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Sunday, March 29, 2020
Private Lending During the Coronavirus
Varying government agencies have taken similar steps to those during 1918s pandemic to quell the spread of the coronavirus; isolation, quarantine, use of disinfectants, and limitations of public gatherings. These measures seem to be the fastest way to rid the general population of this kind of virus. During these times, the economic effects are dramatic.
An article by Thomas Garrett, Assistant Vice President and Economist for the Federal Bank of St. Louis, written in 2007 examining the economic effects of the 1918 influenza pandemic, indicated an eerie parallel to todays world. Merchants in Little Rock stated their business had declined 40. Others estimated a decrease of 70. The only business in which there had been an increase in activity was the drug store.
One difference in the two pandemics seems to be that the one in 1918 was reactive, whereas the current one appears to be proactive. In 1918, not only were businesses hit hard by the isolations/quarantines of people, thus, few people to enter an establishment to conduct business, but the number of workers affected with the illness were tremendous; thus, the labor force and the income derived by them had decreased substantially. The current pandemic has, potentially, some advantages over the 1918 pandemic; countries around the world have taken the above mentioned steps in the early stages of todays pandemic. With todays internet, not available in 1918, many workers can work at home. Companies such as Amazon still make home and office deliveries. The proactive measures that the world is taking will, hopefully, curtail the coronavirus so that it is short lived and we all can get back to a >
Garrett points out that most of the evidence indicates that the economic effects of the 1918 influenza pandemic were short-term. Many businesses, especially those in the service and entertainment industries, suffered double-digit losses in revenue. Other businesses that specialized in health care products experienced an increase in revenues. Some academic research suggests that the 1918 influenza pandemic caused a shortage of labor that resulted in higher wages at least temporarily for workers.
How does this affect the private lending sector? In early February 2020, prior to the US Government implemented guidelines of ways to help eradicate the virus such as no public gatherings of more than 250 [since lowered to 100 and in some cases, 10], there was an ample supply of money flowing into private lending. In addition, the capital markets were healthy and hungry looking to place money in loans. The stock market was at an all time high of over 29,500. By March 20, 2020, the stock market dipped below 19,000, a loss of more than 35. Investors, as well as bankers, pulled back their appetite to place funds, as fear and concern pushed these would be providers of capital to sit on the sidelines, as most tumultuous markets make investors anemic.
In addition, although Federal Funds Rates are at near zero, many large banks have, for the most part, stopped accepting loan applications. Most banks will honor their commitments to fund loans that were already approved, but, until things settle down, they do not want to take what they consider, undue risk.nbsp;
The capital markets [those buying loans] have all but dried up. They did not slow down. They just stopped altogether.at least for now.
Private lenders are lowering LTVs and charging higher points and interest as the supply of money has shrunk. Private lending companies derive most of their capital from individual investors. Many of these investors are skittish during uncertain times. When the supply of money seemed to be endless, especially in California, rates and points charged were at historic lows [in the private lending community]. The demand for loans, however, has not been dramatically affected yet. The reason for this is that the supply of money provided by conventional lenders has diminished. Since conventional lending makes up the majority of capital available to lend, this factor has more than made up for the slower demand of loans needed. Although some borrowers have cancelled their applications for loans due to uncertainty, there always seems to be a need to serve the borrowing community. People still move, loans come due, refinances as rates drop still occur and these loan requests need a home.nbsp;
Individual investors are demanding an increase in yield even at historically low rates. This could be due to these investors attempting to take advantage of the low supply of money available for loans. It also could be that these investors remember when they were able to command a higher yield during uncertain times such as the Great Recession starting just 12 years earlier; however, the predominant reason is most likely due to the unknown of how this virus will play out in the real estate market in an almost certain recession that will occur. These investors will demand a lower loan to value on the loans they are making in addition to a higher interest rate. Private lending companies that previously sold to the capital markets will also have to pay their investors a higher rate to attract money; thus, they will have to charge the borrower a higher rate. They will most likely also increase their spread at what they charge the borrowers as compared to what they pay their investors. Quality loans will be in demand for these companies. Loans that may have been marginal from a risk/reward standpoint just a few months ago will be turned down by many lenders.
If Garrett is right about a short lived economic impact due to a pandemic, there is a window of opportunity for those investors willing to lend. Due diligence will be very important, and investors should not presume that a recession is not prolonged. Conservative underwriting will be the law of the land and lower loan to values will be the benchmark. As one private lending company pointed out, there is always money to be made in real estate; one just needs to be prudent. So far, the number of illnesses and deaths worldwide have been >
Edwardnbsp;Brownnbsp;is in the Investor >
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March Real Estate Roundup
Freddie Macs results of its Primary Mortgage Market Survey shows that "The Federal Reserves swift and significant efforts to stabilize the market were much needed and helped mortgage rates drop for the first time in three weeks. Similar to other segments of the economy, real estate demand is softening. However, the combination of the Feds actions and pending economic stimulus will provide substantial support to the mortgage markets."
30-year fixed-rate mortgage FRM averaged 3.5 percent with an average 0.7 points for the week ending March 26, 2020, down from last month when it averaged 3.51 percent. A year ago, at this time, the 30-year FRM averaged 4.06 percent.
15-year FRM this week averaged 2.92 percent with an average 0.6 points, down from last month when it also averaged 3.00 percent. A year ago, at this time, the 15-year FRM averaged 3.57 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage ARM averaged 3.34 percent this week with an average 0.3 points, up from last month when it averaged 3.24 percent. A year ago, at this time, the 5-year ARM averaged 3.75 percent.
