Whether you’re taking your first steps or fine-tuning your strategy, understanding the fundamental language of real estate is paramount. In this post, I’ll cover the top 5 real estate investment terms that are essential for every investor’s toolkit. From cash flow to leverage, these terms form the bedrock of successful investing. I think it is also important to know the right meaning for these terms and many people stretch the meanings or completely change them!
So, let’s dive in and equip ourselves with the knowledge that will shape our journey towards financial prosperity.
1. Cash Flow – The Foundation of Financial Success
Let’s start with a term close to every investor’s heart – cash flow. Beyond the straightforward inflow and outflow of funds, it serves as the cornerstone of financial success in real estate. It is one of the primary metrics I use to make purchase decisions. I also look at how good the deal is and how much value I can add.
Many people will tell you that cash flow is simply the rent minus the mortgage and insurance. However, if you want to know the true cash flow you will need to know all of your expenses. Here is an example of what true cash flow looks like:
Rent: $2,000
Mortgage: $1,100
Taxes: $200
Insurance: $200
Hoa: $50
Vacancies: $100
Maintenance: $200
Property management: $180
One investor might tell you the cash flow is $500 a month but they are leaving out many of the expenses the property will incur over time. The true cash flow would be -$30!
Determining cash flow requires a variety of calculations, so I’ve created a calculator to help you out: InvestFourMore Cash Flow Calculator
2. Cap Rate – A Metric for Strategic Decision-Making
Cap rate, a metric mostly used on commercial properties and multifamily housing gives an idea of what the property will make without financing and what the property is worth based on the NOI or net operating income. The basic formula is:
net income / price = cap rate
The Cap Rate formula may seem simple enough but it can be manipulated very easily. Investors may not include all the expenses in the NOI or they may use projected income instead of actual income. Never take these numbers as absolute without digging into them.
You can use my calculator here: InvestFourMore Cap Rate Calculator
3. ROI – Evaluating Investment Performance
Return on Investment (ROI) serves as the scorecard for your property’s performance. As a pair to cash flow, ROI helps you determine what the property will make based on many factors like loan pay down, appreciation, and value add. Cash flow looks at what the property makes on a monthly basis and ROI looks at the big picture.
ROI is not easy to figure because some years may have a huge increase in value thanks to adding tenants or making repairs while other years may have much more modest returns. You would figure ROI on an annual basis and may want to separate out first-year ROI from the later years’ ROI because of those jumps in value.
Below is a video of a value-added play I invested in recently.
4. Leverage – Maximizing Potential While Mitigating Risks
Leverage is the prime weapon of real estate investors if you are looking to scale quickly. With leverage, you only invest a fraction of the total purchase price, which can cause your returns to be significantly higher than investing in something like stocks. To achieve leverage, you use financing. Financing is one of the most important aspects of investing in real estate. You can make more money with loans than by paying cash.
On this site, I talk about the many different, creative ways you can finance real estate investments.
5. Equity – The Silent Wealth Builder
Equity, an often-underestimated force in wealth accumulation, goes beyond property values, embodying true ownership.
equity = current market value - amount financed
Equity can be built slowly through market appreciation and loan pay down. You can also build equity by adding value and getting great deals on properties. I prefer to use both! Many people may say equity does not matter because it is not cash in hand, but it can become cash in hand by using a cash-out refinance, or selling. You can even use a 1031 exchange to sell and not pay taxes on the profit.
Thanks to leverage and equity, my net worth has skyrocketed to over $10 million just from real estate.
What’s the best way to invest in real estate?
Even better, you can use equity and leverage together to purchase additional properties and scale up your business using the BRRRR method.
Conclusion
This primer serves as a solid foundation for fundamental real estate investment terms. As you navigate real estate, I invite you to explore the extensive resources on InvestFourMore, where a wealth of data-driven insights and strategies await.
Feel free to engage with the community, sharing your experiences or seeking guidance. Here’s to your continued success in the world of real estate investment – stay informed, stay strategic, and keep building your path to financial prosperity!
There seems to be an exorbitant number of young people posting all kinds of pictures and stories about their incredible (and expensive) travels online. And alongside that, most of us young people are struggling just to find affordable housing. So what gives? How is this generation of Americans both more broke than other generations, and also traveling so much? Well, we’re diving into some answers here, so keep reading!
1. It’s All on Credit
One user said, “I have a friend who takes 4 or 5 vacations annually. She and her husband are not wealthy by any means. I asked how they could possibly afford it (bc I was jealous), and she said it was all on credit. I stopped being jealous after that.”
It’s true: a lot of people use credit cards to travel and then make payments afterwards to catch up. Sure, you get cool experiences, but is it worth it to have standing debt that’s accruing interest at an exorbitant rate? Most of us would say no.
2. Debt and Nihilism
One Redditor shared, “Debt and nihilism. A lot of them kind of think the world is going down the crapper and their lives will only get worse from here on out, so might as well enjoy it.”
Another user replied, “Pretty much, honestly. I’m 26, a relatively s- job. Want to start a career, but that’ll require more school, which is fine. The [debt] will only set me back around a year, and I’ll make a bit more thereafter. Even after that, I won’t make enough to both afford a house and contribute a lot to retirement, though; I might as well get my money’s worth in life in my 20s and 30s while I’m still a beast physically (ski vacations, backpacking, running every event from 800 to ultras, hopefully after graduating more expensive stuff even like mountaineering, alpine touring).”
Ok, we understand this view a little better. It’s true, the world is changing rapidly and there’s a lot of joy to be found in traveling while you’re young, and strong enough to have the more intense adventures. But just proceed with caution, especially where credit cards are involved.
3. Rich Parents
“Rich parents,” one user posted.
Another user commented, “Definitely rich parents or running up credit card debt. I went to school for 8 years and ran up around 300k in [debt]. About a year or two after graduating, a classmate shared that he paid all of his student loans off. While I was funding everything with [debt], he was being heavily funded by his parents, so his [debt] was a fraction of what mine was, and he knocked it out fast.”
To be fair, if we had wealthy parents, we’d probably travel too. Probably the worst part about this one is that young people with wealthy parents are more often than not quite out of touch with the struggle middle-class people have to save up and travel. So, compassion might be the key here. That, and maybe keeping some of those gorgeous photos in a private chat instead of an Instagram feed.
4. Credit Cards
One user shared, “Credit cards are a [hecking] drug.”
Another user commented, “Yup I worked collections for too long, and I would see people barely make the minimum payment and then turn around and ask how much [they had] left to spend. Crazyyyyyyyyyyyy.”
One added, “When I was working in retail, I had an amicable ‘cash or card’ chat while ringing someone up when I said something like, ‘I’d just as soon use my card for everything and get the points.’
“The customer, 10+ years older than me and spending a couple hundred dollars, kind of scoffed and said, “Yeah, if you pay it off!”
“That’s not to knock anyone using credit cards to make ends meet. Still, it’s stuck with me because she was fully insinuating that it was unreasonable for anyone to pay off their balance reasonably regularly. Like, ma’am, are you sure you want to buy this dress?”
5. They Live With Their Parents
Generational living has been a feature of many cultures both across the glob and throughout history. In fact, Americans are more of an anomaly in this regard than we usually think. But taking the opportunity to live with your parents, especially if you have a healthy relationship with them, can set you up financially for more than just travel, although that’s certainly one motivation to practice generational living!
One Redditor commented, “They live with their parents.”
Another user replied, “My dad lived with his mom until he was 45. I live with my parents as well. No rent makes a huge difference.”
6. Hard Work or Rich Parents, Possibly Both
One Redditor added to the thread, “I work with a 24-year-old. After college, he got an entry-level job at our company (he was 22) and did really well. He probably makes $70K+, has a roommate and has no kids—plenty of extra money.
“My stepdaughter is 21, works part-time at a coffee shop, and her parents pay her rent, her tuition and most of her expenses. She also has plenty of extra money. So, either hard work or rich parents, possibly both.”
7. High-Income Jobs
While we’re in high school, most of us are told to follow our dreams. And it’s really life-changing to have a job you enjoy versus a job you tolerate or really dislike. But some of us have the talents and dreams that guide us towards higher paying jobs, and that’s a fact we all have to come to terms with. Somebody who loves math and dreams of engineering will probably make more than somebody who has a passion for children and teaching.
“Rich parents or high-income jobs,” one user stated.
Another Redditor replied, “High-income jobs really hit you differently when you don’t have any dependents too.”
8. Saving Up
“When I was a new grad, a bunch of my friends/acquaintances moved out and lived independently. Had the nicest clothes and went out to every event. I lived with my parents and saved. (Lucky enough that they didn’t need my help.)
“Well, I’m in my early 30s now. I have my own condo; it’s not the nicest car, but I’m happy with it. All my friends/acquaintances had to move back home because they couldn’t afford to live independently anymore.
“I don’t know their financial situation, but they always ask how I could afford it. My parents aren’t rich, but living with my parents after I graduated definitely is the reason I could eventually move out and buy my own place,” shared one online user.
9. Being an “Influencer”
It’s not a secret that much of what we see online, especially influencer content, is mostly illusion. There are private jets to rent as a photo set; you can go get your pictures and then fly a budget airline. All the appearance of being rich; none of the reality.
One user posted, “Where do you ‘see’ these people? Are these people you know or people you see on social media?
“Being an ‘influencer’ is a freelance entertainment job. These guys earn money by appearing to have perfect lives in every way. If they don’t provoke envy or aspiration, they aren’t making as much money as possible. Don’t let yourself be sold a bill of goods, okay? There’s a man, not a wizard, standing behind that curtain.”
10. Inheritance
Ok, it’s hard to fault people for inheriting money enough to travel. And some genuinely do. But that doesn’t make it any easier to follow along with their adventures while we work away in our offices.
One user posted, “Inheritance, trust fund babies, parents’ gifts.”
11. Work in a Tourist Attraction
Credit cards seem to be the biggest answer. Young people aren’t afraid of debt in the way many others are. And while there’s nothing inherently wrong with putting trip expenses on a credit card if you know you can pay it off, there’s definitely a risk to traveling on credit too often. Your future self may not thank you.
One user shared, “I work in a tourist attraction. I’ve seen many 21-25-year-olds from the U.S. and other continents travelling here. A lot of them are in college! I’m the same age as them, and I wasn’t able to afford to go travelling or party while in college. Edit: I would like to note a majority of them are paying with credit too.”
12. There Are More Affordable Options if You Plan It Right
“Everyone else has covered the how, but I do want to mention how important it is to travel when you can. There’s no reason to make it lavish to get the benefit from it. There’s lots of more affordable options if you plan it right. Start with weekend road trips. I never left the country (USA) until I was 25, and now I’ve been to 16 countries (although some were for work trips). I try to take one proper vacation a year. Every other year, I do something more extravagant (that I have time to save up for), and the off years, I do something domestic.
“I think it’s the best gift you can give yourself to see how other people live and experience their culture. It expands your horizons and also helps you appreciate home,” one user added.
13. Making Money off Scams
One user shared, “A lot of people I’ve seen in their 20s are doing fraud. I don’t know in detail how they do it, but it’s something with CPNs and people’s social security. I’ve seen people with all these designer bags and designer clothes and going on all these trips. Yet they work in a warehouse or a low-paying job. They are, without a doubt, scamming. Also, I know a lot of women deal with men who are willing to spend money on them. I have friends who will get flown out by men they are dating. These men also seem to be doing illegal activities. Trust me, a lot of people out here are not living right. They are risking their freedom for a fake lavish lifestyle.”
