portfolio

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If you’re saving for retirement, a broad market index portfolio is typically a good option. Investing in a target date fund or S&P 500 index fund, for instance, are low-cost ways to gain broad market exposure. However, newly published research indicates there may be a significantly more lucrative way to handle your nest egg.

A financial advisor can help find the right mix of investments for your retirement portfolio. Find a fiduciary advisor today.

An analysis from Dimensional Fund Advisors suggests retirement savers can do better than following the standard advice to use index funds, for instance, to get a balanced portfolio. Portfolios built with a focus on size, value and profitability premiums can generate more assets and better longevity than broad market portfolios, according to the DFA research. In fact, a DFA researcher calculated that a portfolio that emphasizes these premiums would leave a hypothetical investor with at least 20% more money by age 65, even if market returns were less than the historical average.

“These results are encouraging. A portfolio that incorporates controlled, moderate premium exposure can strike a balance between higher expected returns than the market and the cost of slightly higher volatility and moderate tracking error,” DFA’s Mathieu Pellerin wrote in his paper “How Targeting the Size, Value, and Profitability Premiums Can Improve Retirement Outcomes.”

“As a result, targeting these long-term drivers of stock returns is likely to increase assets at the beginning of retirement.”

What Are Size, Value and Profitability Premiums?

As part of its research, DFA compared the simulated performance of a broad market index portfolio – represented by the Center for Research in Security Prices (CRSP) 1-10 index – against that of the Dimensional US Adjusted Market 1 Index.

The DFA index comprises 14% fewer stocks than the CRSP index and places a greater emphasis on size, value and profitability premiums. Here’s how the firm defines each:

  • Size premium: The tendency of small-cap stocks to outperform large-cap stocks
  • Value premium: The tendency of undervalued stocks – those with low price-to-book-value ratios – to outperform
  • Profitability premium: The tendency of companies with relatively high operating profits to outperform those with lower profitability

As a result, the DFA index is more heavily weighted in small-cap and value stocks, as well as companies with higher profits.

Premiums Produce Better Retirement Outcomes

To test the long-term viability of its premium-based portfolio, DFA ran an extensive set of simulations and compared the results against the CRSP market index.

First, Pellerin calculated 40 years’ worth of hypothetical returns for each portfolio, assuming an investor starts saving at age 25 and retires at age 65. Both portfolios are part of a glide path that starts with a 100% equity allocation and beings to transition toward bonds at age 45. By age 65, the investor’s asset allocation eventually reaches a 50/50 split between stocks and bonds.

Then, he calculated how both portfolios would fare during the investor’s decumulation phase. To do this, DFA applied the 4% rule. This rule of thumb stipulates that a retiree with a balanced portfolio can withdraw 4% of their assets in their first year of retirement and adjust withdrawals in subsequent years for inflation, and have enough money for 30 years.

DFA tested the portfolios using both historical returns (8.1% per year) and more conservative returns (5% per year).

When applying the historical rate of return, the portfolio that targets premiums would be worth 22% more than the broad market portfolio by the time the hypothetical investor reaches age 65. In the lower growth environment, the DFA portfolios would still deliver 20% more median assets than its counterpart, according to the research.

The hypothetical investor would also have a lesser chance of running out of money with the DFA portfolio. Using historical returns, the premium-focused portfolio failed just 2.5% of the time over a 30-year retirement. That’s nearly half as many times as the market portfolio, which posted a 4.7% failure rate.

That spread grew even larger when Pellerin ran the simulations with more conservative return expectations. Over the course of a 30-year retirement, the DFA portfolio ran out of money in just 12.9% of simulations when annual returns averaged just 5%, while the market portfolio failed 19.9% of the time.

Bottom Line

Investing in index funds or target date funds that track the broad market can be an effective way to save for retirement, but Dimensional Fund Advisors found that targeting stocks with size, value and profitability premiums can produce better retirement outcomes. When comparing a broad market index to one that focuses on these factors, the latter produced at least 20% more median assets and had lower failure rates.

Retirement Planning Tips

  • How much will you have in savings by the time you retire? SmartAsset’s retirement calculator can help you estimate how much money you could expect to have by retirement age and how much you’ll potentially need to support your lifestyle.
  • Retirement planning can be complicated, but a financial advisor can help you through the process. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Photo credit: ©iStock.com/Tinpixels, ©iStock.com/PeopleImages, ©iStock.com/adamkaz

Patrick Villanova, CEPF®
Patrick Villanova is a writer for SmartAsset, covering a variety of personal finance topics, including retirement and investing. Before joining SmartAsset, Patrick worked as an editor at The Jersey Journal. His work has also appeared on NJ.com and in The Star-Ledger. Patrick is a graduate of the University of New Hampshire, where he studied English and developed his love of writing. In his free time, he enjoys hiking, trying out new recipes in the kitchen and watching his beloved New York sports teams. A New Jersey native, he currently lives in Jersey City.

Source: smartasset.com

Apache is functioning normally

Loyalty? Not in the mortgage business. That is, if you actually want to save money on your home loan.

A few years back, an HSBC survey revealed that 52% of U.S. homeowners “switched providers” (sorry, they’re British) when obtaining subsequent mortgages.

This was mainly driven (53%) by the desire to get a better deal, aka a lower mortgage rate with fewer closing costs.

That survey also found that 46% of consumers investigated a mortgage switcheroo, again either to save money or to lock in a new low rate due to rising interest rates.

Other reasons homeowners decided to go with another mortgage company were because they moved and purchased a new property.

Or due to their current mortgage deal was expiring. I think they mean an adjustable-rate mortgage resetting.

Is It Bad to Switch Mortgage Lenders?

mortgage retention

A new report from Black Knight claims that loan servicers retained just 18% of the estimated 2.8 million homeowners who refinanced a mortgage in the fourth quarter of 2020, the lowest share on record.

Interestingly, those who refinanced to improve their rate and/or term were retained at a higher rate (23%) versus those pulling cash out as part of the transaction (11%).

This could be due to cash out refinances being harder to come by lately, and thus offered by fewer lenders. Or it just feeling more complex to the homeowner.