These are uncertain times, to be sure. But those same low rates that are driving refis are also attracting homebuyers. The 30-year fixed mortgage rate hovers above 3 percent, the lowest that it has been in nearly 50 years, Andrina Valdes, executive sales leader and CEO ofnbsp;Cornerstone Home Lending, Inc., told Apartment Therapy. The lower the mortgage rate, the lower a monthly mortgage payment is likely to be. So, anyone whos on the fence and thinking about buying a home could really benefit right now by purchasing at a record-low rate.
The truth is, there are still homes on the market. There are still people who need to sell. And there are still people who need or want to buy. If youre one of them, youre probably wondering how to go about it. iBuyers have largely shut down enti>
So how can you buy something you cant see? Its time for technology to take over. This time the use of technology may have a significant part to play in how the housing market can try and continue in a normal fashion, said Bindi Norwell, chief executive of thenbsp;Real Estate Institute of New Zealand on One Roof.
That means that your house tour will probably be virtual. Agents are embracing the tech available to them to bring homes to buyers since they cant bring buyers to homes.nbsp;nbsp;
As an alternative to in-person viewings, some agents are turning to tech, offering buyers virtual tours, said the New York Times. The NYC-based Ideal Properties Group launched a virtual listing viewer called Showings on Demand.nbsp;
Individual real estate agents have followed suit. Kendyl Young, Broker/Owner at Glendalenbsp;DIGGS, just held a Facebook Live Open House for her new restored Post and Beam, mid-century modern listing near Brand Park in Glendale, with plans to do more. Ill show you around the space and take your direction, she said on Facebook. Want me to show you a particular room? I will. Missed the part where I showed off the family room? Tell meIll go back. A close up of the super cool family room fireplace wall? Illnbsp;get closer. You are the PUPPET MASTER and I am at your direction.
Its all part of being able to adapt to clients needs during this time.nbsp;
Buying a home will always be a very human experience, but we need to adapt to this crisis, she told us. Physical showings are not safe, and we can marry technologies like 3-D scans, Webb meetings, and video conferencing to provide a pretty reasonable virtual experience. We must find ways to serve our clients while staying safe.nbsp;
Elle Jones of Keller Williams Harma Real Estate team is showing her new San Fernando Valley, CA listing, among others, via FaceTime. If youd like to view a house, Im happy to go by and do a FaceTime walk through for you, she posted on Facebook. If youd like to see my Newlisting in ShermanOaksnbsp;even better Lets get through this together
Hurdle 1: Failure to use the Reserve Study or not having one in the first place. Homeowner association boards have the duty to conduct long range planning to identify common elements, their current condition, their useful lives and current cost of repair or replacement. This exercise is called a Reserve Study. Some boards believe that a reserve study provides little benefit except to point out the obvious.
These same boards either elect not to pay the cost of one or put the one they have in a file to gather dust. Both approaches are foolish because without a clear road map to follow, the board is bound to get lost in the maze. Properly funding reserves for the standard 30 year projection period could amount to many hundreds of thousands of dollars. Larger HOAs with extensive common elements should reserve millions.
Failure to fund reserves adequately results in unfair and sometimes uncollectible special assessments. Prudent investment of reserve funds could partially offset member contributions and reduce the risk of special assessments.
Hurdle 2: Failure to understand investment choices. Some boards are under the impression that FDIC insured money market accounts or CDs are the only alternatives for reserve fund investments. There are a number of alternatives. State laws vary but in Oregon, for example, HOAs are limited to direct investment in issues of the federal Government and/or FDIC bank accounts or CDs. HOAs are not permitted to invest in municipalities, mutual funds or indirect investments investments to which the investor does not directly hold title, such as mutual funds, limited partnerships and Real Estate Investment Trusts. Non-FDIC insured money market accounts are not to be used for homeowner association reserve investments by law. This creates an opportunity to invest in longer term federal bonds. As of the writing of this article, the going rate of a10 year government bond is around 2.91compared with bank checking accounts that average around 0.5. This increased yield could go a long way to reducing the need for a special assessment. The challenge with investing in 10 year bonds is determining how much should be invested in them. Fortunately, the Reserve Study is very useful in determining the short and long term reserve cash needs.
Hurdle 3: Failure to utilize the Reserve Study when selecting investments. The first step in considering higher yielding investment opportunities is to put that Reserve Study to work. The Reserve Study can be used to match the repair schedule with the investments. This allows combining shorter term/lower yield CDs with longer term/higher yield Treasury Bills. This type of investment strategy is called a Duration Study. Even though a Duration Study costs money to perform, the extra interest return that can be earned by matching the investment duration to your specific HOA is well worth it. Duration studies and the investment mix need to be redone every time a Reserve Study is updated.
Hurdle 4: Not hiring a fiduciary. Regardless of how the board chooses to invest the HOAs Reserve Funds, time, expertise and professional ability are needed to manage them properly. It is in the boards interest to find someone that has the HOAs well being at heart, such as an investment advisory company that is a fiduciary to the board. By better managing your reserve funds, you avoid the hurdles described and improve reserve investment yields. Leave the hurdling to the track stars. Use a trained financial consultant to optimize your reserve fund investments.
For more innovative homeowner association management strategies, see Regenesis.net.
