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6 Reasons You Should Cancel Amazon Prime Now

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Cancel Amazon Prime

In most cases, people initially sign up for Amazon Prime because they believe it provides enough value to make the cost worthwhile. Free shipping, access to services like Prime Video, and events like Prime Day are all very enticing on the surface, making the membership fee seem like a bargain. While it’s true that some people are excellent at leveraging their Prime membership, that doesn’t mean everyone’s getting enough value. If you’re trying to decide if Prime is right for you, here’s a look at six reasons you should cancel Amazon Prime now.

6 Reasons You Should Cancel Amazon Prime Now

1. Not Shopping at Amazon Often

In most cases, people sign up for Amazon Prime to take advantage of free shipping. The issue is that it only works in your favor if it genuinely saves you money. If you don’t use Amazon regularly, the odds are decent that the membership costs exceed any shipping savings you’re receiving. That’s particularly true since you can qualify for free shipping on Amazon without being a Prime member.

Look at your order history to see how many purchases you made that were below the threshold for free shipping without Prime. If the total doesn’t justify the cost of the membership, then canceling is potentially a wise move.

2. Not Using Other Amazon Prime Benefits

As mentioned above, the main reason many people sign up for Prime is for free shipping, a feature that doesn’t necessarily provide value if your purchases would qualify for free shipping without the membership. However, this is potentially offset if you’re accessing other Amazon Prime benefits regularly. For example, if you’re a regular user of Prime Video, Prime Music, or the Kindle Lending Library, then you might be getting a decent amount of value.

However, if you never or rarely access the other perks you get with Prime, there’s a decent chance you’re paying for a service you don’t need. Take a close look at the value you’re getting, and if it falls short, it might be time to cancel.

3. Amazon Doesn’t Always Offer the Best Deals

Even if you shop at Amazon regularly, that doesn’t mean Prime is worth it. Many retailers work diligently to keep pace or beat Amazon in various areas. For example, Aldi could be more affordable than Amazon Fresh, and Costco might offer better deals on many electronics.

Plus, there are retailers that price-match Amazon. As long as the brand, model, size, color, and similar details match, that essentially lets you get the Amazon price without having to sign up for Prime or even have an account on Amazon.

4. Free Shipping Is More Common

While Amazon was one of the first companies to launch broad-scale free shipping, it’s far from the only company that offers it today. Plus, many other retailers provide it without any kind of membership requirement. Instead, they may require a specific minimum purchase, and that isn’t usually hard to hit.

Additionally, with a variety of stores offering free ship-to-store regardless of the amount you spend, you can get a very similar deal even with small purchases. The only difference is that you have to head to your selected store location to pick the product up. If it’s a store you use regularly, or the store is on a route you travel frequently, that likely isn’t a huge inconvenience.

5. Prime Day Isn’t Always What It Seems

Prime Day – where Amazon hosts a massive sale – looks like it’s brimming with bargains on the surface. However, that isn’t always what you’ll find. Many of the discounts are on third-party items that aren’t selling particularly well, effectively making Prime Day a mass liquidation from brands that aren’t household names.

While that doesn’t mean the occasional bargain doesn’t come around, the likelihood that it beats what you’ll find during larger sale events – such as Black Friday or Cyber Money at other stores – is often pretty slim. As a result, if you’re only holding onto your membership because of Prime Day, consider letting it go.

6. Prime May Lead to Impulse Shopping

Amazon is home to nearly any type of product imaginable, which is beneficial in some cases. However, since it’s constantly bombarding you with strategically placed product images and sponsored listings, it may lead to some impulse shopping that wasn’t part of your original plan. If you struggle to bypass the highlighted products even if they aren’t what you came on the app to buy, then relying on Amazon could be hurting you financially. If canceling your Prime membership prevents you from turning to the app so often, it could be just what you need to avoid impulse purchases.

Can you think of any other reasons why a person should cancel Amazon Prime? Did you cancel your Amazon Prime Membership and want to tell others why you made that decision? Are you a fan of Amazon Prime and think that canceling isn’t a wise move? Share your thoughts in the comments below.

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Is 50 Too Old To Change Jobs?

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Should I Change Jobs At Age 50

 

While the general hope is to find a career that you can stick with until retirement, that isn’t always how things play out. Typically, people associate job changes with younger professionals, mainly assuming that their motivation is based on them not knowing exactly what they want. In turn, there’s some trial-and-error before they settle down. However, that doesn’t mean workers of all ages might feel the urge to do something new. If you’re wondering, “Should I change jobs at age 50?” here’s what you need to know.

Is 50 Too Old to Change Jobs?

No, 50 isn’t too old to change jobs or take your career in an entirely new direction. There are plenty of legitimate reasons that could make switching positions or fields the right move.

For example, burnout can happen at any age. Similarly, you can discover a new passion at any time in life. Additionally, shifts in an industry could make a once-viable professional less stable moving forward, making a career change a wise move to ensure your financial future.