14. Selling Themselves Online
One user commented that most likely, lots of influencers have switched to having paid subscribers to their accounts. And while it’s not exactly easy money for just anyone, a lot of people are succeeding at drawing in people who are willing to pay for their content. It takes a pretty high comfort level with posting yourself online for others’ viewing pleasure, but those who have the guts and the success will probably have the ability to travel on that money too.
15. They Know Someone Who Works for an Airline
“People give others gift cards and airline points and know people who work in airlines. So, if you know someone who works for an airline, you can [often] get a $100 guaranteed ticket for a flight. Or buddy pass is free! Also, work in an airline that gives you free seating when empty seats are available. Also, parents sell their homes to their kids for $80K, and the home value is $500K plus.
“They take out a second mortgage on the house to live it up in their 20’s and slowly roll into their 30s and, by 40’s, divorced and in Debt. Also, Credit card points from people to buy airline tickets and travel expenses. They also have their parents credit cards and order ride shares with accounts of their parents that have corporate accounts credit cards on them. Females are more likely to have Dad’s credit cards for emergencies and Guys more likely to have [Mommy’s] credit cards that stepdad or birth dad pays for. Also, they have credit card debt that they file Chapter 7 on, and parents most likely pay the vehicle/ rental payments. Now, they use their parents’ vehicles to make money doing rideshare/or gig work while their parents pay the rent/ and the vehicle they pay bills. Parents paid for the college! Things I have learned about from people doing rideshare and people I have met in life,” posted one user.
What do you think of the statements listed above? Share your thoughts down in the comments!
Source: Reddit.
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Have you ever watched a movie or show and been completely lost in it because of how well an actor or actress became their character? Check out this article for a whole list of actors who were perfectly cast!
11 Vampire Movies That Will Make You Thirst for More
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We’ve all been there: you make a comment you haven’t thought through at all, and the whole room goes silent at what you’ve just said. But can you imagine doing that as a famous person—and getting canceled? Check out this list of celebrities who did just that!
13 Things You Shouldn’t Do When You’re in the US
Are you planning a trip to the US? Culture varies a lot between countries, even countries that share borders. So if you’re headed to the good old U. S. of A, here are a few pointers to make your travels go more smoothly!
Inside: Looking for delicious, budget-friendly meals? Look no further! This guide has 100+ delicious and frugal recipes that will help you stick to your food budget.
When it comes to keeping your grocery budget in check, meal planning is a powerful tool. It can simplify your life, save you precious time, and stretch your dollars further.
You don’t always need pricey ingredients to whip up something delicious. Creating frugal meals doesn’t mean you have to compromise on flavor.
Sometimes, a frugal meal could mean something cheaper but equally, if not more, delicious than takeout! The key to this art is using simple, inexpensive ingredients, being creative in their application, and not shying away from condiments, herbs, and spices that can elevate your dish.
Remember, eating frugally is not just cost-effective but also simple and stress-free, utilizing common kitchen staples, and easy-to-locate items.
Join me on my mission to make frugal meals that are adored by my family and my thrifty self appreciates.
Frugal Breakfast Ideas:
A frugal breakfast should not equate to boring. Here are a few ways to start your day off right without stressing your wallet:
Waffles/Pancakes: These could be made with basic ingredients like flour, eggs, and baking powder. Top with peanut butter or dust of cinnamon sugar for extra flavor!
Eggs: Cooked to your preference, be it fried, boiled, or scrambled, they are not only easy on the pocket but also a rich source of protein.
Oatmeal: Buy oats in bulk and pair them with over-ripe bananas, pumpkin butter, or a sprinkle of brown sugar. It’s a hearty and filling for just about anyone.
Muffins: Basic muffin ingredients include flour, eggs, and baking powder. For an element of surprise, add in nuts, blueberries, or mashed bananas.
French Toast: With eggs, cinnamon, and loaves of French bread, you can whip up a scrumptious breakfast.
Homemade Bread/Toast: If you’re up to the task, making your own bread could be a money-saving option. This is something I do with sourdough bread. Pair the fresh bread with either sweet or savory toppings.
Omelets: Eggs are a cheap source of protein. Whip up an omelet and serve it with your choice of inexpensive veggies.
Homemade Biscuits: Biscuits are a great addition to any frugal breakfast, with just “milk” and flour ingredients. Pair them with a little meat or enjoy them in butter. Just like my great Aunt Marie made at the ranch.
Choose Spice for Breakfast: This recipe for Mexican baked eggs uses budget friendly canned beans and eggs as a protein source. It’s super simple to make in less than 30 minutes, with eggs baked in a smoky, spicy tomato sauce with black beans, poblanos, and corn. Serve with plenty of corn tortillas for a super satisfying meal.
Frugal Lunch Ideas:
Lunch should be something to look forward to, even if you’re on a tight budget. Here are frugal lunch ideas that keep your tummy and your wallet happy.
Salad: A salad is an excellent choice for a frugal lunch, it’s both cost-effective and healthy. Based on what’s available in your fridge, you can combine different vegetables, proteins, and dressings to create a filling and tasty meal every day.
Sandwiches: The humble sandwich can be as frugal or as lavish as you like. Tuna, grilled cheese, peanut butter, and jelly, ham… you name it, sandwiches offer a great variety.
Homemade Soup: Consider creamy potato soup, creamy vegetable soup, or even curried cauliflower soup. They can be light yet fulfilling, and the ingredients are reasonably priced.
Toast Pizza: Save money by using toast as your pizza base, add what you have in the fridge, top it off with cheese, and cook it under the grill or in the oven.
Baked Potatoes: A toasty baked potato with butter is a delightful, inexpensive lunch. Top it up with fillings such as cheese or broccoli.
Remember, lunch doesn’t have to be expensive to be delicious! Use what you have at home for a more sustainable, economical, and satisfying meal.
Frugal Dinner Ideas:
Dinner is the time when families come together, share their day, and unite over food. There’s a common misconception that frugal foods are bland and monotonous. However, you don’t have to spend a fortune to make dinner delicious and satisfying.
Spaghetti: Who knew that the ultimate comfort food could be so cheap? Combine spaghetti with homemade tomato sauce or cheese, add your favorite seasonings, and voila! You have a delicious meal.
Baked potatoes: Fully customizable and super simple to be a dinner game-changer. Top them with cheese, sour cream, or any other leftovers like chili!
Stir Fry: This is a perfect way to use up any veggies you have. Throw in some meat if you have it, cook with rice and tasty sauce, and your stir fry is ready!
Tacos: Pick up tortillas, get ground beef, or use dried beans, lettuce, and salsa, and there you have your Taco night. You can also swap out the beef for beans, and it’ll still taste delightful.
Breakfast for Dinner: Who said breakfast foods are only for mornings? Whip up scrambled eggs, toast, or pancakes, and enjoy a breakfast-style dinner!
Creating a delicious, nutritious, and frugal dinner can be easier than you might think. It’s all about making the most out of the resources you have, every day.
Recipe Breakdown : Variety Of Frugal Meals
Satisfying Soup & Salad Recipes on a Shoestring
When it comes to frugality, nothing beats the soup and salad combination. These meals are not only hearty and satisfying but also easy on your wallet. With just a few ingredients, these recipes will bring variety and nutrition to your kitchen without putting a strain on your wallet.
Here are a few of our favorite frugal soup and salad recipes:
The Best Chicken Soup Recipe: Simplicity meets flavor without breaking the bank. Utilizing affordable ingredients and leftover chicken, this soup is a testament to how economical choices can still yield rich, comforting results.
Cauliflower and Bacon Soup:
Instant Pot Three Sisters Soup: A blend of corn, beans, and squash.
Root Vegetable Soup: Healthy, comforting, and made with only a few simple and inexpensive ingredients! It’s prepared with veggies like carrots, parsnips, rutabaga, and potatoes simmered in a savory broth.
Healthy Roast Pumpkin and Sweet Potato Soup: Winter favorite loaded with nutrients.
Instant Pot Cabbage Roll Soup: Comfort food at its best.
Smoky Black Bean Soup: Protein packed, tasty, and hearty.
Hearty Lentil Soup: Healthy and will keep you warm during the winter! It’s made with only a few ingredients and requires no special equipment. This soup is made with lentils, veggies, and spices simmered in a savory tomato broth.
Vegan Coconut Curry Lentil Soup: Exotic, aromatic, and down-right delicious.
Instant Pot Split Pea Soup Recipe: Classic soup, ready in no time.
Vegetable Barley Soup: With protein-rich chickpeas, cabbage, potatoes, and the twist of curry spices, this soup is easy, comforting, and delicious!
The Very Best Ham And Potato Soup With Peas: Savory, delicious and economical.
Cheap and Easy Hamburger Soup: Mouthwatering and super easy to prepare.
Creamy Vegetarian Potato Soup: Originally named 45-Cent Potato Soup because that was how much it cost per serving over a decade ago! The cost has increased a bit but this hearty potato soup is still a keeper. Creamy potato soup with veggies and milk – thick, velvety, and hearty. It’s on constant rotation at our house!
Moreover, when it comes to salads, using seasonal produce, beans, or leftover veggies can be an affordable way to create nutritious meals. Add chicken, tuna, or boiled eggs for protein, or keep it simple with fresh greens and a homemade dressing.
Remember, a frugal lifestyle does not mean you have to compromise on taste or variety. It’s about being creative with what you have!
Cut Costs with these Cheap ‘n Cheerful Chicken Recipes
Dinner necessity is the mother of so many amazing chicken dinners! Plus it is an excellent protein option that can be inexpensive, especially if you seize sales or buy in bulk.
Maple Chicken & Potato Supper: This recipe turns an affordable cut of chicken and two types of potatoes into a family favorite.
One-Pot Chicken and Potatoes: Chicken thighs are cheap, add in potatoes, onions, and carrots for a hearty comfort meal.
Leftover Chicken Curry and Vegetables: Lots of recipes use leftover chicken or turkey. But this “All the Leftovers” Chicken Curry also uses your leftover vegetables. Clean out your refrigerator today!
Instant Pot Chicken Tortilla Soup: A quick, deliciously rich, and slightly spicy meal made up of chicken, black beans, and stewed tomatoes.
Crockpot Chicken Tacos: With just 3 ingredients and 5 minutes of prep, this is a lifesaver for busy nights.
Chicken Curry and Quinoa: Simple, tasty, and feels like a treat without the expense.
One Pan Baked Chicken Thigh Recipe with Green Beans and Red Potatoes: This recipe is easy and inexpensive when you grab the chicken thighs on sale! It is easy to prepare, a healthier option and a family favorite!
Cheesy Chicken Quesadillas: A perfect, weeknight meal.
Slow Cooker Chicken Thighs with Potatoes and Carrots: A value for money meal with chicken thighs – one of the cheapest chicken cuts.
One-Pan Chicken Legs with Chickpeas and Quinoa: A wholesome, naturally sweet dish with a few spices.
Easy Cheesy Chicken Taco Spaghetti: Made with pantry staples, this comforting dinner recipe is frugal and filling. Full of pasta, creamy sauce, and canned chicken, your family will be asking for seconds!
Chicken Fried Rice: Uses leftovers efficiently, add veggies, and you have a meal.
Easy Pizza Chicken Recipe: A low carb and high protein meal, especially when you use ordinary cheddar.
Remember, maximizing flavor in cheap chicken recipes often relies on using good quality, inexpensive ingredients, and cooking techniques like slow cooking or sautéing. Happy cooking!
