Thinking about living in Greensboro? This cool North Carolina city is a solid spot to settle down. From community activities to economic opportunities, Greensboro has a lot to offer. That said,, as with any place, there are aspects that might not suit everyone. Let’s explore 13 of the most prominent pros and cons of living in Greensboro so you can make the best decision for you.
Greensboro at a glance
Walk Score: 29 | Bike Score: 32 Median Sale Price: $280,500 | Average Rent for 1-Bedroom Apartment: $1,112 Greensboro neighborhoods | Houses for rent in Greensboro | Apartments for rent in Greensboro | Homes for sale in Greensboro
1. Pro: Affordable cost of living
Greensboro’s cost of living is lower than the national average, making it more affordable than other cities. Houses tend to sell for below the national median of $432,849 and apartments in Greensboro follow a similar trend, going for $1,122 on average.
2. Con: Minimal public transportation options
Although Greensboro does have a bus system, the public transportation infrastructure is not as extensive as in larger North Carolina cities. Locals without a car may find it challenging to navigate the city or reach surrounding areas efficiently. The transit system covers main areas, but it can be lacking for daily commuters or spontaneous trips.
3. Pro: Thriving arts and scene
Living in Greensboro means easy access to arts, theater, and music. The city is home to several museums, like the Weatherspoon Art Museum, and live music venues like Hangar 1819. The historic Carolina Theatre hosts world-class performances, creating ample opportunities for residents to enjoy the local culture.
4. Con: Hot summers
While Greensboro may not be one of the hottest cities in the U.S., July and August often see consistent temperatures in the 90s. This makes outdoor activities less enjoyable during peak heat. The humidity can add to the discomfort, especially for those used to cooler climates.
5. Pro: Abundance of parks and outdoor activities
Greensboro is full of outdoor spaces and parks. The city boasts over 90 miles of trails and several large parks, including the popular Greensboro Arboretum and the Bog Garden. For those who love hiking, biking, or simply enjoying time outdoors, Greensboro is a fantastic place to be.
6. Con: Traffic on major highways
While Greensboro isn’t known for severe traffic like larger cities, congestion can build up on major highways, particularly during rush hour. I-40 and I-85, which run through the city, are prone to bottlenecks during peak commuting times. This can extend travel time, especially for those working outside the city.
7. Pro: Strong job market in healthcare and education
Greensboro’s economy is growing, with a particular emphasis on healthcare and education. The presence of major employers like Cone Health and the University of North Carolina at Greensboro provides job opportunities and bolsters the city’s reputation as one of the best college towns in North Carolina.
8. Con: Limited nightlife
Greensboro has a laid-back nightlife scene, which may not appeal to those seeking more of a party atmosphere. While there are a few bars, breweries, and lounges, the options are more limited compared to cities like Raleigh or Charlotte. This may be a drawback for younger folks or those looking for more excitement after dark.
9. Pro: Access to higher education
Greensboro is home to several higher education institutions, including the University of North Carolina at Greensboro and North Carolina A&T State University. These schools offer a range of programs and solidify Greensboro’s status as an elite North Carolina college town.
10. Con: Pollen and allergies
For people with seasonal allergies, living in Greensboro can be tough during spring and early fall. The city’s abundance of trees and plants means high pollen counts, which can trigger allergies. Residents with sensitivities may experience discomfort during these months, making it a consideration for those prone to extreme seasonal allergy reactions.
11. Pro: Central location in North Carolina
Greensboro’s location in central North Carolina makes it easy to travel to other parts of the state. Residents are within a few hours’ drive of the beaches to the east and the mountains to the west. This central location is perfect for weekend getaways or day trips to explore North Carolina’s stunning scenery and stellar small towns.
12. Con: Underwhelming shopping choices
While Greensboro has several malls and shopping centers, it lacks the high-end retail options that larger cities offer. For more upscale shopping, residents may have to visit friends living in Raleigh or Charlotte. This may be inconvenient for those looking for a wider variety of stores or luxury brands.
13. Pro: Growing food scene
Greensboro’s food scene is expanding, with a variety of restaurants serving everything from Southern comfort food to international cuisine. Local eateries, food trucks, and farmers markets are becoming increasingly popular. For foodies, Greensboro offers a surprising range of delicious options that cater to many tastes.
A native of the northern suburbs of Chicago, Carson made his way to the South to attend Wofford College where he received his BA in English. After working as a copywriter for a couple of boutique marketing agencies in South Carolina, he made the move to Atlanta and quickly joined the Rent. team as a content marketing coordinator. When he’s off the clock, you can find Carson reading in a park, hunting down a great cup of coffee or hanging out with his dogs.
When the housing market crashed in the early 2000s, new mortgage rules emerged to prevent a similar crisis in the future.
The Dodd-Frank Act gave us both the Ability-to-Repay Rule and the Qualified Mortgage Rule (ATR/QM Rule).
ATR requires creditors “to make a reasonable, good faith determination of a consumer’s ability to repay a residential mortgage loan according to its terms.”
While the QM rule affords lenders “certain protections from liability” if they originate loans that meet that definition.
If lenders make loans that don’t include risky features like interest-only, negative amortization, or balloon payments, they receive certain protections if the loans happen to go bad.
This led to most mortgages complying with the QM rule, and so-called non-QM loans with those outlawed features becoming much more fringe.
Another common feature in the early 2000s mortgage market that wasn’t outlawed, but became more restricted, was the prepayment penalty.
Given prepayment risk today, perhaps it could be reintroduced responsibly as an option to save homeowners money.
A Lot of Mortgages Used to Have Prepayment Penalties
In the early 2000s, it was very common to see a prepayment penalty attached to a home loan.
As the name suggests, homeowners were penalized if they paid off their loans ahead of schedule.
In the case of a hard prepay, they couldn’t refinance the mortgage or even sell the property during a certain timeframe, typically three years.
In the case of a soft prepay, they couldn’t refinance, but could openly sell whenever they wished without penalty.
This protected lenders from an early payoff, and ostensibly allowed them to offer a slightly lower mortgage rate to the consumer.
After all, there were some assurances that the borrower would likely keep the loan for a minimum period of time to avoid paying the penalty.
Speaking of, the penalty was often pretty steep, such as 80% of six months interest.
For example, a $400,000 loan amount with a 4.5% rate would result in about $9,000 in interest in six months, so 80% of that would be $7,200.
To avoid this steep penalty, homeowners would likely hang on to the loans until they were permitted to refinance/sell without incurring the charge.
The problem was prepays were often attached to adjustable-rate mortgages, some that adjusted as soon as six months after origination.
So you’d have a situation where a homeowner’s mortgage rate reset much higher and they were essentially stuck in the loan.
Long story short, lenders abused the prepayment penalty and made it a non-starter post-mortgage crisis.
New Rules for Prepayment Penalties
Today, it’s still possible for banks and mortgage lenders to attach prepayment penalties to mortgages, but there are strict rules in place.
As such, most lenders don’t bother applying them. First off, the loans must be Qualified Mortgages (QMs). So no risky features are permitted.
In addition, the loans must also be fixed-rate mortgages (no ARMs allowed) and they can’t be higher-priced loans (1.5 percentage points or more than the Average Prime Offer Rate).
