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As the world shifts toward a greener and more sustainable lifestyle, many people are looking to renewable energy sources to help reduce their environmental impact. One of the most popular methods is solar energy, using solar panels to harness the sun’s power. However, most people think solar panels are reserved for houses and businesses with lots of roof space. This isn’t true; the transition to solar is for everyone. 

But can you use solar panels for apartments? In this Redfin guide, we have everything you need to know about using solar energy in your rental. So whether you live in a studio apartment in Tampa, FL, or a 2-bedroom apartment in Brentwood, CA, read on for everything you need to know. 

Can you use solar panels in your apartment? 

Yes, in most cases, you can benefit from solar power in your apartment. However, it may not be as straightforward as asking your landlord to install a solar panel on the roof or buying one yourself. 

Installing traditional rooftop solar panels in an apartment building is often impossible due to space constraints, ownership issues, management, state regulations, and your building’s location. It also may be difficult to use alternative methods of using solar energy, as every state has different laws and programs. However, don’t let these hurdles deter you from investing in renewable energy. 

How to use solar power in your apartment

1. Convince your landlord to go solar

Probably the easiest way to get traditional solar panels for apartments is to talk with your landlord. There is no one way to go about this, and it may not be possible depending on your building’s location. However, if you decide to talk with your landlord, here are some benefits to highlight: 

  • Start by educating your landlord about the financial benefits. Although the upfront cost can be substantial, federal, state, and local incentives can often help offset these costs, and the savings on electricity bills over time can make it a financially sound investment.
  • Solar panels can increase property value and appeal to future tenants. And for residents, solar panels can reduce monthly utility costs. 
  • Landlords can also receive income from surplus energy and gain a reputation as forward-thinking property managers.
  • Solar energy is one of the most sustainable and cleanest sources of energy. By converting their properties to solar, landlords can significantly reduce the carbon footprint of their buildings, contributing to environmental conservation and sustainability.
  • No matter what, make sure to present your case professionally and respectfully. Your landlord will be more likely to seriously consider your proposal if it’s well-reasoned and clearly communicated.

2. Invest in miniature or alternative solar 

Since you likely can’t install a solar panel system on your own, another option is to use miniature or alternative solar power systems. Here are a few of the most popular options. 

  • Portable solar panels: Portable solar panels are another viable option. They’re essentially tiny solar panels that you place in your window. You can move them around to capture maximum sunlight throughout the day and can charge devices like your smartphone or laptop directly or store energy in a portable battery for later use. Portable panels are an excellent choice for renters since they can be taken with you when you move.
  • Solar batteries: Solar batteries can store energy to power your devices and appliances. They may not offer a large benefit, but every effort matters.
  • Solar water heaters: These are a great option if your landlord allows it. They use solar energy to heat water and store it for when you need it and can replace a traditional water heater, depending on your climate. 
  • Solar air conditioners: If you have an area in your home that receives a lot of sunlight, you can use a window-mounted or portable air conditioner to cool a room.

3. Purchase SRECs

Another option is to purchase Solar Renewable Energy Credits (SRECs). SRECs are tradable commodities anyone can earn from generating solar energy or purchasing on the open market. States usually create SRECs to help utility companies meet their renewable energy goals more quickly, but they are also available to the general public through private companies. While SRECs don’t directly reduce your carbon footprint or generate power on their own, they can incentivize solar growth in your state and show your commitment to the environment. 

SRECs aren’t available in every state, and prices vary widely depending on where you live. There is no nationwide governance on solar credits, which can lead to inflated prices and limited impact. Make sure you do your research before choosing to invest.

4. Join a community solar program

Community solar, also known as shared solar or solar gardens, is an increasingly popular option that allows multiple people to benefit from a single solar array. This setup can make solar power accessible to people with limited space and access, such as renters and small businesses. 

Here’s how community solar generally works:

  • A third-party developer, often a solar installation company or a utility, builds a solar array, often on a large rooftop or unused piece of land. This array is usually larger than a typical residential solar panel system and can generate much more power. 
  • States have unique laws limiting the size and capacity of community solar arrays. For example, in Washington State, these arrays can generate a maximum of 1 MW, designed to generate enough power for multiple households or buildings.
  • Once it’s built, individuals or businesses can buy (usually a monthly subscription) a portion of the electricity the solar array produces. A 5% share is fairly typical. 
  • Once the solar array begins producing electricity, you can start saving money because the credit from your share of the solar project offsets the cost of the electricity you consume. Utility companies determine bill credits and generally have regulating power. 

Community solar can be cheaper than individual solar panels because the cost is spread between many people. There are also government programs for low-income and HUD-assisted housing renters to utilize community solar at no extra cost. However, community solar projects are often full and aren’t widely available. 

Pros and cons of solar panels for apartments

Investing in and taking advantage of solar energy as a renter is beneficial, but can be complicated. Here are some pros and cons to keep in mind. 

Pros

  • Reducing your carbon footprint: If you’re able to get your landlord to install solar panels, or you’re able to use miniature solar generators, you are reducing your carbon footprint. 
  • Saving money: If you can convince your landlord to install solar panels for your apartment, you could save money on utility bills. 
  • Investing in your community: Purchasing solar credits and participating in a community solar program can have a big impact on your community. By investing money into renewable energy, you are helping it grow and become more widely available. 

