potential Archives - Page 230 of 258

Apache is functioning normally

August 3, 2023 by Brett Tams

Accessing and purchasing a stock at its initial public offering (IPO) can seem like a VIP invite to a party. In addition to the cache of being “in the know” about potential opportunities, IPOOwing to the excitement that can accompany news of an upcoming initial public stock offering (or IPO), many investors seek ways to learn more about these companies prior to the listing day. Fortunately, there are many resources and services that track upcoming IPOs.

Using these IPO trackers, it’s possible to learn more about the status of various public offerings.

For investors interested in buying IPO stock prior to its actual public offering day, that can be more complicated. If a company launches an IPO, it means that it’s only had private investors, such as angel investors, up to that point but it’s now ready to let other investors purchase shares.

When IPOs Are Offered to People Prior to Listing Day

When people talk about getting IPO stock at IPO prices, they may be talking about two things:

• The IPO offering price. This is a fixed price available to a limited group of people. This may include employees who were offered stock options as part of their compensation package, as well as certain investors who get access to the IPO fixed rate. This may be less than the share price set when the company goes public. All of these sales occur before trading day and can be tricky to navigate.

• The price of new IPO stocks once the company goes public. This is the price that is available to all investors and fluctuates based on market conditions.

Buying IPOs at their offer price can take some navigation, but that does not mean it’s impossible. Typically, offer prices may be offered only to certain brokerages.

One way that buying IPOs at offer prices differs from buying stocks already in the market: Only a certain number of shares are available to each brokerage, and they may be accessible to investors who have the highest account balances or meet other suitability requirements for trading IPO shares.

The trading process is also different: Instead of simply buying the shares, an eligible investor submits an indication of interest (IOI) letter. An investor’s ultimate buy order may be limited due to availability.

In part, this system evolved to protect investors who may be interested in IPO shares because of the headlines about fortunes made overnight. In reality, many investors have lost their fortunes when the IPO has not panned out.
💡 Quick Tip: IPO stocks can get a lot of media hype. But savvy investors know that where there’s buzz there can also be higher-than-warranted valuations. IPO shares might spike or plunge (or both), so investing in IPOs may not be suitable for investors with short time horizons.

How Do You Find Upcoming IPO Stocks Before Listing Day?

Investors who plan to wait until the unlisted stock debuts may find themselves frustrated that there is little prep time before the stock appears on the market.

The secrecy prior to an initial public offering reflects several factors: One is the registration process with the Securities and Exchange Commission (SEC). The company can not publicly sell or trade its stock until the SEC deems the registration statement effective.

Once the company has filed its registration, the company enters what’s known as a “quiet period” where it must adhere to restrictions on what and how much it communicates to the public.

Any “gun jumping” or public communication that nods or hints at an upcoming IPO may violate the Securities Act. But once a company registers with the SEC investors and stock market analysts will keep an eye out for the IPO.

Recommended: What Is the IPO Process? 7 Steps to Going Public

So, beyond combing through the SEC database, how can an investor find new companies going public? There are many resources:

Media Outlets

Media outlets often report on upcoming and rumored IPOs. Reading through market news can be valuable for new and experienced investors alike, allowing them to have an enhanced perspective on how the market is evolving and which companies may be poised to IPO.

Exchanges

Exchanges, such as Nasdaq, also have trackers on upcoming IPOs, although these are IPOs likely to debut within the next several days.

Brokerage News

Brokerages and financial institutions may also report on industry news and trends and may publish IPO tracking.

Vetting Upcoming IPOs

With a range of IPOs taking place in some years, qualified investors will need to vet any potential offering before they decide to add it to their portfolio. If you’re considering investing in a company as it goes public, you’ll want to comb through all of its public documents to see whether its financials look sustainable. Then, ask yourself the following questions:

• Do I understand the business and the potential investment risks?

• Is the IPO underwriter a well respected, major investment firm?

• How are other companies in this space performing?

• Do the financials justify the IPO price and company valuation?

Recommended: How to Value a Stock

The Pros and Cons of Investing in IPOs

Access to IPO investing can be exciting. It can make an investor feel like they’re investing in dynamic companies that may be shaping the way we live and work. But they can also be risky. Some companies that may get a lot of media attention may fail to live up to investor expectations. Other companies may hit bumps in the road as they adjust to being a public company facing investor scrutiny.
💡 Quick Tip: Investment fees are assessed in different ways, including trading costs, account management fees, and possibly broker commissions. When you set up an investment account, be sure to get the exact breakdown of your “all-in costs” so you know what you’re paying.

Pros of Investing in an IPO

• It can be exciting.

• There’s potential for significant profits.

• It can allow investors to put their money behind a company they may value, believe in, or otherwise want to be a part of in some small way.

Cons of Investing in an IPO

• While there’s potential for reward, there’s also risk potential that the IPO may flop.

• Market fluctuations may require active management and quick decisions when it comes to holding or selling.

• The volatility of investing in an IPO may require portfolio calibration so that other investments are less volatile.

The Takeaway

While it may be possible to find upcoming IPO stock before listing day, these shares are usually available only in certain circumstances to qualified investors. That’s partly owing to the careful regulation of the initial public offering process, but it also helps to protect eager investors from getting caught up in media hype and making a potentially risky investment on the spur of the moment.

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.

Photo credit: iStock/solidcolours

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results.
Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three 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—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.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 prequalification 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.

SOIN0623064

Source: sofi.com

Apache is functioning normally

August 3, 2023 by Brett Tams

Vehicles are expensive. For many people, a car or truck is the biggest purchase they’ll ever make other than a home. And monthly car payments reflect that fact.

As the price of cars rises, those monthly payments are getting higher. In fact, around 15% of people who financed a new car — and 5% of people who financed a used car — in the latter part of 2022 are paying $1,000 or more per month on those loans. So, it’s no surprise some individuals are struggling to make their car loan payments every month.

Whether you ended up with a larger payment than you planned or a drop in income is making your vehicle loan hard to keep up with, you aren’t alone. And you do have options. Find out how you can shed the responsibility of a car payment by using the tips below to transfer the car loan to another person.

In This Piece

Can Someone Take Over My Car Payments?

It’s unlikely that someone can simply step in and take over your car payments as the new owner of a vehicle. In most cases, car loans aren’t transferable. That means you can’t simply sign the loan over to someone else and call it done.

In theory, you could let someone drive your car and make the payments. However, the car—and the responsibility for it—still belongs to you. You might need to keep insurance on it, and if the person doesn’t pay the loan payments as you agreed, the fallout happens on your credit report, not theirs. In potentially rare cases, your car loan might be transferable. Check your loan contract to find out if this is the case.

How to Transfer a Car Loan to Another Person

What happens in those cases where a car loan is transferable? If you want to pass your car and loan along to someone else, you must do so by working through your lender. The potential new loan holder must fill out an application with your lender and meet criteria before you sign your title over.

The steps to transfer a car loan to another person will vary slightly depending on the lender. However, you can expect a process similar to the one described below.

Determine whether your loan contract allows for the loan to be assumed by or transferred to someone else. Start with your contract, but you can also call your lender to find out.
Get next steps from your lender for the process, if it’s allowed. Ask about fees associated with a car loan transfer, and make sure you know exactly what the assumption criteria are for new loan holders.
Have the new loan holder follow the required steps to apply for a car loan with the lender. If the individual desires to take over the payments with similar rates and terms, they’ll need to meet the required creditworthiness for the loan.
After the new loan holder is approved, the title can be modified. Your lender may help with this process, or you may need to go to your state’s Department of Motor Vehicles to have the title transferred. Be sure to transfer the title as soon as possible to avoid the potential for future liability.
Don’t forget that the new loan holder will need to show proof of auto insurance.

How Does Transferring a Car Loan Affect Credit Scores?