The new rules also limit prepays to the first three years of the loan, and limits the fee to two percent of the outstanding balance prepaid during the first two years.
Or one percent of the outstanding balance prepaid during the third year of the loan.
Finally, the lender must also present the borrower with an alternative loan that doesn’t have a prepayment penalty so they can compare their options.
After all, if the difference were minimal, a consumer might not want that prepay attached to their loan to ensure maximum flexibility.
Simply put, this laundry list of rules has basically made prepayment penalties a thing of the past.
But now that mortgage rates have surged from their record lows, and could pull back a decent amount, an argument could be made to bring them back, in a responsible manner.
Could a Prepayment Penalty Save Borrowers Money Today?
Lately, mortgage rate spreads have been a big talking point because they’ve widened considerably.
Historically, they’ve hovered around 170 basis points above the 10-year bond yield. So if you wanted to track mortgage rates, you’d add the current 10-year yield plus 1.70%.
For example, today’s yield of around 4.20 added to 1.70% would equate to a 30-year fixed around 6%.
But because of recent volatility and uncertainty in the mortgage world, spreads are nearly 100 basis points (bps) higher.
In other words, that 6% rate might be closer to 7%, to account for things like mortgages being paid off early.
A lot of that comes down to prepayment risk, as seen in the chart above from Rick Palacios Jr., Director of Research at John Burns Consulting.
Long story short, a lot of homeowners (and lenders and MBS investors) expect rates to come down, despite being relatively high at the moment.
This means the mortgages originated today won’t last long and paying a premium for them doesn’t make sense if they get paid off months later.
To alleviate this concern, lenders could reintroduce prepayment penalties and lower their mortgage rates in the process. Perhaps that rate could be 6.5% instead of 7%.
In the end, a borrower would receive a lower interest rate and that would also reduce the likelihood of early repayment.
Both because of the penalty imposed and because they’d have a lower interest rate, making a refinance less likely unless rates dropped even further.
Of course, they’d need to be implemented responsibly, and perhaps only offered for the first year of the loan, maybe two, to avoid becoming traps for homeowners again.
But this could be one way to give lenders and MBS investors some assurances and borrowers a slightly better rate.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
If you’ve been paying attention, you may have noticed that mortgage rates have quietly crept back up to nearly 7%.
While it appeared that those 7% mortgage rates were a thing of the past, they seemed to return just as quickly as they disappeared.
For reference, the 30-year fixed averaged around 8% a year ago, before beginning its descent to nearly 6% in early September.
It appeared we were destined for 5% rates again, then the Fed rate cut happened. While the Fed itself didn’t “do anything,” their pivot coincided with some positive economic reports.
Combined with a “sell the news” event of the Fed cut itself, rates skyrocketed. However, now might be a good time to remind you that rates do tend to fall for a while after rate cuts begin.
Falling Rates Often Play Out Over Years, Not Months
As noted, the Fed pivoted, aka lowered its own fed funds rate, in September. They did so after increasing their rate 11 times during a period of tightening.
Hence the word “pivot,” as they switch from raising rates to lowering rates.
In short, the Fed determined monetary policy was sufficiently restrictive, and it was time to loosen things up. This tends to result in lower borrowing rates over time.
While many falsely assumed the pivot would lead to even lower mortgage rates overnight, those “in the know” knew those cuts were mostly already baked in, at least for now.
So when the Fed cut, mortgage rates actually drifted a little higher, though not by much. The real move higher post-cut came after a better-than-expected jobs report.
Lately, unemployment has taken center stage, and a strong labor report tends to point to a resilient economy, which in turn increases bond yields.
And since mortgage rates track the 10-year bond yield really well, we saw the 30-year fixed jump higher.
After nearly hitting the high-5s in early September, it completely reversed course and is now knocking on the 7% door again.
How is this possible? I thought the high rates were behind us. Well, as I wrote earlier this month, mortgage rates don’t move in a straight line up or down.
They can fall while they are rising, and climb when they are falling. For example, there were times when they moved down an entire percentage point during their ascent in 2022.
So why is it now surprising that they wouldn’t do the same thing when falling? It shouldn’t be if you zoom out a little, but most can’t stay the course and contain their emotions from dramatic moves like this.
It Can Take Three Years for Mortgage Rates to Move Lower After a Fed Pivot
WisdomTree Head of Equities Jeff Weniger crafted a really interesting chart recently that looked at how long mortgage rates tend to fall after the prime rate starts falling.
He graphed six instances when rates came down from 1981 through 2020 after prime was lowered. And each time, other than in 1981, it took at least two years for rates to hit their cycle bottom.
If we combine all those falling mortgage rate periods and use the average, it took 38 months for them to move from peak to trough.
In other words, more than three years for rates to hit their lowest point after an initial Fed cut.
As it stands now, we are only a month into the prime rate falling. But it’s important to note that rates had already fallen from around 8% a year ago.
They’ve now drifted back up to around 6.875%, and it’s unclear if they’ll continue to move higher before coming down again.
But the takeaway for me, in agreeing with Weniger, is that we remain in a falling rate environment.
Even if 30-year fixed rates hit 7% again, it’s lower highs over time as rates continue to descend.
Meaning we saw 8% in October, 7.5% in April, and perhaps we’ll see 7% this month. But that’s still a .50% lower rate each time.
The next stop could be 6.5% again, then 6%, then 5.5%. However, it won’t be a straight line down.
Still, it’s important to pay attention to the longer-term trend, instead of getting caught up in the day-to-day movement.
Mortgage Lenders Take Their Time Lowering Rates!
I’ve said this before and I’ll say it again for the umpteenth time.
Mortgage lenders will always take their sweet time lowering rates, but won’t hesitate at all when raising them.
From their perspective, it makes perfect sense. Why would they stick their neck out unnecessarily? Might as well slow play the lower rates if they’re not sure where they’ll go next.
As a lender, if you’re at all fearful rates will get worse, it’s best to price it in ahead of time to avoid getting caught out.
That’s likely what is happening now. Lenders are being defensive as usual and raising their rates in an uncertain economic environment.
If and when they see softer economic data and/or higher unemployment numbers, they’ll begin lowering rates again.
But they’ll never be in any rush to do so. Conversely, even a single positive economic report, such as the jobs report that got us into this situation, will be enough for them to raise rates.
In other words, we might need multiple soft economic reports to see mortgage rates move meaningfully lower, but just one for them to bounce higher.
So if you’re waiting for lower mortgage rates, be patient. They’ll likely come, just not as quickly as you’d expect.
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do. You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to…
Do you want to learn how to get paid to shop? It’s possible! Many companies and apps now give you ways to get paid for shopping that you might already do.
You can make extra cash by grocery shopping, buying clothes, or even just browsing stores. These opportunities range from being a personal shopper to taking surveys about products you buy. Some options let you shop for yourself, while others involve shopping for other people. It’s a fun way to earn money doing something you enjoy.
Over the years, I’ve found that there are so many ways to make money while shopping, and it’s been a great side hustle for me. From getting paid to shop for others to earning cash back on my own purchases, it’s an easy and enjoyable way to bring in extra income.
How To Get Paid To Shop
Below are the best ways to get paid to shop.
1. Personal shopper
Personal shoppers help people buy things. They pick out clothes, gifts, and other items for clients, so this can be a fun way to get paid for shopping.