Cons

  • No tax credit: You can’t claim the solar federal tax credit if you use a community solar program or don’t own the property the panels are on. 
  • Few solar options: In many cases, it’s very difficult to utilize solar energy as a renter. Dozens of states don’t offer community solar programs or SRECs, and your building may not receive enough sunlight for a portable panel. 
  • Limited utility savings: You won’t receive anywhere near the financial benefits that your landlord will if they install solar panels. Additionally, community solar and miniature solar solutions offer little to no utility credits compared to traditional arrays. 

Final thoughts on solar panels for apartments

While you may not be able to install solar panels on the roof of your apartment building, there are other ways to take advantage of solar energy and help reduce your carbon footprint. From talking with your landlord to joining a community solar program, there are plenty of options.

No matter your method, do your research and ensure you are following all rules and regulations. And if you’re unable to use any kind of solar energy, consider talking with your local city council, state government, or otherwise to get the ball rolling. Renewable energy is essential to lowering global emissions and slowing climate change, so every effort matters.

Source: redfin.com

Apache is functioning normally

One of the biggest barriers to homeownership is amassing the large down payment necessary to purchase a property.

This is especially true post-housing crisis, with no money down mortgages largely a thing of the past through traditional avenues.

Interestingly, studies have shown that low credit scores are a lot more dangerous than low down payments, though a combination of both could be a recipe for disaster.

And even though there are now conventional loan programs that allow LTVs as high as 97%, along with FHA financing that requires just 3.5% down, many still seem to have trouble coming up with the necessary funds to achieve the American Dream.

But what many prospective home buyers may not realize is that there are scores of down payment assistance programs available to them. And I’m not talking about dodgy private lending companies, I’m referring to legitimate state-run housing agencies.

A new analysis from RealtyTrac and Down Payment Resource revealed that 87% of the properties in the United States qualify for some sort of down payment assistance.

Yes, there are income limits as well, which may prevent some buyers from taking advantage of such financing options, but the limits are often pretty high.

The pair of companies noted that more than 68 million U.S. properties are eligible based on maximum home price limits.

In fact, at least one down payment assistance program is available in every single county nationwide.

And in 2,000 counties nationwide there are more than 10 such programs available to homeowners who actually bother to seek them out.

While these programs appear to be plentiful nationwide, the most can be found in the South, with the West not far behind.

The states with the most down payment assistance programs include California, Florida, Texas, Maryland, and New York.

Homeowners Can Get $12,000 on Average in Down Payment Assistance

The analysis found that the average amount of down payment assistance is around $11,565 across all counties. Obviously it can be substantially more in places where home prices are higher.

Typically, it comes in the form of a Community Second, which is a second mortgage with a very low interest rate or no interest rate at all. And in some cases, it is forgiven as the homeowner makes on-time payments.

These subordinate loans can reduce closing costs from as much as $20,000 to just a couple hundred bucks.

And they can often be combined with a first mortgage from the same housing agency to lower the total mortgage payment even more and/or push the out-of-pocket down payment to zero. Or with FHA/VA financing.

Borrowers can also take advantage of Mortgage Credit Certificates (MCCs), which are federal tax credits that can increase household income by offsetting taxes.

There are also housing grants and other special programs geared toward teachers, firefighters, police, military, and other public servants that make homeownership more accessible.

Just keep in mind that these programs do have many restrictions in place to ensure the assistance falls in the right hands.

That means you often need to be a first-time home buyer who doesn’t make more than the median income for the area in which you’d like to buy.

Additionally, the home should be your primary residence, not an investment property or second home.

You’re also most likely looking at a 30-year fixed-rate mortgage as opposed to anything exotic like an ARM. And a decent credit score may also be a requirement.

Down Payment Resource claims that 24% of mortgage borrowers are denied loans due to insufficient funds. At the same time, these borrowers are eligible for an average of seven down payment assistance programs.

The takeaway here is there are tons of financing options for would-be homeowners that are often never even explored, and many could be missing out simply because they’re not doing the research.

If you’re setting out to buy a home, it might not hurt to look up your state’s housing finance agency (HFA) to see what it offers.

(photo: Cindy Funk)

Source: thetruthaboutmortgage.com

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By Rebekah Yancey 

Photos by Rachel Howard 

In the face of unprecedented challenges brought about by the Covid-19 pandemic, many small businesses struggled to adapt and survive. However, there are always those remarkable individuals who rise above difficulties and turn adversity into opportunity. Melanie Kolb is one such inspiring figure. With determination and a keen eye for design, she transformed her small business from a mobile venture to a flourishing brick-and-mortar store front, specializing in Gustavian design and French country home decor. 

A mobile beginning 

Kolb founded Cedar Grove Farms initially as a mobile enterprise, showcasing her collection of curated home decor items and furniture through pop-up shops and travel shows across the southeast. Her passion for interior design and her ability to source unique, high-quality pieces quickly gained her a loyal customer base. Kolb traveled extensively, attending fairs and markets, building relationships with artisans, suppliers and customers – until the Covid-19 pandemic flipped the script. 

“In February 2020, I had purchased trailer loads of product – enough for 10 shows,” Kolb said. “And then Covid hit.”  

It was the pandemic, Kolb said, that was catalyst through which her business model changed from booths at craft and antique fares to a brick-and-mortar location in Hartselle and live shows on Facebook every week. 

