Many people claim real estate investors cause homelessness by owning rentals and charging rent, however, they can play a significant role in preventing homelessness by implementing various strategies that promote affordable housing, stability, and supportive services. Real estate investors also provide rentals which are the next step from homelessness as most people in a dire housing situation are not able to buy for various reasons. Here are some key ways real estate investors can contribute to preventing homelessness:
Did landlords cause real estate prices to increase?
There is a growing trend stating that landlords are not needed and the world would be better off without them. This stance is backed up by many statements that tend to be grossly exaggerated or simply false. I am a landlord and of course, I am biased but I have been an investor, agent, author, and influencer in the real estate space for 20 years. I have seen what happens in the real world and know a thing or two about real estate. Many of the opinions about landlords and real estate investors stem from Facebook pages, politicians, or even educators who have zero experience with real estate.
Landlords do not push up prices because they are buying all the houses. In fact, the owner-occupied rate has increased from 62 percent to 66 percent from 2016 to 2023. There are 11 million more owner-occupied units in 2023 compared to 2016 and about the same amount of rental units. The truth is real estate investors have been selling much more than buying.
Rents have been rising because there are fewer rentals available due to landlords selling. That is simple supply and demand. Some people claim landlords buying all the houses is causing rents to go up, but that is the opposite of what happens in the economy when supply increases. The real cause of prices going up is the cost to build, replacement costs, and development costs.
How are landlords needed?
Some hypothesize that if landlords were eliminated (yes some advocate violence) housing would be more affordable and more people could buy. The problem with this theory is that not everyone can or wants to buy. Some people have bad credit or no job history which prevents them from getting a loan. Some want to travel or simply don’t want to buy a house. The theory that all landlords should disappear ignores these people and just assumes they will magically be able to buy a house because prices will be cheaper without landlords.
The theory that housing will be cheaper without landlords comes from the idea that a bunch of housing will be available to buy. However, that housing has occupants and renters living in the homes. There will not be a lot of housing to buy unless you kick those renters out. Sure some renters may be able to buy the house they are currently living in but there still won’t be a massive influx of supply unless there are millions of homeless renters. These theories also assume everyone will get a loan after the laws are all changed eliminating credit and other loan requirements. We saw what happened with loosened lending guidelines in 2008.
Without landlords, there will be massive amounts of homeless because the step from homelessness to housing is a rental not buying. Some people might say more social housing is needed. I can see that argument but landlords are not stopping more social housing from being created, in fact, they help create the social housing that exists.
How do landlords prevent homelessness?
The United States has many programs for those in need including Section 8 housing vouchers, local city and state programs, and affordable housing grants and tax benefits. Most social housing is not built or run by the government, it is run by investors. The government encourages affordable housing projects to be built and redeveloped but they are not the ones doing the work. It is real estate investors who build and create these properties. The US is not alone in this either. Many people point to Austria as having massive social housing programs. They fail to realize that private investors own most of that social housing. Section 8 vouchers are used on properties owned by investors, not the government.
House flippers also buy properties that are unlivable and make them livable again creating more houses which helps reduce homelessness and increases the housing supply as well. I have brought many single-family and multifamily properties up to livable standards after buying them vacant. Do I make money when I do this? Hopefully! If investors do not take on these projects, no one will and there will be less housing and more expensive housing because of supply and demand principles.
Real estate investors also build housing. They build apartments and even single-family homes. Do these turn into rentals? Yes, but that still adds inventory to the market which means more choices for buyers or renters. More inventory means a more stable housing market and fewer opportunities for out-of-control price increases.
Should real estate investors be restricted on what they can buy or build?
There are many people, including people in the real estate industry who feel real estate investors should be restricted on what they can buy or build. The government is trying to restrict investors from buying properties as well. Many of these programs are aimed at huge institutional investors but they are a tiny part of the real estate market. They own less than 1 percent of housing.
As I stated before there is a shortage of rentals on the market. That is why rents have been increasing so much.
The best way to increase rents and increase housing prices is to limit supply which is exactly what more restrictions on investors will do. The most expensive markets in the country have the most restrictions. Many large institutional investors are building houses as well when we desperately need more houses to be built! I can’t believe some of the people saying this is bad and must be stopped.
Conclusion
Without real estate investors there would be less housing, more homelessness, higher prices, and pretty much a disaster. Investors create affordable housing and putting more restrictions on them will discourage them from doing so and create less affordable housing.
HousingWire Editor in Chief Sarah Wheeler sat down with Rick Arvielo, co-founder and CEO of New American Funding (NAF), to talk about AI, why he chose to start NAF Technology India and how to keep NAF innovative. This interview has been edited for length and clarity.
Sarah Wheeler: New American Funding is known for building rather than buying technology. Are you still in that mode?
Rick Arvielo: Yes, and as a matter of fact, we’ve really doubled down on the effort. I’ve always kind of led the charge in our tech build, and as we’ve gotten bigger, it’s just harder for me to devote the time to immerse myself in that. So within that last couple of years, we brought in some great leaders — we’ve been lucky to attract some top talent to New American Funding,
Another fairly material decision we made was about a year and a half ago, we made the decision to rely on some offshore assistance. But having some experience with that, I didn’t really want to find contract offshore providers. So we decided to open our own company in India: NAF Tech India. We have about 150 New American Funding employees over there now to help supplement our somewhat lofty tech build goal.
SW: What has that experience been like?
RA: It’s great! We’ve been using contractors here and there for some time just because it’s often a lower cost, but what we find is with contractors, oftentimes, they’ll give you their “A” players to get you into contract and then they move those people on to their next target. Then you’re left with people that don’t measure up to the initial bar. So, we just realized that the only way that we were going to control that world is to own it ourselves — and it’s quite an undertaking.
You’ve got to incorporate over there, you’ve got to get space and build it out, you’ve got to find the leadership and then start hiring staff. That took about a year, but we’ve been full force now for about a year.
