Whether you’re just entering the workforce and kick-starting your retirement savings or cruising toward the finish line and retirement bliss, making the wrong financial move could have a big impact on your future plans.
Just ask Sharon Marchisello. When she was in her twenties, she made a significant retirement savings mistake. She was a social worker for the state of Texas and resented the fact that part of her monthly paycheck went toward the state’s retirement fund. She thought retirement was too far off for her to worry about.
âI quit that job after only two years,” she says, “and since I was not yet vested in the plan, my retirement contributions were returned to me when I left. I promptly spent them on something else.”
That retirement savings mistake meant that Marchisello, now 64, would have to put away more money later in life for her retirement, since she didn’t benefit from compound interest growing her savings throughout her 20s. She was able to recover from that misstep by saving aggressively and consistently later on. She contributed 15 percent of her income to anÂ individual retirement account (IRA) each year and later maxed out all of her potential contributions to her company’s 401(k). Marchisello now blogs at Countdown to Financial Fitness to ensure others don’t fumble their retirement planning the way she didâwhether in their 20s or at any other age.
In order to help keep your retirement savings on track, review these common retirement savings mistakes to avoid by decade:
Your ‘get started’ 20s
Marchisello isn’t the only one to make a retirement savings mistake in her 20s. Ian Atkins, 32, an analyst and staff writer for the online publication Fit Small Business with experience in personal finance, also made some retirement planning mistakes. He thought saving for retirement was something people did once they checked off all the other things on the journey to becoming a financial “grown-up,” like buying a car and a home.
âThis meant that saving for retirement was dependent not on my income,” he says, âbut on some ever-shifting idea of what ‘grown-up’ would look like.”
Atkins ended up waiting until later in his 20s to start saving and thus, like Marchisello, missed out on the benefits of several years of compound interest had he started earlier. Compound interest is what happens when the interest earned on the amount you save starts earning its own interest. The more time you have to save your money, the more compound interest can boost your savings. Without the benefit of compound interest, Atkins had to save more, for longer, to make up for lost time.
This retirement planning mistake is something Marchisello sees all of the time among 20-somethings. Some, she believes, aren’t focused on saving for retirement because they are determined to pay off student loans and start a family first. While certainly important priorities for many at this point in life, so too is allowing as much time as possible for your retirement fund to grow.
âThe earlier you start, the easier it is to build a sizable nest egg,” she says.
Many millennials may not be signing up for their company’s 401(k) plans when they aren’t auto-enrolled, and some may not be contributing the recommended percentage of their income to the plan. Not contributing to your 401(k) in your twenties might also mean that you miss out on matching money from your employer. Many millennials may also not be fully taking advantage of their company’s matching contributions. Add this to your list of retirement savings mistakes to avoid. Why turn down matching money?
While you might feel older, wiser and more mature when you hit your 30s, you may still be making some retirement planning mistakes.
Atkins thinks the biggest retirement savings mistake made by people in their 30s is contributing just a small amount toward their retirement.
âThey think if they are making some contributions to a 401(k), they’re fine,” he says. But, depending on your retirement dreams and the amount that you’re contributing, that might not be enough.
To stay clear of this retirement savings mistake, Atkins suggests maxing out your 401(k) contributions. For the 2020 tax year, the IRS set a $19,500 maximum 401(k) contribution limit (those 50 and older are eligible for catch-up contributions of an additional $6,500). You can also consider looking into other savings vehicles that offer tax incentives. Those could include IRAs and a health savings account (HSA), which allow you to put away pre-tax money.
Another retirement savings mistake to avoid is being too conservative in your investment strategy in your 30s. Many people see this as a time when you can take more investment chances in order to benefit from the increased growth potential of riskier stocks.
âWhen you’re in your 30s,” Marchisello says, “you still have many years ahead to recover from market downturns.”
Your ‘get serious’ 40s and 50s
People in their 40s and 50s who have fallen behind on their retirement savings often make the retirement savings mistake of letting their worries get the best of them, Atkins says. Rather than starting early with a slow, consistent and reliable approach to saving for retirement, they become desperate to catch up. Like the hare that sprints to catch up to the tortoise at the end of the race after procrastinating for most of it, some may run out of time.
Marchisello agrees. âPeople in their 40s and 50s,” she says, âmight try to take shortcuts and invest too aggressively to make up for not having saved enough.”
But as you age, you have less time to correct for market downturns. So, if you use an aggressive strategy, you could risk losing savings without the chance for recovery. Instead, this is the period during which you might want to consider slowly shifting your assets into more conservative investments, Marchisello says.
Other retirement savings mistakes to avoid include going into too much debt, either by taking on student loans for children or an outsized mortgage, or taking money out of retirement accounts to pay for major expenses like children’s weddings, college, unexpected bills and renovations projects. This may trigger early withdrawal penalties and taxes and could diminish your retirement account’s value, even if you pay the amount back. That’s because you will have missed out, again, on the compound interest the money you withdrew might have earned.
âThis setback could erase much of their effort,” Marchisello says.
Your ‘now or never’ 60s
One of the biggest retirement savings mistakes to avoid in your 60s? Marchisello often sees people file for Social Security as soon as they’re eligible to start receiving retirement benefits at age 62.
âYou’re better off waiting until you reach full retirement age,” she says, âbecause your benefit checks will be larger. If you can wait until age 70, even better.” According to the Social Security Administration, in 2020, full retirement age for those born between 1943 and 1954 is 66.
Meanwhile, a common retirement savings mistake that Atkins sees people in their 60s make is not cutting back on their expenses as they get ready for retirement.
âAdjusting your living expenses to better align with your available savings,” says Atkins, “is not something that should be ignored.”
He suggests that you consider more drastic moves like downsizing to a smaller house or moving to a place with a lower cost of living. But, if you can’tâor don’t want toâdo that then it’s important to reduce other expenses. That might mean cutting back on travel, getting rid of a second car or decreasing how much you spend on dining out and entertainment.
âThe realization that you need to make changes in order to enjoy a comfortable retirement actually puts you ahead of most folks. Now itâs time for you to steadily build on that lead.â
You can recover from retirement planning mistakes
Even if you’ve made one or more retirement planning mistakes, it’s important to know that it’s not the end of the world. After all, Marchisello was able to recover from her missteps and now says she has enough to cover her daily expenses and any medical problems she may encounter. She’s also able to travel throughout her retirement.
If you do find yourself behind, Atkins believes you shouldn’t spend your time worrying.
âThe realization that you need to make changes in order to enjoy a comfortable retirement actually puts you ahead of most folks,” he says. âNow it’s time for you to steadily build on that lead.”
You can do that by starting to save immediately, or by putting a larger percentage of your salary in your retirement accounts.
“The goal isn’t to become the hare,” Atkins says. “It’s to become the tortoise as soon as possible.”
Articles may contain information from third-parties. The inclusion of such information does not imply an affiliation with the bank or bank sponsorship, endorsement, or verification regarding the third-party or information.
The post From Your 20s Through Your 60s: Retirement Savings Mistakes to Avoid appeared first on Discover Bank – Banking Topics Blog.
A recent Q & A we had with Adam Segal, CEO + Founder of Washington D.C. based Cove offers a picture window into the future of business. What was intended to be a real estate technology informative, turned out to be a glimpse of what the post-COVID world of real estate may look like. Initially focused on creating a network of co-working spaces to foster efficiency and productivity in the digital age, Segalâs companyâs ship may have just arrived in the form of a world cataclysm.Â
The coronavirus pandemic is forcing a paradigm shift for every business and institution on Earth. The world is turned upsidedown, and the only sure thing people can cling to, for the moment, is uncertainty. The daily grind, the 9-5, in contrast to the homogenization of the digital and the physical world, is creating catastrophes and vast opportunities for the future. And Cove sits smack in the middle of what most experts think will be the transition of transitions not just in real estate, but for business in general. I exchanged emails with the Cove CEO this past week, since catching up with him via phone proved impossible. Hereâs the brief interview, followed by some takeaway points.
RealtyBiz: How do you see commercial property marketing shaping up in the post-COVID era?
Adam Segal: At Cove, we believe commercial real estate will still have a place in a post-COVID era. In fact, it will transform from a place for your dedicated desk into an absolute key business resource to define culture and engagement. Traditionally, there has been a strong emphasis on your everyday desk or office. Moving forward, companies will consider where and how people are most productive, thereby enabling employees greater flexibility to choose when and where they work. The office will morph into a place to come together as opposed to being the required 9-5, everyday solution. For employees, this is an incredibly exciting future â as soon as you are no longer tied to a single desk or office, you have the freedom to design your life without your employerâs office location and long commutes as the deciding factor. At Cove, we provide the technology and service to support that future world for companies, while empowering office building owners a partner to create modern experiences integral to the future of work.
RealtyBiz: Some experts see the negative pricing trend for commercial property continuing to spiral downward. What is your view on this trend, and how can owners/developers prepare?
Adam Segal: When there is an increase in demand, differentiation becomes the absolute key. For those assets that are able to capture the future of work and unlock a differentiated experience, there will not be a downward spiral â in fact, just the opposite.
RealtyBiz: How do you see your business at Cove changing to address this new landscape?
Adam Segal: Cove implements a modern consumer approach to the future of work for companies and owners of office buildings. Our focus is on building an experience around the office by building robust tools to bring everything online â from scheduling and coordinating your team to reduce capacity, unlocking onsite services and delivery, real-time updates â really a gateway to a modern work experience. The post-pandemic office will look nothing like the office of yesterday. In the future, the office will no longer be a home for your desk. Instead, the office will be a resource to bring people together for meaningful engagement. As a result, every company will need more intentional and coordinated office days for collaboration. The future of work for any company will include a mix of working remotely, in office, on travel â but now a real focus on productivity as opposed to a default 9-5, Monday through Friday culture.
According to Crunchbase, Cove is funded by Early Light Ventures. My takeaway on their investment, given the current state of transformation in business, is that those investors are smiling great big about now. $8.4 million in total funding could well turn into 100 times that figure. Here’s why.
Whatever benefits the remote office had before COVID-19, those benefits have been multiplied by 10,000 now. Furthermore, whichever businesses chose to optimize their buildings using Cove services before the pandemic, those clients are the leading edge of what physical office space will be in the future. Think about the whole situation like this. Once corporations and smaller entities make the adjustments for distancing, access assurance, safety measures, and added efficiency, how many do you think will switch back to business as usual? I should not have to spell out Cove’s potential here. From custom virtual events to building access management, Cove had a finger on the pulse of office buildings to start with. The next generation of office space will be all about remote work and managing a new kind of physical space. Who better to help transform the work at home corporate synergy? So, Cove has one of those rare opportunities brought about by the cosmos.
