13 Questions with Hometap’s Head of Engineering

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As Vice President of Engineering, Steve Leibman has an uncanny ability to both oversee his team of engineers and developers and roll up his sleeves and get into the weeds himself a true subscriber to lead by example. Ensuring a seamless experience for both the user (in our case, our homeowners) and our internal teams takes the work of many, and Steve leads the charge, without ever losing his playful sense of humor.

Photo of Steve Leibman

Q1: At what point in your education did you take an interest in software engineering? 

In high school, I put a lot of energy into visual art. When it came time to choose a destination for college, I picked Cooper Union in New York City, because it has the unique combination of having both one of the best undergraduate engineering schools in the country as well as a great art school. That, along with the fact that it was free. The thing that ties the apparently different concepts of art and engineering together for me is that they’re tools for taking ideas and turning them into reality. I was drawn to a career in software when I discovered that it provides an easier, quicker, more iterative way to create an embodiment of ideas than any other tool I know.

Q2: You’ve worked at startups and well-established businesses like Paypal and Microsoft – what brought you back to a startup?  

In startup companies, people work hard to put new ideas into action. When I was at Microsoft and PayPal, each of those experiences happened because our startups had done something successful and then gotten acquired by a larger organization. So in a way, I’ve mostly always been at startups.

Q3: How do you define and measure the success of a product? 

Products need to deliver value to people in the real world. Great ideas are nice, but until they’ve been converted into something that real people are using, they’re not a success.

Q4: What’s the biggest challenge you face as the head of engineering?

Coordinating the software engineering team is even better than being hands on, building the individual pieces. Because in this role, I get to help ensure that a team delivers something bigger, better, and more ambitious than anything we could have each done on our own. But that’s also where the challenge lies — keeping everybody operating smoothly together and pulling in the same direction takes work.

Q5: How do you stay apprised of the most current practices within engineering? What are you reading? Watching? Listening to? Following? 

A few years back, a guy on my co-ed recreational soccer team put together a news website as part of the startup accelerator program he was running. Paul Graham’s Y Combinator program turned out to be quite successful, and today, Hacker News is still the best source of information for what’s going on in the software world.

Q6: You have a patent for checkpointing and restoring program state! Now, what exactly  does that mean? 

At Microsoft, we were developing a custom language for science and engineering applications. We wanted the code to be able to run on a distributed cluster of computers, and to make it so that any part of the program could be killed and restart where it left off, even on a different kind of computer, and to be able to do all this without the programmer having to worry about that possibility. There are several things that make this challenging, and the patent is for a new way of making it work.

Q7: Can you tell us about your position on the Board of Directors for Bike to the Sea?

There’s an abandoned rail line that curves its way through five towns from Boston to the waterfront in Lynn, Massachusetts. The Bike to the Sea organization formed around the idea of using that right of way to create a multi use path connecting these communities. In some ways this seems fairly straightforward, but in order to make it happen, it took two decades of volunteer work, coordination of politics in five municipalities, new legislation at the state level, and lots of fundraising to launch a multimillion dollar construction project. Parts of the path have now been in active use for a few years, and it has grown up to be a home to community gardens, parks, and public art. Final construction is due to be complete next year.

 

Photo of Steve and his son on a bike

 

At Hometap 

 

Q8: What are the qualities you’re looking for when recruiting members of your team? 

Our software products exist to support our mission of helping homeowners, and so the most important thing for the people who build that software is for them to be tuned in to the needs of that audience. This means we need people who are thoughtful, detail-oriented, and good communicators. We have a small team, so everybody also needs to be inclined to step up and take ownership of a big piece of the puzzle.

Q9: Do you have a go-to interview question when interviewing? What is it? 

I always want to hear examples from people’s past experience that tell me how they tackle challenges. Do they learn from failure? Do they have the intellectual curiosity that leads them to understand what’s going on inside a system? How do they make sure that they’re building the right thing, and how do they change direction when necessary?

Q10: What was it that appealed to you about Hometap as a business?

I was drawn primarily to the people. We have a team who has seen an opportunity to make a positive difference and to build a successful business, and they have the experience to make it happen.

Q11: If you could trade jobs with anyone else at Hometap for a week, what position would it be?