But here’s the biggie – among higher-credit quality rate and term refinances, borrowers who switched mortgage lenders received more than an eighth of a percent lower rate than those who refinanced and remained with their current lender/servicer.

In other words, you might get a lower mortgage rate if you switch mortgage lenders, instead of remaining loyal.

So is it bad to switch mortgage lenders? Not if you want to save money! Of course, your old lender might not feel the same way.

Mortgages Are Mostly a Commodity

  • Home loans aren’t all that different from one another
  • This is why lenders are increasingly coming up with unique ways to sell you one
  • The vast majority are 30-year fixed products whose only difference might be the interest rate or fees involved
  • And the majority just follow the underwriting guidelines of Fannie Mae, Freddie Mac, or HUD

It’s really no surprise that a lot of consumers don’t stay with their original mortgage lenders and/or loan servicers.

Aside from some existing lenders sometimes talking borrowers out of a refinance, the product is mostly the same no matter where you get it.

That makes customer retention difficult, especially when other lenders are aggressively marketing to homeowners.

These days, the majority of home loans are backed by the agency guidelines of Fannie Mae, Freddie Mac, or the government via FHA loans and VA loans. I think it’s something like 90% of mortgages.

This means mortgage loans are pretty homogeneous, despite what channel they’re originated in, or which institution provides the financing.

You could get the same exact home loan from a local credit union, a big bank, an online mortgage banker, or a mortgage broker.

And who really cares where you get your mortgage as long as the company is competent enough to close the thing, and honest in terms of rate and fees?

It’s not like you’re going to walk around and brag about your cool mortgage from X bank after the fact. It’s certainly not a status symbol, or a conspicuous transaction.

I’m pretty sure I’ve never had a conversation about someone’s branded mortgage before.

And I doubt an “influencer” is going to post about theirs on Instagram. Well, I take that back, they might…because someone paid them.

Mortgage Advertising Is Following the Insurance Model

  • Like mortgages, most forms of insurance are similarly boring and unoriginal
  • But that doesn’t stop mega insurers like Geico from advertising to you 24/7
  • Other insurers create catchy new names for run-of-the-mill coverage that isn’t really unique
  • Mortgage lenders are beginning to do that too in a bid to separate themselves from the crowd

This is exactly why insurance companies use celebrity endorsements and smart marketing gimmicks to get you to switch, or conversely, to stick around.

Car insurance isn’t cool or exciting and never will be, nor are mortgages, as much as I want them to be.

Ultimately, we’re all being sold the same thing, it’s just that some companies try to differentiate themselves by slapping clever names onto their products.

For example, Quicken Loan’s Rocket Mortgage is about reinventing the mortgage process, not the mortgage itself.

You’re still probably going to get a 30-year fixed home loan or some other ordinary mortgage that you would get anywhere else.

It’s just the way you get it that might change. Instead of meeting face-to-face with a banker, you might upload documents on your smartphone and authorize the release of documents electronically.

This could make the experience a lot easier and more pleasant, but it doesn’t mean you’re necessarily getting anything different.

Because everyone is basically offering their customers same thing, it comes down to price, customer service, and now perhaps clever marketing.

The one exception is portfolio home loan programs, which are actually unique to the mortgage lender providing them. These are loans kept on the originating bank’s books that contain distinct underwriting guidelines.

We’re starting to see more of them, though most lenders remain fairly cautious with the mortgage crisis still a not-too-distant memory, despite taking place a decade ago.

For example, a lot of the zero down mortgages you see are unique to the companies offering them, the latest one I came across from Ideal Credit Union.

And some of the so-called fintech disruptors like SoFi Mortgage are actually providing unique offerings like a 5/1 ARM with an interest-only option and jumbo loans as high as $3 million with just 10% down.

Be Careful Not to Pay More for the Same Exact Mortgage

  • While it’s important to use a mortgage lender you can trust
  • Such as one that can actually close your home loan competently without major delays
  • It doesn’t really matter what “brand” the mortgage it is after it funds
  • And there’s a good chance it’ll be resold to a different company shortly after closing anyway

Those exceptions aside, many of us have very similar mortgages that are only unique in terms of where they originated from.

As noted, most of today’s mortgages are conforming loans, meaning they meet the guidelines of Fannie and Freddie. Or they’re simply backed by the government via the FHA, VA, or USDA.

And just about all of them are 30-year fixed-rate loans that function exactly the same.

That’s why you have to ask yourself – if the company isn’t offering anything different, why pay more?

Might as well bargain shop and find the best mortgage rate with the lowest closing costs, instead of simply going with a household name because of a funny commercial.

At the end of the day, as long as they get you to the finish line, you’ll probably never think about your mortgage company again. Just make sure they’re reputable first…

Chances are your mortgage will be sold off in a matter of months anyway, so the company you get it from likely won’t even service it.

In fact, your final correspondence might be a notice of your home loan changing hands…

(photo: lamdogjunkie)

Source: thetruthaboutmortgage.com

Apache is functioning normally

[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Groundbreaker.]

A real estate investment management platform, Groundbreaker gives teams access to CRM, portfolio management, fundraising automation, distribution tracking, and real-time reporting. Its software also handles compliance and security using ​​a built-in investor accreditation questionnaire and hosting data in SOC 1- (AKA “SSAE 16”), SOC 2-, and SOC 3-compliant data centers.

Real estate underwriter Jake Marmulstein founded the company in 2017.

What we like: The investor portal is a clear win over the piecemeal spreadsheets, decks, document file storage, and email historically used in preparing investment materials and managing investor relations.

Learn More

Source: geekestateblog.com

Apache is functioning normally

Boston fintech firm Knox Financial plans to expand its lending business and loan products with $50 million in funding it received from a real estate advisory firm. 

New York-headquartered Saluda Grade provided the funding in forward flow capital which Knox will use to expand its lending business into Georgia, Knox representatives said Wednesday. The fintech also will offer additional loan products, including home equity lines of credit (HELOCs), new purchase loans and cash-out refinancings. 

“A homeowner’s best investment is the home they live in — far better than the returns we’ve seen from the stock market in 2022, and a great hedge against record-high inflation,” said David Friedman, co-founder and CEO of Knox Financial. 

