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Apache is functioning normally

June 8, 2023 by Brett Tams

Referral and Marketing Tools; TPO Products; U/W, Doc Custodian Review; DSCR and 2nd Program News

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Referral and Marketing Tools; TPO Products; U/W, Doc Custodian Review; DSCR and 2nd Program News

By:
Rob Chrisman

Wed, Jun 7 2023, 10:50 AM

Mortgage news temporarily aside, how about the government contemplating a law that would require cars to have AM radio?! AM radio goes farther than FM or cellular streaming services which is why, in out-of-the-way places, like in mountains, you can tune in to an AM station for traffic reports. If you think radio, or the mortgage process, is confusing, try visual entertainment, with too many cable channels and media outlets to fill with 24-7 options and opinions. Too many shows cast across streaming channels. Too many hours on cable TV with financial pundits offering crazy predictions, just to get on TV. I wish that I had an org chart showing who is in charge of what, and how they fit together. I now have three remotes and need to figure out the relationship between Roku, Apple TV+, Prime Video, VUDU, Discovery, YouTubeTV, Sling, Disney+, HBO Max (“Max”), Hulu, Netflix, Paramount+, Peacock, Showtime, Starz… the list goes on and on. And what the heck is BritBox anyway? (Today’s podcast can be found here and this week’s is sponsored by Built Technologies. Join Built Technologies on June 20th at 12 PM CST for an exclusive webinar that will dive into proactive portfolio monitoring as Built’s experts share best practices for achieving greater visibility into your construction portfolio. Today’s includes an interview with Milo’s Josip Rupena on the impact pricing is having on young homeownership.)

Lender and Broker Software and Services

Summer is approaching, and every extra second counts when you’re working on your tan. Utilizing digital mortgage tools can save you a lot of time, reducing turnaround times and increasing operational efficiencies. Whether you are using a hybrid or fully digital eClosing process, it’s crucial to prioritize compliance and efficiency, ensuring the correct eSignature tools and processes is a major part of that. By leveraging advanced eSignature technology, you can simplify your operations, ensure compliance, and save time. Wolters Kluwer’s ClosingCenter and SmartSign Plus allow you to improve operational efficiency by as much as 50 percent, simultaneously improving the customer experience and collecting the key data you need to remain compliant with ever-changing regulations. Learn how advanced eSignature can improve your closing process now!

In today’s ever-changing mortgage landscape, the right lending partner is essential. That’s where Flagstar Bank comes in. As the second largest warehouse lender and a $124 billion asset bank, Flagstar offers the strength, stability, and best-in-class service you’ve been looking for. Flagstar warehouses most loan types, including conventional, NonQM, and construction. Our MSR, servicer advance, and EBO financing solutions are also available. Flagstar’s warehouse platform already gives approximately 400 warehouse clients of all sizes the flexibility to fund quickly and easily. In addition, our specialized mortgage banking team may be able to help streamline operations and provide greater value for cash balances. Don’t let market turbulence hinder your growth. Instead, choose Flagstar as your lending partner and unlock a world of opportunities for your business to thrive. Contact Jeff Neufeld or Patti Robins today to discuss what Flagstar can do for you.

It’s not news to you that lenders nationwide are facing rising interest rates and falling production volumes. Let’s give those decreased production volumes some perspective, shall we? Find out right now with MMI’s monthly Mortgage Industry Benchmarks newsletter, which lets lenders and LOs compare their recent performance to their peers via production-based tiers. After significant pipeline growth in March, lenders in every tier faced a decrease in production volume in April. Lenders in MMI’s Capital Tier ($500M-$5B production/year) averaged a 14.9 percent decrease in production from March to April while LOs in the Diamond Tier ($50-100M production/year) saw a 16.9 percent decrease in their monthly production. Now that you know how some lenders and LOs fared in April, find out how you stack up against your peers. Sign up for MMI’s monthly newsletter for to find out and for more insights like these!

“Unlock the secrets to consumer’s digital financial data with AccountChek® by Informative Research! Are you facing confusion and uncertainty regarding investor programs as they relate to verifications? Our expert consultation is here to guide you towards clarity and success. Navigating the complex landscape of asset, income, and employment verification can be challenging. Do not let it hinder your operations any longer. Let the experienced AccountChek team help you understand investor programs and streamline your verification processes. Book a consultation meeting today and gain access to our industry-leading expertise to provide you with the insights and answers you need to make more loan applications eligible for the many programs that leverage digital verification data. Say goodbye to confusion and hello to efficient verification processes that seamlessly feed into investor programs. Stop wasting time and resources on guesswork. Join the satisfied lenders who have already benefited from Informative Research’s consultation services and AccountChek. Click now to schedule your meeting and discover how we can revolutionize your mortgage operations.”

“Ensure Compliance with GNMA and Safeguard Investor Interests! Noncompliance is not an option: both your auditor and GNMA require that your Document Custodian undergo regular reviews. At Richey May, we are a step ahead and have scheduled reviews for four Document Custodians beginning in September 2023. Our team of experts is well-versed in Document Custodian Procedures and has years of experience helping mortgage companies comply with these requirements. We’ll conduct a comprehensive review of your Document Custodian to ensure compliance and identify any areas needing improvement. Trust us to safeguard the interests of investors and stay compliant. To schedule a comprehensive review, reach out to us.”

We all know volumes will return eventually, so why not get ahead of your competition during this slow season to optimize your operations with CandorPLUS? CandorPLUS builds upon the popular Candor LES underwriting engine and is a Lean Six Sigma Man + Machine solution spanning the entire loan fulfillment process. Why is now the best time? The current economic environment allows for favorable pricing. Manageable volume allows time to adapt and optimize. Right size operations for the last time… No more difficult layoffs. Instantly scale without additional headcount. Faster turn times increases market share and loyalty. Click here to learn more and take advantage of our introductory pricing!

