After you’ve debated the pros and cons of living with someone and decided to have a roommate, the next challenge is figuring out how to find one. If you don’t already have a potential roommate in mind, you’ll need to start looking for one, which is its own challenge. Here are tips on how to find a roommate who will be compatible with your lifestyle.
Ask around
You can ask your family, friends and other acquaintances if they know anyone looking for a place to live. At the very least, you can let others know you’re seeking a roommate, so they can pass along the word to their friends and family. There’s a good chance that your contacts know someone who needs a place to live.
Furthermore, you’ll have the benefit of a reference you know already. You can ask your friends and family about the potential roommates and what they think of them. If a friend says their old roommate is looking to move, you can get great insights on if the potential roommate is clean, easy to live with, etc., from your friend, rath
er than relying on unknown references provided to you by that potential roommate.
Leverage social media
This can be a farther-reaching method of asking friends and family if they know anyone looking for a place to live. You can make a post with details, such as the area you’ll be living in, how much rent will be and how many other people will be living in the apartment. Make sure that your post is shareable, then ask everyone to share your post to get the word out!
You can also do some searching on socials to see if others from your city are posting about looking for an apartment. Reach out to those individuals and let them know what your apartment and the living situation would offer!
Some social media platforms like Facebook have groups specifically for housing in certain cities or areas. You can post in these groups that you’re looking for a roommate and it will be seen by plenty of others.
Place ads and listings
There’s no shame in using platforms like Craigslist and Facebook Marketplace to find a roommate. It’s easy and usually free to create a listing and it’s searchable by location, so those who are actively seeking to live in your area will quickly find your listing. Many local or state news networks will have a place for classified listings and rentals, so check to see if your city has one where you can post your apartment.
Try an app
Using apps is one of the best ways to find a roommate. There are plenty to choose from, but some of the most popular are Cirtu, Roomster, Roomi and SpareRoom. Such apps often allow for a more personalized search where you can specify what qualities you want in a roommate (quiet and keeps to themselves, extroverted and likes to socialize, clean, etc.). They also often require background checks or multi-step verification for users, so it can be safer for you to use.
You’ve found a roommate, now what?
As much as you want to find a roommate, your personal safety, credit history and even your reputation matter. So, make sure you research every potential roommate thoroughly.
1. Review references
Ask applicants for references from employers and previous landlords. Even notes from friends, clergy, professors and former roommates can help you get a sense of their character and habits.
Search each potential roommate’s social media pages to see if they’re respectful in their interactions with others and if they show good judgment in what they post publicly. If you see evidence of illegal activity, angry messages from friends or hostile, hateful, racist or sexist posts from your potential roommate, cross them off the list.
2. Check their criminal background
Search each applicant’s name and look for arrest records. Some states also have circuit court access websites available for your reference. People with common names are sometimes mixed up, so make sure you’re researching the right individual by cross-referencing details like photos and location.
If you find something questionable, you can reach out to the police department that made an arrest. They can offer clarification while still preserving privacy.
3. Do a financial check
Of all the questions to ask potential roommates, financial questions are among the most important. You’ll be paying bills with this person, so their bad credit and financial habits could affect you.
You can request a credit check from a potential roommate to make sure they have a solid payment history and ask about their job. Someone with a steady full-time job is likely more stable than someone who works sporadically or changes jobs frequently. You can ask for pay stubs as proof if you’re concerned.
Keep in mind that a potential roommate might have alternative sources of income, like alimony, savings, stipends and investments. Or, if they’re a student, they can typically get extra help via student loans or grants.
Other questions to ask potential roommates
Once you’ve narrowed down your list of candidates, it’s time to go a little deeper by discussing your personalities and habits to find the best fit.
Consider creating a rough outline of a roommate agreement and using it as a conversational guide. If you hit it off, you and your future roommate can edit it together before they move in.
1. Additional financial questions
You don’t have to be best friends to be successful roommates. But you do have to cooperate and be good financial partners.
Ask your roommate what they can spend on rent and utilities and how much they can contribute to the security deposit. Discuss how and when you’ll pay bills and what will happen if someone comes up short.
2. Chores and responsibilities
The bills aren’t the only thing you’ll be dividing — roommates need to split the chores, as well. Be honest about how often you plan to clean, which chores you’d like to handle and if you’re tidy or messy. If you’re on opposite sides of the spectrum, you could face an uphill battle.
Shopping, deep cleaning and other household management tasks like corresponding with your landlord also fall under this category. Hash out how you’ll allocate these tasks and figure out a system that will work for both of you.
3. Personalities and habits
An introvert and an extrovert can live together quite happily, as long as they establish ground rules. Figure out a communication style that works for both of you.
Little disagreements can cause big drama, so chat about seemingly insignificant things like how warm you like the apartment and what you consider a “normal” volume level before you move in. If your views on habits like drugs, alcohol and smoking don’t line up, that’s probably a deal-breaker.
4. Schedules
Get an idea of how often your potential roommate will be at home. A traveling sales rep has a very different schedule than someone who works and socializes on a laptop in their bedroom.
It’s also smart to talk about how they plan to use your joint living spaces. If they cook three-course dinners every evening, like to throw parties or plan movie marathons every weekend, find ways to make sure their activities don’t interfere with your at-home workout sessions or meditation time.
5. Personal relationships
How do you feel about friends and family members coming over or spending the night? What happens if you both want company at the same time? If they’re dating someone, discuss how often their partner will be in the apartment and expectations around what privacy will look like.
Pets are like family, so make sure you know the details about your potential roommate’s pets. Discuss how they’ll share the space with yours and brainstorm how you might split pet-related chores. If one of you is allergic to animals — or if pets aren’t allowed in the building — move on.
The best way to find a roommate
Once you’ve done your homework, it’s time to make your future roommate an offer. Eliminate anyone who gave you a bad feeling or people with whom you just didn’t click. Basic respect and good communication are the building blocks of a solid roommate partnership.
Figuring out how to find a roommate can be challenging. But it doesn’t have to be complicated. Ask smart questions, leverage your personal networks and use tools available to help you find someone with similar goals who will be a good fit.
Here’s how this social worker has paid off $28,000 of student loan debt in 15 months.
Today, I have a great debt payoff progress story to share from Taylor. Taylor is a social worker who is working on paying off $277,000 of debt and retiring early. She shares tips on how she is cutting her expenses, the ways they’ve increased their income through various side hustles, house hacking advice, and how she qualified for an $88,000 student loan award.Enjoy!
Now, don’t let the title deceive you into thinking we are debt free; we most certainly are not.
As of this writing, we still have $251,195.39 of debt (all student loans).
This is our story about the debt payoff strategies we used in paying off $28,026.02 of debt and our goals for the future!
Who are we?
My name is Taylor, and I am a 29-year-old medical social worker who finished grad school in 2018. I am also a part-time social media coordinator and with both jobs combined, I make $96,000 (gross).
I live with my husband, Bret, who I have been with for 11 years and married for 3. He is a full-time student and has been in grad school since September 2020 (he has about 2 more years left). We love to travel, try new restaurants, hang out with our friends and family, and just have a good time.
I also have a blog at Social Work to Wealth.
Related articles:
How did we get here?
First, I need to give you some background before we get into the nitty gritty of our debt numbers and payoff strategies.
2012: We met when both of us were in college. I was 18 and Bret was 22. Soon after we met, Bret took a few years off from school while I finished my bachelor’s. I relied entirely on student loans, and don’t remember applying to any scholarships. When Bret returned to school to finish his bachelor’s, he did receive some scholarships and worked a summer job to pay forhousing but still needed to rely on student loans to pay the bulk of his tuition.