Established in 2018, Knox aims to help manage residential rentals with its algorithm-based platform. Its rental pricing and projection model also calculates the rate of return an investment property is expected to produce over time. When a property is enrolled in the platform, Knox automates and oversees the property’s finances and taxes, insurance, leasing, banking and bill pay, according to the company’s website. 

The funding comes shortly after Knox launched its first mortgage product, dubbed the Knox equity access program (KEAP), in April. KEAP loans give homeowners access to capital, based on the equity in the home, to turn it into an investment property with Knox. Homeowners can then use their KEAP loan to fund a downpayment on their next home and to pay for repairs on their investment property.

In return, Knox charges an origination fee and third-party costs to the borrower. Knox also keeps 10% of the rental income generated from properties listed on its platform. 

Prioritizing home equity solutions in a rising rate environment

The 2022 housing market has been underscored by interest rate spikes and refi decline and lenders are working hard to adjust to new borrower trends. HousingWire recently spoke with Barry Coffin, managing director of home equity title/close at ServiceLink, about the ways lenders can capitalize on these trends by revving up their home equity solutions.

Presented by: ServiceLink

Knox’s expansion comes amid a shrinking mortgage origination market. As mortgage rates began increasing this year, lenders, mortgage tech firms and real estate brokerages started laying off employees, often citing rapidly declining market conditions. 

With rising mortgage rates, company representatives said Knox has seen growing interest in second lien products such as home equity loans or HELOCs from borrowers who have tappable equity but don’t want to refinance. 

“As mortgage rates have risen, more inventory will become available at more competitive pricing,” said Matt Marra, chief growth officer at Knox.

Knox Financial raised $10 million in Series A funding in April 2021, led by G20 Ventures, following a $3 million seed round in January 2020. The largest markets for Knox are metropolitan areas of Boston, Atlanta, Houston, Dallas and Austin, Texas. According to Marra, Knox oversees a portfolio of $150 million in combined value.

Source: housingwire.com

Apache is functioning normally

If endless live music, mouthwatering tacos, natural pools and beautiful parks are your idea of a perfect trip, it might just be time to visit Austin, the bohemian capital of the Lone Star State.

Home to events like South by Southwest, Austin City Limits festival and bachelorette parties galore (not to mention barbecue and the University of Texas at Austin), ATX truly has something for everyone.

There’s also a place to stay for every type of traveler, from historic motor lodges converted into chic motels to luxury names we all know. There’s even a lakeside spa resort designed to help guests recharge and relax in the stunning beauty of Central Texas.

Whether you’re a city slicker in town for business, a foodie lookin’ to taste the best Texas has to offer, or you are embarking on a western road trip, here are some of Austin’s best hotels (including some excellent points options), where you can settle in and make a temporary home.

Just don’t forget: Keep it weird.

Related: Why Austin Airport keeps its vendors local to create an airport for foodies

The Line Austin

Austin, Texas, USA

THE LINE HOTEL/FACEBOOK

Best for: Folks looking for a stay that matches Austin’s effortless cool vibes.

Why stay here: The year-round heated pool overlooks the Congress Avenue Bridge, making it the perfect spot to watch the city’s famed bats take flight.

Best way to book: Book direct for the best rates and packages, or through your favorite credit card travel portal.

This Line Austin is one of this hotel reporter’s favorite hotels in the world — and I’ve stayed at some pretty incredible places.

For starters, the location in Downtown Austin, butting up to the Colorado River, is perfect for exploring the eclectic shops and restaurants of South Congress and the lively (though touristy) bars and nightlife on 6th Street. It also sits right along Lady Bird Lake and the Congress Avenue bridge, so you can watch the largest colony of bats in North America put on their natural show as you take a dip in the hotel’s heated pool. (Sounds scary, but it’s one of Austin’s main attractions!)

Inside the hotel, rooms are simple but chic, with a modern, industrial aesthetic made comfortable with Bellino linens, a curated assortment of local snacks and drinks, and floor-to-ceiling windows that fill the space with light radiating from that big Texas sky. Request a lake view room so you can spend a lazy morning watching locals and tourists take advantage of the water.

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At Arlo Grey, “Top Chef” winner Kristen Kish serves up an inspired menu rooted in local fare (think: crispy rice with saffron aioli and cilantro and a Texas-raised Wagyu ribeye with spring onion fritter) alongside cocktails and an international wine list. Wet your whistle at P6, a lovely lounge atop the parking garage serving creative cocktails, elevated bar food and dramatic sunset views over Lady Bird Lake.

Rates at Line Austin start at $225 per night.

Austin Proper Hotel

Austin, Texas, USA

AUSTIN PROPER HOTEL/FACEBOOK

Best for: Design lovers looking for an Instagram-worthy moment.

Why stay here: The Austin Proper Hotel is one of the most visually appealing hotels in town — if not the entire state.

Best way to book: Book through our partner Skylark to earn Marriott points while enjoying elite-like benefits and on-property credits, or redeem your points by booking through Marriott directly.

In a place as trendy as Austin, it’s only right to stay in a hotel with just as much texture and style as the city itself. That’s why Austin Proper (part of Marriott’s Design Hotels), located Downtown on 2nd Street, should be a top contender.

Designed by the influential creative Kelly Wearstler, the hotel exudes a sort of unbridled confidence that will have you posing in plush armchairs and planning outfits to match all that over-the-top wallpaper just to make your followers jealous.

Rooms at this Proper outpost (the others are in California with more East Coast properties coming soon) are grounded in natural hues and elements, such as local stones and woods, and complemented by giant windows with motorized shades, Simmons Providence mattresses and comfortable robes from Parachute. Even better are two amenities every single hotel in the world should include: Apple TV and a fabric steamer.

If you don’t fill up on local art, stop by The Peacock for Mediterranean food, followed by a nightcap at Quill Room, a clubby lounge with live music. During the day, beat the Texas heat with a spicy marg from the rooftop pool restaurant, La Piscina, or borrow a bike and cruise along the river. To really relax, hit up the Verbena Spa for an agave- and tequila-infused treatment ($338 for 90 minutes).

Rates at Austin Proper Hotel start at $350 or 42,000 Marriott Bonvoy points per night.