The challenge with the U.S. really has a lot to do with the escalating pay scales [for tech workers] which is very hard to digest in a market like we’re in right now. It will have you second guessing your decision to build versus buy! But also, when you bring people in, it takes some time just to get them familiar with your tech stack. And if they then get attracted away by somebody wanting to pay them a little bit more, it’s just a big expense to digest.
So having that foothold in India, where they have vast expertise, and really have them part of New American Funding so we can indoctrinate them into our culture — something they care about as much as Americans — it’s been a fun exercise.
SW: Is it similar to just having another location?
I would say the only thing that’s a little different is the time zones. But we live in a virtual world anyway right now — most of our tech people don’t work in our corporate office, they’re working from wherever they are.
I think that the quality of engineer over there is really good. We’re now finding that we need to invest in bringing more product people into India so they’re intimately familiar with what we’re doing. So when they’re busy during our nighttime and they get stuck or need help, there’s somebody there that can answer those questions. We’re starting to build out that infrastructure now as well.
SW: What advantages does building this way gives you in this particular market?
RA: Cost efficiencies are probably the biggest advantage. There is a stark difference between what you have to pay a technician here in the United States and what you have to pay a technician in India. Not to take advantage of anyone. But, we’re privately funded — we’re not public, it’s just Patty and me — so we have to be very careful about the dollars we spend, especially in a real estate market that’s under pressure like ours is. So to go as hard and as fast as we want to go with our tech initiatives, we needed to bring on a lower cost resource to supplement and help us stay within our budget.
SW:Are you guys rolling out a lot of different products for them?
RA: Our goal is always to improve the experience for our loan originators and our consumers. Millennials are digital natives and Gen Z doesn’t know anything but a digital lifestyle experience. Our goal is to take that seriously and try to develop technologies for both our loan officers and our consumers, to give them a real-time experiences.
When I looked at the vendors that are out there that have done a lot of this — that comes with as many challenges as benefits, because technologies are changing quickly. And when you’re a vendor and you’ve invested over years to develop techn, and then this technology morphs and changes, a lot of times they find themselves painted into a corner because they have to support people that are already using their stuff. So our goal is to develop the foundation, and have the technical prowess to be able to pivot for our needs, and not the need of some vendors’ 100 customers.
SW: How is New American Funding leveraging AI?
RA: I think artificial intelligence can bring a lot to the table, to the extent it can be taught. That’s the beauty of AI — it’s a large language model and neural networks are so far beyond human beings, they can arrive at answers much more quickly and accurately. We do a lot of transactions, so we can take those transactions and teach a large language model more quickly than maybe a smaller competitor.
AI is so new, but we’re focused on getting the right people on the boat, to have the subject matter expertise so that they can bring these types of solutions and allow people time to become comfortable with the transition. It’s not that we want to replace their job — it has nothing to do with that, it has to do with making them more efficient. But creating this new ecosysem is a bigger effort than you would think. And it’s not just operations or marketing — it’s just about every part of the business where AI can make a difference. And you still need to be very careful massaging it into the organization so people aren’t defensive and they don’t feel threatened by it.
SW: How do you keep making sure you’re on the edge of innovation where it matters?
RA: For me, personally, I just find people better than me. I mean, don’t get me wrong, I have a lot of confidence, but I’m also 61 years old so I’m not the guy anymore to direct tech. I used to be, but today, it’s very important that I find people much better than I am: much more immersed, much more contemporary in the way they think, and bring them in to help make those decisions. And we’ve probably worked harder on that than just about anything else over the last few years.
New American Funding has always been what I call skinny at the top — it’s been me, Patty, Christy Bunce our president, and a handful of other people that we really rely on. And I needed to fill in puzzle pieces with people who really had that level of expertise and just a new perspective that was better, more relevant and younger than mine, to be honest with you.
And we’re blessed that we’ve been able to find those people and attract them to New American Funding, and they’re really making their mark. And we’re such a better business today than we were even a handful years ago, when I was in charge, because I just don’t know what they know. And I think that it was important for me to recognize that myself, and to be able to figure out a way to attract that top talent to New American Funding.
SW: What keeps you up at night?
RA: I think, to be blunt, not f*ing up. We’re 3,800 employees at New American Funding and those people rely on me to not screw it up and to make sure that I make the right fiscal decisions for our company, that we have the right vision, we invest the right money and execute in the right way, so that everyone can continue to do their work and earn their living and take care of their lives. So when I feel pressure, it really has more to do with that than anything else.
We don’t swing for the fences at New American Funding. We think things out. We’re very deliberate in our growth, because I don’t want to do something that jeopardizes the wherewithal in the business and put 3,800 souls at risk, especially in a market like this. We had an unprecedented run through the COVID years, obviously, but now is the time to really make wise decisions so you don’t have an undue impact on the organization.
In less than two years, mortgage rates have more than doubled. At the end of 2021, the average 30-year fixed-rate mortgage had a 3.11% interest rate, according to Freddie Mac. Now, at the beginning of November 2023, the average has climbed to 7.94%.
The picture isn’t necessarily any brighter for other mortgage types either. For an adjustable rate mortgage (ARM), the average 5/1 ARM (meaning the interest rate is fixed for five years and then changes once per year after) has an annual percentage rate (APR) of 8.16%, while a 10/1 ARM comes in at 8.23%, according to Bankrate.
But will the picture look different in 2024? It depends who you ask. Some experts take a stronger view on rates falling in 2024, while others are less certain that will happen. In general, though, most seem to think that mortgage rate drops are more likely to occur toward the second half of 2024, though the change might be relatively small.
Not sure what mortgage interest rate you can qualify for? Find out here now.
Will mortgage rates go down in 2024?
Fannie Mae, for example, projects 30-year fixed-rate mortgages will start 2024 at an average of 7.1% and fall to 6.7% by Q4 2024.
