The Soft Skills That Make Successful Leaders

Alex Valentine, Learning and Development Manager, shares the lessons he’s learned since entering a leadership position at Hometap.

What are the most important soft skills for you as a leader?

Emotional intelligence and communication. Understanding and realizing the impact that my words can have on others helps me take deliberate steps to be tactful and thoughtful in how I communicate. Being self-aware of my feelings and inner senses allows me to directly address my needs first before supporting others. I have to put my oxygen mask on first.

What made you recognize the importance of those soft skills, and how did you develop them?

Oftentimes, it was through struggle or challenges. There have been moments in which I haven’t given myself the time and space to feel, or I have communicated poorly when working with stakeholders. In these moments, my message hasn’t landed and has since then led me to make changes to be a better leader to my team and a better peer to my colleagues.

This article originally appeared on builtinbos. Read it here.

9 Home Renovations and Repairs to Do Now Before Retiring

Man repairing shingles on roof

With the extra free time you may find yourself with in retirement, you may see it as a good opportunity to tackle some long-desired home improvements — especially if you’re eventually planning to put your home on the market and relocate. However, there are some repairs and renovations that can be more beneficial to complete before you retire for a couple of different reasons. First, you’ll want your home to fit your lifestyle as you age. Second, it can pay off to make the renovations that can help your home sell before you’re on a fixed income.

Here are some of the most valuable changes you can make to your home before you retire.

Move Bedrooms to the Main Floor

While transitioning to one-floor living isn’t always easy, it can pay off in the long run to do it sooner than later if you want to remain in your home after retirement. If you already live on one level, turning one of the bedrooms into a primary bedroom can help sell your home and potentially add an average of $85,672 to its value. This may include adding an ensuite bathroom, walk-in closet, or dressing room.

Add a Full Bathroom to the Main Floor

Similar to bedrooms, whether you’re planning to stay in your home or planning to sell, having a full bathroom on the main floor of the house tends to be an asset. Not only can it be helpful as you age if you’re remaining in the house, but a guest bathroom can boost the resale value considerably. If you already have a bathroom on the main floor, it may be worth considering making your tub or shower more accessible; this can be as simple as adding a railing or seat.

Replace Your Lawn Areas with Hardscape

Less grass means less lawn maintenance. Save time, money, and effort by taking a look at your lawn and (thoughtfully) eliminating portions that you can fill in with pavement, stone, wood, or concrete. Oftentimes, these changes can boost curb appeal in addition to removing the need for mowing and grass upkeep.

Repair (or Fully Remodel) Your Kitchen

It’s no secret that kitchens sell homes — so if you don’t intend to stay in your home, your kitchen is the first room you should tackle, even if you’re only making relatively minor fixes like installing a new oven. Of course, you’ll likely boost the resale value of your home considerably if you do need to undertake a top-to-bottom refresh: even a mid-range minor kitchen remodel, which averages $26,214, can add an average of $18,927 to your home’s value.

Enhance Curb Appeal

The first impression of your home can be a lasting one, so a little exterior work can go a long way — especially if you’re planning to put your home on the market. Take a look at the siding and see if it could use a refresh; while the typical cost of siding replacement is just under $20,000, it can boost your home’s resale value by more than $13,000.

Make Garage Repairs

Another fairly easy and inexpensive step that both enhances safety and boosts curb appeal is replacing your garage doors, especially if they’re outdated or especially old. You’ll get almost as much back as you put into the replacement, as the average cost of garage door replacement is $3,907 and it can increase your resale value by $3,663.

Replace Your Roof

Roof repairs and replacements can be costly — $10,850 on average for a new metal roof — but not only will many potential buyers typically be curious to know the age of the roof before they purchase a home, ensuring that the top of your house is in tip-top shape can ease your mind and give you less to worry about if you’re staying put.

Check on Essential Systems and Appliances

Along with checking on the roof, doing a full inspection of oil burners, heating systems, and any other key parts of your home’s energy components is smart not only for health and safety reasons, but can save time if you sell your house down the road since potential buyers will be alerted any issues during an inspection.