You may also want to head in a new direction to secure better work-life balance, as that’s harder to achieve in some sectors than others. Changing careers due to a shift in your health can also be a completely justifiable reason for switching things up at age 50.

Ultimately, you’re never too old to change jobs or careers. What matters is that you make a change for a reason that ensures you’ll remain motivated and engaged after the switch.

Should I Change Jobs at Age 50?

Even knowing that 50 isn’t too old to change jobs, that doesn’t mean you’ll automatically know if it’s a move you should make. Ultimately, whether it’s the right choice for you is a personal decision. It’s wise to consider what you have to gain from heading in a new direction, as well as review the potential risks. That way, you have a solid idea of what the road ahead may look like if you move forward.

Understanding your motivation is also essential. The “why” behind your desire for a new position can let you know where you might need to go in the future. Ask yourself whether your current issue is with your employer, the role you’re holding, your field as a whole, or something else.

If your employer is the problem, remaining on your career path but looking for opportunities at other companies may be a sound solution. If you’re no longer passionate about your entire field, then a career change is potentially the better choice.

The idea is to determine why you want to make a change and then identify the type of change you need to restore your motivation. That way, you can find the best possible path forward as soon as possible.

Tips for Changing Jobs at 50

Update Your Resume and LinkedIn Profile

Before any job search, it’s wise to update your resume and LinkedIn profile. However, the approach you need to use varies depending on whether you’re looking for a new role in your field or are planning on changing careers.

With the former, make sure your work history shows recent accomplishments that highlight your skills. It’s also wise to update your professional summary to represent where you stand today as a professional.

With the latter, you may need to reposition more of the content. Make sure you’re highlighting transferable skills that are relevant to your new target industry. Additionally, consider whether different achievements align better with the type of position you’re hoping to land next and adjust the content accordingly.

Enhance Your Skills

Whether you’re looking for a new position along your current career path or are changing careers entirely, enhancing your skills works in your favor. For a different job in your current field, consider what skill gaps exist currently within the industry and see if you can acquire those capabilities. By doing so, you position yourself as an incredible asset, allowing you to find a new role with greater ease.

For a career change, you need to determine if you don’t have capabilities or experience that are viewed as must-haves for the job you want to land. If so, work to cover those areas. You can take classes, volunteer to gain experience, learn on your own, or try side projects to boost your resume. That makes it easier to transition, as you have the capabilities hiring managers may focus on when making hiring decisions.

Be Reasonable About Pay

While you likely won’t have any issues receiving a comparable salary if you’re remaining in your field, you need to look at things differently if you’re changing careers. Often, a career change means taking a step down on the career ladder, as you’re less proven in that field or industry.

As a result, it’s wise to examine salary averages for individuals working in positions similar to those you’re currently qualified for in your new field and accept that your income may dip initially. However, as you prove your value, you can typically move up, so keep that in mind.

Explore Your Options with Temp Jobs

Temporary jobs can help you explore new fields, industries, and employers with greater ease. The roles are inherently short-term, so you don’t have to worry about committing to something that may not work for you. Plus, it lets you earn an income while you check out options, and you’ll get chances to build your network along the way.

Essentially, you can use temp jobs to support some trial-and-error. Additionally, the barrier to entry is often lower, as companies are more willing to take a chance on a candidate who’s changing careers with short-term opportunities. Finally, if a job is an excellent fit and you impress, there’s always a chance it will turn into a permanent position.

Did you battle with the question, “Should I change jobs at age 50?” and want to tell others about your experience? Do you think 50 is a good time to make a career change, or does it make more sense to stay the course? Share your thoughts in the comments below.

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8 Of The Best Independent Contractor Jobs for 2023

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Best Independent Contractor Jobs

 

Whether you’re interested in breaking away from a traditional day job or are looking for a side gig to boost your income, independent contractor jobs are potentially the answer. There are a surprising number of options available, too, allowing you to find something that’s both lucrative and that suits your skills. If you aren’t sure which independent contractor jobs are worthwhile in 2023, here are eight to consider.

1. Virtual Assistant

A virtual assistant performs the same function as an office assistant, ensuring that a company owner or manager has enough administrative support. Often, primary duties include managing correspondence, overseeing calendars, conducting research, writing reports, and similar tasks.

The main difference between traditional admin assistants and virtual assistants is that the latter work entirely remotely. If you’re interested in virtual assistant jobs, you’ll typically find part-time and full-time positions are available. Additionally, many don’t require working a set schedule, though some may prefer you have availability within a specific window.

Often, all you need to get started is a computer with an internet connection. Having a productivity suit is also essential, as well as the ability to download video conferencing or other communication software.

2. Graphic Designer

Graphic design is a field that lends itself well to independent contractor work. Many professionals choose to freelance, essentially working on a series of projects for a variety of companies. Duties can vary, though many involve activities like creating logos, designing social media ads, and other graphics.