Her store now, located in East Hartselle, is close to her heart and her home, quite literally. It is located at the back of the 40-acre farm she shares with her husband Chris.  

Pivoting amidst uncertainty 

As the pandemic hit, Kolb faced the daunting task of adapting her business model to survive in the new normal. With restrictions on public gatherings and a decline in foot traffic at events, she had to think creatively to keep her entrepreneurial dreams alive. Instead of succumbing to the challenges, she decided to take a bold leap and establish a physical store front, focusing on her love for antiques and farmhouse design that features muted color palettes and carved wood.  

 Kolb said Chris actually encouraged her to take the leap of faith – and it is one she has never regretted taking.

It has paid off.  

Cedar Grove Farms exudes a charming blend of the coveted antique aesthetic and French country charm. The delicate, muted and neutral colors and the distressed finishes paired with perfectly curated pieces of art transport customers to a world of timeless elegance and tranquility. 

Community engagement and expansion

Kolb’s success is not limited to the commercial aspect of her business. She has actively engaged with her local community, hosting weekend workshops and what she calls ‘Vintage Vignettes’ for her customers in an effort to share her design skills. Every Monday night, Kolb goes live on Facebook to host décor sales in real-time – engaging with her 11,000 followers.  

Through her weekly live sale on Facebook, items regularly are shipped to customers in Orlando, Fla., Vermont and Washington State. 

Continuing to look for ways to grow her business and interact with her clients, Kolb said the conversations she has with her returning customers are her favorite part of the job.  

 “I love this so much more,” she says. “Before we would have huge crowds with thirty people deep in line – you could not connect with your customers at all.”  

 Kolb says she loves to empower her customers to decorate their homes themselves – she doesn’t just want to sell them a product.  

“As women, home design is just as important as your outfit,” she says. “I love it when people come back and say ‘Oh, my husband loves this,’” she added. 

For Kolb, Cedar Grove Farms is all about the community she’s built.  

 “It’s much more than a business and customer relationship now,” she says. 

 Kolb’s customers regularly travel to Hartselle from Memphis, Nashville and Birmingham.  

Cedar Grove Farms in open from 10 a.m. until 5 p.m. Thursdays and Fridays and 10-5 on the first Saturday of the month unless there is a holiday, or by appointment. 

Cedar Grove Farms is located at 726 N. Cedar Cove Rd., Hartselle.  

Find the boutique on Facebook at www.facebook.com/shopcedargrovefarms.  

Source: m.hartselleenquirer.com

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Nestled in the East Bay region just east of San Francisco, Brentwood, CA, is a hidden gem that blends small-town charm with the amenities and opportunities of big-city living. Known for its idyllic weather, high quality of life, and ample outdoor recreation, Brentwood has plenty to offer everyone looking to call it home. From its rich agricultural history and focus on local produce to its robust calendar of community events, there are countless reasons to consider a move to this thriving city.

So, if you’re looking for homes for sale in Brentwood, apartments for rent, or are just curious about what the area has to offer, this Redfin guide is for you. To give you a taste, here are 6 reasons to move to Brentwood, CA, and why you’ll love living here. 

1. Weather

Brentwood has a Mediterranean climate, making it popular for people who love plenty of sunlight and limited rainfall. Winters are generally mild and wet, while summers are hot and dry with cool evenings. This kind of weather allows for plenty of outdoor activities throughout the year, including biking, hiking, and picnics. The sunlight is also perfect for gardening and agricultural activities, contributing to the area’s rich produce.

2. Location

The city is situated just east of the San Francisco Bay Area, providing a balance of urban and suburban life. Living in Brentwood means you can enjoy the tranquility of a smaller city while still having access to the amenities and opportunities of larger cities like San Francisco, Sacramento, and San Jose. The city’s location also makes it an excellent place for people who love scenic drives and enjoying the natural beauty of coastal California. 

3. Agriculture and local produce

Brentwood is famous for its agricultural heritage. The area is rich in farmlands, producing a variety of fruits and vegetables, including peaches, cherries, and corn. These fresh and locally grown items are a regular feature at the city’s farmers’ markets and roadside fruit stands. It’s a food lover’s paradise, particularly for those who appreciate fresh, organic, and farm-to-table dining experiences.

4. Outdoor recreation

Brentwood is nestled between Mt. Diablo and the Sacramento and San Joaquin Rivers, making for beautiful contrasting scenery and plenty of recreational possibilities. The Marsh Creek Regional Trail, for example, provides a great place for jogging, cycling, or leisurely walks. Round Valley Regional Preserve, meanwhile, offers beautiful trails and picnic spots, making it perfect for weekend hikes and family outings. The nearby Delta area is also a hub for water-related activities like boating, fishing, and kayaking.

5. Community events

The community spirit in Brentwood is strong, with numerous local events throughout the year that encourage community participation and engagement. The annual Harvest Time Festival, for instance, celebrates local farms and their bounties, providing residents with U-Pick, tours, and more. Another popular option is the weekly Brentwood Farmers’ Market, which offers an array of fresh local produce and artisan goods. And if you like music, Concerts in the Park provides weekly concerts every summer in the heart of the city. 

