Month: February 2023

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Hometap Ranks No. 10 on Inc. Magazine’s List of the Northeast Region’s Fastest-Growing Private Companies

Companies on the 2023 Inc. 5000 Regionals: Northeast list had an average growth rate of 450 percent.

BOSTON, MASSACHUSETTS—February 28, 2023 – Inc. magazine today revealed that Hometap is No. 10 on its third annual Inc. 5000 Regionals: Northeast list, the most prestigious ranking of the fastest-growing Northeast private companies, based in Connecticut, Massachusetts, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont. Born of the annual Inc. 5000 franchise, this regional list represents a unique look at the most successful companies within the Northeast economy’s most dynamic segment–its independent small businesses.

“While we’ve scaled rapidly since 2017, our focus has remained on improving the lives of homeowners, and it’s been extremely rewarding to see our positive impact,” said Jeffrey Glass, CEO of Hometap. “We’re honored to receive this recognition from Inc., as it reflects our team’s unwavering commitment to our mission as we continue to grow.”

The companies on this list show a remarkable rate of growth across all industries in the Northeast region. Between 2019 and 2021, these 169 private companies had an average growth rate of 450 percent and, in 2021 alone, they added 12,066 jobs and nearly $4.4 billion to the Northeast region’s economy. Companies based in the New York and Boston areas had the highest growth rates overall.

Complete results of the Inc. 5000 Regionals: Northeast, including company profiles and an interactive database that can be sorted by industry, metro area, and other criteria, can be found at inc.com/northeast starting February 28, 2023.

“This year’s Inc. 5000 Regional winners represent one of the most exceptional and exciting lists of America’s off-the-charts growth companies. They’re disruptors and job creators, and all delivered an outsize impact on the economy. Remember their names and follow their lead. These are the companies you’ll be hearing about for years to come,” said Scott Omelianuk, editor-in-chief of Inc. magazine.

Hometap maintained triple-digit revenue, contribution margin, and investment deployment growth for a fourth consecutive year in 2022. In 2022, Hometap continued its rapid growth and expansion, deploying hundreds of millions of dollars in capital to help homeowners, doubling its employee headcount, and launching in three new states, bringing its total state count to 18.

Contact:
Matthew Conroy
Stanton
(203) 610-1421
mconroy@stantonprm.com

More about Inc. and the Inc. 5000 Regionals

Methodology
The 2023 Inc. 5000 Regionals are ranked according to percentage revenue growth when comparing 2019 and 2021. To qualify, companies must have been founded and generating revenue by March 31, 2019. They had to be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2021. (Since then, a number of companies on the list have gone public or been acquired.) The minimum revenue required for 2019 is $100,000; the minimum for 2021 is $1 million. As always, Inc. reserves the right to decline applicants for subjective reasons.

About Inc. Media
The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers and the credibility that helps them drive sales and recruit talent.

The associated Inc. 5000 Conference is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

About Hometap
Hometap is on a mission to make homeownership less stressful and more accessible. Our home equity investment product provides homeowners with a fast, simple, and straightforward way to access the equity in their home without taking out a loan or having to sell. By investing alongside homeowners, Hometap offers debt-free cash in exchange for a share of their home’s future value — all without any monthly payments or interest over the life of the investment. Through a combination of financial innovation and best-in-class customer service, Hometap enables people to get more from homeownership so they can get more from life. Learn more at hometap.com.

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How to Choose a Home Security System for Your House

Woman tapping home security alarm panel

A break-in occurs every 26 seconds in the United States — and homes without security systems are 300% more likely to be targeted than those with them. Everyone deserves to feel safe and protected in their home, and a security system can help give you that peace of mind. However, there are so many different options that it can be overwhelming to decide on the best one for you and your family. Here are some factors to consider in order to make a smart and informed choice.

Why Get a Home Security System?

Perhaps the biggest benefit of a home security system is that its mere presence has been proven to actually prevent burglaries: studies show that 83% of potential burglars check for an alarm system before attempting a break-in. Beyond the clear and tangible safety benefits of both deterrence and faster emergency response, a security system can offer some level of psychological comfort for your family as well. Not to mention, there are even some unintentional benefits that can come along with a security system beyond guarding against break-ins, like carbon monoxide detection, temperature detection, and leak sensors.

Features and Fees

There are several characteristics you’ll want to look at when choosing a security system, but cost is probably toward the top of your list. The average price of a home security system is $700, though they range from $280 to $1,150.