In many cases, graphic designers working as independent contractors are paid on a per-project basis. Additionally, they typically set their own rates and can handle their work at any time as long as they’re able to meet the due dates set by the company.

What you need to get started can vary. Along with the necessary technical expertise, you’ll need a computer with an internet connection and your preferred design software as a starting point. Beyond that, it may depend on the client’s needs.

3. Social Media Manager

Another option for independent contractors is social media manager. These professionals assist companies with their social media accounts, handling tasks like designing posts, updating profiles, responding to comments, answering direct messages, and more. Additionally, they may tackle some research to help boost engagement, such as looking into popular hashtags to find ones that are appropriate for each new post.

Generally, social media managers can handle most of their responsibilities at any time, though comment and direct message responses often need to take place at some point during more traditional business hours. Since there is software that lets you schedule posts in advance, you can create posts at any time and set them up to go live at the desired moment.

If you have social media savvy and access to an internet-connected computer and smartphone, that’s potentially all you need to get started. However, having a marketing background is helpful, so keep that in mind.

4. Accountant

For those with a penchant for numbers and who have (or are willing to get) the necessary education and credentials, working in accounting as an independent contractor is a solid option. You could assist with financial decisions, payroll, tax preparation, accounts payable, accounts receivable, and more. Plus, you may have the ability to work part-time, full-time, or seasonally, depending on your niche.

If you’d like to limit the amount of education required, you could consider freelancing as a bookkeeper instead. While financial know-how is still required, you might not need the same level of degree or other credentials to get started.

5. Translator

If you’re bilingual, becoming a certified translator could be a solid choice. This is another option that lets you work on a project basis, so you can arrange a part-time or full-time schedule based on what you prefer. Pricing is also usually by the project, so you can set a rate that accounts for the amount of time and effort required.

As with many independent contractor jobs, you can typically work remotely. All you need is a computer and document creation software to get started in many cases.

6. Freelance Writer

Freelance writers assist with a wide variety of projects. Some focus primarily on creating blog posts for companies, while others concentrate on website copy. There are many freelance writers who specialize in e-books, as well as those that focus on white papers, grant writing, technical documentation, and other niches.

Generally, getting started as a freelance writer requires little more than a computer with document creation software. Additionally, it’s helpful to have a portfolio of writing samples, ensuring potential clients can see what you have to offer.

When it comes to pay, freelance writers usually charge on a per-project or per-word basis. However, some prefer using an hourly rate, so that’s potentially an option, as well.

7. Housekeeper

If you prefer a more active job, working as a housekeeper is a solid choice for anyone who likes working as an independent contractor. You can focus on homes or businesses, making sure they’re cleaned on a regular schedule based on the client’s preferences.

Often, the startup costs are relatively low. Some housekeepers use cleaning supplies that they provide, while others use what’s offered by the client. You will need reliable transportation, so keep that in mind. However, you can potentially work full- or part-time, which is a bonus if you’re looking for flexibility.

8. Home Daycare Provider

If your area doesn’t have enough daycare centers to support demand in the area, starting a home daycare is a potentially good option. You’ll care for other people’s children in your home, typically beginning a little before traditional business hours and until a bit after the end of a regular workday. Pay rates are potentially quite high, and you can use local daycare rates as a guide.

If you go this route, you typically need appropriate licensing. Additionally, having certain credentials and certifications – including first aid and CPR – is often a must. Make sure to research local regulations before you begin, ensuring you’re able to meet the requirements before you get started.

Do you know of any other independent contractor jobs that people shouldn’t overlook? Have you tried any of the independent contractor jobs above and want to tell others what it was like? Share your thoughts in the comments below.

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6 Financial Tips to Keep in Mind If You’re Arrested

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Being arrested can come with significant financial costs and consequences, which is why it’s important to keep some financial tips in mind. Here are some things to consider if you’re arrested.

1. Understand the Charges

It’s crucial to understand the specific charges against you so you can make informed decisions about your case. For example, if you’re charged with constructive possession of drugs, you should be aware that in order to be convicted, the prosecution must prove that you knew the drugs were present and intended to use them. Knowing the charges against you can help you understand the potential consequences and financial costs of your case.

2. Research Your Legal Options

Once you know the charges, it’s a good idea to research your legal options. This can help you understand the pros and cons of different approaches and make a decision that is right for you. For instance, if you’re charged with possession of marijuana in Pennsylvania, you should know that the state imposes jail time of up to 30 days and a fine of up to $500 for possession of up to 30 grams of marijuana. This can help you understand the potential consequences and make an informed decision about how to proceed.

3. Hire an Attorney

Depending on the severity of the charges against you, hire an attorney. An experienced attorney can help you navigate the legal system and defend your rights. Keep in mind that attorneys can be expensive, especially if you’re hiring a private attorney. In Seattle, for example, most associate attorneys of quality charge between $250 and $375 per hour depending on practice area and experience. It’s important to weigh the potential costs of hiring an attorney against the potential benefits. In some cases, it may be worth the investment to have an experienced legal professional on your side.