Miraval Austin

Austin, Texas, USA

SUMMER HULL/THE POINTS GUY

Best for: An ultraluxurious tune-up for the mind, body and soul in the heart of Texas.

Why stay here: When you want to do a little self-care, it’s always best to let the pampering Miraval team take care of everything else for the duration of your stay.

Best way to book: Book through our partner Skylark to enjoy elitelike benefits and on-property credits; or reserve through American Express Fine Hotels + Resorts for value-added benefits like upgrades and late checkout based on availability, plus on-property statement credits.

One of the crowning brands in Hyatt’s robust portfolio, Miraval Resorts offers tranquil retreats that help guests center themselves in the day-to-day hustle we call life, as well as give them a chance to disconnect from technology thanks to its mostly unplugged cellphone policy.

The adults-only Miraval Austin is tucked away in a sprawling complex in the hills. Guests have plenty of wellness-focused activities to choose from, including sound healing sessions, yoga and meditation classes. There are also experiences with horses, farming activities like chicken keeping, and even more physical activities like a ropes course challenge and climbing walls (note that some activities are not included in the mostly all-inclusive pricing structure of Miraval Austin.)

Food is served at The Hilltop Crossings Kitchen, which is designed to be as calming, healthy and nourishing as the rest of any stay. Beyond the standard three meals daily, a rotating menu of food-focused activities, like “Conscious Mixology” and lessons on gut health, are on offer.

Related: A review of Miraval Austin Resort and Spa

Then, of course, there’s the Life in Balance Spa. Experiences here range from a deep tissue massage ($235 for 50 min) to Eastern-inspired experiences like the “Crystal Energy Balancing” session ($195 for 50 min) that uses Reiki and crystals to help cleanse the soul.

Rates at Miraval Austin start around $1,200 or 57,500 or 72,000 World of Hyatt points per night, both based on double occupancy. Note that every award booking includes a $175 resort credit per person.

Fairmont Austin

Austin, Texas, USA

FAIRMONT AUSTIN/FACEBOOK

Best for: Austin visitors who want a stylish stay close to all the action.

Why stay here: A resort-style, year-round rooftop pool is the perfect place to escape the downtown crowds.

Best way to book: Book through our partner Skylark to enjoy elite-like benefits and on-property credits.

For those looking for a more refined stay in Austin, high above the boozy bars of Downtown, the Fairmont is a top-notch choice with an array of superb amenities that make it difficult to decide how to spend your time.

You could reserve a cabana for privacy or snag a pool lounger to soak up the sun beside the Texas-size, resort-style rooftop pool. Or, pamper yourself at the Fairmont Austin Spa for a Himalayan Hot Salt Stones Massage ($195 for 50 minutes) or take a soothing dip in the indoor, infinity-like soaking pool.

Rooms at this Fairmont radiate classic luxury, with plush beds, floor-to-ceiling windows, comfortable lounge chairs and a neutral colorway with pops of blue and green. In the bathroom, who could ask for anything better than Le Labo Rose 31 toiletries?

While Austin boasts some of the best dining in the state, the Fairmont has plenty of its own restaurants to wade through. There’s the Texas-style, open-flame steakhouse Garrison; the Room 725 Champaign and Caviar Bar; seasonal bites and drinks at Fulton; and more.

Rates at Fairmont Austin start around $207 per night.

The Driskill

Austin, Texas, USA

THE DRISKILL/FACEBOOK

Best for: Refined travelers who clean up for the day but want to let loose on buzzy 6th Street at night.

Why stay here: This hotel perfectly marries its storied place in Texas history with its convenient physical location to Austin’s main nightlife corridor.

Best way to book: Book through our partner Skylark to earn World of Hyatt points while enjoying elite-like benefits and on-property credits, or redeem your points by booking through Hyatt directly.

Though Austin’s skyline is full of glitzy new highrises, the city also has a handful of hotels loaded with history — none more than the Driskill, part of Hyatt’s Unbound Collection, which dates back over 100 years to 1886. Here you’ll find a mix of old and new glamour, but all with a Texas twist. Rooms feature wrought-iron beds with cowhide benches at the foot, trunk-style nightstands, wooden writing desks and large drapes with valances depicting the exterior of the hotel.

Right near the action of 6th Street (which, be warned, can get rowdy) and not too far from the state Capitol, this hotel is a great place to steep yourself in Texas traditions — especially when it comes to food. Stop by the leather- and cowhide-clad Driskill Bar, and you might find yourself sippin’ on a local draft beer with a helping of pimento cheese. Next, head to dinner at The Grill, where former President and Lady Bird Johnson had their first date, for a biscuit board (it’s exactly what it sounds like!) and filet mignon.

Rates at The Driskill start at $204 or 21,000 World of Hyatt points per night.

Four Seasons Austin

Austin, Texas, USA

FOUR SEASONS HOTEL AUSTIN/FACEBOOK

Best for: The luxury-obsessed and people who want quick access to the water.

Why stay here: The on-demand margarita cart will have a bartender mixing margs in the comfort of your room.

Best way to book: Book through our partner Skylark to enjoy elite-like benefits and on-property credits.

The Four Seasons is known for giving its guests the most in unbridled luxury — and in Austin, that comes in the shape of an on-demand margarita cart because what’s more luxe than a Clase Azul Añejo marg at just a phone call away?

Actually, there are plenty of things equally as luxe at the Four Seasons Austin, like rooms featuring the Canadian brand’s signature beds, views of Lady Bird Lake, Byredo bath products in a travertine shower and twice-daily housekeeping. For a little more, opt for a Lake View Balcony Room so you can take that aforementioned margarita (say that five times fast!) right out into the fresh air.

If you’d rather enjoy your drink at the bar, stop at Live Oak, where you can sample a chili-infused mezcal cocktail served in a glass boot by an oversized fire pit. At Cicilo, Texas and Latin flavors merge to create a menu featuring fare like enchiladas rojas, sea scallops and pork belly, grilled steaks and smoked Texas quail.

However, there’s more to do than eat and drink. Relax by the pool or grab a hiking trail guide and explore the paths right outside the hotel, which is along the river in downtown Austin. Head to the fitness center for a yoga class, or book a treatment of your choice at the luxurious spa.

