Best advice for businesses to determine the amount of funding they will need
“When launching a business, estimating your start-up costs is equally as important as projecting your cash flow. These costs should include both one-time expenses, like incorporating your business, and ongoing costs, like utilities. You’ll also want to consider essential expenses (e.g., employee salaries) versus optional ones (e.g., graphic design or writing services). Once you’ve determined your start-up costs, calculate your cash flow because your business can be profitable but still lose cash through spending that doesn’t show up on your profit and loss statement. When it’s done correctly, a cash flow forecast will help you prepare ahead of time to account for seasonal lulls in business or anticipated periods of low revenue. This small business budgeting template helps quickly and easily determine the amount of money you’ll need to get your business off the ground — and provide a basis for comparison once you’re up and running.”
Flood. Tornado. Wildfire. As a homeowner, none of these are words you want to hear. While home construction in areas prone to natural disasters has advanced in the past several decades to provide better protection, properties in these regions still come with significant risks. However, Americans are continuing to purchase and move to vacation homes in places like Cape Coral, North Port, and Tampa, Florida — likely due to the reasonable cost of living, low property taxes, and proximity to both water and outdoor attractions.
It’s likely that many of these buyers simply aren’t aware of the potential issues that come along with buying a home in these areas.
“…House hunters should be aware that purchasing in a disaster-prone area not only puts them and their home at risk, but their finances as well. Home values in climate-endangered places may fall in the coming years as consumers learn more about the risks to properties in these areas,” says Redfin Senior Economist Sheharyar Bokhari. In fact, nearly all second homes bought within the past two years (94%) are at high heat risk, while more than three quarters (78%) have high storm risk.
According to the results of an August 2022 Redfin survey, current homeowners in these locales are quite aware of and proactive about the threats: 71% of Florida homeowners have spent money to protect homes from climate risk, and more than half of all homeowners (58%) have. More than a third (33%) of all homeowners have also put more than $5,000 into climate-related house projects. The majority (26%) of improvements were to mitigate extreme heat, while 22% invested in steps to help minimize extreme cold, 16% took measures to prevent flooding, and 14% focused on guarding against hurricanes and other tropical storms. Among Florida homeowners, this percentage was nearly triple the national figure, at 40%. Overall, hurricane and major storm coverage actually saw the biggest increase among all homeowners since February 2021, growing from 19% to 29%.
Here are the most common types of disaster-specific coverage and how costs vary across the U.S.
Flood Insurance
Redfin’s survey found that 36% of homeowners have flood insurance, which comprises the highest portion of respondents. However, many of those with flood coverage are still underinsured overall; just 18.5% of homes located in the areas required to evacuate due to Hurricane Ian had coverage through FEMA’s National Flood Insurance program.
While the price of flood insurance is dependent on your location, the national average cost through the National Flood Insurance Program (NFIS) is $771 per year. States with the most expensive flood insurance include Vermont ($1,652/year), Connecticut ($1,504/year), Rhode Island ($1,458/year), Pennsylvania ($1,407/year), and West Virginia ($1,355/year).
Standard homeowners insurance usually covers hail and wind damage, but not high winds or tornadoes specifically. If you live in an area that is at high risk, like the states that are part of “Tornado Alley” (generally Texas, Oklahoma, Kansas, Nebraska, Iowa, and parts of Louisiana and Colorado), you’ll want to consider purchasing windstorm insurance as part of your standard policy.
The cost of a windstorm insurance add-on depends on your particular geographic region, and has a deductible that’s a percentage of the total dwelling coverage amount, which usually ranges between one and five percent. However, in coastal areas, it can be up to ten percent. Alternatively, the deductible may be a fixed amount from around $500 to $5,000.
States with the highest premiums by windstorm deductible amount are Oklahoma, Kansas, Nebraska, and Colorado.
Fire Insurance
Most standard homeowners insurance policies have some level of coverage for fire and smoke damage, and the average cost of a policy that includes fire coverage is $1,899 per year. However, individuals in regions that are at higher risk of wildfires, like California, can pay much more than that — especially since many companies won’t provide sufficient coverage for damage in these areas. The percentage of homeowners who purchased wildfire coverage grew from 15% to 24% in the past 18 months, and homeowners insurance costs increased 10% in California alone.
It’s also important to note that there are a few different types of fire insurance: dwelling coverage, which pays to rebuild or replace the actual structure of the home, other structures coverage, which refers to buildings on the property like a shed or garage, and personal property coverage, which pays for one’s belongings inside the home like clothing and appliances. Those in fire-prone areas might want to consider purchasing an additional dwelling fire policy, which costs an average of $651 per year.
If you’re a homeowner who lives in or is planning to move to a region that’s at high risk for natural disasters and could use some extra cash to fund improvements that can help guard against potential damage to your property, take our five-minute quiz to see if a Hometap Investment might be a good fit for you.
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.
The companies mentioned in this list have been able to raise capital from investors and avoid conducting large layoffs despite the predictions of economists who foretell a tough road ahead for the real-estate industry in 2023. This list is not meant to be all- inclusive, but instead offers a glimpse at some of the bright spots of the real-estate industry, places that might be good bets for those looking to jump to a proptech startup.