“In 2024, do not anticipate mortgage rates to drop significantly. The current market environment leans towards stability rather than volatility and fear,” says Nathaniel Pitchon-Getzels, a buyer’s agent and listing agent at Compass.
“Before we see rates come down, it’s possible we’ll experience another rate increase. If they do decrease, it’s likely to be a gradual shift, possibly occurring at the end of the second quarter or the beginning of the third quarter,” he adds.
Rhonda Fisher, a real estate broker at Trust Equity Group and eminent domain expert with Consumer Notice, takes a similar view.
While she says she hopes mortgage rates come down in 2024, “the economic forecast suggests otherwise. With a strong employment market and inflation not decreasing as quickly as hoped, it doesn’t appear the Federal Reserve will be able to bring down rates anytime soon. The current rates are slated to continue until next year.”
Depending on economic variables like inflation, however, it’s possible that overall interest rates, including mortgage interest rates, will trend downward next year.
“If inflation and the economy weaken then we should expect to see interest rates lower toward the end of 2024,” says Fisher.
One way to get an idea of when mortgage rates are turning the corner and heading lower is to see when mortgage lenders stop making discount points mandatory. In the current environment, lenders often require homebuyers to pay money upfront in exchange for lower mortgage rates, in order for lenders to then be able to sell those loans to investors, explains Dan Green, CEO of Homebuyer.com.
“If you want to look smart and predict when mortgage rates will fall, keep an eye on discount points. Discount points will be a leading indicator for next year’s rates. When lenders start charging fewer points to buyers, that’s your signal that rates are about to drop,” he says.
He also thinks rates for different common loan types will generally move cohesively.
“Mortgage rates are generally close for the four major loan types – conventional, FHA, USDA, and VA. Over the last five years, VA and USDA loans averaged 0.25 percentage points below conventional loans, which averaged 0.15 percentage points lower than FHA loans. Buyers shouldn’t expect much change there,” says Green.
Learn more about your mortgage rate options here now.
Navigating the real estate market in 2024
If rates aren’t expected to drop significantly in 2024, what does that mean for buyers and current homeowners?
“Exactly what I always say to folks: what are your goals, what are you hoping to accomplish?” says Fisher. “For example, if a homeowner needs to make home improvements or renovations that are costly, a cash-out refinance might prove financially better than a personal loan.”
Some homebuyers also might be better off buying now than waiting to see if mortgage rates in 2024 drop.
“In the upcoming year, buyers need to be strategic and act promptly if they want to purchase a house. Waiting may lead to substantial losses in equity because property values continue to rise,” says Pitchon-Getzels.
Some sellers are also offering concessions, such as rate buy-downs in this environment, adds Fisher.
Still, it’s important to be mindful of what you can truly afford. Even if you think interest rates will drop and you can refinance later, that can be a risky strategy.
“When you buy a home, you have to expect that you’ll make its payments for the next 30 years because, even if mortgage rates drop, there’s no guarantee you’ll be eligible to refinance,” says Green. “What if you take a pay cut? What if you fall ill? What if life throws you a curveball?”
Instead, he says, “the best strategy for a homebuyer is to pick a mortgage and a payment that’s comfortable and stick with it. If the market improves and refinancing is possible, that’s terrific and lucky. But if refinancing is never an option, that’s okay, too, because the payment you’re making is within your zone of comfort.”
If you are in the market for a mortgage, be sure to shop around with different mortgage providers to see where you can get the best rate. Even a small difference in interest rates can add up to thousands of dollars in interest over the life of your loan, depending on the specifics, so it’s important to find the best fit for your circumstances.
Inside: Are you looking for ways to make money quickly and easily? This guide has you covered with tips on how to double your money in 24 hours.
Doubling your money is an aspiration many investors feasibly target, and it’s critical to your future financial stability.
This enticing objective involves transforming a small amount of money and doubling it for tomorrow. You need cash fast, so that is why you are reading this post.
You will quickly learn there are easy ways to double money in 24 hours and others that over time you can be skilled at and easily double your cash.
Given that 58% of borrowers struggle to meet basic monthly expenses and 70% of borrowers are using loan money for rent and other basic expenses. 1
You want to learn how to double your money before you actually need to, so by inevitably secure financial confidence for upcoming expenses.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
How can I double my money quickly?
Doubling your money in less than 24 hours isn’t straightforward, but it is possible if you’re willing to take high risks.
These are popular methods to double your money:
Engagement in day trading. It’s risky but one of the fastest ways to double your investment.
Try your hand at gambling. Remember, the house typically has the upper hand. This is not recommended as you are more likely to lose more money than you prefer.
Consider investing in digital real estate. This is similar to real-life property flipping.
Most importantly, avoid get-rich-quick schemes; they’re mostly scams. So, do your homework before diving in!
20 Easy Ways to Double Money in 24 Hours
As inflation rises and people are struggling with their budgets, the question of how to double money in just 24 hours often comes up.
While it may sound like a lofty goal, there exist strategies that can significantly boost your financial growth in a surprisingly short time.
However, keep in mind these are not risk-free endeavors, and they each require a good understanding and judicious implementation to yield profitable results.
1. Invest in Stocks
If you’re hunting for opportunities to double your money fast – investing in stocks could be your ticket, especially with the current volatility.
Although there’s a risk factor involved, it’s a time-tested strategy for impressive returns. Learn how fast you can make money in stocks.
Honestly, one of the best ways to improve your net worth is learning how to invest in the stock market. Yet, many people shy away from the idea.
By not investing in stocks, you are slowing your pace to financial freedom. So, why not learn how to invest in stocks for beginners?
The choice entirely depends on your risk appetite, investment horizon, and personal preferences. Start by evaluating your risk tolerance. Personally, I can tell you this is one of the ways I double money in 24 hours consistently.
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2. Options Trading
Options trading can double your cash in a mere 24 hours, thanks to its inherent rapid return benefits. However, with the potential for high returns, it also poses significant risks.