Marketing and Referral Products

You have to apply for a license to become a bona fide Unicorn Hunter, but all you need on your quest for more referrals is a phone and SimpleNexus, an nCino company’s mortgage app. SimpleNexus’ all-in-one mobile technology empowers loan officers to implement a powerful referral strategy and establish quick and constant connections with real estate agents. By supporting ongoing digital collaboration between lenders, real estate agents, and consumers, SimpleNexus transforms the time-consuming process of engaging, nurturing, and converting leads into a single-sign-on experience. Download SimpleNexus’ latest white paper, Leveraging Digital for Smarter Referral Strategies, and make some magic in your pipeline.

Here’s a true story about the power of a SmartCRM™: a loan officer we know made the President’s Club… from a hospital bed. On a mortgage company’s production cruise not long ago, a winner slipped near the pool and landed on the back of his head. He was unconscious for 20 minutes, but when he woke up, he felt fine. Turns out he wasn’t fine. In fact, he almost died and spent a year in the hospital. That same year, from his hospital bed, he originated $12 million. How? Great relationships, a great assistant, and automated marketing. His Realtors and clients had no idea he was even sick. They continued to get great service from his assistant and targeted, personalized marketing from Usherpa. According to the Loan Officer, “Without Usherpa, I’d be out of business.” Find out how to originate more loans from anywhere with this free eGuide.

Free eBook: Winning Agent Business: The Lender’s Guide to a Strong Referral Network. In today’s volatile market, a steady stream of referrals means the difference between maintaining a pipeline and scrounging for leads. And as we move towards market recovery, a robust book of business will serve as an invaluable tool to take full advantage of profitable opportunities. Real estate agents still hold the keys to the referral kingdom. To create this eBook, Maxwell interviewed agents and broker-owners across the country. The result is firsthand advice to help you better network to create a strong funnel of referral leads. Download your free copy to learn the 4 qualities real estate agents value in their lending partners, agent networking dos and don’ts, 5 ways to become a go-to lender for real estate agents, and more. Click here to download “Winning Agent Business: The Lender’s Guide to a Strong Referral Network.”

Broker and Correspondent Programs

“U.S. Bank is dedicated to ongoing affordable housing efforts, and we believe sustainable homeownership is an important means of building wealth. Our commitment starts by empowering through education. As a trusted advisor, we’ve launched an educational breakthrough series aimed at providing lenders with the tools and resources to be successful. Join our upcoming breakthrough series “NextGen Homebuyers: How to Reach the Fastest Growing Homebuyer” or our “Affordable and Community Outreach” session to understand the challenges, opportunities and how to make a positive impact in growing communities. To learn more about participating, please contact your U.S. Bank account executive.”

Happy National Homeownership Month! A month that highlights and celebrates the value that owning a home brings to families, communities, and neighborhoods across the Country. And what better way to celebrate then to announce AFR Wholesale’s next edition of our “Why Wait?” series. We invite you on June 21st at 2 PM EST. to join AFR and special guests from Fannie Mae to learn about HomeReady® and how to leverage this program. Register Today! Over our series, we want to highlight affordable financing solutions that provide homeownership opportunities to more families. This provides you with a platform to learn from and ask Fannie Mae directly how to interpret program guidelines while AFR will provide insight on how to use this program as a solution for your borrowers. This live webinar will not be recorded, so sign up today and don’t miss it! Contact AFR by going to afrwholesale.com, email [email protected] or call 1-800-375-6071.

Are you frustrated as a retail loan officer or mortgage banker with the lack of flexibility to provide custom loan options? Take control: follow the lead of over 24,000 MLOs like you who have joined the wholesale channel in the last year. Whether you open your own independent mortgage brokerage or join a team as a loan officer, you’ll have the ability to provide your clients with the personalized solutions they need. Contact our team at BeAMortgageBroker.com today and you’ll be well on your way to a more fulfilling tomorrow.

Citi Correspondent Lending continues to make supporting underserved communities and diverse markets a priority, which is why we’re very excited to announce the pilot launch of our new HomeRun program. The first in a series of planned Community Lending initiatives, this program is a portfolio Community Lending product that allows up to 97 percent LTV, requires as little as 1 percent borrower down payment contribution and has no mortgage insurance requirement. These features could help make the path to homeownership significantly more affordable for your borrowers. Please reach out to your Citi Account Executive or our National Client Services Team to learn more about this new program and timeline for participant expansion.

Non-Agency, DSCR, and 2nd Changes

A&D Mortgage launched its Second Mortgage Program, designed to help homeowners and real estate investors access affordable financing options. The program offers competitive rates and flexible terms for owner-occupied homes, second homes, and investment properties.

Max Slyusarchuk, Founder and CEO of A&D Mortgage says: “We understand that life happens, and credit scores don’t always reflect a person’s full financial picture. Our new program allows us to meet those customers where they are and provide them with the financing they need.” Borrowers can access up to 85 percent combined loan-to-value (CLTV) ratios on their primary residence or up to 75 percent CLTV on a vacation home or investment property. Borrowers must have a minimum credit score of 660 or higher, with a maximum debt-to-income (DTI) at 50 percent.

Champions Funding’s Accelerator Program has been consolidated to serve as a portfolio-building vehicle for your real estate investors. To further reduce friction in Underwriting, you are connected directly to decision-makers to further speed things up. With streamlined Non-QM products, you can qualify borrowers fast and close even faster, in as little as 5 business days.

Just a few examples of Hometown Equity Mortgage Niches: 100 percent FHA financing, VOE only FHA, 1-year 1099, 1- year P&L use to qualify non owner properties, business bank statements down to 20 percent expense factor, Foreign Nationals no credit, 2-1 buydown use seller concessions, Bridge first time home buyer no income / blanket loans, 5-25 units.