I would want to rotate through all the jobs. From sales to marketing to design, they’re all interesting and difficult in their own way.

Q12: What’s one quality someone needs to be successful at Hometap?

They need to be a good team player. We have aggressive goals that can only be met by working together. This means that they need to value other people’s contributions, they need to assume positive intent in others, and they need to step up to help move initiatives forward.

Office Culture

 

Q: What qualities do you look for in a company’s office culture?

Hometap has done a better job of codifying our cultural values than most other companies I’ve seen. These values happen to align quite well with what I think is important, so I’ll lean on these for explanation. Our expectations are that everybody is both a good owner and a good neighbor. A good culture has people who are taking charge of what they think is important (not waiting for others to do it), while also creating a supportive environment that allows everybody else to similarly take charge of the things they can contribute to. 

Financing a Home Renovation: What Construction Loan Is Best?

Home being renovated

Making home renovations has two obvious perks. First, you can make upgrades that fit your lifestyle and allow you to enjoy your home even more. Second, the upgrades you make now may help increase the value of your home, so that when it comes time to sell, you make a profit. 

However, the way you fund your home renovation can have serious implications for your short- and long-term finances. For repairs that will cost more than you can afford to pay in a month, you may want to look at financing options beyond your credit card. That way, you can avoid paying the high interest rates that come with a credit card balance.    

If you don’t have the savings stashed away to fund your renovations, you do have other options. You can build your cash flow for home renovations, use your home equity, or use a home renovation loan.

How Does a Construction Loan Work?

Construction loans — also known as home renovation loans or home remodel loans —are a common way to finance home improvement projects, as they often have lower interest rates than credit cards. With a home loan for construction, renovation costs are rolled into your mortgage, so you’re essentially making one payment each month that includes both the cost of your home and the repairs or upgrades you plan to make.

This can be beneficial if you’re purchasing a fixer-upper, but if you’re already in your home, the cons may outweigh the pros as you’ll be refinancing your home with a new mortgage. And, while renovation loans may be more appealing for homeowners without home equity, homeowners with home equity have additional options for accessing funds.

There are three main types of renovation loans that allow homeowners to make updates now rather than waiting to have enough cash saved. 

FHA 203(k) Loan

Insured by the Federal Housing Administration, the 203(k) loan comes in two forms: standard and limited.

The standard 203(k) loan covers major structural repairs and other renovations that cost at least $5,000. There is no cap on repair costs, however, you have to hire a U.S. Department of Housing and Urban Development (HUD) consultant to oversee renovations and projects. The HUD lists the projects covered by a standard loan

The limited 203(k) loan is capped at $35,000 for renovations, not including structural repairs.

Pros to 203(k) loans:

  • Can use a standard loan to tear down and rebuild on the foundation.
  • Potentially easier to secure funding; since they’re insured by the government, lenders may have less strict credit qualification requirements.  
  • If your home isn’t inhabitable as you make renovations, you may be able to include up to six months of mortgage payments in your loan. You can continue to make monthly payments, but live elsewhere.  

Cons to 203(k) loans:

  • No do-it-yourself work with strict requirements on what renovations are covered.
  • Must use an FHA-approved lender.
  • Cannot use this loan with the intention of flipping the house or on homes that are under a year old.
  • With the standard loan, funds that aren’t going to the seller (if buying the house) or to pay off an existing mortgage (if refinancing) are placed in an escrow account and released as rehabilitation is completed.
  • Improvements must be completed 60 days from the loan’s closing date for limited loans and within six months of closing for standard loans. You will need a detailed estimate of the cost of work to be done and timeline from your contractor before your loan is approved. 

HomeStyle Loan

Offered by Fannie Mae, HomeStyle loans are one of the more flexible renovation loans in that there are fewer restrictions on what you can use the funding for. Homeowners can get 75% of “the sum of the purchase price of the property, plus renovation costs,” or 75% of the “as completed appraised value of the property” — whichever is less.

That means if you’re refinancing your home, an appraiser will estimate the value of your home post-renovations. If they determine the value of your property with renovations completed will be $300,000, then the financing amount can’t exceed $225,000. 