I will speak for myself when I say I didn’t take the time to calculate how much loan money I actually needed and blindly accepted the total amount. Looking back, maybe I would have needed it all or maybe not, but I wish I would have at least done the exercise.
We have always been open with talking about our debt and money in general, but I remember us both expressing the thought that we would probably always have our student loans. We would just live our life, pay our minimum payments, and that would be that. There was never any talk about debt payoff strategies, or any money management strategies, really.
We went through many life transitions. Living apart for two years while I went to grad school, him returning to school to finish his bachelor’s, various jobs, and a post-bach program.
2019: Bret was finishing up his post-bach program and got accepted into grad school. We were newly engaged and began planning and saving for our wedding scheduled for July 11th, 2020. Such exciting stuff!
March 2020: We got the news our wedding venue was closing for the foreseeable future due to the COVID-19 pandemic, and we decide to cancel our wedding. We switched gears and used the money we saved for a down payment on a new home. Then, we had a small intimate wedding featuring a hot-air balloon with 18 of our closest family members! We personally saved a ton and also had tremendous help from our family.
September 2020: I start a new job and Bret starts grad school. We are newlyweds and settling into our new home in a new city.
I wish I could talk more about 2020 because it was a HUGE year for us with buying a home, moving, getting married, Bret starting grad school and me starting a new job, but that’s a conversation for another day!
Our wedding
From frugal to spenders
When we were saving for our wedding, we were very frugal. Any extra money we had, we put toward our wedding savings (which again, ended up being used for the down payment on our house and a smaller wedding ceremony).
We went from frugal to swiping our cards left and right to prepare for our wedding and furnish our house. It was sooo nice to finally be able to spend the money we had been saving for so long! But this continued into 2020… and 2021…
We were mostly spending on eating out and experiences. We do like to buy “things” but we definitely value food and experiences a lot more. We even decided to put a trip to Hawaii on our credit card costing us around $5,000, along with other expenses, because why not? We deserved it!
We didn’t have much of a budget, our bills were getting paid, but the credit card bill kept increasing. Since I was the only one bringing in income, we took out some student loans to help with a portion of our living expenses. And the credit card bill continued to increase.
The “wake-up call”
The “wake-up call” is such a theme throughout many debt payoff stories. So, here’s mine.
I went to breakfast with two friends in December 2021, and one of them brought up high-yield savings accounts (HYSA). I had never heard of this type of account before and was shocked to learn that these savings accounts had a way better interest rate than a regular savings account.
How was I just hearing about this at 28 years old? My mind was blown!
I thought, what else don’t I know? So of course, that led me to deep dive into the world of personal finance. I consumed any book, video, blog, or podcast I could get my hands on. I read stories after stories of people paying off thousands of dollars’ worth of debt, leveraging credit card points for free travel, investing, and so much more!
It was so motivating. I was hooked! (And still am.)
Bret was open and willing for me to share with him what I was learning. We started realizing that for the last year and a half, we hadn’t been telling ourselves “No”. We had just been buying whatever we wanted, and we had the credit card bill and no savings to show for it.
We learned that we could pay off all our debt and it didn’t have to stay with us forever. We learned there was a way to use a credit card responsibly (we thought we were). We learned that we could even retire early. That one sounded real nice! We dreamed of having more time doing our hobbies, traveling and being with our friends and family. And if we ever had kids, we dreamed of being able to work part-time so we could be home more with them and available for school activities.
Knowing this, we started reining in our spending, trying to just be more “mindful”, but no major change was made.
We take on more debt
April 2022: People in our neighborhood were getting new fences. We started thinking, “Hey, we need a new fence, too…” In some areas it was broken, it hadn’t been stained so was rotting, and was 15 years old. We were also going to get an updated appraisal to see if we could get our primary mortgage insurance (PMI) removed after just two years of owning our home and thought a new fence might help.
A coworker told me she was using a home equity loan to buy a fence and to do some other home renovations. We investigated options and ended up opening a $20,000 home equity line of credit (HELOC) instead with about a 4% interest rate. We buy our fence which ends up being about ~10,000 and we were set on it…
The second “wake-up call”
When it was all said and done, we loved our fence. We still love our fence, it’s beautiful! (And it better be at that price!) We stained it and we believe it will last us for many years.
But we start talking again about our debt and how we probably didn’t need this fence right now. We know we didn’t need this fence right now. Our PMI was removed, and it could have maybe happened even without the fence. Who knows.
We began thinking we need to make some serious changes in the way we manage our money. We need to do more than just be “mindful” about our spending. We make a real plan. We plan to make an actual budget, stop taking on unnecessary debt, and take a break from using our credit cards for the foreseeable future.
May 2022: Beginning of our debt payoff journey
Since we were serious about our new money management changes, I documented how much debt we had so we could track our progress.
$277,721.41
Here was the breakdown:
$260,390.25 in student loans, Bret & I’s combined – various interest rates
$10,676.24 HELOC – 4% interest rate
$5,430.76 is from credit card spending – 4% interest rate*
$449 for furniture – 0% interest rate
$775.16 for Peloton bike – 0% interest rate
*We moved our credit card debt to our HELOC since our credit card was around a 25% interest rate.
July 2023: Current debt numbers
Our current debt balance is $251,195.39, * which are all student loans.
We have paid off a total of $28,026.02 of debt!
*Our current balance will increase to ~$255,000 once Bret gets his final student loan disbursement (more on that later).
I want to also mention that we do have our mortgage, but we aren’t trying to pay that down as quickly as possible for a few reasons: we have a 3% interest rate, we don’t plan on this being our forever home, and one day we might rent it out or sell it.
Actions that helped us pay off $28,026.02 of debt in 15 months
We found a budgeting method that worked for us
We realized we could live off my income alone and not take on anymore debt, but we would have to have a somewhat rigid budget.
Finding a budgeting method that worked for us took some time. I don’t know how many times over the years I have tried to track my expenses in a budget app or an excel sheet, only to find out it was too overwhelming and that I was still overspending!
I am a visual person and learned about the envelope budgeting method, so we decided to give that a try, but use a digital variation.
So, for our entire money management system we have 4 checking accounts and 2 savings accounts (short-term and emergency fund). Our checking accounts include bills, food and miscellaneous, and two personal spending accounts.
This may seem like a lot of accounts to some, but it has worked tremendously for us. I love having a separate account for each major category in our budget so I can easily see how much money we have left in a certain category without having to add every expense into an app or Excel spreadsheet. We are joint owners on all of these accounts.
We then use the zero-based budget method to determine how much goes into each account.
We do have multiple cards to manage, but the pros VERY MUCH outweigh the cons here.
And with our own spending accounts, we have a certain amount of money allotted to us each month, so we individually have some spending freedom. We don’t have to feel guilty and know this money is set aside specifically for our personal spending.
Cut expenses and increased our income
I know some people are tired of hearing about this recommendation, but it’s something that really did help us! We reined in our spending a bit but mostly we had to increase our income. At a certain point, there wasn’t much more to cut.
We didn’t have many streaming services, started to limit our eating out, we didn’t have car payments, and we meal planned and prepped. We did (and still do) aaalll the things. We had to increase our income somehow.
Ways we increased our income
My income increase
I continued with my second job as a social media manager and then started dog sitting.
I have been dog sitting for about 5 years and have primarily used the Rover platform to list myself as a dog sitter. I like this app because it’s easy to use and I can specify various services to offer (e.g., house sitting, boarding, drop in visits, day care, or dog walking).