The post The Commercial Space Post-COVID – With Cove CEO Adam Segal appeared first on RealtyBizNews: Real Estate News.
The numbers:Â Sales of new single-family homes fell in September, but the housing market remains poised to buck seasonal trends nonetheless.
New home sales occurred at a seasonally-adjusted, annual rate of 959,000, the U.S. Census BureauÂ reported Monday. That represents a 3.5% drop from an downwardly-revised pace of 994,000 homes in August. Compared with last year, new home sales are up 32%.
Last month, the government had reported that new-home sales had exceeded an annual rate of 1 million for the first time since 2006. The government uses a small sample size to produce the new-home sales report, which makes it prone to significant revisions like this.
Economists polled by MarketWatch had expected home sales to increase to a median pace of 1.033 million.
What happened:Â New home sales fell a staggering 28.9% in the Northeast, followed by much smaller declines in the Midwest and the South. Comparatively, the West was the only region to experience an increase in sales with a 3.8% jump.
The decline in September aside, year-to-date new home sales are running nearly 17% ahead of the pace set by this time last year.
The median sales price in July was $326,800, up from Augustâs median price. The inventory of new homes was 284,000, representing a 3.6-month supply at the current pace of sales. A 6-month supply is considered the benchmark for a balanced market.
The big picture:Â Although most economists anticipated sales to rise in September, that is an incredibly rare occurrence. An analysis of past sales data by Regions Financial Corp. chief economist Richard Moody found that since the government began tracking this data in 1963, new home sales have only increased between August and September on four occasions.
The number of homes sold but not yet started was up in September from the previous month, a sign that builders are struggling to keep pace with the demand for homes. The monthly decline aside, low mortgage rates continue to fuel demand among buyers. And with the inventory of existing homes for saleÂ dropping to record lows, many buyers will be forced to turn to the market for newly-constructed properties.
By that same token, though, interest rates could come to represent a headwind for the market, Moody said. âDespite the recent strength of sales, affordability is a growing concern, even more so should mortgage interest rates follow yields on longer-term Treasuries higher,â Moody wrote in a research note.
The post New Home Sales Dip Slightly in September, but Remain Strong Going Into Fall appeared first on Real Estate News & Insights | realtor.comÂ®.
For this podcast about commercial lending I sat down with Angie Hoffman at U.S. Bank. During the podcast we discussed investing in real estate, commercial lending, and how commerceial mortgages can help investors. If you want to learn more about commercial loans this is a great pdocast for you.
I hope you enjoy the podcast and find it informative. Please consider sharing with those who also may benefit. Listen via YouTube: You can connect with Angie on LinkedIn. You can reach out to Angie for more information on their lending products by emailing her at email@example.com.
You can connect with me on Facebook, Pinterest, Twitter, LinkedIn, YouTube and Instagram.
About the author: The above article “Podcast #12: Hard Money Lending” was provided by Luxury Real Estate Specialist Paul Sian. Paul can be reached at paul@CinciNKYRealEstate.com or by phone at 513-560-8002. If you’re thinking of selling or buying your investment or commercial business property I would love to share my marketing knowledge and expertise to help you. Contact me today!
I work in the following Greater Cincinnati, OH and Northern KY areas: Alexandria, Amberly, Amelia, Anderson Township, Cincinnati, Batavia, Blue Ash, Covington, Edgewood, Florence, Fort Mitchell, Fort Thomas, Hebron, Hyde Park, Indian Hill, Kenwood, Madeira, Mariemont, Milford, Montgomery, Mt. Washington, Newport, Newtown, Norwood, Taylor Mill, Terrace Park, Union Township, and Villa Hills.
Commercial Lending Podcast
Paul Sian: Hello everybody. This is Paul Sian, Realtor with United Real Estate Home Connections, licensed in the State of Ohio and Kentucky. With me today is Angie Hoffman with US Bank. Angie how are you today?
Angie Hoffman: I’m doing great Paul. How are you?
Paul Sian: Great. Thank you for being on my podcast. We’re gonna start off. Today’s topic is ‘Commercial Lending’. Angie is a commercial lender with US Bank, as I mentioned. Angie, why don’t you tell us a little bit by your background. What you do with the US bank, and how did you get started in that field?
Angie Hoffman: Sure. So, I am a Cincinnati resident, have been my entire life. Was previously with a company called the ‘Conner group’, which is located out of Dayton, Ohio. They’re a private investment real estate firm. I was with him for about five plus years, just learned a ton of information, really loved the financing portion of their group. So, that turned me to the banking portion, which I ended up going with US Bank just because of the knowledge and the breadth of what they can do as well. Just the culture within US Bank has been phenomenal. I’ve actually been with us Bank now for five years; in the last three years I’ve been within the commercial real estate side as well as the business banking side.
Paul Sian: Okay. Your primary focus is commercial loans.
Angie Hoffman: Correct. Yes, both investment real estate as well as owner-occupied and small to medium businesses.
Paul Sian: Okay. The investment side, I represent a lot of buyers of multifamily. I know with the form below we do, the conventional space generally, and then when you’re in the five units and above. You go into the commercial space, which is your space. I have also heard it being covered with mixed-use buildings, industrial properties, is there something else that commercial loans would cover?
Angie Hoffman: Correct. I mean it can really be quite an array of properties, office is one that we see pretty often, and can tend to be either hot in certain areas, whether it’s office Class B or Office Class A. Retail strip centers, we’ll look at Triple Net properties, and absolute not properties. We are very popular, if you’re looking at diversifying a multi-family portfolio and adding in some triple net properties. We also do, obviously owner-occupied properties too. When you have that small business or medium business owner who wants to own their own real estate. We do that as well, and that’s again part of what my position entails, and then we will also look at portfolios will do single-family homes.
I’m actually working with somebody now who has a portfolio of several single-family homes, that were looking to kind of restructure and refinance for him. We can even utilize current equity and properties to purchase additional properties to help you grow your portfolio. We do try to have a full understanding of your portfolio or a full understanding of what your strategy is. How partner with you, as you continue to grow that portfolio short- and long-term goals.
Paul Sian: For our listeners, who don’t know. What Triple Net means, do you mind explaining that.
Angie Hoffman: Sure. So, Triple Net is gonna tend to be your properties that have the tenant itself is paying the taxes, the insurance, you may have some pretty minimal depending upon the property, responsibilities that are usually restricted to the exterior of the building. It may be like a roof or a parking lot. Type of maintenance but generally speaking the great thing about the triple net is that for some clients, it’s a property that you can basically own, and you have to do pretty much nothing with. So, you’re gaining that income without having to do a very minimal type of responsibility or maintenance.
The downfall of that is that typically they’re gonna be somebody, who is gonna be a longer-term lease, which is great. However, you still have the issue that it’s a bigger square footage generally. So, five, ten, twenty thousand plus square feet. If you lose a tenant obviously, that can be very impactful. It just depends upon your, again your focus of your portfolio, and if you want to add in that. But it can be great opportunity, but tends to again be a little bit less of a return. Because of the minimal responsibilities.
Paul Sian: Going back to single family. That is similar, I am using the same term your bank use but to ‘wrap mortgage’. Is that what you use for single families?
Angie Hoffman: We do have the ability, from the perspective of what you say wrap mortgage. We’re typically calling that like an umbrella, if you’re grouping all, let’s call it, if there’s ten single family homes. You’re grouping this all into one, it lies together. We have the ability to do that depending again on the structure that the client is looking for.
We also have the ability to separate out those facilities, and do a simultaneous closing for each one of them to have them separated out from each other. Obviously, there’s some contingencies but that the properties itself have to be able to cash flow by themselves, things along those lines that we would underwrite to. But we do have ability to look at it from both perspectives.
Paul Sian: Okay. The biggest advantage of that if someone has reached the maximum ten convention mortgage loanlimit. They can step into your space there and you could cover them, and they can either restart that or. With something like that, let’s say somebody does get ten properties, and are they able to finance in additional properties into that same loan or is that has to re-finance each time?
Angie Hoffman: No. We would be able to add in. I mean, if you’re asking like if they want to refinance these properties, and they’re also looking to maybe either use some of the equity in them or they’re also buying at the same time. We can do all of that together, so that’s not an issue at all.
Paul Sian: Let’s say to somebody new coming to investment. What is the typical down payment on commercial loans? That are looking to buy in the mixed-use space or multifamily space?
Angie Hoffman: So, generally speaking. We’ll go up to 80% loan-to-value. The biggest factor within that is gonna be how much the capability of the property to hold that debt. We’re gonna have, we have a pretty. I don’t want to say complex but we do have multiple factors that go within our cash flow, and net operating, income calculation, that we’re gonna want to see. It balanced to a certain point for it to be able to hold the debt at an 80% loan to value. Again, we tend to partner with our clients. I have several clients who will send me properties on a daily basis, that they’re interested in. We will let them know what the debt capacity would be on that property.
Paul Sian: Okay. Income from the rents per sale, let’s say, something’s got a ten-unit building. Then you’re looking at the rents that are coming in. You’re also considering the buyers income level, income to debt ratio, all that as well.
Angie Hoffman: Yes. When I talk about the capacity, the debt for the property is being the one of the first things we look at is. In order to get to that 80% LTV, if you’re looking at the actual depth, they’re wanting the property to take on. Compared to other rent they’re taking in and the expenses, as well as some vacancy factors, things like that. That’s what we’re looking at to have a certain ratio, then on top of that. When we get to the next step would be look at the client globally, and their personal debt to income, and that factor too.
Paul Sian: Looking at that commercial mortgages, can buyer use the mortgage to upgrade property, to build in some equity in the property. Does the building of the equity get taken into account, and do you have a loan that allows them to do that?
Angie Hoffman: That question is kind of twofold. If you have a property, let’s say, it’s multiple unit, and you’re continuing to kind of do some improvements and renovations. If the property has the equity, we can look at small lines of credit to help with that renovation cost. Then once everything’s complete to be able to wrap that together. If you’re looking at a property that’s completely distressed, and doesn’t have any type of income. Then that’s gonna be something that generally we’re gonna have a harder time with. Because it’s a speculative type of scenario, and we want to typically see the actual income.