Beautiful Beef Dishes that Benefit Your Wallet
When trying to maintain a frugal lifestyle, using affordable cuts of beef like ground beef, shin, or skirt steak can yield mouth-watering meals that don’t bust the budget. Here are a few beef recipes that are both economical and satisfying:
Ground Beef Stroganoff: A classic comfort food that is simple, quick, and incredibly hearty.
Poor Man’s Stew: An excellent choice for a filling, cheap, and tasty meal for a whole family.
Simple Hamburger Hotdish: This simple hamburger hotdish (casserole) makes delicious use of affordable and easy-to-find ingredients like ground beef, pasta, and tomato sauce. This is a great meal idea to feed a family.
Beef Skillet Nachos: Layer chips, ground beef, and cheese in a skillet for an easy, cost-effective meal.
Homemade Beef and Noodles: An economical-friendly classic that can serve a good number of people.
Tortellini Bake: This 4 ingredient Tortellini Bake uses common ingredients like ground beef and marinara sauce to make a satisfying and hearty meal for families!
Cheesy Ground Beef and Rice Casserole: Across the realms of deliciousness and frugality, this casserole rings the bell.
Beef and Tomato Macaroni Soup: Combining the wholesome elements of beef, macaroni, and tomatoes provides a satiating meal at an affordable cost.
Beef and Vegetable Stir Fry: Brimming with colorful vegetables and protein-rich beef, this dish is a delight to both the stomach and the wallet.
Taco Skillet: It’s the taste of tacos in a convenient and cost-friendly rice skillet.
Classic Stuffed Peppers: Filled with a mixture of ground beef, rice, and a zesty sauce, it’s a comfort meal that’s easy on the pocket.
Sesame-Ginger Beef: This dinner calls for an inexpensive cut of meat.
By creatively utilizing budget cuts and leftovers, you can create economical, hearty, and tasty beef dishes for yourself and your family, fostering a love for cooking while sticking to a money plan.
Money-saving Meatless Meal Marvels
When it comes to cost-saving, meatless or vegetarian dishes are a winner. Not only are they usually cost-effective, but they’re also often packed with nutrients. Here are meatless recipes that are sure to delight your taste buds, without denting your wallet:
Quinoa Edamame Salad with Peanut Sauce: Use cabbage and edamame to make a balanced lunch. The peanut sauce is flavor-packed and uses pantry staples, and the quinoa is easy to swap with rice or pasta.
Vegan Lentil Curry: Packed with nutrition, this dish makes an inexpensive, protein-rich meal.
Jamaican Rice and Peas: Economical rice and beans doesn’t need to be boring. Jamaican rice and peas are easy to make in the slow cooker. This flavorful, easy recipe brings delicious Caribbean flavor to any meal as a side dish or a complete meal on its own.
Spinach Lasagna Roll-Ups: Proof that vegetarian dinners can be delightfully hearty, this twist on classic lasagna is a crowd-pleaser.
Bean, Tomato, and Spinach Stew: A hearty and richly flavored dish that is low cost and satisfying.
Vegan Texas Tamale Pie: Great down-home, budget-friendly meal is perfect to whip up when you need something hearty, healthy, and filling to serve to your hungry family or friends in under an hour. Prepared with basic canned ingredients you might keep in your cupboard, this simple recipe can be easily adjusted to suit your tastes with the groceries you have on hand.
Stuffed Bell Peppers: Fill peppers with a delicious mixture of quinoa, black beans, tomatoes, and spices.
Eggplant Parmesan: Classic Italian dish, easy to make, and delicious to eat.
Pasta e Fagioli aka Pasta and Beans: Feed your family for pennies a bowl with pasta e fagioli. Cucina povera Italian food is the food of peasants, but it is so delicious! Only three inexpensive ingredients are needed to make this quick and easy, nutritious, one pot weeknight meal.
Potato & Zucchini Frittata: Use up your leftover veggies and whip up a quick frittata for dinner.
Tomato Basil Soup with Grilled Cheese: A classic that’s both inexpensive and palate-pleasing.
Vegetarian Stir-Fry: A colorful medley of veggies stir-fried in a savory sauce served over rice.
Spaghetti aglio e olio: This spaghetti aglio olio (with garlic and olive oil) is probably one of the most popular classic Italian pasta recipes and yet it’s so simple, budget friendly and super easy to make!
Butternut Squash Risotto: This dish, while sounding fancy, is frugal and straightforward to make.
Vegan Spaghetti Bolognese: This is a rich, hearty, and flavorful dish that’s lighter on the wallet than traditional bolognese.
Crispy Pan Fried Gnocchi: A simple and quick & inexpensive recipe to make in only 20 minutes for an easy weeknight meal. Crispy gnocchi coated in a light sauce made with garlic, herbs, butter and parmesan.
Implementing meatless meals can significantly cut down on grocery bills, with the added bonus of being healthier and environmentally friendly.
So why not give these recipes a try for your next frugal feast?
Luscious Low-Budget Lunch Ideas
The midday meal can often be overlooked when planning budget-friendly meals. Don’t let lunch blow your allowance! Here are a few low-cost, lip-smacking lunch ideas:
Bean Burritos: Beans and cheese wrapped in a tortilla can be quite satisfying and light on the pocket too.
Tuna Salad Sandwiches: A classic frugal lunch option that’s rich in protein.
Egg Salad Wraps: Egg salad in a wrap is a fulfilling lunch that’s economical.
Homemade Hummus and Veggies: Prepare hummus at home and pair it with fresh veggies for a light and inexpensive lunch.
Mixed Bean Salad: Beans are a powerhouse of nutrition and offer a low-cost lunch option. Mix different beans and dress them up with herbs and spices for a flavorful lunch.
Veggie and Cheese Stuffed Potatoes: A cheesy baked potato with veggies is filling and affordable.
PB&J: Peanut butter and jelly never go out of style and are a great low-cost lunch option.
Tuna Tomato Pasta: Tuna tomato pasta is a delicious healthy and easy recipe that only takes 20 minutes to make. With just a few basic ingredients it’s budget friendly too!
Falafel Wraps: Homemade falafel is quite reasonable and can be wrapped up with pita and fresh veggies for a satisfying meal.
Pasta Salad: Cold pasta salad with veggies is a cheap and filling lunch idea.
Vegetable Fried Rice: Leftover rice, mixed with whatever veggies you have on hand, makes for a delectable and affordable lunch.
When your lunch is as tasty as it is affordable, you’re winning at the game of frugality. Enjoy these luscious lunch ideas without breaking the bank!
Delightful Dinner Recipes That Don’t Dig A Hole In Your Pocket
Dinner is the meal you eagerly look forward to after a long day. Unfortunately, it can also be the priciest meal of the day. But it doesn’t have to be! Here are delightful, cost-effective dinner recipes:
Sloppy Joe Pasta: A homemade mix of pantry staples for a mouth-wateringly filling, budget-friendly twist on the classic Sloppy Joe.
Easy Chilaquiles: Fresh made tortilla chips smothered in homemade salsa, chilaquiles are the best way to make a flavor-packed meal on a budget!
Cottage Pie: Make a delicious cottage pie in the instant pot pressure cooker from scratch. Ideal for using up leftovers and easy to make!
Chicken Pot Pie: Homemade and padded out with cheap, seasonal veggies, it’s a classic favorite, perfect for a weeknight dinner.
Mince & Potato Stew: Heartwarming, flavorful dish that’s easy to make and easier on the pocket.
Linguine with Clam Sauce: Using canned or jarred clams, this linguine dish is made from simple pantry ingredients that won’t break the bank. Dive into a dinner of delicious choice for yumminess.
One Pot Sausage, White Beans, and Kale: It combines flavorful sausage, rich canned tomatoes, white beans, fresh kale, and a few herbs and spices – a cupboard-friendly, inexpensive dinner option.
Tacos: They’re versatile, they’re delicious, and most importantly, they’re cheap.
Potato and Salmon Fish Cakes: Canned salmon and potatoes create a delicious, inexpensive dinner the family will love. They are super easy to make and you can freeze them, too. Even those who dislike salmon enjoy these fish cakes!
Asian-Style Chicken Noodles: This recipe uses leftover chicken and packs a lot of flavors without a lot of cost.
Pasta Arrabbiata: This inexpensive pasta dish is full of garlic, tomatoes, and spicy red pepper flakes. Simple, yet incredibly delicious.
Garlicky Spinach and White Bean Pasta: This recipe is packed with flavor thanks to a surprise, budget-friendly ingredient – tinned anchovies! Simply toss cooked pasta with spinach, white beans, and a garlicky anchovy sauce. It’s easy to throw together for a satisfying weeknight dinner.
Egg Fried Rice: It’s a quick, healthy meal that anyone can cook.
Leftover Pasta Bake: Don’t waste food! Turn your leftovers into a treat with our leftover pasta bake!
Vegetable Stir Fry with Noodles: A quick, healthy dinner full of veggies and flavor.
Low-cost does not mean low taste. These dinner recipes prove just that. So get cooking and start saving!
Put it in Pot and Forget It – Cheap and Easy Crockpot Creations
Using a crockpot or slow cooker can be a real lifesaver for busy individuals or families. Not only does it save time but it’s also a great way to save money by making inexpensive cuts of meat tender and flavorful.
Slow Cooker Sausage and Peppers: Slowly simmered in marinara sauce for a frugal dinner that’s hard to beat! Just serve over pasta or polenta for an easy dinner. Plus, the leftovers are just as delicious for lunches.
Crockpot Beef and Broccoli: The economical version of your favorite takeout dish.
Slow Cooker Black Bean Soup: Inexpensive, full of flavor, and so hearty!
Creamy Crockpot Chicken: Warm shredded chicken and gravy in your slow cooker for the win.
Crockpot Baked Beans: Cheaper and healthier than store-bought!
Crockpot BBQ Chicken: Sweet, tangy, and made with a handful of pantry staples.
Crockpot Lentil Soup: Super hearty, packed with nutrients, and so easy to whip up!
Slow Cooker Pot Roast: The easiest one pot meal and is an instant win for family dinner! Plus, it’s budget-friendly! Easy to prepare for weeknight meals or special occasions alike, this easy pot roast recipe is always a crowd-pleaser!
Slow Cooker Salsa Chicken: Just two ingredients are required for this super versatile recipe.
Crockpot Vegetable Beef Soup: Healthy, hearty, and incredibly easy to make.
Chicken Paprikas Recipe: Use chicken thighs and cauliflower which make it a super frugal meal. If you prefer you can serve it over rice instead of the cauliflower but even her kids agree that the cauliflower version is delicious.
Slow Cooker Mac and Cheese: Yes, even mac and cheese can be done in a crockpot! Even better try this Broccoli Mac Kielbasa Casserole.
Crockpot Ham and Bean Soup: This recipe uses inexpensive and filling beans and veggies, perfect for when you’ve leftover ham.
Slow Cooker Vegan Chili: A vegan twist on this classic comfort food for those chilly days ahead makes for a healthy dinner packed with nutrients brimming with flavor!
Each of these meals will serve you without making a significant dent in your grocery budget. Enjoy the convenience and frugality that slow cooking brings!
Make It Snappy With Instant Pot Recipes
The Instant Pot is a versatile kitchen appliance that’s excellent for fast, delicious meals when you’re on a budget.
Instant Pot Ground Beef Enchilada Pasta: This easy dish combines a few affordable ingredients into a hearty meal that your family will love.
BBQ Beans Instant Pot Recipe: A frugal recipe that’s great as a main dish or a filler for burritos.
Easy Pizza Potatoes in the Instant Pot: A simple pairing of pizza flavors and potatoes for a wallet-friendly dish.
Air Fryer Pita Bread Pizza: Only 5 minutes and a handful of low-cost ingredients to a delicious DIY pizza.