The kitchen is the heart of the home. This place is one of the most favorite places of moms, and for them, it is important to maximize the kitchen space so as to represent their personality and to serve their culinary needs efficiently.nbsp;
Whether the space is big or small, there are definitely plenty of ways to spice up the kitchen and do all their duties without the hassle With that, it is important to select a suitable type of furniture for your kitchen.nbsp;
So, without further ado, lets take a look at the list of cabinets recommended for the various types of kitchen:
Shaker cabinets are recommended for kitchens that are square and quite smaller in size. It is known for its simplicity with its basic hardware and recessed panel doors positioned like a frame. The material for most shaker cabinets are made from hardwood and are painted with a distressed finish for a traditional vintage look.nbsp;
Inset cabinets are composed of an inset->
Flat-panel cabinets are best for people who prefer a minimalist kitchen design. These cabinets make use of hard lines and are frameless in structure. This type of design fits most modern kitchens, especially white ones. This is also preferable for kitchens with smaller spaces as they are built in a simple but stylish way.
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Louvered kitchen cabinets are usually made up of wooden horizontal slats. This is commonly used for windows and laundry areas but is now being adapted into kitchen cabinet designs as it offers enough ventilation for utensils and items being stored in a cabinet. This type of design is most suitable for kitchens with large spaces for a more stylish look.nbsp;
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For home-owners that are unsure of what type of cabinets suit their kitchen, there is always an option to have them customized. You may contact local interior designers or anbsp; craftsperson to help you ideate and implement the design suitable for your taste, kitchen space, budget, and overall home design.nbsp;
Choosing a type of cabinet for your kitchen is highly dependent on the size of your kitchen, home design, and your spending budget. Other factors to consider would be the durability and material of your cabinets.nbsp;
While it may seem to be a less priority, taking time to think about your kitchen cabinet designs will su>
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But working from home takes a certain kind of discipline. And flexibility. And finesse. Especially if your spouse is also working from home and your kids are out of school. If youre new to this, we have a few tips that will help it go smoothly.nbsp;
Its easy to get caught up in work and forget to eat or get enough water during the day. Its also easy to take too many trips to the kitchen for snacks, and, before you know it, your healthy habits are going down in a hail of potato chips. Stocking up on healthy food and limiting the high-fat, high-sugar, high-calorie snack foods can help you resist temptation.
Working from home means youre out of your regular pattern, which means youre not getting to the gym. You may also find yourself sitting for longer periods while at home without the normal daily office realities of meetings and trekking to different parts of your workplace. There are tons of ways to get in a workout from homeespecially now, since a number of gyms and fitness experts have put their workouts online. Many of them are also free.nbsp;
Entrepreneur suggests you take walking meetings when you can.nbsp;If you have a phone call that you dont need to be in front of a computer to take, pick up your Bluetooth headphones and getnbsp;outside. Its great for your muscles, your heart, your happinessnbsp;and your overall well-being.nbsp;
It might be cute one time to hear the dog or kids in the background, but you dont want to make a habit of it, especially if youre in for a prolonged working-from-home situation. Even small noises that you think nothing of, like ruffling papers, can be amplified over a cell phone. Get used to hitting mute when youre on calls from home to eliminate the background noise and you wont have to worry about your three-year-old announcing she just went pee-pee in the potty while youre on a call with your boss and 10 other executives.nbsp;
This may be easier said than done. In some homes, there just isnt a dedicated home office or even a bedroom with a door you can close. You may find yourself having to work at the kitchen table or in the backyard just to get a little privacy. If you can, however, find a private space you can make your own while youre working from home. It can increase productivity and also allow you to separate work from life so, when you shut the door at the end of the day, you can be present for your family.
Or dont. Its totally up to you. Many people who work from home feel it makes them more productive if they get up, take a shower, and change into work-appropriate clothes. Others think working in their jammies is the best thing ever We tend to agree. The trick to successfully working from home is figuring out what works for you.
Set a schedule, and stick to it...most of the time, said PCMag. Having clear guidelines for when to work and when to call it a day helps many remote workers maintain work-life balance. That said, one of the benefits of remote work is flexibility, and sometimes you need to extend your day or start early to accommodate someone elses time zone. When you do, be sure to wrap up earlier than usual or sleep in a bit the next morning to make up for it. Automatic time-tracking apps, such asnbsp;RescueTime, let you check in on whether youre sticking to your schedule. They can also help you figure out what times of day youre most productive versus when you slack off. You can use that information to your advantage by reserving your hours of high focus for your most important tasks.
Set an alarm to get up once an hour, stretch, and walk around the house for a few minutes. Know your companys policy on break times and take them. If youre self-employed, give yourself adequate time during the day to walk away from the computer screen and phone, said Buzzfeed.
Working from home can feel isolating, especially if you get energy from your regular workspace and colleagues. One undeniable loss is the social, casual water cooler conversation that connects us to people, said NPR. To fill the gap, some co-workers are scheduling online social time to have conversations with no agenda. Use Slack chats and things like that if you miss real-time interaction.
Inc. has a few good ideas for how to be social during your break time. Walk around your home while chatting on the phone with a friend. Move to a separate areaaway from your emailto eat lunch for 30 minutes. Breaking up the day and moving your body enables you to refresh and can increase your productivity when you return to your work. When the weather is nice, I like to do conference calls while taking a walk outside.
Fannie Mae and Freddie Mac have been directed to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency, said the Federal Housing Finance Agency FHFA.nbsp;
This announcement comes on the heels of the Presidents press conference, during which he proclaimed that the Department of Housing and Urban Development HUD would suspend evictions and foreclosures until the end of April. The effort is geared at stabilizing the housing market and avoiding a repeat of the spike in foreclosures witnessed in the 2008 financial crisis, housing experts said, according to CBS News.