When you transfer your car loan, you technically close that account. It gets reported to the credit bureaus as a closed account, which can impact your credit. Specifically, it changes both your credit mix and credit age—both factors in how your credit score is calculated. Because of this, you might see a temporary drop in your credit score when closing an account.

The impact can be even more serious if you fall behind on your car payments before you transfer the loan. Payment history is the biggest factor in your credit score. So, falling behind by a month or more on your auto loan can cause a substantial drop in your score.

Other Options Instead of Transferring a Car Loan

Transferring a car loan can be difficult and isn’t always possible. Whether you want to keep your vehicle or simply need a more practical way out of the loan, there are other options.

Refinancing

In some situations, it’s the loan and not the car that’s unaffordable. For example, say you originally applied for the car loan when you only had fair credit. Now you have good credit and might qualify for better rates and terms, which could lower your monthly payment.

In this case, refinancing your loan so it better fits your budget might be an option. Compare refinancing options now.

Sell Your Vehicle

Another way to shed the financial burden associated with your car or truck is to sell it. If you can sell the vehicle for more than you owe on it, you might even end up with some extra cash in your pocket.

Voluntary Repossession

If you fail to make your vehicle loan payments long enough, the bank will repossess the car. That means it takes the vehicle and sells it to try to recoup its losses. Before you get to this point, though, you have a series of late payments tanking your credit.

In cases where you know you’re unable to catch up on payments, you might talk to your lender proactively. You can voluntarily surrender the vehicle to avoid the unpleasant forced repossession process. However, this still shows up on your credit report as a serious negative mark. And if the lender can’t sell the vehicle for what you owe, you might have to pay the difference.

Refinance With a Cosigner

Another way to keep your car while also making the loan payments more affordable is to refinance the loan with a cosigner. If the cosigner has good or excellent credit, you might get a lower interest rate and/or longer terms—both of which can reduce your monthly payment.

Can a Cosigner Take Over a Car Loan?

If you don’t pay the loan as agreed, the lender looks to the cosigner to make good on the loan. However, the cosigner can’t just decide they want to be the primary borrower, take over the loan and take ownership of the car. They’d still have to go through proper processes with the lender to refinance or transfer the loan, and you’d need to be involved.

Bottom Line

You generally can’t slide your auto loan booklet over to a friend and assume the matter is handled. However, if you can’t pay your monthly car payment, you may have some options. Research those options and speak to your lender as soon as possible to avoid potential financial hardship.

Source: credit.com

Apache is functioning normally

August 3, 2023 by Brett Tams

If you’re considering buying a house in Georgia, you’re embarking on an exciting journey towards homeownership in one of the most charming states in the U.S. Whether you’re drawn to a condo in Alpharetta, a historic house in Macon, or the scenic beauty of the Blue Ridge Mountains, Georgia offers a diverse range of real estate options to suit every lifestyle. However, for first-time homebuyers and homeowners, the process can be exhilarating and complex, involving crucial steps such as property research, financial preparation, and navigating legal intricacies.

This Redfin guide will shed light on the essential aspects of buying a home in Georgia, providing valuable insights to ensure a smooth homebuying experience in the Peach State.

What’s it like to live in Georgia?

One of the highlights of residing in the Peach State is its pleasant climate, with warm summers and mild winters, making it ideal for outdoor activities year-round. Whether exploring the pristine beaches along the Atlantic coast, hiking through the picturesque North Georgia mountains, or strolling through the charming streets of Savannah with its historic architecture and oak-lined squares, Georgia’s natural beauty never fails to impress. Moreover, the state boasts a rich cultural heritage, evident in its music scene, culinary delights like southern barbecues and peaches, and numerous annual festivals celebrating everything from arts to film and food. Check out this article to learn more about the pros and cons of living in Georgia.

Georgia housing market insights

The Georgia housing market has experienced some notable recent changes in demand and supply. While housing demand experienced a slight decrease this year, the number of available homes has declined by 3.6% year-over-year. Despite this shifting demand, the median sale price has continued its steady ascent, increasing by 1.3% compared to the previous year. The effects of these price increases are particularly evident in cities such as Calhoun, Redan, and LaGrange, which are among the metros with the fastest-growing prices.

Rising mortgage rates have played a significant role in deterring some buyers from entering the market. Nevertheless, several cities in Georgia continue to maintain a competitive edge. North Decatur, Cumming, and Sugar Hill, in particular, have remained at the forefront, holding their positions as the top three competitive cities in the state.

Finding your perfect location in Georgia

Georgia is diverse, offering a wide array of living environments, from bustling urban centers to tranquil rural communities and scenic coastal areas. Each region has a unique charm, amenities, and proximity to various attractions and services. You’ll want to choose the city that aligns with your preferences, such as access to quality schools, proximity to work, recreational opportunities, and cultural activities. Additionally, considering factors like home trends and what neighborhood you’ll live in can significantly impact your long-term investment and satisfaction with your home.

Using tools like a cost of living calculator will aid you on your journey and point you to which cities align with your needs. Here are five of the most popular cities in Georgia to give you a head start.

#1: Columbus, GA

Median home price: $207,000
Columbus, GA homes for sale

Along the scenic Chattahoochee River, Columbus provides residents ample opportunities to enjoy outdoor activities such as kayaking, fishing, and biking along the RiverWalk. The cost of living in Columbus is 9% lower than the national average, making Columbus a great city to check out. The city boasts a vibrant arts scene, with the RiverCenter for the Performing Arts hosting various cultural events and performances throughout the year. Columbus is also home to Fort Benning, one of the largest military installations in the United States.

#2: Augusta, GA

Median home price: $211,950
Augusta, GA homes for sale

Augusta is perhaps best known for hosting the prestigious Masters Tournament, attracting golf enthusiasts worldwide. The city’s picturesque landscapes, including the Savannah River and the Augusta Canal, provide outdoor activities like boating, fishing, and hiking opportunities. Explore some of Augusta’s charming suburbs, where residents can explore historical landmarks such as the Augusta Museum of History. The city’s revitalized downtown area, Augusta’s Broad Street, features a vibrant arts and entertainment scene, with art galleries, theaters, and local eateries showcasing the region’s diverse flavors.

#3: Savannah, GA

Median home price: $333,990
Savannah, GA homes for sale

Moving to Savannah, you’ll be surrounded by well-preserved antebellum architecture and oak-lined streets. The city’s rich cultural heritage is celebrated through various festivals, like the Savannah Music Festival and the Savannah Film Festival, adding to its lively arts and entertainment scene. With its proximity to the Atlantic Ocean, residents can indulge in beachside relaxation and water activities at nearby Tybee Island. The cost of living in Savannah is 9% lower than the national average, making Savannah a good place to live. The city’s warm climate makes outdoor exploration a joy, whether strolling through Forsyth Park, visiting the Mercer-Williams House, or taking a riverboat tour along the Savannah River.

#4: Athens, GA

Median home price: $341,000
Athens, GA homes for sale

As the home of the University of Georgia, Athens exudes a vibrant college-town atmosphere, with a dynamic music scene that has earned it the title “The Classic City of the South.” The city’s downtown area is brimming with quirky shops, local eateries, and live music venues, making it a hub for creativity and entertainment. Residents can explore cultural gems like the Georgia Museum of Art and the Georgia Theatre, contributing to the city’s rich cultural landscape. Athens’ lush green spaces, such as the State Botanical Garden and Sandy Creek Park, allow outdoor enthusiasts to enjoy nature and recreational activities. The cost of living in Athens is 7% lower than in Atlanta, and if this city interests you, check out some of the best Athens suburbs to consider living in.