Paul Sian: How about converting something, I am interested in buying warehouse, either in retail space or multifamily. Do you offer products for that, or is that a similar situation when you’re looking at the risk as being a little high?
Angie Hoffman: Yes. So, that is gonna be a similar situation. Once the actual project would be completed again from a speculative standpoint, it just it becomes a little bit more difficult from a risk perspective. However, we’ve been in scenarios where we’ve worked with clients and partnered clients, people we know who work in that space more than we do. We can look to, guide them to what we would look at if we wanted to refinance that once it was completed, and there were leases in place.
Paul Sian: Okay. So, that is one of the benefits working with a big bank like US bank, is you can reach across departments there, and tap other resources within your organization.
Angie Hoffman: Even if it’s within the organization, we have other resources whether it’s our private wealth or wealth group, have some capabilities that are different than what we have as well as from a CUI or network basis. It may be somebody just within my network that I know works within that space to introduce that way and hopefully can get that client taken care of.
Paul Sian: Are you able to comment on the underwriting process of commercial loans compared to residential. Is there a big difference in that process?
Angie Hoffman: So, yes and no. I know we touch on it already a little bit. One of the biggest differences is obviously we’re gonna look at the actual collateral in a very different way, especially on the investment real estate side. When you’re looking at investment real estate, the factors that the net operating income as well as the cash flow of the property become factors. Whereas, when you’re buying a home, obviously it’s a lot more about the loan to value of the property. However on the other side of that, if we are looking at a property that’s gonna be owner occupied by a small to medium business. It becomes a lot more about the loan-to-value as well. So, it can depend upon the situation.
Paul Sian: Okay. How important is the person’s experience when they come to loan, get a loan for you. If it’s a new first-time investor looking at multi families versus somebody who’s already got five to ten units and then either self-managing or running it for a couple years.
Angie Hoffman: I mean, generally speaking, if you have somebody brand new, one of the biggest things is if you’re not familiar in the scope. You don’t have experience, you gonna be partnering potentially with a property management company or somebody else who is maybe a partnership within the LLC or the property that you’re buying that has the experience. Just being able to show you may not have previous experience in this but you are partnering with a property management company that has historical success in these properties. You’re partnering with somebody, for instance, who has historical success in the properties.
Paul Sian: So, yeah boils down to your team then. What you’re bringing to the team. What kind of document requirements are there to start a commercial loan process with US bank?
Angie Hoffman: Generally speaking, in every situation is different, every request is different, client is different. But it’s typically going to be two to three years of taxes, personal and business, personal financial statements pretty standard as well. If it’s a purchase, we’re gonna want to see a purchase agreement or understand the purchase agreement as well. As you’re gonna want to have financials whether it’s profit loss or the rent rolls preferably a Schedule E or 8852 from the client. Showing what the historical trends of that property of have been. That’s where we really try and partner with our clients of understanding their portfolios, understanding what purchase they’re trying to make. So, that, does it fit, and is there anything we see because we see them on a very regular basis that. Maybe we need to discuss or let the client know that we are suggesting maybe prying a little bit more information.
Paul Sian: How important is ones credit score when they come to apply for loan with you?
Angie Hoffman: It is a factor, I mean. In any type of just like the traditional mortgage, it is gonna be a factor. But there are so many different factors that, it’s only one of many.
Paul Sian: One of the important things when it comes to purchasing real estate is I always tell the buyers that have a pre-approval letter ready. Is there something similar in the commercial loans place? A pre-approval letter, pre-qualification letter. Just something that says, somebody sat down with you, they started the initial process. They’ve got access to certain amount that they can borrow to purchase this property. Do you have something like that?
Angie Hoffman: We do. So, on the commercial side it’s gonna be called a letter of interest, and it basically lays out that we are working with a client. We have a price range or up to a price range that we’re looking for with the client, and depending upon the collateral. We are looking to work with him on the financing, again depending upon what the collateral is, and then we also have once we’ve actually maybe gone through a more official process of underwriting and submitted an actual financial package. We do have, depending again on what the financing contingency is for that client.
We do have a letter of commitment, which lays out that there is an approval but it goes through all of the conditions as well like your appraisal certain things like that, that we’re gonna have to clear.
Paul Sian: Okay. How long does that process take? If you are writing an offer today for a client, and then usually you have to write in how many days we’re gonna close in. 30 days, 40 to 45 days. I know conventional, it’s usually a little quicker, a little easier. So, we can do it in 30 days or so. I mean, what would you recommend for a commercial loan?
Angie Hoffman: I think 45 days is very practical. One of the biggest things that I always talk about with my clients is that 45 days really is incumbent of me having a full financial package, meaning those two years of tax returns. The financials, I spoke about from the client that you’re purchasing, and or if you’re refinancing. To me, having that full financial package is really the key and then, again from there it’s gonna be some of the factors of the appraisal as well as the title work that would go along with it. But generally speaking, 45 days to close is pretty.
Paul Sian: Reasonable.
Angie Hoffman: Yes.
Paul Sian: You mentioned the documents that was my blog article documents for the conventional mortgage process. You mentioned W2s, 1040, tax returns, that is pretty similar the document requirements for commercial loans that it is for residential space?
Angie Hoffman: Yes. It’s very similar. With the PFS is gonna be one of the biggest as well as the two years of tax returns. Potentially three years depending upon, again the request size. Like you said, I mean, if they’re a W2 income type of employee, then we may need additional pay stubs. like I said, for any client, it could be very different depending again on what their history is. If they’re a business owner, then we may mean some more details but generally speaking, again it would be two to three years of personal business has returns, personal financial statement, and potentially obviously purchase agreement or additional documentation from that side.
Paul Sian: Okay. When it comes to partnership, people coming together, those documents from everybody. Correct?
Angie Hoffman: Correct. So, depending on what the ownership structure is. Generally, if somebody’s over 20% ownership within the property, then we’re going to need that financial information from them as well.
Paul Sian: Okay. I know with the conventional space. Lending into an LLC is generally impossible. Most lenders will not allow conventional borrowers to use an LLC. How does that work on the commercial side?
Angie Hoffman: The vast majority of the lending that I do is going to be through an LLC in a holding company. The clients are still a personal guarantor but the lending itself in the title is all within the LLC.
Paul Sian: Is it a requirement in LLC or is it an option for the buyer?
Angie Hoffman: It’s an option. I mean, one that again depending from an attorney’s perspective, if you’re talking about liability. It may be a best-case scenario to have an LLC with that property. But we always reference stuff talk to your attorney about what makes sense for you.
Paul Sian: How much, do you have any minimum loan requirements and your maximum loan requirement?
Angie Hoffman: Up to ten million on the investment real estate side, and then once it’s beyond that, we do have a commercial group that we would work with a real estate group as well as our middle marker group that would potentially be involved. As far as minimum typically, again if it’s under 2,50,000. It’s still something that we would do. It just, we pull in a different partner to work with us on that too, because it kind of goes into a little bit different of a space.
Paul Sian: Is there, under 250,000$ or is there a lower minimum. I know some conventional lenders won’t touch anything fifty thousand and under.
Angie Hoffman: It’s pretty common. Yes, under fifty thousand is gonna be a little bit more difficult.
Paul Sian: 50,000 to 2,50,000, and above that.
Angie Hoffman: But keep in mind too. I mean, if you have properties itself. It may be again, you see this more with the single-family home portfolios. You may have multiple properties that are under fifty thousand. But we’re looking at the entirety of the portfolio, makes a little bit different of a scenario. I would caution that anything that somebody is looking at from the perspective of either total lending amount or even individual property. We’re happy to take a look at it, have an understanding of what you’re looking to do, and if for some reason it’s not something that is in our world necessarily. Again, from an internal and external standpoint. We typically have somebody who I can contact.
Paul Sian: Discussing interest rates from general perspective, everybody’s situation is different and unique. But in terms of paying more, having a lower LTV, 60% LTV rather than 80%. People get themselves a better interest rate or is it generally, can we same and more just depending on credit and history.
Angie Hoffman: So, from an interest rate standpoint, the commercial side is a little bit different. Then maybe the mortgage or lines of credit side, then you then you generally see. Ours is based off of what banks cost the funds are, and then there is a spread that is on top of that. That’s where you get the percent from. Right now, cost of funds are pretty minimal. So, interest rates are extremely competitive. But from that perspective, it doesn’t necessarily factor in the actual loan it saw or the guarantor itself or the property itself.
Paul Sian: So, there’s some risk-based consideration towards interest rates. I guess a little higher risk project is that something you would price a little higher in the interest rate or generally that it’s not considered as much?
Angie Hoffman: No. That’s not considered as much, generally.
Paul Sian: Okay. Great. That’s all the questions I have for you today Angie. Did you have any final thoughts to share with the group?
Angie Hoffman: Sure. One thing I would say is if anybody has any questions about property specific, cash flow, if this property may fit into their portfolio or something that we would look to land up to 80%.I’m happy to partner with anybody on that side as well, and be resource for them. On top of that, I did want to mention that obviously US Bank is across the country. That gives us the ability even, if I’m your contact in Cincinnati to lend out-of-state borrowers.
I’ve worked with quite a few clients obviously from California that are buying in Cincinnati as well Chicago. So, those are people that I’ve worked with quite frequently as well.
Paul Sian: That is perfect. I’ve got a number of out of state clients to. That is one of the biggest challenges that I’ve faced with some local lenders is that they don’t lend to out of state. That’s a great ability to have.
Angie Hoffman: So, the key with in that too is just as I want to mention too. I mean, anytime that scenario comes up. We are happy to discuss it. One of the biggest factors with out-of-state lenders is that we do look for them to be within US bank footprint. So, we are very much on the west coast and Portland, all of those areas. If they’re somewhere you’re not familiar, if we’re within that area, please reach out. Let me know, and I’m happy to take a look.
Paul Sian: Great. Thank you again. I will leave your contact information on my blog post once it gets published live. Thanks again for being on the podcast.
Angie Hoffman: Thanks for having me.
Are you thinking about becoming a cosigner for someone? Have you ever been asked to cosign on a loan before?
Many people have been asked to cosign loans for family members and even friends. However, many people do not understand the full cosigner meaning, and becoming a cosigner is never something you should do unless you completely understand what it means.
If someone asks you to cosign a loan for them, you might be hesitant to say yes at first. You also might not want to offend the person or make them mad.
Whatever you may be thinking, I want you to fully understand what you are getting yourself into.
Becoming a cosigner can actually turn into a big financial mistake if you do it without really thinking it through.