To become a personal shopper, you need good taste and people skills. You should enjoy fashion and keeping up with trends.
Many personal shoppers work in person in retail stores, but you can also get paid to shop online for others. They help customers find outfits and accessories. Some work for wealthy clients, buying everything from groceries to designer clothes.
You can start by getting a job at a department store and looking for positions in personal shopping or styling. Another option is to work for yourself and you can find clients through word-of-mouth or online platforms.
When I was younger, I had a friend who was a personal shopper for a family. My friend mainly did their grocery shopping and ran errands, but would occasionally buy gifts for when the family was attending a birthday party or a wedding.
2. BestMark
I’ve done a lot of mystery shopping over the years, and it’s been a fun way to earn extra money while doing something I already enjoy. Whether it’s evaluating a store’s customer service, trying out new products, or going to a restaurant, it’s pretty easy work.
BestMark is a top mystery shopping company that’s been around since 1986.
As a BestMark shopper, you’ll visit stores, restaurants, and other businesses. You’ll act like a regular customer and evaluate your experience, and this might include checking product quality, service speed, and staff friendliness.
After your visit, you’ll fill out a detailed report online. BestMark gives you a list to help you understand what to look for during your shop.
The pay for BestMark shops varies, but you can tend to earn between $10 and $20 per task. For most assignments, you will get your meal or whatever you buy reimbursed. They usually give you a limit on what you can spend or they specifically tell you what to buy.
Recommended reading: 9 Best Mystery Shopping Companies To Work For
3. Swagbucks
Swagbucks is a popular website that pays you to shop online, and it’s free to join and easy to use.
I’ve been using Swagbucks for almost 10 years now, and I think it’s pretty easy to earn points.
To get paid to shop with Swagbucks, there are two main ways to earn points:
Earn cash back when shopping online. For example, right now you can get up to 8% cash back when shopping at Macy’s, up to 4% when shopping on Amazon, up to 10% when shopping at Best Buy, and more.
Earn points (SB) by submitting your shopping receipts. You can submit any receipt that you have from the last 14 days – both in-store and online receipts. You can then earn points. For example, you can get 50 points for any loaf of bread that you buy, 50 points for any bananas, 900 points for diapers, and more.
When you’ve collected enough SB, you can trade them for gift cards. You can pick from lots of popular stores. If you prefer cash, you can get money sent to your PayPal account instead.
I’ve redeemed over 100 gift cards from Swagbucks over the years, and I love how easy this rewards site is to use.
If you join Swagbucks through my referral link, you will receive a $10 bonus.
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Swagbucks is a site where you can earn points for answering surveys, shopping online, watching videos, using coupons, and more. You can use your points for gift cards and cash.
4. Rakuten
Rakuten is a popular way to earn cash back when you shop online. It’s free to use and super easy to get started.
I have used Rakuten for years and it’s an easy way to get cash back for the online shopping that you already do. In fact, I just used it on a hotel booking, and I received 2% back, which adds up quickly for a hotel!
You just sign up for an account on Rakuten’s website or app. Then when you want to buy something, go through Rakuten first. They’ll send you to the store’s site to shop like normal.
After you make a purchase, Rakuten adds cash back to your account. The amount varies by store, but it’s often 1% to 10% of what you spend. Some stores even pay you 20% or more during special sales.
You can get paid by check or PayPal. Rakuten sends out payments every 3 months and you need at least $5 in your account to get paid.
So, why does Rakuten give you this cash back? Rakuten makes money by getting a commission from stores when you buy stuff. They share part of that commission with you as cash back.
Please click here to sign up for Rakuten. Plus, you can get a $30 bonus when you spend $30 if you join right now (at the time of this writing; please double-check the current offer).
5. Stitch Fix stylist
Want to get paid to shop for others? Becoming a Stitch Fix stylist might be perfect for you. This job lets you work from home and help people look their best.
Stitch Fix hires stylists for women’s, men’s, and kids’ styling. They even train you, so you can start with no experience.
As a Stitch Fix stylist, you’ll pick out clothes for customers based on their likes and needs. You’ll use a computer to see what items are available and choose the best ones for each person.
6. Instacart shopper
Becoming an Instacart shopper is a way to make money grocery shopping on your own schedule.
As an Instacart shopper, you’ll pick up and deliver groceries to customers. Instacart has full-service shoppers, where you shop and deliver groceries, as well as in-store shoppers, where you only shop in-store but don’t deliver (someone else picks up the items and delivers).
To start, you need to be at least 18 years old. You’ll also need a smartphone to use the Instacart app as this app tells you what to buy at the grocery store and where to deliver it.
Instacart gives you a payment card to use at stores. You’ll get this card about a week after signing up. You use it to pay for the groceries you’re buying for customers.
Recommended reading: Instacart Shopper Review: How much do Instacart Shoppers earn?
7. Shopkick
Shopkick is a free app that lets you earn rewards for shopping. You can get points called “kicks” for different activities. These include scanning products in stores and uploading receipts.
You don’t even need to buy anything to earn kicks. Just walking into certain stores can give you points. The app works with many popular retailers like Target and CVS.
As you collect kicks, you can trade them for gift cards.
To start, just download the Shopkick app on your phone. Then link your credit or debit cards to your account, because this lets you earn kicks automatically when you shop at partner stores.
8. Ibotta
Ibotta is a free app where you can earn cash back on your everyday purchases. It works for both online and in-store shopping at many popular retailers.
To get started, download the Ibotta app on your phone. Before you shop, browse the app for “offers” at your favorite stores. You’ll see cash back deals on specific items or entire purchases.
When shopping in stores, buy the items with offers (of course, make sure these are items that you actually want to buy because the item is not free, it is simply more like getting a discount). Then, take a picture of your receipt with the app when you are done. Ibotta will match your purchases to the offers and add cash back to your account.
For online shopping, start your purchase through the Ibotta app or website. Shop as usual, and you’ll automatically earn cash back on qualifying items.
Ibotta works with many big stores like Walmart, Target, and Kroger.
Once you reach $20 in your account, you can cash out via PayPal or choose a gift card. It’s a simple way to make your shopping more rewarding.
This app is available for both Android and iOS (iPhone).
You can sign up for Ibotta here.
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Ibotta is an app where you can get cash back and earn free gift cards. Simply submit your receipts on your everyday purchases with your phone.
9. Ath Power Consulting
Ath Power Consulting is a company where you can get paid to do mystery shopping. They have a huge network of over 600,000 shoppers across North America.
Ath Power does more than 10,000 mystery shops each month. They work with many well-known brands and companies around the world.
Ath Power mystery shoppers shop in person for companies, and then share their thoughts about the products and services they try. Companies can then use this information to improve what they sell to customers.
10. IntelliShop
IntelliShop is a company that hires for mystery shopping jobs. You can sign up to become a secret shopper and get paid to visit stores.
Most tasks pay between $5 and $20. They usually take less than 15 minutes in the store, and then after your visit, you’ll need to fill out a report.
IntelliShop has jobs in stores, online, and over the phone.
As a mystery shopper for any of the mystery shopping companies on this list, please remember to keep any receipts or business cards from your visit. You’ll need these to prove you completed the task and get paid.