Pros to HomeStyle Loans:

  • Can use funds for almost any renovation project, whether cosmetic or structural, including “luxury” updates like a swimming pool or landscaping.
  • Can use the loan on an investment property.
  • Can complete final work on a brand-new home, as long as the new home is 90% complete.
  • Like a 203(k) loan, you may be able to include up to six months of mortgage payments in your loan if you need to live elsewhere while renovations are completed. 

Cons to HomeStyle Loans:

  • Like the 203(k) loan, your money sits in an escrow account and contractors get paid once they complete certain renovation tasks.
  • Must use a certified contractor who needs to include a detailed cost estimate of the work you want done — potentially before the loan is approved.

CHOICERenovation Loan

Guaranteed by Freddie Mac, the amount of money you can receive for renovations using a CHOICERenovation loan is similar to the HomeStyle loan in that you can make renovations that cost up to 75% of the as-completed appraised value.

Pros to CHOICERenovation Loans:

  • Can use the loan to repair your home if it’s been hit by a natural disaster or to fortify it against a future disaster. 
  • If buying a home and taking out a loan like Freddie Mac’s Home Possible loan, you may be able to make DIY renovations in exchange for sweat equity (but you’ll need to go through an appraisal before and after improvements).

Cons to CHOICERenovation Loans:

  • All renovations must be completed within a year.

If none of the specialized loans above make sense for you due to use restrictions or approval criteria, yet another option for financing fixes is using a personal loan as a home improvement loan or home repair loan. They typically don’t require any collateral and provide funding quickly, but come with high interest rates and additional monthly payments, so it’s important to do your homework.

Read 5 home renovations to make before you sell >>

Other Home Improvement Financing Options

When you get a home renovation loan, you generally must use the funds toward making home improvements, often with strict requirements about what qualifies. The paperwork involved will be similar to when you first took out your mortgage.

That can slow down the process and, if your mortgage is locked in at a low interest rate or you only have a handful of years left to go on your mortgage, you may not want to mess with it (of course, if you can lower interest rates and/or the time left on your loan, you’ll want to do the math to decide if these options make the most sense).

Current homeowners should first look at how much equity they have built in their homes and the ways they can access that money. That way, you also won’t be saddled with closing costs and other fees associated with refinancing.  

Compare your options: Get cash for your home equity

A home equity investment allows you to get a portion of the value of your home in cash now in exchange for a share of the future value of your home. Since it’s an investment, there are no monthly payments or interest. You settle the investment when you sell your house.

Download our home equity 101 guide

Once you have the cash, you can make whatever home improvements you’d like, including improvements on an investment property, vacation home, or multiple properties.

Some home equity investments, like that offered by Hometap, also offer renovation adjustments. That means you can request an adjustment to the agreed home value to account for any appreciation in the value of the property as a result of certain qualified renovations amounts costing  $25,000 or more.

When you settle your investment, you provide Hometap with the evidence of the renovation, including receipts and photographs of the renovation work. If approved, following an appraisal, the amount of a renovation adjustment will be the difference (as determined by an appraiser) between the appraised value of the property post-renovation and the hypothetical value of the property without renovations. Accepted renovation adjustments are not guaranteed.

Read Matt’s story about how he used an equity investment to build a rental property for additional income. 

Pros to home equity investments: 

  • No time limitation on renovation projects; investment is settled within 10 years. 
  • Homeowners can fund DIY projects, outsource to professionals, and have no limitations on who to hire or types of projects.
  • No interest and no monthly payments. 
  • Cash is available to the homeowner in a lump sum in as little as three weeks. 

Cons to home equity investments: 

  • Investment is settled within 10 years, which means if the homeowner doesn’t plan to sell the home and use the proceeds to settle, they will use savings, refinance, or take out a loan. 
  • Must have a minimum of 25% equity in the home to qualify. 

Which Renovation Loan Is Best? 

The best way to finance a home renovation will depend on the renovation you want to make, your current financial situation and future financial goals, among other factors.

Look into all of your options and consider the renovations you want to make. Some renovations have a higher return on investment than others, so you’ll want to prioritize projects that you may need, but also the ones that will help increase the value of your home.

