No set path exists for any professional to enter the reverse mortgage industry. People often find themselves in the business from various other professions. It’s the case for Finance of America Companies (FOA) Chief Marketing Officer Chris Moschner.
Arriving at FOA following its acquisition of American Advisors Group (AAG) last year, Moschner already had a successful marketing career before joining the industry’s leading lender. He discusses his professional journey and what he finds “intoxicating” about the reverse mortgage business as a marketer.
Marketing beginnings
Most of Moschner’s career has been spent at what he calls “traditional” or “classic” consumer products marketing, he said in an interview with RMD. He spent most of his career at the multinational consumer goods conglomerate Procter & Gamble (P&G) in Cincinnati and continues to operate from there today.
Working for P&G gave Moschner access to marketing assignments for a lot of international and domestic brands, which offered a baseline of classic marketing principles he would take further into his career.
Over the past seven years, Moschner has worked primarily in financial services marketing with a focus on the life and annuity space, he said.
“I worked for two companies, one called Bright House Financial, where I was on the ground floor launching that brand as it spun off from MetLife,” he said. “And then I found my way over to another life insurer called Protected Life, where I was the chief marketing officer. There was nothing frankly wrong with those roles, and I was enjoying them very much, but then my phone rang about [two years] ago.”
Leaping into reverse mortgages
That phone call was from AAG, and Moschner spoke with the lender’s founder and CEO to discuss the possibility of jumping into the industry’s leading reverse mortgage lender. After a good conversation, Moschner found himself really taken with the reverse mortgage product category, he said.
“I find this category intoxicating from a marketer’s perspective,” he explained. “It’s the combination of the opportunity ahead of us that we all know, where the [demographic has trillions] in equity. You’ve got this retirement crisis, you’ve got a solution hiding in plain sight, yet massive customer inertia.”
Beyond those dynamics, Moschner sees the issues that the industry has had connecting with older borrowers as, fundamentally, a marketing problem he thinks he could affect positively for his company and the wider sector.
“It comes down to the idea that if there’s a solution that people aren’t understanding, then it’s just a matter of this idea that we either haven’t given them the right insight or tapped into the right need, used the right language or made them the right offer,” he said. “I believe we can use some of those things that I’ve learned across my career to make a positive impact not just for Finance of America, but for the category in general.”
Move to FOA
Moschner served in his role at AAG for roughly five to six months before one of the biggest moves of industry consolidation came into view: FOA’s acquisition of AAG.
While FOA and its reverse-specific subsidiary Finance of America Reverse (FAR) had been a major, leading player in the space for some time, the AAG acquisition would see them become the dominant player virtually overnight.
“I have now, since April, been leading the combined marketing entity of the two,” he said. “I’ve overseen how we’ve really brought these teams together, and [most of the past year] has really been about integration. Putting two teams together, putting our processes together, putting our technology stacks together, all of that is really how I got here.”
New opportunities, moving the needle on reverse mortgages
While being acquired by another company relatively soon into his AAG tenure was not on his “career roadmap,” Moschner sees a real opportunity to expand the business now that much of the initial dust from the acquisition has settled, he said.
“Now that we’re here, I think this is such an incredible gift,” he said. “[We’ve] brought together the power of the AAG marketing model and the performance marketing model that we have with FAR’s product portfolio, which [we plan on] expanding. I think that is going to be a ‘secret sauce,’ and now that we’re here I’m even more excited about what’s ahead.”
While AAG offered FAR’s proprietary reverse mortgages through a correspondent partnership in the past, being a single entity allows the companies to leverage the marketing muscle that AAG has built over its existence with the product catalog maintained by FAR. On top of that, with the macroeconomic environment slowly improving, Moschner’s optimism has grown, he said.
“And again, as a marketer, I believe we can impact change, and I believe we are one of the big levers that are going to really unlock this category going forward.”
There’s an upside to owning and managing properties.
Okay, so you’re thinking about managing your rental property, but you’re not sure if you should handle everything yourself or hire someone to do it for you. Let’s break it down.
According to a survey by the U.S. Department of Housing and Urban Development, almost half of the 49.5 million rentals in the U.S. are properties with one-to-four units. Most of these are owned by individuals, and only about 22 percent are professionally managed.
So, if you’re a landlord with a smaller property, chances are you’re the one taking care of things. But what does that really mean for you and your tenants? Let’s dive into the nitty-gritty of managing your property effectively.
What’s property management?
Think of property management as the secret sauce for your success as a landlord. It’s about making sure you’re getting the most out of your rental and handling your investment like a pro. Now, it might sound like a never-ending job, but there are four big things you need to focus on:
Finding and screening tenants
This is like picking the right teammates for your rental squad. You want reliable tenants who’ll treat your place well. So, there’s background checks, credit checks, employment verification – the whole shebang.
Keeping tenants happy
Once you’ve got good tenants, you want to keep them, preferably beyond even a yearly lease. Happy tenants mean steady income for you and years without having to worry about turning over the apartment. So, you need to build a good relationship, fix stuff when it breaks and maybe throw in a little incentive to keep them around.
Drawing up a lease agreement
This is like the rulebook for your rental game. The lease agreement is legally binding, so you want it to be solid. Some landlords get lawyers involved, others rely on experienced property managers to get it right.
Handling the money stuff
This is where you get into the financial side of owning and renting property. Budgeting, forecasting and understanding taxes are all part of the deal.
Why do people try property management as a side hustle?
Renting out properties has always been a favorite way to make some extra cash without doing much. As long as your rent is competitive and you’re not spending more than you’re making, it’s a sweet deal. Plus, in a good market, you can even build up some equity.
But here’s the catch – managing a rental property is not exactly a walk in the park. It involves marketing, managing, dealing with repairs and crunching numbers. That’s why a lot of new landlords end up hiring a property management firm.
Is now a good time to be a landlord?
Well, that depends on where you’re at and what you’re striving to get out of the deal. The rental vacancy rates in the U.S. were at 6.6 percent in the third quarter of 2023, a bit higher than the previous year but still below the long-term average. The rent and interest rates vary across the country, so you’ll need to do some homework on your local market.
The upsides of property management
Working with a property management firm can take a load off your shoulders. They handle things like rent collection, maintenance and dealing with tricky tenants. It’s like having a rental superhero on your team.
Potential downsides of property management
Of course, there’s no such thing as a free lunch. Property management firms charge a fee, usually between 8 and 12 percent of your monthly rent. So, if your place rents for $1,500 a month, you’re looking at shelling out around $150 to the management company. Also, some landlords like to be in the driver’s seat and make all the decisions, so giving up control can be a downside.
What about the tenant’s perspective?
If you’re looking to rent, you might be wondering if it matters whether your landlord is a person or a property manager. Well, it depends on what you’re into. Some folks like the perks that come with big managed communities, while others prefer the charm and personal attention you get from a home owned by an individual.
Should you hire a pro or DIY?
Ultimately, it’s your call. Take a look at your cash flow, monthly income and expenses. Do you want a laid-back income stream, or are you itching to get your hands dirty in property management? If you’re eyeing a real estate empire, a property management firm might be in your future.
In the end, whether you’re the landlord or the tenant, it’s all about finding the sweet spot that works for you.
At Rent., our goal is to be the most efficient digital resource to help people find and live in a place they love. We strive to help renters make informed decisions by providing them with valuable information and advice, including money-saving tips, local guides, HD photos and certified ratings and reviews from actual residents.
Inside: Doordash is a popular side hustle that offers drivers the opportunity to make money by delivering food orders. This guide will teach you how to maximize your earnings by knowing the best times to Doordash.
If you’re seeking a way to increase your earnings using DoorDash, you’re in the right place, and I’m here to guide you every step of the way.
After joining DoorDash, my friend Susan transformed her spare time into a thriving side hustle, earning an extra $500 a week by delivering delectable meals. Her dedication not only boosted her income but also made her a favorite among customers, ensuring a steady stream of orders and generous tips.
But I’ll have you know that it’s not just about delivering food, it’s about understanding when and where to do it. Saturdays are a hotspot for orders, especially during dinner and late-night rushes. The good news doesn’t stop there! Thursday to Sunday are consistently reliable days for dashing.
Let’s talk about this exciting opportunity! Your DoorDash adventure awaits – let’s make it a prosperous one!
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Why is it Important to Choose the Best Times to DoorDash
Ever wondered why choosing the perfect time to dash can turbocharge your earnings as a Dasher? Well, let me spill the beans!
Picking those sweet spots when the demand is buzzing can lead to more generous tips and bonuses heading your way. It’s not just about the clock; it’s about tuning in to the rhythm of customer cravings and using that knowledge to your advantage.
This is such a hot topic DoorDash even released a guide to help you. 1
When is the Best Time to Doordash?
Alright, so, when’s the absolute best time to kick off your DoorDash adventure? From around 11 AM to 2 PM and 5 PM to 9 PM, the orders just keep pouring in. 1
And the icing on the cake? Customers tend to be more generous with their tips during these peak hours.
Also, don’t underestimate the magic of late-night deliveries, especially on those weekends when the town is buzzing. Those late-night munchies will easily become your new best friend.
Just remember… this will vary by city. So, plan your time where you spend 20% of your driving hours to test new times and track your cash.
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Once your application is approved, you can start dashing right away and you can start dashing right away and cash out instantly.
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How much can I make working as a dasher during peak hours?
So, you’re eager to boost your income, right? Well, let me tell you, the key to that extra cash lies in peak pay. It’s the bonus you snag for dashing during those high-demand hours. And trust me, those peak pay dollars can stack up faster than you’d think.
Also, according to my friend, Susan, look for bonuses that can help you boost your earnings! These are known as “Peak Pay offers” or added Challenges, which provide opportunities to increase your earnings.
