Author: Guest

How to Prepare Your Home for Colder Weather

Winter is fast approaching, so it’s time to take your winter clothes out of storage and prep your home. Unfortunately, many people don’t know how to prepare their homes for winter. Whether you’re a renter or homeowner, there are a few steps you can take to ensure your home is safe and protected during the cold months. Here’s how to prep your home for colder weather. 

Inspect Your Furnace

You should have your furnace inspected once a year before winter hits. It’s most cost-effective to do it in the summer before you experience any cold weather; if there’s a problem with your furnace, you don’t want to find out when it snows for the first time. During the winter, if your furnace breaks or stops working properly, it can take a few weeks for you to get it serviced. If it needs to be replaced, it can take even longer, leaving you without heat during the coldest months of the year. 

Having your furnace inspected right now can help you save time, money, and aggravation. In addition, after your furnace is inspected and everything is in proper working order, you should turn your heat on before the weather gets colder to ensure it can properly heat your home. 

Tree Trimming

You pay property taxes, so you should take care of your home and property. Snow builds up on trees during the winter, which causes them to get heavier, and limbs can break off and fall onto your home or car. Trimming your trees before the first snowfall will prevent any potentially hazardous situations before a winter storm or the snow and ice start weighing them down. 

Take Care of Pipes

Frozen pipes are some of the most common issues during the winter. They can cause flooding with costly repairs, but you can take action to prevent them from getting too cold and freezing. Everyone should service their pipes before winter or care for them during the winter. So whether you’re an investor with a vacant property, a homeowner, or a renter, there are a few things you can do. Homeowners can wrap their water pipes in insulation when they keep their homes at lower temperatures. Investors or individuals with homes they leave during the winter should aim to take care of this before cold weather hits. 

If you plan to stay in your home during the winter, the best way to care for your pipes is to keep your heat on at least 55 degrees. Since this is considered relatively cold, especially in the winter months, keeping your home warm enough to heat the pipes shouldn’t be an issue. Unfortunately, many people try to save money by turning off the heat when they’re not home for long periods of time, which can lead them to burst when freezing and expanding. Your pipes can burst even when you don’t use the water, so you should also turn off the water if you plan to leave your home. 

Prepare for Cold Nights

Unfortunately, you may not always have heat during the winter. Brownouts and blackouts can happen after winter storms, so it’s essential you prepare for the potential of having no heat. You can purchase a generator or ensure your fireplace is in proper working order to ensure you can heat your home even when the power is out. 

Find Drafts

Drafts cause cold air to enter the home and heat to escape. Not only can these cold spots cause your electric bill to increase, but they can give you a headache if you sleep or spend time near them. Drafts should be a big concern if you want to keep your house heated without using too much energy since the goal should be to use the heat you need and let it automatically turn off when your home is heated. Of course, some hot air will escape your home, but you can find and block drafts around doors and windows to prevent cold air from entering your home. 

Move Furniture From Vents

Your vents should never have any large objects or furniture blocking them because it can affect airflow. If you want your furnace to efficiently heat your home, you should remove any furniture that may be blocking vents and obstructing airways. You should also look to see if anything is blocking the intake vents so the furnace won’t get suffocated, which can cause it to break. 

Cover the Windows

Some windows work better than others at keeping cold air out, but no window is perfect. After you’ve blocked any drafts and covered any small cracks or holes near windows, you should consider finding ways to keep your windows from letting cold air into your home. There are a few ways to do this, but the easiest is to cover them with shrink-wrap. The plastic will trap cold air near the window without letting it go any farther into your home. You can also invest in heavier winter curtains to keep cold air out. 

Reverse the Fans

Hot air rises, but when it’s winter, you want to keep all hot air as close to you as possible. If you have ceiling fans, run them clockwise to circulate the warm air back down towards the room to keep the environment warm. If you run them the opposite way, it will circulate the warm air to the ceiling faster, which means you’ll be slightly cooler in the room. 

Clean the Gutters

Snow and ice are heavy, and if they get stuck on your roof, they can cause it to cave in. You should clean your gutters at least twice a year, especially before winter, since they can get clogged up with leaves from fall that make it difficult for melted snow to drain off the roof. In addition, debris and leaves can attract ice, snow, and rain, which prevents your gutters from being able to drain properly. If this happens, it could cause serious damage to your home. 

Stock Up on Salt

If you have a driveway or walkway, you should stock up on salt to help melt any potentially dangerous ice from forming and melt it when it does form. You should salt your walkways and driveway every time it snows to prevent the buildup of ice while also providing a little traction for anyone who walks on it. Salt can also make it easier to shovel your porches, decks, and driveways since it’ll help remove any ice that can get stuck. 

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music. 

Co-living vs. Renting in NYC: Which is Right for You?

The main difference between coliving and renting is that in coliving, multiple people live in the same space and share common areas, while in renting, an individual rents a private living space. Coliving typically offers a more communal and shared living experience, while renting offers more privacy and individual living space. Additionally, coliving often includes amenities such as housekeeping and community events, while renting may not.

Co-living and renting are two great options for everybody looking for space to live in New York City, but the confusing aspect is, knowing which one is the best and will suit your needs and style of living. 

This article will explore every option alongside its pros and cons so you can choose the best that will fit you.  

What is Co-living

Co-living is a concept of living that allows strangers to live together under the same roof to live a more affordable and social life. However, co-living is even more than sharing an apartment or house. Co-living has long made life easy for people, especially newcomers, to find where to live. 

Co-living offers a simple and cheap life because it saves people from living hassles like bill payments, cleaning, furniture, and much more since it will be part of the rent payment. 

Aside from this, most co-living apartment locations will allow you to meet new people, socialize, and even find managers that often check whether you have a quality sleep. In cities like New York, where things are costly, space is limited, and people want to live in a specific area, the co-living concept has brought a great solution to people. 

However, it’s also important to note that not all co-living options are created equal. It’s important to do your research and find a reputable co-living provider. One such provider is SharedEasy, which offers a variety of co-living options in NYC. 

Advantages of co-living

Co-living offers a lot of benefits, especially to people that can’t afford other living methods. These include

  • Affordability

Co-living is far cheaper than traditional houses due to their way of living, with residents sharing places like kitchens and living rooms; this helps reduce bill costs and many more. 