Okay, now some of you may think that I’m a mean person for saying that, but I’ve heard many stories from people who’ve had their credit wrecked, have been stuck paying a loan for someone else, and even had their relationships ruined.
All of that from cosigning a loan.
Perhaps you have cosigned before and it went fine, or you know a friend of a friend who has done it. Perhaps you think that things won’t go bad for you or that you are hurting the person by not cosigning for them.
But, I want you to be careful before becoming a cosigner. I’m saying this to help you!
No matter how well you think you know someone, mixing money and relationships can change things. What you may have thought was a wonderful friendship or family relationship can turn into a nightmare.
It may seem very innocent – you’re just helping a good friend or relative get a loan.
Really, if it was that simple, I’d tell everyone to do it. But, becoming a cosigner is a major financial decision that you need to seriously think about before agreeing to.
Before you cosign a mortgage or another type of loan for someone, it is always wise to be 100% positive of what cosigning a loan actually means and how it may affect your relationship with the person getting the loan.
Surprisingly, many people don’t know exactly what happens when they agree to being a cosigner. Many people just think that all you’re doing is helping a person get approved, but that’s not just it.
Sorry to break it to you, but the bank, landlord, etc., does not care if the applicant has a friend with a good credit history.
There’s more that comes with being a cosigner.
As the cosigner, what’s actually happening is that you are taking on the full responsibility of the debt if the original applicant is unable to pay.
And, that happens more often than you might think.
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According to a survey I found on CreditCards.com, 38% of cosigners had to pay some or all of a loan that they cosigned for because the primary borrower failed to pay. This is a HUGE percentage of cosigners, so please keep that in mind.
Other statistics I found about becoming a cosigner include:
28% of cosigners saw a drop in their credit score because the person that they cosigned on a loan for paid their loan late or skipped a payment.
26% of cosigners said that cosigning damaged the relationship with the person that they cosigned a loan for.
90% of private student loan borrowers who applied for cosigner release were rejected. So, if you think that you are going to cosign for a loan and then remove yourself from the loan later, that is much more difficult than you probably think. Stat from Consumer Financial Protection Bureau)
So, who is finding cosigners for loans?
According to the survey mentioned above, 45% of cosigners are cosigning for their child or stepchild. And 21% of cosigners are cosigning for a friend.
The rest is a mixture of cosigning for spouses/partners and parents.
Today, I am going to answer common questions about becoming a cosigner for a loan.
What to know about becoming a cosigner.
What is a cosigner?
If you’ve been asked to become a cosigner on a loan, you may not know what that fully entails.
A cosigner is someone who agrees to be on a loan with another person so that they are more likely to be approved.
A cosigner may be needed for different things such as a:
Apartment or other type of rental home
Here’s an example of when someone may want a cosigner: if your child wants to buy a car but doesn’t have a long enough credit history to be approved for the car loan. Your child may ask you to cosign their loan so the lender takes your credit score and financial information into account. This improves your child’s chances of being approved.
Other reasons you might be asked to be a cosigner is if the borrower doesn’t have a high enough credit score or doesn’t make enough money to pay the loan (that is a red flag right there).
However, as a cosigner, you are agreeing to pay off the debt if the original borrower is unable to pay it in the future. So, even if the original borrower doesn’t pay a penny, the cosigner would have to make all of the payments or risk being sued, having credit report damage, and more.
In that example I gave, the parent would be responsible for the car loan if their child could no longer make their payments. Not only that, if the child for some reason refused to make payments (I’ve heard of situations like this), the parent would be responsible.
Remember, like I stated above, 38% of cosigners had to pay some or all of a loan that they cosigned for because the primary borrower failed to pay.
And in some circumstances, even if the borrower files bankruptcy, while their other loans might be discharged, the cosigner may still be responsible for paying the cosigned loan.
Related: Everything You Need To Know About How To Build Your Credit Score
How does a co signer work?
Here’s what happens when you agree to become a cosigner for a friend or family member.
You will start by giving your personal information to the bank or lender. This is information like bank statements, tax returns, paycheck stubs, and so on.
You will also have to complete the loan application, and once you agree with all of the loan terms, then you sign it.
But, becoming a cosigner doesn’t mean that you will own or have partial ownership of the vehicle, house, or whatever else you are cosigning for. It does mean that you are taking full financial responsibility and promising to pay the loan yourself if the borrower does not pay.
Becoming a cosigner is nothing to take lightly.
Does cosigning hurt your credit? Is it bad to be a cosigner?
Becoming a cosigner can hurt your credit score and prevent you from future loans in some circumstances.
If the person doesn’t pay the monthly payments on time, then you may be rejected for a loan in the future. Missed payments can damage your credit score and your credit report.
As a cosigner, you are increasing your debt-to-income ratio. So, even if your friend/family member pays every single bill on time, a lender will still see this as YOUR debt. Unfortunately, this may prevent them from approving your loan because they will think you have too much debt on your plate.
If you might be buying something soon that will need financing (house, car, etc.), you should think long and hard before you decide to be a cosigner on someone else’s loan.
Can cosigning a loan hurt a relationship?
Unfortunately, many cosigning relationships go sour.
I have heard many stories where someone cosigned a loan for someone else and then didn’t talk to them for years or even decades because of a falling out of some sort.
I have always been a firm believer that money and relationships do not mix well.
If you are going to cosign or lend money to someone, then you should consider it a gift because there is a chance that you will never see that money again.
Can you remove yourself from a loan as a cosigner?
Remember the statistic above – 90% of private student loan borrowers who applied for cosigner release were rejected.
There’s not much you can do to remove yourself from a loan that you cosigned on. If the person isn’t making payments, you are stuck with it for the most part.
The loan would have to be refinanced to take yourself off the loan, and there are many horror stories out there where the original borrower refused to refinance because then they wouldn’t be able to force the cosigner to continue to pay the monthly bill.
Plus, there are instances in which refinancing is impossible because of the value decreasing, the economy changing, a person’s financial situation getting worse, and so on.
So, while the original borrower may be okay with getting you off of the loan and refinancing, it’s still up to the lender whether or not they will refinance the loan.
How do I protect myself as a cosigner?
There is no guarantee that becoming a cosigner is going to work out, but if you’re determined to do it, you will want to know both of these two things for sure:
That you can trust the person you are cosigning for.
That YOU can make the payment.
Many people who are thinking about becoming a cosigner may not think about that last one, but it is just as important as the first one. Being stuck with the loan payment would be awful, but not being able to make the payment could cause you to go into serious debt and destroy your credit.
You may be certain you won’t be stuck making the payment, but you don’t want to be stuck in a bad financial situation.
Should I cosign a loan?
Even though those cosigning horror stories are real cautionary tales, most people don’t believe they would ever happen to them.
However, don’t you think most (if not all) cosigners felt the same way in the beginning?
It’s up to each person to decide if they will cosign, and you should never feel forced to do it. However, I want you to remember that if you cosign, then you should make sure that you can afford to make the monthly payment.
You never know, one day those payments are being made and everything is going well. The original borrower may be a great person, but then they may lose their job, have an unexpected expense come up, or something else that prevents them from paying their bills.
Then, what if something happens to you and you can’t make those payments either? Unfortunately, being unprepared and not really knowing what you are getting into can turn into a disastrous situation.
Cosigning a loan may not always be bad. However, I believe it’s better to realize what the consequences are before going into something that can negatively impact your life. It’s always better to be prepared!
Is it a bad idea to cosign for someone?
Cosigning a loan doesn’t always have to be a bad thing.
However, I want you to remember that there is a chance that you will be on the hook for the loan.
So, if you cosign, whether that be for a car, mortgage, apartment, student loan, or something else, you should make sure that you can afford the payment as well. Because, there is a chance that you may have to pay it one day.
Everyone has a different situation, and ultimately, you have to do what’s right for you.
What do you think of becoming a cosigner for a mortgage or other type of loan? Would you ever do it?
The post Hereâs What You Need To Know About Becoming A Cosigner appeared first on Making Sense Of Cents.
The idea behind FIRE is if you can earn more money, live on less, and save and invest the rest, you can cut years â or even decades â off of your working career. Of course, the FIRE movement has its problems.
Not everyone can save 50% or more of their income to work toward FIRE. And most who retire early continue working in some capacity to avoid running out of money early. Also, achieving FIRE is considerably easier during times of economic prosperity â no matter what anyone says, it wouldâve been a lot harder to get excited about FIRE in 2008 when the Dow dropped by 33.84%!
Iâve learned that there are benefits to cutting expenses, saving money, and investing more. Some advantages to FIRE donât even have anything to do with money at all.
Achieving FIRE and retiring early sounds good in theory, but itâs actually very hard to execute in a real-world sense. But hereâs why you should try anyway.
6 Reasons FIRE Still Works
But, you know what? I would argue that anyone who can, should at least try to pursue FIRE anyway. As Iâve become more interested in financial independence, Iâve learned that there are side benefits to cutting expenses and learning to save money and invest more. Some advantages to FIRE donât even have anything to do with money at all.
If youâre on the fence about FIRE, here are some of the reasons you might want to change your way of thinking and get on board.
1. Encourages Living With Intention
After reading Michael Hyattâs book, Living Forward, its concept of âdriftingâ stuck with me. Drifting occurs any time youâre going through the motions in life, but living without any concrete plans or goals.
Maybe youâre going to work every day, taking care of your kids, and keeping up with bills. But in these day-to-day tasks, youâre not actively achieving anything in particular.
Youâre just waking up and getting by.
With the FIRE movement though, you learn to live with intentionality because youâre forced to focus on your spending, and the specific goals necessary to reach financial independence.
As you pursue FIRE, you canât simply drift through life in hopes that the numbers work out in your favor. To have enough money to retire early, you need a plan. You have no choice but to set goals, and the act of doing so forces you to get real about how youâre living and what you really want in life.
Are you saving to buy a house? Are you saving to pay for college? Are you saving to retire early? Whatever your goals are, FIRE forces you to reverse engineer your long-term plan so itâs actionable and intentional today.
2. Feels More Financially Secure
Hereâs another potential side benefit of pursuing FIRE â you get the opportunity to feel more secure and sleep better at night. This is something I personally experienced when I started becoming FIRE-minded, but itâs also backed up by research.
In fact, a 2019 survey from Schwab showed that 63% of people with a written financial plan said they felt financially stable, compared to only 28% of those without a financial plan. Further, 56% of people with a financial plan said they felt âvery confidentâ about reaching their financial goals.