According to Denver-based real estate attorney Jeff Friedman of national law firm Hall Estill, this action by the government could protect homeowners at a critical time and ward off a potentially disastrous economic downturn.nbsp;
"Its no surprise that the coronavirus is wreaking havoc throughout our markets and the economy, he said. But, the CFPB, HUD, and FHFA have reached an elegant solution to an enormous problem at a critical phase in our nations current circumstances. In a typical down real estate market, the daisy-chain, domino-effect reaction goes as follows: apartment renters lose their jobs or take significant pay cuts and can no longer afford to pay their rent; owners collect less rent and cannot make their debt service payments to their lenders; and lenders are not collecting enough on the debt service, with their loans now on distressed real estate assets. Evictions and foreclosures follow, with distressed assets available to vulture buyers. Here, however, the CFPB, HUD, and FHFA have stopped this process before it starts, giving renters and financial institutions the opportunity to address claims through a dispute resolution mechanism administered by the CFPB.
We talked last week about the possibility of a mortgage holiday in the United States after Italy announced it would suspend mortgage payments, and now Bank of America is the first institution to make it a reality.nbsp;
The bank announced additional support for consumer and small business clients experiencing hardship from the impact of the coronavirus. Included among those support options is the ability to defer mortgage payments, said HousingWire. According to the bank, Bank of America mortgage and home equity customers can request to defer their payments while the virus crisis rages. The payments would then be added to the end of their loan. According to the bank, the payment deferral will be available on a case-by-case basis and can be extended on a month-to-month term.
The Trump administration is considering a plan to allow homeowners whose income was cut by the coronavirus to delay mortgage payments. Still to be decided is a mechanism for borrowers to catch up, said Bloomberg. The government also will have to determine how to advance money to mortgage servicers so that investors in mortgage-backed securities get their guaranteed payments.nbsp;
Homeowners impacted by disasters in the past have been able to take advantage of forbearance programs. Per Bloomberg, The White House has been in touch with mortgage lenders to discuss their views on policy responses, according to an official who requested anonymity to speak about internal matters.
Whats a real estate professional to do now?
Your professional and personal worlds have been upended and they promise to continue changing dramatically over the next weeks and months.
Even if you are not in self-isolation to help slow the spread of COV-19 virus, many connections and networks in your workplace and in the community have been temporarily severed by closures and social distancing policies like sheltering in place.
The worldevery media outlet, online and off, and almost everyoneis super distracted by COV-19. Collective and individual attention has shifted to worrying about what to do about whatever happens next.
Lots of voices are telling youand everyone elsenot to panic, but are you listening to that cool reasoning in this time of large-scale uncertainty? This may not be the time for a buy now or sell now marketing campaign, so what can you do to help yourself, clients, and your community calm down, refresh, and refocus?
Dont be distracted by the commonality that the label global pandemic projects. The most dramatic changes are driven by a united effort to slow virus spread, but the experiences and impact of this global redesign remain very personal, individual experiences for each person, each family, each business.
If you suddenly have free time, which would otherwise have been devoted to work, how can you turn that unexpected freedom into something beneficial? Whether you decide to invest time in your family, community, or in growing or redirecting your practice, this giant pause is an opportunity to apply your unique professional communication skills, real estate knowledge, and community connections:
Instead of me>
Ask how you can help and listen to their response. Some past clients may benefit from learning how loss of income can be dealt with without jeopardizing their mortgage, lease, or real estate. Others may welcome ideas on contacting resources in the community. Many may just want to chat with a friendly voice who is interested in them and is not selling anything.
On the other extremewe love home but enough is enough when entire families are all at home at the same time for the whole day, week, month Additionally, layoffs and business closings are leaving many with financial worries.
nbsp;Isolation does not have to be lonely or unproductive. What can you do to create or support shared experiences that respect social distancing, but let people laugh together? Have you seen videos of those under lockdown in Italy singing to each other from their balconies? In Spain, residents regularly give healthcare workers a balcony-version of a standing O Hi-rise neighbors joyfully engage in group exercises from their balconies. Many professionals are offering free webinars to help small business owners and entrepreneurs build skills while self-isolating. More and more are using connection platforms like Facetime and the free version of Zoom to safely share time with other isolated individuals and families over a meal, watching the same movie, learning a language
Your knowledge of social media, effective communication, and your professional skills may combine well to sponsor a social-distancing event like a porch concert, an online real estate Q amp; A, how to webinars, a silly YouTube series, or. What would de-stress, amuse, or inspire your neighbors and past clients? Do what you do wellthink of others and their needs. Let people see you as the resourceful, committed individual you are.
Have you studied the details for proper and fun hand washing, social distancing, and other health safety measures so you can safely show a home or assist sellers or buyers while reducing or eliminating virus exposure for all concerned?
This may be the time for more and better video representation of listed homes. How could more be appreciated and better understood about each listing when viewing the online profile, videos, layout diagrams, photographs, seller testimonials?
Helping buyers understand that you have visited all the potential homes they might consider. Using their specific buying criteria, youve professionallynbsp; evaluated each property in their price range and location. That means you can thoroughly present each property to them without having to take the buyers there. Instead of visiting dozens of homes, buyers can view all the listings in their chosen location and price range without having to leave the safety of their home. Help them narrow their choice to three buyable properties worth visiting.
Dont put this off any longer. If you have time on your hands now, heres your big opportunity. Indulge in fulfilling those interests and reduce stress and boost your immune system in the process. With a wealth of how to videos online, along with digital and phone access on a grand scale, theres no excuse not to start now with that exercise goal, creative outlet, guided >
Our instinctive reaction when we see others in pain or under stress is to reach out and give them a hug. The darn virus has robbed us of this natural reaction, but dont let it win. Reach out in every other way to benefit yourself and others.