Headquarters: Boston
Year founded: 2017
Total funding: $95 million, according to the company
What it does: Hometap buys a portion of homeowner’s equity, which allows homeowners to use their equity to pursue their financial goals without taking on new debt through a home-equity line of credit or refinancing their mortgage with a bank. The homeowner has 10 years to repay Hometap, including when the property is sold.
Why it’s a good bet: Hometap grew its customer base by about three times by partnering with small businesses in the first quarter of 2022, according to the company. It also doubled its employee count and expanded its footprint to 18 states in 2022.
With the average cost of a college education at $10,740 and $38,070 per year for public and private institutions respectively, and rising by the year, it’s no surprise that the typical student loan borrower owes $28,950, and more than half of all students from public institutions (55%) have student loans. Currently, national student debt totals $1.75 trillion, with individuals ages 25–34 saddled with the brunt of it; this group owes a collective $500 billion in debt.
Today, the federal student loan program consists of direct subsidized loans, which provide up to $5,500 to undergraduate students in need. For loans that were disbursed on or after July 1, 2022 and before July 1, 2023, the interest rate is 4.99%. There are also direct unsubsidized loans that don’t require financial need and provide undergraduate, graduate, and professional degree students with up to $20,500 in funding. Like the subsidized loans, the interest rate is 4.99% for undergraduate students, but is higher for graduate and professional degree students at 6.54%. In March 2020, the federal government paused student loan payments. That pause has been extended until at least January 2023.
Student Loan Forgiveness Proposed — And Blocked
On August 24, 2022, President Biden announced a planned student loan forgiveness program that cancels up to $20,000 in debt for Pell Grant recipients, which includes those with direct student loans as well as select Perkins and FFEL loans, and up to $10,000 for non-Pell Grant recipients.
There were some established criteria applicants needed to meet in order to qualify for this program, including an adjusted gross income (AGI) of less than $125,000 for individuals, and $250,000 for married couples and head-of-household. This income cap could be based on either 2020 or 2021 federal tax returns. Those who had private student loans would be ineligible. However, only 8% of student loans are private, allowing the vast majority of loan recipients to potentially take advantage of the forgiveness program as long as they met the income requirements.
In mid-October, the Department of Education published the student loan forgiveness application, which was fairly short and didn’t require any additional documents or a Federal Student Aid (FSA) ID, prompting millions of individuals with loans to apply.
However, on November 10, 2022, a federal judge in Texas struck down Biden’s forgiveness program, stating that it was illegal. This was after another legal challenge had also stopped the program in its tracks. While the Justice Department plans to appeal this ruling and hopes to provide the 16 million previously approved borrowers with expedited relief if and when the ruling is overturned, those who are in need of quicker financial assistance might be seeking ways to begin making progress toward eliminating student debt in the meantime — and even after receiving loan forgiveness if they owe more than the $10–20,000. There are also those who don’t meet the income requirements that are still in search of solutions to eliminate their student debt.
An Alternative Option to Pay Down Student Loans
If you’re a homeowner, a home equity investment (HEI) can be an ideal way to get rid of student debt depending on your personal goals and situation. Not only is it a good way to potentially take advantage of the recent record high amounts of home equity, but because there isn’t any interest or monthly payments, you can potentially pay off your own or your child’s loans more quickly than with other options. If the loan forgiveness program pushes through and you still have an outstanding balance beyond the maximum relief cap, a HEI could help pay it off. And there aren’t any restrictions on how the funds are used, so you can accomplish other financial goals like paying off credit card debt or making home repairs.
Plus, the effective period of a Hometap Investment is 10 years, giving you time to handle bigger financial priorities before beginning to pay off loans, or vice versa.
Take our five-minute quiz to see if a Hometap Investment might be a good way for you to begin eliminating student loan debt.
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.
These are the Top 100 highest-rated Companies for Diversity in 2022, according to anonymous feedback from employees of color on Comparably.com over the past 12 months. This distinction is segmented into two ranked lists: Top 100 Large companies (more than 500 employees) and Top 50 Small/Mid-Size companies (500 employees or fewer).
The 6th Annual list of Best Companies for Women – part of Comparably’s annual Best Places to Work series – represents the top-ranked companies of 2022 according to women. Based solely on millions of anonymous sentiment ratings from female employees who rated their companies over the past year (Nov. 27, 2021 through Nov. 29, 2022), these lists provide an accurate and comprehensive look at where the best workplaces are if you are a woman.
Final rankings were determined by feedback given on nearly 20 workplace culture metrics, from compensation (salary, bonus, raises) and career growth (opportunities, mentorship, goals) to leadership (CEO, executives, direct managers) to work environment (work-life balance, perks & benefits, coworkers). See below the lists for detailed methodology.The list is segmented by the Top 100 Large companies (more than 500 employees) and the Top 100 SMB organizations (500 or less employees).
The real estate market is always fluctuating, but these past three years have broughtnew highs and lows. In 2020, the world was experiencing the pandemic, and many were wary how uncertain everything was. Then, due to low interest rates and high demand, Arizona homes were selling at a feverish rate with many buyers in tense bidding wars. Now, the market is cooling slightly and in fact, there was a 17.6% decrease in home sales this September compared to September 2021, according to the United States Census Bureau.