If youâve ever felt helpless about your finances before, then this probably makes total sense. Having a plan provides some comfort â even if you are far away from your goal. At least youâre working toward something, and that provides peace of mind.
3. Forces You to Take Control
I donât always agree with everything Dave Ramsey says, but I do love some of his best quotes. One example is:
âYou must gain control over your money or the lack of it will forever control you.â â Dave Ramsey
The point Iâm making is that, if you donât ask yourself important, uncomfortable questions, you might never get control of your finances â or your life.
Think about it this way. If youâre drifting through life and spending money without really saving for a goal, youâre at the mercy of your job and outside factors that affect your income and savings. But if you learn to take control of your spending, youâll also learn to take control of your future finances in ways you probably never realized before.
When most people start pursuing FIRE, they realize right away that the biggest part thatâs in their control is their spending. The other side of that coin is, of course, how much youâre able to save.
A recent survey from the Federal Reserve Bank of St. Louis shows the average American set aside 5% to 8% of their income in savings. In contrast, those who pursue FIRE, frequently save 50% to 70% of their incomes toward their goals.
When you find a way to save a large percentage of your income, this means youâve taken control of the reins. You have goals and you have a purpose, and your money is no longer controlling your future. You are.
4. Empowers You with Information
According to a joint study from PwC US and the Global Financial Literacy Excellence Center (GFLEC) at the George Washington University, only 24% of millennials demonstrate basic financial literacy. And, even with minimal knowledge of their own, only 27% had sought out professional financial advice.
This is one area where even studying FIRE can leave you dramatically ahead. After all, pursuing FIRE or even reading about it forces empowers you with information about saving and investing for the long haul.
For example, through FIRE youâll randomly learn personal finance lessons like the 4% rule for retirement and how to create a budget. These are cornerstone concepts of the FIRE movement.
Youâre also forced to think about your income and your financial situation in a brand new way. This includes questions, like âHow much are you actually earning?â and âHow much interest are you paying toward debt every month?â
As a financial advisor, I can tell you for sure that a lot of people donât know the answer to any of these questions because theyâve never thought about it before. You wind up learning so much that can help you along the way toward your goal.
5. Learn How to Budget and Question Yourself
I remember back in the day when my wife and I first started getting serious about budgeting. Weâd sit down to look over our bills, and were shocked by some of our ongoing expenses and subscriptions.
These budgeting âmeetingsâ made a big difference in how we worked together to achieve our financial goals. When we sat down to look over our expenses, our income, and where we were headed, we found ways to spend less without affecting our quality of life.
Now, I hate budgeting, but I do think itâs an important part of pursuing FIRE â especially at first. After all, you canât really work toward major financial goals if you have no idea where your money is going every month.
And, the thing is, you canât really argue anything when you start budgeting and tracking your expenses. You get the chance to see where your money went, in black and white, and you get the opportunity to act accordingly. This may sound like a huge buzzkill, but Iâve found that taking control and budgeting is actually really empowering.
Crazily enough, not enough people have any idea how they spend the income they work so hard to earn. In fact, a recent survey from the budgeting app Mint found that 65% of respondents had no idea how much they spent last month.
When you ask someone pursuing FIRE how much they save each month, these people know. In fact, they often know their savings amount down to the penny.
6. FIRE Helps You Be Grateful
Finally, thereâs one more major benefit of FIRE that goes largely ignored. Iâm going to call it the âcontentment factorâ. Itâs the ability to be content with what you have.
Everything involved with FIRE â tracking your spending, cutting things you donât care about, creating long-term goals â can really put your life in perspective for you. It also makes you realize you might have more power over your life than you realized. Thatâs a pretty amazing lesson.
And of course, learning contentment leads to learning how to feel grateful. How amazing is it that, in this broken world we live in, you can earn a living, care for your family, and set aside something for the future? How amazing is it that you have the chance to work hard and retire early, and then spend decades doing whatever it is you love?
This brings me to a quote I love from Oprah:
âBe thankful for what you have; you’ll end up having more. If you concentrate on what you don’t have, you will never, ever have enough.â â
This is what I love about FIRE; it really encourages you to be grateful and teaches you to be content with what you have. After all, there is no way you could ever save 50% or even 30% of your income without these lessons.
Pursuing FIRE teaches you that you donât need the hottest pair of sneakers, and that you might not need that cable television package you pay for each month. It teaches you that a huge car payment isnât worth it, and that any âfriendâ who judges your car probably isnât a good one.
Learning about FIRE makes you ask yourself all of these questions, and sometimes, thatâs all it takes to realize how good you have it.
Garth Brooks once said that âyou arenât wealthy until you have something money canât buy.â
And perhaps thatâs the greatest benefit of pursuing FIRE. You learn that happiness and true contentment comes from within. And that, my friends, is priceless.
Related: What Is Financial Independence And How Do I Achieve It?
The post 6 Reasons to Try the FIRE Movement appeared first on Good Financial CentsÂ®.
As busy moms, we need to cut the time, trim the cost, and lessen the mental load, and here are the mom life must haves to help you do it!
Ugh! You just crossed off two items on your to-do list (yaaa!), and then you immediately added four more on to it! #momlife Seriously, you feel like you’re bailing out a sinking battleship with a sippy cup, and there’s no end in sight. Or so it seems…
Every good General knows you need the right tools & resources to win the war, so it’s time to fill your arsenal with the best mom life must haves! These are the things that will help you triumph over errands, chores, and mealtime! All while helping you feel calmer and happier, settling your racing mind, giving you the space to do what’s most important!
Yes, snuggling your kiddos, kissing on your honey, or maybe hiding in the bathtub for 2.5 hours reading a good book and eating chocolate. Hey, self-care is in, right? So sit tight, and get ready to rock your to-do list!
This post may contain affiliate links. Please read my full disclosure for more info
How to be a better mom (by having the right support)
Whoa, that’s a loaded statement! I mean, “be a better mom” implies that you’re doing a bad job now, right? NO! We are all doing the best job we can in the life we have right now. No one wakes up and says, “I want to be mediocre today”! No, we want to do a great job every day. Yet, sometimes, at least for me, I fall short.
Some days I’m exhausted, have too much on my schedule, or run out of brown sugar, so no cookie baking today (true story, huge tears ensued from my 5-year-old). When these days happen more than I would like, I know that I need to sit down and recalibrate. Take stock of the common themes, look for overlapping reasons why the $hit keeps hitting the fan, and then figure out what I need to do to get back on track.
Usually, either I need a mini-vacation (sigh), or I need to check out my tools and see where I need more support and even some tools that I may have forgotten about. I call these my mom life must haves! I’ve rounded up my best tips, tools, and resources on the items that help me be a better mom!
When I say “better mom,” I mean…
less frazzled, more calm
less scatterbrained, more organized
less tired, more energized
less scroungy, more stylish
less last minute, more prepared
less mediocre, more badass!
Being a better mom can mean anything that you want it to mean! Don’t let my own definition put restrictions on your best version of you! You can use my ideas to be a jumping-off point, and then tailor them to your own personality and goals!
Take advantage of Amazon Prime Day for huge savings!
I know that spending money on ourselves is hard. I will convince myself that I don’t really need something, or that the money would be better spent on a new thingamajig for my little one. I don’t know why I feel guilty spending money on myself, I just do sometimes.
One thing that always helps me feel better about spending money on myself is if I get it at a good deal! I love saving money! (yes, I’d save a whole lot more if I didn’t buy “it” at all but sometimes we need something! Especially when that something makes our life better or easier! So that’s why I am super excited about Amazon Prime Day!
What is Amazon Prime Day?
It’s a two day event where Amazon offers up steep discounts on millions of products across all categories! People use this time to stock up for holiday gifting, or to splurge on normally expensive items. If you’re a Prime Member you get early access to some of their deals so if you have been thinking about getting a membership, then now is the time! Don’t forget to snag your free 30 day trial!
When is Prime Day this year?
It’s October 13th & 14th this year, but if you’re a Prime Member you’ll get early access!
I am so happy to say that Amazon will be supporting small businesses this year too (sounds counterintuitive but hear me out). Small Businesses can be a partner shop on their platform, and if you purchase starting now through October 12th, if you purchase $10 worth of items from a participating small business you will get $10 credit to use on Prime Day! Check out all the small business partners here!
Amazon Prime Day Deals
Now the following items aren’t a part of my own person list of mom life must haves, yet so many people swear by these. Starting today, Prime members can shop early offers and deals everyday leading up to Prime Day on October 13 & 14.
Get two Echo Dot devices for $39.98
Fire TV Recast for $129.99 to store up to 75 hours of HD programming.
Save up to $100 on Toshiba 43-inch Smart HD Fire TV Edition TV for $179.99.
Insignia 43-inch Smart 4K UHD Fire TV Edition TV for $199.99;
Save $40 on Echo Show 5
Amazon Music: For just $0.99, Prime members who haven’t yet tried Amazon Music Unlimited can get four months of the premium streaming tier with unlimited access to more than 60 million songs ad-free, and now a wide selection of popular podcasts.
Audible: Prime members can save $50 on a year of Audible Premium Plus. Audible members will also get access to the Plus catalog, featuring more than 10K Audible Originals, audiobooks and podcasts, all at no additional cost.
Kindle Unlimited: New customers to Kindle Unlimited save 50% off a 6-month subscription.
The main question with Prime Day Deals, is did you want this item before you heard about it on Prime Day? Or did you simply see it and think “ohhhh, shiny!” Remember, it’s only a deal, if you were going to buy it anyway!
Mom life must haves for the home
1. Family charging station
Hercules Tuff Charging Station
charges up to 80% faster!
charge six devices at once
includes 4 Lightning Cables, 1 Type-C Cable, and 1 Micro-USB cable perfectly sized to keep your space organized
This is honestly one of my favorite things, and I’m not usually a gadget person. If my phone isn’t in my hand, I always know where it is, the family charging station is the natural place to put it down, so it’s an easy habit to start. There’s no worrying about your hubby or kiddo walking off with your charging cables! Plus, it makes mealtimes more family-friendly.
We can sit down to a meal without having our phones on the table or in our pockets, where it’s so easy to start scrolling or get sidetracked by notifications!
Time Saved by less distractions and mindless scrolling!
2.A great handheld vacuum
Black & Decker Max Pivot Handheld Vacuum
Lithium battery for strong suction that never fades
4 stars with over 12,000 ratings!