Sweet Potato, Lentil and Chickpea Curry: This vegan instant pot recipe is full of flavor, super hearty and delicious, and extremely reasonable to make.
Mushroom Masala- Mushroom Curry: An exotic and easy-to-prepare mushroom curry that satisfies without stretching the dollars.
Chicken and Sausage Paella in the Instant Pot: Cut down cost by using sausage and chicken thighs for this easy, savory dish.
Instant Pot Tuna Casserole: Comfort on the cheap, using pantry staples.
Fast and Easy Instant Pot Chicken and Rice: Made using basic pantry staples and suitable for both adult and kid taste buds.
These Instant Pot ideas are not only quick and easy to prepare but also budget-friendly. They’re proof that frugal doesn’t mean boring!
Handy Kitchen Tools for Budget-Savvy Cooking
When it comes to frugal cooking, your kitchen gadgets can be your best companions. These tools can save you both time and produce restaurant-quality dishes at home for a fraction of the cost.
Many are the same as frugal home must haves!
Only rely on tools that you use regularly in order to maximize their cost. So, equip your kitchen with these practical, cost-effective tools, and enjoy a more manageable culinary journey.
FAQs: Navigate Your Approach to Cost-Efficient Eats
Eating lunch at work doesn’t have to mean spending a fortune, following these tricks can save you a lot of money:
Meal prep: Plan your meals ahead of time. Invest in a few hours during the weekend or your day off to cook large amounts and portion them out for the week ahead.
Leftovers Are Your Best Friend: Make a bit extra while cooking dinner, and voila, you’ve got lunch for the next day. A yummy, cheap, no-fuss, and no-waste solution!
Pack Your Own Snacks: Trade small shop-bought packs of snacks for a large bag or bulk-buy from a wholesale store. Divide them into small reusable containers for your daily hunger itch.
Invest in a Flask: A good quality thermos flask can keep your homemade soup or stew warm until lunchtime and it’s a lot cheaper than buying soup from a cafe.
Remember, the key is not to take complicated dinners which takes a lot of time. Rather, simple sandwiches, yogurt with fruits, homemade soup even boiled eggs can make great inexpensive lunch options. Planning ahead is key when you’re trying to eat on a budget.
There are several cheap meals you can whip up using budget-friendly ingredients. The absolute cheapest would depend on what you already have on hand in your pantry or the cost of ingredients in your locality.
Rice & Beans: This is a universally cheap and filling meal that can be flavored with some stock, onions, and spices.
Pasta with Tomato Sauce: This is a popular choice when it comes to cheap ideas. All it takes is a rigatoni of your choice, a basic tomato sauce made from canned tomatoes, garlic, and herbs.
Cereal & Milk: A bowl of generic brand cereal and milk is an incredibly cheap meal. It lacks in terms of proteins and fats, but it can be a good quick fix.
Eggs on Toast: Eggs and bread are both cheap elements. Whip up scrambled eggs or make a simple boiled egg sandwich.
Potato Soup: One of the cheapest vegetables around, and they make a filling, simple potato soup.
Homemade Pizza: Using basic homemade dough and simple tomato sauce, you can add anything you have on hand to make a delicious pizza.
Remember, the cheapest dinners typically use basic pantry staples. By having a well-stocked pantry, you’ll be able to whip up a variety of low-cost dinner ideas.
A frugal meal doesn’t equate to scanty or tasteless. Here’s what defines a frugal meal:
Inexpensive Ingredients: Frugal meals predominantly use cheaper ingredients. Find plenty of cheap foods when broke (and you don’t need to be broke).
Fewer Ingredients: Meals with minimal ingredients are typically more economical. They aren’t stuffed with fancy extras, but they make up for it in hearty flavor.
Uses Pantry Staples: Rely on pantry staples like rice, dried pasta, canned goods, and dry baking ingredients.
Repurposes Leftovers: Instead of wasting ingredients incorporate leftovers in innovative ways.
Meal Prep and Batch Cooking: Cooking in bulk and freezing dinners for later can be a massive money saver, reducing waste and reducing the number of ingredients needed overall.
Limited Meat or Vegetarian: As meat is typically one of the more expensive ingredients, frugal cooking is often vegetarian or uses meat sparingly.
While frugal meals won’t always hit all these factors, if they contain a few of these aspects, you can be assured they will provide a cost-effective dining experience. A frugal meal strives to offer nutritional balance, satisfying taste, and minimal impact on your wallet.
Perfecting the Art of Frugal Cooking
Preparing budget-friendly cooking not only saves money but also reduces food waste and can create a warm, comfortable home. This is how to be frugal with food. Here are some expert tips to get you rolling:
Plan Your Meal Calendar: Plan out your menu for the week, keeping in mind what ingredients you already have.
Shop Smart: Shop for groceries with a list in hand so you don’t end up buying unnecessary items. Look out for sales, and discounts, and try to shop in bulk.
Utilize Leftovers: Don’t throw away leftovers. Repurpose them into a new meal or use them as an ingredient in another dish.
Use More Vegetables and Grains: Vegetables and grains are generally cheaper than meat and can be used to bulk out dinners.
Freeze Extras: If you cook in bulk, freeze the extra portions for a later date. This can act as a lifesaver during busy periods.
Use Cheap Cuts of Meat: Cheap cuts, such as chicken thighs, can be just as delicious as expensive ones, especially when slow-cooked.
Cook from Scratch: Convenience foods often cost a lot more than the sum of their parts.
Grow Your Own: If you have a garden, consider growing your own vegetables and herbs.
Reduce Waste: Get creative in the kitchen and use parts of food that you’d otherwise throw away.
Remember, with a bit of planning and creativity, you can prepare delicious, healthful meals without breaking the bank! It’s all about making smart choices.
Which Filling Cheap Meals are You Going to Try?
Embarking on these frugal meals can help stretch the budget while still enjoying a variety of flavorful and satisfying dishes.
Whether you are budgeting on a low income or just want to stretch your dollar further with going teens, we have given you plenty of options to eat well and healthy.
Many on this list are my personal favorites. This is how we stay on our grocery budget.
The biggest step is learning how to meal plan and stick to the menu! Now, off to move frugal living tips to save money!
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Do you have books gathering dust in your basement or on your shelf? If so, you can make some extra cash by learning how to sell used books. The amount of money you can make selling used books varies. Typically, college textbooks pay the most and you may be able to make around $100 per…
Do you have books gathering dust in your basement or on your shelf? If so, you can make some extra cash by learning how to sell used books.
The amount of money you can make selling used books varies. Typically, college textbooks pay the most and you may be able to make around $100 per textbook sold.
You can sell many other types of books as well, such as chapter books, children’s books, romance novels, and more.
An easy way to find out how much your used books are worth is by using Book Scouter. With Book Scouter, all you need to do is enter the ISBN and they will tell you how much you can possibly get for the used book.
We have sold books plenty of times over the years, as well as have bought used books. It’s a great way to make extra money!
17 Best Places To Sell Used Books
Below are the best places and sites to sell used books.
1. Decluttr
Decluttr is a platform that lets you sell items like books, clothes, electronics, and more.
To get started selling books on Decluttr, you need to create an account on the website. Next, click the ” Start Selling” button and enter the ISBN or barcode of the book you want to sell. Once you do this, Decluttr will give an instant valuation based on the condition and demand of the book.
Once an offer is accepted, you’ll receive a confirmation email with a prepaid shipping label. Print the label and put it on a box and pack your books in the box. When Decluttr receives your items, you’ll receive payment either through direct deposit or PayPal.
2. AbeBooks
AbeBooks is a popular online platform for selling new and used books, along with art and collectibles. You can sell rare books (such as a first edition book), textbooks, maps, comics, and paper collectibles on AbeBooks.
To get started selling on AbeBooks, create an account under “Start Selling”. Once your account is set up, you can start listing books. You will need the ISBN, condition, title, author, and price of the book you’re selling.
When a buyer purchases one of your books, AbeBooks notifies you. Then, you’ll pack the book securely and ship it straight to the buyer.
3. Amazon
Amazon is a popular site to sell used books online.
To get started selling books on Amazon, create an Amazon Seller account. Click “Sign Up” and fill out the information needed like payment and bank account details for receiving payment. Now you can list your books by finding the “Inventory” tab and selecting “Add A Product”. Enter the ISBN code to find your book and provide details about the book’s condition, price, and shipping options.
Once a book is sold, Amazon notifies you and you can begin the shipping process.
Recommended reading: 16 Best Ways To Get Paid To Read Books
4. Barnes and Noble
Barnes and Noble has a Textbook Buyback program where they buy certain textbooks for a fair price. This is a great program if you have textbooks you’re no longer using and want to make some money.
To get started with the Barnes and Noble Textbook Buyback program, locate the ISBN number on the back of your textbook and enter the number. You must have $10 worth of books to sell in order to participate in the book buyback program. Once you’ve entered your ISBN number, you will receive a quote from Barnes and Noble, and from there you can accept the quote and submit the book return.
5. Craigslist
Selling used books on Craigslist is an easy and quick method to get rid of books. First, you’ll need to create a Craigslist account and choose your location. Create a new listing and select the books category. Fill out details for the book including clear pictures of the book, condition of the book, and other relevant information (hardcover, paperback, ripped pages, etc.)
With Craigslist, it’s important to coordinate a safe place for the exchange and some sellers choose places like libraries, police station parking lots, or coffee shops.
6. eBay
eBay is a great place to sell used books due to its wide customer base and trust in the marketplace. You have the flexibility to set your own pricing on eBay and creating listings on the site is incredibly easy. If you have rare books, you can even set up an auction for bids, which can sometimes result in higher prices.
To sell books on eBay, you must have an eBay account. You can start listing your books under “Sell” link at the top of eBay’s website. You pay a final value fee whenever your item sells.
7. Valore
Valore is a platform specifically for selling and purchasing textbooks. The Valore platform is user-friendly and easy to use. All you need to do is enter the ISBN of the textbook and you’ll receive an instant quote, and Valore covers shipping the textbook to their warehouse and pays out via check or PayPal.
Keep in mind, that selling textbooks to platforms like Valore may end up making you more money than selling your textbooks to a local college bookstore. Campus bookstores are notorious for paying low prices for textbooks and campus stores are limited to how many textbooks they can purchase.
8. Sellbackyourbook.com
Sellbackyourbook.com is a website where you can sell used books online for cash. This site specializes in purchasing textbooks.
To sell your textbooks, all you have to do is enter your book’s ISBNs to receive instant price quotes for your books. You also need to provide shipping information and print a shipping label from the website. You do not have to pay for shipping.
You’re responsible for packing and shipping the books to the designated address. Once the textbooks are received and the condition is verified, you’ll receive payment either by check or PayPal.
9. Half Price Books
Half Price Books is an in-person store where you can sell your books in person for cash or store credit. The staff at Half Price Books assesses the condition of the books you’re selling and the demand for the book, and gives you a price based on those factors.
Besides books, Half Price Books also buys music, movies, collectibles, comics, magazines, games, and electronics. When selling items at Half Price Books, you need to have a government-issued ID with you and be at least 18 years of age. If you’re under 18 years old, a parent/guardian must be with you.
10. Powell’s Books
Powell’s Books is a bookstore located in Portland, Oregon. The store has an online and in-person program for buying used books. The online buyback program does payouts through PayPal. If you sell books in person, payouts are in the form of Powell store credit.
To sell books to Powell’s Books online, all you need to do is scan or enter the ISBN of the books you want to sell. You’ll receive an instant quote. If you’re happy with the quote, package the books and drop them off at a local UPS store.