See how homeowners have used Hometap to fund renovations »

Take our 5-minute quiz to see if a home equity investment is a good fit for funding your home renovations.

YOU SHOULD KNOW…

We do our best to make sure that the information in this post is as accurate as possible as of the date it is published, but things change quickly sometimes. Hometap does not endorse or monitor any linked websites. Individual situations differ, so consult your own finance, tax or legal professional to determine what makes sense for you.

Home Equity Investments 101

Your guide to understanding this alternative home financing option

If you’re currently researching home financing solutions, you know it can be overwhelming. That’s why we compiled this comprehensive guide.

Read the guide to learn:
  • How Share of Home Value vs. Share of Home Appreciation differ
  • Key terms used in the home equity investing space
  • How Hometap compares to other home equity investors
  • The home equity investing process versus traditional home financing solutions

Hometap Now Making Home Equity Investments in Twelve States

Boston, Mass. – July 15, 2020 – Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, announced today that it is now investing in twelve U.S. states: Arizona, California, Florida, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Virginia. The company has doubled its state count since December 2019, bringing its total reach to approximately 57% percent of U.S. homeowners.

Unlike a lender, Hometap makes investments in homes in exchange for a percentage of the future value of the property, providing homeowners debt-free cash today with no interest or monthly payments. Homeowners can use the cash to accomplish their financial goals or fund significant expenses – from paying off credit card debt or building their dream kitchen to funding their small business or providing some financial security during uncertain times.

“Hometap has proven to be a very attractive alternative financing solution during this turbulent time,” said Jeffrey Glass, CEO of Hometap. “I’m thankful that we’ve been able to not only help homeowners during this time, but also expand our geographic footprint and increase the number of properties across the United States in which we can invest.”

With the COVID-19 pandemic wreaking havoc on the U.S. economy these past few months, millions of people have lost some or all of their income. While stressful for all Americans, it’s taken an especially big toll on homeowners who still have monthly mortgage payments, are in need of home repairs, are struggling to keep their businesses afloat, or have other high ticket expenses that just can’t be put on hold. Meanwhile, many traditional lenders have tightened standards or restricted offerings altogether, including cash out refinances and home equity lines of credit (HELOCs).

One homeowner who turned to Hometap after evaluating several conventional home equity loans, HELOCS, and other home equity investors is Michelle M. from Cambria, California, who wanted to pay off credit card debt and improve her monthly cash flow during retirement. “The Hometap process was by the far the most customer-friendly, efficient, and straight forward process I’d ever been involved with,” said Michelle. “I was simply amazed at how quick the turnaround was, even in the middle of a pandemic. I’m now able to get my finances in order and have a cushion in a high-yield savings account, which is a huge comfort in these volatile times.”

According to Black Knight, Americans had $6.2 trillion in “tappable equity” during the fourth quarter of 2019. The average amount of available equity was $119,000 during that quarter. And during the first quarter of 2020, one in four American homeowners were considered “equity-rich”, according to ATTOM Data Solutions. “Although the U.S. has become increasingly house rich and cash poor, the options for accessing that equity have become increasingly limited as a result of the coronavirus pandemic,” said Glass. “During this unprecedented time in history, Hometap has worked very hard to keep our operations running smoothly, while expanding into multiple new states across the U.S. and continuing to execute on our mission of making homeownership less stressful and more accessible.”

About Hometap

Hometap is a smart new loan alternative for tapping into home equity without taking on debt. Homeowners receive debt-free cash by selling a percentage of the equity in their homes to Hometap. They can use the cash for anything, from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sale price or current appraised value. Learn more at https://www.hometap.com/.

Hometap Now Making Home Equity Investments in Twelve States

Hometap in 12 states

Boston, Mass. – July 15, 2020 – Hometap, which provides a smart, new loan alternative for tapping into home equity without taking on debt, announced today that it is now investing in twelve U.S. states: Arizona, California, Florida, Massachusetts, Maryland, Michigan, Minnesota, New Jersey, New York, North Carolina, Oregon, Virginia. The company has doubled its state count since December 2019, bringing its total reach to approximately 57% percent of U.S. homeowners. 