Gain An Edge with Angel Oak DSCR Loans: 6 Months title seasoning for cash out, calculate the Debt Service Coverage Ratio (DSCR) based on interest-only payments, Condotels allowed,

Non-permanent residents, Foreign Nationals, Business Purpose Loans (allows LOs to close DSCR loans in states that they are not licensed in).

Capital Markets

Not much to report yesterday in the absence of economic data and Federal Reserve speakers. There was some chatter that the economy may be able to avoid a recession, though I’m not quite ready to declare that it’s headed for a soft landing just yet. We did see a little “spread tightening” (Treasury yields unchanged, mortgage rates down), which is good news considering MBS spreads continue to remain at historically wide levels. That isn’t helping mortgage rates and LOs as the spread between the 30-year fixed rate mortgage and the 10-year bond yield has surpassed the highs of last year, the 2008 financial crisis, and is back at levels last seen nearly 40 years ago.

Today’s calendar kicked off with mortgage applications decreasing 1.4 percent from one week earlier, according to data from MBA. This week’s results include an adjustment for the Memorial Day holiday. We’ve also received the April trade deficit at $74.6 billion, where expectations were for $75.8 billion versus $64.2 billion in March. Later today brings the latest Bank of Canada policy decision as well as consumer credit. We begin the day with Agency MBS prices roughly unchanged from Tuesday and the 10-year yielding 3.69 after closing yesterday at 3.69 percent. The 2-year is still up around 4.52 percent, so the yield curve inversion is alive and well.

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Posted in: Refinance, Renting Tagged: 1099, 2, 2023, 30-year, 30-year fixed rate, About, Advanced, advice, advisor, affordable, affordable housing, agent, agents, All, app, apple, Applications, ask, asset, Bank, bank account, Banking, bed, best, best practices, bond, book, borrowers, bridge, Broker, brokerage, building, building wealth, Built, business, buydown, buyer, Cable, Cable TV, Capital markets, cars, CEO, Citi, closing, collaboration, collecting, Commentary, companies, company, Competition, Compliance, construction, Consumers, correspondent, Correspondent lending, country, Credit, credit score, credit scores, Crisis, curve, custom, Customer Experience, data, Debt, debt-to-income, decision, Digital, Digital mortgage, discover, disney, don'ts, dos, down payment, DTI, eclosing, Economy, education, efficient, Employment, Employment verification, Entertainment, environment, equity, estate, expectations, expense, experience, experts, Fannie Mae, Features, Federal Reserve, FHA, financial crisis, Financial Wize, FinancialWize, financing, fixed, fixed rate, Fixed rate mortgage, Flagstar, Flagstar Bank, Free, fund, funnel, good, government, great, growth, guests, guide, hold, holiday, home, home buyer, homebuyer, Homebuyers, homeowners, homeownership, homes, hours, Housing, How To, Hulu, impact, improvement, in, Income, industry, Insights, Insurance, interest, interest rates, interview, investment, Investment Properties, investment property, Investor, investors, launch, Law, Layoffs, Learn, lenders, lending, leverage, Life, list, Live, loan, Loan officer, loan officers, Loans, LOS, Make, man, market, Marketing, markets, Maxwell, MBA, MBS, Media, memorial day, mobile, Mobile App, Mobile technology, More, Mortgage, mortgage applications, Mortgage Insurance, Mortgage News, Mortgage Rates, mountains, Move, MSR, neighborhoods, netflix, networking, new, News, non-QM, oak, offers, Operations, or, payments, percent, pilot, podcast, pool, Popular, portfolio, predictions, president, Prices, proactive, products, programs, property, rate, Rates, reach, ready, Real Estate, Real Estate Agents, Real Estate Investors, Realtors, Recession, referrals, Relationships, Research, return, Review, Reviews, right, Roku, sales, save, second, second homes, secrets, seller, september, Series, shares, single, social, Social Media, Software, states, story, Strategies, streaming, summer, sustainable, Technology, The Economy, time, timeline, title, tools, TPO, Treasury, trust, tv, u.s. bank, Underwriting, vacation, vacation home, value, versus, Video, volume, warehouse lender, wealth, Webinar, white, will, Wolters Kluwer, working, young

Apache is functioning normally

June 8, 2023 by Brett Tams

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

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Apache is functioning normally

June 8, 2023 by Brett Tams

Back in the day, if you wanted a loan to pay off your car or credit cards, you’d go to a bank or a credit union, sit down with a loan officer, and wait for them to tell you yes or no as they “crunched the numbers.”

But now peer-to-peer (P2P) lending has come onto the market, offering loans to borrowers directly from individuals — and usually carrying more favorable terms for those without a great credit profile. Borrowers can access up to $50,000 (or more) from lenders, with fixed term repayment scheduled and reasonable interest rates. Investors can also become lenders on P2P platforms, earning interest collected on loans as a passive form of investment income.

Let’s break down some of the best peer-to-peer lending sites for both borrowers and investors, so you can determine which option is best for you.

What’s Ahead:

Overview of the best peer-to-peer lending sites

  • Best for those with high credit scores: Prosper
  • Best for crypto-backed loans: BlockFi
  • Best for young people: Upstart
  • Best for a payday loan alternative: SoLo Funds
  • Best for small businesses: FundingCircle
  • Best for first-time borrowers: Kiva

Prosper: Best for those with high credit scores

Prosper 210

  • APR: 6.99% to 35.99%
  • Term: 2 to 5 years

Prosper is the OG peer-to-peer lender in the market. It was founded in 2005 as the very first peer-to-peer lending marketplace in the U.S. According to their website, they’ve coordinated over $22 billion in loans.

Borrowing with Prosper

If you’re a borrower, you can get personal loans up to $50,000 with a fixed rate and a fixed term from two to five years in length. Your monthly payment is fixed for the duration of the loan. There are no prepayment penalties, either, so if you can pay it off early, you won’t be penalized.

You can get an instant look at what your rate would be and, once approved, the money gets deposited directly into your bank account.