Many Reddit users report making between $100 for 4-5 hour shift up to $1400 a week by DoorDashing. 2
So, if you’re ready to prove your prowess in peak times, get set to dial up your income stream and watch those dollars roll in.
The Best Days vs. Times: A Comparative Study
Is it better to DoorDash on weekdays or weekends?
Weekends are the clear champs. That’s when folks unwind, and have a good time, and yes, the demand for food deliveries goes through the roof.
On the flip side, there are less Dashers during the week. So, you can possibly earn more if you know the right area.
Morning, lunch, dinner, or late night: Which is the prime time for dashing?
Lunch and dinner reign as king and queen of prime dash times. But don’t dismiss late-night dashes.
Specifically, in areas buzzing with nightlife or universities, late-night can bring a healthy influx of orders. Morning can be hit or miss, largely dependent on your local market. Thus, a great side hustle for college students.
What is the slowest day for DoorDash?
Mondays top the charts as the slowest day of the week for DoorDash. Folk are just shaking off their weekend mood and are less prone to order in.
Some tout Tuesday and Wednesday as the slowest DoorDash days too, so keep that in mind when planning your shifts.
Are there any specific days in the week that offer higher earnings than others?
Absolutely! When it comes to higher earning potential, Saturday and Sunday are the clear winners. Weekends are like a magnet for order activities, which means more opportunities for you to boost your earnings. And if you happen to catch a long weekend, that’s even better!
But here’s the deal – these are general trends. Keep in mind that some towns might have their own unique quirks, like a Taco Tuesday tradition that can make all the difference in your earnings. So, stay open to local insights and adapt your strategy accordingly!
Maximizing earnings during peak hours
To maximize your DoorDash earnings during peak hours, you’ve got to stay in sync with local demand. Pay attention to special events, holidays, and weekends when people prefer ordering in, and keep an eye on weather changes, as rain and snow tend to increase order frequency.
For a winning strategy, position yourself strategically near restaurant partners to receive orders swiftly. Be selective with the orders you accept during peak times to make the most of high demand, and always remember to deliver with a friendly smile, because exceptional service goes a long way in building customer loyalty and boosting your income!
How can I maximize my earnings when doordashing?
Boost your income by merging savvy strategies with exceptional service. Dive into these success tips:
First things first, get your radar on and gravitate towards bustling areas – that’s where the magic happens. More orders, more opportunities, more cash in your pocket.
Now, speaking of timing, don’t miss the chance to dash during peak hours. Schedule your time in advance that you want to dash. That’s when the demand kicks into high gear, and you might just snag some sweet peak pay bonuses.
Keep those eyes peeled for bonuses and promotions – they’re like little surprises that boost your earnings.
Here’s a golden nugget of advice: build connections with the restaurant staff. It’s a secret shortcut to quicker order handling, and less waiting means more dashing!
Lastly, never underestimate the power of professionalism. Deliver with a big smile, go the extra mile, and watch those top ratings and generous tips roll in. It’s all about creating an experience that keeps the customers coming back for more.
Strategic Planning Tips: Key is the Busiest Time to Doordash
Analyzing Location for the Best Times to Doordash in My Area
Your location is a game-changer for your Dashing journey. Consider this: urban areas are bustling with customers, while suburbs might yield bigger orders. So, explore your turf, identify areas teeming with DoorDash restaurant partners, and stick around.
Also, pay attention to where you’re making those drop-offs. Do residential areas bring in better tips, or does corporate tip higher? The sweet spots in different cities can vary, so it’s all about finding where your golden opportunities lie and making them your own.
Experimenting with different shifts to identify the most profitable times
Each time frame reveals its own unique potential for lucrative orders. So, switch things up, and you might just uncover unexpected opportunities and generous tips along the way!
Just make sure to log your earnings to compare.
Professionalism and Customer Service Matter
Your earnings and your ratings go hand in hand, making professionalism an absolute must. Following customer instructions, and ensuring a positive interaction all contribute to your review. Don’t forget to dress the part, maintain a friendly demeanor, and be responsive.
But here’s the secret sauce – infuse your interactions with a personal touch. Small gestures, like including extra cutlery or offering a weather-friendly greeting, can set your service apart and earn you those coveted 5-star ratings.
It’s all about going the extra mile for customer satisfaction!
Why delivering during promotions, bonuses, and streaks is beneficial
So to sum it up, what would really light up your earnings are promotions, bonuses, and those streaks that make the game interesting. My friend, Susan, said to pay attention to: Peak Pay or Challenges.
Peak Pay is your chance to pocket extra cash for every delivery when things are buzzing. The best part is, DoorDash rolls out these goodies during high-demand periods to give you that extra push to hit the road.
Well, they’re like your roadmap to earning bonuses by hitting a specific number of deliveries within a set timeframe. Typically $1-3 dollars extra per delivery. 3
Which Peak Times will You Choose to Doordash?
In conclusion, the optimal times to make the most out of your DoorDash side gig are during lunch, dinner, and late-night shifts.
Experimentation though, is key to understanding what works best in your particular market.
You could further optimize your earnings by utilizing other gig apps such as Uber Eats and Instacart, or by capitalizing on specific types of orders, such as alcohol deliveries, which may provide higher earnings. Remember factors such as tips, peak pay, and other incentives can impact your earnings, so keep an open mind and always look for new strategies to maximize your income.
Whether you’re a morning person fueling the coffee rush or a night owl catering to late-night snackers, the choice is yours.
Find your rhythm and make the most of those high-earning hours. With a smart strategy in your back pocket, you’re all set to Dash your way to success!
So, why wait? Start your DoorDash journey today and let that extra income flow in. It’s time to take that leap and embrace a more financially stable fulfilling tomorrow!
More Side Hustle Ideas:
Source
DoorDash. “The New Dasher Guide.” https://help.doordash.com/dashers/s/article/New-Dasher-Roadmap?language=en_US#:~:text=Peak%20times%3A%20Lunch%20and%20dinner,to%205%20days%20in%20advance. Accessed December 14, 2023.
Reddit. “How much do you make doing doordash weekly?” https://www.reddit.com/r/doordash/comments/xfii0s/how_much_do_you_make_doing_doordash_weekly/. Accessed December 14, 2023.
DoorDash. “Peak Pay.” https://help.doordash.com/dashers/s/article/Peak-Pay?language=en_US. Accessed December 14, 2023.
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“We see a little bit of pickup but not like you normally would because of seasonality,” Overfelt added.
If rates continue to drop, some LOs expect a small ‘bump’ in cash-out refis but traditional rate-term refis won’t be likely in the foreseeable future until rates are in the 5% range, LOs said in an interview with HousingWire.
“We need a continuity in rates”
Rates are quoted differently for every buyer depending on several factors – including their credit score, down payment and loan-to-value (LTV) ratio, as well as how many points they buy down upfront.
In other words, a borrower with a 700 FICO score and a 5% down payment won’t be getting a mortgage rate in the 6% range any time soon. Even a good-not-great borrower profile likely isn’t in the 6s yet without buying points or getting pricing exceptions from their lender.
Though conditions have undoubtedly improved from a dismal fall, mortgage rates today are still far higher than they were about a year ago.
HousingWire’s Mortgage Rates Center showed 30-year conforming rates at 6.998% on Monday. Compared to a year ago, it’s still well above 6.35%.
“If we compare 24 months ago, demand is way off. If I compare two months ago, demand is up. So if you look macro versus micro, you’re going to get a very different picture,” said Shane Kidwell, CEO of Dwell Mortgage. “We hit that point where we saw the worst and so it feels like we’re moving past that. How fast we move past that is up for debate.”
Loan originators are hopeful that mortgage rates will continue to decline as the spread between the 30-year fixed mortgage rates and the 10-year Treasury yield narrows.
Demand for approvals has definitely increased, but homebuyers are waiting to see if they will drop just as fast as they have come down recently, said Robby Oakes, managing director at CIMG Residential Mortgage.
Buyers want to know that they will be able to get a low mortgage rate when they lock in a rate. Rates are too volatile for buyers to have that confidence, Oakes noted.
After a fairly strong jobs report on Friday, rates ticked back up. All eyes will be on the CPI report and Fed meeting this week.
“When rates go up by a point, people sit on the sidelines. When rates go down by a point, people sit on the sidelines because the consumers and the sellers want to know what the market is going to be when they sell the house. We really need an orderly, return to normal rates,” said Oakes.
A potential small refi bump
With about 90% of mortgage holders having a rate below 6%, a traditional refinance boom isn’t likely in the cards for the next few years.
“For somebody to want to do a traditional refinance there has to be a financial incentive, right? They’ve got to be able to see a rate lower than where they are to do a traditional refinance,” said Kidwell.
“Today is not the best day for them to get a refinance. It’s the best day to start thinking about that process and reengaging,” Kidwell noted.
Loan originators say homeowners are reluctant to give up their low-rate first lien mortgages and lean towards tapping into their accumulated home equity through home equity line of credits (HELOCs) even if it means getting a second mortgage with a higher interest rate.
“There is a lot more inquiry for home equity line credit. People are afraid to give up that rate that has a three in front of their mortgage,” said Steinway.
ICE Mortgage Technology estimated tappable home equity – the value borrowers can borrow while still preserving at least a 20% equity stake in the home – was $10.6 trillion as of Q3 2023, nearing its 2022 peak.
“We’ve already seen there is more of a focus on home equity lines of credit and cash out refinances. Borrowers are not doing this because the rate is where they want it to be, their debt is where they don’t want it to be and so they’re consolidating debt or they’re using their equity to purchase something else or to pay something else off,” Kidwell noted.