Fix Any Hazardous Floor Issues

Minimizing the safety risks in your home is always a good idea, but especially so as you age. Taking care of cracks and loose boards in your floor, ensuring that your stairs are secured and railings are properly attached to them, and securing or removing loose carpeting are all relatively quick and cost-effective repairs.

If you’re looking for ways to fund your home repairs and renovations without taking out a loan or otherwise creating debt, a home equity investment could help. Take the fit quiz to learn if a Hometap Investment may be able to help you fund the repairs and renovations you need to live more comfortably in retirement.

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.

3 Ways a Home Equity Investment Makes Moving Homes Smoother

moving boxes in living room

Traditionally, homeowners only had a few financial options to pick from when it came to moving from one home to another. These included temporarily juggling two mortgages with a bridge or other loan (and taking on debt), or selling their home prematurely to gain access to their equity and finding short-term accommodations at hotels, rental properties, or family members’ homes until moving into the new home. Some homeowners have even gone as far as dipping into emergency savings or their retirement fund to cover the cost of two mortgages. 

Timing the transition between houses can be tricky, but planning ahead to ensure everything goes smoothly and according to schedule is essential. Home equity investments are a fairly new option that can alleviate some of the pain points that come along with moving between homes in a few different ways while potentially saving you money as well.

A home equity investment is a loan alternative that allows you, the homeowner, to access a portion of your home’s equity in exchange for a percent of its future value. Unlike a loan, you receive the cash upfront, with no monthly payments and no interest. Here are some of the ways homeowners can leverage a home equity investment when buying and selling.

Fund Renovations and Repairs on Your Current (or Future) Home

If you need to renovate your home prior to putting it on the market — something as small as making several minor repairs or remodeling your entire kitchen to add value — a home equity investment can allow you to tap into your equity to make the necessary updates without taking out a traditional home equity loan or adding debt. Then, when you sell, the investor receives a previously agreed-upon percentage of the sale price.

Similarly, if the home you’re purchasing needs work before you move in, you can also use the equity from your first residence to cover those improvements before you sell it, all without dealing with interest or monthly payments.

It’s important to note that while you can receive a home equity investment for your new property, you’ll typically need at least 25% equity in the home before you can qualify. 

Pay for Moving Expenses and Closing Costs

Beyond the purchase price (which can end up being significantly higher than the listing price in today’s competitive market), buying and moving into a new home certainly isn’t cheap. There are the costs of transporting your furniture and housewares, plus the costs and fees that you’ll encounter at closing time. A home equity investment can help you pull cash from your first residence — before it sells — to put toward these expenses without paying out of pocket.

Maintain Two Mortgages, Debt Free

Finally and perhaps most importantly, a home equity investment can help you manage the mortgages of both your first home and your next one without taking on debt in the process. Often, homeowners use home equity investments as a bridge loan alternative when they need to gather enough money for a down payment to secure the property but haven’t sold their first home yet.

While the best option for you always depends on your personal financial situation and goals, a home equity investment can be a better choice than a bridge loan for several reasons. While bridge loan approval is relatively easy and funding is quite quick if you’re in a pinch — typically three to five days — that convenience usually comes with high interest rates and fees. And, of course, the loan still needs to be paid back on top of your existing mortgage(s), potentially adding more stress to an already tense time. 

Most home equity investment companies don’t have prepayment penalties, making it more convenient to settle the investment whenever it makes the most sense for you.

It only takes five minutes to see if a home equity investment from Hometap might be a good way for you to handle the transition between homes. Take the quiz now.

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.

Beginners’ Guide to BRRRR Real Estate Investing

tools in foreground, man nailing wall in background

It may be easy to confuse with a sound you make when the temperatures drop outside, but this slightly strange acronym has nothing to do with winter weather. BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. This method has gained quite a bit of traction and popularity in the real estate community in recent years, and can be a smart way to earn passive income or build an extensive investment portfolio. 

While the BRRRR approach has several steps and has been refined over the years, the principles behind it — to buy a property at a low price and boost its value to build equity and increase cash flow — is nothing new. However, you’ll want to consider each step and understand the drawbacks of this approach before you dive in and commit to it.