Investing with Prosper

As an investor, you have many options on loans to choose from. There are seven different “risk” categories that you can select from, each with their own estimated return and level of risk. Here’s a look at the risk levels and the estimated potential loss, according to Prosper:

  • AA – 0.00 – 1.99%
  • A – 2.00 – 3.99%
  • B – 4.00 – 5.99%
  • C – 6.00 – 8.99%
  • D – 9.00 – 11.99%
  • E – 12.00 – 14.99%
  • HR (High Risk) – ≥ 15.00%

As you can see, the lower the letter, the greater the risk of default, hence a higher estimated potential loss. With just a $25 minimum investment, you can spread your risk out across all seven categories to provide your portfolio some balance.

The borrowers that you’re lending to are also above U.S. averages regarding their FICO score and average annual income.

Learn more about Prosper or read our full review.

BlockFi: Best for crypto-backed loans

  • APR: 4.5% – 9.75%
  • Term: 12 months

BlockFi is a popular crypto lending platform that offers crypto-backed loans to borrowers and pays out interest to lenders. BlockFi offers instant loans and requires no credit checks for borrowers. All loans are collateralized, meaning borrowers will need to lock in their crypto to borrow against it.

Borrowing with BlockFi

If you’re a borrower, you can get a crypto loan for up to 50% of the value of your crypto, with rates ranging from 4.5% to 9.75% APR, depending on the amount of collateral. Payments are made monthly and are fixed for the duration of the loan.

Interest rates are determined by the amount of collateral deposited and the loan-to-value (LTV) of the overall loan. There is a 2% origination fee on all loans.

  • Loan rate – 9.75% (50% LTV)
  • Loan rate – 7.9% (35% LTV)
  • Loan rate – 4.5% (20% LTV)

Bitcoin (BTC), Ether (ETH), Paxos Gold (PAXG), or Litecoin (LTC) can be used as collateral for the loan, and can be liquidated if the LTV goes above the original LTV of the loan.

Investing with BlockFi

BlockFi offers interest accounts for users who deposit crypto. The funds are used for crypto lending, and interest is paid out in the native crypto deposited. Interest rates vary by cryptocurrency, and range from 0.10% APY up to 7.50% APY. Stablecoins (such as USDC) pay out the highest rates.

Crypto interest accounts are not available to U.S. investors, as BlockFi was sued by the SEC for violating securities laws.

Read our full review.

BlockFi Bankruptcy Notice -On November 10, 2022, BlockFi announced that it had to suspend withdrawals from its platform due to the FTX liquidity crisis. As a result, consumers should not be using the BlockFi platform. As of November 28, 2022, BlockFi officially declared bankruptcy.

Upstart: Best for young people

Upstart 210

  • APR: 5.6% – 35.99%
  • Term: 3 or 5 years

Upstart is an innovative peer-to-peer lending company that was founded by three ex-Google employees. In addition to being a P2P lending platform, they’ve also created intuitive software for banks and financial institutions.

What’s unique about Upstart is the way they determine risk. Where most creditors will look at a lender’s FICO score, Upstart has created a system that uses AI/ML (artificial intelligence/machine learning) to assess the risk of a borrower. This has led to significantly lower loss rates than some of its peer companies. Combine that with an excellent TrustPilot rating, and this company is certainly making waves in the P2P marketplace.

Borrowing with Upstart

Borrowers can get loans from $1,000 up to $50,000 with rates as low as 5.6%. Terms are either three or five years, but there’s no prepayment penalty.

Using their AI/ML technology, Upstart looks at not only your FICO score and years of credit history, but also factors in your education, area of study, and job history before determining your creditworthiness. Their site claims that their borrowers save an estimated 43% compared to other credit card rates.

Investing with Upstart

Investing with Upstart is also pretty intuitive. Unlike other P2P platforms, you can set up a self-directed IRA using the investments from peer-to-peer lending. This is a unique feature that many investors should be attracted to.

Like other platforms, you can set up automated investing by choosing a specific strategy and automatically depositing funds.

Upstart claims to have tripled their growth in the last three years due heavily to their proprietary underwriting model, so it might be worth a shot to consider this option.

Learn more about Upstart or read our Upstart review.

SoLo Funds: Best for a payday loan alternative

  • APR: 0% (tipping optional)
  • Term: Up to 35 days

SoLo Funds is a peer-to-peer platform that functions as a short-term lender, similar to payday loans. With term lengths only lasting for up to 35 days, loans must be paid back in a narrow timeframe. But instead of charging fees, borrowers can leave an optional tip instead.

SoLo Funds is an affordable option for clients who are in a pinch and need an advance on payday, but there are hefty fees if loans are not paid back within 35 days. Users will need to pay a 10% penalty plus a third-party transaction fee if late.

Borrowing with SoLo Funds

Borrowers can take out loans up to $575 for a maximum of 35 days. Loans do not charge fees, but allow borrowers to select an optional tip amount to lenders.

Loan applications only take a few minutes, and while most loans post within a few days, some may be instantly approved, offering same-day funding with money transferred to borrowers within a few hours.

Loans must be paid back in full within 35 days, or there is a 10% penalty plus other transaction fees. There is no option to roll the loan over.

Investing with SoLo Funds

Lending is fairly straightforward, with a simple sign-up process and no pre-qualifications needed. Since the loans are smaller amounts (up to $575), there are no minimums required for lending.

SoLo Funds has a marketplace of loan requests from borrowers, with details specified on each. Each loan request shows the amount needed plus the tip given by the borrower for the loan. Each borrower also has a SoLo Score, on a scale from 40 to 99, with higher scores showing more “worthiness” for paying back a loan. Loans can go into default, and if needed, to collections through a third party. There is a risk of total loss with SoLo Funds investing, though the platform does offer insurance against loss for a fee.

Learn more about SoLo Funds.