Recommended reading: How To Become A Mystery Shopper
11. Care.com
Care.com is a site where you can earn money by helping others with tasks like grocery shopping. You can sign up as a helper on their platform to find local gigs.
The site connects you with people who need assistance, such as parents and seniors. You might help with grocery shopping, cooking, or other errands.
As a helper on Care.com, you can set your own rates. Some helpers charge between $15 and $25 per hour. The amount that you decide you want to get paid may vary based on your experience and the tasks you do.
You may be able to find enough gigs to make this a full-time career, or you can also do this part-time in your spare time.
12. Capital One Shopping
Capital One Shopping is a free tool that can help you save money when you shop online. It’s a browser extension and mobile app that works in the background while you browse.
When you’re ready to check out, Capital One Shopping searches for coupon codes automatically and it tries to apply them to your order to get you the best deal.
The tool also compares prices across different websites. This can help you find the lowest price for items you want to buy.
You can earn rewards called Shopping Credits when you make purchases through Capital One Shopping. These credits can be redeemed for gift cards to popular stores.
While you won’t get paid directly to shop, you can save money and earn rewards. This can add up to significant savings over time and even free gift cards.
I recently received a $71 gift card for simply using the Capital One Shopping browser extension, which was super easy to get.
You can learn more at Capital One Shopping Review: Is It Worth It?
13. Fetch Rewards
Fetch Rewards is a free app that lets you earn points for shopping. You can get points by scanning any receipt or shopping online through the app.
I use Fetch Rewards for nearly all of my grocery shopping receipts. What I like about Fetch is that you don’t need to clip coupons or look for special offers. You just buy products and scan your receipts when you are done. It takes less than one minute to scan your receipt and earn points, so it is very easy.
Fetch gives you points for every receipt you upload. You can earn extra points by buying specific brands or products. The app has special offers where you can earn extra points, such as for buying a specific brand of cheese.
You can turn your points into gift cards from many stores and restaurants. Some options include Amazon, Target, and Starbucks.
You can sign up for Fetch Rewards here.
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With this app, you can scan your grocery receipts (from any grocery store or wholesale club, any time) and earn free gift cards. It is free to sign up and easy to use.
14. Uber Eats
With Uber Eats, you can make money by delivering food.
To get started, you’ll need to create an account and fill out some forms. Once approved, you can begin accepting delivery requests through the Uber app.
Uber Eats drivers can earn around $15 to $26 per hour on average. Your earnings can vary based on factors like your location, how busy it is, and the amount that you earn in tips.
You will want a reliable vehicle and a valid driver’s license, of course, for this side gig.
Recommended reading: 14 Ways To Make Money Driving
15. DoorDash
DoorDash is another way to get paid for delivering food.
DoorDash pays Dashers weekly through direct deposit. If you need money faster, DoorDash offers a Fast Pay option. This lets you cash out your earnings right away for a small fee.
Remember, you’re responsible for your own expenses like gas and car maintenance. It’s a good idea to track these costs to see how much you’re really earning.
16. Taskrabbit
Taskrabbit is an app that lets you make money by doing odd jobs for people in your area. You can pick tasks that fit your skills and schedule.
Some popular jobs on Taskrabbit include cleaning houses, assembling furniture, and running errands (such as shopping for others).
Taskrabbit gives you the flexibility to choose when and how much you work, as well as the type of work that you want to do.
17. Walmart personal shopper
You can get paid to shop as a Walmart personal shopper. This job lets you pick out items for customers who order online.
You’ve probably seen Walmart personal shoppers when you’ve been in Walmart. They work for Walmart and typically have a uniform and a very large basket where they collect items for different orders.
Walmart personal shoppers earn about $15 per hour on average.
Most personal shoppers work full-time or nearly full-time, between 32 to 40 hours a week.
As a personal shopper, you’ll walk around the store and find items customers want. You’ll need to be quick and careful to pick the right products.
Frequently Asked Questions
Getting paid to shop can be a fun way to earn extra money. There are different methods like using apps, shopping for others, and being a mystery shopper. Here are answers to common questions about how to get paid to shop.
How to get paid to go shopping?
You can get paid to shop by using cash back apps, becoming a personal shopper, or doing mystery shopping. Cash back apps give you money back on purchases. Personal shoppers buy things for busy people. Mystery shoppers check stores and fill out shopping assignments on their customer experience.
What are the top apps that pay you for shopping?
Some popular apps that pay you for shopping are:
Rakuten: Gives cash back on online purchases
Ibotta: Pays rebates on groceries and other items
Shopkick: Rewards you for scanning items in stores
Fetch Rewards: Gives points for uploading grocery receipts
These apps are free to use and can help you save money on things you already buy.
How can I earn cash by doing grocery shopping for others?
You can earn cash by grocery shopping for others through apps like Instacart or Shipt. Sign up as a shopper, get orders from customers, and deliver their groceries. You’ll get paid for each order you complete.
How much money do people usually make by delivering groceries?
The amount of money you can make by delivering groceries varies. Most shoppers make between $10 and $25 per hour, and your pay depends on factors like the number of orders you complete, the size of the orders, tips from customers, and time of day and demand.
Is being a secret shopper a good side hustle?
Secret shopping can be a good side hustle. It lets you earn money while shopping and dining out, but it’s not a full-time job. I have done a lot of mystery shopping assignments over the years.
What ways to get paid to shop on Amazon are there?
You can get paid to shop on Amazon in a few ways:
Use cash back sites like Rakuten when shopping on Amazon
Join Amazon’s Vine program to review products
Sell items on Amazon as a third-party seller
Sign up for the Amazon Associates Program to earn from product links
These methods can help you save money or earn extra cash while shopping on Amazon.
Best Ways To Get Paid To Shop – Summary
I hope you enjoyed my article on how to get paid to shop.
Getting paid to shop is a fun and easy way to make extra money while doing things you already like. I have been getting paid to shop for over 10 years now, and I have done almost everything on this list. While I’ve not earned a full-time income doing anything on this list, I have earned side income and plenty of free gift cards over the years.
You can use cash back apps or become a personal shopper to earn cash. You can make money buying groceries, clothes, or even taking surveys about your shopping habits.
Mystery shopping is another way to earn money by pretending to be a regular customer and reporting your feedback on your experience. Companies like BestMark and IntelliShop pay for this. Apps like Swagbucks and Fetch Rewards make it easy to earn by scanning receipts or shopping online.
Whether you want a side hustle or just want to save money, getting paid to shop is a fun way to make more money.
Negative working capital is when a company’s current liabilities are greater than its current assets. Current liabilities are those that are due in less than 12 months. Current assets are those that can turn into cash in less than 12 months.
It’s easy to think that companies with negative net working capital would be at financial risk, but that’s not necessarily the case. There are many situations where having occasional and controlled negative working capital can actually work in a business’s favor.
Read on for an in-depth look at what it means to have negative working capital, when it can happen, and whether it’s a good or bad thing for your small business.
Key Points
• Negative working capital occurs when a company’s current liabilities exceed its current assets, indicating potential cash flow challenges.
• Businesses like supermarkets and restaurants often have negative working capital due to fast inventory turnover and delayed payments to suppliers.