11. Chegg
Chegg is another online textbook store that has a textbook buyback program. Chegg works with an independent buyer called GoTextbooks which purchases textbooks.
To get started, enter the ISBN of the textbook and find out what you’ll get paid for your book. Next, you’ll print a free shipping label and ship your book to their warehouse. As soon as your book is received, you’ll receive payment. Textbooks need to be in fair condition or better.
12. BooksRun
BooksRun is a website that buys books. To get started, enter the ISBN number on the back of the book and you’ll receive a quote. Books ship for free with a QR code, so you don’t even need to print out a shipping label yourself. Once the book is received, you’ll receive a check or PayPal within 4 days.
There’s also a BooksRun app that makes it even easier to sell your books.
13. Bookscouter
BookScouter is an online book buying program where 30+ vendors compete to buy your books and this is one of the best apps to sell used books. You can compare offers with a single search, making it incredibly easy to find the best place to sell your books. BookScouter shows you the highest buyback price and will even track price changes and send you price alerts.
There’s even a BookScouter app, making it as easy as possible to sell your books online. Books must be in new or in almost new condition and cannot have missing pages, broken spines, excessive writing or highlighting, or water damage.
14. Cash4Books
Cash4Books is a platform that buys books for cash. To get started, take a picture of your collection of books and then you’ll receive a quote.
Cash4Books is known for buying 500+ books at a time at estate sales and similar places. They specialize in buying personal academic collections and are interested in non-fiction and academic titles of all kinds.
This platform is not interested in buying 1 or 2 books at a time, but instead wants to buy hundreds of books at once.
15. Your college bookstore (for textbooks)
If you want to sell your college textbooks as soon as possible, visit your local campus textbook store. Gather all of the textbooks you want to sell and make sure they are in good condition with minimal highlighting. Most college bookstores require a student ID to buy back your textbooks, so make sure to bring it with you.
Make sure to clean your books and wipe off any dust or debris. Visit the bookstore during open hours and the staff will evaluate the condition of the book and check if the book is needed for upcoming courses. If the book is needed, the staff will make you an offer based on the condition of the book and the current demand.
We have sold plenty of college textbooks over the years, and it is very easy to do!
Tip: If you’re in college, buying used college textbooks is also a great way to save money while you’re in college! Both me and my sister did this and it saved us hundreds of dollars each semester on books for our classes.
16. Local book store that accepts used books
It’s also a great idea to check local bookstores to see if they buy used books. Depending on the desirability and condition of the book, your local bookstore may want to buy it from you.
Call or email local bookstores to see if they have a buyback program for used books. You can also ask them what kind of books they’re interested in buying or take all of the books you’re wanting to sell straight to the bookstore. The bookstore staff will give you a quote and either pay you in cash or store credit.
I love local bookstores for this reason – I can find great used books for a fraction of the cost. Plus, you can find limited edition and more rare books at local book stores too.
17. Garage sales and yard sales
One of the easiest places to sell used books is at a garage sale or yard sale. It’s important to know you’re probably going to get the least amount possible for your books since you’ll have a much smaller customer base.
Most books at garage sales go for less than $1 and oftentimes go for 25 cents each. But, there are no shipping costs or monthly fees and all you have to do is put them outside, so that is very easy!
Make sure to advertise your garage sale online in Facebook groups and by posting flyers around town and letting people know that you are selling books for a deeply discounted price.
Also, if you want to just declutter your books and home, and you don’t care about making money, then another option is to simply donate your used books to a place like Goodwill.
Frequently Asked Questions About The Best Places To Sell Used Books
Below are answers to common questions about the best places to sell used books.
Where can I sell used books for the best price?
The best places to sell used books include Amazon, eBay, BookScouter, and Decluttr. Getting the best price for books depends on things like the condition of the books (are there stains?), market trends, and demand for the book.
How much money can you make selling books?
The amount of money you can make selling used books depends on a few factors, including:
Genre of the books
Target audience
Marketing strategy
Demand for the book
The most popular genres include mystery, romance, and science fiction. These books often have a larger read base which makes selling used books in this genre much easier.
How can you increase your earnings on used books?
There are many ways to increase your profit when selling used books, including:
Clean the book and get rid of dust before selling
Be transparent about the condition of the book
Include free shipping for your used books
Package books with care
How can I find out how much my books are worth?
One way to find out how much your used books are worth is by using Book Scouter. All you need to do is enter the book ISBN number and they will tell you how much you can possibly get for the used book.
What kind of books can you sell?
The types of books that sell best include textbooks, comic books, hardcovers, popular fiction, and more. You can sell any type of book!
Is Amazon a good place to sell books? Can you still make money selling used books on Amazon?
Amazon is a good place to sell books online because of its large customer base and global reach. You will have competition on Amazon, but with the platform’s wide reach, you’ll have a chance to attract multiple buyers looking for your books.
You can fulfill orders yourself or use Fulfillment by Amazon (FBA) which is where Amazon handles the storage, packing, and shipping of your books. This can save you a lot of time. Also, you get access to Prime members which means your books may qualify for Amazon Prime shipping, which makes your books more appealing to customers who have Prime.
Does Barnes and Noble buy used books?
Barnes and Noble is primarily focused on buying textbooks and you must have $10 worth of books to sell in order to participate in their buyback program.
Best Places To Sell Used Books – Final Thoughts
I hope you enjoyed this article on the best ways to sell used books.
There are many places to sell books ranging from online platforms like Delcuttr or Amazon or selling in person at bookstores like Half Price Books or Powell’s Books.
To get the most money for selling your books, enter the ISBN code on several different websites to find who will give you the best quote.
If you have a stack of books collecting dust, you might as well make some extra money with them!
Have you sold used books in the past? Where’s your favorite place to sell your old books?
A MOM has shared how she snagged a Walmart item that rivals a Crate & Barrel buy for a fraction of the price.
She said that it’s a great addition to anyone’s home, so it’s best to buy it soon before it sells out.
Mom Brittney (@thegloshowfam) is a home decor enthusiast who loves budget-friendly finds.
She showed viewers in a video how she got a similar style to a popular decorative storage basket.
“It’s back. The Crate & Barrel dupe basket from Walmart is finally back in stock, and it’s not just back in stock, it’s on sale as well,” she said excitedly.
Brittney held up the large cardboard box with the deal item inside.
READ MORE WALMART
“Go run and get it. This is a seriously affordable find,” she said.
For only $35, she got a Walmart look-a-like, the Better Homes & Gardens Closed Weave Polyester White Decorative Storage Basket.
It’s similar to the Crate & Barrel Conway Round White Cotton Storage Basket, $150.
“If you need a gift for someone who’s hard to buy for, this would be a great gift because they could use it in a number of different ways and literally, this basket looks good in everyone’s home,” she gushed.
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When she unboxed the basket, she couldn’t help but squeal in excitement.
She called it the “dupe of all home decor dupes” in the video caption.
Although it is currently sold out on the Walmart site, it regularly restocks online.
Viewers were intrigued by the great price and offered feedback in the comments.
“Oh gosh! Had no clue it was a popular item. I got it two months ago and use it for laundry basket in bedrooms,” one commented.
Brittney replied: “That’s amazing!”
“I just needed this so bad,” a TikTok user chimed in.
“I’ll wait when back in stock. Thank you for sharing,” a fan praised.
“America’s Finest City” has a price-point, and amenities, that live up to its nickname.
The eighth-most populous city in America, San Diego typically ranks around the same for the cost of living compared to other major cities in the country. Overall, San Diego’s cost of living comes in at 44 percent above the national average.
While that may seem steep, it’s important to realize that within this expensive city, there are plenty of pockets where the cost of living is more affordable. San Diego residents may already know where to look, but it’s something you can calculate, too. It’s all about understanding the price, and whether your expenses are still affordable in the city.
Below, we break down the five factors affecting the cost of living in San Diego to help you discover if “America’s Finest City” is a fit for you.
1. Housing costs and utilities in San Diego
Housing in San Diego doesn’t come cheap. In fact, the uninitiated may experience sticker shock at first glance when it comes to home prices.
Overall, housing costs are a whopping 115.6 percent higher than the national average. This is only slightly below the housing costs in Los Angeles and Orange County, and considerably higher than most California cities.
The average rent for a one-bedroom apartment in San Diego is about $2,887 per month, which is a 1 percent decrease in cost over last year. A two-bedroom is around $3,788 per month on average, a 1 percent increase over last year. Those prices fluctuate depending on the neighborhood and amenities.
If you’re looking to buy a home, the median price in San Diego is $930,000. Home prices are up 3 percent over last year. Most homes in San Diego sell within days, so if you have the means, you need to act fast.
To better understand how housing costs in San Diego compare to the rest of California, the average cost for a two-bedroom apartment in San Francisco is $4,939, over $1,151 more. The average home price in Los Angeles is $975,000, $45,000 more. The San Diego cost of housing may feel high, but it’s definitely not the highest in the state.
Apartment hunting around San Diego County
Although San Diego is an expensive city, prices vary greatly based on the neighborhoods you decide to check out. The difference in living expenses between a more expensive San Diego spot, and the least expensive, is pretty significant.
Trendy North Park, with its vibrant restaurant and nightlife scene, is an expensive neighborhood in the city, with one-bed rental prices at $2,300 per month on average. But, rest assured, there are plenty of areas offering apartments for a fraction of that price.
Case in point, City Heights, located inland and to the east of many better-known San Diego communities, offers one-bed apartments for an average rent of $1,700. Areas like Colina del Sol and Paradise Hills are also on the more affordable side, with one-bed rents averaging the same at $1,650 a month.
Utilities in San Diego
San Diego is known for its beautiful weather. Average temperatures hover around 76 degrees Fahrenheit for most of the year, but you’ll still feel some seasonal change, lots of rain and the occasional cold front.
If you live inland, summer days are scorchers, leading locals to crank up that air conditioning. On the flip side, some nights in the winter get really cold. As a result, a person could pay a hefty price for AC and heat.
Taking this into account, overall utility costs are 13 percent higher than the national average. This is an actually a increase over last year, where this particular piece of the cost of living in San Diego was 10 percent above the national average. Inflation has contributed to this number for every state.
2. Food costs and goods and services in San Diego
San Diego is famous for its diverse culinary scene. Whether you’re more inclined to try a pasta dish in Little Italy, some chile rellenos at an authentic Mexican restaurant in Old Town or fish tacos, a local favorite, you can find a deal on a meal just about anywhere. However, when it comes to casual dining, meals average out to around $25 per person.
Of course, most people don’t eat out all the time. With dozens of quality supermarkets and plenty of neighborhood farmer’s markets, meal planning and finding a deal on food is easy.
Keep in mind that groceries in San Diego run 10 percent higher than the national average. You’ll pay extra for certain staples like milk ($2.17 for a half-gallon), eggs ($4.85 for a dozen), bread ($3.63 for a 24-ounce loaf) and ground beef ($8.08 per pound).
Commodities and entertainment costs
As you tally up expenses in your cost of living calculator, don’t forget to budget for goods and services. This includes all the extras on your monthly expense sheet that you could live without, but really don’t want to deny yourself.
This category includes things like a session at a yoga studio ($24), movie tickets ($12.5 each), dry cleaning ($24) and a trip to the beauty salon ($80).
Overall, goods and services in San Diego cost 10 percent more than the national average, a slight dip of less than one percent over last year.
3. Transportation costs in San Diego
One of the many luxuries about life in San Diego is that the freeways are much calmer than those of Los Angeles. Traffic is tame during most hours of the day, although it gets a bit congested around common commute times. Still, transportation expenses are slightly higher than those in Los Angeles and 30.4 percent higher than the national average.