It also allows me to mark which days I am available and then people reach out to me if I seem like a good fit and my availability matches with their needs! Setting up my profile took some time, but now that it’s done, everything else is fairly low maintenance.
I now just have to respond to inquiries in a timely manner and set up a meet and greet if it seems like a good fit.
I currently only offer house sitting and on Rover and I charge $65/night. Rover takes a cut, so I end up pocketing $52. I also have private clients who pay me directly, and I have gotten those by referrals from past Rover clients. I charge my private clients $40/night.
I recently increased my rates on Rover and have been slow to increase my price with my private clients because they’re loyal.
I don’t make a ton of money dog sitting, but I am able to make a couple hundred dollars a month. My schedule is very limited, but there are people with better availability who make significantly more than I do!
I love animals and we don’t have any due to our sporadic work schedules, so it’s a great way for me to spend time with pets and get paid, too!
Bret’s income increase
Last year, Bret decided to take a break from grad school and soon after, he was offered a summer job in Alaska.
When we first started dating, he used to spend almost every summer there working for a family who owned a set-netting fishery. His uncle had spent many summers in Alaska working for this family and one summer brought Bret to work with him. They would catch salmon and sell it to a buying station in their area.
He went up there for about 6 summers in a row, until he got too busy with school and couldn’t go anymore.
He hadn’t been to Alaska in over 5 years, but someone who worked for the buying station remembered Bret, called him, and asked if he’d be interested in working at the buying station! Since he was already on a break from school, he said yes and worked up there for 8 weeks.
We were able to put every paycheck he earned towards our debt because we could manage all our expenses on my income alone. It was also a great way for Bret to spend part of his summer and I was finally able to visit as I never gotten the chance in previous years.
House hacking
We also started house hacking! We had a spare bedroom and bathroom I would use for my office and occasionally, for guests. A friend of mine and her husband are really into the real estate space and gave us the idea to rent it out.
We weren’t comfortable with the idea of having a long-term roommate, and with both of us working in healthcare, we knew there was a need for short-term and furnished housing for travelling healthcare professionals.
For us, short-term meant renting for 1-6 months, but we were open to individuals staying longer if it worked well for everyone involved!
Some questions we had to address before renting:
Did we need a permit?
How much should we charge for the deposit, rent and pets?
What furniture and amenities are important for travelers?
Where should we list the room?
How to create a lease agreement?
In our county, we did not need a permit to rent out the room if we were renting for at least 30+ days at a time.
After researching rental prices in our area, I found rooms that were of similar caliber listed for $1,100 per month or more. We wanted to be competitive and so we initially settled on $900 per month and have steadily increased it. We have now landed on $995 per month which includes all utilities and internet.
We set the deposit at $995, with an additional $300 for a pet deposit, and no ongoing pet rent.
We wanted to upgrade the furniture in the room and IKEA was a great place for us to find affordable, durable, and aesthetically pleasing furniture. We made sure the room had a bed, large dresser, bedside table, and we kept my desk in there too.
I read it’s important for travelers to have their own TV available so they can unwind in their room. We were able to find a decently priced smart TV off Facebook Marketplace.
Furnished Finder is where we decided to list our room, which started out as a platform for traveling nurses to find furnished housing. It is now used heavily by many healthcare professionals, students, and professionals in other fields.
Travelers reach out to us through the Furnished Finder website and if the dates work out, we move forward with scheduling a video interview. It’s important for us to be able to talk to the person, even if it’s just over video, and we want them to see our faces and home in real time as well.
For the lease agreement, we used ez Landlord Forms, because they have leases for each state with specific information on what’s required to include.
We don’t ask for anything major from tenants. The most important things to us are that they are respectful of our space, don’t smoke in the house, and pay their rent on time. We also added a page at the end for tenants to add two emergency contacts in case we need to call someone on their behalf.
We have had 4 renters so far with the room being occupied for 13 out of the last 14 months. It has really helped us with our debt payoff goals and we have also met some awesome people through the process! We plan to continue renting it out for the foreseeable future.
Applied for in-state student loan help
My state offered a program called the Oregon Behavioral Health Loan Repayment Program where they help minorities in the behavioral health field, or those who serve them, pay back their student loans.
This program is funded by The Behavioral Health Workforce Initiative which has the goal of recruiting and retaining behavioral health providers who, “Are people of color, tribal members, or residents of rural areas of Oregon, and can provide culturally responsive care for diverse communities.”
To apply, I had to show I was employed and actively providing behavioral health services and give them detailed documentation about my student loans. I also had to answer two essay questions related to being a part of and/or working with communities who are underserved and how my training has equipped me with supporting these communities.
I applied last year and was a recipient of an award!
As a recipient, there is a two-year service commitment which means I have to continue providing some sort of behavioral health service during that time frame (which I planned to). Over the next two years, I will be getting ~$88,000 in quarterly disbursements to put towards my student loans. So far this year, I have received ~$11,000, and it’s been life changing to say the least!
Alongside this support, I am also pursuing Public Service Loan Forgiveness (PSLF) for additional student loan relief.
Managing our mental health while paying off debt
Since I am a social worker, I often think about how money and debt affect individuals’ mental health. It’s one of the reasons why I started my blog in the first place.
I realized managing money is a universal task and many of us don’t know what we are doing because talking about money is taboo. And when you have financial stress, it can really take a toll on your mental health. So, I wanted to share our journey in hopes of helping others.
Bret and I aren’t those individuals who want to avoid eating out and fun experiences until we are debt free. And, we are also privileged to not have to take those extreme measures either. It has been important for us to make this journey sustainable and not deprive ourselves of experiences while we are going through it.
Here’s how we are making our journey sustainable:
Still going out to eat
Budgeting for personal spending money, aka fun
Setting realistic debt payoff goals
Putting aside money for travel
Not comparing and thinking other people are better than us because they’re able to pay off their debt quicker
Tracking our debt payoff progress (we use Excel). With so much debt left to pay off, being able to see our progress is really motivating
Openly talking about our debt. Avoidance is a coping mechanism for many, for us, acknowledging and addressing it has been so freeing (but it wasn’t always this way).
Talking about our dreams and reminding ourselves why we want to do this in the first place
We know that if we eliminated going out to eat, budgeting for fun, or both, we could be paying off our debt much quicker. However, that sounds miserable to us. It’s worth it to still go out to dinner, travel, or buy plants (in my case) than to deprive ourselves of the joy these things bring.
We are making great progress and we know in time, we will be debt free.
Our debt payoff journey is not linear
A few months ago, we decided to take out $6,000 of student loans. Bret currently has a full tuition scholarship, so we are tremendously lucky in that regard, but he just learned about some conferences that would be really helpful to his professional growth. We have gotten $1,500 of this loan money already which is included in our current debt balance, but we haven’t received all of it yet.
We could have pinched and saved to avoid taking on any of this debt, but that would have caused me to work more than I currently am. Again, not in line with our current goal of making this journey sustainable!
We were very intentional about how much to take out. We estimated how much he would need for a few conferences and declined the rest. We even opened a separate savings account for the money to make sure it didn’t get accidentally spent on anything.
I’m SO proud of us for that!
The goal here is progress not perfection. So cliche, I know. But we are learning how to think critically about our money, spend thoughtfully, use our money as a tool to reach our goals, and enjoy our life along the way. And right now, that meant taking on a little more debt.
We are moving in the right direction, and we know when he starts working, that will really accelerate our debt payoff journey since we have proven to ourselves we can live on my income alone.
Our plan going forward
Bret is still in school which means his loans are on deferment, so we currently have his on the back burner.