I’m not a Roomba vacuum kind of person, even though the concept sounds great. I don’t trust them I don’t think they’ll do a great job, and I’ve heard the horror stories of them eating cords & carpets. So that means a handheld vacuum, which sounds lame as they don’t usually have a lot of power. Until I found this one, the Black & Decker Pivot! He’s lightweight and super fast to pull out of the pantry for a quick clean up!
Honestly, this vacuum is amazing! I got mine for Christmas 2015. Yes, 5 years ago, and I can still say it’s amazing! It has so much power to it; it vacuums up everything! I’ve only had the battery run out one time; it was when we were moving, and I cleaned the whole house for the entire day. So I don’t blame it
I hate to admit this, but I didn’t know that there was a removable filter that you had to take and shake out for the first two years. Yes, I emptied the chamber, but I didn’t know about the filter. I didn’t notice it, and it still worked great! Shhh… don’t tell anyone how dumb I was!
Besides, you cant lift a Roomba up and vacuum huge spiders off the ceiling like you can with this handheld vacuum! (Just this past week, it was two mornings in a row that I had to climb on the bathroom counter and get ’em!)
Both time & money saved, as it’s very convient for a quick clean and money saved as this is a quality vacuum, and I expect it to last a long time!
3. An Amazon prime membership
This sounds so silly, as everyone must have it by now, right? Nope, they don’t, but it’s such a lifesaver! Every one should find a way to fit this into their budget. It’s $119 a year for an annual subscription or $12.99 a month. But the main question busy mom’s ask is, “Is it worth it?”
“The actual value of Amazon Prime is estimated to be around $784 annually after all of its individual perks and benefits are considered, according to a recent analysis by JPMorgan”, says Business Insider. So the resounding answer is yes! Click here for your 30 day free trial to Prime.
You get free shipping, two-day shipping, movies, free ebooks, music, file storage, and more! Prime members also get extra discounts to Whole Foods and member-only deals.
Plus, there’s Prime Reload, which gives you 2% by linking up your debit card and reloading your “available shopping balance” from there! Saving money without the lure of a credit card is a great option!
Their Subscribe & Save program also offers great perks! You pick out which items you order all the time, like bar soap or diaper pail liners, and you signup to get them regularly delivered to your door; with this you can save up to 15% on these purchases! Amazon Prime Family also offers 20% off diapers and special baby registry benefits!
Don’t forget to look for available Prime Membership discounts:
Prime Discounted Monthly offering is just $5.99/month for qualifying customers with an EBT or Medicaid card
Prime Student has a 6-month trial and then $6.49 a month
Amazon also has their Signature Visa, where you get 3% back at Whole Foods, 2% back at gas stations, restaurants, and drugstores. 1% back on utilities and all other purchases (see terms & conditions for current details).
Don’t forget you can get a 30-day free trial on all Amazon Prime!
Money saved! You will find great deals on Amazon, but you might need to spend some time digging through reviews and products.
4. Easy & fast dinners
Meal kits certainly aren’t new anymore, so the novelty has worn off. They’re not just for “fun” anymore, but they are a lifesaver! And there are so many different companies you can choose from, meal kits for any diet and lifestyle!
We like EveryPlate, as it’s one of the cheapest out there at $4.99 a serving! Meal kits save me so much time and brain angst (is that even a thing?). But you get me, I mean I would waste so much time trying to figure out what to make for dinners for the week. Then I have to go buy it all, and the prep it. Ugh! My brain hurts just thinking about it!
With EveryPlate, it takes me 12 minutes every month to go into their dashboard and pick my meals. That’s it. The recipes are easy to make, tasty, and I feel good about not serving up a frozen pizza or take out every night.
We have also started trying Dinnerly too. I’m not into blindly following brands, I like to be sure that I am getting the best deal for the best value out there! So of course I am going to try the competition! Dinnerly and Everyplate are similar in cost, program, and quality.
YET, Dinnerly just started offering extra protein portions (in case you want to make a little more). AND, they just started offering desserts too! This next week I signed up to get a caramel apple spice cake and the following week pumpkin pie cheesecake bars! (fall flavored treats are my weakness). Click the here to start making meal time easy (finally!) and treating your family!
Don’t get me wrong, meal kits have their drawbacks, sometimes the cucumber arrives soft, or it’s not enough for my hubs, but overall it’s a great option, and it totally works for us!
We also use our trusty old slow cooker! It’s still great for making a good amount of food that we can use as quick leftover meals throughout the week. Things like chicken fajitas, or three-bean chili, or mac & cheese are great options.
This slow cooker is great as it’s programable for temp & time. Then when it’s done cooking, it switches to warm mode, so you don’t overcook your dinner! It also comes with a temperature probe, so if you’re cooking meats you can be doubly sure it’s fully cooked!
On my wish list is this Instant Pot; I mean, it has 4 1/2 stars with over 100,000 reviews! That’s crazy, right! Besides, any gadget that says it’s perfect for beginners is for me!
Time & money saved! But more so, my sanity as I hated trying to decide what to make for dinner!
Mom life must haves for our kids
So we wouldn’t be busy moms if it wasn’t for our kiddos, right? These things are ones that I love, and have made this crazy journey a lot easier!
5.Honest Company products
So this sounds corny, but I honestly love Honest Products! Actress Jessica Alba started the brand. Honest’s bio page says, “When she couldn’t find one brand to trust for all her everyday needs, she had to create it. And she knew that there had to be others out there looking for safe products, simple solutions, and clear information about their choices, just like her.”
Did I ever tell you that I am a natural skeptic? When someone says their product is safe and uses only the best ingredients, I look to the experts to tell the truth. I use the Environmental Working Groups Skin Deep app on my phone all the time for this! I scan the barcode of an item, and it tells me if it’s considered safe by their 3rd party unbiased testing. EWG isa “non-profit, non-partisan organization dedicated to protecting human health and the environment.” Their app doesn’t have every product in its database, but they have a lot (mostly in the beauty and cleaning area).
When I am standing in Target and looking for something for my kiddo, I scan all the brands to find the one that is the least toxic, and then I go to Amazon to check out the reviews on that item. If people love it, then I buy it!
I just used it this past month, we stayed at my mom’s house for a few days, and my daughter used their bubble bath; she loved all the bubbles. But a few days later, she broke out in a rash, sure enough, I found it was rated an 8 (on a scale of 1-10, with 10 being the worst). Whoops!
So I went to target and scanned a few and settled on The Honest Company’s lavender bubble bath, and it was rated a 1! I bought it, and it worked great (as much as a bubble bath works), the bubbles lasted forever, smelled great, and she loved every second of it! (oh and no rash!)
The Honest Company Truly Calming Lavender Shampoo & Body Wash
The Honest Company Truly Calming Conditioner
The Honest Company Truly Calming Bubble Bath
I feel great about these products as I know they’re safe (peace of mind is priceless), work great, and don’t cost a fortune!
Mental space & time saved! As I don’t wonder anymore (or feel guilty) about knowing that the products I use on her are safe!
6.The best safety in the industry
Along the same vein of keeping our kiddos safe, I researched a lot of items when I was pregnant, and one of the most researched items is a car seat! I finally chose the Britax B-Safe 35 (funny story here), and then when she got older, the Britax Boulevard ClickTight convertible car seat.
I honestly spent way too much time agonizing over the car seat choices. I wanted the best for her without spending a fortune. Yes, Britax is a teeny tiny bit expensive, but a car seat is so important, as a bad car seat can have horrible repercussions!
Anyway, funny story, so I was agonizing over which to choose for weeks. One day, as I watched TV, a clip about Prince William & Kate came on, as they just had their first baby. The TV shot was of them standing at the top of some stairs, walking down and outside to their car. Prince William was holding the car seat, and I recognized the colors (black & red) of the car seat.
I paused it, screenshot it, and zoomed in; sure enough, it was a Britax B-Safe! Within two minutes, I was on Amazon and ordered it! If this was the brand & model that the Royal Family trusted, then this was the one for me! Problem solved, no more worries!
All of their models’ rates very high for safety, their quality is great, and they are easy to use!
Peace of mind! Knowing that I have done everything I can to protect my daughter, while in the car, is important to me!
7. Car Snacks
A busy mom’s best friend is without a doubt her car snacks! Car snacks for the kiddo and absolutely car snacks for us!
Car snacks keep everyone happy, and they keep you out of the drive-through! Oh, and did I mention that when your kiddos are eating the snacks they’re not asking you 459 questions!
I have two go-to’s for this.
Emerald nut mix, variety pack 100 calories packs. Right now, it’s $9.44 for the box of 18 small individual packs. That’s $.52 a pack.
Nature’s Bakery Whole Grain Fig Bar – these are the best, as they don’t harden into rocks when your car has been sitting out in the freezing cold. They don’t melt in the summer, and they don’t crumble and get a mess everywhere! Plus, they’re tasty and not total garbage nutritionally speaking!
Time & money saved, as you’re not stopping for fast food! More importantly, I can say that the magic of car snacks has saved my own personal sanity!
Mom life must haves for ourselves
8.An organized life
If I had to get married again (and not to my husband), I would marry Trello! Seriously, I feel that strongly about this app! If you’re not familiar with Trello, it’s basically a place where you can put your entire life & brain to help keep you organized!
Picture this; it’s like a giant whiteboard with lists and sticky notes, links, files, and images. It’s sharable so you can work with people on projects too! It gives you the big picture and zero’s in on the tiny details. It’s for desktop and mobile, and it’s free! Yup, FREE!
If you have a daily planner or 489 sticky notes, then you have to check out Trello!
If you absolutely love your pen & paper style organizing, then check out my Brain Dump printables! It’s for when you’ve got way too much swirling around in your brain. You lay it all out in formatted sections, and it helps you plan, prioritize & delegate your to-do list!
Time & sanity saved! I don’t forget things nearly as much (but I’m not perfect).
9.A delicious nutritional home run
Garden of Life Sport Certified Grass Fed Clean Whey Protein
vanilla or chocolate flavor
24 grams of protein
no added hormones, sugars, or rbst free, and gluten free
As busy mom’s we’re run ragged sometimes. So much to do, and it’s easy to forget about taking care of ourselves. Or we push it to the back burner, always meaning to get to it later, but never actually doing it.
We know we feel better when we take care of ourselves, yet it’s hard to prioritize yourself over your to-do list (at least I do). So make a promise to yourself to start taking better care of you! For me, that looks like having a healthy smoothie! For you, it could look totally different, and that’s fine!