#5: Atlanta, GA

Median home price: $439,200
Atlanta, GA homes for sale

As Georgia’s bustling cultural and economic capital, moving to Atlanta boasts a thriving arts scene, with renowned institutions like the High Museum of Art and the Atlanta Symphony Orchestra. The city’s culinary landscape is equally diverse, featuring restaurants offering global cuisines and Southern delights. Atlanta’s rich history is evident in its iconic landmarks, such as the Martin Luther King Jr. National Historic Site and the Atlanta History Center. Additionally, if you’re looking for affordable Atlanta suburbs, there are several options for a more budget-friendly location.

The homebuying process in Georgia

After finding your ideal neighborhood, you’re ready to jump into the homebuying process.

1. Prioritize your finances

Before embarking on this significant investment, assessing your financial health, understanding your budget, and determining how much you can afford is essential. This involves reviewing and increasing your credit score, as it greatly impacts your eligibility for a mortgage and the interest rates you may qualify for. Preparing the necessary documents, such as bank statements, tax returns, and pay stubs, streamlines the mortgage application process and increases your credibility as a serious buyer.

There are various programs available for first-time homebuyers in Georgia, including the Georgia Dream Homeownership Program – CHOICE, which can assist with up to $7,500 in down payment assistance.

2. Get pre-approved from a lender

Getting pre-approved from a lender is crucial when buying a house in Georgia, as it offers several significant advantages. Pre-approval involves a thorough evaluation of your financial situation by a lender, which clearly explains how much you can borrow and what type of mortgage you qualify for. Armed with this information, you can confidently search for homes within your budget, saving time and avoiding the disappointment of falling in love with a property that may be out of reach.

3. Connect with a local agent in Georgia

A local agent possesses invaluable knowledge of the Georgia housing market, including current trends, neighborhood insights, and property values. They can guide you in identifying areas that align with your preferences and budget, providing personalized recommendations tailored to your needs. So whether you need a real estate agent in Savannah or an agent in Atlanta, they’re here to help.

4. Start touring homes

During home tours, pay attention to the house’s interior and exterior features. Look for structural integrity, signs of maintenance or repairs, and the property’s overall condition. Consider the layout and flow of the rooms, ensuring they suit your lifestyle and plans. Assess the natural lighting, storage space, and functionality of essential amenities like the kitchen and bathrooms. Take note of the neighborhood’s proximity to schools, work, shopping centers, and other vital amenities.

5. Make the offer

When making an offer, it is essential to consider the property’s fair market value based on recent comparable sales and the current state of the real estate market in the area. Your real estate agent can provide valuable insights and guidance to help you formulate a competitive and reasonable offer. Once you’ve decided on the offer price, you’ll draft a written purchase agreement outlining the terms and conditions, such as contingencies, closing date, and financing details. This offer is then submitted to the seller or agent, who can accept, reject, or counteroffer.

6. Close on the house

The closing process involves a series of essential tasks, including signing legal documents, settling financial transactions, and disbursing funds. Buyers typically can review and sign various closing documents, including the mortgage agreement, title deed, and other necessary paperwork. Any outstanding fees, such as closing costs and property taxes, are settled during the closing, and the final purchase price is paid.

For more information about each step of the homebuying process, check out Redfin’s First-Time Homebuyer Guide.

Factors to consider when buying a house in Georgia

When buying a house in Georgia, there are several unique factors to consider due to the state’s diverse landscape, climate, and cultural nuances. Here are some unique aspects to keep in mind:

Natural disasters

Georgia experiences weather-related events, including hurricanes, tornadoes, and flooding, particularly in coastal and low-lying areas. Understanding the potential risks of these natural disasters can help you make informed decisions about the location and safety of your chosen property. Being well-informed about these natural disaster risks ensures that you can take necessary precautions and make sound decisions to protect your investment and ensure your family’s safety and well-being in your new home in Georgia.

Historic preservation

When buying a house in Georgia, it’s essential to be aware of the state’s historic preservation laws, especially in areas with rich historical architecture and cultural significance. Georgia takes pride in its historical heritage, and many cities, such as Savannah and Atlanta, have implemented strict preservation regulations to protect historic properties and districts. These laws may restrict alterations, renovations, and demolitions of a historic home to maintain their architectural integrity and historical value. As a potential homebuyer, understanding these preservation laws is crucial, as it may impact your ability to make certain modifications to the property.

Humid subtropical climate

For those considering buying a house in Georgia, it’s essential to be mindful of the state’s humid subtropical climate. Georgia experiences hot and humid summers, often exceeding 90 degrees Fahrenheit and high humidity. Winters are generally mild, but occasional cold snaps can bring freezing temperatures. Additionally, homeowners should consider landscaping choices that can withstand the heat and humidity. Mold and mildew prevention become essential concerns, and proper ventilation and insulation should be prioritized in the home.

Home insurance rates

Coastal regions, such as Savannah, Brunswick, and St. Simons Island, are particularly vulnerable to potential damage from hurricanes and storm surges. As a result, insurance providers often charge higher premiums to cover these risks. Homebuyers in these areas should carefully research and compare home insurance from different providers to find the most suitable coverage that balances protection and affordability. Additionally, homes located in flood zones may require separate flood insurance, adding to the overall insurance costs.

Buying a house in Georgia: Bottom line

Buying a house in Georgia offers potential homeowners a wealth of opportunities and experiences. With its diverse landscapes, vibrant cities, and rich cultural heritage, the state presents a range of choices to suit varying lifestyles and preferences. It’s important to be well-prepared, considering factors like the humid subtropical climate, natural disaster risks, and potentially higher insurance rates. By staying informed and connecting with local experts, buyers can confidently navigate the homebuying journey.

Buying a house in Georgia FAQ

What are the requirements for buying a home in Georgia?

Having a good credit score, typically around 620 or higher for conventional loans, is essential. It’s necessary to demonstrate stable income and employment to prove mortgage repayment capability, with lenders evaluating the debt-to-income ratio for manageable monthly payments. While the down payment requirement varies based on lender and loan type, it remains a crucial component. Additionally, obtaining pre-approval is vital for homebuying in Georgia, as it indicates readiness for securing a loan. To make an informed decision, conducting a property appraisal and home inspection is advisable to assess the property’s value and condition thoroughly.

What is the average down payment on a house in Georgia?

The average down payment on a house in Georgia typically ranges from 3% to 20% of the home’s purchase price. Conventional loans often require a down payment of around 5% to 20%, while government-backed loans like FHA loans may have lower down payment options, sometimes as low as 3.5% for qualified borrowers. It’s essential to consult with a mortgage lender or a real estate professional to determine the most suitable down payment amount based on your financial situation and the specific loan program you may qualify for.

How much does it cost to buy a house in Georgia

The cost of buying a house in Georgia can vary widely depending on various factors, such as the location, size, condition, and property features. The median sale price is $375,500 which is lower than the national median. However, home prices can range from below the median for smaller homes in more affordable areas to several million dollars for larger homes or properties in upscale neighborhoods. Factors like real estate market conditions, interest rates, and demand for housing can also influence home prices. Apart from the purchase price, buyers should also consider additional costs such as closing costs, property taxes, home insurance, and potential homeowner association fees.

Source: redfin.com

Apache is functioning normally

August 3, 2023 by Brett Tams

Social media is great for real estate marketing, and it’s totally free! If you’re not sure where to start with social media, listen to the first episode of Let’s Get Social with Aaron Amuchastegui and Courtney Hatfield. On today’s podcast, we discuss the five types of social media content Realtors should post. We also cover client reviews, Instagram’s new feature (it’s a game changer), and how to balance personal and professional content.