While loan originators don’t expect a refi boom, they anticipate a small refi ‘bump’ stemming from cash-out refis.
“I think non-traditional refinances (cash-out refis), we’re probably going to see probably more of. Traditional refinances (rate-and-term refi), I don’t think I’d call it a refi boom. I think we might see a small refi bump,” said Kidwell.
Only a mere 14% of originations came from refis in Q3 and cash-out refinance loans fueled what is left of the small refinance market accounting for 92% of the third quarter activity, according to ICE Mortgage Technology.
Meanwhile, it will be a long time before the industry sees a traditional refi boom.
Most LOs don’t expect traditional rate-term refinance demand to return until the second half of 2025 and into 2026.
For 2024, roughly 75% of origination volume is expected to come from purchase loans.
The Mortgage Bankers Association (MBA) expects the 30-year fixed-rate mortgages to come down to 6.1% in 2024, followed by 5.5% in 2025. Fannie Mae has a more conservative outlook expecting rates to average 7.3% in 2024 before declining to 6.9% in 2025.
And for originations business to pick up, a stability of low rates as well as a supply in inventory would have to work in tandem.
“I don’t think things will pick up dramatically because there is still no inventory. Anytime you see rates drop, you can see business pick up. I think what we need is continuity of rates,” said Oakes.
Learning how to budget money on a low income takes work, but it can pay off big if you start early. Here’s how.
November 28, 2023
Starting your first job after school can be exciting, but it also ushers in new challenges. One of the biggest hurdles is making sure you can cover all of your bills and living expenses with your entry-level income.
Taking the time to create a budget can reduce stress and set you up for long-term financial success, says Michela Allocca, founder of the personal finance blog Break Your Budget. Sticking to a budget on a low income in your 20s can get your financial life in order with the right mindset for planning.
Not sure how to budget money on a low income? Allocca explains what a budget is, why it’s important to have one, and how to stick to one—even on a low income.
Why budgeting for young adults is important (especially on a low income)
Creating a budget may not sound like the most exciting way to spend time when you’re young and adventurous. But Allocca says that putting in the work now will make it easier to reach your financial goals and avoid money stress in the future.
In short, a budget is a spending plan based on an individual’s income and expenses, Allocca says. “In its simplest form, it’s how you choose to allocate your funds over a certain period of time,” she says. “It includes the essential expenses that make up your cost of living, as well as your nonessential expenses such as eating out, entertainment, or travel.”
Allocca believes having a budget is helpful at any stage of life, but it’s especially important in your 20s. “Not only does it provide direction on where your money is going, but it draws your awareness to what you are spending your money on,” she says. “This level of awareness makes it possible to nip poor spending habits in the bud early on, as well as ensure the money you are spending is being directed toward things that matter to you.”
How to create a budget that works for you
Younger people are often looking to align their spending with their values, Allocca says, and creating a budget can make your financial dreams a reality. When you’re ready to create a budget, Allocca recommends taking the following steps:
1. Gather information
“First, start by bringing awareness to your expenses,” Allocca says. “Look back at how you’ve been spending pre-budget.” She recommends taking a look at your credit and debit card statements from the last three months. From there, you can figure out the categories, based on your monthly expenses, that you’ll need to allocate money to.
2. Pinpoint your spending
Next, identify what you’re spending on average for each of the various categories of your budget. “You can use your historical information as a guide from the statements you reviewed earlier,” Allocca says. This is especially helpful if you’re thinking about how to budget to pay off debt.
3. Adapt and adjust
No budget is perfect out of the gate, Allocca says. Rather than spending time making sure your budget is flawless, it’s more important to put it into action and iterate as you move forward. “It’s super normal for your budget to shift and change both throughout the month and over time,” she says. “If it’s your first budget, keep an open mind to adjustments, and don’t worry if you are over or under in a certain area at first.”
To build your beginner budget, Allocca recommends using either a budgeting app or a budgeting spreadsheet (her personal preference).
How to stick to your budget over the long run
Creating a budget is the first step toward building a healthy financial future, but sticking to a budget is crucial. Allocca shares some tips for budgeting for young adults, even those who have a low income.
Learn how to say no
“’No,’ is a full sentence,” Allocca says. “In your early 20s it can be easy to succumb to peer pressure or to feel like you need to buy things to keep up with an image. It’s okay to turn down plans if it’s going to stretch your finances too thin or if it just isn’t worth it.” Your future self will be rewarded for making those sacrifices early in adulthood, she says.
Keep your essential expenses as low as possible
Having fewer expenses will make it easier to stick to a budget. “The highest expenses you’ll have are rent and your car, if you have one,” Allocca says. “If you’re in your early 20s, get a roommate or two, and don’t buy or lease a car that is more than 10%-15% of your income.”
Prioritize your value categories
What expenses are most important to you? “You don’t need to do everything, and you don’t need to spend your limited income on anything that isn’t adding value to your life,” Allocca says. “In my early 20s, I prioritized my discretionary income on my gym and my restaurant budget because those two things added the most value to my life.” Or, if you’re learning how to budget to pay off debt, you should prioritize your debt payments in your budget to become debt-free.
How to adjust when your expenses outweigh your income
Allocca says that budgeting for young adults on a low income is very similar to budgeting on an average or even a high income. The formula stays the same, she says: Allocate your income to the appropriate categories.
“The challenging part of having a low income is that you have less wiggle room, which can make day-to-day decision-making a lot harder,” Allocca says. “Don’t let this intimidate you, because a budget shows you how to use your money. It’s designed to be a tool to help you.”
And if your expenses outweigh your income, you can either reduce your expenses or increase your income. “Unfortunately, there is no secret sauce to this problem; it boils down to the math,” Allocca says. “That being said, there are ways to go about this that don’t need to be super overwhelming or stress-inducing.”
First, look at your expenses. If this is your first budget, there are likely many ways to make cuts. Start with unnecessary expenses: What can you live without? Once you’ve trimmed the nonessentials, assess whether you can reduce any essential expenses—whether that means moving to a less expensive apartment or buying produce on sale.
Spending less is a great start, but you can only cut your expenses so much. “The other side of the coin is increasing your income, which isn’t as hard as you think,” Allocca says. She encourages people to pick up a side hustle, such as ride-share driving or delivering food to earn extra cash. “Think about skills you have that you can leverage to earn money online via freelance websites,” she says.
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Budgeting allows you to get a handle on your expenses, spending, and financial goals. Having a budget in place early in adulthood helps you develop healthy financial habits—such as regularly adding to your savings account—and can reduce money-related anxiety, Allocca says.
But budgets are not a one-and-done exercise; your budget should evolve to adapt to your life situation and goals, she says. To stay on top of your changing priorities, try referring to a financial review checklist to ensure your budget is always aligned with where you are—and where you want to be.
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Inside: Are you looking for ways to make money on the side? This guide has everything you need to know about the best side hustles for men. From turning your passion into profit with these gig ideas!
In this post, I collaborated with my husband. Together, we combined our ideas and expertise after work to generate ideas centered around how men specifically can make money. His input and insights were remarkably vital to this post.
Break free from the 9-to-5 grind and embark on a journey towards a fulfilling side hustle – it’s a game-changer for gentlemen looking to beef up their bank accounts.
In the ever-evolving landscape of side hustles, now is your year to supercharge your earnings. There’s a treasure trove of opportunities waiting for you to delve into, all while indulging in your passions. From tech-savvy endeavors to unleashing your creative genius and practical gigs that pay, our guide is here to unveil the ultimate side hustles that can set you on the path to financial triumph.
Ready to boost your income? Fantastic! You’re on the path to prosperity.
Here, we’ll explore the 40 best side hustles for men in 2024.
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Embracing the Hustle: Why Men Should Consider Side Hustles
Side hustles are more than mere cash generators – they’re the keys to a world of freedom, flexibility, and endless growth potential.
If you’re a gentleman with a hunger for financial prosperity, a side hustle can be your golden ticket. It empowers you to call the shots and maintain your existing commitments while paving your way to success.
While women tend to lean towards side hustles for women, it’s high time for men to dive headfirst into the captivating world of side hustles!
How can a guy make extra money?
Making extra money doesn’t have to be monotonous. Whether you’re a tech whizz, an avid creator, or a hands-on worker, there’s something for you.
There are so many ways to make money. I just read this story about a college kid starting with $300 and turning his sticker side hustle into a full time business. 1
These options can yield solid income by leveraging your unique skills and interests. Want to learn more? Keep reading; we have plenty of ideas for you!
Top Side Hustles for Men
As my hubby said, extra income takes the financial strain off the normal job. With side hustles, you can choose how you want to spend your time – watching sports, playing video games, or making money.
The choice is yours!
Right now, learning to make money online for beginners is the most popular place to start.
1. Invest in Real Estate
Around here at Money Bliss, we always stress how to make your money work for you and real estate is no different.
Real estate investment is a golden opportunity that not only offers a steady income but also the potential for property value to soar. Keep in mind, that it’s a long-term game that requires a significant upfront investment.
However, there are many options like flipping properties, renting properties, or even investing through a REIT. Dive into the world of real estate to maximize your returns. Let your money do the heavy lifting for you.
2. Day Trader
Many men opt for trading stocks and options as a side hustle for several compelling reasons.
Trading offers flexibility, as your research can be done at any time, making it convenient to manage along with a nine-to-five job.
It has an immense profit potential, given the volatility and opportunities present in the global stock markets.
Many want to earn a rate of return greater than the average return of the S&P 500 – a common benchmark index for that competitor inside them.
Finally, trading presents an opportunity for continual learning and development, as successful trading requires staying updated with financial news, stock apps, market analysis, and economic trends, thereby enhancing one’s financial literacy.