  • It brings a sense of community 

Co-living offers a sense of community. This is beneficial to people that don’t like living alone or don’t like living with anonymous neighbors. 

  • It offers social activities  

In co-living spaces, neighbors get to know each other through social activities organized by people in the community. 

  • Flexible lease 

Co-living is one of the best options for people who travel a lot or visitors who are under a tight budget. It also provides a flexible lease, and you can sublet when your housemate is away for a long time. 

Disadvantage of co-living 

  • Less privacy

One of the disadvantages of co-living is that you won’t have much privacy in your life. 

  • Noise 

Another disadvantage of co-living is that it can be noisy sometimes. This mostly gets extreme if your roommates or housemates are party pricks. 

  • Potential conflicts

It’s inevitable to have some conflicts when living with strangers; to avoid this, everybody should be mindful of boundaries and be honest while communicating. 

What is renting

Renting is also an option for individuals looking for places to live. Renting involves signing a lease and paying a rental fee to a landlord for the property. You can find numerous rental apartments in New York City, including studio apartments, large houses, and many more. 

You can select a payment schedule that includes monthly or annually. Renting will provide flexibility about the location you want to live in, but renting is more expensive than co-living, and you will have limited control over property changes. 

Advantages of renting 

Compared to other living concepts, renting offers a lot of benefits. Some of them include 

  • Privacy

You will have a lot more privacy when you rent an apartment because you will be living alone. You can also control your living environment because you aren’t sharing your home with anybody. This point benefits people looking for a private lifestyle and valuing their personal space. 

  • Chances of building equity

Even though you don’t own the apartment you rented, you can choose to rent-to-own or participate in the lease-buying agreement, so you build equity in the apartment. 

  • Zero maintenance responsibilities

Another benefit of renting a property is that you don’t need to deal with the maintenance responsibilities of the house you rented because this is not your take but the landlords. This is also beneficial if you don’t want to experience any stress and maintenance expenses. 

Disadvantage of renting 

Even though renting has a lot of benefits, it still has some drawbacks to consider before moving. 

  • Expensive

Generally, renting is more expensive than co-living, especially if you want to live in urban regions. You must also pay pet fees and more secure payments. 

  • Less sense of community

Since you don’t share anything with other people, this often leads to a less sense of community. This cannot be easy, especially if you are used to living in areas with a good sense of community. 

  • No shared resources or responsibilities

Unlike in the co-living method, renters can’t share resources or responsibilities because they don’t even have housemates. This can increase their sense of isolation, and this can be difficult, especially for people used to communal settings. 

Comparing co-living and renting 

If you want to choose one between the two options but don’t know how to, here are some factors you should look at before making your decision. 

  • Your budget

Your budget is an essential factor to consider when choosing between the two options. Co-living is cheaper than renting an apartment, but still, you should look at the cost of both options, such as the rent, bills, and additional fees. Ensure to choose one that is more financially feasible for you. 

  • Lifestyle

The kind of lifestyle you want also matters. Co-living offers a social and communal environment, while renting provides more privacy and personal space. Do you usually entertain guests, or do you typically live alone all the time? 

  • Social preference

You should also look at your social preference before choosing any living concept. Do you like to share responsibilities with others, or do you want everything for yourself? Are you comfortable living with others, or do you prefer living alone? 

Wrap up 

Co-living and renting are both two good options to consider when looking for a perfect house to live in. 

Both offer significant advantages; however, before you choose any of them, it’s best to weigh the pros and cons of each and look at things like your budget, the kind of lifestyle you prefer, and your social preference. 

Make Staircases the Focus of Your House

Staircases are not only a functional aspect of a multi-storey building or home, but they can also be the statement piece of your home. They are an essential part of any multi-storeyed house and with some creativity, you can make them look stunning, unique, and amazing. If you are still confused about how to change the look of your staircase, here are some tips that will get you started.

Here’s some unique staircase tiles design for your home that will make your home look pretty and appealing.

Black Beauty

No colour says elegance, class, and refinement better than black. Black granite tiles will make your staircase look elegant, chic, and timeless. As black goes with almost everything, you will be able to change the look of your house without putting a hole in your pocket.

Mosaic Patterns for Stair Risers

While designing and decorating staircases, you should also focus on stair risers and not just the place where you tread. A bold stair riser decorated with mosaic and multi-patterned tiles is sure to grab attention. These tiles will catch the eye of every guest who visits you making them the central focus of your house.

Duo-Tone Marble Tiles

An easy yet chic way to decorate your staircase is by using two-toned marble tiles. This plan looks equally good in modern and contemporary designs and old-world home designs. You can choose tiles that complement each other or can also experiment and choose tiles that contrast each other making a bold yet beautiful statement piece. A warmer colour scheme will make your house look brighter while a cooler colour scheme will make your house look cosy and serene.

Mediterranean Designs

Allow the beauty of nature to take over your house with the help of Mediterranean-style tiles. These tiles in a stunning pairing of green and blue will make your house look like a tropical paradise. This is a great way to make your house seem new if you do not want to spend a lot on renovating the whole space. These tiles are classic and are used in Spanish and Mediterranean-inspired décor all over the world.

Wood-Finish Tiles

Wood is classy and chic, but it is also quite difficult to maintain. To solve this problem and to have the best of both worlds, invest in tiles designed to look like wood. Wood-finish tiles can make your house look elegant and pleasant. They add a sense of warmth and cosiness to your house and can also reduce the cost of maintenance. They also look stylish.

Warm Colour-Palette Style with Spanish Touch

A cool Spanish/Mexican style décor for your staircase can make them look vibrant, bold, and artisanal. This is an easy way to add that rustic yet antique charm to your house. They go well with various decors and are available in multiple sizes, shapes, designs, and patterns, making them highly versatile and customisable.

Monochrome, Matte, Ceramic Tiles

Monochrome matte ceramic tiles are simple, effective, efficient, and elegant. They will make your staircase look pristine, crisp, and clean. These tiles are highly recommended for wide staircases. You can choose from various colours such as beige and brown or can also choose something more vibrant such as green or orange. These are some of the most popular stair designs for homes.

