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Apache is functioning normally

January 18, 2024 by Brett Tams

Table of Contents

An IPO, or initial public offering, refers to privately owned companies selling shares of the business to the general public for the first time.

“Going public” has benefits: It can boost a company’s profile, bring prestige to the management team, and raise cash that can be used for expanding the business.

But there are downsides to going public as well. The IPO process can be costly and time-consuming, and subject the business to a high level of scrutiny.

Key Points

• An IPO, or initial public offering, is when a privately owned company sells shares of the business to the general public for the first time.

• Companies typically hire investment bankers and lawyers to help them with the IPO process.

• Reasons for a company IPO include raising capital, providing an exit opportunity for early stakeholders, and gaining more liquidity and publicity.

• Pros of an IPO include an opportunity to raise capital, future access to capital, increased liquidity, and exposure.

• Cons of an IPO include costs and time, disclosure obligations, liability, and a loss of managerial flexibility.

IPO Definition

IPO stands for “initial public offering,” which marks the first time a private corporation offers its securities for sale to the public.

In such a process, a portion of the firm’s shares are transferred from private ownership by company insiders to public markets, so that both retail and institutional investors can buy IPO shares.

How Do IPOs Work?

To have an IPO, a company must file a prospectus with the SEC. The company will use the prospectus to solicit investors, and it includes key information like the terms of the securities offered and the business’s overall financial condition.

Behind the scenes, companies typically hire investment bankers and lawyers to help them with the IPO process. The investment bankers act as underwriters, or buyers of the shares from the company before transferring them to the public market. The underwriters at the investment bank help the company determine the offering price, the number of shares that will be offered, and other relevant details.

The company will also apply to list their stock on one of the different stock exchanges, like the New York Stock Exchange or Nasdaq Stock Exchange.

Access BrightSpring Health IPO shares with SoFi Invest®.

BrightSpring Health ($BTSG) just filed to go public. Open an Active Invest account, check out the prospectus, and request shares for an opportunity to invest in the IPO.

*No offer to buy the securities can be accepted and no part of the purchase price can be received until the registration statement has become effective, and any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time prior to notice of its acceptance given after the effective date. To see if participating in an IPO is right for you, please fill out your investor profile prior to submitting any indication of interest. Investing in IPOs comes with risk, including the risk of loss. Please visit sofi.com/iporisk/. Offered via SoFi Securities LLC, Member FINRA/SIPC.

IPO Price vs Opening Price

The IPO price is the price at which shares of a company are set before they are sold on a stock exchange. As soon as markets open and the stock is actively traded, that price begins to go up or down depending on consumer demand, which is known as the opening price.

💡 Quick Tip: The best stock trading app? That’s a personal preference, of course. Generally speaking, though, a great app is one with an intuitive interface and powerful features to help make trades quickly and easily.

History of IPOs

While there are some indications that shares of businesses were traded during the Roman Republic, the first modern IPO is widely considered to have been offered by the Dutch East India Company in the early 1600s. In general, the Dutch are credited with inventing the stock exchange, with shares of the Dutch East India Company being the sole company trading in Amsterdam for many years.

In the U.S., Bank of North America conducted the first American IPO, which likely took place in 1783. A report claims investors hiding cash in carriages evaded British soldiers to buy shares of the first American IPO.

Henry Goldman led investment bank Goldman Sachs’ first IPO — United Cigar Manufacturers Co. — in 1906, pioneering a new way of valuing companies. A challenge for retail companies at the time was that they lacked hard assets, as other big businesses like railroads had at the time. Goldman pushed to value companies based on their income or earnings, which remains a key part of IPO valuations today.

Why Does A Company IPO, or “Go Public”?

Answering the question, “what’s an IPO?” doesn’t explain why a company “goes public” — an important detail in the process. Because an IPO requires a significant amount of time and resources, a business probably has good reason to go through the trouble.

Raising Money

A common reason is to raise capital (money) for possible expansion. Prior to an IPO, a private company may procure funding through angel investors, venture capitalists, private investors, and so on.

A company may reach a size where it is no longer able to procure enough capital from these sources to fund further expansion. Offering sales of stock to the public may allow a company to access this rapid influx of investment capital.
💡 Quick Tip: Keen to invest in an IPO? Be sure to check with your brokerage about what’s required. Typically IPO stock is available only to eligible investors.

Exit Opportunity

An IPO may be a way for early stakeholders, such as angel investors and venture-capital firms, to cash out of their holdings. Venture-capital firms in particular have their own investors that need to provide returns for. IPOs are a way for them to transfer their share of a private company by selling their equity to public investors.

More Liquidity

Venture-capital firms and angel investors aren’t the only ones who may be seeking more liquidity for stakes in companies. Liquidity refers to the ease with which an investor can sell an asset. Stocks tend to be much more liquid assets than private-company stakes.

Hence, employees with equity options can also use IPOs as a way to gain more liquidity for their holdings, although they are usually subject to lock-up periods.

Publicity

From the roadshow that investment banks hold to inform potential investors about the company to when executives may ring the opening bell at a stock exchange, an IPO can bring out greater publicity for a company.

Being listed as a public company also exposes a business to a wider variety of investors, allowing the business to obtain more name recognition.

Pros and Cons of an IPO

As with any business decision, there are downsides and risks to going public that should be considered in conjunction with the potential benefits. Here’s a look at a few:

Pros	Cons
An IPO may allow a company to raise capital on a scale otherwise unavailable to it. It can use these funds to expand the business, build infrastructure, and to fund research and development.	Public companies must keep the public informed about their business operations and finance. They are subject to a host of filing requirements from the SEC, from initial disclosure obligations to quarterly and annual financial reports.
After an IPO, companies can issue more stock, which can help with future efforts to raise capital.	Companies and company leaders may be liable if legal obligations like quarterly and annual filings aren’t met.
IPOs increase liquidity, which allows business owners and employees to more easily exercise stock options or sell shares.	Public companies must consider the concerns and opinions of a potentially vast pool of investors. Private companies on the other hand, often answer to only a small group of owners and investors.
Public companies may use stock as payment when acquiring or merging with other businesses.	Public companies are under more scrutiny than their private counterparts, as they’re forced to disclose information about their business operations.
IPOs can generate a lot of publicity.	Going public is time consuming and expensive.

Participating in an IPO: 3 Steps to Buying IPO Stock

1. Read the Prospectus

IPOs can be hard to analyze: It’s difficult to learn much about a company going public for the first time. There’s not a lot of information floating around beforehand since when companies are private, they don’t really have to disclose any earnings with the SEC. Before an IPO, you can look at two documents to get information about the company: Form S-1 and the red herring prospectus.

2. Find Brokerage

If you want to purchase shares of a stock in an IPO, you’ll most commonly have to go through a broker. Some firms also let you buy shares at the offering price as opposed to the trading price once the stock is on the public market.

3. Request Shares

Once a brokerage account is set up, you can let your broker know electronically or over the phone how many shares of what stock you’d like to buy and what order type. The broker will execute the trade for you, usually for a fee, although many online brokerages now offer zero commission trading.

Who Can Buy IPO Stock?

Not everyone has the ability to buy shares at the IPO price. When a company wants to go public, they typically hire an underwriter — an investment bank — that structures the IPO and drums up interest among investors. The underwriter acquires shares of the company and sets a price for them based on how much money the company wants to raise and how much demand they think there is for the stock.

The underwriter will likely offer IPO shares to its institutional investors, and it may reserve some for other people close to the company. The company wants these initial shareholders to remain invested for the long-term and tries to avoid allocating to those who may want to sell right after a first-day pop in the share price.

Investment banks go through a relatively complicated process in part to help them avoid some of the risks associated with a company going public for the first time. It’s possible that the IPO could become oversubscribed, e.g when there are more buyers lined up for the stock at the IPO price than there are actual shares.

When Can You Sell IPO Stock?

Shortly after a company’s IPO there may be a period in which its stock price experiences a downturn as a result of the lock-up period ending.

The IPO lock-up period is a restriction placed upon investors who acquired company stock before it went public that keeps them from selling their shares for a certain period of time after the IPO. The lock-up period typically ranges from 90 to 180 days. It’s meant to prevent too many shares in the early days of the IPO from flooding the market and driving prices down.

However, once the period is over, it can be a bit of a free-for-all as early investors cash in on their stocks. It may be worth waiting for this period to pass before buying shares in a newly public company.

Things to Know Before Investing in an IPO

An IPO, by definition, gives the investing public an opportunity to own the stock of a newly public company. However, the SEC warns that IPOs can be risky and speculative investments.

IPO Market Price

To understand why investing in an IPO can be risky, it is helpful to know that the business valuation and offering price have not been determined not by the market forces of supply and demand, as is the case for stocks trading openly in a market exchange.

Instead, the offering price is usually determined by the company and the underwriters who negotiate a price based on an often-competing set of interests of involved parties.

Post-IPO Trading

Purchasing shares in the market immediately following an IPO can also be risky. Underwriters may do what they can to buoy the trading price initially, keeping it from falling too far below the offering price.

Meanwhile, IPO lock-up periods may stop early investors and company executives from cashing out immediately after the offering. The concern to investors is what happens to the price once this support ends.

Data from Dealogic shows that since 2010, a quarter of U.S. IPOs have seen losses after their first day.

IPO Due Diligence

Investors with the option to invest in an IPO should do so only after having conducted their due diligence. The SEC states that “being well informed is critical in deciding whether to invest. Therefore, it is important to review the prospectus and ask questions when researching an IPO.”

Investors should receive a copy of the prospectus before their broker confirms the sale. To read the prospectus before then, check with the company’s most recent registration statement on EDGAR, the SEC’s public filing system.

IPO Alternatives

Since the heady days of the dot-com bubble, when many new companies were going public, startups have become more disgruntled with the traditional IPO process. Some of these businesses often complain that the IPO model can be time-consuming and expensive.

Particularly in Silicon Valley, the U.S. startup capital, many companies are taking longer to go public. Hence, the emergence of so many unicorn companies — businesses with valuations of $1 billion or greater.

In recent years, alternatives to the traditional IPO process have also emerged. Here’s a closer look at some of them.

Recommended: Guide to Tech IPOs

Direct Listings

In direct listings, private companies skip the process of hiring an investment bank as an underwriter. A bank may still offer advice to the company, but their role tends to be smaller. Instead, the private company relies on an auction system by the stock exchange to set their IPO price.

Companies with bigger name brands that don’t need the roadshows tend to pick the direct-listing route.

SPACs

Special purpose acquisition companies or SPACs have become another common way to go public. With SPACs, a blank-check company is listed on the public stock market.

These businesses typically have no operations, but instead a “sponsor” pledges to seek a private company to buy. Once a private-company target is found, it merges with the SPAC, going public in the process.

SPACs are often a speedier way to go public. They became wildly popular in 2020 and 2021 as many famous sponsors launched SPACs.

Crowdfunding

Crowdfunding is collecting small amounts of money from a bigger group of individuals. The advent of social media and digital platforms have expanded the possibilities for crowdfunding.

The Takeaway

Initial public offerings or IPOs are a key part of U.S. capital markets, allowing private businesses to enter the world’s biggest public market. Conducting an IPO is a multi-step, expensive process for private companies but allows them to significantly expand their reach when it comes to fundraising, liquidity and brand recognition.

For investors, buying an IPO stock can be tempting because of the potential of getting in on a company’s growth early and benefiting from its expansion. However, it’s important to know that many IPO stocks also tend to be untested, meaning their businesses are newer and less stable, and that the stock price can fluctuate — creating considerable risk for investors.

Whether you’re curious about exploring IPOs, or interested in traditional stocks and exchange-traded funds (ETFs), you can get started by opening an account on the SoFi Invest® brokerage platform. On SoFi Invest, eligible SoFi members have the opportunity to trade IPO shares, and there are no account minimums for those with an Active Investing account. As with any investment, it’s wise to consider your overall portfolio goals in order to assess whether IPO investing is right for you, given the risks of volatility and loss.

Invest with as little as $5 with a SoFi Active Investing account.

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SoFi Invest refers to the two investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

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For additional disclosures related to the SoFi Invest platforms described above, including state licensure of SoFi Digital Assets, LLC, please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Bank, N.A.

Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement. IPOs offered through SoFi Securities are not a recommendation and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation.

New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For SoFi’s allocation procedures please refer to IPO Allocation Procedures.
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.

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Source: sofi.com

Apache is functioning normally

January 18, 2024 by Brett Tams

Every year, I set goals and review my goals from the previous year. Not only do I set goals and review them but I publish them here for the world to see! This helps keep me accountable for my actions and keeps the goals fresh in my mind.

When I set goals, my main objective is not to achieve those goals but to do better. Many of my goals I do not achieve and that is okay because I know I did more and better with the goals than if I did not have them.

My previous goals and how I did

It is crazy to think of how much I have accomplished over the years and I know that setting goals helped me do much more than I ever thought possible. I own more than $22 million worth of real estate and have accomplished many of my dreams. I still have a long way to go and I will keep this going as long as I can. Every year I write this article that goes over my previous goals and my future goals. You can see those other goal articles from previous years below:

Things have changed over the years as my business has changed and new things have come into my life. I started a real estate brokerage, started investing in commercial real estate, wrote many books, started brick-and-mortar businesses, and much more.

What were my goals for 2023?

I don’t make the same goals every year because not every goal works. Some goals may seem like great ideas until I realize achieving them was too easy or not impactful on me or my business. Some goals may be too difficult to measure or track and some are just oo boring. These were my goals for 2023

Sell 20 properties

I usually make a goal to flip a certain amount of homes which means I sell a flip. I felt the need to bring a goal like that back since I need to be selling properties fairly quickly to keep my business model sustainable since I am buying new ones and spending a lot on repairs. I did not sell as many properties in 2022 as I usually do. These may be rentals or flips that I sell in 2023. I have sold rentals in the past that were not the best performing and that is my plan now as well. I have had some properties that I had big plans for but those plans fell through for various reasons. I need to sell those and move on to other properties while keeping the good ones.

