bank won’t give it, what is the use of a private lending loan? Bryan R. Ziegenfuse said a private lending loan provides faster access to the money because the approval process is not as lengthy. Additionally, it can be a good option for those with poor credit, since a person’s creditworthiness is not considered in the private lending approval process.
For example, people might use a private lending loan to stop a house from being foreclosed on, Bryan Ziegenfuse said. The money can be issued rapidly, the approval process is quick, repayment options are flexible and the equity in the property is used as collateral.
What are the negative aspects of a private lending loan?
On the other side of the coin, there are potential disadvantages to a private lending loan, Bryan R. Ziegenfuse pointed out. For one thing, the interest rates on a private lending loan are higher than the more traditional loan interest rates, Bryan Ziegenfuse said.
Part of this is because short term interest rates are nearly always higher than long term rates. However, private lending loans can have an interest rate that is higher still. Another potential downside to private lending loans is that they often have a lower loan-to-value ratio than a traditional loan. These are good aspects to be aware of before jumping into a loan, Bryan R. Ziegenfuse advised.
Bryan R. Ziegenfuse Gives the Details on a Fix and Flip Loan and Who Can Benefit From It
Wondering what a “fix and flip loan” is and who should acquire one? Bryan Ziegenfuse, a managing partner of direct lender I Fund Philly, shared his advice on these loans. A fix and flip loan are used by short-term real estate investors to purchase and renovate a property before flipping it for a profit, according to Fit Small Business.
Fix and flip loans involve getting capital to acquire and repair a property, Bryan R. Ziegenfuse stated. With these loans, typically the property is purchased, renovated and sold again within one year. It is a great option for those who are purchasing a property in poor condition with the intention of selling it rather quickly, Bryan Ziegenfuse said.
According to Attom Data research, house flippers renovated more than 200,000 homes in 2017 with an average profit of 68,143 per property. House flipping is increasingly popular, Bryan Ziegenfuse said, which means people are looking for the best way to finance the purchase and remodel of the home.
In addition to purchasing the house, a fix and flip loan should cover the holding cost of the home, including insurance payments and HOA fees, materials and labor for renovation, and realtor and closing costs to sell the property after it has been renovated.
Before you attempt to obtain a fix and flip loan, ensure that you have a business plan for the flip that gives exact details and detailed estimations on the costs of the house flip. According to Fundera, many flippers do not borrow enough money from their lender and run out of funds before the home renovation is complete. Avoid this situation by creating a detailed outline of the repairs and how much they will cost without leaving anything out.
Bryan R. Ziegenfuse’s company, I Fund Philly, offers fix and flip loans. Usually, the property owner’s intent is to sell the property once repairs and rehabilitation have been completed, Bryan Ziegenfuse said. I Fund Philly prides itself on simplifying the experience of obtaining a loan, which can sometimes be a long and arduous task. With user-friendly online processing, transparent fees and competitive rates, reliable closing and delightful service, I Fund Philly stands out as an excellent company to help acquire a fix and flip loan.
Bryan R. Ziegenfuse joined I Fund Philly in 2018, following a 15-year career as an executive across the lending, capital markets, finance, and portfolio management disciplines. His years of experience mean he knows what is important to people securing a loan: speed, greater leverage, and reliability of funds.
Direct Lender Managing Partner Bryan Ziegenfuse on Mortgage Trends in 2019
Mortgage rates fluctuate almost daily, which can make it difficult to see the bigger picture, according to Bryan Ziegenfuse, a managing partner in a direct lender that focuses on real estate lending. So far in 2019, mortgage rates have fallen across the country and home prices have been rising slowly. What can we expect to see in the remainder of the year?
Bryan Ziegenfuse shared his thoughts on current home marketplace trends and what people can anticipate for the remainder of 2019. If you are thinking of purchasing a house in the near future, read on!