It’s important to note that this is just for the system, and doesn’t include ongoing monitoring fees. While you can usually customize the level of monitoring you receive, these services require a landline, broadband, or cellular connection and have monthly or annual charges attached.

You’ll also have the choice between a wired or wireless system, with the major difference being that the former links the system’s sensors to a control panel through wires in your walls and floors, while the latter connects the sensors and control panels with radio frequency technology. While these days, a completely wired system is uncommon, some do still have plug-in control panels. Many modern systems are also smart-device compatible and have various levels of interactivity that you can adjust to meet your specific needs.

Another consideration is installation — while you can do it yourself in some cases, it may be worth arranging for a professional to handle it. And since each security company knows the ins and outs of their equipment, paying a little extra for one of their professionals to install the system can prevent any issues that could arise from DIY efforts.

Though the features and equipment that are included vary by specific system, here are some of the standard characteristics of a complete package:

  • Control panels
  • Door/window sensors
  • Floodlights
  • Doorbell cameras

Finally, most security system companies require that customers sign a contract for a specific term length — these range from 12 to 60 months, but the average is 36.

Frequently Asked Questions About Home Security Systems

Is it worth it to have a security system?

While the decision to have a security system in your home completely depends on your own priorities, concerns, and budget, it can often be worth it for the protection and peace of mind it brings.

How important is a home security system?

A home security system can be important for many different reasons. In addition to helping you feel more protected, they have the potential to actually deter burglars (more on that below), and can accelerate emergency response in case of a break-in.

Is it better to have a home security system or cameras?

Both cameras and a full system can be beneficial. For those that aren’t interested in a full-scale system — or at least not at first — installing a camera or two is often a good way to see what works for you and your family before making a more involved and expensive commitment.

Do burglars avoid homes with security systems?

They often do. Research shows that 83% of potential burglars check for the presence of an alarm system before attempting a break-in. So a security system can not only assist you during an in-progress burglary, but it might even help thwart one.

What questions should I ask before buying a home security system?

Above all, you want the security system you choose to provide you and your family with a level of safety that makes sense for you. In addition to finding out about the features and costs attached to the system(s) you’re considering, here are some smart questions to ask:

Can I use my smartphone and/or devices to control the system?

As we mentioned above, one big decision to make is whether or not you want to have interactivity with your phone or tablet, or just keep control of the system to the central control panel. If you have a smart device already, you’ll want to check if your home security system is compatible with the device.

Does your security system qualify me for a homeowners insurance discount?

Often, insurance companies will give homeowners a discount on their premium if they have a security system installed, which can put some money back into your pocket. Check with your homeowners insurance provider to see if they offer a discount.

What happens to the system if I move?

While many security system providers will allow you to move your entire security system to your new home — and even uninstall and reinstall it for you! — it’s worth checking into any moving fees, contract stipulations, or notice requirements just in case.

Which is better, a wireless or wired alarm system for my house?

Neither system is “better,” per se — again, it all goes back to what you prioritize and value for your home. Though wired systems generally have signals that are more reliable, wireless systems can often be installed in more areas than wired ones. And in fact, the majority of modern systems are fully wireless except for the control panel. However, some companies still offer limited options for completely wired systems.

How much should I spend on a security system?

The amount you spend on a security system all depends on your own budget and security goals, but most home security systems range from $280 to $1,150, with the average at $700.

Choosing the Right System

There are a few tips that can work for all homeowners when it comes to deciding on the right system.

Prioritize the features you need

One size doesn’t fit all in terms of security systems, and you might be able to “mix and match” depending on what’s most important to you. For example, in addition to standard security or doorbell cameras, there are a variety of sensors that detect everything from motion or floods/leaks to broken glass. Some providers like SimpliSafe offer starter kits and more elaborate kits to match your needs.

Set a budget and compare security systems

Sitting down and running the numbers as you weigh your options not only makes it easier to determine a ballpark cost for a security system, but will also highlight the most affordable options by quickly eliminating the ones that are out of your price range.

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.

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A Guide to Home Equity Investments: The Untapped Real Estate Asset Class

a guide to home equity investments

How HEIs present an innovative route to the residential real estate market

For investors, HEIs have created a groundbreaking way to participate in an emerging asset class that promises portfolio diversification, downside protection, and enhanced, risk-adjusted returns. For house-rich, cash-poor homeowners, traditional home financing and equity options are less than ideal, requiring them to take on debt. Home equity investments allow them to receive the cash they need to pay for life expenses, typically debt-free. It’s a win win.