6. Growth and development 

Brentwood has seen significant growth and development in recent years, with its population growing by nearly 300% since 2000. This has contributed to economic stability and increasing job opportunities. Continuous development has also led to new restaurants, shopping centers, and entertainment venues, enhancing the city’s appeal. If you’re seeking a place with plenty to offer and lots of room still to grow, Brentwood may be an excellent choice.

Source: redfin.com

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The pending addition of updated credit scores at Fannie Mae and Freddie Mac could be more manageable if done one at a time, according to the Community Home Lenders of America.

Specifically, the group sent a letter to the Federal Housing Finance Agency that oversees the two government-sponsored enterprises, asking it to add the new VantageScore first, following a steep price hike in line with the cost of the services provided by the other vendor, FICO.

“One way to achieve a slower implementation schedule would be to take more incremental steps, by starting with VantageScore, the new entrant in this space. CHLA recommends that the FICO 10T requirement be deferred to a later phase,” the association said in the letter.

That could be done depending on how interconnected VantageScore will be with other changes the FHFA, Fannie and Freddie are planning, said Tony Hutchinson, senior vice president of industry and government relations at VantageScore Solutions.

“If the FHFA is saying they want to utilize VantageScore along with some of the new rules that are going to come out …then they’re going to have to wait until those rules are promulgated,” he said.

FICO declined to comment on an inquiry about the CHLA letter. However, in a previous interview, a representative noted the three major credit reporting agencies, who share ownership of VantageScore but operate independent from it, largely control score pricing.

“FICO doesn’t set the price of the FICO score in the market. We provide a royalty rate card that we give to the CRAs, and then they can choose to price the FICO score any way they want in the market,” said Joanne Gaskin, vice president of scores and data analytics.

VantageScore also declined to comment on how its pricing compares to FICO’s, deferring to the credit bureaus. FICO and at least one of the credit bureaus have confirmed a change in pricing and said as reflects inflation they hadn’t revised their prices to reflect in some time.

In its letter, the association also reiterated concerns with what is reportedly bulk pricing for the credit bundles that include the current FICO score required to sell mortgages to Fannie and Freddie.

Such pricing is out of step with “at least the spirit” of guarantee fee parity, the CHLA said in the letter sent Thursday to FHFA Director Sandra Thompson.

G-fee parity refers to historical concerns with larger lenders receiving more favorable terms for the loans the two GSEs buy in the past. This led to Fannie and Freddie making efforts to ensure smaller players receive pricing more on par with their larger counterparts.

Freddie and Fannie don’t directly control pricing for credit measures but their requirements essentially compel the lenders they work with to invest in certain consumer scores and reports as sales to the GSEs are contingent on submission of that information.

Lenders don’t have to sell to Fannie and Freddie, but the two GSEs currently play such a large role in the U.S. mortgage market that it can be challenging not to rely on them, particularly at nonbanks that typically don’t hold loans in portfolio.

The newer credit score models Freddie and Fannie are moving toward were designed to incorporate broader ranges of borrower data than the older model currently used, potentially qualifying a more expansive group of borrowers for mortgages and homeownership.

Source: nationalmortgagenews.com

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In a cyclical mortgage industry, hedging is key to maintaining a buffer against losses. For New American Funding (NAF), the country’s 33rd-largest mortgage lender, hedging is how the company was able to manage through the troughs of the mortgage business cycle, Rick Arvielo, co-founder and CEO of NAF, said in an interview with HousingWire. 

“We’re always looking for hedges,” Arvielo said. “The outside distributor retail is a hedge against the call center in the different environments. Servicing is a hedge against origination.”

Since launching as a call center in 2003, the California lender has expanded into the outside distributed retail model with a target on the purchase mortgage market, serviced its own loans and developed its tech stack in-house.

But there have been rough points for the lender recently, too. As rates increased in 2022, the California lender laid off nearly 1,000 staff to cut costs and meet shrinking demand in the industry.

However, NAF said it is done with rightsizing and has been adding more employees this year. When rates start to trend down, the company expects to add more loan officers, call center staff and operation staff.

With increased M&A activity in the industry, NAF hasn’t ruled out the possibility of acquiring a regional lender with an established customer base, either.

“Yes, I’d love to acquire a smaller, independent regional player (…) Anything in the Northeast, kind of above the Carolinas, we really don’t have anything. The northern part of the United States – you get above the Arizona, Colorado market – we don’t really have much there,” Arvielo said.

Read on to learn more about New American Funding’s business model of outside distributed retail, their in-house tech stack rebuild, its expansions plans and prospects in 2023. 

This interview has been condensed and lightly edited for clarity.

Connie Kim: NAF’s business model of a call center and the outside distributed retail business seems like a hedge against when the rates are low and when the market pivots to purchase mortgages. Now that the market has turned, do you see any challenges for your purchase call center agents? Because there are retail LOs building that in-person relationship with their real estate agents and financial advisors.

Rick: The way people purchase homes is going to be different tomorrow than today (…), so we developed a network. When we get a borrower that comes in online, we do our good work to get them qualified to buy a home – these are mostly early stage buyers. 

That referral process is an age old, where the real estate community will give up a third of their commission for being delivered a qualified, pre-approved borrower that came out of the relocation world. The borrowers became more sticky with us, (and) then we were able to accomplish profitability to originating the purchase business through the call center.