Vibrant Fibre Tiles

Fibre tiles are available in a variety of shapes, colours, and designs, and are an easy and cost-efficient way to add colours to your house. Choose bold, contrasting, and eye-catching colours so that your tiles will stand out from their surroundings without any issues. Fibre tiles are also easy to maintain making them efficient for all households.

Beautiful Pattern Tiles

Patterns can make any space in your house look chic and elegant. Installing patterned tiles on your staircases will make them look pretty with little to no effort. Other ways to use pattern tiles on your staircase include using patterned granite, ceramic, and marble tiles. You can also get custom-designed pattern tiles to make your house look more unique and personalised

Elegant staircases can make your otherwise boring décor quite stunning. Choose the tiles in such a way that they match (or contrast) your décor for a contemporary and chic look.

Author Bio:
Mahima Rawat works with the content team at Orientbell Tiles, where she creates interesting lifestyle pieces on home and interior design. She loves presenting options to her readers so they can make the right choices when it comes to their home interiors. Flooring and tiles are her favourite topics. Besides interior design, she also loves to travel, play badminton and listen to music.

How to Get Started in Real Estate Investing with No Money

What stops you from investing in real estate? Is it a poor credit score or a lack of money for buying houses? None of these things should prevent you from owning properties. You only need to know how to invest in real estate with no money. 

You have never thought of doing something like that. We are here to tell you that owning an investment property without cash is possible. Even without money or a good credit score, go after your dream. See our ideas on how to solve this puzzle. 

Borrow A Loan 

It is possible to have no money and no debt. If this is you, it is easier to buy real estate with no money than you think. If you have unpaid debts, investing will be difficult but still doable. Borrowing loans is your best first choice. 

If your credit score is 780 or over, borrowing will be simple. Approval may take less time than if your credit score is 700. Someone with a poor or good credit rating and no money can consider these loan options: 

  1. Hard Money Lenders 

Hard money lenders are private companies that pay more attention to profitable deals than the borrower’s credit history. A hard money lender uses the investment property as collateral. If you default on loan payments, they reserve the right to sell the house and recover their money. 

They are better choices than banks because their loan terms are less rigid. Unfortunately, they work with numbers and will choose the loan amount based on the property value. Also, they charge 10% to 15% interest if you have a low credit score. 

Can you pay back their money despite the higher-than-average interest rates? If yes, search for the best hard money lenders online and tell them about your investment plan. Hard money lenders offer short-term loans and might not fund the entire cost of an investment property. So, you require other money sources to cover the difference. 

  1. Private Money Lenders 

Real estate investing for beginners with no means is more convenient with private money lenders. As you can guess, this is money from a private company or someone you know. Private money lenders barely consider your creditworthiness. All they care about is the loan terms. These loan terms should be competitive enough to convince a private lender to lend you money. 

They do not have inflexible rules on repayment and interest rates. Private lenders are ready to negotiate until each party is happy with the deal. To have their money, you must demonstrate the value and profitability of your real estate investment deal. 

  1. Fha Loan 

Government loans are available to someone who lacks the money to invest in real estate. The most popular ones are the FHA and VA loans. These are beneficial loans because they are easy to obtain if your credit score is good enough. 

Also, the down payment can be more affordable than the amount other lenders demand. Government loans can help you purchase a multi-family house, which you can rent out. So, find out the requirements for getting the USDA, FHA, and VA loans. 

Create A Mortgage With A Property Seller

Seller financing is one of the simplest ways to get into the property business. Choose a seller who does not need immediate cash from their house sale. They will allow you to pay for the house slowly as if it were a mortgage loan. You will pay monthly installments until you purchase the property. 

Seller financing does not require a strict qualifying procedure. It has lenient loan terms, and credit rating is not an issue. As the property seller determines the terms of the deal, they are easier to handle than banks. Getting such a deal among younger people is harder than for retired people. 

An absentee landlord willing to have a monthly income can agree to seller financing. Owners of vacant houses in your area may accept to have you purchase their property gradually. Lastly, find and attend real estate meetings in your neighborhood or another vibrant town. An event like this can enable you to network and locate property sellers who do not require immediate cash.

Find An Investment Partner

Lack of money should not prevent you from finding a partner who does. If your deals are good, your partner can use their good credit history to obtain funds. Nevertheless, they may leave other hard work to you. Ensure your investment partner has the best credit history for easier loan approvals. 

They should be someone you already know and can trust. Ensure the person can offer the resources you are struggling to find to join the real estate investment industry. If you form a partnership, turn it into a formal business with a legal permit. 

Lease And Pay Slowly

We have a trick you might love if you want to know how to invest in real estate with no money. Find a rental house that the owner wants to sell later. Start paying rental fees every month and extra on top. 

The extra cash will be your house deposit. When your lease expires, the landlord can sell the house to you. They will have no reason to doubt your ability. 

Flipping Properties

Some houses cost below the current market price. They are called Under Market Value properties and are investment opportunities. If you are looking into how to invest into real estate without money, Under Market Value properties are a good starting point. You can purchase, renovate to improve value, and sell. 

In other words, you can try property flipping if you have a source of money for the first attempt. These houses cost less money, but you can still bargain the price. You can produce high capital gains if you plan this well. At the same time, flipping usually hides some costs. This can affect your profitability later.

Property Crowdfunding

Young and forward-looking entrepreneurs will not let money shortage ruin their investing dreams. They use crowdfunding to raise business capital. In crowdfunding, property investors form a group and contribute money to form a pool. 

Every member owns a share of the money in the pool. Also, if the group does property development projects, you and other members will get a share of the profits. A crowdfunding group can build rental houses and share profits and any liabilities.

Conclusion

We have explained some points on how to invest in real estate with no money. If you need more information on this, seek help from a professional real estate investment service. They will guide you on obtaining loans regardless of your credit score. Also, they will reveal other simple ways of getting investment properties without cash. 

Author Bio:

Author Name: Liran Koren

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I’m Liran Koren. I’m a real estate pro and co-founder of Luxury Property Care. I believe that through common work we can create a healthy ecosystem, that serves investors, landlords and even tenants altogether.