Pros and Cons of BRRRR

Like any income stream, there are advantages and disadvantages to be aware of with the BRRRR method.

Pros:

Potential to make a significant amount of money 

Provided that you’re able to buy a property at a low enough price and that the value of the home increases after you rent it out, you can make back much more than you put into it. 

Ongoing, passive income source

The primary appeal of the BRRRR approach is that it can be a relatively passive source of income; aside from your responsibilities as a landlord (or outsourcing these duties to a property manager), you have the opportunity to bring in consistent monthly rental income for low effort.

Cons:

The risk of miscalculating ARV

When determining the after-repair value (ARV), make sure you’re taking into account the quality of the upgrades you’re making — it’s not uncommon for individuals to cut corners on bathroom or kitchen finishes because it will be a rental property, only to have the appraisal come in less than expected due to this.

Investing in a rental property can be more expensive than a primary residence

Rental property financing (and refinancing) often involves a larger down payment requirement and higher interest rates than an owner-occupied home. 

The time necessary to build up enough equity for a refinance

Growing equity takes time, and depending on current market conditions, it may take longer than you would like for the property to accrue enough to refinance it.

Responsibilities as a landlord

Unless you’re willing to hire and pay a property manager, you’ll need to handle any tenant issues that pop up yourself once you rent out the residence. If you plan to accrue many rental properties, outsourcing property management may make sense, but many landlords choose to manage the first few properties themselves to start. 

The BRRRR Method, Step by Step

Buying

For your first property, you’ll want to familiarize yourself with the characteristics that generally make for a good investment. Ultimately, you’ll want to seek out a property you can purchase at or below market value — as this will increase your likelihood of making money. But you’ll also want to make sure that you’re making a wise investment that makes sense in terms of the amount of work the property requires. 

There are a number of ways that you as a potential buyer can increase your odds of securing a home for as low of a price as possible. 

These include: 

  • Learning about any specific motivational factors the seller has in addition to price
  • Offering cash (if you need it, you can get a short-term, “hard-money” loan), then take out a loan after rehabbing the property
  • Renting the house back to the seller, which is common with the BRRRR method
  • Write a genuine letter to the buyer that explains your vision and goals for the property 
  • Waiving contingencies and buying the home “as is” for a faster closing
  • Get creative with your offer (for example, requesting to buy the furniture with the property)

Rehabbing

Before purchasing a home and rehabbing it, you should do some rough estimations of how much you’ll need to spend on the improvements — including a breakdown of what you can DIY versus what you’ll need to outsource. Make sure to consider whether this rehab will justify a higher monthly rent and whether the value added will exceed the cost of the project. 

Fortunately, there are some models that can help you calculate some of the expenses involved to make a more informed decision.

You can determine the ARV of the home by combining the purchase price with the estimated value added through rehab. One important thing to note is that the estimated value is not the same as the cost of repairs; it’s the value that you believe the repairs will add to the home overall. If you purchase a home for $150,000 and estimate that repairs will add approximately $50,000 in value, the ARV would be $200,000.

Once you land on the ARV, the next step is to determine the MAO (Maximum Allowable Offer)

This equation is slightly more complicated:

MAO = (ARV x 70%) – cost of repairs

So, using the above example, if the After Repair Value of the home is $200,000 and the cost of repairs is estimated at $35,000, the MAO would be $105,000.

It’s worth nothing that there are certain renovations and updates, like landscaping, kitchen and bathroom remodels, deck additions, and basement finishing, that quickly add more value to a home than other fixes.

Renting

There are two important components when it comes to turning your investment property into a rental: determining fair market rent and securing suitable tenants. Websites like Zillow Rental Manager and Rentometer can help you set an appropriate rental amount. It’s also important to do due diligence when it comes to finding tenants. In addition to Zillow Rental Manager, Zumper and Avail can provide screening tools to help you vet potential applicants and perform background checks.