Listen to today’s show and learn:

Real estate market shifts since early 2022 [1:49]
Zillow offerings differing between markets [5:29]
Social media and its role in FREE real estate marketing [8:07]
Advice on selecting a social media platform [12:13]
What Let’s Get Social is all about [13:42]
Today’s topic: What to post on social media [14:23]
How to get your audience to know, like, and trust you [15:07]
Finding a balance between personal and professional posts [16:43]
Educating potential clients with social media content [19:50]
The five types of content to post for your real estate business [24:02]
What to do with glowing client reviews and how to ask for them [24:15]
What Matt Amuchastegui does to leverage closings for content [25:58]
Ideas for entertaining social media content [26:41]
Ideas for personal social media content [28:20]
Ideas for inspirational social media content [29:16]
How to plan out your posts [30:32]
Instagram’s new feature: scheduling content [28:56]
Ways to repurpose social media content easily [32:58]
Tips on tailoring your social media page for more business [33:21]
How to find and follow Courtney Hatfield [34:38]

Courtney Hatfield

Courtney Hatfield fell into team leadership by happenstance but in their first year built one of the top 3% teams in NE, Ohio. Courtney did this by being authentic, consistent and selective. Authentic content, consistent in her routine, follow up & socials. She is selective about who she brings on the team because culture matters.

Related Links and Resources:

Thank You Rockstars!

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

Apache is functioning normally

August 3, 2023 by Brett Tams

Chris Voss, Codie Sanchez, and a host of real estate rockstars joined us on the podcast in February. Listen in and learn what today’s top entrepreneurs are doing to succeed in—and out of—the real estate space. Guests also shared their strategies for goal setting, real estate investing, building new businesses, and more.

Listen to today’s show and learn:

Jason’s advice for new agents who want to sell commercial real estate [7:17]
Focus on market share, not dollars [8:56]
Shifting business strategy for the shifting market [11:05]
Wally’s advice on setting goals [17:33]
Tips on staying top of mind [21:21]
Building a real estate business that can withstand all market conditions [23:57]
How to avoid friction when negotiating deals [25:31]
Advice on becoming an expert negotiator [31:14]
Why motivation really matters [33:10]
Why cutting costs is only part of the financial-freedom equation [34:29]
Advice for people on leaving a W-2 job for a career in real estate [37:46]
Unlock your potential by surrounding yourself with the right peers [40:21]
Showing business owners the value in a no-money-down offer [42:38]
How to apply systems, processes, and technology to businesses formerly owned by Boomers [43:25]
The first business deal you should look for [46:43]

Thank You Rockstars!

It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

Source: realestaterockstarsnetwork.com

Apache is functioning normally

August 3, 2023 by Brett Tams

As the pandemic persists, most Americans’ financial positions are precarious at best, dire at worst. Thankfully our bank accounts are receiving their own helpful injection: a third stimulus check.

While you might be tempted to splurge your check on a purse or a PS5 (no judgment), you might also consider these financially mindful options, which can help lower your stress and multiply your money.

There are many different ways you can choose to approach this. So, I wanted to give you a lot of different options, in hopes that at least one or two of them may resonate with your unique financial position.

What’s Ahead:

Bulk up Your Emergency Fund

One of the best ways to improve your finances with your stimulus check is to bulk up your emergency fund. That is if you have one. If you don’t, it is absolutely time that you get one started. Trust me, you will be thankful when an emergency comes your way.

You don’t have to start big, but anything is better than nothing. Even if you only deposit ⅓ or ½ of what your stimulus check is, you have already helped create a financial buffer for yourself.

I know that when my family’s emergency fund has at least six months’ worth of expenses in it, we feel much more secure than when it dips lower. The peace of mind of knowing that you are prepared for an emergency, should one come up, is absolutely incredible.

What helped me build my emergency fund up faster was a high-yield savings account. While what they consider “high-yield” these days isn’t exactly what it used to be, they still offer much higher interest rates than you would get at a traditional bank.

There are quite a few options out there, but one of my favorites is the CIT Savings Builder. You only need $100 to open an account, and there are no fees. If you are able to put in a minimum of $100 each month (or maintain a balance of $25,000 or more), then you will earn the highest interest rate they have (1.00%). See details here.

So, if you don’t already have an emergency fund set up, this is the first place I would suggest starting.

CIT Bank. Member FDIC.

Give Your Budget a Boost

Another way to use your stimulus money is to sprinkle it into malnourished areas of your budget. After all, the point of stimulus checks is to stimulate the economy and your budget is where you plan your spending.

For example, maybe you’ve had to reduce your spending on entertainment, travel, or even groceries over the past year. If so, consider using your third round of stimulus money to replenish those silos. You may even consider planning to spread that money out over multiple months’ budgets, in order to create a small safety net just in case your income decreases.

Personally, I started out budgeting using a spreadsheet that I created in 2002 (which has thankfully evolved!). If you are new to budgeting, or just need a little help, there are a lot of budgeting tools out there. Some of these are free and some are not, but spending a small portion of your stimulus check on a subscription to one may not be a bad idea.

One app that can be a big help is PocketSmith, which serves as a personal assistant for your finances. What I like about PocketSmith is that it shows you the future. As you budget, the app demonstrates how today’s expenditures will affect your finances months, and even years, from now. The best thing about PocketSmith, though, is that you don’t have to pay a dime for the basic version. You’ll have to manually import your transactions and you’ll only get six months of future projections, but it’s worth it.

Subscribe to a Financial Management Tool

Financial management tools (think budgeting tools) are extremely useful in improving your finances. They can effectively help you determine your weaknesses and figure out an action plan to help you reach your financial goals faster.

If you don’t have one in your toolbelt, why not consider spending some of your stimulus money on one? Because at the end of the day, using a tool to help you budget is going to save you so much money down the road. This is something almost all financial advisors agree upon – and anybody for that matter who has used one.

Most financial management tools have different plan options, set at different price points, so you can customize your experience to match your needs. There are many different options out there to help you manage your finances, but, two of my favorites are both very interactive, and have multiple options to help you maximize how you manage your finances.

Empower is another great example. They have been around for quite some time now, and I have been using them for years. They not only offer a net worth map (which is one of my favorite tools), but a portfolio analysis, fee Analyzer, and budgeting tool.

Empower ties into all of your bank and investment accounts to aggregate the numbers and figures appropriately. This really helps to give you a bigger picture of everything that is going on with your finances.

(Personal Capital is now Empower)

Invest it

If you already have an emergency fund and have a comfortable budget, then there is another great option. You could use some, or all, of your stimulus check to invest in the stock market instead. You could, with time, turn your check into even more money!

Since my husband and I have started investing in the stock market, it has become one of our favorite activities to help improve our finances. The average return on investments annually in the stock market is around 8%, which can really help improve your finances.

This doesn’t mean you are guaranteed an 8% return on your money every year. This is just the average over time. So, some years will be better than others, but there is no time like the present to get started.

Robinhood is an especially good option, geared towards Millennials and Gen Z who are new to investing. Not only is it easy to get started, but they make it simple to navigate trades also. You can even perform all functions directly from their app on your phone, so you can manage your investments on the go!

Robinhood has no fees for setting up an account and it’s commission-free. Plus, they give you a free stock worth between $5 and $200 just for signing up!

Pay a Tax Preparer

If you haven’t filed your taxes yet, and want to make sure you get the best return possible, it may be beneficial to pay a tax preparer. Tax preparers are experts at tax code and finding all of the tax write-offs you may be eligible for. I don’t know about you, but I happen to be a big fan of getting as many tax write-offs as possible because it reduces how much I have to pay in taxes. In fact, for me, it usually means I get a bigger return. Which I love!

If you aren’t sure a tax preparer is worth it for you and your unique situation, you could always go the tax software route instead. Tax software like TurboTax generally costs much less than a tax preparer does, but can still help you find write-offs to lower your taxes!

Hire a Financial Advisor

If you don’t already have a financial advisor, then this may be a good use of your stimulus check. Financial advisors are an essential tool to have in anyone’s financial toolbelt, definitely if your financial situation has recently changed.

A financial advisor will go through every aspect of your finances with you to help determine the best path for you to reach your goal. And if you aren’t sure what your future financial goal is, they can help you figure that out, too.