Yes, it is possible to take control of short-term rentals in your building

Garbage left carelessly by the pool area. Guest parking overflowing with unregistered cars. Loud music blaring until 2am. Vomit in the corner of the elevator. These are the very worst outcomes of short-term rentals.

Fortunately, for the most part, short-term guests are more respectful than this. People coming from out of town opt to book a condo unit on Airbnb, or a similar home-sharing platform, because they enjoy a more authentic travel experience and save a bit of money. And now that a global ban has been placed on parties by the company, renters are less like to disturb neighbors or cause damage to a property.

But condo and apartment communities may still be apprehensive about hosting short-term renters due to security and accountability issues. People don’t generally like the idea of strangers coming in and out of the building all of the time, and with a steady stream of renters taking up parking spots, it can be harder for other residents to secure guest parking for their friends and family. 

A rental management system can help put these issues to rest though and help landlords or managers gain control of short-term rentals (STRs).

Do I really want to support short-term rentals?

As a landlord or property manager, STRs may present themselves as just another problem. But if there are no strict rules prohibiting these types of rentals, and if you’re not prepared to issue violations and/or fines every time a resident offers their place to a short-term guest, then it might be smarter to work with your community as opposed to against them.

Before you do anything, make sure your building can support short-term rentals

Depending on where you are, short-term rentals of less than 30 days may simply not be allowed. Some cities have banned short-term rentals because units were sitting vacant while residents struggle to find a place to live. A good example is New York. It’s illegal to rent apartments for fewer than 30 days in most buildings, particularly Class A dwellings. Other cities do not allow units to be rented out for “transient commercial occupancy” if the building is located in a specific area.

Your city may also have rules or requirements for STR hosts; they may need to obtain a permit or business license.

If there are no city rules geared towards short-term rentals in your area, it’s still important to review your building’s rules. They may contain strict policies about short-term rentals.

Communicate STR rules

STR rules should not be a mystery to your owners and tenants. Even if they are stringent, aim to educate your residents or tenants about best practices, rules and limitations.

Share the rules through email, create posters or pamphlets, and newsletters so that all residents know about the building’s short-term rental rules, and the consequences of operating illegal short-term rentals. 

Use a rental management system that can be replicated and maintained

This part of the process will require a bit more work from management or tenants, but it’s the most efficient and organized way to manage STRs.

Managers/landlords have a couple of options to choose from, but the simpler the system is, the more likely people are to use it.

Once a resident has confirmed that a short-term renter will be staying in their unit, they will need to “register” the guests with the building. The registration system could be:

  • A paper form that residents/tenants submit to the landlord or manager
  • An online form that is emailed to the landlord or manager
  • A spreadsheet that the manager/landlord maintains once they have information about a new guest
  • A digital guest registration and rental management platform that allows residents or management to add a new short-term stay

While there isn’t a correct choice, it’s important to adopt a system that is easy to replicate and maintain. This ensures that guests still make it into the system, even if a new manager takes over or someone is covering for the landlord.

By giving tenants the ability to register STR stays on their own, the workload is reduced for management. That’s one big reason why many would prefer having a digital short-term rental management system like Condo Control. With a standardized registration page, secure cloud storage, and easy editing options, this STR tool makes it easy for landlords and managers to stay in control of short-term rentals. Plus, STR hosts can log every stay without having to take up management’s time.

Benefits of using a digital short-term rental system

In addition to having a record of who has and will be in your building, there are other benefits of having a standardized STR system in place:

  • Searchable record of short-term guests, past and future
  • Option to see how often an owner/resident rents out their unit
  • Welcome letter is automatically sent to short-term renters. Any special instructions or information will get to them before they arrive on the property
  • Option to create custom terms and conditions that align with your property’s rules
  • Security/concierge can easily confirm which vehicles belong to registered short-term guests
  • Guests can be contacted directly if there are any issues during their stay

What happens if tenants are bringing in short-term renters without registering them?

Most residents will comply with STR rules and processes, especially if they are reasonable and easy. However, if there are reports of problematic or unauthorized guests that are linked to the same unit, it’s important to take the appropriate actions. If there are no consequences for ignoring rules, then there is little motivation for anyone to follow them.

Educate the resident

Before taking more severe actions, make sure you remind the resident about the rules and processes for hosting short-term guests. Invite them to ask questions in case they aren’t entirely sure of the registration process.

Violation notices

If the resident has received a friendly reminder and continues to ignore the rules, then the next step is usually to issue a violation notice. You may have to issue several notices before you can fine the resident. Depending on the property, fines may not be an option, however, you can obtain a letter from a lawyer instructing the resident to stop hosting guests who are not registered.

Fines

Condo buildings will have their own fine schedules, but they can be as much as $500 each night if the short-term rental rule is broken. There may be limits on how much you can ask a resident to pay for the same violation, so check with the governing documents before you begin issuing fines.

Mediation

If fines still don’t discourage a resident from breaking the rules, mediation might be the next step. Mediation is a process where a neutral facilitator will try to help the association or building, and the resident, find a mutually agreeable solution. Mediation is often preferable to litigation because it’s less costly, but it can still be a challenging process.

Arbitration

If you cannot come to an agreement with the resident through other methods, then arbitration is the last option before taking the issue to court. Arbitration is a process where an arbitrator conducts a hearing and makes a ruling based on the issue based on the facts presented by the parties. The arbitrator makes a binding decision, meaning the parties are legally obligated to follow the decision that they made.

Conclusion

Short-term rentals can create some discomfort amongst condos and apartments, but it doesn’t have to be a contentious issue if management can implement a system that supports consistency and transparency.   

Author: James Corbett

Everything You Need to Know About Mortgage Funds

Mortgage funds are real estate investments reserved for hedge funds and other institutional investors, but private lenders are now incorporating more mortgage funds into their portfolios. When getting a mortgage, you might wonder where the money comes from and how lenders operate. Mortgage funds are a type of investment used by brokers and lenders to increase their revenues. Want to learn more about mortgage funds? You’ve come to the right place. Whether you’re a homebuyer or just wondering how mortgage funds work, we’ve got you covered.

What Is the Purpose of Mortgage Funds?