Options trading is an advanced strategy for buying stocks with an option contract. Thus, you get the right but not a duty to buy (call options) or sell (put options) a stock at a specific price.
It presents the possibility of doubling, tripling, or quadrupling your money.
This is an avenue to pursue if you want the potential for huge profits, but you must take this investing course to learn the proper way to trade options.
However, you run the high risk of losing the entire investment! So, this is risky for novice investors and you need a brokerage for this type of trading.
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Whether you want to:
Retire in peace without financial anxiety
Pay your bills without taking on a side hustle
Quit your 9-5 and do what you love
Or just make more than your current income….
Making $1,000 every.single.day is NOT a pie-in-the-sky goal.
It’s been done over and over again, and the 30,000 students that Teri has helped to be financially independent and fulfill their financial dreams are my witnesses…
3. Flip Items for Arbitrage
Retail arbitrage, essentially the practice of buying and reselling goods, is a beneficial way of doubling one’s money in a short time. This can be particularly effective by taking advantage of clearance sales in mainstream stores like Walmart and Kohl’s, and then reselling the products on online marketplaces.
Notable items often flipped include apparel, books, electronics, and toys. You can check a full list of popular items to flip.
According to the Flea Market Flippers, you can use a variety of platforms to sell your flipped items.
4. Rent Out Your Property
Renting out unused property or space can be a lucrative form of passive income. This may include a spare room, or underutilized sections like a garage, with various platforms facilitating such financial transactions like Neighbor or VRBO.
Another example is it is financially beneficial to rent out items, like a lawn mower which costs $500 but brings in $15-20 for each rental. Thus, paying for itself in a short amount of time.
Despite the potential risks associated with property investments, including unpredictability in the real estate market and tenant issues, leveraging a good understanding of the local market can make it quite possible to double your investment over time.
5. Become A Side Hustles Expert
Becoming a side hustle expert requires a clear understanding of your goals and the willingness to trade your time for money. You can identify profitable opportunities which can range from ridesharing to teaching English as a second language (ESL) online.
Honestly, this is best to set up BEFORE you are desperate for cash.
Patience is key as nurturing a side hustle often takes time before it becomes an efficient income-generating endeavor.
To help you out, here are specific side hustles based on your stage of life:
6. Rent Out Your Skills
Renting out your skills is a smart quick-fix to double your money within 24 hours. It’s all about capitalizing on what you can do best and offering it to those who need it.
Start by identifying a skill or knowledge you’re proficient in. Are you a wizard in web design? A maven of SEO?
Select the right platform. Websites like Fiverr, Freelancer.com, and TaskRabbit are excellent for freelancers.
Promote your services. Reach out to your networks or use social media to boost your visibility.
This is a great way to earn $300 fast if you know what you are doing.
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7. Deliver with DoorDah or GrubHub
Double your income in a day by delivering with platforms like DoorDash or GrubHub. As a courier, you get paid for each delivery – so the more you do, the higher your earnings.
With a smartphone and transportation, you can start making extra cash immediately. Some top delivery options:
Working with DoorDash
Serving with GrubHub
Remember, it’s all about completing as many deliveries as possible. Every order increases your day’s earnings, potentially doubling them if you put in enough hours.
8. Invest in Cryptocurrencies
Invest in cryptocurrencies like Bitcoin, Ethereum, and Bitcoin Cash holds the potential to double your money in 24 hours due to their volatile nature.
To start:
Keep tabs on crypto trends through monitoring websites or apps.
Buy popular or promising cryptocurrency during their low-cost phase.
The trick to doubling your funds is selling at peak prices.
Remember, trends can change rapidly, so only invest what you can afford to lose. For newbies, it’s beneficial to seek advice from a financial advisor knowledgeable in the crypto market.
9. Take Surveys
Looking to double your money in a day? Consider taking paid surveys. However, you will have to take quite a few surveys to make a significant amount of cash.
To boost your earnings:
Seek high paying surveys – Survey Junkie could bring in up to $3 per survey.
Use free time efficiently – complete quick tasks on Swagbucks.
Refer friends – earn 10% of their earnings on Swagbucks.
Remember, more effort equals higher rewards!
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10. Lend Money on Peer-to-peer platforms
Lending money on Peer-to-Peer (P2P) platforms can be a profitable strategy, offering a unique method for individuals to loan and borrow money without traditional financial institution interference.
Users can sign up as lenders on recognized P2P platforms like LendingClub, Prosper, and Upstart, and yield high-interest returns based on their borrower’s creditworthiness.
However, this process also poses risks such as potential defaults, making it important for the lenders to do their research and diversify their loans across multiple recipients.
11. Do Odd Jobs
Engaging in odd jobs is a practical approach to earning additional income. Whether it’s mowing neighbors’ lawns or offering handyman services, these simple tasks can often pay upward to $30 per hour.
Digital platforms, like TaskRabbit, even allow you to list your talents locally, extending your reach for potential earnings.
All in all, odd jobs provide an accessible door to financial gain without requiring a significant starting capital.
12. Selling High Demand Printables
Selling printables online is a viable way to generate income. It’s important to create a follower base or an email list to successfully promote and sell your products.
With strategic pricing and high-quality content, you could potentially double your initial investment in a short span of time.
Here are the digital products that sell on Etsy that are in high demand.
By creating high-demand printables, you can buy low, sell high, and double your money all within 24 hours!
13. Max Out you 401(k) Match
Maxing out your 401(k) match can double your money in no time. While this may not happen in 24 hours, it can happen the next time you get paid and greatly increase your retirement savings.
When you contribute to your 401(k) plan, your employer might match it by 50% or 100%. You will have to check your Human Resources department to see what your company offers.
Contribute the maximum amount your employer is willing to match. This is free money for you. For instance, if you’re making $100,000 and your employer’s match is up to 3.5% of your salary, put in at least $3,500.