FundingCircle: Best for small businesses

Best Peer-To-Peer Lending Sites For Borrowers And Investors REWRITE - FundingCircle

  • APR: 11.29% to 30.12%
  • Term: 6 months to 7 years

FundingCircle is a small business peer-to-peer platform. The company was founded with the goal of helping small business owners reach their dreams by providing them the funds necessary to grow.

So far, they’ve helped 130,000 small businesses across the world through investment funds by 71,000 investors across the globe. FundingCircle is different in that it focuses on more substantial dollar amounts for companies that are ready for massive growth. They also have an excellent TrustPilot rating.

Borrowing with FundingCircle

As a borrower, the minimum loan is $25,000 and can go all the way up to $500,000. Rates come as low as 5.99%, and terms can be anywhere from six months to seven years. There are no prepayment penalties, and you can use the funds however you deem necessary — as long as they are for your business.

You will pay an origination fee, but unlike other small business loans, funding is much quicker (you can be fully funded as quickly as 1 business day).

Investing with FundingCircle

As an investor, you’ll need to shell out a minimum of $25,000. If that didn’t knock you out of the race, then read on.

According to FundingCircle, you’ll “Invest in American small businesses (not start-ups) that have established operating history, cash flow, and a strategic plan for growth.” While the risk is still there, you’re funding established businesses looking for extra growth.

You can manage your investments and pick individual loans or set up an automated strategy, similar to Betterment, where you’ll set your investment criteria and get a portfolio designed for you.

Learn more about FundingCircle.

Kiva: Best for first-time borrowers

Best Peer-To-Peer Lending Sites For Borrowers And Investors REWRITE - Kiva

  • APR: 0%
  • Term: Up to 3 years

If you want to do some good in the world, you’ll find an entirely different experience in P2P with Kiva. Kiva is a San Francisco-based non-profit that helps people across the world fund their businesses at no interest. They were founded in 2005 with a “mission to connect people through lending to alleviate poverty.”

Borrowing with Kiva

If you’d like to borrow money to grow your business, you can get up to $15,000 with no interest. That’s right, no interest. After making an application and getting pre-qualified, you’ll have the option to invite friends and family to lend to you.

During that same time, you can take your loan public by making your loan visible to over 1.6 million people across the world. Like Kickstarter, you’ll tell a story about yourself and your business, and why you need the money. People can then contribute to your cause until your loan is 100% funded. After that, you can use the funds for business purposes and work on repaying your loan with terms up to three years.

Investing with Kiva

As a lender, you can choose to lend money to people in a variety of categories, including loans for single parents, people in conflict zones, or businesses that focus on food or health. Kiva has various filters set up so you can narrow down exactly the type of person and business you want to lend your money to. You can lend as little as $25, and remember, you won’t get anything but satisfaction in return — there’s no interest.

You can pick from a variety of loans and add them to your “basket,” then check out with one simple process. You’ll then receive payments over time, based on the repayment schedule chosen by the borrower and their ability to repay. The money will go right back into your Kiva account so you can use it again or withdraw it. There are risks to lending, of course, but Kiva claims to have a 96% repayment rate for their loans. Just remember, you’re not doing this as an investment, you’re doing it to help out another person.

Learn more about Kiva.

What is peer-to-peer lending?

As the name suggests, peer-to-peer lending involves private individuals making loans to other individuals. The system runs contrary to the traditional model of banks and credit unions providing financial services because it cuts out the middleman.

While peer-to-peer lending had a surge in users over the past decade, in the past few years, some P2P lending companies have shuttered their services, including StreetShares, Peerform, and LendingClub.

How does peer-to-peer lending work?

Peer-to-peer lending shares many similarities with traditional lending:

  1. You fill out an application with your financial and personal information, including the loan’s size, tax returns, and government-issued identification.
  2. The lender will review your application before posting it on the site for investors.
  3. Investors get to play the part of a loan officer, reviewing a list of applications and deciding where they might want to contribute.
  4. The platform will indicate how risky the loan is and the potential return on investment.
  5. Funding takes anywhere from one day up to two weeks.

Is peer-to-peer lending safe?

No one would say that peer-to-peer lending is 100% safe. No form of investing is. Many of the best peer-to-peer lending sites vet borrowers and investors to mitigate risk. The review process helps eliminate untrustworthy candidates, so borrowers can receive their loan and investors can earn interest.

Read more: Should you invest in peer-to-peer loans?

Pros & cons of P2P lending for investors

Pros

  • An attractive alternative to more traditional investments — You can round out your portfolio that might exclusively include stocks, bonds, and mutual funds. Some platforms merge private and public equities, so you can make all your investments in one place.
  • Most lending platforms let you select multiple loans at once — The variation enables you to reduce your risk exposure while potentially earning higher yields than a CD or savings account.
  • Feel good about your contribution — With sites like Kiva, you know that your money is going toward a humanitarian purpose.

Cons

  • Risk of default — When you lend money to individuals, you risk them defaulting. Peer-to-peer lending sites don’t come with FDIC insurance like a CD or savings account.
  • P2P loans lack the liquidity of stocks or bonds — Most loans are for three to five years, so you would have to wait until then to withdraw money.
  • Inequality — Some platforms, such as Funding Circle, only give access to accredited investors, so not everyone has equal access to lending opportunities.

Pros & cons of P2P lending for borrowers

Pros

  • You can circumvent the traditional bureaucracy of brick-and-mortar banks — Instead of waiting in line and negotiating with a loan officer, you have access to a fast, online experience. Because online platforms don’t have to worry about physical overhead, many can give borrowers competitive interest rates.
  • P2P loans typically aren’t as strict as banks or credit unions — The lax approach makes it easier to secure a loan if you have fair or poor credit history.
  • Often no prepayment penalties — You don’t have to worry about prepayment penalties in many cases.