Trade & Travel
Learn to trade stocks with confidence.
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. Become an Umpire or Referee
Sports fans, here’s your calling! Transform your passion into a profitable part-time gig by becoming a sports referee.
There is a HUGE shortage of umpires and referees.2 Rates per game can range from $20 to $60, and over time, you can earn even more as you referee older leagues. Plus many leagues are paying more to incentivize refs to come back to the fields.
Not only does it assure good pay, but it also lets you enjoy your favorite sport, exercise, and create exhilarating moments. Check it at your local club or league for training and to get started today.
This is something my brother-in-law did all the time and easily made 200 dollars a day.
4. Participate In Medical Studies
If adding to medical knowledge interests you while earning, consider participating in clinical trials.
Compensation depends on various factors like the study’s length and complexity. You can earn $50 to $300 a day!
It’s worth considering if you’re comfortable with potential risks and lengthy commitments. Websites like ClinicalTrials.gov or your local hospital could help you get started. It’s a unique way of contributing to medical research while making money. Do check the risks before diving in!
5. Moving and Heavy Item Delivery
Feel like adding some muscle? Moving and heavy item delivery might be your perfect hustle. If you’ve got a buddy, a solid back, and a truck (or can rent one), this is the gig.
You could easily earn about $20-$25 an hour helping people move houses or delivering large items. Opt for evening or weekend gigs to fit around your day job.
Get started by advertising your services or using apps like TaskRabbit or NextDoor. An excellent way to stay fit and earn some extra dollars at the same time!
6. Rent Out Your Extra Room
Do you have a spare room? Then, transform that neglected space into a cash cow.
Airbnb or VRBO can help you lease it out to travelers. Its user-friendly platform lets you manage rentals with aplomb. Plus, you get the chance to grow into a SuperHost.
Another option is to look at investing in a duplex where you live on one side and rent out the other.
7. Woodworking
This takes a special talent like my father-in-law had. He and his boys were known for crafting Adirondacks chairs, bedroom furniture, and patio tables.
So, if you have this woodworking knack, then this side hustle could be a golden ticket. The key to success is to perfect your craft to a few select items to be efficient with your time, so, you can better the profit. Let your handyman skills shine and earn you some extra cash!
The average earnings of a woodworking side hustle in the U.S. can range from approximately $500 to $3,000 or more per month, depending on factors such as the complexity of projects and marketing efforts.
8. Beekeeping
Honey, take note! If you’re not deterred by bees and are interested in agriculture, try your hand at beekeeping. This might be a family affair – like my daughter’s soccer coach.
Honey sells for around $20 a pound, and bees virtually do all the work! Plus, you contribute to pollination and the environment.
Combined with pest control services (like removing large nests), you can amplify your earnings. However, getting comfortable with bees might take time. But, once you do, the sticky sweet liquid gold that is raw honey could put a sizeable amount of money in your pocket.
9. Detail Cars
If you have a passion for cars and cleanliness, consider detailing cars as your side hustle. There’s something gratifying about transforming a dusty vehicle into a sparkling gem.
Depending on the quality of your service, you can earn up to $500 in a single weekend! Start by experimenting with your own car and build a portfolio to attract customers.
You’ll need tools like a good shop vacuum and detailing brushes. I have seen plenty of men showcasing their work on social media with before-and-after photos. Polish those wheels and drive towards profit!
10. Landscaping Side Hustle
Armed with green fingers? Eager to perform hard physical labor? Then a side gig in landscaping can do wonders for your wallet.
From regular lawn care to fall leaf cleanup to full-on backyard redesigns, there’s something for everyone. Look to websites like Lawn Love to match you with your first clients.
Potential income for this venture depends on how many hours of your time you are willing to trade.
11. Drive for Ridesharing Apps
Like to drive? Awesome, do it for cash! Ridesharing apps like Uber and Lyft got you covered.
Be your boss, and work on your terms.
You need to make sure you have a nice car, proper insurance, and learn the busiest routes to maximize your earnings. Do pay heed to your vehicle’s wear and tear, though. However, this is one of the jobs that pay weekly.
12. Snow Plowing
Living in a snowy region? Consider snow plowing. This is a quick way to make money! I can attest to my kids quickly making $200+ a day from snow shoveling.
Even better is to have business clients that need this service. As such, all you need is a reliable truck or SUV with four-wheel drive and a snowplow. Plus, you can upsell by offering extra services like salting and hand shoveling.
This lucrative side gig can result in you earning thousands each winter. It’s an opportunity to put your vehicle to good use and tackle Mother Nature for a handsome payout.
16. Knife Sharpening
If you have a knack for precision and patience, knife sharpening could be a rewarding side hustle. Businesses like restaurants butcheries, and home cooks are potential clients.
All you need is a quality knife sharpening setup and knowledge of the right techniques. Advertising your services on social media can help bring in customers. Who knew such an unusual skill could be so profitable?!
17. Plasma Donation Centers
While this one is probably more geared to side hustles for college students have you ever considered donating plasma for cash?
You help others, and it earns you up to $500 a month. It’s a generous deed with a minimal time commitment.
Search for “where to sell plasma in [your city]where to sell plasma in [your city]” to get started. Remember, most places have similar requirements to blood donation and may require a short medical screening first.
18. Bookkeeping
Good with numbers? Have an eye for detail? Look into bookkeeping.
Services like generating invoices, managing accounts payable, and preparing tax returns are always in demand. Overhead costs are low as you only need a computer and accounting software. Plus, payment is high at around $50 per hour!
For most bookkeepers, referrals are their bread and butter. To start out check the local Chamber of Commerce to start meeting other business people.
Turn your love for crunching numbers into a lucrative side hustle.
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19. White Label Software
Dip your toes into software reselling by using white-label software. This is great for someone who is good with technology and understands SaaS. However, no coding or IT background is necessary.
All you need to do is buy “seats” of an existing software at a wholesale rate, then resell them at retail.
Use any software name or category on Google and add “White Label” at the end to find options. Build a website, market your product, and start earning by becoming a digital intermediary! Start earning by becoming a digital middleman!
20. Work as a Translator
In the United States, nearly 20% of the population, roughly 67.8 million people, speak a language other than English at home, with Spanish, Chinese, Tagalog, Vietnamese, and Arabic being the most prevalent.3 If you’re fluent in another language, this opens doors to flexible and potentially lucrative side hustle in translation and interpretation.
Earnings in the language translation side hustle can fluctuate based on the client’s requirements and your preferences. For instance, you might find translation opportunities on platforms like Freelancer.com offering rates of up to $60 per hour, while translators on Fiverr can charge as much as $125 per project.
21. Pallet Flipping
Are you inclined towards an entrepreneurial middleman ship? Pallet flipping could be your ticket to substantial income.
This is similar to buying storage units unseen and flipping for a profit. With pallet flipping, the process involves buying and reselling pallets of customer returns, overstocked items, or unsold merchandise, often from major online platforms. Connect businesses that need pallets to ship their products with those looking to get rid of them.
Whether you start small or aim high, scalability and considerable earnings are within reach. Check out this Pallet Flipping book to get started.
22. Help Others Write Resumes
If you have a talent for crafting impressive resumes, there’s a lucrative side hustle waiting for you. Job seekers are constantly looking for professionals who can help them stand out in the competitive job market.
According to our research, professionals skilled in resume writing can start charging for their services on platforms like Fiverr, often earning anywhere from $50 to $150 per resume service including cover letters and LinkedIn profiles.
Mastering the art of creating effective resumes, including understanding industry-specific keywords, is the secret sauce to success in this field. By assisting others with their career aspirations, you can collect a decent income while making a meaningful impact on their job prospects.
This is also a popular digital product to sell on Etsy.
Earn More Writing
You can make money as a freelance writer.
Learn techniques to find those jobs and earn the kind of money you deserve!
Plus get tips to land your first freelance writing gig!
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23. Laundromat
Here’s an unconventional yet profitable idea – owning a laundromat! It’s an already profitable model (as it has been around for years) and most processes are automated.
Integrating some digital marketing skills and making tweaks like improving your online presence could earn you significant profit. But be aware, that this does involve an initial investment. Scope out opportunities to buy a laundromat near you.
Also, another trend is starting a laundry business where you take care of others’ laundry needs. Who would have thought laundry could be so rewarding?
24. Start a Consulting Side Hustle
Do you have expertise in a specific area? Consider starting a consulting side hustle.
Consulting is often about solving problems and providing strategies. Whether you’re skilled in marketing, HR, tech, or any other field, your knowledge can be valuable to businesses. Use your existing network to start and gradually grow your client base.
With the right marketing and a robust network, consulting can be highly rewarding. Honestly, this is a popular job after retirement for many. So why wait? Start monetizing your wisdom today!
25. Furniture Flipping
Ever heard of furniture flipping? It’s about buying used furniture at low prices, revamping it, and selling it for a profit.
Furniture flippers can be a goldmine especially if you know what to look for. Unearth the potential in old furniture and flip it into a profit with this artistic hustle.
You can source items from yard sales, flea markets, or online. Sanding and repainting can transform items into showpieces. This gig is perfect if you love hands-on projects that require creativity and patience. Remember, a great photo makes the sale for your final piece!
26. Walk Dogs
Dog lovers, rejoice! Here’s the perfect gig for you – dog walking. If you love playing with our furry friends and love the outdoors, why not get paid for it?
Apps like Rover can connect you with dog owners in your area in need of walking services. Dog walking can fetch (pun intended!) you around $10–$18 per walk. If you’re passionate about spending time with fidos, this side hustle is a pleasure that pays!
Rover
Get paid to play with pets!