Are you one of the 5 people making this costly mistake? 2
14. Sell Courses and Subscriptions
Selling courses and memberships online is a highly profitable low-risk venture that requires just a small initial investment of your time and money. Once the course is developed, it can continue to generate passive income every month.
Tools such as Podia or Teachable allow you to easily sell and manage your courses, while also offering additional benefits such as digital downloads, subscription plans, and an opportunity to begin selling directly to your followers.
15. Work for Employers
In case you haven’t heard, time is money. And you can trade your time for money at any point.
Working for employers often ensures a steady income which can be supplemented by various benefits.
One of the greatest advantages is the employer match on a 401(k) account, which allows employees to double their contributions effortlessly. This means that if an employee contributes 5 percent of their salary to the retirement account, the employer adds another 5 percent.
Expert Tip: Continually upgrade your skill set to increase your value to employers. More demanding or specialized tasks often command higher pay, propelling you towards your double-money goal quicker.
16. Sell Your Goods
Selling goods online provides a dynamic platform for entrepreneurs, allowing them to reach a wider audience. This involves identifying high-demand products, purchasing from a reliable supplier, and selling them on popular e-commerce platforms like Amazon, eBay, and Etsy.
Get involved in flea market flipping. Hunt for undervalued items at yard sales or flea markets and resell online. Facebook Marketplace could be a goldmine.
Unload used or vintage items. These platforms can help you earn huge profits, especially from expensive items. Don’t let seller fees deter you; big profits are still achievable.
Books are an easy sell. Buy used ones from local or online stores and sell them in different areas or on different platforms. Diversifying the categories you offer can potentially boost your profits.
Pricing is set considering the purchase cost, overheads, and the competitive market.
17. Invest in Collectibles
Investing in collectibles presents a thrilling opportunity to generate significant profit in a short span. The key is identifying profitable niches, such as vintage comic books, rare coins, or baseball cards.
The rarity and condition of an item directly influence the price it can command.
The strategy involves buying low, often from garage sales or online platforms like eBay or Etsy, and selling high. However, one must perform diligent research and be aware of market trends, as failure to do so can lead to risks.
18. Get Rid of Your Most Valuable Items
Selling your own possessions is an effective way to declutter your home while also generating a potential cash flow.
This is one way to accumulate over $1,000 in cash earnings.
This may not be what you want to do, but your possessions are worth money and it may be necessary.
19. Save Money and Increase It
You’ve heard it said: a penny saved is a penny earned. This principle isn’t just about saving but also growing your money as an effective way to double your income.
Here’s how:
First, begin with saving. The more you can put away, the better. Remember, your coffee can strategy may not earn interest, so consider a deposit into a savings account.
Next, let’s talk about compound interest. Suppose you invest $1000 at a 5% interest rate. After a year, your money grows to $1050. The next year, you earn interest on this increased amount. Over time, the effect snowballs, significantly augmenting your investment.
Lastly, protection against inflation is key. Always aim for an interest rate higher than the rate of inflation. This means, in real terms, your money is consistently growing.
Done right, these steps can effectively increase your savings rapidly.
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20. Game or Bet on A Sport
While it’s often overlooked, betting on sports or games could be a fast track to doubling your money in less than a day. This risky Vegas plan may be worth the potentially rewarding pursuit.
Beware – while some have been successful, this method is heavily debated due to the significant risk factors. As such you may be better off becoming a referee for youth sports, which is a popular side hustle for men.
Remember, it’s all fun and games until the cash is lost – don’t stake what you can’t afford to lose.
FAQ
Doubling $1,000 quickly calls for some calculated risks and smart choices.
One way is investing in stocks, potentially high-return yet high-risk assets. Another route could be starting a side hustle, like an online course or freelance work, where initial investment is low but returns could be impressive.
This is a hard ask given many people this month. However, doubling $3000 fast can be achieved through smart investments and income diversification.
Using online platforms and flipping high-demand items may yield quick profits. Additionally, utilizing skills for a freelance portfolio or selling an online course can quickly boost initial capital.
Doubling your $5000 swiftly may seem like a daunting task, but with strategic planning, connection establishment, and careful investments, it’s more achievable than you might think.
Here’s how you can try it:
Start by investing in stocks. Rapid-growth stocks or volatile currency pairs can double your money. Invest wisely based on market analyses.
Try real estate flipping. Buy undervalued properties, renovate, then sell.
Entrepreneurship is another avenue. Turn your skills or ideas into a profitable business.
Peer-to-peer lending platforms yield high return rates with the right borrower.
Playing the lottery or gambling could work, but highly risky.
Remember, to double up money quickly, ensure you are knowledgeable in your chosen method and anticipate potential downsides. Do comprehensive research first.
Is Doubling Money in 24 Hours Possible?
Yes, you, dear reader, can indeed double your money in 24 hours! It won’t be a cakewalk though, requiring specific skills, solid strategies, and of course a pinch – maybe a handful – of luck.
You could tap into high-growth potential fields like day trading, selling high-demand goods online, or capitalizing on your skills as a content creator. Remember, this quick win has its fair share of risks too.
Now, make sure to do proper due diligence and check the integrity of whatever way you choose to make more or dive into the gig economy.
Now, learn how to double 10k quickly.
Source
Federal Reserve Bank of St. Louis. “Fast Cash and Payday Loans.” https://research.stlouisfed.org/publications/page1-econ/2019/04/10/fast-cash-and-payday-loans#:~:text=However%2C%207%20of%2010%20borrowers,difficulty%20meeting%20basic%20monthly%20expenses. Accessed November 7, 2023.
Motley Fool. “1 in 5 Americans Are Making a Terrible 401(k) Mistake.” https://www.fool.com/investing/2018/02/09/1-in-5-americans-are-making-a-terrible-401k-mistak.aspx. Accessed November 7, 2023.
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If sky-high house prices and mortgage rates have made you hit pause on your home buying plans, you may want to think again, or so says personal finance personality Dave Ramsey.