4. Be Prepared for Bail and Other Costs

If you’re arrested, you may need to post bail to be released from jail. Bail is a financial guarantee that you’ll return to court for your scheduled appearances. The amount of bail will depend on the charges against you and your criminal history. It’s important to be prepared for the possibility of having to pay bail and to have a plan in place for how you’ll come up with the necessary funds. In addition to bail, there may be other costs associated with your case, such as court fees and fines. It’s important to be aware of these potential costs and to budget accordingly.

5. Track Your Expenses

If you’re arrested, it’s important to keep track of all your expenses related to your case. This can include things like bail, attorney’s fees, court costs, and any other expenses you incur as a result of your arrest. Keeping track of these expenses can help you understand the full financial impact of your case and can be helpful if you need to seek financial assistance or reimbursement for your costs. It’s a good idea to keep receipts and other documentation of your expenses in case you need to provide proof of your costs at a later date.

6. Seek Financial Assistance

If you’re facing significant financial costs as a result of your arrest, you may want to consider seeking financial assistance. There are several options available, including:

  • Legal aid: Legal aid organizations provide free or low-cost legal assistance to low-income individuals. If you can’t afford an attorney, you may be able to get help from a legal aid organization.
  • Bail funds: Bail funds are organizations that provide financial assistance to help people pay bail. If you can’t afford to pay bail, you may be able to get help from a bail fund.
  • Community organizations: There are often community organizations that provide assistance to people who are facing financial challenges as a result of an arrest. You may be able to get help with things like bail, attorney’s fees, and other expenses.
  • Crowdfunding: Crowdfunding sites like GoFundMe and Patreon allow you to raise money from friends, family, and others to help cover the costs of your case. This can be a good option if you don’t have access to other sources of financial assistance.

If you’re arrested, it’s important to keep these financial tips in mind. Understanding the charges against you, researching your legal options, considering hiring an attorney, and being prepared for bail and other costs can all help you navigate the potentially costly process of dealing with the legal system. By being aware of the financial implications of your case and seeking financial assistance if needed, you can protect your finances and minimize the long-term financial consequences of an arrest.

Is It Possible to Avoid Closing Costs When Selling a House?

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When selling a house, the goal is to minimize closing costs to maximize revenue. Taking these closing costs into account will help you to sell your home for the most amount of money possible.

It isn’t possible to completely avoid closing costs when selling a house. However, it is possible to minimize costs associated with transfer taxes, HOA transfer fees, capital gains tax, property tax, agent commissions, and pre-listing commissions.

 

Several hidden costs can add up and make selling your home much more complicated than it needs to be. Here are several creative ways to mitigate their damage.

 

Agent Commission

Most sellers opt to hire a real estate agent to help sell their homes. When you hire an agent to sell your home, they will take a commission based on the total sale price of the house. It usually ranges from 3% to 6%, depending on the current state of the market. To reduce this cost, you should shop around for a real estate agent with a lower commission or consider selling the home yourself.

 

A few percentage points may not sound like much, but realtor commissions make up the majority of seller closing costs. For example, 5% of a $500,000 home sale is $25,000 in commissions paid by the seller. Certain scenarios don’t necessarily require you to work with a real estate agent. If you’re trying to sell a house to your friend, you don’t need a realtor to help you find other buyers. Of course, make sure that you are confident in your friend’s interest in buying your property. Ideally, you should get a written offer from them and hire a real estate attorney to review the document. Selling your property to a friend can help you avoid expensive realtor fees and save money on closing costs.

 

Pre-listing Inspection

Most real estate agents will recommend that you have your house inspected before putting it on the market. This helps identify any problems and address them beforehand. pre-listing inspections are a great idea because they will ensure that you don’t get surprised by any last-minute costs. Inspections can be performed by a third-party company specializing in home inspections. It will cost anywhere from a few hundred to a few thousand dollars, depending on how thorough the inspection is. It is better just to pay this cost upfront so that you don’t get saddled with last-minute expenses that will strain your resources in the long run.

 

Transfer Taxes

Transfer taxes are based on the value of your home and are paid when it changes ownership. Transfer taxes can range anywhere from 1% of your home’s sale price up to 10%, depending on where you live.

Transfer tax is tough to avoid unless the buyer offers to cover it. When selling a house to an investor, they will sometime offer to cover this closing cost to sweeten their offer. Calculate your total costs to sell your house before officially getting to the closing table to know where your bottom line stands.

 

Prorated Property Taxes

Prorated property taxes are calculated based on how much time remains before the end of the year in which the property changes hands. Just ask the buyer to pay for their proportionate share of the taxes based on when they took possession of the property. You’ll have to send them a copy of your tax bill and get an agreement signed by both parties before closing.