Refinancing 

Once the property gains enough equity, you’ll apply for a refinance. Keep in mind that while specific requirements depend on the lender, most will request a good credit score, a tenant who has lived in the unit for at least six months, and at least 25% equity left over after the refinance in order for you to get the most favorable rates and terms. 

Repeating

This part is pretty simple — once you pull out the cash from one property for a refinance, you can use it to put a down payment on your next investment property, while the refinanced home continues to bring in rental income.

Explore Real Estate Investing Resources

There are a number of resources that can help you learn more about and get started with the BRRRR method. For example, BiggerPockets provides valuable content and forums where you can connect with others in the financial and real estate spaces who are successfully using this approach. There is also a wealth of information on YouTube

Funding Your First Investment Property

If you’ve decided to pursue the BRRRR method for passive income, there are a handful of ways you can access the money you need for a down payment to purchase the property.

As a homeowner, you can take out a home equity loan to get a lump sum of cash. However, you’ll need to pay the loan back on top of your existing mortgage payment(s) and the application and approval process can be rigorous. A home equity line of credit (HELOC) provides a bit more flexibility, but monthly payments can fluctuate each month due to variable interest rates, and your lender can freeze your account at any time if your credit score drops too low. A cash-out refinance, which is part of the BRRRR process, is another possibility to access equity from your primary residence — and can allow you to lock in a lower interest rate. But since you’re taking out a new mortgage, you’ll have to pay closing costs and possibly an appraisal fee.

Finally, if you’ve built up equity in your home and need cash to cover the down payment or necessary renovations, a home equity investment may be a good solution. There’s no interest and no monthly payments, and you can use the money for anything you’d like without any restrictions. You can receive up to 30% of your home value in cash, and don’t have to make any payments for the life of the investment (10 years with a Hometap Investment).

It only takes five minutes to find out if a Hometap Investment might be a good fit for you and your BRRRR goals — take the quiz today.

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.

Career Path: A Day in the Life of Hometap’s Samantha Sandler

What do the career path and the day-in-the-life look like for a Sr Manager of Operation Strategy at Hometap?

We connected with Samantha Sandler to find out!

You recently transitioned from a role in Sales to a role in Operations. What prompted the change? How has the transition been?

I have! That is a great question. I joined Hometap as the fifth salesperson and have seen our team grow to 80+. What I loved most about my time in sales, besides helping our homeowners, was being a part of that growth and the ability to wear a lot of hats and make an impact.

On top of that, I have always had a sincere interest in the forward vision of the company, understanding why we make the decisions we do, and how we can become more efficient on our way there. Many of my one-on-one meetings with my previous manager and VP of Sales, Dan Amato, would be spent learning about the types of meetings he is in and asking about his vision for the company in the future. I ultimately saw an opening for me to give back to the company in a new way and develop a new set of skills on our Operations Strategy team. The role can have a positive impact on sales with our improved processes, so even though I am not directly under the umbrella of sales, I will still be able to influence their success!

This article originally appeared on VentureFizz.com. Read it here. 

How Inflation Will Impact Homeowners and What You Can Do About It

It’s official: Inflation recently reached its highest level in decades, and Goldman Sachs has predicted that the situation may become worse than initially predicted this year. The general cost of goods and services tends to increase during periods of high inflation, and real estate is no exception.

At the same time, senior home equity reached new highs in the third quarter of 2021, growing $396 billion to exceed $10 trillion. This house-rich, cash-poor phenomenon isn’t new, but more than ever, seniors are sitting on a massive source of cash.

And for those who are debt-averse, home equity investments offer homeowners a solution to access their equity without interest or monthly payments.

Jonathan MacKinnon, Hometap’s VP of product strategy and business development, has more than 15 years of experience in management, business and corporate development, and investing and operations. He was the head of growth and operations, consumer finance for CarGurus and the senior director of business operations and general manager for PistonHeads.com.

This article originally appeared on 50 Plus Life. See the article here.

Meet Eric Villalobos

Meet Eric Villalobos

Our Investment Managers are experts in helping you tap into your home equity, but you may have more in common with them than you think. Learn a little more about your Investment Manager, their life outside of Hometap, and why they love working with homeowners like you.