Rates at the Four Seasons Austin start at $640 per night.

Thompson Austin

Austin, Texas

THOMPSON AUSTIN/FACEBOOK

Best for: Hyatt loyalists wanting a taste of Austin’s eclectic style.

Why stay here: Celebrated culinary duo Mashama Bailey and Johno Morisano (behind Savannah’s famed restaurant The Grey) lead the food and beverage programming.

Best way to book: Book directly through Hyatt to earn or redeem World of Hyatt points and enjoy any elite benefits.

One of the most exciting new hotels in town (included in TPG’s list of most anticipated hotel openings of 2022), the Thompson Austin is a sleek, moody new World of Hyatt property right at the heart of all the action.

Here, guests can expect stylish rooms designed by Chicago-based Simeone Deary Design Group, with terrazzo floors, green leather headboards, big TVs to catch up on Netflix, rainfall showers with D.S. & Durga bath amenities and fabric steamers to easily work out the wrinkles in your garments without wrestling with an iron and ironing board.

The real star of this property is The Diner Bar, where James Beard Award-winning chef Mashama Bailey and restaurant partner John O. Marisano (the forces behind Savannah’s hit restaurant, The Gray) serve seasonal southern food with a Texas flare. (There’s also a grab-and-go counter from the duo if you’re short on time.)

On the fourth floor, a pool deck offers lounge chairs and cabanas to relax in while grazing on snacks from Wax Myrtles, a Texas-meets-California Mexican restaurant serving bites like fish tacos and shrimp tostadas alongside heat-beating frozen drinks, fun cocktails and local beer on tap.

Rates at Thompson Austin start around $300 or 21,000 World of Hyatt points per night.

Lake Austin Spa Resort

Austin, Texas, USA

LAKE AUSTIN SPA RESORT AND SPA/FACEBOOK

Best for: People who want a wellness experience combined with all the fun of a beautiful lake.

Why stay here: Located near one of the country’s most booming cities, this spa resort is equal parts fun, relaxation and style.

Best way to book: Book through our partner Skylark for elitelike benefits and on-property credits.

The all-inclusive Lake Austin Spa Resort is the place to leave the “weird” of Austin behind, set your intentions on rest and relaxation and enjoy the better parts of life on 19 acres of lakefront property.

Half an hour from downtown Austin, this dreamy resort is accessible by car — but the more fun way to get there is by water taxi. As the water taxi is less crowded than the highway, so is the resort itself, with just 40 sun-filled rooms with porches, relaxing soaking tubs, tall ceilings and even cottages that have their own hot tubs.

The pricing structure here gets guests three hearty meals a day (room service counts), plus healthy smoothies, juices and snacks. Also included is a 24-hour fitness area, lake activities like kayaks and paddleboards, a lakeside beach, outdoor pools, swings and hammocks (to finally read that book you’ve been carrying around), a heated indoor pool and tons of activities ranging from belly dancing classes to hiking in the hills.

Just don’t forget, it is a spa resort — and this one has a whopping 25,000-square-foot facility that offers whirlpools, saunas, steam rooms and more. Treatments range from the ultra-luxe (we’re talking a caviar-infused facial that’s a little north of $1,000) to more standard options (like a deep-tissue massage, starting at $225).

Rates at Austin Spa Resort start at $1,550 per night, based on double occupancy.

Hotel Van Zandt

Austin, Texas, USA

HOTEL VAN ZANDT/FACEBOOK

Best for: Travelers who want a boutique stay on an Austin-centric street full of popping bars, live music and local food trucks.

Why stay here: Located in the Rainey Street District, this hotel is steps from where locals and tourists both come to play.

Best way to book: Book directly through Marriott to earn or redeem Marriott Bonvoy points and enjoy any elite benefits.

Formerly a Kimpton hotel, the now-independent Hotel Van Zandt towers over the Rainey Street District, a strip of houses-turned-bars, parking lots filled with food trucks and a generally younger crowd looking to live it up on one of Austin’s main party drags.

Though Rainey Street might seem a little college-like, the hotel feels all grown up, with rooms featuring a color palette of deep blues and airy beiges, large wooden desks, plush linens and a table with leather chairs. Non-standard rooms include a spa suite with a soaking tub; 900-square-foot Presidential Suites, complete with kitchenettes and vinyl record players; and pool view rooms.

Speaking of the pool, the rooftop pool deck has plush cabanas and a poolside bar serving snacks and drinks, and there’s a massive fireplace where guests gather on crisp evenings. If you’re hungry, stop by Geraldine’s, offering Texas-inspired brunch and dinner, plus daily live music. You might think Texas is all country, but make a reservation for Jazz Brunch, and you’ll leave realizing why Austin is called the “Live Music Capital of the World.”

Rates at the Hotel Van Zandt start at $206 per night.

W Austin

Austin, Texas, USA

W AUSTIN/MARRIOTT.COM

Best for: Marriott loyalists who want a points property in the heart of Austin’s downtown action.

Why stay here: With four distinct areas, including a room filled with hundreds of records and a bar designed for tasting legendary tequilas, the hotel lobby is a destination in itself.

Best way to book: Book through our partner Skylark to earn Marriott points while enjoying elite-like benefits and on-property credits, or redeem your points by booking through Marriott directly.

At W Austin, located downtown, Marriott loyalists can find a funky slice of home that’s fitting for a trip to one of America’s funkiest cities.

Rooms that would otherwise be considered bland or stale are brightened with whimsical pops of color. Also, staying true to the W brand aesthetic, there are fun red couches and armless chairs to lounge in. Other elements include images from local photographer Scott Newton, Bricor Venturi shower heads and 300-thread-count bedding because every visitor to Austin knows a good day requires a good night’s sleep.

Know, though, that Austin isn’t the kind of place you spend too much time in your room. Instead, the home base at this hotel is the immaculate lobby, split into various sections. They include the Tequila Bar, with a vast assortment of spirits and games to play; the Record Room, where guests can pursue over 8,000 different vinyl records; and the Living Room, which offers a club-like atmosphere with a live DJ some nights.