I believe I only sold 10 properties in 2023! This was way below my goal and a few things made this difficult. For one, I was not able to buy as many flips as I hoped to. Rising interest rates also made it more difficult to sell some of the multifamily flips that I had planned to sell. This was not the end of the world because I am making money on those properties every month but I do have a lot of capital tied up in them that I would like to get out eventually.

Here is one of the properties I sold:

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Buy 12 Flips

I think we only bought 6 flips in 2022! That was the fewest number of flips I have bought in many years but that number is also a little deceiving. Some of the flips I bought were multiunit properties that will take more work than a normal flip and some of the properties that I considered to be rental property purchases in 2022 may end up being long-term flips too. I have a few duplexes and triplexes that I was thinking of keeping or selling and I think I may sell them after fixing them up a bit.

I did not buy 12 flips in 2023 either! We only bought 7 flips which was not much better than 2022. The silver lining of this is that most of the flips we bought we in the last half of 2023 so we may see some light at the end of the tunnel for finding more deals. The lack of inventory has made it very hard to find properties that will be a worthwhile flip.

Here is one of the flips I bought:

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Buy $2,000,000 worth of rental properties

I have had goals to buy a certain amount of rentals (my goal to purchase 100 rentals) and to buy a certain amount of square footage of rentals (my goal to purchase 1 million square feet of rentals) but this year I am changing it to a dollar amount. I liked both goals but they both had issues. The 100 property goal was for houses I started buying large commercial properties. The 1 million square feet of rentals goal was cool but then I bought some crazy big properties that were mostly money pits. We will see how this goal goes.

I did absolutely horrible with this goal as well! I only bought one rental property and it was a small one and a business too. The small laundromat in Kersey Colorado had an apartment in it and that is the only rental I was able to -purchase for $300k. I did have another property that I almost bought for $1.3 million but the seller backed out at the last second. Even though the market for selling rentals is not very good, there still are not many deals out there to buy either!

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Refinance $2 million worth of debt

This is one goal that I have been accomplishing and makes a huge difference in my finances. By refinancing private money into bank money, I free up those private money lenders to lend me more private money and reduce my interest payments while locking in loans for the long term. I have some new lenders to try this year and I can reach out to my old ones as well on a few properties.

Well, this is another goal that I completely missed. I had some ideas to refinance properties but those ideas fell through. I knew it would be tough refinancing properties with traditional bank loans and I was hoping to use some DSCR loans. The issue I ran into with DSCR loans, is that most of them have huge prepayment penalties and it is very hard to find them on commercial or mixed-use properties.

Make $500k in revenue from Investfourmore

I have this same goal again! I have some new things to try and I may really focus on that business this year myself as well. I think there is a lot of opportunity there that I have not been fully tapping into. I would love to have people in my office who work on this business.

Are you getting used to me missing my goals because it happened again! I actually saw a decrease in revenue from investfourmore. Investfourmore is this blog, my YouTube channel, social media, real estate coaching products, and a few other things. One of the big problems with Investfourmore is that real estate is really hard right now and I think many people have lost interest or given up. While my revenue did not go up, I was able to accomplish some great things in 2023 with my brand.

Add 250k social media followers

I think this goal is diable and at the same time challenging as well. The tricky part with social media is you never know what will do well or how your account will do. Some things I think will never do well end up being awesome and some that I think are awesome do horrible! One of the sub-goals in this is to hit 100k subscribers on YouTube. I have 90k now and gained 10k in the last 2 months but without crazy evictions, YouTube stops pushing my channel as much and that crazy run is over for now. Hopefully, I can get more steady and consistent growth without craziness.

Here is a goal that I was much more successful at achieving. I hit 100k Subscribers on YouTube! I did not add 250k social media followers, but I added about 100k through YouTube, Facebook, and TikTok. Instagram has actually been losing followers because I think Instagram shadow banned me and hates me. I am not sure why.

Raise Revenues at my store from $65k to $95k per month

I bought a liquor store and mini-market in 2022 which was a goal of mine for a while. I have always wanted a brick-and-mortar store for some reason. I got my wish and it has been fun but also challenging. The store makes money even after paying rent to myself who owns the building as well. While it makes money, I think it can do so much better! One big change is we can serve more food options since I just upped our food license to a grocery with a deli which allows us to prepare some foods. We will see how that goes!

This goal I hit in the summer of 2023 and then sales dropped back down again. Sales are seasonal at the store and that was to be expected. While sales were way up, our profits were not as much as they should have been due to some staffing issues and cost problems. Making money is not all about revenue, but the bottom line, or profit as well. The store is going great.

Interesting 2023 accomplishments that weren’t goals

While I did not accomplish many of my goals I was able to do some new things I was not expecting. I have wanted a laundromat for many years and tried to build one from scratch in a small town in Northern Colorado. That did not work out because of the build and utility costs. However, I was able to buy one small laundromat and car wash in June that was already existing and then I took over another laundromat in September! The small laundromat has had many challenges but the larger one is doing pretty well. It was very exciting learning the business and trying to improve sales.

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My goals for 2024

As always I am going to change up how I do my goals this year. I am always tweaking and changing things as I said previously. I am going to do something new which maybe I should have done before but for some reason, I did not. I am going to post an income goal. I have always been about investing and revenue in some of my businesses but I have never done a total income goal. Many people think I make way more money than I do.

I want to make one million dollars in taxable income in 2024

I have multiple companies that have made close to or more than one million dollars in revenue a year but taxable income is not revenue! If I am able to make one million dollars in taxable income it will mean that I brought in way more income than that because my rentals and other businesses provide a tremendous amount of writeoffs and deductions. I plan to do this with a mix of online profit, store profit, flip profit, rental property profit, and laundromat profits. I broke down that goal into smaller goals like making $100k profit at the store.

I want to sell 20 properties in 2024

I am repeating this goal again because there are about 5 rentals I would like to sell that are underperforming or have a lot of equity compared to the cash flow coming in. I also have 7 flips that should sell in 2024 and I plan to buy more that will sell in 2024 as well. It is not the end of the world if I do not sell this many but it would be nice and free up capital to buy properties with more potential or value-added possibilities if I can find them!

Here is one of the properties I sold in 2023:

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I want to buy at least 12 flips in 2024

I made this goal in 2023 and did not reach it either but I think I can in 2024 or at least come close. It is fun doing flips and I love creating videos and buying more flips allows me to make more videos! I am hoping with interest rates going down (fingers crossed) more inventory will come on the market and I will be able to find more deals.

I want to buy $2 million worth of rentals

I am repeating this goal again too! Rental properties that make money have been in short supply in my market. There have been a few properties that came up for sale that were close to good enough deals for me and other investors jumped on them. I am thinking I may have to try a different market soon but I am not giving up on Colorado yet. I did make a post about the most landlord-friendly states which could help others and myself make a decision if I decide to invest in other markets.

I want to refinance $2 million worth of debt

I am still looking to refinance some of my properties that have private money loans on them. Luckily my lenders are very flexible and are willing to keep taking the interest I am paying them. If interest rates come down a bunch that would be awesome but I am not sure how far down they will go. I would also love to find a DSCR lender that doesn’t have huge prepayment penalties!

Social media and blog goals

I have many goals for social media. I want to continue to grow my YouTube channel and I would love for it to take off and focus my time on it but my other social media channels like Facebook and TikTok drive people to my YouTube channel. I also have not been writing as much on Investfourmore.com because I have been focussing on social media and I think that is one reason I have not been as successful online as I had hoped. I want to write more on my blog and make sure I am taking advantage of the brand I have built over many years!

Here are some of the social media goals:

150k YouTube Subscribers
400k Facebook followers
100k Tiktok followers
Increase traffic on Investfourmore to 50k users a month
I still want to hit that $50k a month revenue goal as well!

Conclusion

Setting goals is very important and something I do every year and keep track of all the time. To be honest, I could have kept better track of my goals in 2023. I had them written on a whiteboard and I looked at them but I did not set time away to plan as much as I should have. Another goal of mine is to focus more on my goals in 2024!

To learn more about goals and why I use them check this out.

Build a Rental Property Empire

Source: investfourmore.com

Apache is functioning normally

January 16, 2024 by Brett Tams

Want to learn how to get paid to do nothing? Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life. It may seem too good to be true,…

Want to learn how to get paid to do nothing?

Picture this: making money without putting in much effort, even when you’re just relaxing, sleeping, or waiting in line. The idea of getting paid for doing nothing has always been popular and it’s probably your dream life.

It may seem too good to be true, but there are real ways to use your free time or things you already have to make money with minimal ongoing work.

There are actually quite a few things on this list that I regularly do so that I can make money doing nothing.

Now, some of the ways below may take initial effort or even some maintenance over the years. But, you may be able to earn money while sleeping or while at the beach with minimal effort needed from you.

Best Ways To Get Paid To Do Nothing

Do you want to earn money while you relax? You can get paid without a 9-to-5 job. Let’s look at some ways to make money while doing nothing.

Here are some ways out of the list below that you may be interested in:

Sell printables online – These can be made once and sold an unlimited amount of times. Learn more at How I Make Money Selling Printables On Etsy.
Pose as an art model – It’s simple; just sit still! Art schools pay models around $25 per hour.
Real estate – You can invest in real estate funds. Your money might work for you, and you don’t have to manage properties.
Take online surveys – You can answer these whenever you have free time and the questions are extremely easy. Best online survey sites include Branded Surveys, Swagbucks, and Survey Junkie.
Rent your stuff – You’ve got stuff other people might want for a day or two. Think about renting out things like your storage room, baby gear, RV, and more.

Learn more about the different ways to get paid to do nothing below.

1. Sign up for a rewards credit card

Earning money without working hard can sound really nice. One way to do this is to get a rewards credit card. When you use this kind of card, you can get points or cash back for buying things you would buy anyway.

When you sign up for a new card, you might receive a big signup bonus. Some cards give you bonus points, like 50,000 or even more, as a welcome gift! However, you usually need to spend a certain amount of money first (such as $4,000 in the first 3 months).

Here is a table with the different types of rewards you might get:

Reward Type	What You Get
Points	Use for travel and gift cards.
Cash Back	Money back on your purchases.
Mile Rewards	Miles to fly on planes for free airfare.

I have a few rewards credit cards and I earn points every time I use my credit card, such as by paying a bill or going grocery shopping. I actually just signed up for a new rewards credit card this week that has a great signup bonus value of over $800.

Two rewards credit cards that I personally like are:

Important note: Using credit card rewards is a good idea as long as you use your credit card responsibly. It’s not smart to go into debt just for rewards because having debt with interest is not free or helpful. To truly make money from credit card rewards, be sure to pay your full credit card balance every month.

2. Get paid to stand in line

If you don’t mind waiting, you can earn money by standing in line for other people. Some companies and individuals pay for this service, especially when they’re busy or want to attend popular events without waiting.

Here’s how it works: You take someone else’s spot in line, like waiting for tickets or securing a spot at a busy restaurant. You do the waiting for them so they don’t have to.

You can earn approximately $25 to $35 per hour by just standing in line. The exact amount depends on your location and how much people need line sitters.

To get started, search for websites that link line sitters with clients, such as Taskrabbit, Same Ole Line Dudes, and InLine4You. Join the sites, create a listing for your services, and wait for someone to hire you.

3. Dividend-paying stocks

One of the best ways to make money without a job is to invest in dividend-paying stocks.

When you invest in dividend-paying stocks, you’re buying a piece of a company that gives you money regularly. Think of it like getting a small thank you for holding on to the company’s stock. These payments usually come from the company’s profits and they’re called dividends.

Here’s how it works. You buy stocks that pay dividends, and then, every so often (usually every three months), the company sends you money. It’s a way to earn without doing much after your initial investment.

Now, a table to show you what to look for:

Term	Meaning
Dividend Yield	How much you earn compared to the stock price
Payout Ratio	The part of profits used for dividends
Ex-Dividend Date	The day when you must own the stock to get paid

Keep in mind, not all dividend stocks are the same. Some may lose value and payments could stop if the company isn’t doing well. So, it’s important to choose wisely, and you might want to seek guidance from someone who knows a lot about stocks.

For me, I love earning dividends. It’s like being rewarded for saving for retirement, and it is so easy.

Recommended reading: What Are Dividends & How Do They Work? A Beginner’s Guide

4. High-yield savings accounts

When you put your money in a savings account, you want it to grow. High-yield savings accounts are like your regular savings account but with an extra boost for making your money grow faster.

The interest rate or annual percentage yield (APY) is what the bank pays you. The higher the APY, the more money you make. Good news! Some of these accounts offer APYs much higher than the usual, like more than 5%! That’s a lot better than the average savings account.

I personally use Marcus by Goldman Sachs and they have a very high interest rate. You can get up to 5.50%, at the time of this writing, through my referral link bonus. So, at this rate, if you have $10,000 saved, you could earn $550 with a high-yield savings account in a year. Whereas with normal banks, your earnings would only be $46.

You must be thinking, “What’s the catch?” Well, most of these accounts are from online banks. No biggie, just that you won’t have a bank branch to visit. They also tend to not offer other features, such as bill pay and checks – it’s simply a place to park your money and earn a lot more in interest.

5. Sell printables

If you want to earn money while doing nearly nothing on the internet, you can try selling printables online. Printables are files that you make once, like planners, invitations, flash cards, and worksheets, and then sell over and over again.

Yes, you will have to make the printables and open a store, but after a while, you can start making money from the same printables over and over again.

This is because printables are digital products that sell with just simple downloadable files.

I recommend reading How I Make Money Selling Printables On Etsy to learn more.

6. Share your opinions

You can earn money in your free time by joining paid market research studies. Keep in mind, it won’t replace a full-time job (they usually pay only $1 to $3 for each survey you complete), but you might make some extra cash.

When I was paying off my student loans, I did online surveys almost every day. I did them before work, during my lunch break, or after work. What I like about answering online surveys is that I can answer them whenever I want, such as while watching TV or eating lunch.

Some of the survey companies I recommend include:

Please head to Best Paid Online Surveys to read more.

7. Rent out your extra storage space

If you’ve got extra room at your place, you can make money by renting it out.