Just make sure whomever you choose as your financial advisor is a fiduciary. A fiduciary is a fee-only advisor who doesn’t make commissions on sales. Therefore, fiduciaries have your best interest at heart.

If you decide to hire a financial advisor using your stimulus check, then one of the best places to start is the Paladin Registry. This is an online marketplace specifically created to help you find a financial advisor that will work for you. Even better, they specialize in mostly independent fiduciary financial advisors, instead of advisors at brand name firms.

Open a “Lazy Portfolio” of Long-Term Investments

Earlier I covered how you can use your third stimulus check to begin actively investing in the stock market using platforms like Robinhood.

But what if you’d like to multiply your money in the stock market without being so hands-on? What if you’re not sure what stocks and ETFs to pick?

Then a “lazy portfolio” might be perfect for you. The term “lazy” comes from how easy it is to start and maintain; nobody will call you lazy for having one, since tons of professionals use them!

A lazy portfolio is a bundle of long-term investments that you pick once, and simply allow to mature over years and decades with little to no intervention. Contrary to popular belief, you don’t have to be buying and selling stocks all day to make money in the stock market. In fact, buying and holding often works better, saves you time, and keeps your stress levels much lower than day trading.

You can launch a lazy portfolio using M1, an investing app geared towards mid-to-long-term investments. M1 prompts you to build “M1 Pies,” which are like bundles of bundles of bundles of investments (talk about diversification). For example, a 40% “slice” of your pie could be M1’s “responsible investing” portfolio, made up of a diverse and safe array of ETFs.

Increase Your Auto Insurance Coverage

Like a fire extinguisher, good auto insurance is something you don’t think about until you need it. Then, you’re really, really glad you have it.

As life returns to normal and businesses reopen, you might find yourself commuting again soon (if you haven’t already). For that reason, now is a good time to consider revisiting your auto insurance coverage levels, and fortifying certain areas as necessary.

One example might be your comprehensive coverage. Will your car be exposed to the elements during your upcoming policy period? Has auto-related crime risen in your area during the pandemic? These are both solid reasons to consider increasing your comprehensive coverage levels and/or reducing your deductible.

Buy Life Insurance

Stephen Colbert once asked Keanu Reeves what he thinks happens when we die. The legendary actor responded, “I know that the ones who love us will miss us.”

That’s true for all of us, and if you have family members that rely upon your income, they may suffer financially as well.

If you have dependents, e.g. relatives or children whom you support financially, you might consider taking out a life insurance policy for yourself and listing them as the beneficiaries. I know, facing your own mortality and thinking about what your family will do if you pass away is not a pleasant thought process, but once you get over the initial discomfort, purchasing a life insurance policy can bring peace to you and your loved ones.

Policies are typically sold as “term life insurance” policies, meaning you pick your total years of coverage upfront. Terms typically range from 10 to 30 years, with some providers offering increments of 5 or even more flexible terms. Plus, term life insurance is pretty cheap when you’re young and healthy.

You’ll like be able to find a super cheap rate for a term life insurance policy by visiting Policygenius. You can enter your info just once and see multiple competing rates from reputable, trustworthy companies. Plus, Policygenius isn’t just for life insurance; it’s a veritable insurance bazaar, where you can find the lowest possible rates for auto, home, disability, life, jewelry, health, even pet insurance.

Buy Pet Insurance

Another great way to protect your hard-earned money is to spend a little of your stimulus on some pet insurance. Pets, like people, have expensive medical bills; a single trip to the vet can cost $3,000 – $10,000 depending on the illness or emergency, so it pays to have your fur baby covered.

Thankfully, although the medical bills are equally horrifying, pet insurance is much cheaper than people insurance. A healthy young pet with minimal coverage may only cost around $15 to $30 per month to insure, while an older pet with pre-existing conditions may cost around $70 – $90 per month. An average pet with average coverage levels will cost around $45 monthly.

Plus, having pet insurance can remove a lot of hidden background stress from pet ownership. As a dog owner myself, it’s no fun to think of my little mutt as a potential source of financial burden. Pet insurance eliminates that possibility, so she and I can focus on enjoying each other’s smelly company.

Pay Off Debt

This one may seem obvious, but one of the best things you can do with your stimulus money is to pay off some of your existing debt.

Your existing debt might include student loans, your auto loan, or even run-of-the-mill credit card debt. And even if you’re already on track to pay off these loans in a timely manner, it helps a ton to put a $1,400 ding in it for a few reasons.

First, some of this debt may be charging you month-to-month interest. Credit cards especially are notorious for gouging debt holders with upwards of 29.99% APR, which can quickly drain your credit score and lead you further into debt.

Second, even your lower-interest debt like your auto loan or student loans can benefit from applying your $1,400 stimulus check as an “extra payment” or two. Doing so can reduce your remaining payments but also potentially lower your interest, saving you even more.

If your $1,400 check helps you pay off a loan early, just be sure to check your lender’s early payoff terms. Some lenders will charge you a fee or a percentage of your remaining interest if you pay off your loan early. In most cases, it’s still worth it, but you should factor in these fees nonetheless.

Spend it

Last but not least, spending your stimulus check can be a great way to improve your finances. I realize that sounds counterintuitive, but it’s really not. After all, the government sent out stimulus checks to stimulate the economy during this pandemic. So, if you are already set in all of the other categories, then this is likely the category for you.

Here’s just one example of how spending your stimulus check can improve your finances in the long run: if you invest in home improvements, they can help increase the value of your home. This will net you more money when you go to sell your house or if you decide to apply for a home equity loan with a company. The more equity you have built up in your home, the more opportunities you have to access that money down the road.

Lastly, spending doesn’t always have to provide a fiscal return on investment. If a purse or a PS5 will bring you more than $500 worth of joy, go for it. The purpose of money isn’t just to make it and invest it, but to spend it in ways that improve our quality of life.

So don’t feel guilty about spending your stimulus if that’s the right move for you. Just spend it wisely, and be sure to get a good deal.

Summary

If you qualify for a stimulus check, there are so many things you could do with it. But, the best thing you can do is to use it to improve your finances. There are many different ways to go about this, and it will be different for each one of us.

No matter which path you choose, make sure to maximize your stimulus check’s potential and think before you spend.

Apache is functioning normally

August 3, 2023 by Brett Tams

Note: I’ve received many questions about Prosper, but I’ve never used it. Here’s a post from Frykitty, the very very quiet second author at Get Rich Slowly. She recently set up a Prosper account and has written to share her experience.

Last December I discovered Prosper, a site that connects private lenders and borrowers, and manages the resulting loans. Because I’m not a fan of the stock market, this looked like a perfect opportunity to invest on my terms, to help individuals with faces and stories, rather than contribute to the bottom-line culture. I decided to start the new year by testing Prosper with a set amount of funds to see how it performed.

Borrowers sign up on Prosper, then post a request for a loan and the maximum amount they’re willing to pay in interest. Lenders then bid to fund all or part of that loan, at an interest rate of their choosing. You win a bid by coming in at a lower interest rate than your competitors.

Prosper Tip #1: Patience is a virtue.
I signed up with Prosper on January 1, 2007. Because there was no space for a mailing address in addition to a home address, there was a small verification problem that required some faxing, and that took me a few days. On January 3, I was approved as a lender. To bid on an account, you must have funds in Prosper. I immediately added an account and initiated a transfer of $500 to begin my experiment. On 1/5, I saw the money leave my bank account. On 1/9, the transfer was finally complete, and I was able to bid. Yes, that’s almost 10 days between signing up and being able to bid. That’s a long time in Web years. Prosper has recently made some changes to their customer support and approval processes, so this wait may be shorter in the future.