 

Capital Gains Tax

If you’ve owned your house for less than two years or if you have other rental properties, then this will apply. It works out to 15%-20% of any profits from the sale of your house, depending on if you have owned it for less than 1 year or more than 1 year. To reduce this tax, try and hang onto your home for at least a year to reduce the percentage of income that you will pay. However, make sure that you take into consideration the expenses that come with owning a home during that holding period. You will still come out of pocket in some capacity when keeping your house instead of selling it. Determine if your holding costs outweigh the closing costs you’d pay when selling your home.

Is It Too Late To Start Christmas Shopping?

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christmas shopping

Many people start their Christmas shopping at some point in November, allowing them to take advantage of sales that are ramping up and events like Black Friday. However, if you aren’t able to dedicate cash to Christmas shopping before Black Friday passes, you may start wondering, “Is it too late to start Christmas shopping?” If you’re trying to answer that question, here’s what you need to know.

Is It Too Late?

Technically, it’s never too late to start Christmas shopping. While events like Black Friday and Cyber Monday are usually when people think they’ll find the best bargains, holiday sales continue all through December. As a result, you can still get amazing prices on fantastic gifts all the way through Christmas Eve, so you have plenty of time to score some deals.

In fact, some sale prices may even beat Black Friday and Cyber Monday discounts. Retailers know that many people tackle a lot of Christmas shopping during those events, so they might not worry about getting customers’ attention. However, competition for any remaining shopping dollars gets fiercer as the holiday gets closer, so you may find even better prices on items like toys, electronics, and more.

 What’s Late For Your Christmas Shopping?

Generally, you can Christmas shop as late as Christmas Eve at many stores if you’re shopping in person. While the product selection could be limited in some cases, last-minute shopping isn’t unusual, so you’ll likely find some excellent gifts up until the stores close.

The situation is a bit different if you are planning to shop online. With this, the selection isn’t the primary concern. Instead, it’s the time required for shipping.

Every major shipper – including USPS, FedEx, and UPS – as well as direct shipping services through Amazon, won’t guarantee Christmas delivery after a particular date. For example, the cutoff date for Priority Mail at USPS is December 19, 2022. For FedEx Ground, it’s December 14, 2022.

Amazon cutoffs for guaranteed Christmas delivery can vary depending on your location. For items with same-day service, you could potentially shop on December 24, 2022, and get your purchase on time. If one-day shipping is available, then December 23, 2022, is usually the last day, while two-day shipping means wrapping up by December 22, 2022. Thankfully, Amazon shows delivery date estimates before you check out, allowing you to adjust what you buy if an item would miss the deadline.

Sooner Rather Than Later

Depending on the shipping service involved, you may need to wrap up your Christmas shopping sooner rather than later. Check out the websites for the retailers you’re considering using as a starting point. In some cases, the retailer will list purchase deadlines for online orders, allowing them to factor in processing time to ensure delivery before the holiday. If not, see what shipper they use and review the order processing times to see when you need to make a purchase to ensure it gets to you before Christmas.

When do you usually start your Christmas shopping? Do you wish you could start earlier, or do you think your timing works? Do you have any tips for those who are just starting their Christmas shopping now? Share your thoughts in the comments below.

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Here Are The Requirements For A Hard Money Loan

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requirements for a hard money loan

Hard money loans are one of the more popular options for buying fixer-upper homes to renovate and resell for a profit. While there are alternatives available – such as using a traditional or renovation mortgage – hard money loans usually fund far faster and are less restrictive. If you’re considering a hard money loan for an investment property purchase, here’s a look at what hard money loans are and the typical requirements for a hard money loan.

What Is a Hard Money Loan?

Hard money loans are non-conforming financing options that are typically used to purchase commercial or investment properties. These loans aren’t available through traditional lenders like banks and credit unions. Instead, private companies or individuals may fund the loan.

As with a mortgage, a hard money loan is connected to the property, allowing the property to serve as collateral. However, they fund much faster – often closing within just a few days – and have less stringent requirements in many cases.

The interest rate associated with a hard money loan is commonly much higher than traditional lending alternatives. Additionally, the repayment term is far shorter. While mortgages usually have 15 or 30-year repayment periods, hard money loans may only allow a few years.

Since house flippers typically aim to renovate and resell an investment property quickly, the shorter repayment term isn’t inherently problematic. As long as the investment property sells within the repayment period, proceeds from the sale cover the cost of the hard money loan and any associated interest, and the investor keeps any remaining profits.

Hard money loans may also work for rental or commercial properties where anticipated income generation makes paying off the loan on time plausible. In this scenario, investors may aim to complete any required builds or renovations to ensure the property meets the livability or value requirements set forth by traditional lenders, giving them an opportunity to refinance the hard money loan into a typical mortgage upon completion.