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27. Find Odd Jobs in Your Area
Not afraid to roll up your sleeves? Awesome! Odd jobs can be a treasure trove of opportunities.
Think yard work or furniture assembly. Seek out these gigs on platforms like TaskRabbit, Nextdoor, Craigslist, or Fiverr, and a few hours of work can earn you a tidy sum. It’s the perfect hustle for those in search of quick cash injections!
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28. Photographer
Are you skilled at capturing beautiful moments? Turn your passion into a lucrative side hustle by becoming a photographer.
With average rates of earning 500 dollars per day, your earnings could easily surpass those of a full-time job. You can explore areas like wedding photography, senior photos, or commercial product photography.
The best way to gain clients is through referrals or a fundraiser. Grab your professional camera and start capturing memorable moments while boosting your income. Focus your lens and let your creativity shine!
29. Unusual Rentals
Get creative! As this man demonstrated, unconventional rentals like a power washer can earn you thousands of dollars every month. 4
You can rent out spaces like your garage, or backyard to pet owners, or even invest in items like portable hot tubs or bounce houses. Platforms like Airbnb, Sniffspot, Vrbo, and Neighbor can help you get started.
Your unused space or items can transform into extraordinary sources of income. Dive into the world of rentals and unveil massive profits!
30. Cryptocurrency
Crypto investment is a popular side hustle that can yield incredible returns (and significant losses).
However, keep in mind that the cryptocurrency market is volatile, and you should only risk what you can afford to lose.
Crypto is not for the faint-hearted, but with the potential for high returns, it could be your golden opportunity.
31. Teach Music Classes
Do you possess a hidden musical talent? Then, teach music class!
With countless adults and children seeking music lessons, you can make good money sharing your skills. Offer piano lessons, guitar instruction, drumming, or any instrument you excel in. You can use platforms like Skillshare or provide private lessons.
On average, music instructors can charge anywhere from $40 to $100 or more per hour for online lessons depending on how advanced the lessons are. Sharing your passion for music while making money sounds like music to the ears, doesn’t it?
32. Sell on eBay
Have you ever visited a garage sale? Turn those finds into a profitable hustle by selling on eBay. eBay is an excellent platform for selling a wide range of items.
Some personal successes include flipping items like electronics, old iPods and iPhones, sneakers, and furniture. Successful eBay selling boils down to recognizing profitable items and securing a bargain purchase.
Are you ready to flip and fill your wallet with extra cash? You could sell on Facebook Marketplace, too.
33. Reselling on Amazon
Reselling products on Amazon is the trend of the hour. Scout for items cheaper in your area than online, including toys, limited edition shoes, or seasonal delicacies.
Consider trying dropshipping to curate your product lineup without worrying about inventory. Armed with just an Amazon seller account and a keen eye for trends, you can dive into this lucrative venture!
34. Start A Freelance Business
Have niche skills? Time to cash them in by freelancing. This is a booming market.
Bid on projects that resonate with your skill set: graphics, writing, social media management, website design – you name it! Going freelance offers flexibility, and autonomy and can bring in some serious cash.
Be sure to create a compelling portfolio to attract clients and make sure you have solid reviews.
35. Play Games Online
Game on, fellas! Who said you can’t turn your gaming hobby into a money-making machine?
You can pocket money by playing games like Blackout Bingo and Solitaire Cube.
Just remember you can win real money, but you can suffer losses as well. Also, be sure to check if cash tournaments are available in your region.
36. Watch Videos Online
Do you enjoy watching videos? You can earn while indulging in your favorite pastime! Platforms like InboxDollars and MyPoints offer cash rewards for watching videos. Plus, you can claim a $5 sign-up bonus on InboxDollars.
While the earning potential might be relatively low, it’s a seamless background activity. You can make money while relaxing on the couch. So, why not unwind with your favorite video content and get paid for it?
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37. Start a Podcast
Do you have a passion for conversation? Starting a podcast is not just about speaking your mind; it’s a captivating path to potential profit.
With over 177 million podcast listeners in the U.S. alone, your words have a vast audience waiting to tune in.5
Dive into topics like BBQ techniques, current events, or life’s twists and turns, and you might be surprised to know that top podcasters earn money with sponsorships.
38. Delivery Gigs
Do you love driving, but want to limit contact with people? Consider delivery gigs.
Food delivery apps like DoorDash, Uber Eats, and Instacart can pad your wallet. You can make deliveries on your schedule while retaining control over when and where you work.
These gigs typically pay $15 to $20 per hour, plus tips. Some companies even allow bicycle deliveries for a bit of exercise. Deliver your way to financial success with this flexible side hustle.
39. Start a YouTube Channel
Do you have a passion for digital creativity? Consider starting a YouTube channel – the “king of side hustles.”
Use your unique perspective to engage viewers, whether through personal vlogs, tech reviews, or evergreen content. The potential is boundless.
YouTubers earn money from ad revenue and sponsorships. With a staggering number of users on YouTube, why not tap into this vast audience?
Established channels can rake in thousands per video. However, remember that channel success hinges on content quality, relevance, and consistency. Get behind the camera and share your creativity with the world!
40. Freelance Writing
If you have a way with words, freelance writing is an attractive side hustle. Typically, writing is the most sought-after freelance service.
You can choose from various writing niches, including copywriting, blog writing, ebook, social media content creation, or creating detailed reports. Impress clients with samples of your best work.
For many, this was the first step before they went into to the world of blogging.
Earn More Writing
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Learn techniques to find those jobs and earn the kind of money you deserve!
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42. Take Online Surveys
Have some free time and a reliable internet connection? Consider taking online surveys.
Websites like Swagbucks, Panel Place, or Survey Junkie are on the lookout for your opinions. It’s simple: sign up, share thoughts, and cash out! Look out for the highest-paying survey sites to maximize your profits.
Taking online surveys can typically amount to around $50 to $200 per month, depending on the frequency and length of surveys taken.
While it won’t make you a fortune, it’s an easy way to make a couple extra bucks during downtime. Start voicing your opinions for money today!
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43. Find a Flexible Part-Time Job
Finally, a part-time job can provide a steady cash stream.
Right now, you can find hiring signs everywhere! This is a great way to trade your time and make a little bit over minimum wage.
Apply to those vacant positions now, and sail towards extra cash!
Striking the Balance: Juggling Regular Jobs and Hustles
This is where my husband is always the most concerned because juggling your full-time job along with your side hustle can be tricky. Even more so, if you have a family.
The key is to create a feasible schedule that allows you to manage both without affecting the quality of work.
Keeping a time log can help identify how you can spare time for your hustle. Remember, side hustles should not hinder your regular job.
The goal is to make extra money, but not lose precious time with your family, so you must strike that balance for a smooth side-hustling journey. It’s all about dedication, time management, and commitment.
Now, are you ready to toss that juggling ball up in the air?
Frequently Asked Questions about Side Hustles
Personally, we feel the most profitable side hustles for men is real estate investment, followed closely by trading stocks and options.
These side hustles have a higher amount of money needed to start investing. So, we decided to consider your skills and interests to make a big impact now.
Making an extra $2000 a month is a game of adopting multiple hustles or honing in and being successful with one.
More importantly, it’s all about identifying your strengths, and interests and leveraging opportunities from there. Keep grinding, and you’ll find that fortune favoring your extra efforts!
Earning an extra $1000 a month might seem daunting, but it’s definitely achievable. Combining side hustles like driving for DoorDash, medical research studies, and flipping items can help you hit that target. Remember, the key lies in maximizing your skills, and efficiency, and choosing the right hustles. Embark on your side-hustling journey today and watch as your bank account flourishes!
Which Side Hustle for Guys Do You Like?
Now that we’ve explored these exciting side hustle opportunities, it’s time for you to take action. Which one resonates with you the most?
To truly excel in the world of side hustles, it’s crucial to approach your ventures with the right mindset. Your skills, hobbies, and interests should align with your chosen hustle, ensuring that you’re not just chasing dollars but pursuing something that genuinely excites you.
Remember that side hustles require time, commitment, and sometimes an upfront investment. The higher you’re willing to climb, the better your view (and the payouts) will be!
Don’t wait any longer. Start your side hustle journey today, and unlock the door to financial freedom and personal fulfillment.
Source
CNBC. “21-year-old spent $300 to start his sticker side hustle—now it brings in up to $38,000 a day: I was ‘unprepared’ to go viral.” https://www.cnbc.com/2023/10/30/how-sticker-side-hustle-invalid-jp-went-tiktok-viral-became-lucrative.html. Accessed October 30, 2023.
CBS News, “Youth sports referee shortage grows amid aggression from parents, coaches.” https://www.cbsnews.com/philadelphia/news/youth-sports-referee-shortage-grows-amid-aggression-from-parents-coaches/. Accessed October 30, 2023.
Census.gov. “Nearly 68 Million People Spoke a Language Other Than English at Home in 2019.” https://www.census.gov/library/stories/2022/12/languages-we-speak-in-united-states.html. Accessed October 30, 2023.
Express. “‘Anyone can do it’ Man shares unusual way to make money without leaving home.” https://www.express.co.uk/finance/personalfinance/1623166/money-making-tips-earn-from-home-fat-llama. Accessed October 30, 2023.
Exploding Topics. “Number of Podcast Listeners.” https://explodingtopics.com/blog/podcast-listeners. Accessed October 30, 2023.
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Hey everyone! Today, I have a great savings story to share from a reader named Nichole. She will be talking about how she went from -$20,000 to a six-figure savings by 26 years old. The following will be outlining my experience getting scammed and how it catapulted me into learning about how money works. I…
Hey everyone! Today, I have a great savings story to share from a reader named Nichole. She will be talking about how she went from -$20,000 to a six-figure savings by 26 years old.