Think about renting out parts of your home, like an empty closet, your driveway or parking space, or your garage. Websites like Neighbor allow you to list these spaces for someone to store their belongings (such as a car, sofa, boxes, and more).

Neighbor is like the Airbnb of storage space. Instead of having guests over, you’re renting out your storage space to store other people’s belongings.

8. Sell stock photos

Selling stock photos is a good way to earn money through passive income without actively working for it.

You upload photos you’ve taken with your camera or phone to a platform like Depositphotos. When someone buys one of your photos, you get a commission.

Websites, companies, and blogs use stock photos for all different kinds of reasons. Businesses use them to improve their content, websites, or overall appearance, as they may not have the time to take photos of everything they need.

I personally use stock photos in my blog posts all the time, and I know many, many others who do as well. The photos throughout this article are all stock photos, so you can see how useful they are to website owners.

Stock photography includes pictures of things like:

Travel, landscapes, and outdoor scenes
Business settings like laptops, offices, and people working
Family moments, including parents and children
Household items, such as living areas and kitchens
Animals, including pets and wildlife
Vehicles like cars and boats
Sports, from professional events to casual games

Recommended reading: 18 Ways You Can Get Paid To Take Pictures

9. House sitting

For some people, house sitting is the ultimate dream job. You may be able to watch houses around the world in dream destinations after all!

House sitting involves taking care of someone’s house while they’re away. It’s a way to earn money without much effort. Your responsibilities include staying in the house, making sure everything is safe, collecting mail, and sometimes looking after pets or watering their plants. Many times, people just want it to look like someone is living in their home so that no one will try to break in.

You can find house sitting jobs on websites like TrustedHousesitters and Care. You may also find these types of jobs through dog walking gigs, such as on Rover.

10. Invest in REITs

Investing in a Real Estate Investment Trust (REIT) is like buying a small piece of many buildings without the hassle of managing them.

REITs are companies that own many real estate properties, and they earn money by renting out space in those properties. Imagine shopping malls, apartments, and offices as examples.

Here’s how it works:

Choose a REIT – Look for REITs with good histories, like those experts trust.
Invest Your Money – You can start with a small amount of money.
Earn Money – REITs make cash from their buildings. They share this cash with you through dividends.

11. Pose for art classes

If you can stay still for a while, you might like posing for art classes. When you pose, art students look at you and draw or paint your picture. It’s a way you can make money by just sitting or standing.

Most times, art models get about $20 to $30 each hour. You’ll usually be there for around three hours or more.

What will you do? You will hold a pose. A pose can be something like sitting in a chair, standing, or making an interesting shape with your body. These poses can last from five to twenty minutes. Don’t worry, you get breaks so you can stretch and rest.

Who can do this? You don’t have to look a certain way. Artists need all kinds of people to learn how to draw humans well. You just need to be okay with being looked at while you are posing.

Where to find these jobs? Check with local art schools, colleges, or community centers. They usually need new models. You can also look online for art model jobs in your area.

12. Listen to music

If you enjoy music, you can actually make some money by listening to songs. You can use apps and websites that pay you just for listening. Companies want your opinion on new music, and they’ll pay you for your time!

Slicethepie is a popular site that pays you to listen to music. Other popular sites include Playlist Push, Current Rewards, and Hit Predictor.

Here’s how it typically works:

Step	Action
Find an app	Look for apps that offer payment for music listening.
Sign up	Create an account on these platforms.
Listen and rate	Start listening to music and provide your honest feedback.
Earn	Collect your earnings, usually through points that can be converted into cash or gift cards.

13. Get paid to work out

Yes, you can get paid for being active, even while doing your regular workout!

Apps like HealthyWage make staying fit exciting by allowing you to bet on your fitness goals. You set a weight loss target, bet on yourself, and join others with similar goals. If you achieve your goal first, you win money from the prize pool. It’s a friendly competition with a chance to earn a financial reward.

14. Become a notary

If you want to earn money with little effort, you might think about becoming a notary. As a notary, your job is to be a witness when people sign important papers and to check that the people signing are really who they say they are.

So, yes, you are still working a job, but you are simply watching people sign papers.

What notaries do:

Meet people who need papers signed.
Check their IDs to make sure they are who they say they are.
Watch them sign the document.
Use your notary stamp and write in your record book.

You can make anywhere from $9 to $21 per hour, but it depends on things like where you live and if you have to go to people or they come to you.

15. Mattress tester

Testing mattresses is a unique side hustle where you can make money by just testing out mattresses.

As a mattress tester, you’ll test beds and write reviews about your sleep quality, comfort, and any other observations. Your feedback is valuable as it helps companies improve their products to better meet customer needs.

Some mattress companies pay individuals like you to test their products. This helps them figure out how comfortable their mattresses are and how they can make them even better.

You can find these gigs by researching local sleep clinics or mattress companies that offer paid studies or testing.

I have actually been paid to test mattresses in the past, and it is easy! I was only paid with free mattresses, but at one point in a single year, I think I received 5 or 6 mattresses. I ended up giving away a couple to friends and family because the work was so easy.

16. Join a sleep study

Similar to testing out mattresses, you may be able to get paid to join a sleep study.

Sleep studies are research projects that help doctors understand sleep patterns and disorders. If you’re interested in earning money while contributing to science, participating in one of these studies is an option. Typically, sleep studies seek specific types of participants, such as a particular age group or weight range. Your initial step is to determine if you meet their requirements.

After being accepted into a study, you’ll visit the center for tests. During the study, you might wear special equipment while you sleep. This equipment helps researchers monitor and track your sleep patterns.

The payment you receive depends on how long the study is, which might be for one night or even several weeks.

Many universities, like the Harvard Division of Sleep Medicine, pay for sleep studies.

17. Put an advertisement on your car

If you want to earn extra money without doing much, think about turning your car into a moving billboard. Companies will pay you to put their ads on your car.

To start, join a car wrap advertising company like Carvertise or Wrapify. They’ll place a special sticker, called a car wrap, on your entire car or specific parts of it. These companies seek drivers to display ads on their cars, and the more you drive and the places you go can increase your earnings.

Your car’s make and model, condition, and paint quality are important. They decide how well the ads will stick and look.

The type of ad wrap you choose changes how much you get paid too. The options are:

Full wrap
Partial wrap
Just the windows

Here’s what you might be able to earn:

Car Wrap Type	Possible Earnings
Full Wrap	$200 to $1000 per month
Partial Wrap	$150 to $250 per month
Window Ads	$100 to $250 per month

Keep in mind that the earnings can vary. It depends on factors like how frequently you drive and where your car is visible.

Recommended reading: 6 Best Ways To Get Paid to Advertise On Your Car

18. Rent out a spare room in your home

If you have an extra room in your house and want to earn passive income streams, you can make money by renting it out. This is a smart way to earn cash without much work.

I have had several roommates over the years. We would rent out our spare room to long-term renters and people that we personally knew (such as friends and my sister).

To find a roommate and earn rental income, you can advertise your space in various places. You can announce on your personal Facebook page, place an ad on websites like Craigslist, create a rental listing on Airbnb, and more.

Whether you have a house or an apartment, this may be an option available to you.

19. Use cash back sites

When you shop online, you can earn money back on what you spend by using cash back sites.

Think of it like getting a discount, but instead of saving money right away, you get some cash back later.

I use cash back sites and apps pretty much every single time I shop – it’s easy, free money for me.

Popular cashback sites include:

Rakuten – Gives you a percentage of your money back.
Swagbucks – Earns points that you can exchange for cash or gift cards.
Fetch Rewards – I use this site for every single grocery receipt I have.
Ibotta – Another easy grocery scanning app to use.

For example: To get cash back, all you need to do is create a Rakuten account, visit their website, and click on the store where you want to shop (such as Target, Best Buy, Old Navy, etc.). They will then redirect you to that store, and you can shop online as you normally would to get cash back.

These types of sites typically pay via free gift cards or PayPal cash.

20. Rent out your RV

Renting out your RV can be a way to earn extra money on something that might be sitting around collecting dust (and rust!).

By renting it out, you could potentially make $100 to $300 a day or even more.

RVing has become very popular these days, and people frequently rent RVs to explore on vacations or even to try out a specific RV model before making a purchase.

One RV rental platform that I recommend is RVshare. RVshare is basically an Airbnb just for RVs. It’s a site where you can list your RV for rent and RVshare will handle all payments and bookings for you.

Similar to this, you can also rent out your car on Turo!

Recommended reading: How To Make Extra Money By Renting Out Your RV

21. Receive a pension

Getting paid to do nothing may sound like a dream, but if you have a pension, it’s a real thing that can happen when you retire.

A pension is money that you get regularly after working for a certain number of years.

When you work at a job that offers a pension plan, your employer puts money into this plan for you. When it’s time to retire, this money comes back to you, usually every month.

The amount you get usually depends on three things:

Age – Generally, the older you are when you retire, the more you get.
Salary – How much you earned at your job can affect your pension.
How long you worked there – The longer you worked, the higher your pension.

Sometimes, you might have the option to receive all your pension money at once, known as a “lump sum.” It’s a substantial, one-time payment instead of monthly checks. Make a wise decision by considering what works best for you. If you’re unsure, seeking advice from someone knowledgeable about finances could help you decide.

Frequently Asked Questions About Getting Paid to Do Nothing

Below are answers to common questions about how to get paid to do nothing.

How can I get money for doing nothing?

You might be surprised, but there are ways to earn money with little to no effort. For instance, using a cash back credit card for your everyday spending allows you to get a percentage back. You can also do any of the things above, such as selling digital downloads online, finding a job that will pay you a pension once you retire, investing in dividend-paying stocks, and more.

What are jobs where you do nothing and get paid a lot?

So, it can be hard to work an actual job that pays you a lot of money to do nothing. After all, if that existed, then everyone would be doing it, haha! Some jobs do pay you, though, for simple tasks, such as being a notary.

Can I really make income by just being idle?

Yes, you can make passive income through methods like earning interest from a high-yield savings account or renting out your spare space.

Where can I find jobs that don’t expect much work from me?

Look for gig economy jobs where you can earn money based on the tasks you choose to accept, such as delivering food or charging electric scooters. There are so many other side jobs that aren’t even mentioned on the list above, such as creating an online course, becoming a taste tester, micro-investing (such as with the Acorns app), becoming a background actor, watching ads, affiliate marketing, delivering groceries, writing a book review online (such as for Kirkus Media), playing games, talking with an online companion or strangers, and more.

How to get paid to do nothing online?

Some ways to get paid to do nothing online include selling digital files and stock photos. These will both require initial work from you, but eventually, these will sell with little work needed by you.

How To Get Paid to Do Nothing – Summary

I hope you enjoyed this article on how to get paid to do nothing and found one or more gigs that fit what you’re looking for!

As you can see, there are many ways to get paid to do nothing (or almost nothing).

You can grow your savings effortlessly with high-yield savings accounts or make money by renting out extra storage space. Investments in stocks that pay dividends or REITs can give you money regularly without needing your daily attention.

Did you know that you can get paid to do nothing?

Apache is functioning normally

January 14, 2024 by Brett Tams

Equity financing trades a percentage of a business’s equity, or ownership, in exchange for funding. Equity financing can come from an individual investor, a firm or even groups of investors.

Unlike traditional debt financing, you don’t repay funding you receive from investors; rather, their investment is repaid by their ownership stake in the growing value of your company. Equity financing is a common type of financing for startup businesses — especially for pre-revenue startups that don’t qualify for traditional loans — and businesses that want to avoid taking out small-business loans.

What is equity in business?

Business equity refers to the amount of ownership in a company or business, usually calculated as a percentage or by number of shares. For smaller private companies, equity is usually reserved for owners, investors and sometimes employees, while larger, publicly traded companies may also sell equity on the stock market.

Business equity is calculated by subtracting a business’s total liabilities from its total assets. For that reason, equity reflects a business’s value and indicates to shareholders the business’s overall financial stability.

How does equity financing work?

The process of getting equity financing will vary depending on the type of equity financing you’re looking for, your business and your investors. Generally, you can expect to follow these steps.

Gather documents

Before you start looking for investors, you’ll need documents like a business plan and financial reports, plus an idea of how much capital you need and what you will use it for. These are all things you’ll need to outline to a potential investor in your business pitch.

Find investors

If you don’t know investors or have potential investors in mind already, consider leveraging your personal or professional network to understand your options. You can also use online platforms to search for investors, or even check LinkedIn or attend local networking events.

Negotiate how much equity to give to your investors

Once you’ve found your investors, they may conduct their own business valuation, whereby they determine the potential value of your business to decide how much equity they want for their investment. Factors like business stage, amount of risk based on market trends and expected return based on financial projections will influence this negotiation. Angel investors may request 20-25% for example, while venture capitalists may want up to 40%.

Use funds

Once you’ve negotiated a price, the cash you receive from investors may be used for product development, new hires, debt refinance or working capital.

Share profits

Once your business starts making money, your investors will be entitled to a portion of your profits depending on how much equity they have in your business. This percentage will be paid to your investors in dividends within a predetermined time frame. If your business fails to make money, original investments do not have to be repaid.

Pros and cons of equity financing

Pros

No repayment terms. Strictly speaking, you don’t “repay” an investor in your company the way you would a lender. Instead, the initial investment is repaid by the prospect of the future value and profits of your business. While loans can be a great way to fund your business, not having monthly or weekly payments can be very beneficial to startups or businesses that are focused on growth.
Access to advisors. Most investors have invested before, and have likely even run their own businesses, which can make them a good resource as you navigate the ups and downs of running your business. Plus, because they have money invested in your business, your investors will have a special interest in helping your business succeed.
Larger funding amounts. You may qualify for larger amounts of financing with equity investors than with debt financing, especially if you’re a startup business. In addition, if you end up needing more money along the way, an investor may provide additional injections.
Alternative qualification requirements. Rather than business revenue or personal credit, investors will typically look at things like your business idea’s potential and your character.