That journey took about two years. We dabbled under the hood from mid-2016 to about mid-2018, and then really started to perfect it. And that’s why that business is bigger today than the refi call center, because rates are higher, so you don’t have a lot of refi opportunities.

Kim: So the model focuses on connecting the retail LOs and the call center agents together to bring up that efficiency to target the purchase market. It’s a different audience that NAF is targeting via the outside distributed retail channel and the purchase call centers.

Rick: Yes. If I could just add one little bit, we took it a step further. We realized through our analysis that a lot of these borrowers, even though they started the journey online, they really want to work with an in-market agent. The call center is going to be the in-market agent’s best friend. 

We set up a program called LBC – which is local buyer connect, where an in-market agent can choose to join the purchase call center for a percentage of their business. 

Kim: NAF bought Marketplace Home Loans in 2018. Are there plans to acquire a regional purchase lender?

Rick: I would love to take looks. It’s not something that we’ve really done. We’re in the process of talking to some of the business brokers out there to get some looks. 

Anything in the Northeast, kind of above the Carolinas, we really don’t have anything. The northern part of the United States – you get above the Arizona, Colorado market – we don’t really have much there. 

Texas is a big one for us. We do a good job in El Paso, Texas. But outside of that, we really don’t have much in Texas.

Florida, we’re okay, but I can see us filling in some geographies there. Nebraska and Louisiana. I could go on with a lot of these states that we just don’t really have a presence in at all. We have almost nothing in Illinois. 

So the short answer is yes, I’d love to acquire a smaller, independent regional player, so long as it’s not in a region that I already have well covered with leadership. 

Kim: One of NAF’s priorities is on lending to the Hispanic community. While Hispanic homeownership continues to grow, high DTI ratios is a main stumbling block to getting mortgages. What are some of the ways NAF is assessing credit risk for potential Hispanic homebuyers?

Patty: I’ve been underwriting the creditworthiness of Hispanic homebuyers the exact same way since 1994. We pretty much just adhere to Fannie Mae, Freddie Mac and the Department of Housing and Urban Development’s guidelines. You know, we’ve had to argue some points with every agency at some point. We still do a large percentage of manual underwrites. 

Part of the process of the way we credit underwriting is that if we do hit a stumbling block, it’s not an automatic denial [for us]. We go back to the borrower and ask if they have a cosigner, if they can source the downpayment or if they can get additional funds. So it’s really just a slow play to close. A lot of lenders don’t want to do that.

Rick: It does deserve noting that Patty started the initiative for Latino lending back in 2013. But in 2016, Patty was challenged when was speaking one time from a Black gentleman who said, “What are you doing for African Americans?”

We’re basically replicating what we did in the Latino communities that got us a little bit of notoriety. 

Kim: NAF has been building its in-house tech stack since its inception. Can you share some of the features that paid off? What are some of the features that NAF is building?

Rick: We built our system out, called Bankerview, but it’s 20 years old. It’s a flat system. Architecturally, we needed to essentially start over, and we couldn’t really do it with the resources onshore. 

We decided to bite the bullet and actually form our own business in India. We literally did it from scratch [in March, April 2022]. We got an office and we currently have about 100 technicians in India.

They’re a lower-cost provider and we still have our onshore teams, because that’s absolutely vital to success. Now we’re going back through our tech stack, and we’re literally rebuilding it from the ground up, to be able to take us for the next 20 years. 

Kim: It was a hard year for the production side, but what really kept a lot of lenders stay afloat was the servicing sector. NAF has been servicing its own loans. How did that help your firm’s business? Are there any plans to sell some of that? 

Rick: We’re always looking for hedges, so it was very intentional to build this asset. When you start bringing a lot of African American and Latino borrowers into your servicing, we started with subservicers like everybody else. But they’re not equipped to deliver the level of service that those borrowers need.

We would have endured losses like everyone else had we not had the servicing business, because it’s a $65 billion servicing portfolio at this point. So it does throw an awful lot of cash. And the last thing in the world I want to do is to spend all the money I’m earning in servicing, but that’s why we did it. We did it to give ourselves that hedge. 

We’ve been servicing our loan for maybe six years now, and we have sold servicing just to raise cash. We sold a grand total of about $3 billion out of $65 billion, and that’s a cumulative of what we sold going back years.

Kim: I believe it was in November 2022 when NAF said it laid off more than 900 employees. Were there additional layoffs in 2023? Is NAF done rightsizing? 

Rick: I think we’re probably done rightsizing. You lose people through attrition, too. That’s very common, especially in a call center. 

We haven’t had layoffs for this year. We were knocking on the door of 5,000 employees, and I think we’re probably at about 3,600 or so.

Patty: We’re actually up this year in employee headcount. We’re growing quite a bit. There are support staff that come along with them (loan officers). So bigger teams or a team will bring their operations people.

I would say that out of the last 11 years we’ve been doing distributed retail, outside of just initially growing and how crazy it was, this is the busiest I’ve been in recruiting since then. 

Kim: I often hear that mortgage volume will be similar to last year, but more back-end loaded. What are your thoughts on this for NAF’s origination volume?

Rick:  I wouldn’t say it’s going to be anything like last year. I think what you’re going to see in 2023 is a gradual rise; I don’t think it’s going to be big pops. My biggest concern, to be honest, is inventory. 