In A Guide to Home Equity Investments, you’ll learn how HEIs:

  • Can provide investors with direct exposure to a multi-trillion-dollar pool of equity in a scalable manner
  • Help investors take advantage of near-term uncertainty in the housing market to create a positive, long-term investment opportunity
  • Support mission-driven businesses that help homeowners enhance their financial health and standing
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Investors Betting on Home Equity Investment Companies like Hometap

Home equity investments, or HEIs, present homeowners with a way to access their equity without losing their current interest rate or amassing substantial debt  — a serious consideration today with the cost of living elevated by inflation.

Abate said Redwood anticipates that HEIs will be a “big focus area” for their company, which has invested $316 million in the sector so far.

Redwood isn’t the only company interested in building a portfolio of HEIs. Other institutional investors like Bain Capital, Citigroup, and Prudential Financial are betting on the shared equity products originated by financial tech companies like EquiFi, Unison, Hometap, and Point.

This article originally appeared on Business Insider. Read the full article here.

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What Is a Home Warranty and Do You Need One?

bright kitchen with stainless steel appliances

Homeowners have many decisions to make — especially when it comes to protecting and preserving their home — and one of them is whether or not to purchase a home warranty. And if it’s your first home, you may be wondering, “What is a home warranty?” and even if it’s different than homeowners insurance or other coverage. You’re not alone, so we’re here to walk you through it. A home warranty is a contract that covers the maintenance costs of certain household systems and/or appliances for an established time period. Terms can vary by company, but most plans offer coverage on an annual basis.

A home warranty differs quite a bit from homeowners insurance, though the two are often conflated and are similar in the sense that they’re designed to help homeowners save money and help protect their property. Homeowners insurance, which is usually mandatory, generally safeguards against external events that can cause damage to your home — including weather-related issues, fire, or even burglary — while home warranties cover the repair or replacement of household items that may fail due to ongoing regular use. However, there are some details you should be aware of when considering home warranty companies, as one size doesn’t fit all and there is a range of coverage options and providers.

What’s Covered in a Home Warranty

There are different types of home warranty plans, including complete, appliance-only, and systems-only, so it can help to do a little research to find the right one for you. Ultimately, the major difference between the three is the type and amount of coverage you receive.

Complete (or combination) home warranties: These plans provide the most comprehensive coverage, as they cover both appliances and systems. For older homes that haven’t been recently renovated, a combination plan can provide an added layer of protection from the issues that tend to plague aging houses. While the specifics depend on the provider, the following appliances and systems are generally included in a combination plan:

Appliances:

Refrigerator
Oven, range, and cooktop
Dishwasher
Air conditioning unit
Garbage disposal
Garage door opener

Systems:

Heating/Air conditioning (central air)
Electrical
Water heater
Interior plumbing
Ductwork

Depending on the company, you may also be able to secure home warranty coverage for optional add-ons. These can include:

  • Swimming pool/hot tub
  • Septic tank and pump
  • Well pump
  • Extended electronic warranties
  • Guest dwellings
  • Roof leaks
  • Pest control

Appliance-only home warranties: As the name suggests, this type of plan offers coverage for major household appliances, including refrigerators, dishwashers, washers and dryers, ovens, ranges, built-in microwaves, and garage door openers. However, this doesn’t include any of your home’s electrical, heating, or plumbing systems.

Systems-only home warranties: Conversely, these plans address your heating, electrical, interior plumbing, and ductwork systems, but don’t include any assistance for typical appliance wear and tear. If you have an older home that’s been recently updated with modern appliances but retains some older heating or electrical systems, this type of plan might be worth considering.

The Cost of a Home Warranty

The price of a home warranty varies quite significantly depending on several factors, including type, term length, your house’s size and age, and your state or geographic area. States with the highest average home warranty premiums include New York, Alaska, Connecticut , and New Hampshire, while states with the lowest average premiums include Washington, California, and Florida.