Stay safe and healthy nbsp; nbsp;
There are some basic guidelines you should follow when getting rate quotes to make sure youre actually comparing apples and apples. For instance, you dont want to compare rates from different lenders for a 30 year and a 15 year program. The 15 year rate will be lower than a 30 but the payments will also be higher. In addition, how long would the quoted rate be food for? 30 day locks are a bit more expensive than a 10 day, for example. And finally, and certainly just as important, compare not just the rate but the fees associated with getting that rate.
There are third party fees, which the lender wont really have any control over, and there are lender fees. Third party fees would be something like an attorney fee or title insurance. A lender fee would be an underwriting fee, processing or document fee. These fees the lender does have some control over. Two of the fees quoted might also be confusing- a 1 point and a 1 origination fee. Are they the same, just different language or are they different?nbsp;
Theyre different.
A point, commonly referred to as a discount point is expressed as a percentage of the amount borrowed. If the loan amount is 200,000, the 30 year rate at 4.00 with one point, the additional point would then be 2,000. Lenders offer various options among rate and fee combinations and quite frankly really dont care if you pay any points or not as the net to the mortgage company is essentially the same.
nbsp;If you pay one point on a 30 year loan the quoted rate might be 0.25 lower compared to a loan without any points. Conversely, that same rate with no points will be higher than the one with points. Its completely up to you and your loan officer will be happy to provide you with a monthly payment and cost breakdown. In general, the longer you intend to keep the mortgage you may want to pay some in point to get the long term benefit. For short term financing options, dont pay any points while also exploring a no point, no fee program. Again, points are expressed as a percentage.
So too are origination fees. An origination fee is a charge by the lender or broker for originating the new mortgage in the first place. The most expensive costs for lenders when finding and processing mortgage loans is the overhead of personnel.nbsp; Loan officers spend time and money establishing a consistent referral base and at closing there could be a 1.00 origination fee. Of course, this fee should be disclosed to you early on in the Cost Estimate. But while both the point and origination fee are expressed as a percentage, theyre for two totally separate functions.
Having these kinds of spaces isnt always enough, however, if you arent able to use the space year round. Many homeowners who would otherwise want to invest in these types of spaces may end up putting it off, simply because they dont believe it will get enough use to be viable.nbsp;
Thats why adding some features to an outdoor living space that can extend their use can be beneficial; it adds value to the area, and increases homeowner use and enjoyment. The following five projects are designed to help make an existing outdoor space more usable at any time of year.nbsp;
Fire pits and outdoor fireplaces make great focal points for any outdoor living space. They create a gathering point, and allow you to extend the use of the space into the evening hours as well as into the colder months of the year with the heat and light they provide.nbsp;
Both of these features can add a lot of use and function to the area, but they are different in terms of operation and cost. A fire pit costs around 700 on average for a built-in model, or you can purchase a movable version for about 100. With a fire pit, you can gather around it on all sides, so it typically sits in the middle of your patio, which can mean its in the way when not in use.
An outdoor fireplace can be more expensive, averaging 5,000 - 10,000 if you use a readymade insert. You can only gather in front of it, so its a little less versatile, but its also tucked out of the way, so you arent using up valuable real estate on the patio as well. They make good additions to spaces that have other built-in features like outdoor kitchens, because you can typically add on in >
Hot tubs can be used in all kinds of weather and temperatures, including during the snow. This makes them a great addition to outdoor spaces where a pool might not get a lot of use, but a water feature could be attractive.nbsp;
Hot tubs come in all shapes and sizes including some that can be sunk into the ground, some that can be placed on a deck or patio, and even some that can double as an endless exercise pool. Because of these many choices, youll also have a range of associated costs. The average hot tub installation will run around 6,925 for a tub that seats four people. Keep in mind that many hot tubs are heavy, so if you want to place it on the deck, you may need to have it inspected to ensure it can handle the weight, since there are many factors that go into determining whether or not a deck can handle the additional load.nbsp;
Hot tubs can be located alongside pools or on patios easily, however, so even if the deck isnt the best place to install one, its possible to find a good location elsewhere.
Sunrooms blur the line between indoor and outdoor spaces. They can be three-season rooms with walls made of screens or they can be four season spaces with highly insulated windows. Regardless of type, they can usually be designed to create wide-open views so you can feel like youre outdoors even when you arent.nbsp;
Sunroom additions have an ROI of just shy of 60, which means that they can add some value to the home, as well as recreation and enjoyment. Sunrooms cost between 35,000 and 55,000 for a three season room with fans and outlets. Costs do go up as you winterize and create a more year round space, with most four-season sunrooms topping out around 60,000 to 90,000. This is mostly due to the amount of insulation and tightly fitting windows that are required for the space.nbsp;
Good lighting is important year round, particularly when you want to extend the use of your outdoor space into the evening hours. During the winter months, when the days are shorter this becomes even more important to the use of the space. Installing good landscape lighting to your patio, deck, or pool area can help make the space more functional while opening up more opportunities for things like entertaining.nbsp;
Outdoor lighting should ideally be customized to the space youre using. For example, if you have walking paths, youll want to ensure theyre well lit, while patios and decks may need additional lighting near seating and doorways to ensure the space is safe and functional. Outdoor lighting can therefore have a fairly wide range of associated costs, with the average being about 3,800 for 20 outdoor lighting fixtures.nbsp;
Most people associate awnings with creating shade on a hot day, but they also have use year round as well. Awnings can offer some protection from the elements, which can help keep snow and ice off of decks and patios, extending the amount of time they can be used. This way, you wont have to spend as much time shoveling out an outdoor area on a nice winters day.nbsp;
Not all awnings are going to work well for this; cloth awnings and those designed solely for providing shade may not be able to offer the protection you need. Look for aluminum awnings or have a custom, attached pergola with a solid roof added above your patio.nbsp;
A metal awning installation can be installed for as low as 600 to 1,000, while an attached pergola with a roof can run around 3,000 to 6,000.nbsp;
Outdoor living is becoming more important not only to homeowners, but also their properties. And the more versatile the space is, the more use it will get. Add any of these projects to your existing outdoor space to increase its value and the amount of use that the area will get and start expecting more from outdoor living.nbsp;
What you dont see are the off-screen bloopers. You dont see how often the paint color doesnt look right with the wall finish.nbsp;And dont see how long the job really took.