Mortgage rates will stay low
According to NerdWallet’s daily mortgage rates survey, the average APR for a 30-year-fixed mortgage fell to 4.09% by June 2019, down a full percentage point since November 2018. This drop was not expected, Bryan Ziegenfuse said, but it means people are looking at refinancing their homes at lower rates. It is predicted that this mortgage rate will remain relatively stable through the rest of 2019. Mortgage rates are always shifting, but experts predict that there will not be more than a one-tenth percent change for the remainder of the year.
Refinancing mortgages can be beneficial
This year is a good time to consider refinancing your home, Bryan Ziegenfuse said. Mortgage rates are not just down for those buying homes, but also for individuals interested in refinancing to get a lower interest rate. According to NerdWallet, estimates show that 5.9 million homeowners could cut 0.75% or more from their mortgage interest rate by refinancing. However, Bryan Ziegenfuse advised using a mortgage refinance calculator to find out the best time to refinance for your situation.
Home affordability remains an issue
Despite the low mortgage rates, first-time homebuyers are still expected to struggle to afford to purchase a home. NerdWallet reported that homes priced at $400,000 or less are in short supply, and the number of newly-built homes in that price range is declining. Those who are buying a house for the first time will find it difficult to afford to purchase a home, Bryan Ziegenfuse said.
Lending standards will become less stringent
Bryan Ziegenfuse said it will become easier to obtain a home mortgage, as lending standards will become less strict in the near future. People may not need the same credit score they would have needed a decade ago, less documentation will be required and smaller down payments will be accepted, making it easy to get a mortgage for potential buyers.
Bryan R. Ziegenfuse Guides You Through Residential Loans 101 and What You Need to Know
So you are ready to buy a home or you are thinking about purchasing one in the future: congratulations! You will probably be using a residential lending service to secure a loan (assuming you’re not paying cash for the house). The average new mortgage balance in the United States is $260,386, according to the Consumer Financial Protection Bureau.
When it’s your turn to take out a residential loan for your house, Bryan Ziegenfuse, a managing partner in a direct lender, said there are a few key things to keep in mind. A crucial component is getting your application for a residential loan approved, Bryan R. Ziegenfuse said. This depends on your credit score, how much your down payment will be (typically 3.5% is the minimum), your employment status, and how much debt you have.
People typically have a good idea of whether they will easily be approved for a mortgage loan in advance, said Bryan Ziegenfuse. It’s possible to check your credit score online (and find plenty of ways to improve it), spend time-saving your pennies and paying down debt. Residential lenders evaluate all these angles to determine whether you will receive a residential loan, so take your time and be prepared, Bryan R. Ziegenfuse advised.
Another helpful step is to get pre-approved for a residential loan, Bryan Ziegenfuse said. This is another way to be prepared and not get invested emotionally in a house you simply can’t afford right now. Pre-approvals let you know how much house you can afford and what interest rate you will pay on your residential loan. However, do not just go by the amount you are pre-approved for by residential lenders, Bryan R. Ziegenfuse cautioned. Know your budget and how much you can realistically afford so you do not end up living in a house that you are not able to pay for. Just because residential lenders tell you-you can afford to pay a certain amount does not mean it necessarily fits realistically into your lifestyle.
When it comes to residential lending, people can grow discouraged and disappointed if they are not approved for a loan right away, Bryan Ziegenfuse said. If this happens to you, it does not mean you will never own a home. There are ways to improve your chances of meeting the qualifications for a loan. Work toward goals that will help you buy your dream home, whether you need to improve your credit score, pay down debt, save up for a bigger down payment or find a higher paying job.
Bryan R. Ziegenfuse Helps Provide Positive Borrowing Experience to Philadelphia
I Fund Philly is a company that exists to “create the best borrowing experience in the market.” The company uses a true partnership approach to supply seamless funding and a streamlined process, according to Bryan R. Ziegenfuse, a managing partner of the company.
Many lenders make the process of borrowing money complicated or extremely lengthy and time-consuming. I Fund Philly believes in finding innovative solutions for quick turnaround time. Bryan Ziegenfuse, the managing partner, joined I Fund Philly in 2018 after a diversified 15-year career as an executive across the lending, capital markets, finance, and portfolio management disciplines.