Mortgage funds, also known as mortgage pools, help mortgage lenders earn more money because they can make more money with a pool than they can through traditional loans. Mortgage brokers also make origination fees, but mortgage funds allow them to earn fees and arbitrage from buying and selling mortgage assets to generate a higher profit. 

These funds are chosen, approved, and funded by fund managers without the need for approval from individual investors, giving managers the flexibility to fund more deals and increase production, which directly increases their income. Mortgage pools also benefit lenders by offering more protection against risk. Because a fund requires risk disclosures to investors, lenders are protected against risks associated with investments. 

Investors may choose to invest in a mortgage fund instead of other investments because it allows them to generate a passive income through a variety of real estate assets without having to take out mortgages of their own or being too involved in funding the loans. 

Investors have the option to invest in any type of real estate or make plans for a new real estate and construction project to diversify their investment portfolios and hedge against risk to receive better returns and protection from changes in the market. In addition, these lenders are protected from defaulted borrowers, lawsuits, and foreclosure risks because the capital itself isn’t affected, thanks to the pool of other real estate investments. 

How Do Mortgage Funds Work?

Mortgage pools are typically Limited Liability Companies (LLCs) and sell membership interest to investors. Investors receive revenue from the returns of the fund from loan activities. The company itself is managed by another company that brokers mortgages to the fund and oversees the assets daily. In exchange for managing the company, they receive compensation from a variety of fees, including management fees, servicing fees, and origination fees. They may also generate income from interest. 

Mortgage funds don’t typically register with the SEC, thanks to federal exceptions, but shares of the pool may require regulatory oversight. 

Risks of Mortgage Funds

Investing in a mortgage fund is a great way to earn a passive income. However, running a mortgage fund is not passive because it has to scale and grow to support a lender’s business. Mortgage funds require employees, software, vendors, marketing, and all of the different tools, technologies, and departments any other business needs. 

Additionally, while there’s less risk associated with a mortgage pool, funds may have liquidity or cash flow problems even though funds have protections in place to mitigate this risk. For example, accountants typically put safeguards in place to protect the fund or fund the wrong loans based on set guidelines. 

How Do Mortgage Funds Benefit Borrowers?

Mortgage funds can help individuals move into a new home. So far, we’ve talked a lot about why investors choose to invest in mortgage funds, but we haven’t covered an important piece of the puzzle. Without borrowers taking out mortgage loans, there wouldn’t be any mortgage funds. Therefore, borrowers must get something out of the deal. 

Many loan borrowers don’t qualify for traditional bank financing when they’re buying a house for a variety of reasons ranging from not having enough income to a high debt-to-income ratio. Mortgage funds have debt-servicing requirements that are more flexible for borrowers if they believe the debt can be paid off. However, if the debt isn’t paid off, the asset (the house) will cover the amount of the debt and accrued interests, so if there’s a foreclosure, there’s no loss for the investor. 

Additionally, unlike banks, mortgage pools fund loans quickly to help them get more deals and help borrowers whose purchasing may have fallen through. Borrowers typically refinance with the banks at lower rates after a few years if they can get a better deal.

What Happens If a Borrower Defaults?

We’ve already discussed what may happen when a borrower defaults, but let’s cover this topic a little more in-depth because it can affect investor returns. Fund managers mitigate risk with a thorough vetting process of the borrower. However, defaults and foreclosures can still happen when a borrower can’t afford to pay back the loan. In these cases, the property is owned by the mortgage fund and can be sold to recuperate loan costs. If the house can be sold at its original value or higher, there’s virtually no risk for investors. 

Are Mortgage Funds a Good Investment

Mortgage funds are a great way to earn passive income while diversifying your portfolio. They can provide strong and steady returns as long as they’re well managed. Of course, you don’t have to put all your trust in a fund manager, but it’s typically easy if you can find a manager you trust to make good decisions when you’re not around. Mortgage funds are just one small part of an investor’s larger portfolio, but they’re popular because they can add value, especially when mixed with other investments, including stocks. 

Before jumping into a mortgage pool investment, you’ll need to consider the risk and how risk is being managed. You should also vet the fund manager to ensure they have a good track record managing mortgage funds. 

If you decide you want to start investing in mortgage pools, it’s actually quite easy. However, you do need a large sum to begin investing. Some companies allow you to buy in with a minimum investment of $10,000 or higher. However, even if you can afford to do it, this type of investment is not right for everyone. It’s best to talk to a financial adviser to determine if you’re financially stable enough to invest in real estate. 

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer where she shares knowledge about general business, marketing, lifestyle, wellness or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music. 

How to Make Money Building and Renting Vacation Homes?

When it comes to purchasing a residential lot, the reasons for building a house can be numerous, from living in it, establishing an estate, or earning extra money through your rent.

Many people choose to invest in more than one home, specifically building a vacation home to enjoy vacation periods and get out of the routine, but also to take advantage of and rent it when it is not planned to live in it.

The demand for vacation homes in Pakistan is increasing, and this trend is expected to continue, so it is the perfect time to invest in a property, such as Park view lahore , for this purpose. 

This type of investment has existed for more than 45 years and is present almost everywhere in the world, being a success, and even more so now, thanks to media such as Airbnb and Vrbo.

In this article, we will mention how you can take advantage of your investment to acquire residential land and build a vacation home that generates constant income.

What are Vacation Homes?

To begin with, we must define what a vacation home is: as its name indicates, it is a property designed to enjoy your own space while you are traveling.

Vacation homes offer you all the comforts of home; in addition to having the independence that a hotel and other similar types of accommodation do not offer, they are an excellent option to rest in a more private environment and with greater freedoms.

You can find vacation home rentals in oceanfront locations with access to private beaches and even in luxury apartments in the middle of the city.

In this type of property, they have amenities such as a swimming pool, balcony or terrace, gardens, parking, and even —if you are in a luxury residence— services such as a spa, massages, yoga, parks and many more.

Advantages of Building a Vacation Home

Investing in a property is one of the safest investments you can make, whether you are going to live in it or not, especially if the location of your choice is in an area where capital gains are constantly increasing.