• Negative working capital can, however, signal a risk of not meeting short-term obligations, potentially leading to financial strain.
• Some companies use negative working capital strategically to free up cash by delaying payments to suppliers.
• If your small business is struggling with working capital, you can take out a working capital loan or business line of credit to help meet short-term obligations.
What Is Negative Working Capital?
Working capital is the difference between a business’s current assets and current liabilities.
Working Capital = Current Assets – Current Liabilities
A current asset is an asset that can be easily converted to cash within a year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, prepaid liabilities, and other liquid assets. A current liability is any debt that is expected to be repaid within a year. Current liabilities include obligations such as accounts payable and amounts due to suppliers, employee wages, and payroll tax withholding.
Ideally, current assets should be greater than current liabilities but for many businesses, that’s not always the case.
Negative working capital is when a company’s current liabilities are greater than its current assets, as stated on the firm’s balance sheet. While that may sound like a risky proposition, some businesses are able to dip into periods of negative working capital without any ill effects.
Negative working capital commonly arises when a business generates cash very quickly because it can sell products to its customers before it has to pay the bills to its vendors for the original goods or raw materials. It then uses that cash to purchase more inventory or expedite growth in other ways. By doing this, the company is effectively using the vendor’s money as an interest-free loan. The firm still has an outstanding liability, however, which means it can end up with negative working capital.
Positive Working Capital
Positive working capital is when a company’s current assets exceed its current liabilities. It’s the opposite of negative working capital and is usually a good position for a company to be in. Positive working capital means your business will be able to fulfill its financial obligations in the coming year and still have cash leftover to deal with any market disruptions (or other challenges) and/or invest in growth.
In order to be approved for a small business loan, businesses usually need to have a positive working capital, since many loans require assets as collateral. If the business is upside down on its debts vs. its assets, it may have trouble getting approved. However, working capital is one of many factors that lenders look at when approving loans.
Is it possible to have too much positive working capital? Yes. If assets are sitting somewhere and not helping the business grow and generate further revenue, then it’s possible they could be better used elsewhere to fuel the company’s next phase of development. To be competitive in today’s market, leveraging growth for healthy, steady business expansion is often essential.
Zero Working Capital
Zero working capital is when a company’s current assets are the same amount as its current liabilities. Having zero working capital can be a good sign, suggesting that the company is managing its resources effectively, maintaining just enough liquidity to cover its short-term obligations without tying up excess capital in non-productive assets.
However, having zero working capital can also signify that the company is operating on thin margins and doesn’t have much room for error. If unexpected expenses arise or if there’s a downturn in sales, the company could face liquidity problems.
Sometimes, a company might intentionally maintain zero working capital for a short period, perhaps to finance a specific project or investment. However, this is typically not a sustainable long-term strategy.
How to Calculate Negative Working Capital
Negative working capital is calculated by subtracting current liabilities from current assets. If liabilities exceed assets, the result is negative working capital. The formula is the same as the formula for working capital, with the end result being negative:
Negative Working Capital = Current Assets – Current Liabilities
Here’s a negative working capital example:
A gaming retailer buys $1.5 million worth of the latest console directly from the manufacturer. It sells every console within the first day, but doesn’t have to pay its bill for the next 45 days. So it uses this influx of cash to buy more consoles and further increase revenues. In this case, negative working capital works because sales are growing. As a result, this retailer should not have trouble meeting its short-term financial obligations as they become due.
Recommended: How to Calculate Cash Flow
How Negative Working Capital Arises
While negative working capital might seem alarming, there are situations where it can be a strategic choice or a temporary condition. Here’s a look at some reasons why a company might have negative working capital.
• Industry norms: Some industries naturally operate with negative working capital due to their business models. For example, retail businesses often collect cash from customers before paying suppliers for inventory. This allows them to operate with negative working capital, using suppliers’ credit to finance their operations.
• Rapid growth: A company experiencing rapid growth might have negative working capital because it’s investing heavily in inventory and receivables to support increased sales. While this can strain short-term liquidity, it’s often seen as a sign of expansion and can be managed if the growth trajectory is sustainable.
• Seasonal variation: Businesses that experience seasonal fluctuations in sales may have negative working capital during slow periods when they build up inventory and receivables in anticipation of higher demand.
• Efficiency goals: In some cases, companies deliberately manage their working capital to optimize efficiency. They may prioritize cash flow by delaying payments to suppliers or accelerating the collection of receivables, even if it results in negative working capital on their balance sheet.
When Is Negative Working Capital Good vs Bad?
As mentioned, negative working capital can either be good or bad. Let’s take a closer look at why.
Good Negative Working Capital
Negative working capital can be a good thing when companies are able to sell their inventory faster than their suppliers expect payment. This cash surplus allows the company to purchase more inventory or spur growth in other ways. In this scenario, the vendor is essentially financing part of the company’s operating and investment expenses — similar to a zero-interest loan.
Negative working capital can also provide a company with greater flexibility and agility to respond to changing market conditions or unexpected expenses, while also allowing it to take advantage of growth opportunities as they arise.
Recommended: Business Loan vs Personal Loan: Which Is Right for You?
Bad Negative Working Capital
As soon as a company is unable to pay its operational costs or suppliers on time, negative working capital can shift from good to bad. Even if a company may have utilized negative working capital in the past without issues, a hiccup in sales can hurt operations fast. Negative working capital leaves a company with minimal cushion to absorb the unexpected.
If a business must constantly delay payments to vendors and suppliers, it could strain relationships with those partners. Over time, suppliers may become reluctant to extend credit or offer favorable terms, which could affect a company’s ability to secure necessary goods and services.
Recommended: 15 Types of Business Loans to Consider
Which Industries Typically Have Higher Negative Capital?
Companies with rapid turnover of inventory or services and make their money through cash often have negative working capital. This includes large food stores, retailers, fast food restaurants, service-oriented business, e-commerce companies, and software companies.
Strategies for Dealing With Negative Working Capital
To stay on top of negative working capital, business owners may want to:
1. Fully understand the flow of cash within your company. Using a business balance sheet to track income and expenses can help you pinpoint money issues that could contribute to negative working capital.
2. Keep track of account receivables.
3. Analyze how long it takes to completely sell through inventory batches.
4. Optimize billing cycles to space out expenses to match estimated sales.
Recommended: How Much Does it Cost to Start a Business?
The Takeaway
Negative working capital is a state in which a company’s current liabilities exceed its current assets. Negative net working capital is fine as long as a company is able to pay its operational expenses and suppliers on time. If it is unable to do so, however, its long-term financial health may be in jeopardy.
While negative working capital can offer certain advantages in terms of cash flow management and flexibility, it’s essential for companies to carefully monitor and manage their working capital levels to avoid potential pitfalls and maintain financial stability.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What does negative working capital indicate?
Negative working capital can indicate a business has a high inventory turnover, meaning it’s able to sell off inventory before any amount is owed to the supplier. On the other hand, it can also mean that the business is having difficulty receiving on-time payments from its customers.
Is negative working capital typically a bad thing to have?
Not necessarily. Businesses in retail or fast-moving consumer goods often operate with negative working capital because they receive payment from customers before paying their suppliers. However, negative working capital can also signify liquidity issues, financial distress, or strained supplier relationships if the company is unable to meet its short-term obligations.