The hotel also has a restaurant, Trace, serving breakfast, brunch, lunch and dinner with a menu of locally sourced foods ranging from pasta dishes to brisket sandwiches. There’s also a fourth-floor pool deck with lounge chairs and cabanas, a spa and a 3,600-square-foot gym.

Rates at W Austin start at $257 or 44,000 Marriott Bonvoy points per night.

Commodore Perry Estate

Austin, Texas, USA

COMMODORE PERRY ESTATE, AUBERGE RESORTS COLLECTION/FACEBOOK

Best for: Jetsetters or city folk looking for an urban escape.

Why stay here: Set in a palatial estate, rooms trade in Austin’s contemporary vibes for European panache fitting of Lone Star royalty.

Best way to book: Book through our partner Skylark to enjoy elite-like benefits and on-property credits.

Auberge Resorts knows luxury well — and that’s exemplified at its Austin property, Commodore Perry Estate, which is set in a European-meets-Texan walled estate sprawling over 10 acres. An iconic landmark given a new life, this retreat offers stunning, Renaissance-inspired suites in the historic mansion and a series of rooms and suites in the Inn, all filled with various accents like four-poster beds, leather couches, ornately-framed artworks and local goods to take home from the room in an area cleverly called “The Estate Sell.”

Guests can relax by the cooling pool waters but don’t miss out on the many events scheduled throughout a stay, including tequila tastings, custom boot experiences, hiking and live music. For the wellness-minded, there are HITT and yoga classes, meditation sessions and personal training instructors. Across the street, a nine-hole public golf course invites folks to practice their swing.

Meals are savored at Lutie’s Garden Restaurant, named after the estate’s original matriarch and designed by the eclectic visionary Ken Fulk. Meals consist of fresh, seasonal produce with an underlying focus on incorporating ingredients and meats from local farmers and ranchers. Guests can also eat poolside from a menu of select pool snacks.

Rates at Commodore Perry Estate start at $520 per night.

Austin Motel

Austin, Texas, USA

AUSTIN MOTEL/FACEBOOK

Best for: A trip with friends or bachelor or bachelorette parties.

Why stay here: With retro design, a buzzy outdoor space perfect for sipping a craft margarita and an ideal location on South Congress, the Austin Motel is the epitome of what makes Austin so fun.

Best way to book: Book direct for the best rates and packages, or through your favorite credit card travel portal.

If you’re a fan of retro vibes, ’70s decor and Wes Anderson films, you’ll be right at home at the Austin Motel, a staple of South Congress and the Austin hotel scene.

At this vintage motel, guests sleep in rooms with quirky wallpaper, brightly colored headboards, Sferra sheets — and peace of mind from knowing that you’re in one of the coolest places in town.

Spicy margaritas are best had beside the kidney-shaped pool, where red-and-white plastic fold-up pool chairs invite guests to relax in the sun (or pose for a very likable photo). Next door, in a space shared with the hotel, Joann’s Fine Foods serves tacos throughout the day (breakfast tacos are life in Austin) alongside enchiladas, sizzling fajitas and lots and lots of queso.

Just don’t forget to stop at the hotel’s bodega, or general store, for some Austin-centric goods to take home, like fun T-shirts, funky swim trunks and other goods worthy of a splurge.

Rates at the Austin Motel start at $149 per night.

Hotel Saint Cecilia

Austin, Texas, USA

HOTEL SAINT CECILIA/FACEBOOK

Best for: People who know that a hotel can be so much more than a place to rest your weary head.

Why stay here: Built around a Victorian-era home, the Hotel Saint Cecilia is playful, chic and one of the trendiest places to stay in one of the country’s trendiest cities.

Best way to book: Book through our partner Skylark to enjoy elite-like benefits and on-property credits.

Found in South Austin, Hotel Saint Cecilia (named after the patron saint of music and poetry) is an intimate abode that oozes charm and Austin’s fresh sense of cool. Rooms include minimalist studios, ornate suites and poolside bungalows with record players, king-size Hästens beds and outdoor seating where you can sit back and relax.

At the 50-foot heated lap pool, children are allowed until 2 p.m. Then, the area turns into an adults-only space where drinks, like a chili-infused reposado tequila, and snacks (try the charcuterie board) are on offer from the Lounge. Guests can also enjoy a full bar and food menu away from the pool in a charming seating and bar area that’s generally not open to the public.

Rates at Hotel Saint Cecilia start at $449 per night.

The Loren at Lady Bird Lake

Austin, Texas, USA

THE LOREN AT LADY BIRD LAKE/FACEBOOK

Best for: Travelers to Austin who want to feel part of the scene without being directly in the middle of it.

Why stay here: This new hotel is perfectly located near Austin’s legendary green spaces but still close enough to walk to its bustling entertainment districts.

Best way to book: Book direct for the best rates and packages, or through your favorite credit card travel portal.

Another hotel new on the scene, the Loren at Lady Bird Lake, has all the character you’d expect from such a vibrant city but is slightly removed, geographically speaking, from the true hustle and bustle of downtown.

The public areas are industrial chic, with concrete walls adorned with beautiful plants everywhere you look, soft wood tones and cozy couches on which to relax. Throughout the hotel, an impressive collection of art themed around science and architecture also commands attention.

In the rooms, floor-to-ceiling windows provide views of the best parts of Austin, vibrant green carpet brings the outdoors inside, and a charming mix of leather furniture, patterned headboards and sleek white Sferra linens effortlessly ties it all together. Bathrooms feature beautiful stone countertops, walk-in showers (some rooms have free-standing tubs) and Malin+Goetz products to wash away the day.

Inside the hotel, the rooftop restaurant Nido features a menu of seasonal offerings throughout the day, from a blue crab omelet for breakfast to pasta dishes, meat and seafood dishes for dinner. Room service is also available, and a coffee shop in the lobby can help jumpstart your day with a caffeine fix.

There’s also a gorgeous 8th-floor pool deck with lounge chairs for catching some sun, a spa and a fitness center. With its waterfront location, you can borrow kayaks and hit the lake for a true taste of what Austin’s all about.

Rates at The Loren at Lady Bird Lake start at $380 per night.