Among the main advantages of investing in a vacation home are:

1. Double Benefit: Vacation and Produce an Income

Building a property of this type results in great benefits because you will have at your disposal a house or apartment to vacation with your family, partner or friends in your favorite place and, above all, you will be able to rent it the rest of the year producing an income.

An advantage of buying a property is that it is a tangible asset, so inflation does not affect it as much as money.

2. The Demand for Vacation Homes is on the Rise

The sum in 2019 for investments in vacation rentals was estimated at 170 million dollars according to Research and Markets, and —according to Market Insights Reports— a 5.8% growth in the vacation rental market is forecast during the forecast period of 2022-2028. 

This is because vacation homes offer a different type of accommodation than hotels. In addition, its popularity has been increasing thanks to platforms such as Airbnb and Vrbo, so the investment to acquire real estate for this purpose is increasing.

3. Produces a Consistent Return on Investment

Profitability can be defined as the profit obtained from an investment. To do this, you must consider factors such as maintenance costs and payments for services and taxes.

Investing in real estate is safe since it can maintain or increase its value over the years, depending on several factors such as location, which has a direct impact on the capital gain of the property.

The value of your rent will go hand in hand with the value of your property; therefore, you must make sure that it has been manufactured with quality materials to avoid extra maintenance costs.

Similarly, the amenities and services with which it will be offered for rent play an important role when setting rates.

It is worth mentioning that this return on investment will be safer if it is acquired in areas near important tourist spots. 

How to Make Money Renting Vacation Homes

1. Use Platforms like Airbnb or Vrbo

Hotels have been able to maintain their levels of visits, but —currently— young people opt for simpler options that provide them with greater freedom and privacy.

The popularity of these applications is evident thanks to technological advances, and it is becoming more and more common to think of renting a vacation home for a weekend or longer, thanks to the facilities found in this medium.

Whether the trips are made for pleasure or for work and business reasons, these applications have managed to position themselves among the favorites when looking for accommodation.

What is this about?

Travelers see vacation rentals as an opportunity to make their stay more interesting and a unique experience.

For example, when making a business trip, being able to stay in a luxury apartment with amenities such as a gym, spa, and swimming pool, among others, is more attractive than a conventional hotel room.

Likewise, spending a family stay in a house facing the sea, with all the comforts and services they may need, promises a more peaceful and relaxed trip.

In addition to the above, these types of services are reliable and safe. Furthermore, some of the aspects that make these platforms different are:

  • You will be part of a global travel community of more than 190 countries
  • There is a relationship between travelers and hosts
  • The customer support team is available 24/7 and in multiple languages
  • Payment protection in case of fraud
  • Emergency Assistance

Thanks to this, it is that investing in a property of this type results in great benefits; you enjoy your own space in an exceptional place with all the amenities when you need to vacation, and the rest of the time you put it up for rent through platforms like Airbnb and Vrbo to ensure a passive income.

2. Rent through Social Networks

If you want to take charge of the entire process of personally offering and handing over the house to tenants, then using social networks is a good option since you will maintain direct contact during the process.

Platforms like Facebook Marketplace are perfect for offering a vacation home for rent, especially if you want to keep it local.

3. Adapt an Area for Commercial Premises

A different way of making money with a vacation home is to adapt some of its areas for another purpose, such as commercial premises.

If you have a large enough space, or the location of the property is particularly advantageous, then you can resort to making the modifications with the help of an architect to separate the living area from the premises.

4. Offer Only the Rent of a Room

Even if you plan to live in residence, an idea to generate extra income is to offer a free room for rent, in case there are several rooms. This works perfectly for students, professionals, and even foreigners on vacation.

This option is perfect for taking advantage of that extra space without having to vacate the house and still continue with a constant income.

5. Rent out the Garden or Garage

If your vacation home is located in a busy city with constant traffic, one way to generate extra income is to offer the garage for rent. In places where finding parking space is so difficult, this option is a good way to generate income.

On the other hand, not all homes have spaces such as gardens or terraces. If this is the case for your vacation home, then you can take advantage of it to rent it.

How to Generate More Income with the Same Space?

The same space for rent can generate better income if it is conditioned with this purpose in mind. 

If you plan that your vacation home will also be rented, it is important to consider some factors that mean that the same house can be offered at higher costs.

To begin with, the decoration always plays an important role, since one of the first approaches that the possible client has is photographs. Similarly, make sure you have all the basic services, such as electricity and water, but also benefits such as wifi, air conditioning, etc. The higher the benefits, the better the rate and demand.

On the other hand, if you plan to build a vacation home, then you can plan its details not only to your preference but also to the possibilities offered by putting it up for rent.

And if you want to wait before building your vacation home, there is also the option of renting the land, always trying to make the lease contract to protect your assets.

Factors to Consider Before Buying to Rent

If you want to invest in a vacation home to rent later, it is important that you take into account the following factors before buying:

1. Accessibility and Connectivity

A property that is accessible and close to avenues that connect with important points in the city is a key factor for decision making. 

For example, in a cosmopolitan city, acquiring a residential lot on the main avenue offers better rental opportunities for any type of home that you want to develop in the future, given the facilities it offers to reach areas of tourist interest, like the beach or Fifth Avenue.

2. Growth Projection

Another factor that you should consider when making an investment since it has an impact on the value of the property over the years as well as on the income that can be obtained.

3. Area Security

Many nationals and foreigners seek the peace of mind of being located in a safe area; therefore, it is an essential point to consider before purchasing. Due to factors like this, many investors are constantly betting on the Mexican southeast.

4. Amenities

They are attractive —especially— when it comes to looking for a place to relax and enjoy a quiet vacation, so they influence the purchase decision in the same way.

Location is a factor that greatly influences the value of a property. You must be sure that the area has all the services with constant growth projections.

A property located near services such as hospitals, first-class schools, shopping malls, restaurants, and entertainment centers, among others, guarantees an increase in capital gains and your investment.

Make your Money Grow by Investing in a Vacation Home

Undoubtedly, real estate investment is safe. It guarantees that your money will grow and it is an excellent business option.

The facilities provided by the platforms for renting vacation homes allow you to start receiving income almost immediately.

At Sky Marketing, we have more than 25 years of experience, bringing investors closer to the most promising projects in Pakistan with a guaranteed return on investment.