The average 30-year fixed mortgage rate increased to 7.79% last week — up from the prior week’s average of 7.63% — and hitting (another) highest level since 2000. At the same time, house prices continue to rise, primarily due to low inventory.
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“[House] prices aren’t going to go anywhere but up, even with interest rates going up,” Ramsey said on a recent episode of “FOX & Friends.”
“The housing market is just stalled and, man, we’ve got Bloody Sunday with the student loans kicking back in [as of Oct. 1] and Christmas is bearing down on us so it is time to get on a budget and get on a plan.”
With that in mind, Ramsey says you shouldn’t sit back and wait for conditions to improve — reminding potential buyers that you can always refinance your home loan to get a better rate down the road. In fact, if you meet two criteria — “you’re out of debt and you’ve got your emergency fund” — Ramsey suggests going for it now.
Here’s how you can hit Ramsey’s critical financial conditions to buy your dream home — plus some other ways to invest in real estate while dodging housing market headwinds.
Become debt free
Ramsey was joined on “FOX & Friends” by his “The Ramsey Show” co-host George Kamel, who backed Ramsey’s bold housing call and mirrored his advice around becoming debt free.
“If you’re a millennial or you’re Gen Z, you’re feeling hopeless right now, you’re feeling cynical,” says Kamel. “Your parents are saying: ‘You’re throwing away money on rent, get a house, get a house, get a house’ — and you’re broke.
“You’ve got to have some patience because rent and mortgages are not apples to apples,” Kamel said, adding buying a home also comes with taxes and insurance — and in some cases, homeowners’ association fees and private mortgage insurance. All those expenses can add up, which is why the Ramsey camp argues it’s important to ensure you’re debt free with an emergency fund established before making an offer.
There are many different ways to handle debt, but in his well-known seven “baby steps” to financial success, Ramsey advocates for the snowball method. With this strategy, you pay off the smallest debt (or account with the lowest balance) first and make only minimum payments on all of your other outstanding debts. Once you’ve paid off your smallest debt, you move on to the next smallest debt, and so on.
But how much interest you end up paying on your debt is an important factor. If you’ve got a pile of high-interest debt on your credit card or your car loan, you could fall behind on your payments, be subject to financial penalties and your balance can quickly spiral out of control, making it even harder to get debt free. For you, it might make more sense to use the “avalanche method” of debt repayment, where you tackle the loan with the highest interest rate first and go from there.
Regardless, to succeed in this journey, you’ll need to stick to a budget that breaks down your monthly income into necessities, wants, savings and debt repayments.
Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate — without the headache of being a landlord. Here’s how
Build an emergency fund
Ramsey believes every adult American should have at least $1,000 set aside to cover life’s inevitable surprises, like you’re suddenly slapped with a big medical bill or your car breaks down. That back-up fund will stop you from falling into financial distress.
But that’s just meant to get you started. Once you’ve paid down your debts, Ramsey suggests revisiting your emergency fund to set aside three to six months worth of living expenses — including your rent or mortgage, other loan repayments, grocery and energy bills and other regular expenditures — to cover larger surprises like a job layoff or a long hospital stay.
Wherever you are on your savings journey, you might consider stashing some cash in a high-yield savings account (HYSA). With an HYSA, you could earn more interest on your money and benefit from greater compound growth than you would with a traditional savings or checking account.
You may also want to consider using other high-yield savings products like money market deposit accounts (MMDA) or a certificate of deposit (CD) to make the most of the current high interest rates. But remember that banks and credit unions will often charge an early withdrawal penalty for taking money out of a CD before its maturity date.
Other real estate options
Once you’ve hit those two financial milestones — paying down your debt and building an emergency fund — then Ramsey says you should go ahead and buy a house (if that’s what you want to do). But if you’re unconvinced, there are other ways to get a foothold in the real estate market without dealing with the extensive costs of homeownership.
For instance, you may want to consider putting your money in a real estate investment trust (REIT), which are publicly-traded companies that collect rent from tenants and pass that rent to shareholders in the form of regular dividend payments.
There are also online crowdfunding platforms that allow everyday investors to pool their money to purchase property (or a share of property) as a group.
If you don’t want to make investment decisions on your own, some new online platforms can even help you invest in diversified real estate portfolios that will maximize your returns while keeping your fees low.
What to read next
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
While high mortgage rates are keeping everyday working Americans out of the housing market, wealthy buyers with the means to buy multi-million dollar homes in cash are doing just fine.
In fact, luxury home prices, sales and inventory are all outpacing the regular real estate market, a reversal from last year when high-end buyers pulled back.
That’s according to a new report from Redfin, which shows the median price of luxury U.S. homes rose 9% year over year to $1.1 million in the third quarter, while the median price of non-luxury homes climbed only 3.3% to $340,000. Both hit their highest level of any third quarter on record.
The Redfin analysis defines luxury homes as those estimated to be in the top 5% of their respective metro area based on market value, and non-luxury homes were defined as those estimated to be in the 35th to 65th percentile based on market value.
The luxury housing market’s resilience in today’s chilled real estate environment is likely due to wealthy home buyers’ ability to buy with cash and avoid today’s 7% to 8% interest rates.
Almost 43% of luxury homes that sold in the third quarter were purchased in cash, up from nearly 35% a year earlier, according to Redfin. Contrast that with just 28% of all-cash purchases of non-luxury homes, which remains essentially unchanged from the third quarter of 2022.
“Wealthy home buyers have more tools to weather the storm of high mortgage rates,” said Jason Aleem, senior vice president of real estate operations for Redfin. “Many of them can afford to pay in cash, meaning they’re escaping high mortgage rates altogether.”
Aleem said other buyers are choosing to take on a higher rate and refinance down the road — “an expensive option that isn’t feasible for a lot of lower-income consumers.”
“Affluent Americans are still spending big, in large part because of pandemic savings and resilient housing and stock values,” he added.