Home prices are much more complex than what a buyer may see at first glance. Depending on the attributes of your home, you may have a huge profit in store. The neighborhood, age, condition, size and upgrades are all factors that determine the price of your home. If you bought your house prior to the increase in values, it is possible that you have gained a substantial amount of equity. According to Hometap, Arizona homeowners are ranked to have the fifth largest amount of homeowner equity, averaging at $96,000. This can result in a generous profit if you decide to sell.
Deciding whether to sell your home is a big decision to make, but don’t be discouraged by the fluctuating market. There are plenty of advantages to buying and selling during this cool period that you may want to take advantage of.
These are the Top 100 highest-rated CEOs of 2022, according to anonymous employee feedback on Comparably.com over the past 12 months. This distinction is segmented into two ranked lists: Top 100 CEOs from Large companies (more than 500 employees) and Top 100 CEOs from Small/Mid-Size companies (500 employees or fewer).
The shift to remote work in the past few years has led many homeowners to invest in renovations and repairs inside their home, but exterior projects can just as be beneficial — if not more — for a few different reasons. When it comes to making improvements to the outside of your home, certain ones have been shown to earn you a higher return on your investment than others. A recent study broke down the top outdoor remodeling projects based on average cost and value. Here are the exterior renovations that will give you the best ROI.
Garage Door Replacement
While not the most glamorous home improvement project, replacing your garage door — especially if it’s quite old — can go a long way toward boosting resale value. Currently, the national average cost of garage door replacement is $4,041, and it can add approximately $3,769 to the value of your home, giving you a 93.3% ROI.
Manufactured Stone Veneer
This decision mainly comes down to your aesthetic preference, but replacing a portion of your vinyl siding with stone veneer can significantly boost both curb appeal and resale value.
While this project is pricier — the national average cost is $11,066 — you can make back almost as much as you put into it, as it can increase resale value by $10,109 or 91.4%.
Siding Replacement
In terms of siding replacement, your ROI largely depends on the materials you’re using. Fiber-cement siding replacement can run an average of $22,093 and earn you just over 68% back, or $15,090.
For vinyl siding, the national average cost is $18,662 and the typical ROI is $12,541 — a 67.2% return. It’s also important to note that your return for siding replacement will vary based on your geographic region; for example, vinyl siding will give you a slightly higher ROI of 68.9% in East North Central parts of the country (including Cincinnati, Cleveland, Detroit, Indianapolis, and Milwaukee) than other areas.
Window Replacement
Like siding, the amount you’ll earn back on window replacements largely depends on the material you’re using. Replacing vinyl windows averages $20,482 and can earn you up to 67.2% ($13,822) back. Also like siding, vinyl window replacement can give you even more money back in many midwestern cities, up to 68.4% in some areas compared to other parts of the country.
Wood window replacement tends to be a bit more expensive — the national average is $24,388 — and you also don’t make back quite as much as you put in (typical return on investment is $16,160, a 66.3% ROI).
Deck Addition
Adding a wood or composite deck can be a smart move, both for your own enjoyment and future resale value. A wood deck, depending on size, will run approximately $19,248 and earn you an average of 64.8% back ($12,464), while a composite deck is a bit pricier — the national average is $24,677 — and your ROI will be slightly less at 62.1%.
Steel Entry Door Replacement
Finally, investing in a new steel door, which averages $2,206, will earn you back about $1,409 or 63.8%. The exact amount will depend on specific features; the example quoted includes a dual-pane half-glass panel and aluminum threshold with composite stop.
Selling vs. Renovating
With experts predicting continued high mortgage rates, low housing inventory, and longer time on the market in 2023, it’s worth seriously considering whether or not you want to put your home on the market immediately after making renovations — or hold off and enjoy the improvements that will put you in a more favorable position to sell down the road. While your next move all depends on your own financial situation and goals, you have a lot to gain by going forward with the renovations that will bring the greatest returns on your investment.
How to Fund Exterior Renovations
There are a number of different ways to fund exterior home renovations, including renovation loans and traditional options like home equity loans, home equity lines of credit (HELOCs), and cash-out refinances. However, it’s important to keep in mind that these options involve taking on debt in addition to your regular mortgage payments, which can strain an already tight budget.
A home equity investment lets you access cash from your home equity without any interest or monthly payments. There aren’t any restrictions on how you use the money, and you have 10 years to settle the Investment through a refinance, buyout with savings, or sale of your home.
If you could use some additional funding to put toward exterior renovations on your home, take our five-minute quiz to see if a Hometap Investment might be a good fit for you.
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.
These are the Top 100 highest-rated companies for Best Company Culture in 2022, according to anonymous employee feedback on Comparably.com over the past 12 months. This distinction is segmented into two ranked lists: Top 100 Large companies (more than 500 employees) and Top 100 Small/Mid-Size companies (500 employees or fewer).
Hometap named #64 on this list for Top 100 Small/Mid-Size companies.