Unlike a lender, Hometap makes investments in homes in exchange for a percentage of the future value of the property, providing homeowners debt-free cash today with no interest or monthly payments. Homeowners can use the cash to accomplish their financial goals or fund significant expenses – from paying off credit card debt or building their dream kitchen to funding their small business or providing some financial security during uncertain times. 

“Hometap has proven to be a very attractive alternative financing solution during this turbulent time,” said Jeffrey Glass, CEO of Hometap. “I’m thankful that we’ve been able to not only help homeowners during this time, but also expand our geographic footprint and increase the number of properties across the United States in which we can invest.”

With the COVID-19 pandemic wreaking havoc on the U.S. economy these past few months, millions of people have lost some or all of their income. While stressful for all Americans, it’s taken an especially big toll on homeowners who still have monthly mortgage payments, are in need of home repairs, are struggling to keep their businesses afloat, or have other high ticket expenses that just can’t be put on hold. Meanwhile, many traditional lenders have tightened standards or restricted offerings altogether, including cash out refinances and home equity lines of credit (HELOCs). One homeowner who turned to Hometap after evaluating several conventional home equity loans, HELOCS, and other home equity investors is Michelle M. from Cambria, California, who wanted to pay off credit card debt and improve her monthly cash flow during retirement. “The Hometap process was by the far the most customer-friendly, efficient, and straight forward process I’d ever been involved with,” said Michelle. “I was simply amazed at how quick the turnaround was, even in the middle of a pandemic. I’m now able to get my finances in order and have a cushion in a high-yield savings account, which is a huge comfort in these volatile times.” 

According to Black Knight, Americans had $6.2 trillion in “tappable equity” during the fourth quarter of 2019. The average amount of available equity was $119,000 during that quarter. And during the first quarter of 2020, one in four American homeowners were considered “equity-rich”, according to ATTOM Data Solutions. “Although the U.S. has become increasingly house rich and cash poor, the options for accessing that equity have become increasingly limited as a result of the coronavirus pandemic,” said Glass. “During this unprecedented time in history, Hometap has worked very hard to keep our operations running smoothly, while expanding into multiple new states across the U.S. and continuing to execute on our mission of making homeownership less stressful and more accessible.” 

About Hometap

Hometap is a smart new loan alternative for tapping into home equity without taking on debt. Homeowners receive debt-free cash by selling a percentage of the equity in their homes to Hometap. They can use the cash for anything, from paying off credit-card debt to starting a business to buying a second home. When the home sells or the homeowner settles the investment, Hometap is paid out an agreed-upon percentage of the sale price or current appraised value. Learn more at https://www.hometap.com/.

 

3 Steps to Getting Your Small Business Back on Track

Bar exterior

Starting in March of 2020, businesses of every size and industry were forced to slow down, pause production and hiring, and close altogether as the COVID-19 pandemic forced shelter-in-place ordinances and strict social distancing protocols. While the severity of closings varied state to state and fluctuated as the pandemic progressed (and digressed), small businesses showed incredible ingenuity, from moving brick-and-mortar businesses completely online to, in some cases, coming up with entirely new business models. 

Restaurants have turned to takeout and selling grocery provisions (including, thank goodness, toilet paper) and transformed parking lots into al fresco dining spaces. Retailers have restructured to offer curbside ordering and turned to social media to do live events like Q&A sessions. Some businesses even started making new products, such as distilleries pivoting to make hand sanitizer and clothing retailers sewing masks. 

Other businesses decided it was best to close down entirely and use the time to create a Plan B. It was estimated that 35.7 million Americans who work for a small business were at risk of unemployment as of April, and 20.5 million Americans were confirmed unemployed as of May. And an estimated 100,000 businesses have permanently shut their doors to date. 

Regardless of whether COVID-19 or completely unrelated factors have forced you to slow down or stop operations, if you find yourself in a position where you need to get back on track, consider the below advice on how to get started.

1. Determine Needed Funding for Your Small Business

For most small businesses, cash flow is the major issue, with nearly 50% of small business owners experiencing reduced customer demand, according to a National Small Business Association survey conducted in March.