The following will be outlining my experience getting scammed and how it catapulted me into learning about how money works. I will divulge all the things I’ve done to earn a six-figure savings, pay off over $20,000 in debt and stay consistent with saving for a home to pay cash. I will go over the importance of knowing your “why” and how it has a large part in saving money. I believe we all have the ability to be successful with our finances and sharing my story hopefully encourages you to stay motivated during your own journey.
Since I was a little girl I’ve always yearned for independence and responsibility. My mother tells the story like this:
“It was your first week of kindergarten and I walked you to the bus stop to drop you off. You didn’t even let me drive you that first day! When I met you at the bus stop after school at 2pm you look at me and say “mom, you don’t need to pick me up from the bus stop, I can walk home without you”. I had to explain to you that wasn’t allowed because you were only five years old and the school didn’t allow that.”
The moral of the story is, if I could do it on my own I did.This included making money so I could buy my own stuff.
Throughout elementary and middle school I sold things to make money: lanyards, bracelets, candy, even offered to do peoples homework for $5 in 6th grade!
Earning money gave me more independence to pay for the things I wanted, so I always stayed motivated.
My parents never talked much about money, I just knew we had everything we needed and more. We were very middle class.
I was taught to avoid debt but to always have a credit card just in case an emergency happens. Oh, and you’ll always have a car payment, so get used to it
It wasn’t until sixteen years old that I learned my parents were always one catastrophe away from losing everything.
In 2008 my parents lost the home they custom built because they took out a no interest loan that they couldn’t afford once it ballooned.
This changed something in me, my world was shaken and I never knew it had a weak foundation to begin with.
I started to view money a different way.
I wanted it but didn’t know how to keep it safe from others that could take it away from me, like what my parents experienced. I didn’t want to repeat their money mistakes.
Fast-forward to 21 years old, I got married to my husband and best friend, yes so young, I know!
The following two years were spent finishing up my Bachelors in Communication and attempting to pay off our debt, we had about $20,000 wrapped up in student loans, credit cards and a car accident.We didn’t know much about money and we were still living with parents to try and save for a down payment for our first home.
This is how it’s supposed to work right? College, marriage, buy a home and have a baby. In that order.
In 2018, my husband and I put an offer on a home, 2 bed 1 bath fixer upper with a nice backyard and workshop in the back for $230,000.
We were excited for our new adventure but when it came down to our offer and one other, we lost. When we got the news our agent said, “yeah, they offered all cash, you didn’t have a chance”. We thought to ourselves, who the heck has that much money to pay cash for a home?! We brushed it off and figured it just wasn’t our time to buy. Little did we know the irony of this.
I started to really spend my time researching about money and how to leverage it and get rich! My goal was to find the secret sauce to success and wealth. I embarked on a downward spiral of YouTubes algorithm of financial videos and advice. Then I came across a very well-known financial expert that offered FREE courses about how to get rich, how could I pass that up? I signed up for the next free course.
Once there I was greeted with excited faces and tons of energy, oh yes, this was my moment to find the secret sauce! The lady speaking talked about all the homes she owns, the money she makes and extravagant trips she takes, I was hooked. I wanted that life, not my own, I needed change.
By the end of the presentation I was willing to do anything to continue my knowledge on financial freedom, or so I thought that’s what I was going to learn. I was the first person to stand up and run over to the tables full of iPads and “We accept credit” signs. I whipped out my credit card and signed up for my 3-day seminar. I don’t mind paying for education! I already had $13,000 in student loan debt anyway so who cares?!
The day of the seminar comes an I am elated, I am OVERLY ELATED. I couldn’t wait for my husband to share the same excitement I experienced at the last meet up.I was again, welcomed by excited faces and high energy. We had our notebooks, pens and open minds ready to learn how to get rich.
To no one’s surprise, we were let down.
Within 10 minutes of the presentation my husband looked at me with eyes saying “we got duped”. He didn’t have to say anything. Let me paint the picture for you.
The presenter had on a gold and diamond link bracelet and a fancy suit. He yelled and poured water on the floor for dramatic effect, handed out cash and even had us stand on our seats in unison shouting the same corny lines “we are warriors”. He informed us that he was going to teach us to buy homes with a credit card and leverage our credit for the best. He promised for the small price of $15,000 that we would learn all about the secret sauce to the rich *can you hear my sarcasm? *. He said we would have mentors along the way to help us buy these homes on credit. He told us not to come back the next day if we weren’t willing to pay for more classes. And we didn’t.
You get the point, it was a 3 days sale pitch to get us to buy more courses.
We walked to our car, now an extra $600 in debt and feeling like the most gullible people in the world. Christmas was only four days away and we were more broke than before we showed up. We had to sell personal items to have Christmas that year.
A switch went off in my head, I was angry. I was so angry that I fell into this scam, I was angry we didn’t get our home, I was angry we were broke, but ultimately, I was angry for not knowing how to manage my money. This stung extra because I hated the fact that in that moment I became my parents, I made a huge money mistake.
Anger is a funny thing, it can ignite the most creative sides of our brain. I decided I was going to get my money back.
What email did I send them?
A short summary of what I experienced and that they had 48 hours to get back in contact with me before I went to social media to expose them and my experience. I received a full refund the next day, with no response, even to this day.
Scorned is a nice way to put it.
I was now on a mission to learn all I could about how money REALLY works.
And so, I went back to my faithful teacher…YouTube of course!I searched and watched hours of videos until I came across one that made sense to me. A lot of financial jargon can be thrown around with no explanation, I don’t like that. I believe if someone can’t explain it easily then they don’t know enough about the subject to begin with.
Then I found the video that made sense: common knowledge and nothing you haven’t heard before (funny how that works).
I acknowledge that everyone has a different stance on money management and I take the view of, “to each their own”. I don’t think there is one “right” way but I found that following this new plan I was able to save more and feel good doing it than I ever did before.
These are the principles I followed, and they worked!
To put them simply they are:
1: $1,000 to start an Emergency Fund
2: Pay off all debt using the Debt Snowball
3: 3 to 6 months of expenses in savings
4: Invest 15% of household income into Roth IRAs and pre-tax retirement
5: College funding for children
6: Pay off home early
7: Build wealth and give
And then there is 3b – Save up for a home. This step is after you save your 3-6 months emergency fund and the current step I am on.
I had an epiphany, if I am in $13,000 worth of debt, and then add another $230,000 of debt for a house and a new car, then I’m going to be in some serious trouble with my monthly bills and interest I’m accruing. MOST Americans live like this. Banks don’t pay Trillions of dollars toward advertising if it didn’t work. Yes, I said “T”.
We paid off my student loans in full that day. I wish this was the end of our debt story but it is not.
My husband, who at this point in our journey is a new real estate agent, started to use a secret credit card to pay for real estate fees. We could have budgeted for these expenses but the shame of using the money I earned and him not contributing got the best of his ego. He bought a $200 chair for his new office, accrued office fees, all new clothes, etc…
Meanwhile I thought we were debt free and his parents were being nice by supporting his new venture! It is important for him and I to mention this part in our story because many people can relate to these feeling surrounding money: shame, guilt, and failure. It is a team effort.
Our social stigmas can convolute our ideas about money within a marriage. We are taught that the man makes the money, but sometimes the story doesn’t work like that and that’s ok!
The good news is, we’ve grown from this experience. We now work so closely with our money that we are each other’s cheerleader and in it to win it!
Since our journey has started we have:
Paid off my student loans— $13,000
Paid off all our credit card debt and consumer debt— $7,000
Paid off my car— $4,000
Paid for TWO cars CASH: A 2007 Volkswagen Jetta and then a 2012 Jaguar XF Portfolio to replace it when it died (quite a step up!) This is how we saved and bought our Jaguar cash summing— $14,400
Bought new appliances and toilets for my mother in laws home— $4,000
Given away money with a generous heart every.single.month (it’s part of our budget)
Accrued a six-figure savings and are on track to buy our first home cash in 2022!
How did we do it?
First, I’d like to mention, we are very normal people with normal jobs. I work in education and my husband is a real estate agent.
We didn’t invest in a stock that suddenly went up, win the lottery or get an inheritance.
We worked our butts off to get to this point in our journey and we still are.
Many people can do this and it starts with visualizing it and then believing you’ll get there.
We found out through our process it is exactly that, a process.
How we saved over six figures:
Following steps 1-7 about saving, investing and giving
Staying consistent! I can’t mention this enough, even if we go over our budget one month, we hop right back onto the savings wagon the following month
Side hustles—we have done it all! I was the cleaning lady at my job for 5 months, I baked cakes (and got quite good at decorating them), I made epoxy key chains, sold items we didn’t need, took on EVERY OT opportunity at work including working an extra 4 hours on top of regular work hours with students to help them during COVID, the list goes on. We take advantage of all extra earning opportunities
Cut down on spending—believe it or not anything outside of our bills and expenses we only allocate $200 a month for. This includes: toothpaste, if we need clothes, going out to dinners/lunch/with friends, medications, etc… Once the money is gone, its gone! Yes, I shop at Goodwill a lot and coupon hunt!
Cut out streaming services and use a family members account (one day we will get it back)
Use cash envelopes—We use this for bills that aren’t online to avoid going over our budget
Use a zero-based budget—We practice a zero-based budget approach with our money—all the money left over after our bills and expenses goes straight into the home savings. Read more about how this budget works here https://elizabethandinez.com/what-is-zero-based-budgeting-and-why-it-works/
Switch phone companies—we saved over $50 a month that went toward our home savings! We gave ourselves a raise!