With the loan payment assistance I am receiving, it’s allowing us to put any extra money we have each month towards our savings. Our priority right now is building up a good emergency fund of about $16,000 (~4 months’ worth of expenses).
This has been difficult because of inflation and just little emergencies that keep popping up, but we are slowly making progress.
I am also prioritizing investing in my employer retirement plan, but only up to the amount that gets me my employer match which is 6% of my income.
Bret will be graduating in 2025, so at that time, we will pivot to incorporating his loans into our budget. Our goal is to be debt free by 2028.
It will take a lot of discipline and persistence, but I think we can do it. I am manifesting it!
We want to continue to learn, implement, and grow. We want to keep having transparent discussions about money and building our money foundations. And I personally want to continue sharing our journey with hopes of inspiring, encouraging and educating others. Here’s to sharing the wealth.
Do you have debt? What are you doing to pay it off?
Taylor is a social worker and personal finance blogger at Social Work to Wealth where she shares tips, resources, and lessons learned on her family’s journey to paying off $277,000 of debt and retiring early. She hopes to inspire and empower social workers with financial education so they can have a better relationship with their money. When she’s not working or blogging, you can find her traveling, gardening, trying a new restaurant, or buying too many plants.
VA disability pay rates in 2023 range between $165.92 to $4,295.92 a month. The Department of Veterans Affairs (VA) publishes the rates annually. The severity of the disability and family circumstances can affect the rate. A claim takes 104.1 days on average to complete
.
The veterans disability compensation programs gives qualifying veterans a tax-free monthly payment to help them financially
. The program supports veterans who were disabled or had a condition that was made worse during military service.
Here’s how veterans disability payments are calculated, how to determine how much you might receive in benefits and how to apply for VA disability.
How are VA disability compensation rates calculated?
The VA calculates a veteran’s disability payment by considering three factors:
The severity of the veteran’s disability.
The number and types of dependents the veteran has.
Whether a family member qualifies for Aid and Attendance benefits.
VA disability payments start with a base rate, which rises with the severity of the disability and the types of dependents
. The VA then adds extra money to the base rate if the person’s spouse qualifies for Aid and Attendance benefits, or if the veteran has multiple dependent children.
Severity of the disability
The VA assigns a disability rating to a veteran after reviewing evidence submitted as part of the benefits application or from military records. The VA requires applicants who don’t have enough medical evidence to support their claims to have a compensation and pension exam — sometimes referred to as a C&P
. This exam confirms that a disability is related to military service.
Disability ratings are assigned as percentages. Specifically, disability ratings rise in 10% increments up to 100% (fully disabled). The percentage represents how much the disability decreases the veteran’s overall health and ability to function.
🤓Nerdy Tip
Veterans who have more than one qualifying disability get a combined disability rating. This rating is not as simple as adding the disability percentages together. For example if a veteran has one disability rated at 50% and a second disability rated at 30%, the combined rating is not 80%. The VA determines a combined disability rating, which it then uses to calculate the monthly payment.
Number and types of dependents
The VA adjusts disability rates for veterans who are financially responsible for a spouse, children or parents in any combination. The VA requires proof of their financial dependency.
A spouse is anyone you have legally married, including someone of the same sex as you. The VA recognizes common-law marriages as well
.
To claim a child as a dependent for VA disability, the child can be biological, adopted or a step-child. Dependent children must be one of the following:
Under 18 years old.
18 to 23 years old but unmarried and enrolled full-time as a student.
Deemed permanently disabled before turning 18.
Aid and attendance status
Certain family members of qualifying veterans are eligible for Aid and Attendance if they:
Require assistance to perform daily care activities such as bathing, preparing food and taking medication.
Live in a nursing home because of physical or mental incapacity.
Are bedridden.
Have 5/200 visual acuity or less in both eyes with glasses or contacts.
Have a concentric contraction of vision to 5 degrees or less.
Aid and Attendance is available for the:
Spouse of a living veteran.
Surviving spouse of a deceased veteran.
Permanently disabled children over age 18 who became disabled before turning 18.
Surviving parents that already receive Parent’s Dependency and Indemnity Compensation.
If a veteran’s family member qualifies, the VA tacks on an additional amount to their monthly payment.
2023 Veterans Disability Rates
Veteran disability rates are paid monthly. Because they follow the cost-of-living allowances Social Security applies to its benefits, every time Social Security benefits are recalculated to account for inflation, veteran disability rates change as well. This means that veteran disability pay rates can differ from year to year.
There are two categories of veteran disability pay rates: those for unmarried veterans and those for married veterans. Within each category, the combinations of disability rating and different types and number of dependents determine a veteran’s monthly payment. Because married veterans receive higher rates than unmarried veterans, it is important to double-check that you are looking at the correct table when looking up your rate.
VA disability rates for unmarried veterans
VA disability rates for married veterans
Additional amounts
Veterans with spouses who qualify for Aid and Attendance benefits, and veterans with more than one dependent child get additional funds each month.
Extra funds for spousal Aid and Attendance
Extra funds for additional dependent children
Examples of calculating monthly VA disability payments
Some monthly payment calculations will be more complicated than others, especially those where a veteran has several dependents. The three example scenarios below are calculated using the amounts in the tables above.
Example 1: Unmarried veteran with dependent children and a dependent parent
John has a disability rate of 40% and is unmarried. He has shared custody of three children, and his dad lives with him. Two of his children are under 18, and one child is over 18. His disability payment is calculated as follows:
Base rate: $849.86
Additional child under 18: $40.00
Additional child over 18: $129.00
Total: $1,018.86
John’s base rate is for a veteran who has one child and one parent as a dependent but no spouse. Because one child is included in the base rate, he can only claim the additional amounts for two children. The two children have different rates because one is under 18 and the other is over 18. No additional amount is provided for his dad, because he is included in the base rate.
Example 2: Married veteran with one child
Leanne has a disability rate of 80%. She is married with one child under 18. Her husband does not qualify for Aid and Attendance.
Base rate: $2,212.15
Total: $2,212.15
Leanne’s rate is only her base rate without additional amounts, because her husband and child are included in the base rate.
Example 3: Married veteran with spouse who needs daily assistance
Sarah has a disability rating of 30%. Her wife requires medical aid to help with daily activities when Sarah is not at home, which qualifies her for Aid and Attendance. Her wife has one child under 18 from a previous marriage.
Base rate: $612.05
Aid and Attendance: $56.00
Total: $668.05
Sarah’s base rate includes her wife and her step-daughter. Because her wife qualifies for Aid and Attendance, Sarah receives an additional amount that is also based on her disability rating of 30%.
How to apply for VA disability compensation
If you believe you are eligible for veteran’s disability pay, you’ll need to file a claim for Veterans Affairs to review. Here are the steps to apply.
Decide on an application method. You can submit your application online, by mail, in person at a VA office or with the help of an accredited representative. If you are submitting your claim by mail, you’ll need to download VA Form 21-526EZ and fill it out. Regardless of which method you use, you’ll need to submit supporting documentation. If you need help filing the application and supporting evidence, you can call your regional VA office to ask for assistance.
Gather documentation to support your application. This can include medical records from VA or private doctors and hospitals, as well as statements from people who are familiar with your disability. You do not have to submit your supporting documentation with your claim; however, the VA says that sending in all of your documents together with your application can help them work through the process more quickly.
Submit documentation.Once you have all of your documentation together, submit it with your application to complete your claim. If you filed an Intent to File form or submitted your claim without evidence, gather the documentation and submit it to support your claim.
🤓Nerdy Tip
If you do not have all of your documentation together but want to file a claim, use an Intent to File form instead. The date on which you file the claim becomes your effective date and is still active as long as you complete your claim within 365 days of the effective date. You might qualify for backpay.