Inventory is lighter now than I think it’s been in decades. Part of that is because of the government not letting foreclosures happen. There’s a foreclosure process for a reason. It feeds inventory to the market that benefits the new first-time homebuyers. If you don’t let that dam kind of break, all you’re doing is hurting the new family formation and the new homeowners of tomorrow.

The minute rates drop into the fives, you’re going to see real estate activity heat up, and you’re going to see house prices just start to pop again.

Source: housingwire.com

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The real estate investing landscape has changed dramatically since the big bust of 2008. Confidence is still not what it once was, and for smaller investors, the risks seem to outweigh rewards. However, an article I read from Forbes back in the summer of 2017 shined a light onto diversified investments into commercial as “the way.” With this in mind, news from an innovative social platform for real estate investments called “iintoo” led me to request an interview with the company’s Managing Director, Shoshana Winter.

The new epiic revolutionary equity principal protection for real estate investments

Here is the gist of our Q & A session.

Phil Butler: Can you outline briefly an ideal/characteristic iintoo deal or investment?

Shoshana Winter: Iintoo is designed to remove every possible barrier to entry for investors who are interested in exploring alternative asset classes to help diversify their portfolios, but don’t want to take the time to develop the expertise necessary to choose the right deal. The ideal investment for iintoo is, therefore, one that makes it through a long and rigorous vetting process which is designed to weed out less opportune deals. Our platform leverages AI as well as the expertise of our team to identify those deals that meet the core standards in our methodology: commercial-grade, income-generating (value-add capital improvement projects for senior living, student housing and multi-family, etc.), in B and C geographies, and in short exists (no later than 36 months). These criteria have historically demonstrated positive returns for investors, even through economic downturns. 

Our goal is to deliver double digit returns on each investment and to do so in short timelines so investors can either roll their returns into another deal or be able to use that yield to fund home improvement projects, vacations or special occasions like a wedding. This vetting process has resulted in iintoo offering only 53 projects to investors out of the 4000 plus deals they’ve seen over the past 4 years. This strategy has returned a 16.78% average annual yield across the 11 exits completed. iintoo’s vetting of these projects does not end with the offering – our team of analysts and business development professionals stay involved in every step of the project ensuring that the developers they are working with stay on time and budget according to the business plan of each project. iintoo will be in contact with the sponsor, do site visits and deliver quarterly reports to its investors to provide complete transparency on progress through the life of the project.

Phil Butler: What’s the benefit that iintoo provides to investors looking to capitalize on the CRE market?  

Shoshana Winter: Iintoo provides easy, direct access to curated, premium commercial grade real estate deals designed to drive maximum yield in short time frames. That means that many investors can enjoy these yields in a very immediate way. For example, if they want to see their retirement funds deliver higher returns than traditional products (IRA’s), they can invest a portion of their retirement fund in iintoo through the use of a custodial trust that we make available to them, which allows them to invest without the tax penalties of withdrawing their retirement funds early. iintoo takes a lot of the guesswork out of the process by only offering deals that are designed to deliver the highest potential yields. This means that investors do not need to be real estate experts to make these investments. In addition, iintoo offers investors the industry’s only Equity Protection Investment Community (Epiic) platform which protects them against a loss of value of real estate projects. Epiic adds a two-layer protection benefit for investors who are seeking the safety of principal protection for their initial investment.

Phil Butler: How does iintoo help investors limit risk?

Shoshana Winter: Iintoo does everything it can throughout the process to ensure the best possible investor experience. Though no investment is risk free, iintoo’s methodology is based on a proven model, a highly rigorous criteria-driven vetting process, hands-on management of the investment, and equity principal protection. (See above)

Phil Butler: I’ve taken note of the fact iintoo does not offer investments for those interested in the luxury market. How can your platform/service be helpful to these investors?

Shoshana Winter: Iintoo’s model is based on over 30 years of historical performance of commercial grade real estate investments across multiple geographies. The reasoning for focussing on B and C grade geographies and commercial grade projects (vs. hotels and retail) is they have proven to deliver better yields even through economic downturns. iintoo is looking to capitalize on what is delivering returns vs. other criteria; our analysts and business development team continue to evaluate deals across the spectrum and if new opportunities present themselves that serve our goal of maximum potential returns than we might expand our offerings to include those kinds of deals. But, the guiding principle is always about insuring the most positive outcome for our investors.

I asked the iintoo executive about her company’s successes/profits for investors, which she expressed in terms of a 16.78% average annual yield for our 11 exits. According to Ms. Winter, by using the iintoo platform, accredited investors can now access commercial-grade real estate opportunities without the normal barriers to entry smaller investors usually face. iintoo specializes in grouping investors from all over the country into bigger, multi-million dollar positions and investing that in commercial grade real estate like hotels, student housing, storage facilities, as well as multifamily complexes.

Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.

Latest posts by Phil Butler (see all)

Source: realtybiznews.com

Apache is functioning normally

One of the activities that take place within the GEM is practice investment pitches. One entrepreneur takes the hot seat and gives a 5-10 minute pitch to 5-9 other entrepreneurs from the community. Everyone on the call (we use Google Meet) then spends 20-40 minutes asking questions and providing constructive feedback. The sole goal is to help the “hot seat” entrepreneur refine and improve his/her pitch going forward.

Next up: Brian Mommsen from Resident, an experiential dining company that hosts bespoke, culinary events in underutilized residential spaces. They provide an amenity to accelerate lease-up, increase tenant retention, and create an additional revenue stream through a profit share.