For any person who decides to use a car to get around the city, be prepared to pay to park. Parking can range from as little as $7 to as much as $32 based on parking type and whether you need to keep your car there overnight.
For those who choose to forgo driving altogether, San Diego offers an accessible public transportation system. The San Diego Metropolitan Transit System provides bus and trolley services across San Diego County, including a dedicated line for the University of California, San Diego.
Bus and trolley fares are the same. One way will cost $2.50, but you can purchase a day pass for $6 or a monthly pass for $72. Family weekends allow you to save a little on transportation. Up to two children, 12 and under, can ride free with a fare-paying adult.
If you just want to get around and enjoy life outside, San Diego’s layout makes it ideal for walking — it’s also convenient for bike enthusiasts. The city has a walk score of 53 and a bike score of 43.
4. Healthcare costs in San Diego
Healthcare is a primary concern in most people’s minds, and in San Diego, you can expect to pay slightly more in this category — about 7.2 percent above the national average. This is a slight dip in overall costs from last year.
Prices now are about 1.4 percent less. It’s also not the highest-priced city in the state by far. Los Angeles and most major cities in Northern California are higher than San Diego’s cost of living for healthcare.
A visit to a doctor will cost you about $145, while a dental checkup will run you around $120. You can also expect to pay a bit more for medications. For example, the median price for a bottle of Ibuprofen is about $13. When you factor in the maintenance appointments you’ll need each year, and your list of prescriptions, the price can add up.
Calculating average healthcare costs for everyone is difficult. Everybody has different needs for their body and healthcare routines vary drastically. As a result, you should consider your typical healthcare routines when creating your cost of living budget, factoring in your medicine regimens and insurance coverage.
5. Taxes in San Diego
Since taxes vary by location, it’s easy to get confused when it comes time to budget accordingly. Sales tax in San Diego is 7.75 percent. However, neighboring cities, where you may go shopping, can vary.
Live in San Diego, but prefer to shop in Oceanside? You’ll pay 8.25 percent in sales tax.
How much do I need to earn to live in San Diego?
Earlier, we discussed the fact that the housing piece to your cost of living in San Diego is quite a bit more than in other locations.
Experts generally recommend you allocate at least 30 percent of your annual income to rent, which means you should know the average salary that aligns with the average rent.
If a one-bedroom in San Diego is $2,879 per month, you’d need a job that pays at least $115,160 per year. You may have to consider a roommate or some creative living situation, given that the median annual income in San Diego is $89,457.
Although lower than what you’d need to pay the average rent, it’s not impossible to live comfortably. Our rent calculator can show you exactly how much you can afford and help you target specific areas within your budget.
Living in San Diego
San Diego is a wonderful place to live if you love warm beaches, temperate climates, great food and a lively club scene. It’s no wonder 35 million people visit each year and some of them end up living in San Diego after their vacation.
Whether those people choose to plant roots depends a lot on budget. What can you afford?
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2023.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
If you’re financing a home with a mortgage, ensuring you get the best possible rate is one of the smartest financial moves you can make.
While it takes some legwork, the pay off is hard to argue with. Shaving even a fraction of a point from your rate can save you hundreds of dollars each month and tens of thousands over the life of the loan.
For example, with a $400,000 mortgage, dropping from a 7% to a 6.5% rate would save you almost $50,000 in interest over a 30-year term—roughly enough to pay for a year of private college.
Mortgage rates change constantly—and differ across mortgage companies. Here’s how to take advantage of those facts, compare current mortgage rates and get the best deal.
Current mortgage rates: How high are average mortgage rates right now?
WEEK ENDING
AVERAGE 30-YEAR FIXED RATE
AVERAGE 15-YEAR FIXED RATE
Dec. 28, 2023
6.61%
5.93%
Dec. 21, 2023
6.67%
5.95%
Dec. 14, 2023
6.95%
6.38%
Dec. 7, 2023
7.03%
6.29%
Nov. 30, 2023
7.22%
6.56%
Freddie Mac
Mortgage rates continued to cool in December, though averages remain high compared to recent years. According to mortgage-purchaser Freddie Mac, the average rate on 30-year fixed-rate mortgages fell from 7.22% at the start of the month to 6.61% today.
Rates dropped thanks to the Federal Reserve, which indicated cuts to its federal-funds rate—which mortgage rates generally follow—are likely come 2024. “This was a positive for mortgage rates, as we have seen them drop to a several-months low,” says Scott Haymore, who heads up mortgage pricing at TD Bank.
The drop in rates has spurred a modest increase in affordability for homebuyers. According to the Mortgage Bankers Association, the average new mortgage payment is now $2,137, down about $60 compared to November.
Still, rates are also a far cry from the record-low of 2.65% that came during the pandemic.
AVERAGE RATE
DATE
Current rate
6.61%
Dec. 28, 2023
This time last year
6.42%
Dec. 29, 20222
Highest point in last decade
7.79%
Oct. 26, 2023
All-time high
18.53%
Oct. 16, 1981
All-time low
2.65%
Jan 7, 2021
Freddie Mac
Where are mortgage rates headed?
Mortgage rates are influenced by many factors, including the economy, investments into mortgage-backed securities, the Treasury bond market, inflation and, perhaps most important in recent years, moves by the Federal Reserve.
Between March 2022 and July 2023, the Fed increased the federal-funds rate—the rate at which banks can borrow money—11 times. And over that period, 30-year mortgage rates jumped from under 4% to over 7%. (To be clear: The Fed doesn’t directly set mortgage rates. Its federal-funds rate and mortgage rates tend to move in the same direction, though.)
The Fed has recently been easing off those rate hikes, opting to keep rates as-is at the last three meetings. If inflation keeps dropping—it fell to 3.1% in November—Fed officials expect to make three potential rate cuts next year, though nothing is set in stone. This would likely mean further drops in mortgage rates, too.
MBA currently projects the average 30-year mortgage rate will fall to 6.1% by the end of 2024. Mortgage purchaser Fannie Mae expects rates to drop to 6.5% by year’s end. Both would be an improvement, but according to Haymore, it won’t do much for overall housing affordability.
“Housing inventory remains low and affordability is an issue for many potential homebuyers,” Haymore says. “Those challenges will continue—even with rates falling.”
How are mortgage rates set?
While the Fed influences mortgage rates, it is only one piece of the puzzle. Other external factors play a role, too—as do the details of your financial situation and loan choice.
Here’s what you need to know about what determines your mortgage rate.
External factors
The overall state of the economy is a big contributor to the path of mortgage rates. When the economy is strong, rates tend to be higher. When the economy sputters, rates drop.
“Interest rates often will rise or fall based on the strength of the economy, and ironically, bad news can be good news for lower interest rates,” says Bill Banfield, an executive at lender Rocket Mortgage.
This is due in part to how economic conditions impact investment activity. When there are geopolitical concerns or the economy is wavering, investors tend to flock to safer investments—which include things such as Treasury bonds and mortgage-backed securities. This pushes the yields on those securities down (yields fall when bond prices rise), taking mortgage rates down with them.
“When there is high demand for mortgage-backed securities, the prices of those MBS increase, which in turn can lower mortgage interest rates,” says Tanya Blanchard, founder of mortgage brokerage Madison Chase Capital Advisors. “This is because investors are willing to accept lower returns on their investments when the prices of MBS are high.”
Finally, inflation factors in, too—and not just because of the Fed reaction. It also increases the costs for lenders to originate loans, which drives their prices higher as well.
Personal factors
Your personal finances will factor into your interest rate as well. First, there’s your credit score. Mortgage lenders use this number to gauge your risk as a borrower—or how likely you are to default on your loan. The lower your score, the higher the rate you’ll need to pay to compensate for the perceived risk.
“Credit score is a very important consideration when applying for a mortgage,” Banfield says. “If someone has a proven track record of being responsible with their finances, they’ll be more likely to get a mortgage and a better rate.”
The size of your down payment is important, too. A larger down payment means you have more to lose, which hopefully discourages you from defaulting. Smaller down payments, on the other hand, mean more risk for the lender and higher rates for you as a result.
Loan-specific factors
Last but not least, the type of mortgage loan you choose will also influence your rate. Loans backed by the government, such as Federal Housing Administration-backed FHA loans and Veterans Affairs-backed VA loans, tend to have lower rates than conventional or jumbo loans since they come with the federal government’s protection. Shorter-term loans (15 years, for example) also have lower rates than longer-term ones (30 years).
As Goodwin explains, “While a shorter-term loan will come with a higher monthly payment, it could save you thousands on interest in the long run.”
How, when and why to compare mortgage rates from different lenders
Because every lender has different overhead costs, operating capacities and appetite for risk, mortgage rates can vary significantly from one company to the next. That’s why it’s important to consider several lenders before choosing where to get your loan.
Freddie Mac recommends getting at least four quotes (it could save you an average of $1,200 a year, apparently). Just make sure you’re not only going by the rates a lender advertises on their website or on third-party sites.
“Looking at advertised rates alone is not a good way to shop around,” Goodwin says. “Lenders typically display the lowest rates they offer as a headline to attract leads, but the actual rate you may be offered can vary dramatically depending on your own financial situation and the kind of loan you’re looking for.”
Many advertised rates also include mortgage points—meaning you would need to pay an extra upfront fee to snag it.
To get a rate that is truly a reflection of what you would pay as a borrower, you need to apply for preapproval. You’ll have to fill out an application and agree to a credit check for this. Once you’re done, you’ll get a loan estimate that will detail the total loan amount you are likely to qualify for, plus your interest rate and expected closing costs—or the fees required to originate, underwrite and close on your loan. Be sure to look at the APR, too—the annual percentage rate. This reflects the total annual cost of the loan, considering both your rate and any fees.
Be warned, though: The rates you’re quoted aren’t guaranteed until you lock your rate. A rate lock guarantees your interest rate for a set period—usually only 30 to 60 days, depending on the lender. You’ll typically do this once you’ve found a home and have a contract in place.
How to calculate your mortgage costs
Comparing mortgage offers might seem tedious, but financially, it’s usually worthwhile. Even a small change in rate can have a big impact on your monthly payment and long-term interest costs.
You can use a mortgage calculator to break down the exact costs or use your loan estimate. This should detail your monthly payment, your interest rate and your total interest paid in five years.
See the difference that incremental rate changes can make on the cost of a 30-year, $400,000 home loan below:
RATE
MONTHLY PAYMENT
INTEREST OVER 30 YEARS
5%
$2,147
$373,023
5.25%
$2,208
$395,173
5.50%
$2,271
$417,616
5.75%
$2,334
$440,344
6%
$2,398
$463,352
6.25%
$2,462
$486,632
6.50%
$2,528
$510,177
6.75%
$2,594
$533,981
7%
$2,661
$558,035
Keep in mind that most mortgage loans are amortized, meaning the total costs are calculated and then paid in even payments across the loan term. With these loans, you’ll pay more interest upfront and less toward the end of the term. For example, your first payment at 6% would see $2,000 go toward interest, while your final payment would have just $11.93.
“At the beginning of the loan term, the majority of the monthly payment will go toward interest,” says Colleen Bara, a lending executive with Key Bank. “As the loan is paid down, more of the monthly payment is allocated toward the pay-down of the principal balance.”
This means if you sell your home quickly after taking out your loan, you likely won’t have paid down your balance much—and may not make much from the home, profit-wise. If this is a concern, making an extra payment each year you’re in the house can help.
“Make one extra principal payment yearly and you can shave off approximately seven years of interest,” Blanchard says.