Hotel Zaza

Austin, Texas, USA

HOTEL ZAZA/FACEBOOK

Best for: Those looking for a boutique stay near the neon lights of downtown.

Why stay here: Just steps away from the city’s storied nightlife, this Austin hotel is the perfect home base.

Best way to book: Book direct for the best rates and packages, or through your favorite credit card travel portal.

Hotel ZaZa is a Texas-based boutique chain with four eclectic properties in Dallas, Houston and Austin. In the state’s capital city, ZaZa offers a little something for everyone, from a great 7th-floor pool deck to the ZaSpa, which offers massages, facials and couple’s experiences.

Throughout the hotel, the design offers a little of this and a little of that — in the best way, with bold patterns, vibrant textiles and a philosophy contradicting the age-old saying “less is more.”

In standard guest rooms, expect refined style, plush couches, leather armchairs, a stocked mini-bar and robes. But, for a quirky upgrade, book one of the “Magnificent Seven Suites.” Rooms include the campy Bungalow 6, which feels like a set from “Golden Girls,” and the 880-square-foot “Orient Express,” which serves Agatha Christie novel vibes.

With two great on-site restaurants, it’s easy to eat well at Hotel ZaZa. Meals at Group Therapy start with dishes like crispy calamari and jalapenos or a trio of deviled eggs (hello, caviar) before moving into a sprawling selection of mains like a chicken-fried Wagyu steak po’boy with poblano gravy dip, slow-braised short ribs or pork belly tacos. At Cabana Bar, the poolside bar and eatery, seared ahi tuna tostadas pair perfectly with a frozen pina colada.

Rates at Hotel ZaZa start at $240 per night.

Hotel Magdalena

Austin, Texas, USA

HOTEL MAGDALENA/FACEBOOK

Best for: People who want a boutique taste of Austin’s distinct style, music and culinary offerings.

Why stay here: A converted motor hotel, the Hotel Magdalena is fun, friendly and within walking distance to some of the best shopping in town.

Best way to book: Book direct for the best rates and packages, or through your favorite credit card travel portal.

Bunkhouse really does have a hold on Austin, and Hotel Magdalena is another of the company’s great hotels to consider. At this particular hotel, right off South Congress, guests can enjoy an intimate experience that’s full of fun and culture but without too many other guests considering there are only 89 rooms.

Though the rooms are few, they’re certainly big on character and feature monochromatic bathrooms with bright blue, green or yellow tiles; vintage music photography from Austin’s own Scott Newton; Sferra linens; Sangre de Fruta bath products; and a laid-back but homey aesthetic.

This hotel has many of the staple Bunkhouse amenities, including a killer pool and a fun gift shop with curated products to take home. It’s also pet friendly. There’s a full-service, all-day restaurant, Summer House on Music Lane, plus the Magdalena Bar for drinks and poolside cocktails. But the real star is Equipment Room, a tech-savvy, speak-easy-like basement bar with a focus on good sound, craft cocktails and elevated bar food and a world-class record collection.

Rates at Hotel Magdalena start at $237 per night.

JW Marriott Austin

Austin, Texas, USA

JW MARROTT AUSTIN/FACEBOOK

Best for: Business travelers and Marriott loyalists.

Why stay here: Though Austin is full of quirky boutique hotels, the JW Marriott Austin is a more buttoned-up affair for people in town for business.

Best way to book: Book directly through Marriott to earn or redeem Marriott Bonvoy points and enjoy any elite benefits.

For Marriott Bonvoy loyalists, business travelers or people who want a classy, resort-like property in the heart of downtown, the JW Marriott Austin checks all the boxes. The hotel is the perfect mix of work and play, with well-appointed rooms that feature plush beds, padded armchairs, a desk space to get some work done and then a smart TV to unwind with your favorite shows after.

That’s not all, though. There’s a spa offering curated treatments, massages or facials; an upscale fitness center with tons of workout equipment; and a big pool with chairs and cabanas to lounge on.

If you get hungry, head to one of the hotel’s many bars or restaurants to quell your appetite. There’s the upscale Dean’s Italian Steakhouse, serving Wagyu from Texas and Japan; a popular walk-up burger spot called Burger Bar; a casual Texas-themed restaurant named Corner Restaurant; and a rooftop restaurant.

Rates at JW Marriott Austin start at $237 or 41,000 Marriott Bonvoy points per night.

Source: thepointsguy.com

Apache is functioning normally

[Editor’s note: Originally published here.]

Pilots are a critical touchpoint for property companies and PropTech firms alike. They give real estate businesses an inside track to innovative technologies and provide tech startups with crucial real-world information on what works, what doesn’t, and ultimately, what is saleable. Getting pilots with the right partners can dramatically reshape the growth trajectory of startups and provide traditional real estate businesses with a big competitive edge, but the actual process can be daunting, particularly for property companies with limited tech experience.

We’re changing that with this article. We spoke to experts at real estate companies and a rapidly growing PropTech firm to get the inside story on what property firms should do to optimize for their next pilot partnership, and set the stage for a winning, long-term program.

Homework 

If you’re considering launching a pilot at your property company, it might be tempting to jump straight to looking for partner candidates. Before you do that, though, take some time to get your ducks in a row. Identify where solutions could be most helpful for your organization, and ensure that you have the infrastructure in place to actually execute on what you sign yourself up for.

“If you’re going to do a pilot it is probably worth going through the effort to map out the entire process,” said Aki Karja, head of Fairstead Ventures, the PropTech arm of Fairstead, a New York-based developer specializing in affordable housing.

“It’s not something you can really do ad hoc. You need to set up champions in your organization who are responsible for seeing the pilot through to success, and this can become very complicated.”

Identifying champions within your team will help not only give your pilot program some internal momentum, it’ll also make collaboration a lot easier for your future PropTech partners. A big part of this is understanding how inherently friendly your organizational structure is to nimble partnerships like tech pilots. If you’re at a major real estate company with levels of bureaucracy, you may find it difficult to get buy-in, and represent all of your stakeholders’ concerns. For a pilot to be effective, “you need to get buy-in from a lot of people,” Aki said.