My thoughts on the company can be found here.

The pitch is this Thursday, on May 21st at 1:30 pst / 4:30 est.

While this is NOT a public event, we have a couple open spots for participation if there are real estate owners, developers, landlords, or owners of family investment offices interested and willing to spend 45 minutes helping out.

Interested? Please send a link to your website and/or Linkedin to drew at geekestatelabs dot com.

Source: geekestateblog.com

Apache is functioning normally

My sister and I have called Westlake and Koreatown home our entire lives, but rising rent priced us out of our own community. Southern California’s high costs of living and limited homeowner support programs made it nearly impossible to find a better housing situation for our family.

Growing up in a predominately low-income immigrant community, we assumed living in an overcrowded apartment was the norm.

For more than 25 years, our family of four lived in a rent-controlled, cramped 450-square-foot studio with a walk-in closet and tiny bathroom. We converted the walk-in closet into a bedroom and our parents slept in a twin-sized bed right outside the kitchen. Our apartment was old, moldy and infested with roaches and hadn’t been renovated since we moved in — hence the rent being cheaper than the market rate for L.A. County.

As we got older, we realized that we had lived in two scenarios identified by health and other organizations as threatening housing instability: living doubled up, meaning when adults beyond a head of household and partner have to share a home, and then living crowded, where the number of residents exceeds the capacity of the space, often leading to poor physical and mental health. An L.A. Times analysis published last year found that Los Angeles was the most overcrowded city in America as of 2020.

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Right before COVID-19 hit, we held unstable minimum wage, temporary and stipend-based positions and struggled to pay rent. Then during the pandemic, we found it increasingly difficult to complete remote work and online school in our crowded living situation. As COVID cases subsided, we got our first full-time jobs and considered moving to a bigger place. But the cheapest apartments we looked at were at least half of our combined income.

We were torn. On the one hand, we had stayed far too long in an uncomfortable living situation. Seeing apartment complexes in our neighborhood be demolished and replaced by luxury high-rises also made us fear that it was just a matter of time before we would be evicted. On the other hand, we could not justify spending so much on rent, especially since a rule of thumb is to spend no more than a third of your income on housing. And since we had both been laid off during the pandemic, we feared becoming unemployed again in the future.

After crunching the numbers, we decided to pursue an option we previously considered out of reach: saving up to buy a home. Given the rising local costs of rent, in the long run we’d be better off buying. We also wanted to repay our parents for all the sacrifices they made to ensure we had a roof over our heads, and for their love and support. So we continued to live in our crowded apartment while aggressively saving up for a down payment and for an emergency fund because we feared going back to job instability.

As first-generation Latina home buyers, we did our best to navigate the process by combing through programs for buyers like us. Those didn’t end up helping.

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The first program we tried was Bank of America’s Community Affordable Loan Solution, which among other benefits provides up to $15,000 in down payment assistance for first-time home buyers in L.A. and a handful of other cities to purchase in a community that is predominantly Black, Latino or both. But we were told we were ineligible for the program because our combined annual income just exceeded the maximum limit of $136,650. At the same time, we are considered low-income in L.A. County, suggesting the program’s cutoff is too strict to help everyone who needs it.

Next we considered applying for the California Dream for All Shared Appreciation Loan program, which provides a loan worth up to 20% of a home’s sale price. However, the program also requires borrowers to pay 20% of the home’s increase in value once it’s sold on top of paying back the original loan. We worried that borrowing this amount would ultimately hurt us by taking away a portion of our future equity. Then that consideration turned out to be moot: The program ran out of funds two weeks after launching, before we could even complete the preapproval process.

We also found significant problems with the equity of these programs. Although the Community Affordable Loan Solution is meant to support Black and Latino communities, which have historically low rates of homeownership, it does not require individuals to identify as Black or Latino to qualify. Similarly, though the California Dream for All program was meant in part to reduce racial wealth gaps in the state, CalMatters found that 65% of the initial recipients were white. Only 34% of beneficiaries identified as Latino and just 4% identified as Black. California’s longtime affirmative action ban restricts the agency’s ability to target funds for people of color.

Fortunately, we finally found a home for our family in a different part of Los Angeles. Looking back, we’re grateful that our relatively low-cost living situation allowed us to save. Even so, families should not have to live in cramped, small living spaces to afford rent — and tolerating these conditions should not be the only option renters have when trying to save up for a down payment.

Moreover, since we were unsuccessful with first-time buyer programs, we felt compelled to make the risky decision to deplete our emergency fund to place a 3% down payment. Although that enabled us to buy our home, we aren’t sure what the future holds for us. We can’t say it was an easy process.

Federal and state officials should evaluate how first-time homebuyer programs are designed, rolled out and made available particularly to Black and Latino applicants. Providers should consider offering assistance on a sliding scale based on income level rather than using relatively low cutoffs. Other alternatives might be to create down-payment assistance grants rather than loans, or loans that do not accrue interest until a home buyer reaches a small portion of equity (such as 3%). Such approaches may help people get into homes sooner and obtain equity faster.

We hope to see better options for all low-income renters. Homeownership should not be this inaccessible, especially for people who are seeking to become the first in their families to buy a home and build generational wealth.