Start a blog. My cousin and I started a blog and sell financial sheets on Etsy
Start giving to others every month. This is a part of our budget and the most fun you will ever have with money. Sometimes it’s to a waitress, a mother in a store buying food for her kids, a super awesome pet groomer, someone in a restaurant we want to get the bill for and most of the time its anonymously! Giving does something to the heart and is a huge part of our bigger picture of “why” we are doing what we are doing.This keeps us motivated to do more and stay the course. Having a bigger reason for why you save is a key factor for staying consistent
Stay diligent—we take every day as our opportunity to put extra into our savings
Meet with an accountability partner— We meet weekly to do a budget overview—this is important because we are each other’s accountability partners.
Practice putting out into the world what you want to receive, for example, a positive attitude! It’s amazing what happens when you attract positive outcomes, they come right back.
Visualize your goals and set intentions for them—this plays a large role in our success. We have charts around our room showing us our progress and how far we have come. Starting with the image in your head while also setting intentions for that goal will turn into real results! I suggest looking into videos or books on the Law of Attraction.
Open a Money Market account to help with depreciation and earn a little interest as you save. This is also good because the money isn’t as easily available as a checking’s would be. We get about $50 every month for FREE from interest
Attend a financial class—We’ve done this FIVE TIMES to be around likeminded people trying to get out of debt and follow the same plan. We know the information like the back of our hand but it is not about the knowledge, its about the behavior
Know your why
When you have a big enough “why” for the goal you are setting it becomes almost like second nature. You find ways to make it happen.
A good example (but a sad one) is if you have a sick child and not enough money for the surgery or appointment. Because your why for saving is so strong you are going to do EVERYTHING in your power to raise that money and make it happen, no matter what.
Without your why, the process is going to be daunting and drag.
You need motivation behind your goal, so find it.
Why are we saving like crazy anyway?
We decided we want to create generational wealth for our families. Money does not make you happy in life but it does clear up a lot of problems and make it possible to help others. We want to be able to take care of our family for generations.
We also want to be able to give to others. We give with open hands, not clinched ones. If you picture an open hand for a moment, palms up and open to receiving and letting go, vulnerable, not clinching, willing. Having an open hand allows money to flow freely in and out. Being open and quick to give to others rather than holding it tight allows you to see the miracles that money can make in another person’s life. We want to fill our cup to the top so that it pours over and we have enough to fill others.
Our plans for the future to become millionaires:
Buy our home cash
Up my work investing to 5% into my 403b for the complete company match
Put the max amount of $6,000 into each of our ROTH IRAS (as of 2021 that is the max amount allowed) We will set up automatic payments every month of $500 into each account to ensure we are hitting those highs and lows of the market every month
Save for a commercial real estate property
Save for rental properties. Because my husband is a real estate agent we are very interested in investing our money into real estate and handling rental properties in our area, specifically rehabbing trustee sales
Open a real estate brokerage account. This is one of our long-term goals and will one day be an investment we pay cash for to open
Earn income from the Elizabeth&Inez blog
Give to others so that their lives can be touched by the good in this world
Our journey is far from over but the successes along the way are proof of our bigger picture becoming a reality. We went from -$20,000 in debt to over a $100,000 savings from the beginning of 2019 to June 2021! Follow my blog for financial insight and more updates on our journey!
Do you have any questions for me? Ask away in the comments below.
Author bio: My name is Nichole Yanez and I am a financial blogger at Elizabeth And Inez. I talk about my experience as a millennial living in Southern California trying to buy my first home cash! I work in the field of education but my passion is money management and inspiring others to start their journey to financial freedom. I hope my story brings hope to others that they are capable of changing their family tree with three things: consistency, hard work and diligence. This is my story about financial deception and how it landed me into learning about money and how it works.
In our latest real estate tech entrepreneur interview, we’re speaking with Arvand Sabetian from Ziprent.
Who are you and what do you do?
My name is Arvand Sabetian and I’m an entrepreneur, a real estate investor and a technologist. I founded the property management company Ziprent in 2018 with the goal to provide the highest quality property management service at the most affordable prices with the utmost in transparency.
Background
In 2003, as a high school student, I founded a web hosting company, Arvixe, with an emphasis on incorporating the best tech with the best customer service to fill a much needed void in the industry. From 2009 to 2014 (5 years), our recurring revenue at Arvixe grew from $100k to $15M (150x) and in 2014, Arvixe was sold for $22M.
I entered the real estate investment world in 2012 by taking an approach to acquire diverse residential properties (by type and location). Over the next 5 years, I acquired 50+ units across single family, small (2-4 units) and larger (5-20 units) type residential properties in various locations up and down the state.
While managing my properties, I still utilized property managers for tenant placement since my units were scattered across different geographical regions. This led me to realize a large void for higher quality, more technologically advanced, and affordably priced tenant placement service in California. As such, I started Ziprent to address that need in 2018 and expanded to property management in 2019.
Today, after only 17-18 months of operation, by coordinating 13,000+ showings, Ziprent has placed over 300 tenants and manages nearly 500 units. Our goal is to expand across all of CA by the end of 2021.
What problem does your product/service solve?
For tenant placement, our service utilizes our in-house software to properly and quickly list a property, organize leads, coordinate showings and standardize application in-take while our near-24/7 customer service is there to respond to any specific questions from prospective tenants and to quickly process applications. The system together (human and tech) gives us the ability to help move a prospective tenant through the inquiry, showing, application, leasing and deposit collection process faster than a majority of our competitors (by several magnitudes), giving our landlords’ units an upper hand on the market.
For property management: We’ve built an in-house system to automate rent collection and accounting while assisting us in better organization of maintenance requests, lease renewals and communication. Our near-24/7 team is here to help with any and all requests from both our tenants and landlords via phone, email and text messaging.
In today’s world, to build trust, you must be transparent: By having our software act as the glue between our staff and our processes, we can make sure to consistently provide a high quality service. The software also provides the ability for our tenants and landlords to have visibility into our daily activity – allowing us to build trust quickly.
More about the tech:
For Tenant Placement – Listing aggregation (think, Turbotenant), remote/on-demand showings (think, Rently), application screening (think, Rentprep), lease generation (think, Yardi/Appfolio) all under one roof.
For Property Management – Rent collection (think Avail/Cozy), repair accounting, invoicing/accounting, lease renewal automation (think, Yardi/Appfolio), communication (think, remote call center management software) all under one roof.
Our secret sauce is that that we build our software in-house. Utilizing a mish-mash of external software slows down our competitors’ teams and prohibits them from making critical changes they need to make to the software to be as efficient as possible. When compared to each one of the companies listed above, every piece of our software not only outperforms the software provider’s version of it, but also gives our teams an upper-hand since the software was built with our teams and processes in mind.
What are you most excited about right now?
As we continue to expand, to upkeep the high quality of services we’ve become known for, it’s imperative to utilize our software and communication policies to segregate communication in regards to specific tasks and properties to specific teams. By allowing a tenant and landlord’s calls, texts, emails about repairs, leasing, etc. to be routed to a specific, smaller specialized team assigned to a smaller subset of units, we can assure a “localized service” with a larger foot-print allowing us to take advantage of a larger scale and network of vendors without sacrificing quality.
What we are excited about is that since we built our call center and systems from scratch, we can achieve exactly what’s described above without sacrificing any specific features as would most likely be the case with any company utilizing off-the-shelf software.
What’s next for you?
Expansion – We’ve proven that our services outperform those of our traditional counter-parts as well as those advertised as “new generation” in the greater bay area. Our next challenge will be to effectively expand this service across CA and the rest of the US while ensuring the same level of quality and cost effectiveness.
What’s a cause you’re passionate about and why?
For the past 4 years, I’ve personally participated in a 545-mile bike ride. The bike ride takes place over a 7 day period between SF and LA in California. Each participant must raise $3000 to participate and the ride raises over $16M yearly to address AIDS/HIV awareness and prevention between the two cities.
On a more macro level, I’m an avid fan of vast technological advances in logistics. I believe that rapid advances in logistics is the key for improving the lives of billions of people in the world.
Thanks to Arvand for sharing his story. If you’d like to connect, find him on LinkedIn here.
We’re constantly looking for great real estate tech entrepreneurs to feature. If that’s you, please read this post — then drop me a line (drew @ geekestatelabs dot com).
If you’re considering living in Omaha, Nebraska, prepare to experience a city of vibrancy and entertainment. The town boasts an array of unique attractions and experiences that locals and newcomers alike can enjoy. There’s something for everyone, whether it’s savoring exquisite craft cocktails, exploring hidden gems, or immersing yourself in nature.
Whether you’re still considering making the move or you’re already exploring apartments for rent or homes for sale in Omaha, this Redfin article will showcase a plethora of unique things to do in Omaha.
1. Proof Whiskey Bar and Craft Cocktail Lounge
If you’re a whiskey and craft cocktails fan, Proof Whiskey Bar and Craft Cocktail Lounge is the place to be. The bar offers one of the wildest whiskey collections, nearly guaranteeing you’ll be met with a great drink.
“The bartenders are extremely knowledgeable and are experts at their craft,” say’s Shantel Powers, a photographer with Glam Haven Photography. “Try the Barrel Pick Old Fashioned that comes in a cedar smoked glass for a twist on the classic cocktail.”
2. Nosh Restaurant and Wine Lounge
Not every high-end meal has to come with high-end prices, which Nosh Restaurant and Wine Lounge owner Erick Neimier aims to deliver. Offering 35 wines by the glass, 150 bottles, and 70 different types of whiskey, there’s something for everyone, no matter your taste buds.
Neimier describes Nosh as having a friendly, relaxed vibe with comfortable seating. Whether you’re meeting up with friends or family for a relaxing dinner or a quick bite before a concert, you’ll find what you’re looking for at Nosh.