What’s the best part of your job? How does being an Investment Manager at Hometap differ from your past work experiences?
It’s truly difficult to pick just one part of my job that I would consider to be the best part. My job as a whole is the best part. I am not only able to genuinely help homeowners, but I am able to do so while working alongside talented individuals while feeling 100% supported by Hometap. With that said, it’s important to understand that a lot of times these aren’t simply financial transactions between homeowners and Hometap, but that they are an emotional time in a homeowner’s life as well. Everyone’s story is different, but it is a rewarding feeling when you are able to help a homeowner achieve their financial goal and help them achieve an emotional goal as well. This rewarding feeling is something that I haven’t felt at previous organizations. I think a big part is due to the fact that we are on a mission to make homeownership less stressful and more accessible — and we truly stand by that.

Is there a particular homeowner story that really made an impact on you? What is it and why?
I’m currently working with a homeowner who has a business that she started with her late husband about 20 years ago. She began experiencing some hardships with the business due to the pandemic. The business is beginning to pick up again, but she found herself in a difficult situation she never thought she’d be in. Although the business started doing well again, she was in need of funds for the business. I could tell during our initial call how much this meant to her and the importance of being able to access the equity in her home. She had tried traditional financing options, but was constantly turned away due to her inconsistent income in the last two to three years. At this point, she had thought about giving up and letting the business go under, until she found Hometap. We began moving forward with the process and we came across some home valuation discrepancies. I conveyed this to her and I was able to hear the homeowner’s voice starting to crack at the thought of her business going over. I empathized with her and heard her out. Ultimately I was able to convince her to not give up yet, as nothing was finalized yet. She hesitantly agreed while letting me know that she had lost hope. A week letter we received the conditional approval and are simply waiting for scheduling availability. I was able to speak with the homeowner and relayed this information. I could see and hear the smile and joy behind the phone. She understood that nothing was finalized yet, but was hopeful that we were that much closer to achieving her financial and emotional goal. She expressed her deepest gratitude to me and to the entire Hometap team and let me know that finding Hometap was truly life changing.

What are your favorite things to do when you’re not working?
When I’m not working, there’s nowhere else I’d rather be than on a mountain doing some mountain biking. I also like to go to the gym as it helps me decompress.

Describe your dreathroum home.
My dream home is a ranch somewhere in Montana. As someone who loves the outdoors, I’d love to be able to live in a ranch in Montana, with mountains nearby for mountain biking.

What’s one thing you wish people knew about Hometap?
Simply put, I wish more people knew about Hometap’s mission statement. We truly are trying to make homeownership less stressful and more accessible. I’d argue that a home is most Americans’ number one asset. They’re sitting on this asset with no real means to access it. By investing in the home alongside the homeowner, we are able to assist them in reaching their financial goals while overcoming the many obstacles you see in traditional financing.

Reverse Mortgages See Steep Monthly Pullback in September

Endorsements of home-equity conversion mortgages fell to a two-and-a-half year low in September, as lenders cautiously eye competing home-equity products , such as HELOCs, Reverse Market Insight found.

Total endorsement volumes dropped 43.5% to 3,235 from 5,727 in August, with numbers in all U.S. geographic regions trending downwards. Endorsements also fell on a monthly basis at each of the ten top HECM lenders. The last time numbers came in lower was in April 2020, during the early stages of the coronavirus pandemic, when the volume plummeted to 1,601.

At the same time that mortgage rates have climbed, reverse mortgage lenders find themselves facing a growing list of nonbank originators offering home-equity products . In efforts to drive business and counter diminished incentives for refi nance mortgages, several lenders, including loanDepot, Rithm Capital and Guaranteed Rate, signaled their intentions to roll out home-equity lines of credit this year, while alternative financing companies, Hometap and Point raised millions in investor capital as they grew their national footprint. Rocket Mortgage, the country’s top originator by volume, also introduced a home-equity loan this summer.

This article originally appeared on National Mortgage News. See the article here.