If you have investment plans in Pakistan, contact us and one of our real estate experts will advise you according to your objectives and investment plans. 

To learn more about how to invest and earn money, we recommend you review our real estate blog, where you will find articles such as rate of return: How is it calculated in real estate? Is it better to buy land or a house for retirement?

Author: M. Rubayet

Where Do Mortgage Lenders Get Their Money?

Mortgage lending is a complex industry that consists of lenders, investors, and borrowers. Many homeowners don’t even know what goes on behind the scenes before, during, or after they get their money. Instead, they’re just happy to be able to afford a home loan and pay it back every month. Of course, mortgage finance has many aspects, and regular borrowers may have questions about how they work, lender requirements, and how much home they can afford. 

One thing many borrowers don’t consider is where lenders get the money to fund the loans. Mortgage lenders give loans worth hundreds of thousands of dollars to borrowers every single day, and they don’t keep this money on hand to fund those loans either. Instead, funding a loan is a complex process with an extensive network of lenders, investors, banks, and other parties. 

How Does a Mortgage Get Funded?

The money used to fund a mortgage goes through a lengthy process before the approved borrower sees it. Some lenders have cash reserves they use to fund loans, while others borrow money. Ultimately, there’s a secondary mortgage market that provides lenders with the funds they need to generate mortgage loans. In this market, lenders purchase loans from other lenders and package and sell mortgages to investors in the secondary market. 

For example, a borrower submits a mortgage loan application, which is reviewed and approved by the lender. To get the money for the loan, the lender can draw from its own cash reserves or take a warehouse line of credit and pay the warehouse lender back when it sells the mortgage loan in the secondary market. 

Ultimately, borrowers don’t have to worry about the second market at all, but they may notice when a different lender or company starts sending them their mortgage bills. Mortgages are bought and sold every day by other companies, and it doesn’t affect how much borrowers pay since their interest rates are locked in from the beginning of the loan. However, mortgage lenders and other institutions can earn more money by selling mortgages and trading them on the secondary market.

How Do Mortgage Lenders Make Money?

Earlier, we talked about how some mortgage lenders might have cash reserves they use to fund at least some of the mortgage loans they give. Mortgage lenders make money in a few different ways, including: 

Origination Fees

When you get a mortgage loan, you pay origination fees that are up to 1% of the loan value. These fees are due along with your monthly mortgage payments, and most borrowers don’t even notice them. However, the origination fee increases the interest rate (APR) on a mortgage based on the total cost of the home. Borrowers can choose to finance the origination fee with the loan amount, but that will increase their interest rate, giving them a higher monthly payment. 

Discount Points

Discount points are part of the mortgage loan, and they’re typically due at the time of closing to help reduce interest rates. One point equals 1% of the mortgage amount and can reduce the total loan amount. Paying points upfront benefits borrowers because it means a less expensive loan, but it also pays lenders right away, adding to their cash reserves. 

Yield Spread Premium

Mortgage lenders may borrow money from banks at low-interest rates to give loans to borrowers. The difference between their interest rate and the one charged to homeowners and the rate they pay for replacing that money is called the yield spread premium (YSP). 

Closing Costs

Lenders also make money from closing costs and other various fees they charge throughout the mortgage application process. Closing costs typically vary by lender, so those fees should be explained in the estimate you get upfront after applying. 

Securities

Mortgage-backed securities are when lenders group loans of different profit levels together and sell them for a profit to free up more money and give out more loans, ultimately earning them more revenue. Pension funds, insurance companies, and other investors can purchase these securities as part of their investment portfolios and also earn an income. 

Servicing Loans

Lenders earn revenue by serving loans after selling securities. If the mortgage-backed security investors can’t process the payments themselves or handle administrative tasks, the previous lender may choose to do loan serving for a fee, allowing them to process the funds. 

Wrapping Up 

While some lenders have cash reserves they use for loans, many don’t keep that kind of money on hand because it doesn’t allow them to fund as many mortgages. So instead, most lenders work with the three major institutions Fannie Mae, Freddie Mac, and Ginnie Mae.

The company you pay your monthly mortgage payments to may not be the one that actually owns your loan. Instead, they might just be the ones servicing the loan and taking a small percentage for a fee when other institutions like Fannie Mae or groups of investors own the loan. 

In most cases, your mortgage loan is pooled with other loans and sold off, but a mortgage lender might continue to service the loan in return for a small fee. Many companies service billions of dollars worth of mortgage loans instead of actually owning the loans themselves. Once your loan is sold in a pool, the lender continues to make money through other methods like origination and closing fees. 

So, if you ever thought your mortgage loan was owned by the company that sends you the bill, you’re probably wrong. Of course, you can always ask your lender how it works if you’re interested, but your bill will stay the same no matter what. In most cases, borrowers don’t need to know where their money came from or where it’s going, but it does raise some interesting questions about how loans are funded and serviced. If you’ve ever wondered why the company name on your mortgage bill keeps changing, your loan is likely continuing to be sold to different companies or serviced by different lenders. 

Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer where she shares knowledge about general business, marketing, lifestyle, wellness or financial tips. During her free time she enjoys being outside, staying active, reading a book, or diving deep into her favorite music. 

If you like to do some further reading, check out https://www.birchgold.com/news/ultimate-financial-solution/

The Top Five Reasons Why Condos are Great for Single Women

Condo living has many benefits, particularly for single women who are interested in becoming homeowners. From increased safety to shared household resources, condos have plenty to offer those who are looking to live in the city. These top five reasons why Tridel Condos in Toronto are great for single women will help you decide if this type of home ownership might be right for you!

Convenience

One of the top reasons why condos are great for single women is their convenience. With no need to mow a lawn or shovel snow, a condo dweller’s life is fairly hassle-free. It doesn’t take much to keep up with a condo, making them simple and stress-free options that can be changed up with seasonal decor in order to create a fresh look. For those who enjoy pampering themselves, there’s also no need to worry about maintenance when it comes to keeping your home clean. Simply hire a cleaning service once every few weeks and you’ll always have a tidy place to come home to.