Cons

  • Borrowers face more hurdles if they have a low credit score — Interest rates can go as high as 36% for those with lower scores, while some platforms don’t offer financial services to anyone with a credit score below 630.
  • Possibly high fees — Some sites have origination fees of 6%.
  • Impersonal — If you want the old-fashioned face-to-face borrowing experience, peer-to-peer lending isn’t for you. You don’t have a chance to sit down with your lender and hash out terms.
  • Loan caps around $50,000 — If you need more money, you’ll likely have to go to a bank or credit union.

Summary

Peer-to-peer lending is a great option for borrowers with less-than-stellar credit who want access to capital with reasonable terms and rates. P2P lending is ideal for small businesses and individuals who are looking for a personal loan that does not require mountains of paperwork, and that is funded quickly (usually within a few days).

But not all P2P lending platforms operate the same, and some can charge high origination fees and interest rates. Others require high minimum loan amounts to borrow as well, making them less accessible to some borrowers.

Investors can earn decent returns with P2P lending, but there is also the risk of default and the mess of going through collections agencies occasionally. Finding a solid platform with detailed risk mitigation strategies (such as borrower scores), and insurance against default can help alleviate these concerns, but it may eat into your profits.

While peer-to-peer lending is not seeing the massive growth of a few years ago, it is still a solid option for borrowers and investors alike.

Read more:

Source: moneyunder30.com

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Apache is functioning normally

June 8, 2023 by Brett Tams

If you have a mortgage, you may be unknowingly participating in a mortgage-backed security (MBS). That is, your humble home loan may be part of a pool of mortgages that has been packaged and sold to income-oriented investors on the secondary market.

Being part of an MBS won’t change much (if anything) about how you repay your home loan, but it’s helpful to understand how these investment products work and how they impact the mortgage and housing industries.

Key takeaways

  • A mortgage-backed security is an investment product that consists of thousands of individual mortgages.

  • Investors can purchase MBSs on the secondary market from the banks that issued the loans.

  • When MBS prices fall, residential mortgage rates tend to rise – and vice versa.

What is a mortgage-backed security?

A mortgage-backed security (MBS) is a type of financial asset, somewhat like a bond (or a bond fund). It’s created out of a portfolio, or collection, of residential mortgages.

When a company or government issues a traditional bond, they are essentially borrowing money from investors (the people buying the bond). As with any loan, interest payments are made and then principal is paid back at maturity. However, with a mortgage-backed security, interest payments to investors come from the thousands of mortgages that underlie the bond — specifically, the repayments in interest and principal the mortgage-holders make each month.

Mortgage-backed securities offer key benefits to the players in the mortgage market, including banks, investors and even mortgage borrowers themselves. However, investing in an MBS has pros and cons.

How do mortgage-backed securities work?

While we all grew up with the idea that banks make loans and then hold those loans until they mature, the reality is that there’s a high chance that your lender is selling the loan into what’s known as the secondary mortgage market. Here, aggregators buy and sell mortgages, finding the right kind of mortgages for the security they want to create and sell on to investors. This is the most common reason a borrower’s mortgage loan servicer changes after securing a mortgage loan.

Mortgage-backed securities consist of a group of mortgages that have been organized and securitized to pay out interest like a bond. MBSs are created by companies called aggregators, including government-sponsored entities such as Fannie Mae or Freddie Mac. They buy loans from lenders, including big banks, and structure them into a mortgage-backed security.

Think of a mortgage-backed security like a giant pie with thousands of mortgages thrown into it. The creators of the MBS may cut this pie into potentially millions of slices — each perhaps with a little piece of each mortgage — to give investors the kind of return and risk they demand. Mortgage-backed securities typically pay out to investors on a monthly basis, like the mortgages underlying them.

Types of mortgage-backed securities

Mortgage-backed securities may have many features depending on what the market demands. The creators of MBSs think of their pool of mortgages as streams of cash flow that might run for 10, 15 or 30 years — the typical length of mortgages. But the bond’s underlying loans may be refinanced, and investors are repaid their principal and lose the cash flow over time.

By thinking of the characteristics of the mortgage as a stream of risks and cash flows, the aggregators can create bonds that have certain levels of risks or other characteristics. These securities can be based on both home mortgages (residential mortgage-backed securities) or on loans to businesses on commercial property (commercial mortgage-backed securities).

There are different types of mortgage-backed securities based on their structure and complexity:

  • Pass-through securities: In this type of mortgage-backed security, a trust holds many mortgages and allocates mortgage payments to its various investors depending on what share of the securities they own. This structure is relatively straightforward.

  • Collateralized mortgage obligation (CMO): This type of MBS is a legal structure backed by the mortgages it owns, but it has a twist. From a given pool of mortgages, a CMO can create different classes of securities that have different risks and returns (like different size slices, if we use our pie metaphor again). For example, it can create a “safer” class of bonds that are paid before other classes of bonds. The last and riskiest class is paid out only if all the other classes receive their payments.

  • Stripped mortgage-backed securities (SMBS): This kind of security basically splits the mortgage payment into two parts, the principal repayment and the interest payment. Investors can then buy either the security paying the principal (which pays out less at the start but grows) or the one paying interest (which pays out more but declines over time). These structures allow investors to invest in mortgage-backed securities with certain risks and rewards. For example, an investor could buy a relatively safe slice of a CMO and have a high chance of being repaid, but at the cost of a lower overall return.

How do mortgage-backed securities affect mortgage rates?

The cost of mortgage-backed securities has a direct impact on residential mortgage rates. This is because mortgage companies lose money when they issue loans while the market is down.

When the prices of mortgage-backed securities drop, mortgage providers generally increase interest rates. Conversely, mortgage providers lower interest rates when the price of MBSs goes up.

So, what causes mortgage-backed securities to rise or fall? Everything from stock market gains to higher energy prices and even unemployment numbers have the ability to influence the prices. A variety of factors that affect the course of mortgage-backed securities, and lenders are constantly monitoring it.