3. Cellar44 Wine Bar
With its warm and inviting ambiance, Cellar44 Wine Bar offers a sophisticated yet relaxed atmosphere where patrons can unwind and savor a remarkable selection of handpicked wines from around the world. Owner Wendy Sutton-Millage shares that “the menu offers a wide range of wines and a food menu featuring charcuterie, signature snack items, and sliders.” On Thursday and Friday nights, Cellar44 comes alive with live music. It’s the perfect place to unwind, sip on your favorite wine, and let the music carry you away into an unforgettable night.
4. Bärchen Beer Garden
Bärchen Beer Garden stands out as a unique thing to do in Omaha for several reasons, including its unique Bavarian-inspired atmosphere with an American twist.
General manager Marc Emanuel shares that Bärchen has a selection of international beers and quality food. From the menu, Marc recommends trying a burger or chicken sandwich, stating they are “the best in town.” To have the whole experience, order a house-made pretzel or sausage that perfectly complements the diverse beer and cocktail offerings.
5. Dundee Dell
Dundee Dell is a cherished hidden gem in Omaha’s beautiful Dundee neighborhood. Originally founded as the Dundee Delicatessen in 1915, no shortage of history and heritage sets Dundee Dell apart. General manager Marc Emanuel says that their “must-try” menu item is their flavorful and crispy fish and chips, which has garnered a devoted following.
6. Sofra Creperie
Located in the Inner Rail Food Hall is Sofra Creperie, offering an authentic taste of European cuisine. Michel Thornhill, a web designer with Little Mountain Web Design, suggests trying the Mediterranean crepe, which boasts delicious flavors from cucumbers, tomatoes, kalamata olives, feta, bell peppers, spinach, and a secret sauce.
7. Tasty Pizza
Minutes from the University of Nebraska and Elmwood Park, discover a campus favorite, Tasty Pizza. Morgan Dorsey, the photographer for MTD Aerial Photography and the University of Nebraska alums, recommends trying the McKenna Macarena, a combination of buffalo chicken and pepperoncini. Tasty Pizza is a must-visit and will “satisfy even the most discerning pizza connoisseur,” says Dorsey.
8. Ollie the Trolley
Ollie the Trolley, an iconic symbol of Omaha, Nebraska, offers a unique way to explore the city’s charm and rich history. This charming, vintage-style trolley provides a nostalgic and picturesque journey through Omaha’s streets, allowing passengers to discover the city’s hidden gems and popular landmarks in comfort and style.
Director of Marketing, Deb Skinner, says Ollie the Trolley offers five public tours complemented with a bloody mary, margaritas, and lessons on the city’s rich history. Take in the sights and sounds on this relaxing tour, and if you’re looking for the perfect way to celebrate an event such as a bachelor or bachelorette party, look no further.
9. Lauritzen Gardens
Beyond the cornfields associated with Omaha, Nebraska, discover the 100-acre Lauritzen Gardens. This Omaha hidden gem offers over 15 unique gardens and exhibits.
Paul Jones of The Gardening Dad blog describes Lauritzen Gardens as a “tropical paradise to be enjoyed on a beautiful summer day or during a cabin-fever winter weekend.” Jones adds that the gardens offer refreshing yoga retreats, spectacular kid activities, educational photography, cocktail hours, and more.
10. Fontenelle Forest
For the occasional escape from the hustle and bustle of the city, look no further than Fontenelle Forest. Local real estate agent Ryan Renner shares that this hidden gem offers miles of walking trails, a raptor refuge, and a rope course. “Coming to Fontenelle Forest feels like you aren’t in the city anymore,” adds Renner.
11. Book Nook Bookstores
A list of unique things to do in Omaha would only be complete with an escape from reality within a book. To experience such, look no further than Book Nook Bookstores. This locally owned bookstore offers a myriad of books, games, movies, and collectibles. So stop in and discover your new favorite author amongst the sea of material.
Other than possible lender-imposed waiting periods after a mortgage loan closes, you can generally refinance your home as many times as you like. But you’ll want to do the math first.
Homeowners choose to refinance for a number of reasons: to lower monthly payments, take advantage of lower interest rates, get better terms, pay the loan off more quickly, or eliminate private mortgage insurance.
Refinancing involves paying off the current mortgage with a second loan that has (hopefully) better terms. Borrowers don’t have to stay with the same lender—it’s possible to shop around for the best deals.
Mortgage rates seem to be constantly in flux, moving mostly in parallel with the federal interest rate. In 2021, the average rate of a 30-year fixed mortgage was 2.96%. In 2022, as the Federal Reserve raised interest rates to try to tame inflation, mortgage rates began to rise and jumped to more than 7%. By mid-June 2023, the average rate of a 30-year fixed mortgage was 6.69%.
So is now the right time for you to refinance? Here are some things to consider before taking the plunge.
The Basics of Mortgage Refinancing
Because a homeowner who chooses to refinance is essentially taking out a new loan, the cost of acquiring the new loan must be compared with potential savings. It could take years to recoup the cost of refinancing.
As with the initial mortgage loan, a refinance requires a number of steps, including credit checks, underwriting, and possibly an appraisal.
Typically, however, many homeowners start with an online search for the rates they qualify for. (A lower average mortgage rate doesn’t necessarily translate to an individual offer—creditworthiness, debt-to-income ratio, income, and other factors similar to what’s required for an initial mortgage will matter.)
The secret sauce that makes up a mortgage refinance rate might seem like a mystery, but there are some common factors that can affect your offer:
• Credit score: As a general rule, higher credit scores translate to lower interest rates. A number of financial institutions and credit card companies will give account holders access to their credit scores for free, and a number of independent sites offer a free peek, too. • Loan term/type: Is the loan a 30-year fixed? A 15-year? Variable rate? The selected loan repayment terms are likely to affect the interest rate. • Down payment: A refinance doesn’t typically require cash upfront, as a first-time mortgage usually does, but any cash that can be put toward the value of a loan can help reduce payments. • Home value vs. loan amount: If a home loan is extra large (or extra small), interest rates could be higher. But generally speaking, the less the mortgage amount is compared with the value of the home, the lower the interest rates may be. • Points: Some refinance offers come with the option to take “points” in exchange for a lower interest rate. In simplest terms, points are discounts in the form of a fee that’s paid upfront in exchange for a lower interest rate. • Location, location, location: Where the property is physically located matters not only in its value but in the interest rate you might receive.
What Types of Refinance Loans Are Out There?
As with first-time home loans, consumers have a number of refinance mortgage options available to them. The two most common types involve either changing the terms of the original loan or taking out cash based on the home’s equity.
A rate-and-term refinance changes the interest rate, repayment term, or sometimes both at once. Homeowners might seek out this type of refinance loan when there’s a drop in interest rates, and it could save them money for both the short term and the life of the loan.
A cash-out refinance can also change the terms or interest rate, but it includes cash back to the homeowner based on the home’s equity.
Within those two basic types of refinance options, conventional mortgages from traditional lenders are the most common. But refinancing can also happen through a number of government programs.
Some, like USDA-backed loans , require the initial mortgage to be a part of the program as well, but others, such as the VA, have a VA-to-VA refinance loan called an interest rate reduction refinance loan and a non-VA loan to a VA-backed refinance , so it’s important to shop around to find the best option.
How Early Can I Refinance My Home?
If a home purchase comes with immediate equity—it was purchased as a foreclosure or short sale, for example—the temptation to cash out immediately with a refinance may be strong. The same could be true if interest rates fall dramatically soon after the ink is dry on a mortgage. Especially for conventional loans, it may be possible to refinance right away. Others may require a waiting period.
For example, there can be a six-month waiting period for a cash-out refinance. Or, refinancing via government programs like the FHA streamline refinance or VA’s interest rate reduction refinance loan can require waiting periods of 210 days.
Lenders can require a waiting period (also called a “seasoning period”) until they refinance their own loans for a number of reasons, including assurance insurance that the original loan is in good standing.
For a cash-out refinance, some lenders may also require that the home has at least 20% equity.
Questions to Ask Before You Refinance
Just because you can refinance doesn’t necessarily mean you should. First, ask yourself these questions.
What Is the Goal?
Identifying the endgame of a mortgage refinance can help determine whether now is the right time. If a lower monthly payment is the goal, it can be wise to play around with a refinance calculator to see just how much a lower interest rate will help.
For years, it has been a general rule that a refinance should lower the interest rate by at least 2 percentage points to be worth it. Some lenders believe 1 percentage point is still beneficial (each percentage point amounts to roughly $100 a month in payment reduction), but anything less than that and the savings could be eaten up by closing costs.
What Is the Total Repayment Amount?
It’s important to remember that a lower monthly payment—even if it’s significantly less—doesn’t necessarily equal savings in the long run.
If a mortgage with 20 years remaining is refinanced to lower the monthly payment, for example, the most affordable option could be a 30-year mortgage. But is the lower monthly payment worth it if you’ll be paying it off for 10 additional years?
Will I Need Cash to Close?
One of the biggest differences between a first-time mortgage and a refinance is the amount it costs to close the loan. Many times, closing costs for a refinance can be rolled into the loan, requiring no cash at the outset.
Closing costs typically come in at 2% to 5% of the loan amount, and although they can be rolled into the loan and paid off over time, that could mean the new monthly payment isn’t as low as planned.
One way to make sure the investment is worth the cost is to consider how long it would take you to reach the break-even point, which is when you recoup the costs of refinancing. For instance, if it takes you 24 months to reach the break-even point, and you plan on living in your home for at least that long, refinancing may make sense for you.
Considering refinancing your home? SoFi offers mortgage refinance loans with competitive interest rates.
Whenever you’re ready to refinance, SoFi is here to help.
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