More on Mortgages
The advice, recommendations or rankings expressed in this article are those of the Buy Side from WSJ editorial team, and have not been reviewed or endorsed by our commercial partners.
By comparison, agency net MBS issuance in 2021, when interest rates were half of what they are today, came in at $870 billion, according to Amherst. Net issuance in MBS represents new securities issued less the decline in outstanding securities due to principal paydowns or prepayments.
Spread expansion
Adding to the woes in the agency MBS market are outsized spreads, with the spread between the 30-year fixed mortgage and the benchmark 10-year Treasury hovering around 2.9 percentage points in early December, when historically that spread has ranged between 1 to 2 percentage points. That wide spread has squeezed margins on agency MBS, with 6% coupons at yearend 2023, for example, trading at a fraction of a percentage point above par, down from nearly 10 points above par at the end of the first quarter of last year.
Amherst Chairman and CEO Sean Dobson said the shrinking margins in the agency MBS sector are a byproduct of an over-supply of paper and a greatly reduced investor balance sheets for absorbing the debt. A major purchaser of agency MBS until last year was the Federal Reserve, he explained, which is now allowing up to $35 billion of MBS to roll off its balance sheet each month.
The reduced role of the Fed and other investors in the agency MBS market is acting as a type of governor on rates, preventing them from getting much downward traction. As origination volume increases, and related MBS issuance goes up, so does the supply of MBS for sale in the market — creating downward pressure on prices, assuming buyer demand remains repressed.
Andrew Rhodes, senior director and head of trading at Mortgage Capital Trading, said a loan originator is trying to estimate where their end investor is going to be buying the loan, “so whether it’s the whole loan or the securitization, they are trying to figure out exactly what that price is going to be.”
“Then the independent mortgage bank (IMB) can originate the loan to that level because that’s how they’re really managing that margin,” he added. “And if all of a sudden, your investor that you thought was going to be spending 103 or 104 [for that loan or MBS] is now at 102, that’s a big hit to that origination volume that you thought was going to be getting a point or two higher in price.”
Dobson said heading into the end of 2023, the securitization market “is structurally impaired right now because the normal sponsor [investor] base is absent.”
“Some of them are gone forever, and some of them are basically going to have to rebuild capability,” he said. “…This is speculative to a certain extent, but should rates go down, and should a lot of [new MBS] supply get created because of refinancing activity, the market is going to have a really hard time with that.
“…So, now the question is, what’s the new level that gets it [MBS] to clear when the normal sponsors [investors, such as the Fed] are offline, and that new level is an excess return that’s now something like 50 basis points wider than corporate bonds.”
Amherst projects that in 2023, the pull-back of the Federal Reserve as well as the banking sector from the agency MBS market will result in a combined $425 billion in excess MBS that will need to be absorbed by other investors, such as money managers and foreign investors.
“I think the Fed will not sell MBS but rather is prepared to keep letting the portfolio run off, even if they start cutting rates,” said Richard Koss, chief research officer at mortgage-data analytics firm Recursion.
“The Central Bank has expressed its interest in reducing its role in the mortgage market and would rather cut rates more if needed, rather than slow down the process of reducing its holdings of MBS,” Koss added.
Bank contraction
In addition to the reduced role of the Fed in the MBS market, the banking industry and other investors also have pulled back from MBS purchases in the wake of financial pressures sparked by rising rates — as well as plans by regulators to tighten bank capital-reserve rules.
“The problem is … the benchmark of fair [MBS] value was set when the GSEs [government-sponsored enterprises, Fannie and Freddie] could buy [MBS], when the banks could run huge balance sheets, when the REITs [real estate investment trusts] could run big balance sheets, and when the regional banking system wasn’t [impaired],” Dobson said.
Over the past year, a number of large banks have collapsed — among them Silicon Valley Bank, Signature Bank, First Republic Bank and Signature Bank.
“I think there are seven or eight banks total that exited warehouse lending this year, [such as Comerica and Fifth Third Bank],” said Charley Clark, a senior vice president and mortgage warehouse finance executive at EverBank (formerly known as TIAA Bank). The unit does warehouse and MSR lending “and really anything that relates to lending to IMBs [independent mortgage banks],” according to Clark.
The top 15 warehouse lenders as of the end of the third quarter of this year had extended nearly $80 billion in warehouse line commitments, representing about 80% of the market, according to an Inside Mortgage Finance report.
“We were not part of this, but there were definitely funding and liquidity issues [for banks this year], not only just liquidity issues in general, but the cost of funding on the margin,” he added. “So, it was not only hard to find deposits, but they’re expensive.
“And if you look at something like warehouse lending [to IMBs], the spreads are very tight. If you’re a bank that’s having liquidity and funding issues, what are you going to cut? You’re going to go to the lower spreads to cut, right?”
Other sectors
The narrative is similar for the private-label residential mortgage-backed securities (RMBS) market.
A yearend forecast report by the Kroll Bond Rating Agency (KBRA) projects that RMBS issuance in 2023 will come in at about $52 billion, down nearly 50% from 2022 and $10 billion below KBRA’s original projection for the year issued in November 2022. KBRA includes prime, nonprime, credit-risk transfer transactions and second-lien offerings in its RMBS analysis.
“[Reduced] mortgage volumes and continued spread volatility in a rising rate environment contributed to a meaningful issuance decline [in 2023],” KBRA’s recent forecast report states.
Ben Hunsaker, portfolio manager focused on securitized credit for Beach Point Capital Management, said for real growth in the housing market to occur, mortgage originations need to increase substantially along with higher securitization volumes, “and it doesn’t seem like that’s highly likely right now.”
“In the case where the Fed cuts [the benchmark rate by] 250 basis points, I’m not sure that’s necessarily a scenario where housing volumes are great and housing prices are strong because that would probably be pretty correlated with a really weak consumer or some recessionary-type outcome,” he added. “And then you have to have wider spreads [due to increased risk], which means the value of creating those mortgages and securitizing them is again hampered.”
If there was one bright spot in the secondary market in 2023, it was the mortgage-servicing rights (MSR) sector, which performs better in rising-rate environments because mortgage prepayment speeds slow to very low levels and returns from parked escrow deposits also rise — both of which help to pump up the value of MSRs. Trading volume in the MSR sector in 2023 is on track to slightly exceed 2022’s $1.1 trillion mark, according to Tom Piercy, chief growth officer at Incenter Capital Advisors(previously Incenter Mortgage Advisors).
“For 2022 [on MSR trading volume], my numbers were right around 1.1 trillion, and I expect 2023 to be slightly greater than that,” Piercy said. “However, I think it [trading volume] was front-end loaded over the first six to seven months of the year … but we continue to see the capital commitments to invest in MSR both from your traditional bank, and nonbank servicers, as well as the MSR investors.
“And so, I’m still quite bullish on where we are today, as we forecast the capital and the ability to absorb the MSRs in the market.”
Guild Mortgage has an ambitious plan under the leadership of its new CEO, Terry Schmidt. The California-based retail lender has set a target of becoming a top-10 lender in the markets in which it has a presence, which would give it about a 2% market share.
It won’t be easy. United Wholesale Mortgage, the top lender in the country by volume, had just under 8% total market share over the first nine months of 2023. By the same measure, Guild had just 1.1% nationally, per Inside Mortgage Finance (IMF) estimates.
The company hopes to reach its goal by growing organically with more loan officers under a dozen business development managers. It’s also looking for companies to acquire — and it’s among the most aggressive lenders out there.
“Firstly, we’re growing our national footprint and we’ve been doing that for many years. We really feel like this [M&As] is an opportunity for us,” Schmidt said in an interview. “We’ve got a great capital base, so we have the opportunity to invest. When we’ve been in situations like this in the past, we’ve done the same thing where we want to continue to gain market share and, at the same time, add good sales and fulfillment talent to our franchise.”
Publicly traded Guild acquired three lenders in 2023 – Legacy Mortgagein February, Cherry Creek Mortgage in March and First Centennial Mortgage in August.
Some of their competitors are working off a similar playbook, acquiring top sales talent or mortgage servicing rights through M&A deals. Those who couldn’t find a dance partner shut down production channels or left the mortgage market behind entirely. There were also a few cases of bankruptcy.
HousingWire tracked 62 mergers, acquisitions, exits and bankruptcies covered by the newsroom in 2023. M&A deals comprised 79% of the total, followed by 17.7% exits and 3.2% bankruptcies. One caveat: our reporting likely shows only a fraction of what happened in 2023 because not all deals are public, as most mortgage companies are privately owned.
“This market consolidates very slowly. Except for the largest firms, virtually everybody is privately owned and sole proprietorships,” Warren Kornfeld, senior vice president of the financial institution’s group at Moody’s, said. “But given how hard this market has been and that scale is becoming more important with technology, smaller companies are under more pressure. We do expect a lot of those will say, ‘It’s time to sell,’ ‘It’s time to close up shop,’ and ‘I don’t want to support a losing operation.’ ‘I just really can’t compete.”
As 2024 is not expected to be stellar, analysts foresee more M&A and exits next year. However, some analysts believe these transactions will not happen at the same pace as in previous years.
“I would imagine that there are some companies that have survived long enough, but I think it’s fewer and fewer, and you’ll see less either consolidation or exits in the space,” Joseph Kyle, a specialty finance equity research analyst at Jefferies, said.
“If you’ve made it this far, maybe you’re through the woods at this point. But maybe there are a couple of stragglers and weaker competitors that still end up having to shut down in 2024 because by no means is it going to be like a heroic year of origination. But I don’t think you’ll see to nearly the same extent that you saw in the second half of 2022 and earlier in 2023,” Kyle said.
HousingWire spoke to two lenders to understand their M&A strategies for 2024. What are the companies’ goals with these transactions? Who are the potential targets?
Guild, the most active lender in terms of M&A deals on our list, wants to expand its retail business model nationwide to gain market share. Meanwhile, Planet Home Lending, the only lender among the top-14 to increase origination volumes from January to September, compared to the same period last year, said it wants to also grow its servicing business. Guild: growing the national footprint
Some companies engage in M&A to expand their sales force throughout the country without needing to change their business model.
Guild’s Schmidt said she has had many of these conversations – meaning M&A talks. According to Schmidt, the number of executives offering their businesses has been steady and hasn’t slowed down all year of 2023. But just a few usually caught the lender’s attention.
“First of all, we like the retail footprint because everything we’ve done with our platform has been built around the retail footprint. The cultural fit has to be strong to make this work going forward. If we don’t have a strong market in that geography, we like to bring in talent that knows the area because we are ‘boots on the ground’ with retail branch offices,” Schmidt said.
Despite having licenses everywhere, except in New York, Guild is interested in acquiring businesses where the company has a small market share, like the Southern states and Midwest. Guild is not focused on the target’s size but on how they can use the company’s platform to grow.
Sellers usually have an efficient sales force but can’t afford the back-office operations. Despite the refi boom years during the Covid-19 pandemic, some companies could not retain capital or excess cash on their balance sheet. Now under pressure in a shrinking market, they see their top loan officers transition to other competitors.
Ultimately, according to industry experts, the corporate administrative expenses, which represent 50 basis points or less of each loan during a booming market, double in relative costs when loans are scarce. That’s when M&As make sense.
“If it’s a smaller organization that maybe can’t afford the back office any longer, maybe that’s [M&As] a value added to them,” Schmidt said.
From a buyer perspective, Schmidt added that “you have to be realistic” because it’s going to take “a bit of time to get these organizations up to speed on your platform,” which can be “as short as 90 days or longer than that.”