My favorite protein powder is Garden of Life Whey Protein Powder, I don’t need anything crazy with 78 grams of protein, I just need something to feed my body, without a ton of crazy chemicals. (Yes, I do realize that protein powders are processed, but this is a very well respected brand, and it was recommended to me by super knowledgeable staff at a natural grocery store.)
“We start with what goes IN our products—true, whole food ingredients. But we don’t stop there. We also pay very close attention to what we keep OUT of them. And once again, we look at food—real nutrition food. When is the last time you picked up an apple, turned to read the ingredients, and saw a list of chemicals? If it’s not in your food, then we don’t want it in our supplements. We use third-party (never self-affirmed) certifications to prove we are clean!” (source).
My base recipe…
1 scoop of protein powder
1 frozen banana
1/2 can full-fat coconut milk
2 Tbs chia seeds
1/3 can pumpkin puree with 1 tsp of pumpkin pie seasoning
a handful of frozen mixed berries with 1 tsp of vanilla
These smoothies are a part of 21 Day Sugar Detox Daily Guide, which I did last year! I felt so good about focusing on my health and I plan to do the program again (as life happens, right).
For those of you a little wary of the can of coconut milk, I want you to try it at least once. It’s delicious, and it fills me up all day long! Yes, it has a lot of fat in it, but so many vitamins and nutrients. I’m not a food or weight loss blogger, so I won’t try and convince you of the scientific health benefits.
It’s delicious (truly, I’m not exaggerating), and it makes me feel great, and it’s healthy! That’s good enough for me. Besides, when I make it in my Vitamix, cleaning up is super easy! I just give it a quick rinse in the sink, pour some dish soap in it, fill it with hot water, put it back on the base, and turn it on for 40 seconds! No taking apart pieces and scrubbing it! (of course, if I use dairy, then I do put it through the dishwasher)
Time saved! Smoothies are quick and easy, plus I feel good knowing that I am taking care of myself so that I can have the energy to take care of my daughter and answer her 45,871 questions!
10.Chug Chug Glug
That’s code for drink more water! We all know this; it’s been drummed into our head with 1000 hammers. Yet, it’s still true; we all need to drink more water!
I love my Hydro Flask! It keeps my water cold for FO-EV-ER! It never sweats, I have dropped it a billion times, and it only has one dent (haha). I love the lid with the loop, as I can hang it from my mommy hook on my little one’s stroller. (Mommy hooks are great too, you can hang anything with it!)
My current one I’ve had for two years, and the only reason I needed a new one is I lost my older one, which was at least three years old (my Amazon order history only goes back so many years, I guess). So that ‘a good sign; they last forever! Well worth the price! Plus, they come in super cute colors!
Oh, and did I mention Hydro Flask makes a wine tumbler too! Ha! This might absolutely help me be a better mom!
Money saved, as this water bottle lasts forever! Probably money saved too, as I eat less snacks and less at meal time as I’m well hydrated.
11.A simple cute & comfy style
This is a hard one, as I’m a little bit ashamed of my path to this product. I got to a point where I was getting a bit scroungy; you know sloppy. My sweatpants were old, and the t-shirts were stained. Sexy huh!?!
It was time for a mini mommy wardrobe makeover! I have been reading a lot about minimalism and especially capsule wardrobes, and am in love with the nice, basic simplicity of it! It appeals to me on all levels! Find pieces that fit & flatter, that all go together and stick to it!
So I went through, purged my closet (I got rid of 75% of my clothes), and focused on an inexpensive capsule wardrobe! The base of the collection is these amazing IUGA high waist yoga pants! I got a pair in black, and I love them! With 4 1/2 stars with over 25,000 reviews, they have to be amazing, right? They are! An absolute staple for this mom life must have list!
And they don’t cost a fortune either! Just $25 for this pair! I did buy some nice yoga pants at Target before finding these, but they didn’t come in black). These IUGA pants…
come in 26 colors
inside waistband pocket for keys
hip pocket for phone
aren’t see through (whew!)
30 day money back love it guarantee
Time & sanity saved! As I don’t stare blankly at my closet for 12 minutes every am, wondering what to wear, of if it will look okay! It’s a quick scan the closet, grab the pants and it’s go time!
12.Survival in a can
If I didn’t mention my absolute favorite must have for moms, I would be doing you a disservice. I would also be hiding the real me. I don’t want to do that, as that’s lame. So my favorite mom life must have is canned wine.
Let me explain. I love canned wine. I really do. I like wine, but I don’t like opening a whole bottle of it. If I drank a whole bottle, that’s bad news. Yes, I could put a stopper in a bottle and save it. But my favorite one is The Bubbles, a sparkling white wine (kind of like a Pinot Gris). So if I used a stopper, the bubbles wouldn’t be as amazing a few days later.
A can size is perfect, usually consumed over two nights. And then I don’t have to worry about it going bad, or feeling like I need to drink more than I should, just because I don’t want to “waste” a bottle.
Besides, canned wine is coming up in quality and popularity! It’s not like those jugs you see at discount grocery stores for $4.99. Trust me; it’s delicious!
The Bubbles is my favorite, and you can get it from Whole Foods through Amazon Prime delivery! Plus, add a snack tray and a heavenly chocolate bar from WF, and you’re set! This is my perfect meal for a relaxing evening on my own!
I wish that I could say that this saved me time or money. But this is just something that makes me happy!
At the end of the day
As busy moms, we have our hands full, not to mention our brains! We need all the help we can get, and I am not too proud to accept help from great tools and resources! These mom life must haves help me be a better mom by taking away the unnecessary, automating what can be, and making me feel better in my skin, my mind, and in my heart!
Posts related to mom life must haves:
The Secret Formula for Getting the Best Gift for Mom
Want to be a Stay at Home Mom? Read This First!
Mamas Talk Money Goals!
What’s your mom life must have item? Let me know in the comments below!
The post Game Changing Mom Life Must Haves! appeared first on Money for the Mamas.
The time off work spent with a newborn is one of the most memorable times in a parentâs life. Like any other major life event, financial planning is crucial to make the experience as stress-free as possible. Saving for maternity leave takes strategic financial preparation, especially in the United States where there isnât a mandate on paid leave for new parents. Although women are still outnumbering men when it comes to taking parental leave, paternity leave is also on the rise.
Saving for maternity leave (or paternity leave) doesnât have to be a grueling process as long as you plan ahead. Rather than stressing about finding additional sources of income, itâs helpful to start by finding areas where you can save. With so many unpredictable factors affecting our daily lives, it helps to get as detailed as possible with your plan.
Below, weâve outlined some of the best ways to stay on track financially while saving for maternity leave.
10 Tips for Saving for Maternity Leave
Check In With HR
As soon as you plan to notify your workplace of your pregnancy, stop by your HR department to clarify parental leave policies. These policies include health insurance, using vacation and paid time off as part of your leave, collecting partial payment for maternity leave, and claiming short-term disability.
Your HR department might also help you maximize a flexible spending account (FSA), which will allow you to devote more pre-tax dollars to upcoming medical and child care expenses. Confirm what your insurance policy covers in regards to the duration of hospital stays, prescription drugs, medical materials, and how long the baby will be covered under your policy after birth. After clarifying the details with HR, youâll want to discuss your upcoming maternity or paternity leave with your supervisor and coworkers too.
Take Charge of Your Spending
If you donât actively stick to and monitor your budget, now is the time to start. For at least 30 days, track everything you and other family members spend to get a clear idea of where your money goes each month. Pick a time for a biweekly family financial meeting to maintain your progress.
Successful saving is about defining a realistic plan of action with all parties who spend and generate income in your household. Saving for maternity leave is all about determining what your income and expenses will look like when youâre out of work and caring for baby, at least to the extent that you can reasonably project them.
Crunch the Numbers to Maximize Your Budget
Too many families saving for maternity leave rely heavily on estimates rather than doing the math to figure out specifics. Be sure to project your monthly income during maternity leave.
Factor in payouts you will receive for any partially paid maternity leave by your employer, unused vacation days, and any other extra income you plan on generating by freelancing or working part-time. Then, subtract your maternity leave income from your expenses. If itâs negative, then that figure is the absolute minimum youâll need to save for each month you wonât be working when the baby arrives.
When you make the time to specifically predict your budget, you eliminate the confusion and stress that comes with unforeseen expenses. Don’t forget to also account for spending changes that happen after the baby arrives. Baby supplies and gear can get expensive quite fast. Plus, you might find yourself spending more on takeout and outsourcing cleaning or errands as youâll have less time on your hands with a demanding newborn.
Automate Your Savings
When it comes to automating your savings, the concept is simple: If you never see the money, you wonât be tempted to spend it. Establish an automatic savings plan through your bank that will automatically transfer money from checking into savings.
Another option is contacting your employer to have a portion of your paycheck directly deposited into your savings account each payday. Using a budgeting app that allows you to see how much youâre stashing away in real-time also helps.
Make Couponing a Family Activity
Savings can really add up by recognizing opportunities to capture low hanging fruit opportunities like couponing. There are a ton of free online couponing sites, but donât miss out on old fashioned couponing and start a binder or folder as well. Be sure you donât negate your hard work couponing by splurging.
Try to reduce all non-essential expenses in your budget and dedicate that money to your savings account instead. If you get a tax return or bonus, skip buying the fancy crib and put it right into savings. By connecting with family members, friends, and neighbors you can take advantage of gently used baby items to save cash. Also, it canât hurt to see if there is a second-hand store in your area specifically for baby clothes and supplies, like Once Upon a Child.
Get a Credit Card That Helps You Save
Although itâs important to be wise with your credit card usage, your credit card spending can help you with your budgeting goals. Depending on your stage of life, certain credit card choices might make more sense than others.
As a reminder, no matter which card you use, always use the same best practices to increase your credit score. For example, make an effort to keep your utilization low and always pay your bill on time. After all, making payments late can have the biggest negative impact on your credit score.
Choose a Bank that Helps Your Financial Goals
Stick to accounts that are free of balance requirements and fees, and compare rates at local banks and credit unions. Remember, smaller financial institutions sometimes offer more competitive rates than major banks, so donât be afraid to do some shopping around.
If youâre comfortable banking online only, some online banks offer very competitive rates. For example, a high yield savings account will help your money work for you as youâre saving for maternity leave.
Take Advantage of Family-Specific Discounts and Tax Credits
With a little research, youâll likely find a wide array of discount programs and free resources for expectant parents. Donât forget to take advantage of tax credits, too.