At last I was able to bid. I decided to fund 10 $50 loans, two each in five credit ranges. At the time, Prosper credit ratings went from AA to NC (no credit history), with the lowest rating being HR, or High Risk. Prosper recently changed their ratings, raising the credit scores for E (560-599) and HR (520-559), and they no longer allow listings from those with a lower score than 520, or no credit history. While I liked to help out those NC folks, apparently other lenders showed little interest. I did bid in time to fund two NC loans, and also two each of A, B, C, and D. I passed on E and HR.

Prosper Tip #2: Bid on loans that are already 100% funded.
Lenders can bid on loans for a specific amount of time, kind of like an eBay auction. If there is a lot of interest in the loan, many lenders will bid, covering the entire amount of the loan. Unless the bidding is set to be automatically ended when the loan is funded (rare), you can still bid, as the idea is to get funding at the lowest interest rate possible for the borrower. Lowball a little — put in an interest rate you still like, but that is a point or two lower than others are bidding. Chances are, you will get to fund part of that loan.

When you bid on a brand new listing, or one where little interest has been shown by other lenders, the listing will often go away when the amount is not funded, leaving you to start the process over.

Once the bidding has ended, Prosper verifies everything, then funds the loan. This can take as long as a week. One loan on which I won the bid was cancelled before funding, as Prosper was unable to verify all information regarding the borrower. Prosper is very, very careful about fraud, and they err on the side of caution, an attitude I appreciate enough to put up with the extra time it takes to get through the process.

Prosper Tip #3: Remember: you’re the bank.
Once my loans were all funded, it was time to watch the payments roll in. It’s something like watching a garden grow. All Prosper loans are on 3-year terms, with the borrower making monthly payments due beginning one month from origination. The borrower may pay extra principle, and can repay the entire loan at any time with no penalty. This is where it’s important to remember that you are playing bank, and it’s different from other investments and from savings; while the loan carries a specific interest rate, that is not your ultimate return. As with a bank loan, taking the full term to repay works in the bank’s favor. Cribbing from Prosper’s excellent FAQ:

Interest and annual servicing fees are accrued daily, and are based on the current outstanding loan principal.

To calculate the daily accrual amounts, take the principal balance on any given day and multiply it times the daily rate (based on a 365-day year):

Equation:
Daily accrual = (Annual rate / 365) * Principal balance
For example, if you own $50 of a loan with an annual interest rate of 10%, you will accrue $0.0136 in interest on a daily basis, and $0.00068 in lender servicing fees (which have an annual rate of 0.5%). Keep in mind that as the principal balance drops (because the borrower makes payments each month), the rate of accrual will also slow over the life of the loan.

Assuming a full three-year loan, your $50 loan at 10% interest would earn you $8.12 in total interest, and you would pay a total of $0.41 in servicing fees.

To get historical numbers, study Prosper’s Marketplace Performance charts. This gives a very useful picture of the default rate as well. Default is your primary risk with Prosper, and you can manage that risk by researching the different credit grades, examining the income-to-debt ratio of the borrower, and any other factors which may affect repayment.

So far, I have only a few dollars in my Prosper account, as most of my loans originated less than a month ago. Once I have another $50 in my account, I’ll bid on another loan, continuing to reinvest. I won’t have a good handle on the ultimate performance of Prosper until my initial loans are repayed, and I can see how the investment has performed over those three years. At the moment, I have 10 active loans with an average interest rate of 13.99%, and all are current, with several of them processing payments. These first payments are like watching those first crocuses bloom. I hope I’ve planted some sunflowers.

More Real-Life Prosper Experience

Here’s some follow-up information from Justin McHenry of Zen Personal Finance, who last month posted this collection of comments and reviews from Prosper users.

One of the most-read posts I’ve written at Zen Personal Finance was the one from last June titled “Why Prosper.com Will Fail”. To be fair, I also wrote a counterpoint to that very post, titled “Why Prosper.com Will Succeed”. The first gets much more traffic and gets mentioned in other blogs and discussion boards, perhaps because it’s the second listing if you Google “Prosper.com”.

I have nothing against Prosper and feel a little bad that my negative take on it shows up so high on Google while my thoughts on the potential positives do not (although I linked to the positive post on the negative post).

So, 7 or so months later, I thought I’d look to see how Prosper is doing.

According to this NPR interview with Prosper CEO Chris Larsen, Prosper has over 140,000 members and has funded over $27 million in loans. My thoughts obviously haven’t dampened others’ enthusiasm.

Here are some other articles and thoughts I drummed up when trying to get a feel for how Prosper is doing today and what its prospects for long-term success might be.

Despite the somewhat derogatory headline “Want to Loan Me Money? Here’s a Picture of My Dog.”, this past weekend’s Washington Post report on Prosper.com is actually fairly positive on the company. BusinessWeek’s “A Tale of Two Lenders”, compares and contrasts Prosper with microloan site Kiva.org, which serves poor communities in Africa and elsewhere.

But forget the media — what are lenders and borrowers saying? Some of what I found (in no particular order):

Scott on Money:

It’s now been almost a quarter since I began using Prosper.com. Overall the Prosper experience has been lucrative. My portfolio currently has a risk-adjusted return of over 10%. That certainly beats what you can get currently with both money market accounts and CDs both of which currently will return you around 5%.

…

As I and many others have previously argued Prosper needs to address the issue of money not participating in loans. For example, I mentioned above that my risk-adjusted return was over 10%. That’s only true of the money is actually deployed in loans. If you look back over the past quarter at the overall amount of money sitting in my Prosper account the actual risk-adjusted return is significantly lower because not all of my capital has been deployed into loans.

I know this is been raised over and over and over again. But Prosper needs to provide interest on funds that are not yet invested.

…

I do have to consider the amount of time and investment takes to achieve the return. Right now, that’s my biggest issue with Prosper.

Countercolumn (I don’t think this person has actually used Prosper and does not back up the claims made, but the opinion is still interesting):

It’s the coolest thing in the world. It’s addicting. It’s a great little microcosm of capitalism. The lenders are the stupidest people I’ve ever seen!!!

Why?

Default rates are already, like TWICE what Experian data leads them to believe. Most veteran lenders are underwater. New lenders who haven’t learned a thing, but are chasing the illusion of 29% returns are bidding interest rates way down. Lots of borrowers aren’t even making it through 3 months without paying late. Lenders are sinking hours into researching trying to beat the odds, but don’t seem to be paying themselves a salary to compensate for the time spent in research. There’s so many idiots bidding to lend that they’re bidding loans down to less than their default rates for a given class of borrowers. There is a shortage of good borrowers.

Blogging Away Debt interviewed the person with the most invested in Prosper loans, about $750,000. He’s been pretty happy so far:

Originally, I expected returns of 18% to 20%. I now think my returns will be more like 15%. I am happy with 15%. If my returns drop to 11% or 12%, I’ll start moving money back into stocks and mutual funds.

Arctic Orangutan Weblog:

I invested a little bit to try it out. Unfortunately after the better part of a year I am currently only breaking even.

My lack of success is due to intentionally starting out funding risky loans with a higher interest rate. I wanted to start with the riskier loans to push the envelope and see how large a return I could get. I now have a better idea of how to distribute my money.

Moshe’s LifeBlog:

For the last 4 or 5 months, I’ve had a good chunk of change invested in Prosper, and it has been performing beautifully.

…

Prosper gives me the expected default rates for each credit rating so that I can adjust my requested rates accordingly. Therefore, if I am diversified over enough loans, it is almost no risk because it is entirely predictable, and I’m pretty much guaranteed my desired interest rate of 12%.

…

I have decided that this is probably the best investment opportunity available at this time, and I’m going (mostly) all in.

Roy:

The biggest problem with Prosper is it takes FOREVER to get anything done. It took 3 days for me to set-up an account and get it verified. It took me another 5 days to transfer funds from my bank account into my Prosper account. Then it took me about a week to get start bidding on listings and for those to close.