According to Schmidt, Guild’s strategy is going to be very similar next year, including M&As.
“How much? That’s hard to tell. We feel like what we’ve done this year has added value to the organization. We still have the ability to continue to invest because of our capital,” Schmidt said. “As you know, this next year is still going to be problematic. There’s gonna be challenges. So, we still feel like it’s an opportunistic time.”
Planet Home Lending: Focusing on MSRs
Some M&A transactions are not motivated purely by the origination platform. Mortgage servicing rights (MSRs) are an attractive asset for some acquirers.
Take Planet Home Lending as an example. In April 2022, the company agreed to acquire assets from Homepoint’s delegated correspondent channel for $2.5 million in cash – later, Homepoint sold the wholesale business to The Loan Store and its parent company shut down, selling $84 billion in MSRs to Mr. Cooper. Planet’s transaction with Homepoint, however, doubled its client base in the correspondent space.
“The Homepoint acquisition worked really well for us. We had about 400 sellers on our own. Then, the net new sellers that came on with Homepoint was about 400 more. It was rare and unique to find something that fits so well for us,” John Bosley, the lender’s president of mortgage lending, said in an interview. “But acquisitions that are out there become less and less sort of attractive on that side. We’re not opposed to looking at them, but we just haven’t seen a lot that makes sense on the correspondent side.”
For Connecticut-based lender and servicer Planet, expanding its retail operation and servicing portfolio makes sense now.
In June 2023, Planet acquired Illinois-based retail lender Platinum Home Mortgage Corporation, inheriting most of the seller’s origination staff and branches throughout the country. The deal expanded Planet’s footprint in the Midwest, Northwest and West Coast markets – after this deal, the company is looking for more opportunities in the South East.
However, the Platinum transaction added more than geographical expansion.
“Platinum was interesting and exciting to us because we had the opportunity to do two things: grow our retail channel and expand our MSR portfolio,” Bosley said. “When we looked at it from a retail acquisition perspective, it made a lot of sense because they weren’t in the geographies that we were in. Then, since we’re actively expanding our MSR portfolio, what came along with it was a nice side MSR book, so it kind of fit really well with us on that side,” Bosley added.
Bosley said Planet is more focused on the government MSRs space but can also do conventional. He said the company has about $100 billion in owned and sub-serviced MSRs. Obviously, “the bigger the portfolio gets, the cheaper the cost of servicing gets,” which is why the company wants to expand its MSR holdings.
Regarding the market overall, Bosley said he expects the end of 2023 and early 2024 to have “a decent amount” of M&A activity, slowing down in the second quarter of 2024 when volume is higher cyclically.
Remarkably, for Planet, he said, “I’m cautiously optimistic about our M&A activity.” That’s the best way to “move the needle faster,” Bosley said.
Austin has a reputation as a global live music capital, a hipster haven and an outdoor enthusiast’s dream come true. Best of all? The cost of living in Austin is still more affordable than most bustling metropolises.
Even though locals complain about skyrocketing prices, the overall cost of living in the Lone Star State capital is just a fraction higher — only 1.2 percent — compared to other cities.
The most expensive part of living in Austin is housing, but even that’s offset by savings on gas prices, transportation, utilities and food. It would be negligent not to mention the quality of life — which is impossible to put a price tag on — that Austinites will proudly tell you is one of the highest around.
Year-over-year cost of living changes in Austin
We’ll deep dive into the data and highlight the cost of living and rent in Austin, but first, here’s a snapshot of year-over-year changes in the cost of living in Austin.
Groceries: -0.22%
Housing: +1.82%
Utilities: no change
Transportation expenses: -3.57%
Healthcare: -3.41%
Miscellaneous expenses: -2.23%
As you can see, in most categories, the cost of living has actually decreased. However, the average housing costs increased by almost 2 percent.
Now that we’ve highlighted annual changes from the past year, let’s look into each category so you can put together a living calculator and determine if this is one of the best places for you to call home.
Average rent is cheaper than San Francisco
How you feel about the housing market in Austin depends on where you’re coming from. New York City and San Francisco transplants will find property value refreshingly affordable, while those moving to Austin from smaller cities may find average rent surprisingly expensive.
Average rents for Austin apartments have increased compared to last year. A one-bedroom apartment in Downtown Austin is up 45 percent and costs an average of $1,523 per month. Of course, the cost of housing varies pretty dramatically depending on what part of Austin you’re in.
Average apartment rent in Austin
When you compare the cost of rent for a one-bedroom in Austin to a one-bedroom in San Francisco, you’ll realize the price difference. A one-bedroom in San Fran averages $3,368 a month.
Minutes from Downtown and a short walk to all things boutique and hip, Bouldin Creek rents average around $3,037 per month. Triangle Slate, Central Austin and Barton Hills have all seen price hikes for one-bedroom apartments and range from $2,146 to $2,588. These are some of the most popular neighborhoods and you’ll pay a higher price to live here.
More typical, however, are the family-friendly neighborhoods of Clarksville and Brentwood, with average rents ranging from $1,825 to $1,839, respectively.
For bargain hunters, it’s possible to find even better deals on rent, like $950 in Crestview or $1,000 a month for a one-bedroom in North Loop.
Average cost of homeownership in Austin
Homebuyers will probably not be surprised to find that the real estate market is hot and housing prices are competitive. Housing costs in Austin are 11.8 percent higher than the national average. Data shows the average cost of a home in the best neighborhoods of Austin is $565,000.
Of course, home prices vary, but one thing is certain — most are going well above the asking price. In fact, according to Redfin, homes in Austin are selling at the biggest premium in the country, seven percent above asking prices and are on the market for an average of 38 days.
Cost of food in Austin
Food costs vary from Houston to Dallas to Austin, but one thing is for sure — foodies have much to celebrate in Austin. From celebrity chefs to taco trucks, good eats await around every corner, at every price point.
Budget diners can enjoy Taco Tuesdays at Quality Seafood with $2 beers and $2 seafood tacos. On the higher end, Sunday brunchers can savor authentic Mexican fare at Fonda San Miguel for around $39 per person.
Groceries in Austin cost about 8 percent below the national average. A dozen eggs will set you back $1.56, a half-gallon of milk is $1.98 and everyone’s favorite morning beverage, coffee, will cost $4.04.
Overall, Austinites will pay less for groceries compared to other cities. In fact, the cost of food decreased by 0.22 percent since last year in the same location, according to coli.org data.
Utility costs in Austin
Austinites are an outdoorsy bunch, whether it’s kicking back at a music festival or taking care of business from a coffee shop patio. But don’t be fooled by the sometimes mild climate — this is a city that loves its air conditioning and is willing to pay for it.
Luckily, utilities are about 5 percent below the national average, totaling around $155.01 a month for your total energy bill.
When you calculate the average rent and cost of living in Austin, don’t forget to include the cost of utilities. Your average rent budget should account for the cost of electricity, water, sewage, gas and internet.
Transportation costs in Austin
First, the good news: Transportation costs in Austin are about 14 percent lower than the national average. Now, the bad news: There’s a reason Austinites love to complain about the traffic.
With only two east-west interstates and no ring road around the metro, traffic in town is nothing to scoff at. Austin is often ranked in the top 10 worst commutes in the country, with average commute times around 40 minutes. One of the keys to happiness for life in this city is minimizing the time you spend on freeways.
Public transportation in Austin
The city has a fair transit score of 44 — primarily because of urban sprawl. Settling down in an area with access to public transportation can relieve some of the headaches of your daily commute. CapMetro is the local transit system, and it includes bus routes, light rail and university and airport shuttle buses.
Overall, CapMetro is an affordable option for getting around — if you’re not in a hurry. Kids under 18 ride free on all services, and the standard single-ride bus fare is $1.25. You can expect to pay $41.25 for a 31-day pass.
Even with the sweltering heat and sprawl, Austin’s overall walk score is 62. And with a bike score of 70, cyclists find Austin generally bike-friendly. However, the central parts of town are the most bikeable parts of the city and the most walkable: Downtown, Cedar Park, Central East Austin, all University of Texas areas, Hyde Park and Old West Austin. CapMetro buses and trains have bicycle racks that make it easy for folks to do a hybrid bike commute, even if they live in the suburbs.
Whether you’re using public transit to and from schools or your university or your job, renters can rely on public transit to get them around. Just don’t forget to account for this with your annual salary.
Driving costs in Austin
There are a handful of toll roads around Austin, which can significantly reduce driving times from the suburbs. The rates are confusing and vary dramatically, ranging from $0.62 to $2.79. For savings and convenience, a TxTag reduces tolls by about 25 percent and deducts from a prepaid account.
Driving is most people’s primary mode of getting around town, but it comes at a premium. Parking costs an average of $219 per month, and gasoline — while lower than the national average — still costs around $3.85 a gallon. Tire balancing costs about 10 percent less than the national average of about $43.10.
Healthcare costs in Austin
Always a hot-button issue, healthcare costs are one of those areas where your mileage may vary. Taking that into consideration, there are some general benchmarks that can give you an idea of overall healthcare costs in Austin.
A visit to an Austin dentist for a routine examination typically costs around $119, and a regular checkup with a family doctor will run you about $111.
If you’re paying out of pocket, expect to shell out around $473 for a prescription, which is right in line with the national average. But if an Ibuprofen is all you need, then you’re in luck — at $8.79 for a bottle, it’s a bargain.
Goods and services costs in Austin
Having covered the bare necessities, that leaves a world of non-essential — but not unimportant — spending to consider. Austin ranks well in this area, with goods and services just barely more than the national average.
Austin is a film buff’s dream — full of movie theaters showing everything from obscure classics to mega-blockbusters. An average movie ticket costs just $10.53, and if you’re at a BYOB backyard event, a six-pack of beer will set you back $10.12.
Staying fit and looking sharp is easy in Austin. Yoga studios dot the city, and the typical class fee is around $20, although monthly memberships will cut that fee in half or less.
Haircuts cost on average $28, and a visit to a beauty salon is usually around $50.
Even if you’re on a tight budget, you’ll find a ton of free entertainment and opportunities for physical activity in the many parks around town.
Taxes in Austin
For anyone new to the great state of Texas, the big bonus is that there’s no state income tax, which everyone loves come tax time. Effectively, tax rates are non-existent.
State sales tax is 6.25 percent which makes up most of the 8.25 percent sales tax in Austin. So, if you drop $1,000 on a flat-screen TV, you’ll spend an extra $82.50 in tax.
However, there are four sales tax holidays each year in Austin, each offering breaks in different categories. April is for emergency preparation supplies, Memorial Day weekend is for EnergyStar appliances and water-efficient products and August is for back-to-school items. These are perfect opportunities to buy big-ticket items at considerable savings.
How much do you need to earn to live in Austin?
For overall financial stability and well-being, finance experts recommend that your rent should not exceed 30 percent of your budget. For an average $1,599 apartment, that means that your average salary is $63,960.
According to the U.S. Census Bureau data, the average Austin income is $71,576. Use our rent calculator to see for yourself how you might need to tweak your budget to afford the average rent for an apartment in Austin.
Living in Austin
Most locals will tell you that life in the ATX lives up to the hype. “Come for the mild weather, stay for the Tex-Mex,” they say. OK, maybe nobody says that, but they definitely should.
Austin offers all the amenities of a big city — a booming economy, excellent food and world-class entertainment — while maintaining a famously small-town feel. From professional opportunities at tech companies to natural beauty, there’s always something more to explore in Texas’ capital city.
Regardless of your budget or tastes, there’s a home in Austin waiting for you. Check out the apartments for rent in Austin and find your landing spot today.
Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of March 2022. Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.