Cons

Loss of ownership. Any time you receive an equity investment, your percentage of ownership in the business will decrease, which can affect your share of any future profits and value.
Loss of control. When you hand over ownership, you may also be handing over some control of your business, which can become problematic if you and your investors don’t see eye to eye.
Usually for high-growth, high-potential businesses. Equity financing is usually tailored for fast-growing businesses with high growth potential, which means many small businesses won’t be the right fit for this type of financing.

Common types of equity financing

Angel investing

Angel investors are high-net-worth individuals, most often accredited, who invest their own money in startups or early-stage operating businesses. It is possible to find angel investors through platforms like the Angel Capital Association or AngelList, but they can also be personal acquaintances or members of your professional network. Angel investors are a good option for business pitches or pre-revenue startups because they are often experienced individuals who can provide guidance in addition to funding.

Venture capital

Venture capital (VC) is a type of equity financing that’s similar to angel investing, but instead of wealthy individuals, VCs are usually investing on behalf of a venture capital firm. In general, VC can be a little more difficult to qualify for, and firms usually get involved after angel investors have already made initial investments. VC may be best fit for early-stage, high-growth businesses that have started operating already.

Equity crowdfunding

Equity crowdfunding is a form of equity financing that draws on groups of online investors, some accredited and some not, to fund businesses. Crowdfunding platforms allow potential investors to learn about businesses or business pitches through online profiles created by the business owners. Some may find less pressure in raising capital on crowdfunding platforms, which may make equity crowdfunding a good option for less experienced entrepreneurs or smaller businesses. However, online investing poses additional risk of fraud, so you want to be diligent about the platform you use. In addition, issuing more shares, however small, may dilute your ownership and increase costs more than using an angel investor or VC.

Alternatives to equity financing

Small-business loans. Small-business loans are a common type of debt financing, and a fair alternative to equity financing. Loans can be either term loans or lines of credit, and may come from banks, online lenders, credit unions or nonprofit lenders like community development financial institutions (CDFIs).
Small-business grants. If you want to avoid taking on debt and keep control of your business, and you don’t need a ton of funding, consider looking for small-business grants instead. Grants can be tricky to find and usually don’t fund in large amounts, but they can be worth it for funding that you don’t need to pay back.
Self-investing. Tapping into your own savings can be a way to maintain full ownership of your business and avoid paying any interest. However, you risk losing your savings if your business fails, so it’s best to seek the advice of a financial professional to determine whether this option is right for you.
Friends and family. If you have friends or family members you trust and who support you and your business, they may be willing to provide funding. Though this may feel less formal than receiving funding from a bank or other financial institution, you should still create a contract that details the terms of the loan.

Source: nerdwallet.com

Apache is functioning normally

January 12, 2024 by Brett Tams

Although what lies ahead in the world of real estate and mortgage services in 2024 remains a bit uncertain, it’s now crystal clear that, beyond the already-tired suggestion that we “survive until ’25,” quite a few businesses will be seeking to find additional sources of revenue.

One potential stream that quickly comes to mind is the potential of capturing title and closing business. Accordingly, we’ve already seen any number of builders, mortgage lenders and real estate firms building new affiliated business arrangements (ABAs) or entering into partnerships that put them into the game for settlement services revenue.

That activity will only increase as we move through the year. Here’s why.

The full impact of the Burnett verdict has yet to be seen

The final disposition of the Burnett vs. NAR decision likely won’t be seen for years as the result works its way through the courts. For the most part, many brokerages and real estate agents on the buyer’s side of the transaction have continued on with a “business as usual” approach until we have certainty as to the true impact. And yet, in combination with what remains an uncertain market, more and more teams and brokerages will likely have the incentive to increase revenue and remove the uncertainty from the buying side well before they have to.

It’s entirely possible we’ll see the continuation of the trend towards team selling in the wake of Burnett. It’s not hard to imagine an approach where the listing agents take the lead on the front end of a transaction while a team of buyer agents works with them in the background. Such an approach would likely tend toward a transactional, brokerage-focused revenue model.

In these cases, it would be logical for teams and brokerages not only to seek out additional revenue, but to retain greater control over a transaction from start to finish, which affiliated title operations can bring. In building such arrangements, the real estate firm would have greater control over the experience, hopefully speeding the process from start to finish and delivering a smoother overall customer experience. It won’t be the first time this industry loudly extols the virtues of one-stop shopping.

Here’s who will be seeking to build and grow ABAs…and who shouldn’t

Naturally, until we see a significant upturn in overall origination volume, it won’t just be brokerages and teams seeking to build ABAs or enter into title partnerships. Lenders and builders have also shown a heightened interest at a time when construction materials remain costly, labor costs and pay rates are elevated and interest rates remain high.

At the same time, a more controlled closing experience could help address closing delays arising from the lender’s side or the construction process. While it’s easy for a third-party closing firm to point fingers and shift the blame in such instances, an affiliated operation is “part of the team.” No one will be thrown under the bus in such situations. Accordingly, there are multiple compelling reasons for lenders and builders to consider an affiliated title operation.

Far too often, however, a non-title business will focus on the potential for new revenue without fully considering the cost and the burden that comes with building any new business.

To slightly oversimplify it, a true affiliated arrangement likely won’t pass regulatory scrutiny if the arrangement isn’t being run like a viable business, with any and all partners not fully engaged. Businesses hoping to simply refer their customers to an affiliated arrangement in exchange for a cut of the settlement fees have learned this the hard way.

So when should a builder, real estate firm or lender consider other alternatives to an ABA, such as partnering with an existing title agency? For starters, if there’s no long term strategy (IPO, build to sell in five years) in place, the arrangement is off to a bad start. “Let’s see how we do” is not a strategy for starting most businesses and it won’t work for an ABA, either.

Other offshoots of this philosophy (or lack thereof) include the parent business not having some way of actively being involved in the day-to-day operation of the ABA. Or perhaps the venture is woefully undercapitalized because of mistakes in building out a pro forma and business strategy.

Do you have a plan for how the affiliated operation will capture new business — and not just from your own operation? For many reasons, this can get overlooked as well, and it’s seen often in affiliated arrangements that fail quickly.

Finally, geography — often the impetus for building an ABA or entering a partnership with a title agency — is a major factor in planning an affiliated title operation. Where will the business come from? State by state and sometimes, even county by county, the new operation will have to undergo the same licensing (and compliance processes) any other new title business would. This takes time, expertise and funding. You might even be required to have a brick-and-mortar operation in that state or county.

If you’re not planning to invest sufficiently in such requirements, chances are that some other form of true partnership with a title or escrow firm might be a better alternative.

When is an affiliated arrangement the best option for real estate firms, lenders and builders?

For those considering the process of building an ABA, the answer should be “yes” to each of the following questions if an ABA is truly right for you.

Are you planning and willing to treat the ABA like a new business with a long term strategy and exit plan?
Are you truly aware, either from your own experience or with the help of an experienced, successful title professional who has actually built a successful title operation in the real world, of all of the expenses that come with a start-up title operation?
Do you have a viable sales model, beyond expecting all new business from the parent company of the ABA?
Have you arranged for sufficient capitalization?
Finally, do you have qualified people and effective, sustainable systems in place?

Building an affiliated title operation can be a fantastic means of capturing new revenue, which is why ABA activity generally spikes during slower market conditions. But it’s critical to understand that it’s anything but simply agreeing to send the new operation most or all of your clientele in return for a percentage of the fees. You don’t have to be an attorney to know that’s the biggest no-no RESPA provides.

Building a truly successful ABA requires strategy, experience, planning and above all, commitment. While many real estate brokerages and professionals will very likely look to ABAs in the uncertain aftermath of the Burnett decision, it’s important they realize that there’s much more to it than that.

Aaron Davis is the CEO of AMD Enterprises, a conglomerate of eClosing, technology, settlement services and consulting services which includes Florida Agency Network, Closingsuite.com, Premier Data Services and Network Transaction Solutions.

Source: housingwire.com

Apache is functioning normally

January 12, 2024 by Brett Tams

Whether you’re taking your first steps or fine-tuning your strategy, understanding the fundamental language of real estate is paramount. In this post, I’ll cover the top 5 real estate investment terms that are essential for every investor’s toolkit. From cash flow to leverage, these terms form the bedrock of successful investing. I think it is also important to know the right meaning for these terms and many people stretch the meanings or completely change them!

So, let’s dive in and equip ourselves with the knowledge that will shape our journey towards financial prosperity.

1. Cash Flow – The Foundation of Financial Success

Let’s start with a term close to every investor’s heart – cash flow. Beyond the straightforward inflow and outflow of funds, it serves as the cornerstone of financial success in real estate. It is one of the primary metrics I use to make purchase decisions. I also look at how good the deal is and how much value I can add.

Many people will tell you that cash flow is simply the rent minus the mortgage and insurance. However, if you want to know the true cash flow you will need to know all of your expenses. Here is an example of what true cash flow looks like:

Rent: $2,000
Mortgage: $1,100
Taxes: $200
Insurance: $200
Hoa: $50
Vacancies: $100
Maintenance: $200
Property management: $180

One investor might tell you the cash flow is $500 a month but they are leaving out many of the expenses the property will incur over time. The true cash flow would be -$30!

Determining cash flow requires a variety of calculations, so I’ve created a calculator to help you out: InvestFourMore Cash Flow Calculator

2. Cap Rate – A Metric for Strategic Decision-Making

Cap rate, a metric mostly used on commercial properties and multifamily housing gives an idea of what the property will make without financing and what the property is worth based on the NOI or net operating income. The basic formula is:

net income / price = cap rate

The Cap Rate formula may seem simple enough but it can be manipulated very easily. Investors may not include all the expenses in the NOI or they may use projected income instead of actual income. Never take these numbers as absolute without digging into them.

You can use my calculator here: InvestFourMore Cap Rate Calculator

3. ROI – Evaluating Investment Performance

Return on Investment (ROI) serves as the scorecard for your property’s performance. As a pair to cash flow, ROI helps you determine what the property will make based on many factors like loan pay down, appreciation, and value add. Cash flow looks at what the property makes on a monthly basis and ROI looks at the big picture.

ROI is not easy to figure because some years may have a huge increase in value thanks to adding tenants or making repairs while other years may have much more modest returns. You would figure ROI on an annual basis and may want to separate out first-year ROI from the later years’ ROI because of those jumps in value.

Below is a video of a value-added play I invested in recently.

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4. Leverage – Maximizing Potential While Mitigating Risks

Leverage is the prime weapon of real estate investors if you are looking to scale quickly. With leverage, you only invest a fraction of the total purchase price, which can cause your returns to be significantly higher than investing in something like stocks. To achieve leverage, you use financing. Financing is one of the most important aspects of investing in real estate. You can make more money with loans than by paying cash.

On this site, I talk about the many different, creative ways you can finance real estate investments.

5. Equity – The Silent Wealth Builder

Equity, an often-underestimated force in wealth accumulation, goes beyond property values, embodying true ownership.

equity = current market value - amount financed

Equity can be built slowly through market appreciation and loan pay down. You can also build equity by adding value and getting great deals on properties. I prefer to use both! Many people may say equity does not matter because it is not cash in hand, but it can become cash in hand by using a cash-out refinance, or selling. You can even use a 1031 exchange to sell and not pay taxes on the profit.

Thanks to leverage and equity, my net worth has skyrocketed to over $10 million just from real estate.

What’s the best way to invest in real estate?

Even better, you can use equity and leverage together to purchase additional properties and scale up your business using the BRRRR method.

Conclusion

This primer serves as a solid foundation for fundamental real estate investment terms. As you navigate real estate, I invite you to explore the extensive resources on InvestFourMore, where a wealth of data-driven insights and strategies await.

Feel free to engage with the community, sharing your experiences or seeking guidance. Here’s to your continued success in the world of real estate investment – stay informed, stay strategic, and keep building your path to financial prosperity!

Build a Rental Property Empire

Source: investfourmore.com

Apache is functioning normally

January 11, 2024 by Brett Tams

Life insurance is a type of insurance policy that can provide the policyholder with something almost priceless: the reassurance that loved ones will have the financial support they need after the insured person passes away. More technically, it is a contract between the policyholder and the company providing the insurance coverage.

Whichever way you define it, it’s an important tool that can protect those who depend upon you most if you weren’t here to financially care for them.

Let’s take a closer look at what it’s all about and how it can help give your loved ones a financial safety net — and give you peace of mind.

What Is Life Insurance?

Let’s give you an overview of this important product:

• Life insurance is a kind of a contract between a policyholder and the company issuing the insurance. Specifically, that policy guarantees that the beneficiaries who are named will receive, upon the death of the insured, a sum of money known as a death benefit.

• For this kind of coverage, the policyholder pays premiums during their lifetime. They must also disclose details like their health status and some facets of their lifestyle to be insured.

• Life insurance comes in two main varieties: term insurance, which covers you for a specific time period (or term), and permanent insurance, which covers you for however long you live, even if that’s 110!

Life insurance comes in many different forms and with an array of features. But at its core, it can be thought of as a way of making sure that your loved ones have a financial cushion when you aren’t here. Consider these scenarios:

• Let’s say you have a non-working spouse: Life insurance will mean they are covered so housing, food, and other expenses are provided for.

• Perhaps you have toddlers and want to know that, no matter what, their college tuition will be paid.

• Maybe you have a relative who can’t live independently and you will sleep better at night knowing their care will be taken care of if you weren’t here.

We’ll review the options and specifics in more detail so you have all the info you need to pick the right policy for you. Ready? Here we go!
💡 Quick Tip: The group life insurance offered by employers is a nice perk, but it may not be enough to cover your financial obligations. A supplemental life insurance policy can bridge the gap.

How Life Insurance Works

Let’s define some of the life insurance terms you are likely to hear used when you’re shopping for a policy. Here’s what they mean and how they function to give you the coverage you’re hoping for:

• Death Benefit: It’s a scary term, we hear you! But it’s the crux of life insurance policies. This is the lump sum payment that will be paid out at the time of your death to your beneficiaries if you die while covered by a life insurance policy. It can go a long way towards keeping them in good financial shape. Btw, a death benefit is usually not subject to the usual income tax.