Requirements for a Hard Money Loan

As with all lending products, the requirements for a hard money loan may vary depending on the issuing party. However, there are some more standard requirements that most borrowers will need to meet. Here’s an overview of the typical requirements for a hard money loan.

Sizeable Down Payment

Since hard money loans are usually riskier for lenders, the down payment requirements are commonly higher. For example, while mortgages may only require up to 20 percent, a hard money loan may have a minimum down payment requirement of 30 percent.

However, precisely how much the lender needs as a down payment does vary, including based on the borrower. If the borrower has a substantial history of repaying hard money loans on time through their investment projects, the lender may require a smaller down payment in comparison to what they’d expect from a less experienced investor.

The state of the property being purchased is another factor that may influence down payment requirements. Additionally, the buyer’s plans for the property could also play a role. For home flipping, local market conditions may cause down payments to rise or fall, for example.

Cash to Cover Fees and Insurance

Along with a down payment, buyers need additional funds to cover any associated fees or insurance needs in cash. This includes handling underwriting expenses, closing costs, and property insurance, at a minimum. Other fees may also be part of the equation, so investors should look at what the hard money lender specifically requires to ensure they have enough money to address these expenses.

Liquid Cash Reserves

Most hard money loans are used to purchase properties that require renovations or land for building a new structure. Since that’s the case, buyers need liquid cash reserves to successfully handle the project and meet any payment requirements for the hard money loan.

Generally, liquid cash reserves include money in savings or held in accounts where making withdrawals is simple and quick. As a result, the value of investment portfolios typically doesn’t qualify. Stocks, bonds, and similar securities aren’t inherently liquid, so their value isn’t factored into the equation. Similarly, the value of other held real estate doesn’t count since selling takes time.

Proof of Income

Along with a liquid cash reserve, many hard money loan lenders require proof of income. The goal is to ensure that the borrower has a reasonable amount of cash coming in from a source other than the investment property they’re considering. That way, the buyer has a way to cover the hard money loan payments should the project head in an unexpectedly negative direction.

Beyond proof of income, the personal finances-related requirements are minimal, if not non-existent. While a hard money loan lender may run a borrower’s credit, there typically aren’t credit score minimums. As a result, any credit checks typically focus on factors other than credit score, such as a history of defaulting on similar loans.

However, some hard money loan lenders forgo traditional credit checks entirely. Instead, they concentrate on income levels, current property values, and after-repair values. The property is acting as collateral, so as long as it has enough value to cover the loan with room to spare, that may be enough in some cases.

Suitable After-Repair Value

When considering a hard money loan application, lenders compare the current value of the property to its potential after-repair value. The after-repair value is based on the project the buyer presents, allowing the lender to estimate how much the property will be worth based on the improvements, location, age, local market conditions, type of property, and similar factors.

Generally, the bigger the difference between the current value and after-repair value, the more attractive the loan is to the lender. Larger differences provide a sort of cushion, as project overages or standard shifts in the market likely won’t eliminate all profit potential.

In most cases, it’s the after-repair value that determines the maximum amount a lender is willing to offer. Additionally, as a result, it also influences the required down payment.

A Clear Project Plan

Assessing the after-repair value isn’t possible unless there’s a well-outlined plan in place for the project. Often, aspiring buyers need to thoroughly outline the bulk of the project, including building or renovation schematics, material and labor cost estimates, anticipated timelines, and similar details.

The more comprehensive the plan, the easier it to for the hard money loan lender to understand the buyer’s vision and goals. Plus, a formalized plan shows focus and dedication, which can play in a borrower’s favor.

Solid Investment History

While having prior property investment experience isn’t required by all hard money loan lenders, it’s a must for some. However, even if it isn’t an explicit requirement for a hard money loan through that individual or company, having a solid investment history works in a borrower’s favor.

For example, a borrower who’s about to undertake their first flip is viewed as riskier than one that has a dozen successful flips under their belt. As a result, the latter may qualify for lower down payments or more favorable terms. Additionally, their odds of approval are generally higher.

For those with previous experience, providing an outline of past projects is wise. This is particularly true if the borrower can demonstrate a clear history of finishing on time and under budget, as well as securing post-update sales at or above the anticipated after-repair value.

However, even if a borrower has no investment property experience, that doesn’t mean they won’t get approved. Instead, they may simply need to do more due diligence to demonstrate they have a solid plan and enough cash reserves to handle everything that’s involved. That strategy gives the lender more peace of mind, which may make them open to a higher degree of risk.

A Reputable Hard Money Loan Lender

Technically, finding a reputable lender isn’t a requirement for securing a hard money loan. However, it’s essential for borrowers who want to avoid predatory lenders.

Predatory lending takes many forms, but it all typically involves unfair loan terms designed to rob borrowers of equity or make seizing properties easier. Some consider all hard money loans inherently predatory, as they usually involve higher interest rates and challenging fee structures. However, that likely isn’t universally true.