Map of the average cost of home warranties by state

There are also various smaller costs that comprise the total cost of a home warranty plan. The typical cost breakdown includes the following:

Premium: The monthly amount you pay for your plan (the bulk of the cost).
Range: $264–$1,425, with the national average around $600

Service fee: A charge you pay each time you require a repair or replacement — or even just call a technician to your home to assess the issue.
Range: $60–$100

Coverage cap: The maximum amount of coverage your warranty company will pay for repairs and replacements.
Range: Varies widely by company, but typically $500–$1,500 per appliance or system, plus a total cap for all events within the warranty period

Cancellation fee: The charge you pay when you cancel your warranty contract before the end of the specified term. In general, you have an initial grace period of around 30 days with most home warranty companies, during which you can cancel with no penalties.
Range: Varies by company, but typically $50-$75

Many home warranty providers will also offer different tiers of their complete plans that range in coverage and provide homeowners with a few different options, so they can find one that matches their budget.

Chart showing average cost of home warranty premiums by plan type

Should I Pay for a Home Warranty?

There are several different factors you’ll want to consider when deciding whether or not it’s worth it to purchase a home warranty. For example, the age of your home and its appliances and heating/cooling systems are perhaps the most important thing to think about; the older the home, the more likely it is to need fixes.

In addition, it may be a good idea to create rough estimates of the cost of repairs/replacements for your appliances, as they can add up on top of the cost of your warranty. Or it may just make more sense to buy a warranty when you do the math and determine that the likely fixes will cost you more money out of pocket than the price of the premium and service call.

Below are the average cost ranges and repair costs for the most common appliances:

Cooktop/Range

Cost range: $100-$430
Average repair cost: $250

Dishwasher

Cost range: $100–$300
Average repair cost: $220

Garbage Disposal

Cost range: $70–$400
Average repair cost: $250

Microwave

Cost range: $50–$400
Average repair cost: $200

Oven

Cost range: $100–$400
Average repair cost: $300

Refrigerator

Cost range: $200–$500
Average repair cost: $400

Washer/Dryer

Cost range: $100–$650
Average repair cost: $300

Frequently Asked Questions About Home Warranties

What are the cons of a home warranty?

While complete warranty plans are typically quite comprehensive, you’ll want to make sure you understand the potential costs of any repairs or replacements that might not be included in your particular plan, as they can be expensive. Note that there can be stipulations regarding specific appliances that merit coverage as well — for example, only built-in microwaves are included in most warranties, and not free-standing ones. And if an appliance or system breaks because of neglect, your warranty may not cover the repair, so it pays off to stay on top of maintenance tasks.

What is a home warranty vs. homeowners insurance?

A home warranty can help handle the regular wear and tear of appliances and/or heating or cooling systems, while homeowners insurance addresses more external issues like weather or natural disasters. If you’re able to afford it, having both can ensure that you have maximum protection for the majority of the “what ifs” you want to prepare for as a homeowner.

Are home warranties expensive?

The cost of a home warranty depends on the company you choose and the level of coverage you select. There are two components: the monthly premium, which is the cost to buy the warranty, and the service call fee, which the homeowner is required to pay each time they need a repair or replacement. You should also keep in mind that each company has different coverage caps — so if the cost of necessary repairs exceeds the designated amount, you’ll need to pay for the rest out of pocket.

Is a home warranty worth it for an older home?

While the decision to buy a warranty is completely up to you, purchasing coverage for an older home can be a great idea, especially since aging appliances and systems can mean that they’re more prone to issues that require repairs.

How do I know if I have a home warranty?

If you haven’t purchased one yourself, there are a couple of different ways to find out if there is an existing home warranty for your property. The first is to find out from a previous owner whether they had one and request a copy from them. Or, if you’ve already closed on the home, you can contact the title company or the realtor who closed the home sale to check on the status of the warranty.

Though there are multiple factors to consider when deciding whether or not to obtain a home warranty, they can provide added peace of mind for homeowners who want to make sure they’re covered if and when they experience some of the unexpected issues that come along with day to day wear and tear.

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.

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Alternative Ways to Finance a Home Renovation

When you buy a home, there are usually a few repairs to pay for. Buyers who want to take on a real fixer-upper might be facing the prospect of many projects.

If this is the case for you, you may be considering an FHA 203(k) loan, also known as a mortgage rehab loan or Section 203(k) loan, which combines the financing for both the home’s purchase and remodeling or repairs into a single loan.

FHA 203(k) loans are one of several options to pay for home improvements. Among the others:

Selling a stake in your home: A new breed of financial technology firms is pitching American homeowners on a different way of tapping into home equity. If you’re sitting on a pile of it, these companies — including Haus, Hometap, Point and Unison — will buy a piece of your house. You repay the “co-investment” when you sell. One downside: This money comes at a higher cost than a mortgage or HELOC.

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