For example, you may be able to claim the Child Tax Credit for the year your baby was born (depending on the time of birth), deduct qualifying child care expenses, and contributions to a College 529 savings plan. All of these will reduce your taxable income, leaving more money in your pocket.
Plan to Keep Your Professional Skills Sharp
There are certain realities about taking extended time off from work for parental leave that are inevitable. The time away from your job could cause you to feel out of the loop or more stressed when you return.
Taking some time during your parental leave to maintain key skills or read up on company/industry news could help you maintain job security (and therefore financial security) when you get back to work.
Avoid the Baby Registry Trap
Baby registries are big business and can be big budget busters. Only register for the items that truly need to be brand new and reach out to friends, family, and consignment stores for gently used items before you splurge on a registry.
From financial coverage for maternity leave to childcare costs, increased medical expenses, and college savings accounts, thereâs bound to be a lot on your mind. Fortunately, youâre not on this parenting journey alone. There are plenty of families making it work with lean budgets who are stressing less by following tips like the ones weâve compiled in this graphic below:
budget that works for you.
Make a game plan and take advantage of resources as youâre prepping for parental leave. Keeping your finances in check while spending time away from work undoubtedly provides a sense of reassurance. Take control of your budgeting goals and get creative with new ways to generate income and save money.
Sources: National Partnership | US Census | CBS
The post Saving for Maternity Leave: How to Financially Prepare Your Family appeared first on MintLife Blog.
Flipping a house is a lot of work, and can yield a big profit. But not every project is guaranteed to be lucrative. So what’s the key to successfully making over a fixer-upper and selling it for a gain? Our new series “What the Flip?” presents before and after photos to identify the smart construction and design decisions that ultimately helped make a house desirable to buyers.
Oklahoma City is an alluring place for home buyers these days. Its cost of living is low, there are plenty of opportunities for work and play, and you get the pace of city life with the quiet of the country nearby.
With a median listing price of $225,000, Oklahoma City is certainly a place to score a sizable single-family home for a reasonable chunk of cash, but finding an age-old property with good bones is a challenge. So when our flippers stumbled upon this four-bedroom, three-bathroom home from the early 1900sâin one of the city’s most prestigious and historic neighborhoodsâthey jumped.
Sure, the home wasn’t exactly in great shape, but that’s where the flip comes in. This old home went from drab and dusty to absolutely fabulous. It was purchased in July 2018 for $325,000, and in September 2019 it was sold again, for $642,000. The sellers doubled their money in just over a yearâa result that any flipper could hope for.
So what made this such a successful flip? We turned to our experts to uncover the winning design and home improvement moves.
The living room is often the first space buyers see when they enter the home, so bringing this room up to date was key. The original room felt dark, dirty, and cramped, so the sellers had a big project on their hands.
“Lighting is key to this room,” says Malissa Kelsch, real estate adviser with Red Rock Real Estate. “Removal of window coverings and additional can lights deliver a distinctive sensation of relaxation.”
“They resurfaced the walls, which was a great choice to make the walls feel like new construction,” adds architect and interior designer Alondra Alberti. “The light paint and blond floor stain showcase how large the space actually is.”
But one of the most impactful changes was simply the removal of the accordion doors leading to the kitchen.
“The living room seamlessly flows into the kitchen to make it a perfect home for entertaining,” adds real estate agent Sarah Bernard. “This is the open, bright look that buyers today are demanding in new construction, so to renovate with this in mind makes lots of sense.”
Previously, the home office looks like a strange afterthought. The flip transformed it into a gorgeous, usable room.
“Home offices are one of the most sought-after spaces in our current climate of working and teaching kids remotely,” says Bernard. “The new floor, lighting, and open, sleek modern space with windows make this a strong selling point for busy buyers.”
“The hardwood floors throughout facilitate the visual flow between spaces, creating a more harmonious relationship between the office and the rest of the house,” says Alberti. “I also love the contrast of the black-matte stair raisers and wooden handrails. It provides a sophisticated rustic appeal that a lot of buyers look for in a home.”
“It looked like a sad little kitchen crying in the corner,” Alberti says of the pre-renovation space. But the flip made a huge difference in this all-important room.
“They have repositioned and expanded the kitchen, creating an open concept tied in by a beautiful, massive island that not only provides contrast but also bar seating,” Alberti explains. “They did a great job combining different materials and textures. … It’s a design risk that elevates the home.”
Kelsch says the new kitchen is definitely more appealing to potential buyers.
“Additional usable counter space, storage, and lighting make this a desirable kitchen and a ‘wow’ feature in the home,” she says.
The old bathroom in this home was like a walk back in time, but not in a good way.
“The wallpaper and the top-and-bottom built-in cabinets made the space feel enclosed and restricted,” says Alberti. “The old shower doors are always a must-goâthey have had their run for far too long.”
The updated bathroom now feels warm and welcoming.
“The shower wall niche was a particularly nice touch because it provides practicality to the user,” adds Alberti. “Those kinds of details are never overlooked by buyers.”
Bernard agrees: “The new, beautiful bath lets in natural light for the tranquility that homeowners want in their bathrooms,” she says. “The updated shower and more functional and modern vanity feel clean and fresh compared to the original.”
From the gray wall-to-wall carpet to the heavy drapes, can we all just agree that the old bedroom was the stuff of nightmares?
“The new bedroom sheds pounds of darkness that were exhibited in the old carpeting and bulky cabinets,” says Bernard. “The white walls and wonderful new windows are inviting in a room that anyone can envision themselves waking up in. This is a luxury look that buyers in all price ranges desire.”
“This bedroom has had a complete turnaround. The new vaulted ceiling helps make the room feel more spacious, and removing the cabinetry opens up the room,” says Kelsch. “Bringing in as much natural light as possible by taking down dated old drapes and updating furnishings and fixtures will bring top dollar to this house.”
The post What the Flip? A 1909 Family Home Is Fully Restored and Grabs Top Dollar appeared first on Real Estate News & Insights | realtor.comÂ®.
It takes money to make money and virtually any small business will require some startup capital to get up and running. While the personal savings of the founders is likely the most common source of startup funding, many startups also employ loans to provide seed capital. New enterprises with no established credit cannot get loans as easily from many sources, but startup loans are available for entrepreneurs who know where to look. Here are some of those places to look, plus ways to supplement loans. For help with loans and any other financial questions you have, consider working with a financial advisor.
Startup Loans: Preparing to Borrow
Before starting to look for a startup loan, the primary question for the entrepreneur is how much he or she needs to borrow. The size of the loan is a key factor in determining where funding is likely to be available. Some sources will only fund very small loans, for example, while others will only deal with borrowers seeking sizable amounts.
The founderâs personal credit history is another important element. Because the business has no previous history of operating, paying bills or borrowing money and paying it back, the likelihood of any loan is likely to hinge on the founderâs credit score. The founder is also likely to have to personally guarantee the loan, so the amount and size of personal financial resources is another factor.
Business documents that may be needed to apply include a business plan, financial projections and a description of how funds will be used.
Startup Loan Types
There are a number of ways to obtain startup loans. Here are several of them.
Personal loan â A personal loan is another way to get seed money. Using a personal loan to fund a startup could be a good idea for business owners who have good credit and donât require a lot of money to bootstrap their operation. However, personal loans tend to carry a higher interest rate than business loans and the amount banks are willing to lend may not be enough.
Loans from friends and family â This can work for an entrepreneur who has access to well-heeled relatives and comrades. Friends and family are not likely to be as demanding as other sources of loans when it comes to credit scores. However, if a startup is unable to repay a loan from a friend or relative, the result can be a damaged relationship as well as a failed business.
Venture capitalists â While these people typically take equity positions in startups their investments are often structured as loans. Venture capitalists can provide more money than friends and family. However, they often take an active hand in managing their investments so founders may need to be ready to surrender considerable control.
Government-backed startup loans â These are available through programs administered by the U.S. Department of Commerceâs Small Business Administration (SBA) as well as, to a lesser degree, the Interior, Agriculture and Treasury departments. Borrowers apply for these through affiliated private financial institutions, including banks. LenderMatch is a tool startup businesses use to find these affiliated private financial institutions. Government-guaranteed loans charge lower interest rates and are easier to qualify for than non-guaranteed bank loans.
Bank loans â These are the most popular form of business funding, and they offer attractive interest rates and bankers donât try to take control as venture investors might. However, banks are reluctant to lend to new businesses without a track record. Using a bank to finance a startup generally means taking out a personal loan, which means the owner will need a good personal credit score and be ready to put up collateral to secure approval.
Credit cards â Using credit cards to fund a new business is easy, quick and requires little paperwork. However, interest rates and penalties are high and the amount of money that can be raised is limited.
Self-funding â Rather than simply putting money into the business that he or she owns, the founder can structure the cash infusion as a loan that the business will pay back. One potential benefit of this is that interest paid to the owner for the loan can be deducted from future profits, reducing the businessâs tax burden.
Alternatives to Startup Loans
Crowdfunding â This lets entrepreneurs use social media to reach large numbers of private individuals, borrowing small amounts from each to reach the critical mass required to get a new business up and running. As with friends and family, credit history isnât likely to be a big concern. However, crowdfunding works best with businesses that have a new product that requires funding to complete design and begin production.
Nonprofits and community organizations â These groups engage in microfinancing. Getting a grant from one of these groups an option for a startup that requires a small amount, from a few hundred to a few tens of thousands of dollars. If you need more, one of the other channels is likely to be a better bet.
The Bottom Line
Startup businesses seeking financing have a number of options for getting a loan. While it is often difficult for a brand-new company to get a conventional business bank loan, friends and family, venture investors, government-backed loan programs, crowdfunding, microloans and credit cards may provide solutions. The size of the loan amount and the personal credit history and financial assets of the founder are likely to be important in determining which financing channel is most appropriate.
Tips on Funding a Startup
If you are searching for a way to fund a business startup, consider working with an experienced financial advisor. Finding the right financial advisor who fits your needs doesnât have to be hard. SmartAssetâs free tool matches you with financial advisors in your area in five minutes. If youâre ready to be matched with local advisors who will help you achieve your financial goals, get started now.
One way to minimize the challenge of getting startup funding is to take a âlean startupâ approach. That approach could be especially helpful to baby boomers, who are âaging outâ of their careers and living longer than earlier generations but still need (or want) an income. Learn how many of them are turning their retirement into business opportunities.