Frequently asked questions
How long does it take to complete a claim for veteran’s disability?
The VA says that the average time to complete a claim is 104.1 days as of July 2023, which is about three and a half months.
Am I guaranteed veterans disability if I was injured during military service?
No, every claim for VA disability must be reviewed and supported with medical documentation.
Loan quality and audit services company QC Ally has appointed Jeffrey Flory as its new chief executive officer, the company said Thursday.
The news comes eight months after the appointment of Nicole Booth as as company CEO. She left in August.
“I am humbled to take on this role and help bring the company’s vision to fruition,” Flory said in a statement. “QC Ally is invested in providing high-quality outcomes in both the service and the proprietary technology it offers to clients. The combination of flexibility and world-class service are a legacy I look forward to expanding on in the years to come.”
Jeff Flory, CEO of QC Ally
Prior to QC Ally, Flory held several leadership positions in the risk and compliance segment. He was SVP of “Risk and Compliance Solutions” at Interthinx/First American, and then became a partner in the mortgage advisory practice at Baker Tilly. Overall, he brings 30 years of mortgage lending and servicing experience to the company.
“Since investing in QC Ally last year, we have been entirely focused on enhancing the Company’s offerings through continued investment in innovation and strategic M&A,” Adam Doctoroff, a partner at Narrow Gauge Capital, said in a statement. “We welcome Jeff to our management team and believe that his industry contacts and knowledge make him perfectly suited to spearhead those efforts.”
Earlier this year, QC Ally named Melissa Peregord as the company’s new chief growth officer. Its president and COO Donna Gibson was named a 2022 HousingWire Vanguard.
A shell company, also called a shell corporation, refers to any legally structured corporation that has no meaningful assets or business operations. In popular culture, they’re often used to conceal illegal businesses, or to conceal the owners of a business from law enforcement, the public, or both. However, shell companies themselves are not illegal, and they do have some legitimate uses.
As business entities, shell companies exist to protect, and sometimes to conceal (or at least misrepresent) the assets of the shell company’s owner. But there’s nothing necessarily illegal about shell corporations themselves. It’s important to not only understand the definition of a shell company, but also to recognize how and why they’re used by businesses and people.
How Are Shell Companies Created?
There is more than one way to create a shell company. Most often, the people or corporations that launch new shell corporations use a registered agent in the country where the company will have its legal headquarters. So, in the United States, shell companies would need to register with the Securities and Exchange Commission.
In most countries, the agent must register his or her name, and the name of an owner or a shareholder director. The cost of creating and legally registering a corporation will vary from country to country, from as little as a few thousand dollars to as much as several hundred thousand dollars.
Being “hollow,” by definition, shell companies can do many things. They can open bank and brokerage accounts. They can transfer funds in and out of their home country. They can buy and sell real estate or other companies. And own copyrights and earn royalties on those copyrights. 💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.
3 Uses of Shell Companies
People and corporations use shell companies in a wide range of legitimate businesses for legitimate reasons. Those might be used as a vehicle to raise funds, as a legal entity to attempt to take over another business via a reverse merger, or as a legal entity to give form to a company that intends to go public.
1. Tax Benefits of Shell Companies
Many shell corporations operate in a legal gray area, and it’s possible that corporations and wealthy individuals may use them to avoid taxes.
Many companies have found ways to move their profits to offshore shell corporations to take advantage of less expensive, or more permissive tax regimes in other countries (similar to how some states may be more tax-friendly than others). American corporations might set up shell companies in countries with inexpensive labor, where they have already begun to outsource some of their operations.
Corporations aren’t the only ones that use shell companies to avoid paying taxes. Wealthy individuals around the world may also use shell corporations, domiciled all over the world, to hide their earnings and their wealth from the governments of the countries in which they prosper.
2. Less Risk, More Opportunity
Tax avoidance isn’t the only reason a corporation would set up a shell corporation. It might create a shell company to operate in a country, while protecting its other operations from the legal, political, and financial risks related to that country. That way, if something goes wrong in the country where it operates, the parent company can limit its exposure by existing — at least on paper — offshore.
A corporation may also set up a shell corporation in another country to gain a window into new regions. A business might set up a shell company in Panama or Switzerland to gain access to the local business community, in order to generate contacts and information that would lead it to business opportunities in Latin America or Western Europe.
3. SPACs
While shell companies come up in the news in relation to questionable tax-avoidance schemes, in recent years, they’ve also been mentioned alongside special purpose acquisition companies, or SPACs.
At any given time, there may be hundreds of shell companies that qualify as SPACs — which may be a reason that SPACS were so popular for a couple of years in 2020 and 2021. These are companies formed exclusively to raise capital via an initial public offering (IPO), which will then purchase a company already in operation. SPACs are a type of “blank check company.”
These companies issue an IPO, then hold the money in a trust, until the SPAC management team chooses a company and buys it. And if the SPAC doesn’t find a company to buy, or can’t buy the company or companies it likes within a pre-set deadline — often two years — then the managers promise to liquidate the SPAC and give investors their money back.
Recommended: What Is A Backdoor Listing?
Example Shell Companies
An example of a shell company could be as follows.
Say there’s an entrepreneur that’s looking to raise money before they officially launch a startup — maybe the next big emerging growth company. They may create an LLC, which is a business entity, that doesn’t have any assets or employees. It only exists on paper. But the business entity — a shell company — can be used to store the money being raised for the startup prior to its launch.
In effect, the company itself is merely a shell used to hold cash until it’s ready for use. It’s not really a functional business in the traditional sense.
Shell Companies and Shady Dealings
While there are many legitimate uses for shell companies, as outlined, bad actors also might use them to shield their operations and their assets from authorities. And as different jurisdictions compete for business, new loopholes emerge on a regular basis. In Panama, the British Virgin Islands, Nevada and Delaware, to name only a few, there are strong laws that prevent the government from revealing the beneficial owner of a given shell corporation.
And for creative financiers, there are always new ways to add layers of anonymity, such as phony company directors, who agree to sign their names for a few dollars. Among professionals who specialize in such things, there are ways to find would-be board members, and for countries and states with convenient tax and privacy laws.
Are Shell Companies Legal?
Yes, shell companies are legal, and are most often used for perfectly legal purposes. While they can be used for illegal purposes, a shell company is generally used for a more or less boring or run of the mill business purpose — as discussed in the previous example above.
Shell Companies vs Holding Companies
Though there may be some superficial similarities, shell companies and holding companies are not the same thing. As discussed, shell companies may be formed to serve as empty entities that may be used to take advantage of different taxation regulations, for example. A holding company, on the other hand, is a parent company — holding companies holds or owns other companies within it, like an umbrella. It allows its owners to control numerous businesses without necessarily actively managing any of them. 💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.
The Takeaway
Shell companies are legal business entities that are often used for perfectly legal reasons, and often to reduce tax liabilities or store funds. Shell companies can be used for illegal purposes, too, which is what they’re often associated with.
Most investors wouldn’t use shell companies in their day-to-day trading, but they might consider allocating part of their portfolios to a SPAC. It’s important to remember that these are speculative, risky investments, so they don’t make sense for every portfolio.
Ready to invest in your goals? It’s easy to get started when you open an investment account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
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FAQ
Is a shell company legal?
Yes, shell companies are legal, and are generally used for perfectly legal purposes. A shell company is simply a business entity that has no assets or employers, or engages in much or any meaningful business operations.
What is an example of a shell company?
An example of a shell company could be an LLC formed by an entrepreneur planning to launch a startup. The entrepreneur files the paperwork to create the LLC, and then uses it simply to store funds until the startup launches, rather than have the LLC engage in any business itself.