• Beneficiaries: These are the people who receive the death benefit from your life insurance policy. You can name one or more people who you want to be covered. (You can also name trusts and charities.) Beneficiaries usually have plenty of flexibility in how to use the funds. Depending upon the specifics of the financial situation and of policy payout, someone might choose to pay off a mortgage loan, for example, or make monthly payments to stay current.

• Premium: This is the monthly or yearly payment you make to the life insurance company to pay for your coverage and keep your policy in effect.

• Cash Value: Permanent life insurance policies have a cash value savings component that grows over time and can be used or borrowed against.

Types of Life Insurance

Now, let’s take a look at some of the main types of life insurance you might be interested in: term life versus whole life.

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Term Life

As the name suggests, this insurance covers you for a specific term or length of time (think 10, 20, or 30 years, though other lengths are often available). This works well for people who want to know that, say, if anything were to happen to them, their non-working spouse would be able to pay the mortgage for the remaining term. Or if you have children and you want to be sure their educational costs are taken care of if you were to die. Typically, term life insurance is more affordable than permanent life insurance. Worth noting:

• Regular payments must be made to keep the policy active.

• Payments on term life insurance policies are typically fixed.

• If the term ends and you are still alive, that’s great! But you probably don’t get any refund of premium payments.

Permanent Life

This kind of life insurance covers you for your entire life. Whenever you die, your beneficiaries will receive their lump-sum death benefit. What’s more, these policies have a cash value; that is, some of your payments go into a savings vehicle on a tax-deferred basis that you can then tap or borrow against. Because of this extended coverage and the savings function, permanent life insurance is the costlier option, with the price often ranging from five to 15 times that of term life insurance. Permanent life insurance comes in an array of options. Let’s spell out a couple of common ones:

• Whole Life: These life insurance policies provide a death benefit as well as the cash-value account. The latter may have a guaranteed rate of return, and as it grows, there may be dividends paid that can be put towards your premium payments or reinvested in the cash-value account.

• Universal Life: This kind of policy gives you more options than whole life. For instance, you can possibly alter your premium payments, and the cash value will accrue in different ways. Its growth might be tied to an indexed fund like the S&P 500; you’ll hear these life insurance policies referred to as an indexed universal life policy. Or you might prefer what is known as a variable universal life policy. These usually have varied investment accounts that you can manage as you like.

Guaranteed Acceptance or Simplified Issue Life Insurance

These are policies that allow the applicant to avoid the medical examination that is usually required for life insurance. (These are brief exams that often involve a blood draw and urine sample, to chart factors like cholesterol that might influence the cost of your policy.) These forms of insurance can be good for people who don’t like doctor’s appointments, who fear learning what these tests might reveal, and also who want to considerably shorten the time it can take for approval of a policy with what’s known as medical underwriting, which can equal a couple of months.

In Guaranteed Acceptance life insurance, as the name implies, you can’t be turned down; your medical status isn’t an issue. However, you will probably be offered a small death benefit (say, $25,000) and rates will be higher than with some other forms of life insurance.

With Simplified Issue life insurance, the applicant may only have to answer a few questions about their health, no exam required. With these kinds of policies, however, the full death benefit may not be paid unless the policy has been held for two years; if the policyholder dies before then, a refund of premiums may be paid out.

Type of insurance	Period of Coverage	Benefits	Downsides
Term Life Insurance	For a finite period of time (say, 5-40 years)	• Affordable • Term is tailored to your needs	• You might outlive the policy’s term • When the policy is over, your premium payments aren’t refunded
Permanent Life Insurance	For your entire life; your beneficiaries will definitely receive a payment	• Peace of mind that loved ones are covered • Cash value savings account	• Expensive
Guaranteed- or Simplified-Issue Life Insurance	A permanent policy that ensures a small benefit when you die	• No medical exam needed • Easy to apply for • Quicker approval	• Lower coverage amount • Expensive • Death benefit may not be paid if policyholder dies within a few years of getting the insurance

Type of insurance

Period of Coverage

Benefits

Downsides

Term Life Insurance

For a finite period of time (say, 5-40 years)

• Affordable

• Term is tailored to your needs

• You might outlive the policy’s term

• When the policy is over, your premium payments aren’t refunded

Permanent Life Insurance

For your entire life; your beneficiaries will definitely receive a payment

• Peace of mind that loved ones are covered

• Cash value savings account

• Expensive

Guaranteed- or Simplified-Issue Life Insurance

A permanent policy that ensures a small benefit when you die

• No medical exam needed

• Easy to apply for

• Quicker approval

• Lower coverage amount

• Expensive

• Death benefit may not be paid if policyholder dies within a few years of getting the insurance

What Does Life Insurance Cover?

Life insurance covers a variety of expenses. Here are some common examples:

• Unpaid debt

• Medical expenses

• End-of-life expenses

• Monthly expenses, such as utilities, food, and rent or mortgage payments

• Replacement of lost income, if the policy owner was still working at the time of their death

• Child care or dependent care

• Cost of education

• Charitable contributions

It’s important to note that there are certain circumstances when life insurance may not pay out. Examples typically include:

• Suicide, if the policy owner ends their life within two years of purchasing a policy

• Death as a result of acts of war or terrorism

• If the policyholder’s beneficiaries murder them or play a role in the murder

• Death as a result of risky behavior or a profession that involves dangerous activities, like professional car racing or flying a private plane

Which Type of Life Insurance Is Right for Me?

So, now, how do you know what type of policy is best for you? Here’s some food for thought. People often choose term life insurance for one or more of these reasons:

• Finite timing: They expect to have saved up enough money or paid off debts by the time this policy expires and would therefore not need to have their income replaced. Or perhaps they believe their beneficiaries will be financially independent by the time the policy expires.

• Affordability: The policy is more affordable and, therefore, easier to fit within their budget.

Whole life policies typically have premiums that are up to 15 times the cost of term life, and some people may prefer to purchase term life — and then personally invest the difference between a term life premium and a whole life one.

That said, there are plenty of people who decide permanent life insurance is right for them. Here are some typical reasons:

• Long-lasting: This type of insurance is designed to be in force throughout the policy holder’s life, which provides a complete sense of security.

• Cash component: This insurance type has a cash value component, as well, which serves as a savings vehicle. The policy holder can borrow against the value at a predetermined interest rate.

• Possibility of “cashing out”: Some people may like having the ability to surrender their whole life policy during their lifetime and receive the cash value of it. Doing so, however, can have tax implications that can be discussed with a tax professional.

How Much Life Insurance Coverage Do You Need?

Everyone’s situation is unique when it comes to getting life insurance. You may have more kids than, say, your brother. He may have a bigger mortgage. One of you may be more concerned about eldercare costs for your parents down the road. There is no one number that says how much coverage is right for either one of you.

But there are helpful formulas that can help you figure out a sensible amount of coverage. One popular option is the DIME formula. The acronym stands for Debts, Income, Mortgage, and Education. Here’s how to use this formula.

Debts

Gather your debt information, from car loans to personal loans, and from student loans to credit card balances. Forecast out for the number of years you want coverage for. In other words, add up everything that’s owed outside of mortgages.

Income

Take the household’s annual income and multiply it by ten (if you are contemplating a 10-year term, that is). This will provide a ballpark estimate of what it would take to replace lost income during that period of time.

If the life insurance policy would be needed to provide financial support for more than ten years (perhaps because there are young children in the household), use a higher multiplier.

Mortgage

Home loans are usually the largest debt of a household, and often have the longest term. As part of calculating the amount of life insurance to take out, include the payoff on mortgages.

Doing so can help to prevent loved ones from taking on the burden of the house payment expenses and/or from potentially being foreclosed upon.

Education

If there are outstanding student loans, they can be incorporated into the life insurance amount. Also consider children who might have future tuition expenses at college, along with their housing costs, textbooks, and so forth.

When adding up debts, income, mortgage, and education (DIME), what is the total dollar amount? This can be a benchmark for the coverage amount of a life insurance policy. If you have any assets, such as a savings account, you can subtract that from the total dollar amount to get a more accurate picture of the possible financial need.
💡 Quick Tip: Term life insurance coverage can range from $100K to $8 million. As your life changes, you can increase or decrease your coverage.

How Much Does Life Insurance Cost?

Life insurance costs will vary tremendously since each person has their own special needs. You might want $300,000 in term life insurance for 20 years and pay one premium. Or maybe you’d prefer $3 million in permanent insurance. Of course, there will be a big difference in those premium payments!

Let’s look at a few scenarios so you have a ballpark idea of costs, but the best way to get prices that reflect your situation is by working with an agent or using a simple online calculator:

• For a 20-year term policy: For $250,000 of coverage, a 30-year old female would pay $142 a year; a male would pay $159, according to an analysis conducted by Forbes. For $500,000 of coverage, the same woman would pay $204, while a man would pay $246. If we scoot the benefit up to $1 million, the annual cost would be $320 for a woman and $399 for a man.

• For a 30-year term life policy: For $250,000 of coverage, a 30-year-old female would pay $198 a year; a male would pay $235. For $500,000 of coverage, the numbers would be $317 and $381; for $1 million, the annual premium would be $525 for a woman and $669 for a man.

• For permanent life insurance, the costs tend to be higher. One recent quote from Forbes saw that $500,000 of coverage in a 30-year term policy would cost approximately $357 a year for a 30-year-old man. A $500,000 whole life policy would cost $4,323 per year, or almost 6 times more.

Of course, there are huge variations in the price of policies. As you see from the above numbers, if you get term life insurance for a longer period, you’ll pay more than for a shorter period. Also, the more coverage you buy, the higher the premium.

Now, let’s look at a few of the factors that influence the cost:

• Age and gender: The older you are, the more expensive a life insurance policy will be, as health issues tend to crop up. Also, since women have a longer life expectancy than men, their rates are usually lower.

• Your health: Those in excellent health will pay less than those who, say, have high cholesterol or blood pressure and a family history of cancer.

• Lifestyle: This includes everything from whether or not you smoke, have a history of substance abuse, and have a clean driving record, to factors like whether your job or hobbies are deemed high-risk (for example, flying airplanes, scuba diving).

What Is the Process of Buying Life Insurance?

Here’s what to expect from the life insurance buying process:

• Once you decide what kind of policy you want and have an idea of the coverage amount, it’s a good idea to explore your options and get some free quotes. You can talk to a life insurance agent or do your own research online; there are many tools that put the information you want just a click or two away.

• Expect to be asked questions about your health, your family history, your hobbies, and your lifestyle as you shop and apply. This is an important step in figuring out your risk factors and life expectancy, which is used to set your rates.

• Once you’ve found a policy and insurer that you like, fill out that carrier’s application as completely as possible. The application will be reviewed as part of what’s called the underwriting process. The carrier will look at the application through the lens of potential risk. In other words, they will review the application to determine how risky it would be to issue a life insurance policy to that particular applicant — and then price it accordingly.

• For many policies, a medical exam is part of the process. Applicants are asked and should honestly answer about family health history, personal health and lifestyle, prescriptions being taken, surgeries performed, and so forth. A physical exam is often done. This can include a height and weight check, the taking of blood pressure, as well as urine and blood samples.

• After that, you have completed your application. For policies that involve a medical exam, it can take 6 to 8 weeks to be informed of your approval.

Choosing a Beneficiary

Once your application is approved, an important step will be choosing your beneficiary or beneficiaries. This is the person or people who would receive the death benefit if you pass away while covered by a life insurance policy. A few points to consider:

• You can name more than one person and determine the percentage of the death benefit each would receive.

• You can name contingent beneficiaries in case a beneficiary dies before the policyholder does.

• You don’t have to name a person as a beneficiary. You can also work with a lawyer to set up a trust and have the death benefit used as you determine.

• It’s wise to review and update your beneficiaries regularly once you have a life insurance policy. A new baby, a divorce, and other events can trigger you to alter your selections (changes can be made at any point).

Can a Beneficiary Make a Claim?

No one wants to think about death, but it’s a fact of life. It’s also the event that a life insurance policy is inextricably linked to; the death benefit is there to support loved ones after the policyholder passes away. So let’s spell out what would actually happen in this situation:

• Notification of death: The insurer will probably pay claims quickly, usually within a month or in as little as a week, but paperwork must be filed and the beneficiary may have to inform them of the death. The issuer of the policy may not know otherwise.

• Death certificate: The beneficiary must submit a certified copy of the death certificate, which the insurance company will keep.

• Make sure you have satisfied all claim requirements: When actually submitting your claim, have all the supporting documentation attached. This can include a claim form and death certificate.

That’s it! Also, here’s a good thing to know: You don’t need a copy of the insurance policy to file a claim, just the name of the insurance company and the fact that you are a beneficiary.

Making Policy Changes

Life insurance often is a part of your life for a very long time, decades and decades. Sometimes, people will want to change some aspects, such as the amount of the death benefit or the company that is providing the policy. Let’s look at how that works:

• Coverage amount: Let’s say you started with a $500,000 policy, but now, five years into it, want to double the coverage. Can you? The answer to this can vary by the insurance company. Some carriers provide flexibility in their policies that allow a policy holder to change the coverage amount. If considering a particular insurance company and this flexibility is important, ask that question before taking out the policy.

• Switching providers: Consider changing the policy first. You may be able to save time and money by amending or adding to your current policy instead of replacing it. Also, there can be surrender charges that you need to pay if you give up a permanent policy so you can sign on for a new one elsewhere.

What’s more, if you are switching policies after a number of years with one insurer, you are older now, and the rates will be higher. Swapping policies may not actually save you money. It’s often best to go through underwriting and get approved for the new policy first, see how the features and prices compare, and then decide whether or not to cancel the original policy and sign up for a new one.

• New policy waiting periods: If you are thinking of forging ahead with a change, note the waiting period. Most new policies have a waiting period before certain kinds of death benefits become effective. Consider this before replacing your old policy.

Life Insurance Riders

One way to make a change to your life insurance policy involves riders; think of these as add-ons that can help tailor your coverage to your evolving needs. Riders deliver additional benefits; yes, you’ll pay extra, but the amount is usually low because not much underwriting is required.