Can working capital being too high be a problem?
Yes. High working capital often means that a significant portion of the company’s assets is tied up in short-term assets like cash, accounts receivable, and inventory. If these assets are not being efficiently utilized, it can lead to lower returns on investment and reduced profitability.
Photo credit: iStock/designer491
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
A trade credit is a business-to-business (B2B) transaction where one business is able to procure goods or services from the other without immediately paying for them. It’s called a trade credit because when a seller allows a buyer to pay for goods or services at a later date, they are extending credit to the buyer.
Trade credit can be a great tool for a small business that can free up cash flow and grow a company’s assets. However, there are some drawbacks, including a short financing window and potentially high interest if you need to extend that window.
Here’s what every small business needs to know about trade credit.
Key Points
• Trade credit is a short-term financing arrangement where a supplier allows a business to purchase goods or services and pay at a later date, typically within 30 to 120 days.
• It helps businesses maintain cash flow by deferring payments, allowing them to use available funds for other operational needs.
• Trade credit generally does not carry interest if paid within the agreed-upon terms, making it a cost-effective financing option.
• Strong trade credit terms can enhance relationships with suppliers, encouraging future collaborations.
• Delayed payments may result in penalties or strained relationships with suppliers.
How Does Trade Credit Work?
Trade credit is a formal name for a common agreement between two companies where one company is able to purchase goods from the other without paying any cash until an agreed upon date. You can think of trade credit the same way as 0% financing, but with shorter terms. Sometimes trade credit is also referred to as vendor financing.
Sellers that grant their customers trade credit generally give them anywhere between 30 and 120 days to pay for the goods or services they received on credit. The range, however, can be higher or lower depending on the industry and individual seller.
Often, the seller will offer the buyer a discount if they settle their account earlier than the balance due date. If they do offer a discount, the terms of the trade credit sale are usually written in specific format. For example, if the seller offers a 5% discount if the invoice is paid within 20 days, but is willing to give the buyer a maximum of 45 days to pay the invoice, that agreement would be written as:
5/20, net 45.
If the buyer is unable to pay their invoice within the set time period (which is 45 days in the above example), the vendor will typically charge interest. If that happens, trade credit is no longer an interest-free form of financing.
Recommended: 15 Types of Business Loans to Consider
Common Terms
Common terms used in trade credit include:
• Net terms: This specifies the number of days the buyer has to pay the invoice, such as “Net 30” or “Net 60,” meaning payment is due within 30 or 60 days.
• Discount terms: Offers a discount for early payment, like “2/10, Net 30,” meaning a 2% discount is available if paid within 10 days.
• Credit limit: The maximum amount a supplier allows a buyer to purchase on credit at one time.
• Invoice: A detailed bill issued by the supplier outlining goods or services provided and the payment due.
• Grace period: The extra time allowed beyond the due date to settle the account without incurring penalties.
Types of Trade Credit
The three main types of trade credit include:
1. Open Account: The most common form, where the supplier delivers goods or services and the buyer agrees to pay by a specified date, usually 30 to 120 days later.
2. Promissory Note: A formal written agreement where the buyer promises to pay the supplier by a certain date, often used when open accounts are not available.
3. Trade Acceptance: The buyer signs a formal agreement accepting the supplier’s terms and acknowledging their obligation to pay at a future date. Trade acceptance is sometimes used for larger or international transactions.
Who Uses Trade Credit?
Business trade credit is very common in the B2B ecosystem. Businesses that use trade credit include:
• Accountants/bookkeepers
• Advertising/marketing agencies
• Construction/landscaping companies
• Food suppliers
• Restaurants
• Manufacturers
• Wholesalers
• Retailers
• Cleaning services
Pros and Cons of Trade Credit
Pros and Cons of Trade Credit for Buyers
Pros of trade credit for buyers include:
• Frees up cash: Because payment is not due until later, trade credits improve the cash flow of businesses, enabling them to sell goods they acquired without having to pay for those goods until a future date. It can be a good option for companies expanding into a new market or that have seasonal peaks and dips.
• Possible discount: Depending on the trade credit agreement, if the buyer pays the invoice within a certain amount of time, they may receive a discount on the goods or services they purchase.
• 0% interest: The cost of capital can be a burden on some small businesses. If the buyer can settle the invoice within the agreed upon time frame, there is no interest charged on this type of financing.
Cons of buyers using trade credit include:
• Short payment period: The length of the trade credit payment term varies, but they are often 120 days or less, which is shorter than most types of small business loans. For a growing small business, this may not be enough time. Companies that need a longer repayment period may want to look into other types of debt instruments.
• It’s easy to over-commit: With discounts and wholesale prices, it can be tempting to buy too much of a particular good. Not only does this create excess inventory, but it also creates a bigger debt obligation.
• Possible penalties for late payments: Depending on the trade credit agreement, there may be negative consequences for late payments, such as interest or a fine. In addition, the company might report your late payment to the credit bureaus, which could damage your business’s credit score.
Recommended: Getting a Cash Flow Loan for Your Small Business
Pros and Cons of Trade Credit for Sellers
Pros of using trade credit for sellers include:
• Beat out competitors: Companies offering trade credit may be able to gain an advantage over industry peers that don’t offer trade credit. Because it can be difficult for some small businesses to get a bank loan, they may seek out suppliers offering trade credit.
• Develop a strong relationship with clients: Offering trade credit increases customer satisfaction, which can lead to customer loyalty and repeat business.
• Increase sales: Trade credits are still sales even if payment is delayed. Trade credit can also encourage customers to purchase in higher volumes, since there is no cost to the financing. Therefore, a trade credit can provide the opportunity for growth and expansion.
Cons of trade credit for sellers include:
• Delayed revenue: If your business has plenty of cash, this may not be an issue. However, if budgets are tight, delayed revenue could make it difficult to cover your operating costs.
• Risk of buyer default: Sometimes customers are unable to pay their debts. Depending on the trade credit agreement, there may be little to nothing the seller can do other than sell the debt to a collection agency at a fraction of the cost of the goods provided.
• Less profit with early payment discounts: If the seller offers a discount for early payment, they will earn less on the sale than they otherwise would.
Recommended: Understanding Business Liabilities
Trade Credit Accounting
Trade credit needs to be accounted for by both buyers and sellers. The process, however, will vary depending on the company’s accounting method — specifically, whether they use accrual vs cash accounting.
With accrual accounting (which is used by all public companies), revenue and expenses are recorded at the moment of transaction, not when money actually changes hands. With cash accounting, on the other hand, a business records transactions at the time of making payments.
A seller who offers trade credits and uses accrual accounting can face some complexities if the buyer ends up paying early and getting a discount or defaulting (and never paying). In this case, the amount received doesn’t match their account receivables and the difference becomes an account receivable write-off, or liability that must get expensed.
Trade Credit Instruments
Typically, the only formal document used for trade credit agreements is the invoice, which is sent with the goods, and that the customer signs as evidence that the goods have been received. If the seller doubts the buyer’s ability to pay in the allotted time, there are credit instruments they can use to guarantee payment.
Promissory Note
A promissory note, or IOU, is a legal document where the borrower agrees to pay the lender a certain amount by a set date. While it’s usually used for repaying borrowed money, it can also be used to pay for goods or services.