Mortgage-backed securities and the housing market

Why do mortgage-backed securities make sense for the players in the mortgage industry? Mortgage-backed securities actually make the industry more efficient, meaning it’s cheaper for each party to access the market and get its benefits:

  • Lenders: By selling their mortgages, lenders save on maintenance costs, and receive money they can then loan out to other borrowers, allowing them to more efficiently use their capital. They often require borrowers to meet conforming loan standards so that they can sell mortgages to aggregators. They can also sell the loans they might not want to keep, while retaining those they prefer.

  • Aggregators: Aggregators package mortgages into MBSs and earn fees for doing so. They may give mortgage-backed securities features that appeal to certain investors. A steady supply of conforming loans allows aggregators to structure MBSs cheaply.

  • Borrowers: Because aggregators demand so many conforming loans, they increase the supply of these loans and push down mortgage rates. So, borrowers may be able to enjoy greater access to capital and lower mortgage rates than they otherwise would.

Of course, easier access to financing is beneficial for the housing construction industry:  Developers can build and sell more houses to consumers who are able to borrow more cheaply.

Investors like mortgage-backed securities, too, because these bonds may offer certain kinds of risk exposure that the investors, mainly big institutional players, want to have. Even the banks themselves may invest in MBSs, diversifying their portfolios.

While the lender may sell the loan, it may also retain the right to service the mortgage, meaning it earns a small fee for collecting the monthly payment and generally managing the account. So, you may continue to pay your lender each month for your mortgage, but the real owner of your mortgage may be the investors who hold the mortgage-backed security containing your loan.

Pros and cons of investing in MBSs

No investment is without risk. MBS have their advantages and disadvantages.

For instance, mortgage-backed securities typically pay out to investors on a monthly basis, like the mortgages behind the securities. But, unlike a typical bond where you receive interest payments over the bond’s life and then receive your principal when it matures, an MBS may often pay both principal and interest over the life of the security, so there won’t be a lump-sum payment at the end of the MBS’ life.

Here are some of the other advantages and disadvantages of investing in MBSs.

Pros

  • Pay a fixed interest rate

  • Typically have higher yields than U.S. Treasuries

  • Less correlated to stocks than other higher-yielding fixed income securities, such as corporate bonds

Cons

  • If a borrower defaults on their mortgage, the investor will ultimately lose money

  • The borrower may refinance or pay down their loan faster than expected, which can have a negative impact on returns

  • Higher interest rate risk because the cost of MBSs can drop as soon as interest rates increase

History of mortgage-backed securities

The first modern-day mortgage-backed security was issued in 1970 by the Government National Mortgage Association, better known as Ginnie Mae. These mortgage-backed securities were actually backed by the U.S. government and were enticing because of their guaranteed income stream.

Ginnie Mae began providing mortgage-backed securities in an effort to bring in extra funds, which were then used to purchase more home loans and expand affordable housing. Shortly after, government-sponsored enterprises Fannie Mae and Freddie Mac also began offering their version of MBSs.

The first private MBS was not issued until 1977, when Lew Ranieri of the now-defunct investment group Salomon Brothers developed the first residential MBS that was backed by mortgage providers, rather than a federal agency. Ranieri’s MBSs were offered in 5- and 10-year bonds, which was attractive to investors who could see returns more quickly.

Over the years, mortgage-backed securities have evolved and grown significantly. As of May 2023, financial institutions have issued $493.9 billion in mortgage-backed securities.

Mortgage-backed securities today

While mortgage-backed securities were notoriously at the center of the global financial crisis in 2008 and 2009, they continue to be an important part of the economy today because they serve real needs and provide tangible benefits to players across the mortgage and housing industries.

Not only does securitization of mortgages provide increased liquidity for investors, lenders and borrowers, it also offers a way to support the housing market, which is one of the largest engines of economic growth in the U.S. A strong housing market often bolsters a strong economy and helps employ many workers.

Mortgage Market

Bankrate insights

As of 2021, 65% of total home mortgage debt was securitized into mortgage-backed securities.

Bottom line on mortgage backed securities

While you might not deal with a mortgage-backed security in your daily life, your mortgage may be part of one. And if so, it’s a cog in the machinery that keeps the financial system running and helps borrowers access capital more cheaply. It can be useful to understand that the MBS market ultimately has a powerful influence over qualifications for mortgages, resulting in who gets a loan — and for how much.

Source: finance.yahoo.com

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Apache is functioning normally

June 7, 2023 by Brett Tams

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

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Apache is functioning normally

June 7, 2023 by Brett Tams

[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

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Apache is functioning normally

June 7, 2023 by Brett Tams

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

Posted in: Mortgage, Mortgage Rates Tagged: 2021, 2022, About, atlanta, Austin, Banking, best, Bill Pay, borrowers, boston, brokerages, business, CEO, company, Credit, dallas, Downpayment, environment, equity, estate, finances, Financial Wize, FinancialWize, Fintech, fund, Georgia, great, growth, HELOCs, home, home equity, Home equity loans, Homeowner, homeowners, Housing, Housing market, houston, in, Income, Inflation, Insurance, interest, interest rate, inventory, investment, investment property, investments, Knox Financial, leasing, lenders, lending, Live, loan, Loans, manage, market, markets, model, More, Mortgage, Mortgage Rates, new, new york, offer, or, Origination, origination fee, party, plans, portfolio, products, property, Proptech, Purchase, Purchase loans, rate, rate of return, Rates, Real Estate, Refinance, rental, Rentals, Repairs, Residential, return, returns, Rising mortgage rates, second, Series, Series A funding, stock, stock market, taxes, Tech, texas, The Stock Market, time, title, trends, value, will, working

Apache is functioning normally

June 7, 2023 by Brett Tams

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

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Apache is functioning normally

June 7, 2023 by Brett Tams

This year, it happened — something many have been predicting for years: Taxes went up. And most likely, the hikes will just keep coming. There’s no other way to pay off the country’s debt and fund the ballooning entitlements due the baby boomers as they retire. The increases may not affect everyone, and those who earn more will pay more, but someone’s gotta pay.