Can we share a secret?
Painting interior stairs isnt the hardest home improvement job, but its not as easy as the Property Twins make it look. Before you sand down your stairs and slap a coat of paint on, read this post. Youll find out everything you need to know about stair painting. nbsp;
Doing the prep work may seem tedious, but without it, the paint wont adhere to the wood.
Remove carpet and padding first, removingnbsp;any nails and staples left behind.nbsp;Get ready for lots of dust and debris carpets are messy and vacuum the area thoroughly.
Next, you sand the treads steps until you have a clean, smooth surface. You can use either a belt sander or sandpaper. Keep in mind youll need to sand the corners by hand.
Dont forget the risers and trim. Both need sanding before you start painting.
Grab your vacuum and a few damp cloths and get rid of the sanding dust.
When choosing thenbsp;paint and stainnbsp;for your project, you have an array of options.
For a weathered look, go with a light or medium tone stain. You could also choose a natural oil finish and leave out the stain altogether.
Not everyone likes the stained look. If youve decided to paint stairs instead of staining, using a porch and floor paint will give you a durable, slip-resistant finish. Youll also have a huge selection of colors
When selecting colors a dark color for the treads hides dirt. A light color for your risers adds a pop of visual definition. Consider color matching your tread and handrails and the risers to balusters.
Yes, theres annbsp;order to painting stairs ideas. Of course, if you have a bit of rebel in you, do it in any order you like, but you may wish you hadnt.
If youre refreshing handrails, do them first, followed by the balusters.
Now, youre ready fornbsp;the steps and risers. Starting at the top of the staircase youll paint the underside of the nosing. Then paint the riser, followed by the tread.
Skip a step. Continue the process, skipping a step each time. Painting every other step lets you use the stairs why your paint dries.
While we cant share everything you should know about painting stairs in this short post, you should have an idea of the main steps youll take to complete the job.
If you prefer to enjoy the look of refinished stairs without doing the work,nbsp;call us today. Were happy to provide a free quote for your painting project.
nbsp;And somehow, you start thinking, How can I get that kind of home?
The combination of alluring simplicity, >
Begin your revamp by choosing muted color palettes for the larger portions of your house like the floor and ceiling. Neutral shades like black, white, and grey work well for starters. Then purposefully incorporate textural elements and pops of color to give an air of sophistication to your space. For instance, the clean lines and neutral shades of an all-white-walled living room can be broken up by matte black lighting fixtures or a colorful painting. Adding throw pillows of varied complimenting colors and prints, and throw rugs of a variety of textures fur, microfiber, etc to otherwise plain colored couches create a cozier and more liveable feel to your space, too. On the flip side, keeping your walls or ceilings bare and exposed can serve as your textured base as in industrial design, while your contemporary home accessories can be super sleek and smooth in contrast.
Generally, contemporary home design strongly espouses natural light. Floor to ceiling windows is a defining quality of this design discipline, letting natural light flood in to compliment all the contemporary home accessories present. There arent usually any drapes, either, but if youre more comfortable incorporating curtains, make sure the material is thin, light, and airy, and is in more or less the same color palette as another design element in your space. That being said, dont be afraid to incorporate one or two striking home lighting pieces, as these can set the tone for the entire theme of your room and can significantly liven up space.
Its time to choose contemporary home accessories. Handpicking your furnishings can sometimes be the best part of redecorating, but it can also get overwhelming fast. To make sure everything you pick outstays harmonious with your spaces base, go for sleek furniture pieces with rounded edges and complementing colors to neutralize and strong and clean lines already present back home. Iconic pieces with pops of color or texture fit in nicely into all-brown or all-white spaces, and plants give a more liveable feel to your abode. Dont be afraid to incorporate a centerpiece or two large paintings or other interesting wall hangings can be a great conversation starter
Maximize the use of shared space, not just horizontally but vertically as well. Open floor plans are another defining quality of contemporary home design, so keeping that in mind can help you arrange your contemporary home accessories better too Open spaces not only make it more efficient to move around, but it can encourage more interaction between housemates and guests, too. If your space is small, to begin with, create the illusion of negative space with simple, gold or chrome-trimmed wide, long, or round mirrors flush against your walls. If your space is more on the tall side than wide, making use of unusual but stylish home lighting pieces will round off your space nicely.