Commercial Draft
One hitch with a promissory note is that it is typically signed after delivery of the goods. If a seller wants to get a credit commitment from a buyer before the goods are delivered, they may want to use a commercial draft.
A commercial draft typically specifies what amount needs to be paid by what date. It is then sent to the buyer’s bank along with the shipping invoices. The bank then asks the buyer to sign the draft before turning over the invoices. After that, the goods are shipped to the buyer.
Banker’s Acceptance
In some cases, a seller might go even further than a commercial draft and require that the bank pay for the goods and then collect the money from the customer. If the bank agrees to do this, they must put it in writing — which is called a banker’s acceptance. It means that the banker accepts responsibility for payment.
Trade Credit Trends
Trade credit is widely used worldwide. In fact, the World Trade Organization estimates that 80% to 90% of all world trade relies on trade credit in some capacity. It’s so widespread that it’s given rise to a type of financing called accounts receivable financing (also known as invoice financing).
With invoice financing, a company that offers trade credit can get a loan based on their outstanding invoices, effectively enabling them to get paid early. When they receive payments from their customers, they give that money (plus a fee) to the financing company.
Recommended: Understanding Business Liabilities
The Takeaway
Trade credit in business is very common and occurs when one company purchases goods or services from another company but doesn’t pay until a later date.
Essentially an interest-free loan, trade credit can be particularly rewarding for young businesses or seasonal businesses that may find themselves occasionally strapped for cash. A key drawback of trade credit, however, is that the buyer is generally expected to pay the invoice relatively quickly, sometimes within a month or two. For many small businesses, that may not be enough time, and they might be better served by getting a small business loan.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.
FAQ
What is an example of trade credit?
Let’s say a restaurant offers kobe beef on its menu and gets its beef from a food supplier in Japan. The supplier offers them a 5/30, net 60 trade. This means that the restaurant has 60 days to pay for a shipment of beef. If they pay the invoice within 30 days, however, they will receive a 5% discount on the purchase price.
Are there any benefits to trade credit?
Yes, benefits of trade credit include interest-free financing for buyers, improves cash flow for buyers, increases sales volumes for sellers, and it builds strong relationships and customer loyalty for sellers.
When do businesses typically use trade credit?
Businesses use trade credit either when they do not have the capital on hand to make a purchase or they need to temporarily free up cash for other expenses. Trade credit is also a good option for young businesses that may not qualify for other forms of business financing.
Photo credit: iStock/Hiraman
SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
As a real estate investor who has bought and sold numerous properties over the years, one of the most common questions I encounter is whether it’s better to sell a property vacant or with tenants in place. The answer isn’t always straightforward and depends on various factors, including property type, market conditions, and target buyers. Let’s break down the pros and cons for different property types.
Table of Contents
Video: Is it Better to Sell Houses or Investment Properties Vacant or With Tenants?
Single-Family Homes
Generally, single-family homes will sell for more money when vacant. Here’s why:
Owner-occupants typically pay more than investors because they’re buying a home, not just an investment
Owner-occupants make up the largest buyer pool for single-family homes
Properties can be properly prepared and staged when vacant
Repairs and updates are easier to complete without tenants
For example, I recently sold a single-family flip that could have rented for $2,000 monthly ($24,000 annually). Using a gross rent multiplier of 8%, an investor might have valued it around $300,000. However, we sold it vacant to an owner-occupant for over $400,000.
Exception: Low-Value Markets
In markets with very low property values but decent rental rates, it might make more sense to sell with tenants. This is common with turnkey rental operations, where properties are sold to out-of-state investors with tenants and property management already in place.
Multi-Family Properties
Duplexes
For duplexes, having at least one unit rented often makes sense because:
It appeals to house hackers who want to live in one unit and rent the other
Rental income helps buyers qualify for financing
Shows proven rental income potential
However, ensure units are rented at market rate. Below-market rents can actually decrease property value.
Larger Multi-Family (5+ Units)
For properties with five or more units:
Almost always better to sell fully occupied
Aim for market-rate rents
Maintain good payment history from tenants
Keep detailed income and expense records
Properties are valued based on income approach
Owner-occupant financing isn’t available, so investor buyers dominate
Commercial Properties
Small Commercial
Small commercial properties can go either way:
Vacant might appeal to owner-occupant businesses
Could potentially get higher prices from owner-users than investors
Market conditions and timing play crucial roles
Large Multi-Tenant Commercial
For larger commercial properties with multiple units:
Generally better sold with tenants in place
Investors typically prefer stabilized income
Having a few vacant units is okay for showing upside potential
Detailed rent rolls and financial statements are crucial
Single-Tenant Large Commercial
These can be challenging:
Harder to sell vacant due to specialized uses
Consider splitting into smaller units if vacant
Triple net leases with strong tenants add significant value
Property value closely tied to tenant quality and lease terms
Special Considerations
Mixed-Use Properties
For mixed-use properties:
Usually better occupied, especially if tenants are strong
Consider separating business operations from real estate
Can sometimes work with partial vacancy
Value based on both current income and potential use
College Rentals
Timing is crucial:
Best to sell either fully rented during school year
Or vacant right before rental season
Avoid having vacancy during off-peak rental periods
Conclusion
While each property is unique, here are the general rules of thumb:
Single-family homes: Usually better vacant
Multi-family: Usually better occupied
Commercial: Depends on size and type
Always consider market conditions and timing
Ensure rents are at market rate if selling occupied
Maintain good financial records for occupied properties
Remember that these are guidelines, not absolute rules. Market conditions, property condition, and timing can all impact whether vacant or occupied is the better choice for your specific situation.
Everywhere you turn, another ad is sharing the good news of a great deal. There’s only one catch: You’ve got to download their app to get it.
The trend in app-based rewards and offers is driven by many things at once. A prolonged period of high inflation made everything feel expensive to consumers. So they started making trades — eating in, buying store brands or waiting to make big purchases, for example. That set off alarm bells for companies as they saw sales slumping so much that price hikes couldn’t make up for it.
Meanwhile, in the background, technology has improved, making it easy and convenient to place an order or pay with a phone. And companies have realized their app-wielding customers are some of their best.
So how do companies bring inflation-weary shoppers and diners back or entice them to buy more often? They offer deals in the form of value meals, coupons and rewards. And they put the deals on their apps.
Price-conscious shoppers want a deal
Retailers know the mental math customers are doing right now when they decide where to spend their money. That’s why they’re clamoring to offer the best and most relevant deals to get people through their doors. In-app deals and rewards aren’t new, but they’ve become the perfect place to tempt customers with tailored offers using notifications, location-tracking information, order history or other data.
Take groceries, for example. Persistently high food prices have made people more price sensitive, making them hunt harder for a good deal, says Sean Turner, co-founder and chief technology officer at Swiftly, a retail tech company that offers digital platforms and data analytics to grocery stores.
“Because it’s such a high spend for consumers and there is so much variety of choice and how you allocate those dollars and how you trade up or down depending upon your budget, shoppers spend a bunch of time kind of trying to obsess and optimize over that pricing,” he says.
Saving time and money
Finding the right item at the right price can shape a person’s entire shopping trip, Turner says. “That’s the battleground for these retailers and that’s going to determine do I go to Lucky’s or do I go to Safeway or Raley’s this week?”