Bryan R. Ziegenfuse said he believes strongly in the “real estate is local” approach that I Fund Philly takes to real estate loans. The company works within the community to better Philadelphia and provide opportunities to its residents.
How exactly does the I Fund Philly process work? The process is only four steps and leaves the borrower in control, said Bryan Ziegenfuse. The first step is to build your loan and select your rate, but the borrower is not alone in this process. Loan experts at I Fund Philly seek to understand the goals with the project and give options as they analyze the details. Next, a borrower must accept the terms for the project and pay an application fee. The third step is to complete the application, and finally, all that’s left is to close the deal.
During the process, I Fund Philly asks for a purchase agreement, property information, bank statements, experience, and information about the borrower and the property, according to Bryan R. Ziegenfuse.
Almost all of the employees at I Fund Philly have been involved in real estate investing at some point in their lives, so they understand the process and how to make it easier and less of a hassle. Because of this, they are empathetic to client needs and cognizant of the importance of simplifying the experience of real estate loans, said Bryan Ziegenfuse. The process is transparent, interest rates are competitive, and the customer service is second to none.
“We pride ourselves at I Fund Philly on having open communication, total transparency and providing the most pleasant and painless experience possible to our clients,” Bryan R. Ziegenfuse said.
The two loan programs used are the Developer Construction Program (Flip and Fix) and Stabilization Program (Traditional Bridge Loan). These programs are used for their speed and reliability. For more information on I Fund Philly and the services they provide, visit ifundphilly.com.
Brush Up Your Knowledge of Marketplace Lending With Bryan R. Ziegenfuse and Learn Why it May Come in Handy for You
Marketplace lending is when financial institutions other than banks match borrowers up with lenders. Marketplace lenders use technology to evaluate and process these loan requests, which saves time and streamlines the loan approval process, according to Bryan Ziegenfuse.
While banks lend deposits from their clients, marketplace lending platforms do not lend their own capital and they do not take deposits. Rather, they match up lenders and borrowers, then take a fee for their service of operating the platform. Marketplace lenders serve as an intermediary between lenders and borrowers, Bryan R. Ziegenfuseexplained.
Instead of working with a bank, marketplace lenders provide an alternate financial institution. “Banks are not able to serve all customers, whether that is customers who are having trouble obtaining a mortgage or money for a business,” Bryan Ziegenfuse said. “Marketplace lenders can provide better interest rates in some cases and fill in the gaps that banks are unable to.”
Marketplace lending has grown astronomically, though it is still relatively young. It is expected to hit $122 billion in loan origination volume by 2020. These numbers do not mean that marketplace lenders rival banks, but marketplace lending is increasing in popularity. In fact, marketplace lending is predicted to be a trillion-dollar industry in 10 years.
A key component of marketplace lending, Bryan Ziegenfuse said, is the use of technology to speed up the lending process. Marketplace lenders operate completely online, and the process is expedited additionally because there is less paperwork than with traditional banks. Getting started with taking out a loan takes only a few minutes for borrowers and the funding takes a few days at most. Therefore, marketplace lending has an appeal because the process is quick and typically quite painless.
According to Bryan R. Ziegenfuse, marketplace lending is an efficient process because borrowers and financial institutions are able to be matched according to whether they get value from each other. Borrows can then access products with fair prices and investors receive a competitive return financially, so everyone can benefit from this type of transaction.
“I look forward to seeing how marketplace lending will continue to develop and evolve as it becomes more popular and more people learn about how it can benefit them,” said Bryan Ziegenfuse.
Bryan R. Ziegenfuse is a managing partner of I Fund Philly and has had a diversified 15-year career as an executive across the lending, capital markets, finance and portfolio management disciplines.
Bryan Ziegenfuse Explains the Important Things to Understand About Lending
In real estate, buying a home is done through residential lending, while purchasing a commercial property, or business is called commercial lending. are very different.
“You don’t necessarily need to be an expert in commercial and residential lending, as long as you find someone trustworthy to advise you in the process and answer all your questions,” said Bryan Ziegenfuse, who has worked for decades across the lending, capital markets, finance, and portfolio management disciplines.