A couple of my thoughts based on what I’ve been reading:

First, I think it’s amazing that someone has put $750,000 into Prosper. That would scare me. On the other hand, this person must have a lot of money to play with to even consider such a thing.

Second, I think Moshe is crazy if he is using Prosper as his main mode of investing. It’s easy to look at the promising numbers, but just as MLM schemes will tell you what you could make, they don’t necessarily correlate with what you will make. Not trying to compare Prosper to MLM, just saying this concept is too new for anyone to making it their main investment vehicle based on potential. This thing’s less than a year old, and the numbers they use for predicted default rates are based on traditional loans, not on the actual payback of Prosper loans. Prosper just hasn’t been around long enough to reliably tell you what to expect.

Beyond that, though, I guess the reason I haven’t been enthusiastic to put any money up is that it all sounds like such a hassle, setting up these accounts and parameters for possible loans, then bidding against others to place your money. I don’t have the time for all that. It seems more attractive to someone who really likes to be active with their money, someone who gets as big a kick out of being a “winner” in the system as they do in the actual return. Because your time has a value, too, and unless you think Prosper is a lot of fun in addition to the potential of higher returns, then you have to factor in how much time you’re spending when looking at your overall return.

The goal of making lending more “democratic” is great and I hope Prosper can meet that goal. But I’m still not in.

What’s It Like to BORROW Money with Prosper?

“But where are the reviews from borrowers?” some of you may be asking. Tricia at Blogging Away Debt has borrowed money from Prosper. Here’s her story.

When I first heard about people-to-people lending through Prosper.com last year, a light bulb went off in my head. Would everyday people be willing to lend me money so I could lower the interest rate on my credit card debt?

After some consideration, I signed up. It was a fairly simple to provide personal information via the Prosper website, and I did not have to give any proof of my income at this time. (Please note I signed up in May of 2006, so things may have changed since then). I was given a credit grade, and potential lenders were able to see a snapshot of my credit history, including any
delinquencies or non-current credit items. My credit grade was an A, and I didn’t have any negatives within my credit history. Unfortunately, I had a high debt-to-income ratio (24%), which I knew would deter some lenders.

The next step was to decide whether to join a group. Groups at Prosper are, in theory, there to help build trust within the Prosper community. Every group has a group leader, and sometimes they assist you with writing your loan request. They can also provide something called vetting. Vetting occurs when the group leader takes a look at records from the borrower to determine that the borrower is truthful. As payment for their “work”, group leaders sometimes get group rewards that are really an extra interest rate percentage that the borrower pays on their loan. Not all groups are not created equal; some group leaders “work” harder for the borrower. Because my goal was to obtain the lowest interest rate possible, I decided to not join a group.

Next I created a listing. I was paying 13% to my credit card company on a balance of $3,500. Because I didn’t want a larger loan than I needed, I asked for $3,500. I began by asking for an interest rate of 12%. My rationale was that if even I received the loan at 12%, it was a debt that had a set amount per month to pay and a fixed payback period of three years (although I can pay it back earlier at any time with no pre-payment penalty).

As you may have noticed, I started by asking for a 12% interest rate. This is the beauty of Prosper. Lenders can bid your interest rate down lower and lower by outbidding other lenders. They are competing against each other lenders to fund your loan. However, if a borrower needs the funds quickly and they are not interested in a lower interest rate, they can have their loan automatically funded. Their loan listing will end immediately after the loan is funded. Again, I wanted the lowest interest rate possible so I waited the full 7 days for my listing to end.

It was fascinating to watch bidders with my loan. I actually received two bids for the full amount of my loan request. The first one was outbid. The second one ended up funding a large portion of my loan. When it all over, I had an interest rate of 9.9%, and 13 lenders in total funding my loan. I now have 13 people that want me to succeed because they have a stake in my debt reduction progress. In fact, one of my lenders is familiar with the area where I live and he suggested a restaurant that I should visit once our debt is paid off (to celebrate). That interaction is something that you cannot get with dealing with a credit card company.

My Prosper loan was what I needed to get my credit card debt under a 9.9% interest rate. It was the last piece to my debt consolidation puzzle. I have no regrets about my experience, although in hindsight I could do a few things differently to try to obtain a lower rate.

But as they say: you live, you learn, and you blog about it!

Source: getrichslowly.org

Apache is functioning normally

August 3, 2023 by Brett Tams

After high-profile acquisitions and purchases over the past month, Rithm Capital emphasized its pivot toward business diversification but offered few details regarding a potential spinoff of its mortgage operations in an earnings call Wednesday.

“While we are a mortgage REIT I like to think of us as an asset manager operating as a REIT,” said Michael Nierenberg, CEO and president of the New York-based real estate investment trust, in its second-quarter earnings call.

The company’s recent focus on new additions to the business is helping to fuel speculation about whether a separation of its home lending businesses into a new entity might be in the offing. Nierenberg’s plans to grow Rithm as an alternative asset manager was underscored in July with a deal that brought Sculptor Capital Management as a fully owned subsidiary.

In its previous earnings call, Nierenberg said Rithm had filed a confidential S-1 registration form, typically used by companies before an intended public listing, with the Securities and Exchange Commission. But Nierenberg gave no further clues on if, or when, a change might occur on Wednesday.

In 2020, the company, which was previously known as New Residential Investment Corp., filed the same form as it considered a public offering of its Newrez home lending business. Plans ended following New Residential’s acquisition of Caliber Home Loans.

While saying that no mortgage lending company is trading at a significant premium currently, Nierenberg added that “the timing is right,” based on the work done at Rithm to develop Newrez and Caliber “to bring this company out.” Earlier this year, Nierenberg had also suggested that the mortgage business’ headwinds were weighing down on its overall trading value.

“I don’t necessarily think that we’re going to turn around and just sell down the entire thing. I think it’s more to give us flexibility,” he said on Wednesday’s call.

In a post-earnings note, research analysts Eric Hagen and Jake Katsikas of BTIG noted that the timing of a spinoff “looks more optimal considering the run we’ve seen in other originator/servicers over the last three months.”

While Rithm Capital focused on diversification outside of home lending and a possible company split, its mortgage origination and servicing operations still accounted for the majority of profits in the second quarter, particularly through loan servicing.

The REIT posted company-wide net income of $357.4 million, equaling 74 cents per share, in the second quarter. The number represented a 418% increase from the $68.9 million bottom line number in the first quarter. One year ago, Rithm lost $3.3 million over the same three-month period.

The servicing unit generated $285.8 million in net income offsetting an $8.9 million loss in originations, as the mortgage industry continued to face depressed volumes and interest rate challenges. But numbers improved from the first quarter’s $192.1 million servicing gain and $24.4 originations loss. Between April and June of 2022, servicing income came in at $427.2 million, while the loss in originations settled at $21.1 million.

Meanwhile, Rithm’s mortgage-servicing rights related investments garnered it $52.5 million in profit in the most recent quarter, compared to a $29.7 million loss three months earlier. In the second quarter last year, net income from the MSR investments unit totaled $32.1 million.

Nierenberg noted the performance of Rithm’s MSR portfolios during the past quarter in helping the company grow its book value. A new mortgage spinoff would likely include a majority of that portfolio, in addition to originations and most of the servicing units, Nierenberg said.

“Some MSRs may stay back,” he said. “It’s one of these TBD things as we continue to work through it.”

Overall revenue across all segments of the company grew 27.6% to just over $1 billion from $783.4 quarter to quarter. But on an annual basis, revenue was off 21.5% from $1.3 billion.

Within its mortgage operations, funded originations grew 41% to $9.9 billion from $7 billion between first and second quarters. Rithm’s correspondent lending channel accounted for close to 63% of the volume following recent disruption within the segment.