What is the difference between a holding company and a shell company?
Holding companies are parent companies, or umbrella organizations, that often have multiple businesses running underneath or within them. Shell companies do not have assets or employees, or any meaningful business operations.
Photo credit: iStock/akinbostanci
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This article is part of a series put together by the Total Mortgage marketing team that provides loan officers and other sales professionals with a crash course in marketing and self-promotion. To read other articles in this series, click here.
Mastering social media isn’t all about sharing articles and favoriting posts. It becomes a whole different game once you factor in ads.
In this article you’ll learn how to decipher your target audience by analyzing your demographics. I’ll also show you some real life examples of case studies put into action. If this doesn’t satisfy your social craving, keep an eye out for our social media advanced training course!
LinkedIn
Understanding Your Audience
Generally, your LinkedIn audience is made up of your business interactions, former alumni, recruiters, and other professional contacts. Staying aware of the message you send is going to be important, and that means having a clearer picture of who uses LinkedIn. Here’s a hint: keep it professional.
Demographics
Social Media Network Use Cases
Let’s take a look at how different companies advertised on LinkedIn and reaped good results.
Example 1: CommVault had a powerful ad because it appealed to consumers’ emotions. They chose to stick to a single line of text, keeping in mind that people have short attention spans these days. The picture chosen fits this ad theme because it gives off the idea that CommVault understands that technology can be stressful sometimes.
Take away: A simple line of text and a great image can go a really long way when capturing the attention of your audience.
Example 2: Salesforce Marketing Cloud did a great job of targeting a specific audience to get results. In the below ad they targeted not just any marketers, but senior level marketers. The headline asks a question and tells you how you can solve it.
Take away: This ad works because it’s highly targeted and captures the audience’s attention by asking a question that needs an answer.
Example 3: Prudential comes out on top because they embedded a video into this LinkedIn ad. Video is, to put it simply, the next big thing. Just look at Periscope, Vine, Boomerang, and Snapchat—all social media platforms built for sharing videos. Videos hold attention spans more than typical text ads and have been proven to have better click-through and conversion rates.
Take away: Video is proven to work. You need to have the right targeting and message set in place.
Facebook
Understanding Your Audience
It’s safe to say that most people these days have a Facebook account. And that’s good news for you. Be aware that audience is still a key factor here, though, and will be on any platform.
There are two different types of profiles you can have as a single Facebook user—the personal Facebook account and the business related account. If you only choose to have one personal account, be wary of what you post. If your main focus for having a Facebook is using it for business related endeavors, then keep it professional. You don’t want to end up reminiscing with your college buddies at the expense of your potential clients.
Demographics
Social Media Network Use Cases
Example 1: This is a great Facebook ad because it’s very clear what the advertiser wants you to do. “Get 3 Bottles For $19!” It appeals to wine lovers and it’s simple. The discount entices you while the sub-text of the ad provides a strong call-to-action.
Take away: Doing the basics well goes far in a Facebook ad.
Example 2: NatureBox made great use out of the photo ad. The image shows exactly what you’re getting: a free trial and various health orientated snacks. The image is very colorful, and enticing enough to appeal to a large range of people. The hook is very clear in this ad, “Free Trial,” while the sub-head makes connects with the viewer?
Take away: Ads with good imagery and a strong hook really stand out with target audiences.
Example 3: In the above ad, Shutterfly used a multi-product ad perfectly. This works because it has all the components that make up a great ad. It’s visual, relevant, enticing with great pictures, and has a good call-to-action. The gentle hues of blue and grey backgrounds mix well with the eye-catching orange logo and background. The hook is consistent throughout all the content as well:40% off. Plus, it has a cat.
Take away: If you want to incorporate a multi-product ad into your social media strategy, than make sure you keep the components above in mind.
Twitter
Understanding Your Audience
Twitter has 310 million monthly active users. This means your chances of connecting with people in your industry are pretty good. Having a large following is always a step in the right direction, but don’t make the mistake of thinking that’s all you need.
Timing your tweets to reach the most people–and making your chances of retweets and likes more likely—is another important part of a good Twitter strategy. If you’re not sure how to even build a Twitter following you should check out my previous blogs (Social Media Basics and Maintaining your Social Presence) for tips on how to expand your following and reach the right kinds of people.
To really get the best results from your follower base, keep an eye on your Twitter Analytics. Thankfully there are tools to help with that. You can use Tweriod, Twitter Analytics, or Audience to analyze your tweets, figure out which are performing the best, find out when your followers are online, and plan out your next moves. The best thing about these resources is that they have free plans available.
Demographics
Social Media Network Use Cases
Example 1: Papa John’s promoted tweet worked because it incorporated all the elements of a great Twitter strategy. It was timely, relevant, and could be shared easily. It incorporated a holiday all about love with a food most people love–pizza. The hashtag #HeartShapedPizza, meanwhile, gave fans and customers a way to interact with the brand and share.
Take away: A good tweet is often part of a larger social strategy. However, if your sole purpose is just to promote your brand, Twitter could be a great place to start. Coming up with a creative way to stay relevant during a holiday is what makes brands stay on top.
Example 2: This Old Spice Twitter ad worked because it brought a past character, the Old Spice man, out of retirement. This ad was connected to another social campaign (Commercials/YouTube Commercials.) It also works because it incorporates a clever hashtag and a callback to ads on TV or the internet.
Take away: Being memorable is important. If done right, you’ll be able to trade on that recognition for a long time to come. Old Spice’s commercials, for instance, focus on bizarre and funny shenanigans to make a lasting impression.
Example 3: Just like the above examples, Volkswagen USA did a great job of incorporating a relevant tweet with a live social campaign. The above ad was tied into a commercial that unveiled the New Beetle, during the 2011 Super Bowl. This ad performed so well because Volkswagen is a known brand and everyone earns more, “social klout” airing commercials on Super Bowl Sunday.
Take away: Twitter ads perform the best when they are a part of a bigger social strategy. However, if you’re just trying to stay relevant, try sharing tweets on holidays and including a catchy hashtag or clever wording.
Google+
Understanding Your Audience:
Though originally intended as a Facebook alternative, most users consider Google Plus a business-related platform where you can connect with other professionals in your industry and add them to groups, collections, or communities. This means you should expect your audience to be more professional, like with LinkedIn.
Demographics
Social Media Network Use Cases
Winning at Google Plus means having a killer page, content, and promotions. Below are a few pages that excel at all three.
Example 1: Android’s page is the most popular business page on Google Plus with over 140,000 fans. They keep their audience engaged by posting frequently and using “flash” promotions such as their 10 cent app promotion and Google music promotions. Every post they share gets around 2,000 shares and more than 3,000 +1’s.
Take away: Engagement, engagement, engagement is the key to any successful Google+ social campaign. As long as you constantly update your page and share relevant information about your brand you will be able to build a following and use social to your advantage.
Example 2: The NASA page is another example of Google+ greatness. It is updated between 5 and 15 times a day with recent news, photos and videos which helps them stay on top.
Take away: Just like Android, NASA does a great job staying relevant to its fans by constantly posting content, videos, and pictures of NASA’s latest missions and experiments. They know their audience and always stay true to their brand which helps them get their content shared and +1.
The Next Steps
Learning what and when to post on social media is a skill you need to master before sharing content blindly. Of course, that’s easier said than done.
If this series of blogs didn’t answer all your questions, keep an eye out for our Social Media Advanced Course. During this course you will learn the nitty-gritty of social media and what it takes to truly crush it on social media as a loan officer or realtor. We’ll update this post with more info when it goes live.