Bryan R. Ziegenfuse has led numerous corporate initiatives across risk management, capital preservation, customer experience, and asset management. He manages key government relationships for his company and has held titles such as Director of Restructuring, Senior Fixed Income Trader and Director of Finance.
Here are five things to understand about commercial and residential lending, according to Bryan Ziegenfuse.
- Residential loans deal with living space— like homes, condos, and apartments — while commercial loans are for commerce — like land, office space, retail space, and industrial space. “There are different processes involved with loans related to residential versus commercial properties, so it’s important to know which one you are in the market for,” Bryan R. Ziegenfuse said.
- When it comes to purchasing a home (residential), a mortgage lender is used. But when someone wants to buy a commercial property, a lending company that has expertise in that type of property should be used. Commercial lenders typically specialize in a particular area, such as land, office space, retail space, etc. “Capital sources and interest rates for different types of commercial property vary greatly, so it’s important to find a lender who specializes in what you are purchasing so they can analyze your property loan accurately,” Bryan Ziegenfuse said.
- With residential home loans, a 30-year term is a standard, though 15 and 40-year terms are also options. On the other hand, the risk is deemed to be greater with commercial loans than residential, so shorter terms are typical for commercial loans. A 10-year term is a standard.
- When it comes to a residential loan, the down payment is typically negotiable depending on the housing market, said Bryan Ziegenfuse. In some cases, a zero-down mortgage is possible if the borrower has good credit. But since commercial loans are considered riskier, a 20 percent down payment is the standard.
- Another differentiating factor between these types of loans is the potential penalty for prepayment, said Bryan R. Ziegenfuse. While a residential home loan can be paid off any time without a penalty, there are usually prepayment penalties that apply to commercial real estate loans, usually on a sliding scale.
The Ins and Outs You Need to Know about Real Estate Lending
In the real estate world, buying a home (residential lending) and a business buying a property (commercial lending) are very different. “The requirements and processes for purchasing commercially vs. residentially vary widely,” said Bryan Ziegenfuse, who has a decades-long career across the lending, capital markets, finance and portfolio management disciplines.
Bryan R. Ziegenfuse has led numerous corporate initiatives across risk management, capital preservation, customer experience and asset management. “There are several important distinctions between commercial and residential lending,” Bryan R. Ziegenfuse said. “If you’re only familiar with one, don’t assume going into another type of lending that the process or terminology will be the same.”
At its simplest, residential loans deal with living space— like homes, condos and apartments — while commercial loans are for commerce — like land, office space, retail space and industrial space.
One main difference between commercial and residential lending is who handles the process. To purchase a home (residential), a mortgage lender is used. But when someone wants to buy a commercial property, a lending company that has expertise in that type of property should be used. Commercial lenders typically specialize in a particular area, such as land, office space, retail space, etc. “Capital sources and interest rates for different types of commercial property vary greatly, so it’s important to find a lender who specializes in what you are purchasing so they can analyze your property loan accurately,” Bryan Ziegenfuse said.
Another difference is the length of repayment on the loan. With residential home loans, a 30-year term is the standard, though 15 and 40-year terms are also options. On the other hand, the risk is deemed to be greater with commercial loans than residential, so shorter terms are typical for commercial loans. A 10-year term is the standard.
The down payment required is yet another difference between commercial and residential loans. When it comes to a residential loan, the down payment is typically negotiable depending on the housing market, said Bryan Ziegenfuse. In some cases, a zero-down mortgage is possible if the borrower has good credit. But since commercial loans are considered riskier, a 20 percent down payment is the standard.
A final differentiating factor between these types of loans is the potential penalty for prepayment, said Bryan R. Ziegenfuse. While a residential home loan can be paid off any time without a penalty, there are usually prepayment penalties that apply to commercial real estate loans, usually on a sliding scale.
“At the end of the day, keep in mind that commercial real estate loans are considered riskier, so there are rules attached to that that don’t necessarily apply to residential loans,” said Bryan Ziegenfuse.