The trend, however, may not last, according to Redfin chief economist Daryl Fairweather.
“While many luxury buyers have the resources to forge ahead even when mortgage rates are elevated, stubbornly high rates and home prices will likely push some affluent house hunters to the sidelines in the coming months,” he said. “High costs, along with the uptick in the number of high-end homes for sale, could cause luxury price growth to cool.”
For now, though, luxury inventory is holding up well compared to other segments of the housing market. The total supply of luxury homes for sale grew almost 3% from a year earlier compared with a record 20.8% decline in the supply of non luxury homes, Redfin reported. New luxury listings rose 0.3% while new non-luxury listings fell 22%
Luxury home sales are sluggish compared to last year, but they’re not as down compared to other homes. Luxury sales dropped 10.6% year over year compared to a 17% drop in non-luxury sales, according to Redfin.
Where luxury home sales jumped the most
In Tampa, Florida — home to many cash buyers — luxury home sales surged by almost 36% year over year, according to Redfin, the biggest increase in the country. Luxury new listings also rose almost 14% year over year in the third quarter, the biggest increase in every metro other than New York.
Next came Las Vegas (33.4%), Austin, Texas (14.5%), Sacramento, California, (10.1%) and San Francisco (9.6%).
“It’s an opportune time to be a cash buyer, and there are a lot of cash buyers in Florida,” said Eric Auciello, Redfin Tampa sales manager. “We’re still seeing many affluent house hunters move in from the Northeast and West Coast because they want lower taxes, different politics and/or to be closer to family. Tampa also has a ton of new construction, a lot of which is high-end condos.”
A new study released today by the Mortgage Bankers Association argues that despite home buying sentiment being relatively normal, negativity among home sellers is holding back sales.
Of course, it’s not necessarily their fault. Many current homeowners bought at unsustainable prices, and are thus somewhat trapped in their homes.
The study, titled “The Great Recession and Attitudes Toward Homebuying,” noted that nearly 80 percent of American households believe now is a good time to buy, but with sellers not on board, it’s extremely difficult to make deals work.
Researchers pointed to a few issues. For one, home sellers haven’t adjusted their price expectations enough to meet those of buyers.
This could be because sellers believe prices should be based on past market values, such as what they paid or what homes sold for in the recent past.
But as we all know, sales prices a few years ago now look outrageous, and just can’t be reproduced in the current real estate market.
Home Sellers’ Lack of Equity Makes Pricing Difficult
Along with that, sellers are between a rock and a hard place when it comes to adjusting their sales price because of home equity issues.
Put simply, many sellers can’t lower the sales price because they don’t have the equity, or worse yet, are underwater on the mortgage.
As a result, they’d have to bring money to the table at closing, which clearly no homeowner wants to do.
There’s also straight up hope. Many homeowners who have held on for “this long” are probably banking on home price appreciation to get them out of the mess they’re currently in.
Regardless of how bad things are, I would guess that most homeowners expect to come out of the crisis with positive home equity. So selling now wouldn’t make a lot of sense if you think things are as bad as they’ll be and can only get better.
Of course, one could also argue that dumping your current underwater property and buying a more appropriately priced home would be a better move. But with mortgage financing being so tricky at the moment, that’s a difficult endeavor to be sure.
Negativity to Hurt Home Sales for Next Five Quarters
The study points to negative home selling sentiment over the next five quarters, meaning home sales should remain sluggish over that period, despite relatively low home prices and rock-bottom mortgage rates.
This explains why distressed sales, such as bank-owned properties and short sales, continue to dominate home sales.
When it comes down it, nobody really wants to sell right now unless they’re absolutely forced to.
These types of sales are also hurting the appraised values of non-distressed properties, according to the latest HousingPulse survey released today by Campbell/Inside Mortgage Finance.
In short, distressed comparable sales are forcing appraisers to value non-distressed properties below their contract selling prices, which means the sales fall through. Then they sell for less to opportunistic cash buyers, pushing home prices even lower.
So it’s a nasty downward spiral, which is further exacerbating the already fragile market and pushing back a possible recovery.
In summary, if you’re looking to buy a home, you should now have a better idea as to why everything looks overpriced and unattractive.
“It really started from people on the team leaning into the idea of having more diversity and wanting to start a program that was specifically targeted to historically underrepresented undergraduate students within real estate investing,” Wu said. “It was a ground-up program that was developed by people at Blackstone wanting to really move the needle … [Read more…]
In case you were wondering how things were going on the housing front, the news still doesn’t look too hot.
Aside from homes sales data being revised, downward, the foreclosure glut appears to be nastier than ever.
Fitch Ratings, which rates the creditworthiness of banks and other companies, called the “supply of REO staggering” in a news release sent out this week.
They attributed the backlog to pending investigations regarding shoddy foreclosure processes employed by banks and lenders.
We’ve known about the robosigning allegations for a while, and the unfortunate consequence (aside from people losing their homes unjustly) has been further delays to a potential recovery.
It’s a bit of a catch-22. Clearly we can’t have these companies going around and rushing people out their homes without doing their due diligence. But the delays are also creating more weakness in the housing market.
REO Sales Key to Recovery
Fitch believes these REO sales will be key to determine the direction of the housing market over the next couple years.
The FHFA, which oversees Fannie Mae and Freddie Mac, owns about half of the nation’s distressed residential real estate. But they’ve yet to decide on how to unload it all.
Fitch expects the FHFA to introduce a program that will allow for measured sales to investors who will hold and rent out the properties for some specified term.
This should protect the flagging real estate market from more harm, as they wouldn’t be rapidly unloading their inventory and putting even more downward pressure on home prices.
New Foreclosure Waves
Meanwhile, RealtyTrac released a report today warning that new “foreclosure waves” are on the way.
Despite a seasonal slowdown, a trend that they’ve seen over the past four years, November’s numbers point to more doom and gloom ahead, likely early next year.