“We think it’s likely benefited around the margins from Wells Fargo’s exit from the correspondent channel this year,” wrote BTIG’s researchers.

Gain-on-sale margins, though, shrank to 125 basis points compared to 161 bp in the first quarter and were down from 195 bp a year ago.

Unpaid balance in the mortgage company’s servicing portfolio inched up to $506 billion from $504 billion in the prior quarter.

While discussion revolves around Rithm’s near-term business moves, Nierenberg made efforts to emphasize that mortgage would still have a large presence in the company’s strategy.

“We’re still going to have a mortgage REIT. If you look at some of the some of the best run and larger alternative asset managers, they have REITs,” he said. “I think you should think of us in the same light.”

Source: nationalmortgagenews.com

Apache is functioning normally

August 3, 2023 by Brett Tams

LOS ANGELES (AP) — The average long-term U.S. mortgage rate fell for the third time in as many weeks, a welcome boost for homebuyers facing a housing market that’s been held back this year by a tight inventory of homes for sale.

Mortgage buyer Freddie Mac said Thursday that the average rate on the benchmark 30-year home loan fell to 6.67% from 6.69% last week. A year ago, the rate averaged 5.81%.

The average rate on 15-year fixed-rate mortgages, popular with those refinancing their homes, also fell this week, slipping to 6.03% from 6.10% last week. A year ago, it averaged 4.92%, Freddie Mac said.

“Mortgage rates slid down again this week but remain elevated compared to this time last year,” said Sam Khater, Freddie Mac’s chief economist.

With the latest drop, the average rate on a 30-year mortgage is now at its lowest level since the last week of May, when it was at 6.57%. The average climbed to 6.79%, its highest level so far this year, in the first week of June.

A decline in mortgage rates can save homebuyers hundreds of dollars a month in borrowing costs on a home loan. That can make a big difference at a time when a historic-low level of homes on the market is spurring bidding wars that are helping keep prices from falling sharply after soaring in recent years.

The average rate on a 30-year home loan is still more than double what it was two years ago, when the ultra-low rates spurred a wave of home sales and refinancing. The far higher rates now are contributing to the low level of available homes by discouraging homeowners who locked in those lower borrowing costs two years ago from selling.

The dearth of properties on the market is also a key reason sales of previously occupied U.S. homes fell for the third month in a row in May, the National Association of Realtors said Thursday.

Low mortgage rates helped fuel the housing market for much of the past decade, easing the way for borrowers to finance ever-higher home prices. That trend began to reverse a little over a year ago, when the Federal Reserve began to hike its key short-term rate in a bid to slow the economy to lower inflation.

Global demand for U.S. Treasurys, which lenders use as a guide to pricing loans, investors’ expectations for future inflation and what the Fed does with interest rates influence rates on home loans.

All told, the Fed raised its benchmark rate 10 times, starting in March 2022. But the central bank opted to forgo another increase at its meeting of policymakers last week. Still, the Fed warned that it could raise interest rates two more times this year in its battle against inflation.

That open-ended approach has heightened uncertainty about the Fed’s next moves, which could lead to more volatile moves for mortgage rates.

“With the potential for additional rate hikes ahead, mortgage rates will remain elevated throughout the remainder of the year,” said Jiayi Xu, an economist at Realtor.com.

Source: apnews.com

Apache is functioning normally

August 3, 2023 by Brett Tams

I met some friends at a local restaurant Monday night. While chatting, we found ourselves bopping to the music playing on the radio. For more than hour, great song followed great song: U2, Eurythmics, The Police, Elvis Costello, The Clash, New Order. But the ambient noise made it impossible to know what station we were hearing. “I have to know what this is,” I said at last. “This could be my new favorite radio station.”

I tracked down the manager. He told me we were listening to Fred on 44, a channel on XM Satellite Radio. I’d heard of satellite radio, but didn’t know much about it. When I got home, I did some research.

As expected, there’s an upfront cost to obtain a receiver that can de-scramble the satellite signal. Unfortunately, that’s not the only cost. There’s also a subscription fee of around $10/month.

Alas — a subscription fee. They’re not deal-breakers for me, but they turn otherwise sure things into financial dilemmas. I don’t mind one-time costs, but subscriptions make me wary.

I would love to purchase an iPhone, for example. The initial hardware cost is fine. I can justify that. But I can’t justify a $60/month, two-year contract. That’s nearly $1500 for a device I don’t actually need. I stopped playing World of Warcraft because of the subscription fee. I loved the game, but in order to get my money’s worth, I felt like I needed to play more than is healthy.

I view recurring expenses as potential money sinks. Too often I don’t get value for what I spend. For three years I carried an $70/month deluxe digital cable package so that I could watch high-definition television. But at most, I was watching an hour or two of television per month! Besides, who needs to see Antiques Roadshow in high-def?

Over the past year, I’ve cut the number of magazines to which I subscribe, dropped to basic cable, and cancelled my Audible account. These moves have freed over $100/month. Eliminating recurring expenses has made a significant difference to my cash flow. Most of the time, I don’t even miss the things I’ve eliminated!

Of course, we each probably have a few recurring expenses that are easy to justify due to the pleasure or utility they bring us. I’m willing to shell out for The New Yorker because even though I only read about one issue per month, when I do read it, I love it. And if I find the time to listen to audiobooks again, I’ll re-subscribe to Audible — it’s a good deal when I actually use it.

I can’t decide whether paying for satellite radio would be smart or not. I’ve signed up for the free three-day trial of XM’s web service. So far, I like it. I’d probably subscribe:

If NPR were available,
If there were some sort of device that allowed me to receive XM on my iPod, or
If it cost less.

As it stands, am I willing to spend $10/month for XM, and then pay for a receiver? How about $8/month for the streaming web version? I don’t know. For now, I’m just going to dig through my iTunes library to create some new playlists. I can probably duplicate the sound of Fred on 44. Maybe that will be enough…

Source: getrichslowly.org

When IPOs Are Offered to People Prior to Listing Day

How Do You Find Upcoming IPO Stocks Before Listing Day?

Media Outlets

Exchanges

Brokerage News

Vetting Upcoming IPOs

The Pros and Cons of Investing in IPOs

Pros of Investing in an IPO

Cons of Investing in an IPO

The Takeaway

In This Piece

Can Someone Take Over My Car Payments?

How to Transfer a Car Loan to Another Person

How Does Transferring a Car Loan Affect Credit Scores?

Other Options Instead of Transferring a Car Loan

Refinancing

Sell Your Vehicle

Voluntary Repossession

Refinance With a Cosigner

Can a Cosigner Take Over a Car Loan?

Bottom Line

What’s it like to live in Georgia?

Georgia housing market insights

Finding your perfect location in Georgia

#1: Columbus, GA

#2: Augusta, GA

#3: Savannah, GA

#4: Athens, GA

#5: Atlanta, GA

The homebuying process in Georgia

1. Prioritize your finances

2. Get pre-approved from a lender

3. Connect with a local agent in Georgia

4. Start touring homes

5. Make the offer

6. Close on the house

Factors to consider when buying a house in Georgia

Natural disasters

Historic preservation

Humid subtropical climate

Home insurance rates

Buying a house in Georgia: Bottom line

Buying a house in Georgia FAQ

What are the requirements for buying a home in Georgia?

What is the average down payment on a house in Georgia?

How much does it cost to buy a house in Georgia

Bulk up Your Emergency Fund

Give Your Budget a Boost

Subscribe to a Financial Management Tool

Invest it

Pay a Tax Preparer

Hire a Financial Advisor

Open a “Lazy Portfolio” of Long-Term Investments

Increase Your Auto Insurance Coverage

Buy Life Insurance

Buy Pet Insurance

Pay Off Debt

Spend it

Summary

Read more:

More Real-Life Prosper Experience

What’s It Like to BORROW Money with Prosper?