The first step to getting back on track is determining the size of your cash flow issue. Take a look at your financial statements and see just how far you are behind on your year-end goals, as well as where you stand compared to last year. Only when you know the damage can you come up with a solution to move forward.

small business financing options

If you completely shuttered your doors and lost inventory, factor in the amount of capital you’ll need to get up and running. Will you need to invest additional time? If you laid off employees, what will you need to do to get them back? If you paused advertising, how much do you need to get your lead pipeline flowing? If opening back up means enforcing a new social distancing protocol, that will likely come with its own costs, whether it’s in the form of training, sanitation products, PPE materials, or something more significant like expanding your store’s square footage. With many customers spending more time online—and likely to do so for the foreseeable future—you may find increasing your online ad budget provides a solid ROI if you were spending a bulk of your marketing dollars on offline advertising. 

2. Adjust Business Goals

With an idea of where your business currently stands and how much money you need to get back on track, you’ll want to adjust your year-end goals accordingly. Depending on your business and whether or not you closed your doors for a period, will dictate the need to adjust your year-end goals, and by how much.

Set realistic goals based on the adjustments you plan to make as well as on your local climate. Some companies are taking a wait-and-see approach as the situation continuously evolves. You can certainly take this approach, but consider evaluating month-to-month so you’re not completely caught off guard by where you stand and what you need to do to close the gap as much as possible.

If you’re an entrepreneur, you likely already know the value in being flexible as a business. Just as states are taking a phased approach to reopening, treat the rebuilding of your small business as a phased approach.

3. Explore Your Financial Options

How much funding you need could determine the options you decide to pursue. At the very least, Harvard Business School Working Knowledge recommends asking your landlord for rent extensions and your bank to defer interest.

The CARES Act, signed into law March 27, 2020, contains more than $3.75 billion in relief for workers and small businesses. Through the Small Business Administration (SBA), the new legislation established several ways to receive funding.

The act enabled the SBA to begin processing Economic Injury Disaster Loan Emergency Advance (EIDL) applications that were in its queue. This loan is designed to provide up to $10,000 to businesses, and, because it does not have to be repaid, is effectively a grant.

Other special programs include the Paycheck Protection Program (PPP) providing loan forgiveness for retaining employees, the SBA Express Bridge Loans for businesses that already have a relationship with an SBA Express Lender, and SBA Debt Relief for businesses that already have certain types of SBA loans. But funding for all these programs is limited.

While you can still apply for other small business loans, the thought of taking on more debt when so much is still unknown isn’t appealing to everyone. 

If you’re a small business owner and a homeowner, you also have the option of using your home equity to fund your small business. But note that there are several drastically different ways to go about this.

Read more about Small Business Loans vs. Home Equity Loans

Home equity loans are an option, but still requires monthly payments and accrues interest. A home equity investment offers a unique way to access home equity without the monthly payments or interest. As an investment, rather than a loan, it allows you to access cash now in exchange for a share of the future value of your home without a loan. If your small business doesn’t come with a standard W2, you may also find this route preferable, as the application process is often more streamlined than a bank loan.  

Weigh your options carefully, as there is no one-size-fits-all solution. As with any major decision, you want to consider the pros and cons with an eye toward downstream impacts. Use your business’s current financial situation, as well as its projected financial situation, to find the option or options that are best for you and your business. 

Take our 5-minute quiz to see if a home equity investment is a good fit for your small business.

LEGAL DISCLAIMER

The opinions expressed in this post are for informational purposes only. To determine the best financing for your personal or business circumstances and goals, consult with a licensed advisor.

Hometap review: How a Hometap investment works

Previously, in order to access the home equity in your home, you would need to take out a home equity loan or line of credit. This would come with added debt and a monthly payment. Today, however, there are several new ways to access your home equity. One such option, a home equity sharing agreement through Hometap.

This article is a Hometap Review from LendEDU and originally appeared on LendEDU.com. Read the full article here.

How home equity sharing companies work & where to find them

A home equity shared agreement is an agreement between you and an investment company that gives the company a portion of your home’s equity in exchange for cash.

You’ll lose partial ownership of your property with these agreements, but you’ll get access to interest-free cash, and you also offload some of the risks of falling home prices.

This article originally appeared on LendEDU. Read the full article here.