At the heart of it all, contemporary home design is meant to be changed around, just as the tastes and whims of the people living in the space do. So keep your space moveable and liveable, as you never know when youll feel the need to add in another painting or throw pillow or change the colour or texture of your walls. It all boils down to striking the perfect balance of clean and quirky and finding the perfect combination of >
Home design inspiration is a dime a dozen in the whimsical world of the internet, so one bonus piece of advice and this may be the best one out of all of them, to be honest is to take the rules youve learned here and go out there and decorate Get your hands dirty with familiarizing yourself with shades, textures, fixtures, furnishings, and everything in between, because only then can you apply these rules on contemporary home design, and maybe even bend and break them for a truly contemporary masterpiece right in your own living space.
This can mean sending copies of your most recent paycheck stubs, W2s and income tax returns. If youre self-employed you can be expected to provide both personal and business returns but also a year-to-date profit and loss statement. Bank and other asset statements will be forwarded to verify there are sufficient funds to close on your transaction. Once youve passed this initial stage, your loan application goes to the Loan Processor. What does your loan processor do and what can you expect?
Your loan officer will then hand off your file to the processor. The loan officer is always there to talk about the progress of your application and answer questions as your file moves along, but its the processors turn now. The loan processor will review the automated underwriting findings to make sure that what is asked for is being provided and if not, when the needed items will be submitted. The processors primary job is to prepare your loan file for submission to the underwriter. If youre asked to provide your most recent paycheck stubs covering a 30 day period and there is only one in the file covering two weeks, the loan processor will ask for additional paycheck stubs to meet this 30 day requirement. The processor will also review the information youve submitted to make sure it matches up with what the lender needs.
The loan processor will also begin ordering information from third parties to complete the loan file prior to submission to underwriting. This means contacting the title company to get a p>
After the file has been completely documented, it is forwarded to the underwriter. The underwriter is the individual responsible for making sure the loan package conforms with the guidelines issued for the selected loan program. The underwrite will review the submission and in doing so may have additional questions or request more information or documentation. These requests go back to the loan processor who then contacts you to fulfill the underwriters request. You wont be able to speak with the underwriter directly, instead youll provide what is being asked for by the underwriter to your loan processor. After all questions have been answered and needed documentation supplied, your loan processor is no longer involved.
Below are the essential renovation tools thatll help you with your next renovation project.
For any do-it-yourself renovation project, youll need a tape measure or measuring tape. Measuring tapes have a small slot located at the end hook, so you dont need help in holding one end of the measuring tape in place.
However, this essential item is easily forgotten. Make tape measure your lifetime partner to ensure that you take dimensions of surfaces, corners, and edges accurately. Also, choose one with a switch that stops the measuring tape from retracting back.nbsp;
For most woodwork projects, a hammer is an essential tool that youll need for driving and pulling nails. While youre used to using traditional old-fashioned hammers, spend some time researching pro tools for efficiency and precision. Itll save you plenty of time because it gets nail work done more comfortably and faster.
Here are some of the features and benefits of a professional brad nailer:
Impressive Magazine Capacity: Most brad nailers have the 60-nail capacity, and there are those with 100-nail capacity.
LED Light: Its used to help you see and focus on your woodwork with a clearer vision
Air Pressure or Pneumatic Nail Guns: These nailers are portable enough that you can carry it anywhere and anytimenbsp;
Without a ladder, its impossible to reach wall heights you want to reach. A sturdy and >
The most popular type of ladders are aluminum ladders because theyre lightweight, water and flame resistant, affordable, and fairly corrosion-resistant. Just make sure that you have one with an attachment for your other renovation tools with manufactured rungs so that you stay comfortable as you stand on it for hours, like painting the cornices of your bedroom.nbsp;
While power tools are fast efficient, using hand saws still makes a difference. It can be used for multiple purposes. Instead of an old-fashioned hand saw, you can use a modern hand saw, which is more durable and faster. So, when do you use hand saws over power tools?
Here are some examples:
Undercutting Door Jambs: Japanese pull saws are highly recommended for undercutting door jambs than jigsaws. It can cut on the pull stroke, which makes it easier to start cutting and control. A Japanese pull saw has super thin blades that make precise cuts in door jambs for easy insertion of tile or vinyl.
Rigid Foam Insulation: Power saws can mess the rigid foam. Thats why hand saws are better in making curved cuts to help minimize the mess.
Steel screwdrivers resist twisting and bending, which are usually cross or flat head with a handle, a tip, and a shaft. A screwdriver is inserted into the screw head, turning it.
When using a screwdriver, make sure to use the correct type to avoid damaging the head of either the screwdriver, the screw, or both.nbsp;
You cant proceed to your renovation project without drill bits, which are cutting tools for removing material to create holes, such as holes in circular cross-section. Drill bits drill different materials like metal, wood, PVC, and fiberglass.
Here are the different drill bit materials you can choose from:
High-Speed Steel HSS: Its a popular material thats suitable for drilling wood, plastic, and soft steel.
Cobalt or HSCO: Its an upgrade from HSS with 5 to 8 percent Cobalt blended in the base material, which is used for drilling stainless steel grades and harder steel.
Carbide: This drill bit material is used for drilling the hardest materials.
Pliers are used to firmly hold, bend, and compress objects with accurate precision. While there are many types of pliers used for different purposes, having a pair of pliers at hand is crucial for any renovation project.nbsp;
This tool is used to show how perpendicular plumb or parallel level a surface is >
For a successful renovation project, its important to have handy tools available for easier and faster work. Both traditional and power tools have their own features and benefits, so you have to choose the best ones that are most convenient for you.
Mortgage payments will be suspended across Italy as the Italian government places the population on lockdown because of the coronavirus outbreak, said Business Insider. The Italian government has placed Italys more than 60 million people under lockdown, extending emergency measures initially imposed only on northern regions as it struggled to stop the coronavirus from spreading.