For instance, if you are the sole provider for your family, you might want to add an Accidental Death Rider, which would increase the amount of the death benefit if a fatal accident occurred. Or maybe you want to explore a Long-Term Care Rider, which would help pay expenses were you in need of nursing home or in-home care. Talk with an agent or explore options online to learn more.

Life Insurance Benefits

There are many benefits of life insurance, but perhaps one of the biggest is that it can offer loved ones a financial cushion in the event you die. That money can be used to cover a wide range of expenses, and it’s generally not taxed by the federal government. (Note that any interest you receive from the policy does need to be reported.)

If you purchase a whole life policy, it has a cash value that grows over time tax-deferred. You can cash it out at any time to help pay for a major expense or to borrow against it.

Reasons to Buy Life Insurance

Here are some common reasons why you may want to consider a life insurance policy.

• Life insurance helps replace your income if you die, which can be especially useful for any beneficiaries who depend on you financially.

• The death benefit your beneficiaries receive can be used to pay for your end-of-life expenses, debts, medical expenses, or estate-related expenses.

• Life insurance can be used to pay federal and state “death” taxes so your loved ones don’t have to shoulder the costs themselves.

• Life insurance can allow you to create an inheritance for your heirs, and the money is usually tax-free.

• You can make a significant gift to a beloved charity after you pass away by naming the organization the beneficiary of your life insurance.

How to Shop for Life Insurance

When you’re ready to look for a policy, you have a couple of places to start your research: online or talking with an agent who’s licensed by your state’s insurance department.

No matter which route you choose, you’ll likely find that the prices of life insurance policies will vary. Though it can take more time, getting multiple quotes can help you find the best deal for your needs and budget.

As you’re weighing your options, consider looking into the financial rating of each insurer. The Insurance Information Institute recommends going with “a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.”

Life Insurance Alternatives

Although life insurance can provide loved ones with a financial safety net after you’re gone, you might be able to get a similar result with another type of vehicle. Here are some common alternatives to life insurance to consider exploring:

• Investments. Investing may be able to potentially grow your wealth, which you can leave behind to loved ones after you’re no longer here. Just remember that there’s a degree of risk involved with investing. Plus, proceeds may be subject to estate taxes and probate.

• Accidental death & dismemberment insurance (AD&D). Like the name suggests, AD&D is a type of supplemental life insurance that provides coverage to your beneficiaries if you’re killed or seriously injured in a type of accident that’s covered in the policy.

• Annuities. An annuity guarantees a certain amount of income each month during retirement. Here’s how it works: You pay into an annuity for a predetermined number of years. After that, the insurance company pays you back the money in monthly installments. Note that some annuities charge fees, and if you pass away prematurely, the value of the annuity might decrease.

The Takeaway

Life insurance can be a challenging topic to dig into. But take heart: Part of what makes it seem complex is that it’s designed to meet the needs of so many very different people. Whatever the specifics of your situation and lifestyle, there is probably a policy that can give you peace of mind.

By acquainting yourself with the basic concepts, terms, and processes, you’re now ready to go out and find a life insurance policy that will let you know your loved ones will be well-provided for if a worst-case scenario occurred (though we sure hope it doesn’t!).

SoFi has partnered with Ladder to offer competitive term life insurance policies that are quick to set up and easy to understand. Apply in just minutes and get an instant decision. As your circumstances change, you can update or cancel your policy with no fees and no hassles.

Explore your life insurance options with SoFi Protect.

FAQ

How is life insurance paid out?

Generally speaking, life insurance is paid out in a few different ways. It can be distributed as a lump sum, through a retained asset account, or by way of a life insurance annuity. Contact your insurer to find out which options are available.

Why is life insurance worth it?

Life insurance can provide the policyholder peace of mind that their loved ones are financially protected after they pass away.

How long do you have to pay life insurance before it pays out?

It depends on your plan. Some plans have a waiting period before coverage begins. If you die during that window, your beneficiaries only receive a refund on the premiums you’ve paid.

Can you use life insurance money for anything?

Yes. Once your beneficiaries receive the death benefit, they can generally use the money however they wish.

Coverage and pricing is subject to eligibility and underwriting criteria.

Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.

Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.

SoFi Agency and its affiliates do not guarantee the services of any insurance company.

All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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.

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.

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Source: sofi.com

Apache is functioning normally

January 10, 2024 by Brett Tams

If you’re in the market for a home, you may have come across the term “single-family home” and wondered what it means and if that is what you are looking to buy.

Generally, a single-family home refers to a freestanding home set on its own piece of property. It can be occupied by a single individual or a large family, as long as it’s occupied by a single household.

Owning a single family home comes with a number of benefits, including more privacy and space than other types of residential properties. However, this type of home also tends to come with a higher price tag and more responsibility. Here’s a closer look at what single family homes are and the pros and cons of buying one.

What Is a Single-Family Home?

Generally speaking, the term single-family home refers to a home that is designed for, occupied by, and maintained by one person or household. When you buy a single-family home, you will own both the home and the property it sits on. This is in contrast to other types of properties, such as condominiums (condos), where you only own the interior of your unit and share ownership of common areas with other homeowners in the complex.

In most cases, a single-family home is defined as one that is freestanding and not attached to homes owned by other individuals. However, the government has a broader definition. According to the U.S. Census Bureau, a single-family home includes fully detached homes, as well as semi-detached row houses and townhouses. In the case of attached units, the units must be separated by a ground-to-roof wall in order to be classified as a single-family structure. Also, these units must not share heating/air-conditioning systems or utilities.

In some places, a single-family home is defined in part by how many kitchens it has. Depending on zoning laws, adding a second full kitchen to an in-law’s apartment, for example, can cause a house to be redefined as a multi-family building. If you’re planning on doing this type of renovation, be sure to check local zoning laws beforehand.

Whether a home is classified as a single-family or multi-family home can have an impact on the type of mortgages you qualify for. Both single-family homes and two- to four-unit properties fall under residential lending guidelines. (A property with five or more units is considered commercial property.) You can use a conventional mortgage to purchase a home with four or fewer units, whether it’s a single- or multi-family home. If you’re buying a multi-family home with five or more units, you must use a commercial mortgage. Commercial mortgages have different terms than residential mortgages do.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.

First-time homebuyers can
prequalify for a SoFi mortgage loan,
with as little as 3% down.

Pros and Cons of a Single-Family Home

As you shop for homes, it’s important to consider the various advantages and disadvantages of a single-family residence.

Some of the advantages are:

• More space Single-family homes tend to offer more space than other types of housing, and it belongs to you alone. They may have large yards where children and dogs can play or where you can plant a vegetable garden. They may also have storage in attics, garages, or basements, which aren’t shared between multiple units.

• Privacy Single-family units that don’t share walls with neighbors offer more privacy. You are less likely to hear neighbors’ activities, and they are less likely to be bothered by yours.

• More design features Single-family homes may be available in a broader range of designs and layouts, from Cape Cods or colonials to ranch homes and contemporary designs. You can also make changes to the building or landscape design without input from neighbors with a shared interest in the space.

• Room to grow Single-family homes may offer you more options for additions if you have a growing family or if aging parents may come to live with you. For example, single family detached homes with larger plots of land may allow additions that wouldn’t be possible in condo units.

• May offer higher appreciation Single-family homes tend to appreciate in value more than condos and townhouses.

• Option to rent As the sole owner of a single-family home, you have the option to rent out the house if you decide to move and wish to hang on to the property.

While these factors are attractive, it’s important to weigh potential disadvantages of buying a single-family home as well. Here are some to keep in mind:

• More expensive Single-family homes tend to be more expensive than other types of homes. That can mean a larger down payment and higher closing costs, and your mortgage payments may be higher.

• More maintenance Unless your single-family home is part of a homeowner association (HOA) that provides basic services, you’ll be in charge of all home maintenance like lawn mowing and roof repairs. You’ll either have to take the time to do it yourself or hire help.

• Possible HOA fees Planned developments usually require HOA fees to cover the upkeep of common areas and shared structures.

• Less income potential With multi-family homes, you have the option to live in one unit while renting out the others. This allows you to bring in regular income to cover the cost of the mortgage and maintenance expenses.

Finding a Single-Family Home

Before you start looking for a single-family home, you’ll want to first determine how much home you can afford. You might start by calculating mortgage costs and getting prequalified for a home loan; prequalification often only takes a few minutes and provides an estimate of how much you might be able to borrow and at what rate (without impacting your credit).

You’re probably already searching real estate listings online and noting the property types. You might also want to do some research on housing market trends, especially if you live in one of the nation’s real estate hot spots.

You may also want to engage a real estate agent. They have expertise in local housing and zoning laws, know whether a list price is fair or above or below average, and can help you negotiate the price of a home you’re interested in buying.

If there’s any question about how a house is zoned, you can often look up zoning information through a particular city’s website.

Recommended: First-Time Home Buyer’s Guide

Who Should Get a Single-Family Home?

Single-family homes are a good fit for people who can cover the higher price tag, want privacy and flexibility, and are willing to take on a lot of responsibility.

If you qualify as a first-time homebuyer, there may be help available to buy a single-family home in the form of down payment assistance and low- or no-interest loans.

If you’re looking for a more affordable home and don’t mind giving up some privacy, you might want to consider a condo or townhouse.

A condo is like an apartment but is available for purchase. These units share walls with neighboring units, but you generally won’t have to worry about maintaining the property.

A townhouse, on the other hand, has multiple stories and will share one or two walls with other units. Like condos, townhouses are typically less expensive than single-family homes. Unlike a condo, you’ll own the property that the townhouse sits on.

If you’re looking to invest in real estate, you might consider buying a multi-family home. While this will likely cost more than a single-family home, you may be able to recoup the added cost (and, over time, earn even more) by collecting rent from tenants.
💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple.

If You’re Thinking of Purchasing a Single-Family Home, SoFi Home Loans Can Help

Single-family homes are one of the most popular real estate options and often what people envision when they think about achieving the dream of home ownership.

This type of property typically sits on a parcel of private property and doesn’t share walls with neighbors, affording you a high level of privacy. You generally have more control over making enhancements to your home than you have with other types of properties, and usually have access to extra storage, including exterior storage space like a shed or garage.

However, don’t forget to consider the added responsibilities and costs when deciding on the right type of home for you and your family.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% – 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It’s online, with access to one-on-one help.

SoFi Mortgages: simple, smart, and so affordable.

FAQ

How much does a single-family home cost?

The median price for an existing single-family home — one that’s already standing, not new construction — was $387,600 as of November 2023, according to the National Association of Realtors.

How much do I need to build a single-family home?

The cost of building a single-family home (not including land) can range anywhere from $42,000 to $900,000-plus depending on the home’s type and size and where you build. On average, the cost to build a house in the U.S. is about $329,000.

Can you get a loan to build a single-family home?

If you’re planning to build a single-family home from scratch, you can apply for a construction loan. With this type of loan, money is usually advanced incrementally during construction, as the home-building project progresses. Typically, you only pay interest during the construction period. Once the construction is over, the loan amount becomes due, and it is converted into a regular mortgage.

Photo credit: iStock/Dean Mitchell

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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Source: sofi.com

Apache is functioning normally

January 10, 2024 by Brett Tams

Inside: Looking for delicious, budget-friendly meals? Look no further! This guide has 100+ delicious and frugal recipes that will help you stick to your food budget.

When it comes to keeping your grocery budget in check, meal planning is a powerful tool. It can simplify your life, save you precious time, and stretch your dollars further.

You don’t always need pricey ingredients to whip up something delicious. Creating frugal meals doesn’t mean you have to compromise on flavor.

Sometimes, a frugal meal could mean something cheaper but equally, if not more, delicious than takeout! The key to this art is using simple, inexpensive ingredients, being creative in their application, and not shying away from condiments, herbs, and spices that can elevate your dish.

Remember, eating frugally is not just cost-effective but also simple and stress-free, utilizing common kitchen staples, and easy-to-locate items.

Join me on my mission to make frugal meals that are adored by my family and my thrifty self appreciates.

Frugal Breakfast Ideas:

A frugal breakfast should not equate to boring. Here are a few ways to start your day off right without stressing your wallet:

Waffles/Pancakes: These could be made with basic ingredients like flour, eggs, and baking powder. Top with peanut butter or dust of cinnamon sugar for extra flavor!

Eggs: Cooked to your preference, be it fried, boiled, or scrambled, they are not only easy on the pocket but also a rich source of protein.

Oatmeal: Buy oats in bulk and pair them with over-ripe bananas, pumpkin butter, or a sprinkle of brown sugar. It’s a hearty and filling for just about anyone.

Muffins: Basic muffin ingredients include flour, eggs, and baking powder. For an element of surprise, add in nuts, blueberries, or mashed bananas.

French Toast: With eggs, cinnamon, and loaves of French bread, you can whip up a scrumptious breakfast.

Homemade Bread/Toast: If you’re up to the task, making your own bread could be a money-saving option. This is something I do with sourdough bread. Pair the fresh bread with either sweet or savory toppings.

Omelets: Eggs are a cheap source of protein. Whip up an omelet and serve it with your choice of inexpensive veggies.

Homemade Biscuits: Biscuits are a great addition to any frugal breakfast, with just “milk” and flour ingredients. Pair them with a little meat or enjoy them in butter. Just like my great Aunt Marie made at the ranch.

Choose Spice for Breakfast: This recipe for Mexican baked eggs uses budget friendly canned beans and eggs as a protein source. It’s super simple to make in less than 30 minutes, with eggs baked in a smoky, spicy tomato sauce with black beans, poblanos, and corn. Serve with plenty of corn tortillas for a super satisfying meal.

Frugal Lunch Ideas:

Lunch should be something to look forward to, even if you’re on a tight budget. Here are frugal lunch ideas that keep your tummy and your wallet happy.

Salad: A salad is an excellent choice for a frugal lunch, it’s both cost-effective and healthy. Based on what’s available in your fridge, you can combine different vegetables, proteins, and dressings to create a filling and tasty meal every day.

Sandwiches: The humble sandwich can be as frugal or as lavish as you like. Tuna, grilled cheese, peanut butter, and jelly, ham… you name it, sandwiches offer a great variety.