Borrowers should perform some due diligence when considering lenders. Compare interest rates and fee structures. Examine the lender’s reputation. Speak with others who used the company for hard money loans. Also, make sure to read the entire loan agreement and have it reviewed by an attorney.

A Big Dose of Reality

While being realistic also isn’t an inherent requirement for getting a hard money loan, it’s nonetheless critical. The borrower needs to be honest with themselves about their financial situation and the viability of the project. It’s easy to underestimate repair costs, particularly since some issues aren’t always visible until work is underway. Having a sizeable financial cushion that can address overages created by unseen problems is, therefore, essential.

Additionally, getting accurate data about material and labor costs is a must. Being realistic about the timeline and potential shifts in the local market is similarly critical. Otherwise, even experienced property investors may end up over their heads.

Ultimately, it’s best to consider a big dose of reality to be one of the requirements for a hard money loan. That way, borrowers don’t move forward based on an overly optimistic perspective only to find themselves in trouble once the project is underway.

 

Do you think the requirements for a hard money loan make sense? Have you used a hard money loan previously and want to tell others about your experience? Do you think that hard money loans are too expensive to be wise options? Share your thoughts in the comments below.

 

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4 Reasons Financial Advisors Recommend Starting Your Own Food Garden

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It’s no secret that things have changed drastically in the last few decades. As such, it’s important for anyone who wants to thrive to change with the times as well. One of the areas that has been affected by this change is agriculture, so it’s a good idea to find ways to move positively with the changes that have come up. If you’d like to see some solid reasons why financial advisors are recommending people to start their own gardens, read on to see four of them.

1. You’ll Save Time and Money

When you start your own food garden, you stand to save both time and money. This is because there will be no need for you to head to the store for grocery shopping as often as you’d need to if you didn’t have a food garden. To get the best outcome and make the effort worth it, you should find the best food crops to grow in your area that have a chance to thrive and give you a harvest that can support your family comfortably. While looking for the right crops to grow, keep in mind that four major biotech crops account for 99% of the GM crop area on a global scale. These are soybean, maize, cotton, and oilseed rape.

2. You Get Better Nutrition

Growing your own food in a garden at home will enable you to eat more healthily. This is because you’ll grow exactly what you want to grow and take care of it in an organic way. Since you’re not going to be motivated by increasing production at the expense of quality, you may not need to apply chemicals and fertilizers to your crop to maximize the outcome. Your food garden will also be small enough for you to manage sustainably and so you’ll have an easy time growing crops naturally. You may find that you need to visit the hospital less often as a result of this. This is one of the ways a financial advisor can help you maintain control of your finances in the long term. You’ll find that this may contribute to the fact shared by the National Association of Plan Advisors, which states that 95% of people who have a financial advisor believe that it’s worth the money.

3. You Benefit the Environment

The environment can always benefit from additional greenery, and so you’ll be doing a great service to it by starting a food garden. Look for crops that are known to do well in your area so that you don’t need to use too much resources trying to keep them healthy. You can also partner with agriculture-based companies that can give you advice and help you get the most out of your garden. Try to look for a good one based on the key messages they share with the public. These are the statements that someone and their organization or client agree to be the most important things that the target audience needs to see, hear, and understand about their business or brand.

4. You Provide an Opportunity for Learning

Last but not least, you provide an opportunity for learning, both for you and your family. You’ll all get to see first-hand how crops start and grow and understand the process of food production to a noticeable extent. This should make it easy for you to appreciate nature and make a bigger effort to keep the environment green. The fact that you’ll be outdoors is going to make the learning experience a lot of fun and allow you to get some beneficial Vitamin D at the same time.

Consider starting a food garden at home for these four reasons. It may be the best thing that you will do for yourself and your family this year. Do some research and find out the basics that you need to start your food garden. Starting small will be good enough and it will actually be better than not starting at all.

What Is The Cost of Living In Key West?

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cost of living in Key West

For many people, moving to Key West would be a dream come true. However, if you don’t live nearby, you may worry about whether the area is affordable. After all, living in a beach town typically comes with a price tag. If you’re trying to figure out if Key West is affordable for you, here’s a look at the cost of living in Key West.

The Cost of Living in Key West

Generally speaking, the cost of living in Key West is high. It’s a small beach community and a highly desirable area. Plus, as an island and based on its location off the southern tip of Florida, transporting goods into the region can be expensive, leading to higher prices when shopping.

As a result, prices for nearly everything are above the national average. Here’s a closer look at the cost of living in Key West broken down into categories.

Housing

When it comes to housing, you typically have to choose between buying and renting. Purchasing a home in Key West is quite costly. As of October 2022, the median sale price of a property came in at $917,500, which could make buying a budget-buster for many.

If you’re interested in renting, that also comes with a big price tag. A one-bedroom apartment typically runs $2,413 per month, while a two-bedroom can cost $4,400 per month.