Foreclosed properties scheduled for auction hit a nine-month high in November thanks to a default surge in August, and many new defaults that started the foreclosure process over the past few months will be sent to auction soon.
In other words, don’t expect a housing recovery in 2012 either…but expect mortgage interest rates to remain low as the carnage continues (there’s your silver lining).
So it looks like there’s still a ton of heat on home prices, what with the growing distressed property inventory and misleading sales figures due to come out next week. Not to mention high unemployment and uncertainty in Europe still festering.
Buying a new house or building a dream home is a milestone for all – and with affordable home loans, the goal is certainly achievable. However, sometimes, the loan approval process may be time-consuming, potentially delaying your plans, particularly at a time when the demand and cost of real estate are on the rise. This is where a pre-approved home loan comes in. It can reduce the wait time for your loan approval and disbursal and also put you in a better position to negotiate with the lender. Before we get to the various benefits of a pre-approved home loan, let’s find out what it is.
What Is a Pre-Approved Home Loan?
A pre-approved home loan, as the name suggests, is a loan that has already been sanctioned in principal before the deal is finalized. The process is the same as getting a regular loan sanctioned, the only difference being you need not submit any documents or paperwork related to the purchased property.
The lender offers financing depending on your creditworthiness and repayment history and issues a pre-sanction letter after a quick verification. One thing to keep in mind is that the pre-approved home loan offer comes with a 3-to-6-month tenor, within which the property deal must be finalized. However, in case you fail to do so in the given timeframe, you can re-apply.
Top 3 Benefits of Pre-Approved Home Loan
Here, take a look at the top benefits of pre-approved home loans:
1. Faster Loan Disbursal
Since the majority of your loan verification is done at an early stage, the home loan disbursal process becomes prompt and easy once the property is finalized. You will only need to get the property documents verified at a later stage. The lender disburses the loan amount as soon as the document verification is completed. This proves beneficial when you are urgently looking for finances and need to book an apartment or house at the earliest.
2. House Hunting Made Easier
The real estate market hosts a pool of housing options, including independent homes, apartments, villas, and more. With a pre-approved home loan and pre-determined budget, the search for a suitable home becomes easier. For example, if you have a pre-approved sanctioned amount of INR 75 lakhs, you can shortlist houses or flats that cost anywhere between INR 70-80 lakhs. However, make sure you have enough savings for a down payment as it is not included in the Home Loan amount.
3. Better Scope for Financial Planning
A pre-approved home loan makes you aware of your home loan eligibility. That way, you can plan your finances accordingly and apply for a suitable loan amount that can be paid off comfortably without the fear of the loan application being rejected.
Now that you are well-versed with the advantages of a pre-approved home loan, check how to apply for one.
How to Get a Pre-Approved Home Loan Offer?
The process to apply for a pre-approved loan is no different from a regular loan application process. You can simply head to the bank’s or the lender’s website and fill out the online loan application form while providing a handful of documents to get pre-approval on your housing loan.
Documents Required for a Pre-Approved Home Loan
The documents needed to get your home loan pre-approved are listed below:
Identity Proof: Lenders require valid identity proof issued by the government, such as your Aadhaar card, PAN card, Voter’s ID, Driver’s license, and Passport among others.
Address Proof: Apart from the above ID proof, lenders may ask for your ration card and utility bills (gas, water, phone, electricity bills) to be furnished as proof of address.
A copy of Form 16
The last 3 months’ pay slips
The last 6 months’ bank account statements
The last 3 years Income Tax Returns filed
A cheque used for paying the non-refundable loan processing fee
Note: This is an indicative list, you might have to submit additional documents as per your lender’s requirement.
Why Opt for a Pre-Approved Home Loan?
If you are still apprehensive about a pre-approved home loan, here are all the reasons why it may prove to be the best option for you.
With a pre-approved home loan, you will have an idea of the maximum amount you are eligible for. You can shop around and pick a property listed online by the lender.
Lenders offer pre-approved home loans only on properties that have already passed valuation and quality checks. Thus, you need not worry about your loan application being rejected due to poor construction.
There is no requirement for stacks of documents. All you need are documents related to the property, which means less time is needed for verification and approval.
Unlike regular loan applications, where you need to submit documents after finalizing the property, with a pre-approved home loan, you can get on with the document verification (other than property-related documents) beforehand and then search for a house or property best suited for the budget.
5 Things to Consider When Applying for a Pre-Approved Home Loan
If you are planning to get your home loan pre-approved, here are a few things you should keep in mind:
1. Effect on CIBIL Score
Before the pre-approved loan sanction, the lender will look into your CIBIL score closely. If you have a history of multiple credit card or loan applications, your CIBIL score may not be as impressive. Hence, the loan application may get rejected, which will further reduce the credit score.
2. Chances of Rejection
If you do not meet the eligibility criteria laid down by the lender and instead account for poor credit history, low CIBIL score, inadequate income, etc. then your loan application may get rejected.
3. Same Rate of Interest
The rate of interest applicable at the time you receive the pre-approved home loan offer may be the same at the time you apply. Thus, even if the home loan interest rate goes down later, you may not be able to avail of the lower interest rates.
4. Limited Property Selection
Pre-approved home loans are offered on limited properties. This may narrow down the hunt for your dream home as you would only be able to choose from the properties that are listed and have passed the quality check.
5. Limited Period Offer
A pre-approved home loan is a limited period offer with an expiry date ranging up to 6 months. Therefore, once you get a sanction on your pre-approved loan, you will have to buy a property and apply for the home loan within the validity period.
Conclusion
Easy, hassle-free loan application, faster disbursal, and better negotiating power are some of the top benefits of a pre-approved home loan. And while these can be of huge advantage, a pre-approval on your home loan does not necessarily mean that the loan will be finalized. There are a dozen other factors, such as credit score, repayment history, income, property documents and so on that determine one’s home loan eligibility. However, to reap the benefits of a pre-approved home loan, it is important to complete the loan application process within the given period.