One way to hedge against higher tax rates is to contribute to a Roth retirement account. Your contributions aren’t tax-deductible, but the withdrawals are tax-free once you turn 59 ½ and you’ve had a Roth account for at least five years. Who wouldn’t want tax-free money if tax rates are just going higher?

Well, as attractive as the Roth can be, it’s not always the best choice for everyone. You see, a contribution to a Roth means you are forgoing a contribution to a traditional retirement account, which might give you a tax-deduction today in exchange for paying taxes in retirement. So the choice is: Should you pay taxes today or in retirement?

Here’s the rule of thumb: If you’re in a higher tax bracket today than you will be in retirement, stick with the traditional account. However, if you expect to be paying a higher tax rate in your golden years, go with the Roth. The same math applies when considering a “conversion,” which is turning a traditional account into a Roth. The amount in the traditional IRA that comes from deductible contributions or investment growth is taxed as ordinary income in the year of the conversion, but then it grows tax-free.

That’s all handy-dandy, but there’s one problem: While it’s a safe bet taxes will go up, it’s difficult to predict what that will mean for any given individual. Still, here are some considerations:

  • For many reasons, such as a drop in income, most people pay fewer taxes in retirement than they did while they were working. Plus, it’s likely that senior citizens, as a group, will bear the smallest brunt of future tax hikes.
  • Make sure to factor in the difference in tax rates between the state where you currently live and the state to which you’ll retire, if you plan to move.
  • A traditional vs. Roth calculation assumes that any tax savings from contributing to the traditional account is invested and saved for retirement. If you’ll instead spend those tax savings, then the Roth looks much more attractive.

As an example, consider the situation of a Motley Fool reader, who posted his Roth conundrum on one of our discussion boards. He’s in the 33 percent federal tax bracket, and pays a 9 percent state income tax to boot. It’s possible he’ll move to Texas after he retires, which is among the seven states that don’t have an income tax. (The others include Florida and Nevada, also popular retirement destinations.) So if he were to contribute $10,000 to a Roth rather than a traditional account, he’d be giving up on a $4,200 tax deduction, factoring in both federal and state taxes. He’s better off sticking with the traditional account, especially factoring in the possible move to Texas.

Sneaking in through the backdoor

The fellow can contribute to a Roth 401(k) because his employer offers the option. Otherwise, he’d be out of luck since his income makes him ineligible for a Roth IRA. Once you earn a modified adjusted gross income (AGI) of $112,000 if you’re single or $178,000 if you’re married, your ability to contribute gradually phases out.

However, all is not lost for those who don’t have a Roth account at work, are ineligible for a Roth IRA, or have already maxed out their 401(k)s. It gets complicated, so stick with us.

First off, not all contributions to a traditional IRA are deductible. If you have a plan at work and are single with an AGI of $59,000 or are married and have an AGI of $95,000, your ability to deduct the contributions gets phased out. If you’re above those income limits, you can make a nondeductible contribution to a traditional IRA. As the name implies, you can’t deduct the contribution, but the investments still grow tax-deferred.

Now, here’s where the Roth comes in. If you don’t have any pretax money in traditional IRAs, including SEPs, SIMPLEs, and rollovers from prior employers’ plans, you can immediately convert that traditional IRA to Roth. (And by “you,” we mean that you can ignore what your spouse has.) Here’s the real bonus: Because you couldn’t deduct the contribution and because the account didn’t have an opportunity to grow, you won’t owe any taxes on the conversion. This little trick has become known as the “backdoor Roth.”

It gets complicated if you have pretax money in a traditional IRA, since the amount is prorated across all the accounts for tax purposes. For example, if you have $50,000 in pretax IRAs, and then you make a nondeductible contribution of $5,000 to a traditional IRA and immediately convert that account to a Roth, only 10 percent ($50,000 divided by $5,000) will be tax-free. However, there’s one possible way around this. You can transfer those pretax assets to your existing 401(k), if your employer allows it. The downside: 401(k)s have limited and often pricier investments, and most don’t allow individual stocks and bonds.

Finally, based solely on the math, younger people in the 15 percent or lower tax bracket who expect to build up a large portfolio over their careers should choose the Roth.

Other benefits of the Roth

That’s the math. But there are other perks to the Roth that might tip the scales in its favor if the math is fuzzy.

  • Contributions to a Roth IRA – not earnings – can be withdrawn tax- and penalty-free before age 59 1/2. This has its downsides, since it makes it more tempting to spend money that should be left for retirement. But there are some proponents of using the Roth IRA as a college savings account, and even an emergency fund.
  • Unlike the traditional IRA and 401(k), the Roth IRA does not have required minimum distributions (RMDs) at age 70 ½. The Roth 401(k) does, but you can transfer the money to a Roth IRA after you retire to get around RMDs.
  • Anyone who inherits a traditional IRA will have to pay ordinary income taxes on the distributions. However, the Roth account will still maintain its tax-free status. And nothing says “I love you” like giving someone tax-free retirement savings. (However, all retirement accounts are included in the calculation of whether estate taxes are due.)

The bottom line

We know the direction of tax rates (i.e., up), but we don’t know the magnitude and the targets. They’re decided by Congress, and who knows what those folks will do? Of course, they didn’t put themselves in office, which means the decision ultimately lies with the voters — and they can be even crazier. Some people argue that we can’t even assume that distributions from a Roth will remain tax-free. But just as diversification is important in your portfolio, tax diversification can also make sense. For many retiree wannabes, one way to hedge against future significant tax increases is to have at least some assets in a Roth account.

Source: getrichslowly.org

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Apache is functioning normally

June 7, 2023 by Brett Tams

[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

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