You can also learn more about what the Total Mortgage marketing team does for our loan officers by checking out other articles in this series, or by visiting our career portal.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
In our latest real estate tech entrepreneur interview, we’re speaking with Nelson Lau from PropertyQuants.
Who are you, and what do you do?
I’m Nelson Lau, co-founder and CEO of PropertyQuants. I have a PhD in Decision Sciences and worked in quantitative hedge funds and high frequency trading firms. In quantitative trading, we used computer algorithms to analyze large amounts of data on a wide universe of potential investments to find the best opportunities globally. PropertyQuants is bringing quantitative investment strategies to real estate. We harness data at scale to find the best investments – globally.
What problem does your product/service solve?
It’s difficult to figure out the best real estate investments globally. Real estate practitioners only know the best investments within a limited local area and sector.
This is not because of a shortage of data. The issue is that the amount of data needed to find the best investments globally is beyond human capacity. Computerized statistical methods need to be applied to harness data at scale. But, most real estate companies lack the toolsets and expertise to do this.
This is where PropertyQuants comes in. We crunch large amounts of data to produce a granular understanding of property market performance. We produce location-based scores based on factors such as commute times, and relate these to prices and yield. We also use these to understand how changes – such as the opening of a new train line – can impact future investment returns. We predict investment returns years into the future.
All our products are customizable to match users’ investment mandates and objectives, as well as incorporating any proprietary data they have. We help buy side institutions identify the best locations to invest, know when to buy and sell, and justify their decisions based on hundreds of factors. Investors can rapidly screen and prioritize deals, responding faster to good opportunities and avoiding wasted effort on bad ones. Limited partners in real estate funds can understand fund managers’ market exposures versus manager skill, and determine the best portfolio of funds to invest in.
What are you most excited about right now?
PropertyQuants has just completed the Colliers Techstars Proptech accelerator program. We’ve struck data partnerships, and also developed business and mentorship relationships with hundreds of individuals. I’m excited about where these new connections will take us – already there is a long list of interesting opportunities that we are discussing and prioritizing within our busy work plan for the year ahead.
What’s next for you?
I’m working on scaling the company, by taking the following concrete actions. First, building our consortium of data partners, who may earn revenue as we use their inputs for our clients. Second, leveraging the company’s network of real estate contacts to connect with potential clients. Third, thought leadership efforts. PropertyQuants has been awarded a significant grant from a government agency in Singapore to develop our products – and will present these at conferences and seminars.
I’m most excited about the step after that. The company will use what we learn to build trading systems, supported by historical simulations, investing in publicly listed Real Estate Investment Trusts. This REIT-trading strategy will fill a market void – producing the world’s first quantitative real estate fund.
What’s a cause you’re passionate about and why?
I’m passionate about people having the opportunities to move towards self-actualization. This doesn’t always have to be achieved by finding a job that matches your interests, or starting a company. In fact, many people are very serious hobbyists at one or more pursuits. I’m enthusiastic about seeing individuals have outlets to exercise these drives.
I’ve founded a group called LiquidSupperClub. It’s centered around drinking gatherings – which are a great way to make friends. But, we’ve also had home bartenders serve craft cocktails, home craft beer brewers test out their latest creations, aspiring sommeliers lecture and serve some really select wines, and much more. It’s always great fun, and for the host of the night – a really fulfilling experience.
Thanks to Nelson for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
Your job in real estate is to be a problem solver. There is no greater problem for a motivated seller than figuring out why their home didn’t sell! You are a real estate professional, they have a home to sell. It makes a lot of sense for you to be speaking with each other.
If you do not yet have the wealth you desire and deserve, it’s simply because you have yet to figure out how to help enough people reach their goals. When you help enough people achieve their goals, achieving yours will follow!
The most logical prospect for listings in any real estate market is the homeowner of an expired listing. They clearly have a desire to sell and have demonstrated the willingness to list.
Expired Math. Let’s say you are committed to earning while you learn, that you become only somewhat efficient at prospecting expired sellers, somewhat proficient with the scripts and closing, and you win some of the time… The math is still on your side!
Let’s break down the numbers:
When you have 10 conversations per week with expired sellers, two to three will relist the property immediately. At least one will list with you. When you do this just two weeks per month, using the average sale price in the U.S. today of $400,000, netting you $9,600 after 20% expenses per transaction, that’s 2 x $9600/month = $19,200 per month x 12 months = $230,400. This is if you are only somewhat OKwith this skill. Earn while you learn. As you get incrementally better, so will your expired math.
Secret: Many of our coaching clients can set one expired appointment per day, take two listings per week, and are grossing over $1 million per year. why? Because it’s not just the expired listing that you are selling, it’s the additional business it creates for you. You can sell that listing, generate buyers from your marketing, open houses, and prospecting around that listing, then lather, rinse, and repeat.
The ratios of contacts to conversions are the best of any opportunity you have in real estate. When you’re goodat the script, one in 20 will turn into listings for you. When you’re greatat the script it will be 1 in 10 — on some days even better than that. It’s extremely efficient.
Expired listings have been market tested. You know what the wrong price is in most cases. Sometimes you can relist at the same price and sell right away. Either way, the days on the market for relisted expireds are way less than fresh listings, especially in a shifting market. You can see this when you monitor your MLS hot sheet daily. You’ll see a home expire, get relisted, and sell in 30 days or less in most cases.
The agent you would have competed against has failed to sell the home. The seller is now serious about getting a fresh approach from someone who will solve their problem. They’re now open to listing with someone they don’t already know.
The seller of an expired home will correct any negative feedback for you when you relist it, versus resisting when it was a fresh listing. They are much more ‘coachable’ and motivated. They’ll often say, ‘Just tell me what to do to get this done!’
The listing will create more business for you as a result of all of your efforts to sell it.
The scripts are logical and easy to learn. Remember that you’re there to solve a problem, speaking to (almost always) a very motivated seller! Don’t wing it. Instead, follow a systematic approach, asking logical questions which will lead you to a prequalified appointment and then your next new listing.
Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie of Premier Coaching have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.
Your job in real estate is to be a problem solver. There is no greater problem for a motivated seller than figuring out why their home didn’t sell! You are a real estate professional, they have a home to sell. It makes a lot of sense for you to be speaking with each other.
If you do not yet have the wealth you desire and deserve, it’s simply because you have yet to figure out how to help enough people reach their goals. When you help enough people achieve their goals, achieving yours will follow!
The most logical prospect for listings in any real estate market is the homeowner of an expired listing. They clearly have a desire to sell and have demonstrated the willingness to list.
Expired Math. Let’s say you are committed to earning while you learn, that you become only somewhat efficient at prospecting expired sellers, somewhat proficient with the scripts and closing, and you win some of the time… The math is still on your side!
Let’s break down the numbers:
When you have 10 conversations per week with expired sellers, two to three will relist the property immediately. At least one will list with you. When you do this just two weeks per month, using the average sale price in the U.S. today of $400,000, netting you $9,600 after 20% expenses per transaction, that’s 2 x $9600/month = $19,200 per month x 12 months = $230,400. This is if you are only somewhat OKwith this skill. Earn while you learn. As you get incrementally better, so will your expired math.
Secret: Many of our coaching clients can set one expired appointment per day, take two listings per week, and are grossing over $1 million per year. why? Because it’s not just the expired listing that you are selling, it’s the additional business it creates for you. You can sell that listing, generate buyers from your marketing, open houses, and prospecting around that listing, then lather, rinse, and repeat.