Flexibility

If you rent, it can be difficult to make big changes to your living situation. If a landlord disagrees with your plans or needs, you may have to look elsewhere if you don’t live in an area with rent control. When renting a condo unit, however, owners usually give tenants more flexibility when it comes to alterations and moving out before their lease is up. Plus, buying condos often takes less cash than houses and requires much lower down payments compared to other housing options.

Safety

While renting an apartment, you don’t own any of your possessions and you have to worry about who might take them. In a condo, everything is yours; even if you have a nosy neighbor, they can’t really break in to steal your stuff because only people with keys can get into most condos. It also increases your peace of mind knowing that everything is safe when you go on vacation or travel for work – condo associations usually offer managers who can keep an eye on things in your absence.

Lower Costs

In most cases, condos are cheaper than single-family homes or townhouses. That’s due to several factors, including smaller floor plans, shared maintenance costs and reduced taxes. If you’re living on a single income—like most singles—it makes sense to go with a condo so you can live large in a small space. Plus, as your budget grows over time, you can always move into a larger unit or purchase a standalone home if you want.

Options Galore

Condo living gives you a variety of options. Renting and buying are popular options, depending on your long-term goals. For example, if you want to settle down in a particular neighborhood, purchasing a condo could be a smart investment. If you’re looking to live in a neighborhood while keeping your options open, renting is an excellent choice.

Why Women Should Consider Investing In Real Estate

Investing in real estates, like condos, is one of many avenues women can take to get ahead. Here are five reasons why they should consider buying a condo.

1. Condo Investment Gives You A Safe Place To Live: If you’re single and want to own your own home, but don’t have much money saved up yet, you might be wondering if it’s possible to buy a home without going broke in the process. Fortunately, there are options out there that make it possible—such as investing in condos instead of houses.

2. Owning A Condo Is More Affordable Than Buying A House: One of the main benefits of buying a condo is that it will be more affordable than purchasing a house. As such, you won’t need to put down as big of a down payment on your condo investment; oftentimes, all you need is 5% or 10% down!

3. You Can Find Your Dream Condo Easily With The Right Help: Finding your dream condo isn’t always easy, especially when you’re on a budget. However, with help from experts who know their way around downtown Toronto real estate, finding your ideal space doesn’t have to be difficult. You can also contact  Tridel Condos to get  the condo of your dreams.

4. You Don’t Have To Worry About Maintenance And Repairs: One of the most stressful parts about owning a home is having to deal with maintenance and repairs. Luckily, that’s not something you have to worry about when it comes to condo living! Instead, your condominium association takes care of these things for you—making life easier overall.

Author: Boris Petrov

The Effects of Dirty Air Ducts on Your Family’s Health

If you’re concerned about the indoor air quality of your home, one of the most effective ways to improve it is by cleaning and maintaining your home’s heating and cooling system, including the air ducts in your home. In fact, dirty air ducts have been shown to have some serious adverse effects on your family’s health, such as asthma and allergies, respiratory diseases, and even cancer! To help you learn more about this issue, here are four things you should know about dirty air ducts.

Why dirty air ducts matter

Clean air ducts keep pollutants away from your body. If they’re dirty, you could breathe in mold, bacteria, and dust mites that would otherwise stay in your HVAC system. These contaminants can cause allergic reactions and other respiratory problems. In fact, when people suffer from asthma or allergies, it’s often due to poor indoor air quality. Regularly cleaning your air ducts can improve your family’s health by preventing airborne allergens from circulating throughout your home.

How dirty air ducts affect your family’s health

You may not realize it, but your home’s air duct system can be a breeding ground for mold, mildew, and bacteria. If these contaminants aren’t regularly removed from your air duct system through proper cleaning, they could affect your family’s health in negative ways. Read below to learn more about how dirty air ducts can harm you and how Ontario air duct cleaning services your vents can help improve your family’s overall health.

One way that dirty air ducts negatively impact your family is by exposing them to harmful biological pollutants like mold and mildew spores. When breathing in large quantities of mold or mildew spores, people are at risk for developing symptoms related to allergy or asthma, such as coughing, wheezing or shortness of breath. Additionally, certain people who have weakened immune systems are also at an increased risk for developing infections when exposed to high levels of biological pollutants present in unclean air duct systems.

5 Ways Dirty Air Ducts Affect Your Family’s Health

It’s not news that air ducts can be dirty and harbor mold, dust mites, and other contaminants. But just how dirty are they? If you have allergies or asthma, you may already have a strong opinion about that question. And if you don’t, it’s time to start paying attention. Here are four ways dirty air ducts affect your family’s health

1. Contaminated air ducts put everyone at risk for illnesses: A study conducted by Texas Tech University found that certain kinds of bacteria could linger in your home’s heating and cooling system for more than two years! This means when you turn on your HVAC system, those same bacteria get blown into your home’s interior—right where you spend most of your time. According to another study published in Microbial Ecology, people who suffer from asthma are particularly vulnerable to these types of infections. As an asthmatic myself, I know first-hand how important it is to keep my air ducts clean.

2. The effects of contaminated air ducts can last for generations: Not only do unclean air ducts pose a serious threat to your immediate health, but they also threaten your family’s long-term well being. For example, researchers discovered that one particular bacterium known as Staphylococcus aureus (or S. Aureus) could survive inside of an air duct system for up to three months! What’s worse is that S. Aureus isn’t even all that dangerous on its own. However, once it gets mixed with other pathogens like E. coli and Streptococcus pneumoniae, things can get really bad really fast.

3. Cleaning your air ducts will improve your indoor air quality: Have you ever wondered why some rooms in your house feel stuffy while others seem fresh and crisp? That difference is likely due to poor indoor air quality. In fact, according to Environmental Protection Agency estimates, indoor air pollution causes roughly 15% of all new cases of asthma each year. One way to improve your home’s air quality is by having your air ducts cleaned regularly.

4. Cleaning your air ducts can help you save money: Did you know that cleaning your air ducts every few years can help lower your energy bills? Well, it’s true! So You can Contact Ontario Duct Cleaning to schedule your service in Brampton. When your air ducts are clogged with dirt and debris, they become less efficient at distributing warm or cool air throughout your home. When that happens, you end up wasting energy trying to compensate for what should be happening naturally.

Author: Boris Petrov