Jennifer Nazario is a systems administrator at a network of college-preparatory schools and a first-generation college graduate with a master’s degree in economics. Paula Nazario is an assistant director at UCLA and the first person in her family to go to college. She has a master’s degree in public policy.

Source: latimes.com

Apache is functioning normally

A union is a group of workers who join together to negotiate with an employer over pay, benefits, scheduling, and other workplace policies and conditions. The process of negotiating with an employer as a unified entity is known as collective bargaining, and it gives workers some power to set the terms of their employment.

The size and scope of each union varies. For example, you may have seen the International Brotherhood of Teamsters in the news; it represents more than 1.2 million people in a wide array of occupations across the U.S., Canada and Puerto Rico, according to its website. The Teamsters union represents 340,000 UPS workers, and it recently negotiated a deal with UPS after threatening a strike.

Or maybe you’ve read headlines about the Writers Guild of America (WGA) — a union representing 11,500 screenwriters — and the Screen Actors Guild and the American Federation of Television and Radio Artists (SAG-AFTRA), which represents 160,000 performers. Both unions are on strike, meaning they’re refusing to work as a way to compel employers to agree to the unions’ demands.

How do unions work?

A group of workers interested in bargaining collectively with their employer can organize a new, independent union or join an existing union. After a group agrees to unionize, the union can negotiate a collective bargaining agreement — a legally binding contract between the union and employer.

Forming a union

To form a union, workers must take a couple of official steps to both show interest in forming a union and gain that recognition from their employer. Here’s how they can do that.

Voluntary recognition. A majority of employees can sign union authorization cards, which are forms that record a person’s interest in a union. At that point, workers can request recognition as a union from the employer, and the employer can voluntarily do so.

A majority vote in an election. If the employer doesn’t voluntarily recognize the union, but at least 30% of employees sign union authorization cards, the employees can file a petition for an election conducted by a labor agency such as the National Labor Relations Board (NLRB), which is tasked with protecting workers’ rights to collective bargaining.

If the majority of employees vote to unionize, the labor agency will certify the group as a union. Then the employer is required to bargain with the union in good faith.

The NLRB conducted 1,363 elections in 2022, according to the agency’s records. Unions won 1,041 of those elections.

Joining a union

In a unionized workplace, union membership is optional. All workers covered by a collective bargaining agreement are known as a bargaining unit, and workers don’t have to be union members to be part of the bargaining unit.

Union members pay dues, participate in union activities and agree to follow union rules. Dues are used to fund union operations, including paying staff, lobbying and supporting members during a strike.

Someone who opts out of union membership may still have to pay a portion of union dues to cover the cost of collective bargaining. However, in 26 states with “right-to-work” laws, workers can’t be required to pay fees to a union as a condition of employment. Even then, those workers are still covered by the collective bargaining agreement.

An employer may work with multiple unions representing different bargaining units in its workforce. For example, public schools may have contracts with one union representing teachers and another representing clerical or janitorial staff.

Negotiating as a union

A union’s main purpose is negotiating a collective bargaining agreement. These contracts typically cover pay, benefits, time off, working conditions and worker protections.

Union members play a role in deciding what’s included in a contract. They elect union representatives, vote on what changes to make when contracts are negotiated, and approve new agreements. When contract talks stall because the union and the employer can’t agree on terms, union members might vote to strike.

What’s covered in a union contract can vary by industry.

Changes in technology are at the root of the contract changes proposed by TV and film writers. The WGA wants its contract to address the impact streaming services have had on compensation and the potential threat artificial intelligence poses to creative professionals.

For unions with members who were on the front lines of the COVID-19 pandemic, understaffing and safety protocols have been a common concern. Those issues have compelled Starbucks workers to unionize at more than 330 U.S. stores since 2021.

In another example, a new contract that the Minnesota Nurses Association negotiated in 2022 gave nurses a say in setting staffing levels, requiring consensus between nurses and management before any staffing reductions take place.

Unions also have used collective bargaining agreements to make “common good” demands — proposals that would impact the community beyond the bargaining unit. For instance, Oakland, California, teachers went on strike in May to secure higher pay and a better schedule, as well as a commitment from the school district to provide support for unhoused students.

How many union workers are in the U.S.?

About 14.3 million workers are part of a union, according to the most recent data from the Bureau of Labor Statistics. The BLS report on union membership, released in January, found that the number of unionized workers increased by 273,000 from the previous year.

Despite the year-over-year increase, the percentage of U.S. workers who belong to a union is at a record low. In 2022, 10.1% of workers belonged to a union, down from 20.1% of workers in 1983, which is the earliest comparable data available from BLS.

The BLS report gives a current portrait of America’s union workers:

  • About a third of federal, state and local government workers are part of a union. Just 6% of private sector workers are unionized.

  • Jobs with the highest unionization rates include protective services (34.6%), education (33.7%), utilities (19.6%) and construction (16.4%).

  • Black workers have higher unionization rates than white, Hispanic or Asian workers. In 2022, 11.6% of Black workers belonged to a union, compared to 10% of white workers, 8.8% of Hispanic workers and 8.3% of Asian workers.

  • While 14.3 million workers count themselves as union members, the number of workers represented by unions is actually 16 million. That’s because 1.7 million people who don’t affiliate with a union work in jobs that are covered by a union contract.

Source: nerdwallet.com