The ratios of contacts to conversions are the best of any opportunity you have in real estate. When you’re goodat the script, one in 20 will turn into listings for you. When you’re greatat the script it will be 1 in 10 — on some days even better than that. It’s extremely efficient.
Expired listings have been market tested. You know what the wrong price is in most cases. Sometimes you can relist at the same price and sell right away. Either way, the days on the market for relisted expireds are way less than fresh listings, especially in a shifting market. You can see this when you monitor your MLS hot sheet daily. You’ll see a home expire, get relisted, and sell in 30 days or less in most cases.
The agent you would have competed against has failed to sell the home. The seller is now serious about getting a fresh approach from someone who will solve their problem. They’re now open to listing with someone they don’t already know.
The seller of an expired home will correct any negative feedback for you when you relist it, versus resisting when it was a fresh listing. They are much more ‘coachable’ and motivated. They’ll often say, ‘Just tell me what to do to get this done!’
The listing will create more business for you as a result of all of your efforts to sell it.
The scripts are logical and easy to learn. Remember that you’re there to solve a problem, speaking to (almost always) a very motivated seller! Don’t wing it. Instead, follow a systematic approach, asking logical questions which will lead you to a prequalified appointment and then your next new listing.
Tim and Julie Harris host a podcast for real estate professionals. Tim and Julie of Premier Coaching have been real estate coaches for more than two decades, coaching the top agents in the country through different types of markets.
This article is part of a series put together by the Total Mortgage marketing team that provides loan officers and other sales professionals with a crash course in marketing and self-promotion. To read other articles in this series, click here.
Good business doesn’t change.
Or does it?
As the market recovers from the housing crisis, many loan officers and housing professionals are making the mistake of trying to return to a pre-crash business model.
Pre-crash, there was no such thing as a smartphone. Your average homebuyer hadn’t grown up with the internet. Most transactions were conducted over the phone, maybe with an email or two here and there. Unfortunately, this isn’t 2005. Reaching today’s homebuyers requires a different set of skills.
This guide will help start you down the right path.
Meet the next generation of homebuyers
You’ve probably heard the word “Millennials” thrown around to describe today’s college kids and recent grads, but that moniker actually applies to anyone born from the early 80’s up until around 2000.
So while one of the biggest myths out there right now is that Millennials are still years and years away from buying their first homes, that’s simply not true. They’re already here.
So is the intent to buy homes. According to a 2014 survey conducted by Fannie Mae, 76% of younger renters actually think that owning is more sensible than renting in the long term.
What’s more—there are a LOT of them. Millennials number around 76.6 million, more than even Baby Boomers. In a few years, they’ll make up a majority of buyers, and without an understanding of what separates them from past generations, you may find yourself struggling.
Marketing to Millennials
There’s one thing that will never change: a house is still a huge purchase, especially for a generation crippled student loan debt.
Winning over Millennials will be an uphill battle for most loan officers, as they may be the toughest generation to market to yet. In a 2012 Pew Research Center survey, just 19% said most people could be trusted, compared with 40% of Baby Boomers.
To earn the trust of Millennials, you’re going to have to be able to:
Meet them halfway, on the platforms they use most.
Be fast, accurate, and personable.
Promote yourself in ways that make them feel involved, understood, and educated, not marketed at.
Understand what they value and promote accordingly.
If all that has you scratching your head, don’t worry. We’ll go through the basics components of a good marketing plan next.
Going beyond the phone
Traditionally, the phone has been the key point of contact when it comes to mortgages. Regardless of where the lead came from or how it reached the loan officer, the goal has always been to get that lead on the phone.
But Millennials are much less likely to respond to offers of phone calls so you can talk about their concerns. In fact, many will try to get out of talking to you completely. A greater reliance on personal cell phones over a family landline has turned talking on the phone into a much more personal act.
Many other older marketing tactics also won’t work, either because younger generations have started to abandon the medium or grow wise to marketing lingo:
Direct mail
Radio ads
Print ads
Even email marketing can backfire if not done right. Millennials have grown up sifting through junk mail. They’ll have no problem deleting anything that isn’t relevant to their needs or interests. To learn more about email marketing the right way, our guide on email lead nurturing is a great start.
The importance of a CRM
We’ve already touched on Customer Relationship Management tools (or CRMs) in our blog on referral partners, but here are the basics.
CRMs are built to keep all of your contacts, accounts, leads, referral partners, and emails in one place, organized and ready for you. A CRM isn’t the sort of platform you can wave around to impress prospective clients or referral partners, but it will help you stay on top of all the channels you manage on a day to day basis.
There are tons of platforms out there. If a CRM sounds right for you, shop around before settling on one. At Total Mortgage, we offer our loan officers a few different CRM options just so they can find one that fits their workflow.
Creating content you can market
A great way to build a relationship with potential clients? Give them something valuable, no strings attached, with your name on it. This builds goodwill while attracting potential clients to a space you control—generally a blog or newsletter.
This isn’t a new idea. Way back in 1904, for instance a struggling Jell-O gave out free cookbooks full of Jell-O recipes, only to see their sales balloon to over one million (on a ten cent product).
The trick, of course, is knowing what sort of content will be most valuable to the kind of people who are likely to become your customers. That’s something we can definitely help you out with. We’ve run a popular industry blog for almost 10 years. Our guide to content will be a great jumping off point.
Once you’re ready to post, you encounter a whole new set of problems. In order for your content to reach as many people as possible, you have to make it friendly to search engines like Google. If you’re wondering how we do it, this guide on on-page optimization and this other one on generating links to your page will be a treat for you.
If you’re looking for a way to stand out from the crowd, though, you might want to check into our guide on marketing videos. Total Mortgage creates video for a wide range of uses, and we’ve found that it can really make a difference (especially if you use our tips).
Social media and you
Social media isn’t a hot new fad anymore—it’s a fact of life for a large percentage of the population, Millennials and Boomers alike. That makes it a great way for you to connect directly with your audience and give potential customers a feel for who you are.
Most companies big and small have a Facebook page these days. That’s a great first step, but it’s not going to get you far. If you’re wondering where to go next, we have some great resources on how to get started on other platforms and engaging with followers.
Of course, gathering followers and interacting with your peers isn’t the only thing social media is good for. It also makes for a great advertising platform. Facebook especially offer tons of options for targeting your ads to a specific audience. Take a look at our primer on social advertising here.
Mobile and apps
Housing is a slow and steady kind of industry. Many smaller companies and brokers still haven’t made the jump to online lending, much less considered the part mobile will play in their future.
However, that future is coming up quick. Right now about 56% of internet traffic already comes from mobile devices. That’s a huge number, and it’s only going to go up as new users age into the market.
While updating (or even creating) your site, consider optimizing for mobile, so that it will look nice and stay usable to potential borrowers on the go. Another thing to consider? An app. Our MyTotal Mortgage app has played a huge part in allowing us to reach a new set of homebuyers. It might not be right for everyone, but if you’re working with a larger company that has the resources, consider raising the issue with your sales manager.
Referral partners
In the face of all this talk of SEO and Twitter, it’s easy to overlook the old-school tactics that will still play well with this generation of homebuyers. Namely, building up a network of referral partners.
One thing that hasn’t changed about buying a house? It still takes a small army of people, including realtors, inspector, contractors—you get the picture. By creating a network of professionals you trust (and who trust you), you create opportunities for buyers to find you through word of mouth.
If you’re interested in seeing a breakdown of how Total Mortgage loan officers make this happen, guess what—we have a guide for it. Just click here to learn more.
To get more specifics about what the Total Mortgage marketing team does for our loan officers, check out other articles in this series, or by visiting our career portal.