When it comes to homeowner’s or renter’s insurance, you may see higher rates. This is particularly true since adding hurricane coverage is often viewed as a necessity.

Food

When it comes to food, the overall cost in Key West is approximately 5 percent above the national average. That puts it in line with cities like Miami, though it may not be high enough to completely derail your budget.

Transportation

Transportation costs about 10.7 percent more in Key West. In some cases, this is because it’s a smaller island, so there’s limited access to options, which can reduce competition. Additionally, bringing new vehicles to the area potentially costs more due to the location, and those expenses can be passed on to the buyer.

Gas prices are also higher in Key West than in many other parts of Florida. Due to the island’s location, you may also see higher auto insurance rates, depending on where you’re coming from, and you might need to add specialized coverage for hurricanes and similar natural events.

Healthcare

In Key West, the cost of healthcare is about 13.2 percent above the national average. Again, this is partially based on limited access, as fewer medical facilities can lead to higher costs.

Taxes

In Florida, there is a base statewide sales tax set at 6 percent. However, cities and counties can add to that, pushing this cost up. For Key West, that leads to a sales tax of 7.5 percent on most purchases.

For property taxes, a recently passed increase would set the tax rate at $2.14 per $1,000 of assessed home value. However, that may not take into account certain deductions or exclusions, so keep that in mind.

Utilities

While the utility rates themselves aren’t necessarily bad, your utility spending may go up if you move to Key West. The area frequently experiences high temperatures, and the costs of cooling can add up quickly. While the difference is less dramatic if your home is well-insulated and has a modern, efficient HVAC system, it can still be quite spendy when compared to other regions.

Does the cost of living in Key West surprise you, or do you think it makes sense based on the location? Do you consider the cost of living when choosing where to live or retire, or is it not a major concern? Share your thoughts in the comments below.

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Can I Move Out Of My Parent’s House With No Money?

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How To Move Out With No Money

Figuring out how to move out with no money isn’t easy. In many cases, moving comes with some significant expenses. For example, there are deposits required when you rent an apartment. Additionally, you’ll need to have a way to get your belongings to your new place, as well as pay your bills moving forward. However, that doesn’t mean that you can’t move out of your parent’s house with no money. Here are some options that can help you make it happen.

Start with a Budget

Even if you don’t have any savings to support your move, you may be able to make it work, depending on your income. Create a budget that outlines your current expenses. Next, add in costs you’d need to handle once you move, including rent payments, utilities, renter’s insurance, groceries, and similar expenses. Usually, you can find the average cost for those expenses in your area with a bit of research.

Once you know what you’ll need to cover, compare that to your income. That lets you see if you can potentially afford to move out, as well as if you have room in your budget to start saving for deposits and moving expenses.

Focus on Low-Cost Rentals

While you may have visions of having a luxury apartment, if you don’t have any money set aside, you’re going to need to start out in a low-cost rental. This might include small studio apartments or roommate arrangements.

With the latter, you may be able to save a bit more on your move. For example, if a friend has a room they’re willing to rent – and the landlord allows it – you might not need to cover security or utility deposits. Even if you do have to contribute to a security deposit, what you’d need to pay could be far less than if you moved out on your own.

If you need to move out as quickly as possible, you may be able to talk to other family members or friends to see if you can stay with them for a short period while you get on your feet. However, you do need to have a frank conversation to ensure everyone’s on the same page regarding how this plays out. Additionally, it’s best if you can show a concrete plan – including a timeline – that lets them know when you’d be ready to move into your own place.

Sell Your Excess Stuff

If you want to reduce the cost of your move and give yourself a little cushion, sell any personal belongings that aren’t essential. While it could mean living a little sparsely initially, it lets you get a bit of cash that you can use to cover transporting your other property to your new place, handle security deposits, or build up a small emergency fund to make sure you’re ready for the unexpected.

Secure or Maintain a Source of Income

When you don’t have a financial buffer, maintaining a source of income is essential if you’re going to move out of your parent’s house. Ideally, you want something reliable and reasonably consistent, especially if you want to rent a place on your own. Otherwise, you may have trouble meeting the income requirements for the rental.

In some cases, you may want to supplement your core income, as well. Options through the gig economy can be excellent ways to bring in a bit more money. Plus, if you start before you move out, you may be able to build up some savings to support your move.

Live within Your Means

Living within your means is crucial if you don’t have a financial buffer. Make sure you keep your expenses as low as possible and focus on saving before you move and after you transition into your new place. An emergency fund provides you with some security, so it’s crucial to build one as fast as possible.

While this can mean forgoing niceties for a while, it’s a sacrifice worth making if moving out is important to you. So, focus on keeping your expenses down and stash as much cash as possible. That way, you’ll increase your odds of success.

Do you have any other tips that can help people figure out how to move out with no money? Did you manage to move out on a dime and want to tell others about your experience? Share your thoughts in the comments below.

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