Homemade Soup: Consider creamy potato soup, creamy vegetable soup, or even curried cauliflower soup. They can be light yet fulfilling, and the ingredients are reasonably priced.

Toast Pizza: Save money by using toast as your pizza base, add what you have in the fridge, top it off with cheese, and cook it under the grill or in the oven.

Baked Potatoes: A toasty baked potato with butter is a delightful, inexpensive lunch. Top it up with fillings such as cheese or broccoli.

Remember, lunch doesn’t have to be expensive to be delicious! Use what you have at home for a more sustainable, economical, and satisfying meal.

Frugal Dinner Ideas:

Dinner is the time when families come together, share their day, and unite over food. There’s a common misconception that frugal foods are bland and monotonous. However, you don’t have to spend a fortune to make dinner delicious and satisfying.

Spaghetti: Who knew that the ultimate comfort food could be so cheap? Combine spaghetti with homemade tomato sauce or cheese, add your favorite seasonings, and voila! You have a delicious meal.

Baked potatoes: Fully customizable and super simple to be a dinner game-changer. Top them with cheese, sour cream, or any other leftovers like chili!

Stir Fry: This is a perfect way to use up any veggies you have. Throw in some meat if you have it, cook with rice and tasty sauce, and your stir fry is ready!

Tacos: Pick up tortillas, get ground beef, or use dried beans, lettuce, and salsa, and there you have your Taco night. You can also swap out the beef for beans, and it’ll still taste delightful.

Breakfast for Dinner: Who said breakfast foods are only for mornings? Whip up scrambled eggs, toast, or pancakes, and enjoy a breakfast-style dinner!

Creating a delicious, nutritious, and frugal dinner can be easier than you might think. It’s all about making the most out of the resources you have, every day.

Recipe Breakdown : Variety Of Frugal Meals

Satisfying Soup & Salad Recipes on a Shoestring

When it comes to frugality, nothing beats the soup and salad combination. These meals are not only hearty and satisfying but also easy on your wallet. With just a few ingredients, these recipes will bring variety and nutrition to your kitchen without putting a strain on your wallet.

Here are a few of our favorite frugal soup and salad recipes:

The Best Chicken Soup Recipe: Simplicity meets flavor without breaking the bank. Utilizing affordable ingredients and leftover chicken, this soup is a testament to how economical choices can still yield rich, comforting results.
Cauliflower and Bacon Soup:
Instant Pot Three Sisters Soup: A blend of corn, beans, and squash.
Root Vegetable Soup: Healthy, comforting, and made with only a few simple and inexpensive ingredients! It’s prepared with veggies like carrots, parsnips, rutabaga, and potatoes simmered in a savory broth.
Healthy Roast Pumpkin and Sweet Potato Soup: Winter favorite loaded with nutrients.
Instant Pot Cabbage Roll Soup: Comfort food at its best.
Smoky Black Bean Soup: Protein packed, tasty, and hearty.
Hearty Lentil Soup: Healthy and will keep you warm during the winter! It’s made with only a few ingredients and requires no special equipment. This soup is made with lentils, veggies, and spices simmered in a savory tomato broth.
Vegan Coconut Curry Lentil Soup: Exotic, aromatic, and down-right delicious.
Instant Pot Split Pea Soup Recipe: Classic soup, ready in no time.
Vegetable Barley Soup: With protein-rich chickpeas, cabbage, potatoes, and the twist of curry spices, this soup is easy, comforting, and delicious!
The Very Best Ham And Potato Soup With Peas: Savory, delicious and economical.
Cheap and Easy Hamburger Soup: Mouthwatering and super easy to prepare.
Creamy Vegetarian Potato Soup: Originally named 45-Cent Potato Soup because that was how much it cost per serving over a decade ago! The cost has increased a bit but this hearty potato soup is still a keeper. Creamy potato soup with veggies and milk – thick, velvety, and hearty. It’s on constant rotation at our house!

Moreover, when it comes to salads, using seasonal produce, beans, or leftover veggies can be an affordable way to create nutritious meals. Add chicken, tuna, or boiled eggs for protein, or keep it simple with fresh greens and a homemade dressing.

Remember, a frugal lifestyle does not mean you have to compromise on taste or variety. It’s about being creative with what you have!

Cut Costs with these Cheap ‘n Cheerful Chicken Recipes

Dinner necessity is the mother of so many amazing chicken dinners! Plus it is an excellent protein option that can be inexpensive, especially if you seize sales or buy in bulk.

Maple Chicken & Potato Supper: This recipe turns an affordable cut of chicken and two types of potatoes into a family favorite.
One-Pot Chicken and Potatoes: Chicken thighs are cheap, add in potatoes, onions, and carrots for a hearty comfort meal.
Leftover Chicken Curry and Vegetables: Lots of recipes use leftover chicken or turkey. But this “All the Leftovers” Chicken Curry also uses your leftover vegetables. Clean out your refrigerator today!
Instant Pot Chicken Tortilla Soup: A quick, deliciously rich, and slightly spicy meal made up of chicken, black beans, and stewed tomatoes.
Crockpot Chicken Tacos: With just 3 ingredients and 5 minutes of prep, this is a lifesaver for busy nights.
Chicken Curry and Quinoa: Simple, tasty, and feels like a treat without the expense.
One Pan Baked Chicken Thigh Recipe with Green Beans and Red Potatoes: This recipe is easy and inexpensive when you grab the chicken thighs on sale! It is easy to prepare, a healthier option and a family favorite!
Cheesy Chicken Quesadillas: A perfect, weeknight meal.
Slow Cooker Chicken Thighs with Potatoes and Carrots: A value for money meal with chicken thighs – one of the cheapest chicken cuts.
One-Pan Chicken Legs with Chickpeas and Quinoa: A wholesome, naturally sweet dish with a few spices.
Easy Cheesy Chicken Taco Spaghetti: Made with pantry staples, this comforting dinner recipe is frugal and filling. Full of pasta, creamy sauce, and canned chicken, your family will be asking for seconds!
Chicken Fried Rice: Uses leftovers efficiently, add veggies, and you have a meal.
Easy Pizza Chicken Recipe: A low carb and high protein meal, especially when you use ordinary cheddar.

Remember, maximizing flavor in cheap chicken recipes often relies on using good quality, inexpensive ingredients, and cooking techniques like slow cooking or sautéing. Happy cooking!

Beautiful Beef Dishes that Benefit Your Wallet

When trying to maintain a frugal lifestyle, using affordable cuts of beef like ground beef, shin, or skirt steak can yield mouth-watering meals that don’t bust the budget. Here are a few beef recipes that are both economical and satisfying:

Ground Beef Stroganoff: A classic comfort food that is simple, quick, and incredibly hearty.
Poor Man’s Stew: An excellent choice for a filling, cheap, and tasty meal for a whole family.
Simple Hamburger Hotdish: This simple hamburger hotdish (casserole) makes delicious use of affordable and easy-to-find ingredients like ground beef, pasta, and tomato sauce. This is a great meal idea to feed a family.
Beef Skillet Nachos: Layer chips, ground beef, and cheese in a skillet for an easy, cost-effective meal.
Homemade Beef and Noodles: An economical-friendly classic that can serve a good number of people.
Tortellini Bake: This 4 ingredient Tortellini Bake uses common ingredients like ground beef and marinara sauce to make a satisfying and hearty meal for families!
Cheesy Ground Beef and Rice Casserole: Across the realms of deliciousness and frugality, this casserole rings the bell.
Beef and Tomato Macaroni Soup: Combining the wholesome elements of beef, macaroni, and tomatoes provides a satiating meal at an affordable cost.
Beef and Vegetable Stir Fry: Brimming with colorful vegetables and protein-rich beef, this dish is a delight to both the stomach and the wallet.
Taco Skillet: It’s the taste of tacos in a convenient and cost-friendly rice skillet.
Classic Stuffed Peppers: Filled with a mixture of ground beef, rice, and a zesty sauce, it’s a comfort meal that’s easy on the pocket.
Sesame-Ginger Beef: This dinner calls for an inexpensive cut of meat.

By creatively utilizing budget cuts and leftovers, you can create economical, hearty, and tasty beef dishes for yourself and your family, fostering a love for cooking while sticking to a money plan.

Money-saving Meatless Meal Marvels

When it comes to cost-saving, meatless or vegetarian dishes are a winner. Not only are they usually cost-effective, but they’re also often packed with nutrients. Here are meatless recipes that are sure to delight your taste buds, without denting your wallet:

Quinoa Edamame Salad with Peanut Sauce: Use cabbage and edamame to make a balanced lunch. The peanut sauce is flavor-packed and uses pantry staples, and the quinoa is easy to swap with rice or pasta.
Vegan Lentil Curry: Packed with nutrition, this dish makes an inexpensive, protein-rich meal.
Jamaican Rice and Peas: Economical rice and beans doesn’t need to be boring. Jamaican rice and peas are easy to make in the slow cooker. This flavorful, easy recipe brings delicious Caribbean flavor to any meal as a side dish or a complete meal on its own.
Spinach Lasagna Roll-Ups: Proof that vegetarian dinners can be delightfully hearty, this twist on classic lasagna is a crowd-pleaser.
Bean, Tomato, and Spinach Stew: A hearty and richly flavored dish that is low cost and satisfying.
Vegan Texas Tamale Pie: Great down-home, budget-friendly meal is perfect to whip up when you need something hearty, healthy, and filling to serve to your hungry family or friends in under an hour. Prepared with basic canned ingredients you might keep in your cupboard, this simple recipe can be easily adjusted to suit your tastes with the groceries you have on hand.
Stuffed Bell Peppers: Fill peppers with a delicious mixture of quinoa, black beans, tomatoes, and spices.
Eggplant Parmesan: Classic Italian dish, easy to make, and delicious to eat.
Pasta e Fagioli aka Pasta and Beans: Feed your family for pennies a bowl with pasta e fagioli. Cucina povera Italian food is the food of peasants, but it is so delicious! Only three inexpensive ingredients are needed to make this quick and easy, nutritious, one pot weeknight meal.
Potato & Zucchini Frittata: Use up your leftover veggies and whip up a quick frittata for dinner.
Tomato Basil Soup with Grilled Cheese: A classic that’s both inexpensive and palate-pleasing.
Vegetarian Stir-Fry: A colorful medley of veggies stir-fried in a savory sauce served over rice.
Spaghetti aglio e olio: This spaghetti aglio olio (with garlic and olive oil) is probably one of the most popular classic Italian pasta recipes and yet it’s so simple, budget friendly and super easy to make!
Butternut Squash Risotto: This dish, while sounding fancy, is frugal and straightforward to make.
Vegan Spaghetti Bolognese: This is a rich, hearty, and flavorful dish that’s lighter on the wallet than traditional bolognese.
Crispy Pan Fried Gnocchi: A simple and quick & inexpensive recipe to make in only 20 minutes for an easy weeknight meal. Crispy gnocchi coated in a light sauce made with garlic, herbs, butter and parmesan.

Implementing meatless meals can significantly cut down on grocery bills, with the added bonus of being healthier and environmentally friendly.

So why not give these recipes a try for your next frugal feast?

Luscious Low-Budget Lunch Ideas

The midday meal can often be overlooked when planning budget-friendly meals. Don’t let lunch blow your allowance! Here are a few low-cost, lip-smacking lunch ideas:

Bean Burritos: Beans and cheese wrapped in a tortilla can be quite satisfying and light on the pocket too.
Tuna Salad Sandwiches: A classic frugal lunch option that’s rich in protein.
Egg Salad Wraps: Egg salad in a wrap is a fulfilling lunch that’s economical.
Homemade Hummus and Veggies: Prepare hummus at home and pair it with fresh veggies for a light and inexpensive lunch.
Mixed Bean Salad: Beans are a powerhouse of nutrition and offer a low-cost lunch option. Mix different beans and dress them up with herbs and spices for a flavorful lunch.
Veggie and Cheese Stuffed Potatoes: A cheesy baked potato with veggies is filling and affordable.
PB&J: Peanut butter and jelly never go out of style and are a great low-cost lunch option.
Tuna Tomato Pasta: Tuna tomato pasta is a delicious healthy and easy recipe that only takes 20 minutes to make. With just a few basic ingredients it’s budget friendly too!
Falafel Wraps: Homemade falafel is quite reasonable and can be wrapped up with pita and fresh veggies for a satisfying meal.
Pasta Salad: Cold pasta salad with veggies is a cheap and filling lunch idea.
Vegetable Fried Rice: Leftover rice, mixed with whatever veggies you have on hand, makes for a delectable and affordable lunch.

When your lunch is as tasty as it is affordable, you’re winning at the game of frugality. Enjoy these luscious lunch ideas without breaking the bank!

Delightful Dinner Recipes That Don’t Dig A Hole In Your Pocket

Dinner is the meal you eagerly look forward to after a long day. Unfortunately, it can also be the priciest meal of the day. But it doesn’t have to be! Here are delightful, cost-effective dinner recipes:

Sloppy Joe Pasta: A homemade mix of pantry staples for a mouth-wateringly filling, budget-friendly twist on the classic Sloppy Joe.
Easy Chilaquiles: Fresh made tortilla chips smothered in homemade salsa, chilaquiles are the best way to make a flavor-packed meal on a budget!
Cottage Pie: Make a delicious cottage pie in the instant pot pressure cooker from scratch. Ideal for using up leftovers and easy to make!
Chicken Pot Pie: Homemade and padded out with cheap, seasonal veggies, it’s a classic favorite, perfect for a weeknight dinner.
Mince & Potato Stew: Heartwarming, flavorful dish that’s easy to make and easier on the pocket.
Linguine with Clam Sauce: Using canned or jarred clams, this linguine dish is made from simple pantry ingredients that won’t break the bank. Dive into a dinner of delicious choice for yumminess.
One Pot Sausage, White Beans, and Kale: It combines flavorful sausage, rich canned tomatoes, white beans, fresh kale, and a few herbs and spices – a cupboard-friendly, inexpensive dinner option.
Tacos: They’re versatile, they’re delicious, and most importantly, they’re cheap.
Potato and Salmon Fish Cakes: Canned salmon and potatoes create a delicious, inexpensive dinner the family will love. They are super easy to make and you can freeze them, too. Even those who dislike salmon enjoy these fish cakes!
Asian-Style Chicken Noodles: This recipe uses leftover chicken and packs a lot of flavors without a lot of cost.
Pasta Arrabbiata: This inexpensive pasta dish is full of garlic, tomatoes, and spicy red pepper flakes. Simple, yet incredibly delicious.
Garlicky Spinach and White Bean Pasta: This recipe is packed with flavor thanks to a surprise, budget-friendly ingredient – tinned anchovies! Simply toss cooked pasta with spinach, white beans, and a garlicky anchovy sauce. It’s easy to throw together for a satisfying weeknight dinner.
Egg Fried Rice: It’s a quick, healthy meal that anyone can cook.
Leftover Pasta Bake: Don’t waste food! Turn your leftovers into a treat with our leftover pasta bake!
Vegetable Stir Fry with Noodles: A quick, healthy dinner full of veggies and flavor.