Identifying a strong pilot partner

With your ducks in a row, finding a pilot partner will be much easier. The more you engage with the PropTech community as a real estate firm, the more startups you’ll have reaching out to you, hoping to partner. HLC Equity, a multifamily investor based in Pittsburgh, also runs the tech conference PropTech360. This has led to many PropTech firms contacting HLC to discuss partnership opportunities.

David Molitor, head of operations for HLC, said that his firm has a few high-priority criteria any tech solution needs to meet if it is to be considered. “How does it work in our portfolio, at our size, in our locations? The next big item is whether it integrates with our existing technology systems.” If it checks these boxes, David said that’s when he would consider a demo, and speak with other users of the system to get their feedback.

Once you get that far in the process, it’s critical that you give the pilot the bandwidth it deserves. “You have to bring the startup founder under the hood and with them look very pragmatically at the problem, what the solution is, and how much money it will take. It’s a very long sales cycle,” Aki said. “Once you gain that conviction on both sides, that there is a value add and a path to something reasonable, you can move forward.” If this process reveals fit, you’ve likely identified your next pilot partner.

As a real estate professional, you may wonder if there are negotiating table faux pas to be aware of when making first contact with a startup. Aki said he doesn’t worry too much about concerns like that. “If it’s an interesting project that will generate value for us while being good business for the startup, I’m certainly interested,” he said. “A lot of startups are founded by very smart engineers. They are not marketing people and what they lack is developing the value proposition for their product. Through discussion, we can help them understand that value proposition from our perspective. Even if the discussion doesn’t amount to anything, this is still a learning process for the startups we partner with.” At this stage of the partnership, trust and openness is very important. You’ll need to rely on your tech partner to communicate and perhaps  iterate in a direction that aligns with your goals, and they will need to trust you to be upfront with your feedback and stick with them through potentially challenging implementation roadblocks. Beginning the relationship with a guarded, overly protective perspective is a recipe for failure.

Ideally, the first contact between real estate firm and PropTech team will be more of a low-key informative chat and less of a sales pitch. Wouter Merkestein is CEO of laiout, a PropTech startup that produces automated floorplans for architects and property companies. “We’re PhDs and physicists, not some big sales engine,” he said.

“For us every conversation starts casually: ‘‘We are a bunch of people very excited about actually solving this problem. We were told it is of significance for similar companies to yours and someone mentioned you might be interested. Can we have a chat to see if we could make this tool work for your workflow?’”

This kind of to-the-point early discussion of problems and goals is important for boosting your chances of pilot success.

In terms of vetting specific startup partners, there are few one-size-fits-all red flags to be aware of ahead of time. However, you should keep in mind the risks that your tech partner may be exposed to. Daniel Farber, CEO of HLC Equity, said that you will occasionally see tech companies that are dependent on venture funding fail as a result of being unable to raise a round. “If they close, where does that leave our data, especially with regard to security? When the market was going up people weren’t really thinking about it, but people are thinking more about downside protection now.”

Finally, when you’re going into your first pilot, be aware of timing. One of laiout’s pilot partners is Areim, a large Nordic property owner. Philip Knis, junior asset manager with Areim, explained that “One crucial factor to consider when we are piloting a tech tool is the element of time. We typically establish clear timelines and deadlines to keep the pilot on track and ensure that all stakeholders have sufficient time to provide their feedback. Real cases or applications of the tool also provide a sturdy foundation for evaluation, enabling a better understanding of the tool’s functionality and limitations, and empowering us to provide more constructive feedback.”

Opportunities and pitfalls during the pilot process

With a partner in place, the pilot can begin in earnest. Depending on your business and the type of technology in play, this may be as simple as gaining access to a web-based platform or as complex as working through an on-site hardware system install.

During the pilot, you should be constantly measuring the costs and benefits of the tool being trialed. You also have an opportunity to embrace organizational best practices even before concluding the pilot. If an IoT pilot reveals an opportunity for substantial energy savings outcomes, that is a lesson that you may want to internalize and explore, with or without your pilot partner. Aki suggested focusing in particular on identifying opportunities to boost your measurement and control capabilities, in that order.

The best way to avoid subpar outcomes during the pilot itself is to deliberately stay in very close contact with your tech partner. Consider establishing a cadence of touchpoints at the beginning of the engagement, and then sticking to it over time, using each call as a chance to collect new information and represent the perspectives and feedback of your internal stakeholders.

Winding down a pilot: outcomes

The ideal result for a pilot is the long-term implementation of the tool being trialed. Of course, this is not always the outcome. If you realize that your pilot is not yielding satisfactory returns, it may be time to consider a parting of ways with your partner.

If the time comes that you need to end your pilot, don’t necessarily consider it a failure. A pilot that fails to convert into a long-term partnership could be indicative of misaligned needs more than a specific failing on either party’s side. For Aki, a discontinued partnership is still a chance to educate and guide the startup partner. “Explain what is missing in what they offered. That is hugely valuable for them.” Wouter, of laiout, agrees with Aki’s assessment, saying that he goes into pilots hopeful but not assuming a sale is the most likely outcome. In the event of a pilot failure, “I’d like to know what would make them happy,” he said. Property firms, take note: Even while parting ways you have an opportunity to add value to a once, and perhaps future, partner.

If your first pilot doesn’t meet expectations, don’t be discouraged. Make a frank assessment of where things went off track. Was there a misalignment in terms of desired outcomes, or was it simply a failing on the part of one party or the other? If you find that your pilot program lacks support throughout your organization, and that you have to pull teeth to get stakeholder engagement, consider cutting your losses and holding off on future pilot engagements until you

can marshal more internal support. Otherwise, once you’ve internalized the lessons of your first pilot, it’s on to the next one.

Conclusion

Every PropTech pilot program will be different based on the unique DNA of the real estate company running it. Nonetheless, these best practices are relevant regardless of your particular niche, strategy, or market.

If there is any final take away from the conversations we had with experts on both sides of the pilot, it’s the importance of communication. If you communicate with your tech partner thoroughly from day one, setting clear expectations and then staying in contact on what is working and what is a pain point, you stand the highest chance of turning a short-term pilot into a long-term boost to your business.

Source: geekestateblog.com