Historically, shoppers relied on weekly circulars that came in the newspaper and advertised the week’s price cuts and coupons. Now, those deals appear front and center in the store’s app.
And while you’re in the app, you can check the rest of your grocery list against the store’s inventory and prices, adding a layer of convenience people will come back for. “You want to know that it’s going to be there. Where is it? What’s the price going to be? And that’s how shoppers are using a lot of these retailer apps right now.”
For instance, recent “digital deals” on the app for QFC (part of the Kroger grocery chain) included $4.99 for frozen fish sticks and other products from Gorton’s ($6.99 without the app) and $5.99 for a box of six Kind bars ($7.99 without the app).
Creating perks for members
Forget punch cards. Companies hoping to secure customer loyalty have gone all out to build a list of membership perks designed around their apps. Customers typically don’t have to download the app to join the program and reap rewards, but some bonuses happen exclusively on the app. Here are a few examples:
Lululemon members get early access to new products on the company’s app, among other special privileges.
McDonald’s app users get points with each purchase that can be redeemed for free food. First-time app users get a free Big Mac with a $1 minimum purchase.
The North Face’s XPLR Pass lets members earn points toward rewards when they use its app to check in while visiting a national park or monument.
Concerns about privacy
What might seem like a killer deal comes with a cost. Every time you download an app, you’re agreeing to hand over your personal data to that company, says R.J. Cross, director of the Don’t Sell My Data campaign with PIRG, a consumer advocacy group. “We’re accidentally opting in to our data being collected all the time.”
It’s hard to know what purpose that data collection serves. The more that’s collected and stored — or sold to third parties — the more likely it’ll be exposed in a security breach, Cross says. “It’s not a transparent system. People have to be on their guard.”
Consumer advocates also fear how the use of personal data can influence pricing. Dynamic pricing generally refers to the use of technology to automatically change prices based on supply and demand. But what happens when a company knows a lot about you and your shopping habits and knows you can’t see what it’s charging other people for the same item?
“It’s a system that has the capacity to be predatory,” Cross says.
(Turner says Swiftly, which powers mostly regional and independent grocery stores’ apps, doesn’t invest in dynamic pricing technology for this reason. “There’s some sense that that might not be the most fair thing to consumers,” he says.)
Tip: Don’t download every app
Privacy risks aside, a trove of personal consumer data also enables companies to use targeted advertising to entice people to spend money. Maybe money they’d never planned to spend.
Not every deal is a deal, Cross warns. It’s more like a nudge. “It’s so permeated throughout our culture that we make it hard for someone to opt out of being barraged by so many targeted appeals and deals.”
She would have consumers avoid loyalty apps altogether and push back on companies that say you have to have an app to access something like a boarding pass for a flight or a ticket to a concert. But if you do get the app, be choosy, she says. “Maybe limit it to the ones you visit regularly instead of a one-time deal.”
If you do opt to download an app to your phone, make sure to review your privacy settings to avoid letting companies collect whatever data they want, including your activity on other apps.
For mortgage brokers, rate volatility is presenting its fair share of hurdles – not least when it comes to locking in refinances. While rates increased last week, they’ve fallen precipitously since earlier this year, and many borrowers are open to biding their time to see where they might eventually land. That means a big challenge … [Read more…]
Last week, I argued that mortgage rates remain in a downward trend, despite some pullback lately.
The 30-year fixed had almost been sub-6% when the Fed announced its rate cut. That “sell the news” event led to a little bounce for rates.
Then a hotter-than-expected jobs report days later pushed the 30-year up to 6.5% and rates kept creeping higher from there.
They’re now closer to 6.625% and have reignited fears that the worst may not yet be behind us.
Whether that’s true or not, you can’t get a rate as low as you could just three weeks ago, and that makes the temporary buydown attractive again.
You Don’t Get Your Money Back on a Permanent Buydown
While some home buyers and mortgage refinancers were able to lock-in sub-6% rates in September, many are now looking at rates closer to 7% again.
This has made mortgage rates unattractive again, especially since there aren’t many lower-cost options around these days, such as adjustable-rate mortgages.
You’re basically stuck going with a 30-year fixed that isn’t worth keeping for anywhere close to 30 years.
And you’re paying a premium for it because the rate won’t adjust for the entire loan term.
One option to make it more palatable is to pay discount points to get a lower rate from the get-go.
But there’s one major downside to that. When you buy down your rate with discount points, it’s permanent. This means the money isn’t refunded if you sell or refinance early on.
You actually need to keep the loan for X amount of months to break even on the upfront cost.
For example, if you pay one mortgage point at closing on a $500,000 loan, that’s $5,000 that will need to be recouped via lower mortgage payments.
If rates happen to drop six months after you take out your home loan, and you refinance, that money isn’t going back in your pocket.
It’s gone forever. And that can obviously be a very frustrating situation.
Is It Time to Consider a Temporary Buydown Again?
The other option to get a lower mortgage rate is the temporary buydown, which as the name implies is only temporary.
Often, you get a lower rate for the first 1-3 years of the loan term before it reverts to the higher note rate.
While these have been painted as higher-risk because they’re akin to an adjustable-rate loan, they could still bridge the gap to lower rates in the future.
And perhaps most importantly, the money spent on the temporary buydown is refundable!
Yes, even if you go with a temporary buydown, then refinance or sell a month or two later, the funds are credited to your outstanding loan balance.
For example, if you’ve got $10,000 in temporary buydown funds and all of a sudden rates drop and a rate and term refinance makes sense, you can take advantage without losing that money.
Instead of simply eating the remaining funds, the money is typically used to pay down the mortgage, as explained in Fannie Mae’s chart above. Say you’ve got $9,000 left in your temporary buydown account.
When you go refinance, that $9,000 would go toward the loan payoff. So if the outstanding loan amount were $490,000, it’d be whittled down to $481,000.
Interestingly, this could also make your refinance cheaper. You’d now have a lower loan amount, potentially pushing you into a lower loan-to-value (LTV) tier.
What Are the Risks?
To sum things up, you’ve got three, maybe your options when taking out a mortgage today.
You can go with an ARM, though the discounts often aren’t great and not all banks/lenders offer them.
You can just go with a 30-year fixed and pay nothing in closing for a slightly higher rate, with the intention of refinancing sooner rather than later.
You can pay discount points at closing to buy down the rate permanently, but then you lose the money if you sell/refinance before the break-even date.
Or you go with a temporary buydown, enjoy a lower rate for the first 1-3 years, and hope to refinance into something permanent before the rate goes higher.
The risk with an ARM is that the rate eventually adjusts and could be unfavorable. As noted, they are also hard to come by right now and may not offer a large discount.
The risk with a standard no cost mortgage is the rate is higher and you could be stuck with it if rates don’t come down and/or you’re unable to refinance for whatever reason.
The risk with the permanent buy down is rates could continue falling (my guess) and you’d leave money on the table.
And the risk of a temporary buydown is somewhat similar to an ARM in that you could be stuck with the higher note rate if rates don’t come down. But at least you’ll know what that note rate is, and that it can’t go any higher.
Read on: Temporary vs. permanent mortgage rate buydowns
Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 18 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on Twitter for hot takes.