Low-cost does not mean low taste. These dinner recipes prove just that. So get cooking and start saving!

Put it in Pot and Forget It – Cheap and Easy Crockpot Creations

Using a crockpot or slow cooker can be a real lifesaver for busy individuals or families. Not only does it save time but it’s also a great way to save money by making inexpensive cuts of meat tender and flavorful.

Slow Cooker Spicy Chicken Soup: A simple 4 ingredient recipe that’s inexpensive yet tastes amazing.
Slow Cooker Sausage and Peppers: Slowly simmered in marinara sauce for a frugal dinner that’s hard to beat! Just serve over pasta or polenta for an easy dinner. Plus, the leftovers are just as delicious for lunches.
Crockpot Beef and Broccoli: The economical version of your favorite takeout dish.
Slow Cooker Black Bean Soup: Inexpensive, full of flavor, and so hearty!
Creamy Crockpot Chicken: Warm shredded chicken and gravy in your slow cooker for the win.
Crockpot Baked Beans: Cheaper and healthier than store-bought!
Crockpot BBQ Chicken: Sweet, tangy, and made with a handful of pantry staples.
Crockpot Lentil Soup: Super hearty, packed with nutrients, and so easy to whip up!
Slow Cooker Pot Roast: The easiest one pot meal and is an instant win for family dinner! Plus, it’s budget-friendly! Easy to prepare for weeknight meals or special occasions alike, this easy pot roast recipe is always a crowd-pleaser!
Slow Cooker Salsa Chicken: Just two ingredients are required for this super versatile recipe.
Crockpot Vegetable Beef Soup: Healthy, hearty, and incredibly easy to make.
Chicken Paprikas Recipe: Use chicken thighs and cauliflower which make it a super frugal meal. If you prefer you can serve it over rice instead of the cauliflower but even her kids agree that the cauliflower version is delicious.
Slow Cooker Mac and Cheese: Yes, even mac and cheese can be done in a crockpot! Even better try this Broccoli Mac Kielbasa Casserole.
Crockpot Ham and Bean Soup: This recipe uses inexpensive and filling beans and veggies, perfect for when you’ve leftover ham.
Slow Cooker Vegan Chili: A vegan twist on this classic comfort food for those chilly days ahead makes for a healthy dinner packed with nutrients brimming with flavor!

Each of these meals will serve you without making a significant dent in your grocery budget. Enjoy the convenience and frugality that slow cooking brings!

Make It Snappy With Instant Pot Recipes

The Instant Pot is a versatile kitchen appliance that’s excellent for fast, delicious meals when you’re on a budget.

Instant Pot Ground Beef Enchilada Pasta: This easy dish combines a few affordable ingredients into a hearty meal that your family will love.
BBQ Beans Instant Pot Recipe: A frugal recipe that’s great as a main dish or a filler for burritos.
Easy Pizza Potatoes in the Instant Pot: A simple pairing of pizza flavors and potatoes for a wallet-friendly dish.
Air Fryer Pita Bread Pizza: Only 5 minutes and a handful of low-cost ingredients to a delicious DIY pizza.
Sweet Potato, Lentil and Chickpea Curry: This vegan instant pot recipe is full of flavor, super hearty and delicious, and extremely reasonable to make.
Mushroom Masala- Mushroom Curry: An exotic and easy-to-prepare mushroom curry that satisfies without stretching the dollars.
Chicken and Sausage Paella in the Instant Pot: Cut down cost by using sausage and chicken thighs for this easy, savory dish.
Instant Pot Tuna Casserole: Comfort on the cheap, using pantry staples.
Fast and Easy Instant Pot Chicken and Rice: Made using basic pantry staples and suitable for both adult and kid taste buds.

These Instant Pot ideas are not only quick and easy to prepare but also budget-friendly. They’re proof that frugal doesn’t mean boring!

Handy Kitchen Tools for Budget-Savvy Cooking

When it comes to frugal cooking, your kitchen gadgets can be your best companions. These tools can save you both time and produce restaurant-quality dishes at home for a fraction of the cost.

Many are the same as frugal home must haves!

Only rely on tools that you use regularly in order to maximize their cost. So, equip your kitchen with these practical, cost-effective tools, and enjoy a more manageable culinary journey.

FAQs: Navigate Your Approach to Cost-Efficient Eats

Eating lunch at work doesn’t have to mean spending a fortune, following these tricks can save you a lot of money:

Meal prep: Plan your meals ahead of time. Invest in a few hours during the weekend or your day off to cook large amounts and portion them out for the week ahead.
Leftovers Are Your Best Friend: Make a bit extra while cooking dinner, and voila, you’ve got lunch for the next day. A yummy, cheap, no-fuss, and no-waste solution!
Pack Your Own Snacks: Trade small shop-bought packs of snacks for a large bag or bulk-buy from a wholesale store. Divide them into small reusable containers for your daily hunger itch.
Invest in a Flask: A good quality thermos flask can keep your homemade soup or stew warm until lunchtime and it’s a lot cheaper than buying soup from a cafe.

Remember, the key is not to take complicated dinners which takes a lot of time. Rather, simple sandwiches, yogurt with fruits, homemade soup even boiled eggs can make great inexpensive lunch options. Planning ahead is key when you’re trying to eat on a budget.

There are several cheap meals you can whip up using budget-friendly ingredients. The absolute cheapest would depend on what you already have on hand in your pantry or the cost of ingredients in your locality.

Rice & Beans: This is a universally cheap and filling meal that can be flavored with some stock, onions, and spices.
Pasta with Tomato Sauce: This is a popular choice when it comes to cheap ideas. All it takes is a rigatoni of your choice, a basic tomato sauce made from canned tomatoes, garlic, and herbs.
Cereal & Milk: A bowl of generic brand cereal and milk is an incredibly cheap meal. It lacks in terms of proteins and fats, but it can be a good quick fix.
Eggs on Toast: Eggs and bread are both cheap elements. Whip up scrambled eggs or make a simple boiled egg sandwich.
Potato Soup: One of the cheapest vegetables around, and they make a filling, simple potato soup.
Homemade Pizza: Using basic homemade dough and simple tomato sauce, you can add anything you have on hand to make a delicious pizza.

Remember, the cheapest dinners typically use basic pantry staples. By having a well-stocked pantry, you’ll be able to whip up a variety of low-cost dinner ideas.

A frugal meal doesn’t equate to scanty or tasteless. Here’s what defines a frugal meal:

Inexpensive Ingredients: Frugal meals predominantly use cheaper ingredients. Find plenty of cheap foods when broke (and you don’t need to be broke).
Fewer Ingredients: Meals with minimal ingredients are typically more economical. They aren’t stuffed with fancy extras, but they make up for it in hearty flavor.
Uses Pantry Staples: Rely on pantry staples like rice, dried pasta, canned goods, and dry baking ingredients.
Repurposes Leftovers: Instead of wasting ingredients incorporate leftovers in innovative ways.
Meal Prep and Batch Cooking: Cooking in bulk and freezing dinners for later can be a massive money saver, reducing waste and reducing the number of ingredients needed overall.
Limited Meat or Vegetarian: As meat is typically one of the more expensive ingredients, frugal cooking is often vegetarian or uses meat sparingly.

While frugal meals won’t always hit all these factors, if they contain a few of these aspects, you can be assured they will provide a cost-effective dining experience. A frugal meal strives to offer nutritional balance, satisfying taste, and minimal impact on your wallet.

Perfecting the Art of Frugal Cooking

Preparing budget-friendly cooking not only saves money but also reduces food waste and can create a warm, comfortable home. This is how to be frugal with food. Here are some expert tips to get you rolling:

Plan Your Meal Calendar: Plan out your menu for the week, keeping in mind what ingredients you already have.
Shop Smart: Shop for groceries with a list in hand so you don’t end up buying unnecessary items. Look out for sales, and discounts, and try to shop in bulk.
Utilize Leftovers: Don’t throw away leftovers. Repurpose them into a new meal or use them as an ingredient in another dish.
Use More Vegetables and Grains: Vegetables and grains are generally cheaper than meat and can be used to bulk out dinners.
Freeze Extras: If you cook in bulk, freeze the extra portions for a later date. This can act as a lifesaver during busy periods.
Use Cheap Cuts of Meat: Cheap cuts, such as chicken thighs, can be just as delicious as expensive ones, especially when slow-cooked.
Cook from Scratch: Convenience foods often cost a lot more than the sum of their parts.
Grow Your Own: If you have a garden, consider growing your own vegetables and herbs.
Reduce Waste: Get creative in the kitchen and use parts of food that you’d otherwise throw away.

Remember, with a bit of planning and creativity, you can prepare delicious, healthful meals without breaking the bank! It’s all about making smart choices.

Which Filling Cheap Meals are You Going to Try?

Embarking on these frugal meals can help stretch the budget while still enjoying a variety of flavorful and satisfying dishes.

Whether you are budgeting on a low income or just want to stretch your dollar further with going teens, we have given you plenty of options to eat well and healthy.

Many on this list are my personal favorites. This is how we stay on our grocery budget.

The biggest step is learning how to meal plan and stick to the menu! Now, off to move frugal living tips to save money!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

Apache is functioning normally

January 10, 2024 by Brett Tams

I bought my first rental property in 2010 and I admit it was much easier to buy rentals that cash flowed back. At least it was easier in my area in Northern Colorado. A lot of people wish they could go back in time to buy investment properties (me included) but no one has invented a time machine yet. Wishing for the impossible will do you no good. Since we have to live in reality can you still make money in today’s market with rental properties?

Why is it harder to buy rental properties in 2024?

It is harder to invest in real estate in 2024 due to multiple factors.

Interest rates are much higher than they have been for decades. High-interest rates are making it tougher on everyone in real estate. The high rates make it harder to cash flow no matter what prices are. They also make it harder to refinance properties which can be a big part of investing in rentals.
Housing prices are higher than they have ever been. Now, in most markets housing prices will always be higher than they ever have been, that is how the economy and inflation works. However, prices are still high and that makes it tough to buy rentals that make money.
There is record low inventory in most areas of the country. When there are fewer homes for sale it makes it harder to find deals which is what most real estate investors are looking for.
Many areas of the country are enacting tenant-friendly laws that make it harder on landlords. Rent control, free attorneys for tenants, no-cause evictions are all making it harder on landlords.
There is a growing ideology claiming landlords are evil and hurting society because they raise prices and take housing away from owner-occupants.

It is important to know that even though these things make it harder for real estate investors trying to buy now, rising prices have made many existing real estate investors very rich. Landlords also help the housing market, they do not hurt it.

How do you make money with rentals in today’s market?

I hope I did not scare everyone off with the doom and gloom of the last section of this article. However, there are still ways to make money with real estate in today’s market. How do you make money with rentals?

High interst rates make it tougher to make money but they are coming down and they should continue to decrease over the next couple of years. Real estate investors have made money with higher rates for decades even if it is harder to do so.
Housing prices are higher but there are still good deals out there. There will always be good deals no matter how high prices are. The key to investing in real estate is getting a good deal whether you or flipping or buying rentals. Good deals can make up for all of the other issues.
While there are few houses for sale right now there are still houses and multifamilyl and commercial real estate for sale. Real estate investors also do not need to buy only properties that are for sale. There are also off-market deals that can be just as good or better than on-market deals.
There are a lot of areas that are enacting more laws against landlords. However, there are still many areas that are landlord-friendly and I made list of the best states for landlords here.

It may be tougher to invest in real estate now than ten years ago but it is still definitely possible to make money with rental properties.

What strategies can you use today to make money in real estate?

It might not work to buy a single-family house in Denver or Seattle or Miami as a rental anymore if you want it to cash flow. While it might not work in every city there are still many areas where you can make money with single-family homes. There are also different strategies you can use to make money with real estate.

Invest in different markets. Not every market will work for every real estate strategy. It is really hard to start out as an investor in an expensive market. There are many markets with affordable real estate and while it is not easy investing in a different market could be the route to take.
Being a landlord may not be the right move for you right now. It is possible to flip houses and make money in some markets when you can’t make money with rentals in those markets.
Switching to a different type of rental may help as well. I switched from single-family rentals to commerical real estate in 2016. I also added in some multifamily properties as well. They often cash flow better than single-family rentals in expensive markets.
If you cannot afford to invest in your market, finding a partner may be another way to make real estate work in your area. Many people love to have their money in real estate but do not have the time to find the right investments.

While it is not easy to invest in real estate right now, it is rarely easy. Even when I bought my first rental properties many people (including those in the industry and in my family) told me I was an idiot. They told me the market would keep crashing and real estate would never come back. It was also tougher to get loans back then and there were not nearly as many educational sources about real estate either. I learned most of my strategies from reading books, some that were decades old that I hoped would still hold true when I was investing.

Conclusion

There is no perfect time to invest. The only way to know when the timing is perfect is years or decades after that time occurred. Waiting rarely works out but luckily there are many ways to invest in real estate even if rentals won’t work for you in your market right now. If you want to learn more about investing in other markets I put together a very detailed webinar on the subject you can watch below.

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Build a Rental Property Empire

Source: investfourmore.com