Prime Minister Giuseppe Conte told everyone to "stay at home" and has banned public gatherings including sporting matches and weddings. In addition, most public spaces, save for grocery stores and pharmacies, are closed for the foreseeable future.nbsp;
Refinancing here is in the midst of a major boom. Applications to refinance a home loan jumped 79 last week compared with the previous week, according to the Mortgage Bankers Association, said CNBC. Applications for home purchase loans were up just 6 for the week.
Home buyers and sellers arent enti>
And, in fact, this might end up being a once-in-a-lifetime opportunity for savvy real estate buyers. Economists say that low mortgage rates could soften the impact on sales this spring. Although most people think of recessions with dread, it is worth keeping in mind that they can also be periodsnbsp;of opportunity, especially if you are prepared, George Ratiu, a senior economist at realtor.com, said in REALTOR Magazine. As the last recession demonstrated, while asset markets declined, many prepared buyers found treasures, often in low-priced homes.
But the big real estate->
The short answer is: probably not, said HousingWire. Most American mortgages are packaged into bonds with legal terms that dictate what the servicers who handle the billing can and cant do. There are ways servicers can offer forbearancean agreement to let borrowers either pay at a lower interest rate or suspend payments temporarily because of a hardship. But its on a case-by-case basis.
Somebody owns those bonds, Mark Vitner, a senior economist withnbsp;Wells Fargo, told them. Who is going to make those interest payments?nbsp;
That likely wont stop distressed homeowners from trying, especially if widespread quarantines become a reality in the U.S. Some of Americas largest mortgage lenders are urging their borrowers to get in touch as soon as possible if they making home loan payments becomes difficult because of the coronavirus health emergency, said Newsweek. While none of the institutions who were approached bynbsp;Newsweeknbsp;and responded had a specific policy >
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How To Deal With Collecting HOA Delinquencies
Establish a collection policy with teeth. While this sounds simple enough, many HOAs have nothing more in place than the often inadequate provisions of the governing documents. The collection policy needs to be clear and concise. Some of the basic provisions should include:
Date the fee is due
Date its late
Penalty for late payments
How late payments will be applied to outstanding balances
Legal procedures that may be invoked after a certain period or level of delinquency is reached
Who pays collection costs
Lien filing rights on an owners property if payment is not received and,
Foreclosure provisions.
The goal of the well written collection policy is to move the HOAs bill to the top of the payment pile. As with any policy enacted by the board:
Apply the policy consistently. Once the policy is agreed upon, do not deviate from it. While there are great excuses still to be heard, the board has a fiduciary duty to protect the HOAs rights. If one owner doesnt pay, other owners have to ante up the difference or services will need to be curtailed. The board must absolutely avoid selective enforcement due to a friends, family members or a personal default.
Apply the policy in its entirety. The typical collection policy is made up of a series of sequential events that are triggered by time and/or dollar amount. Once put into motion, allow it to run its course. This typically ends in placing a lien on a members property. Garnishing wages, seizing property and foreclosure are possible but usually not invoked unless the case is extreme.
Use an attorney well versed in legal collection procedures. While attorneys should not be the first line of defense, the procedure should include them once the size or age of the balance due reaches a certain proportions. Liens and foreclosures are an attorneys domain. The impact of an attorney letter alone may be sufficient to turn the collection tide.
Hire a property manager. Collections and rules enforcement are the main reasons folks dont want to serve on the board. A manager doesnt live there and for them, collections are business as usual. If your HOA is experiencing greater than normal collection problems, this may be the best step to getting collections back in line.
Lets face it, collections are an unpleasant but necessary part of homeowners association living. Rather than reacting or overreacting, prepare for them with a strong yet fair policy. If the members know the will of the board, most wont tempt the process.
For more innovative homeowner association management strategies, subscribe to Regenesis.net.
Is an ADU the answer to the dilemma of where youre going to live during your retirement years? Or where to move your parent who wants his or her own space close to you? Thats the idea thats intriguing many across the country.nbsp;
So, what do you need to know about ADUs? Were breaking it all down below.nbsp;
You would think so, given their small size and the fact that, presumably, they are being built on land you already own. States like California have passed laws to make them easier to build, resulting in tremendous growth. "At the start of 2017, a California state law went into effect that forced cities to >
However, not every state or municipality is quite so progressive. Barriers to the growth of granny flats include municipal statutes, zoning laws, building restrictions, neighborhood covenants, and other regulations, said The Spruce. New construction is more expensive as well, and homeowners may find it difficult to get financing. Connecting utilities can also be expensive. Some municipalities require that driveways and/or off-street parking be provided for the granny flat occupant, and that can add expense, or be completely unfeasible for certain properties.
Speaking of cost, part of the allure of an ADU is how affordable it is in comparison to a typical single-family residence. But its still in investment. A legal accessory dwelling unit which includes a kitchen and bathroom, costs typically start at 80,000 and quickly move up from there, said Maxable. For a stand-alone accessory dwelling unit expect the cost to start at 150,000 and increase from there.nbsp;
The cost of construction isnt all there is, however. Homeowners are often shocked at the cost of permitting, which is why there are so many illegal accessory dwelling units out there. In some cities, where development and impact fees for this type of construction has not been waived, homeowners can expect to pay upwards of 20K in fees.
That includes impact fees, which cities charge homebuilders to assist in paying for things like schools, parks, and roads. In Washington, for example, depending on what city you live in, so-callednbsp;impact feesnbsp;alone might total as much as 9,000, said Sightline Institute.
Regardless of the legality in certain areas, there are those other restrictions that may make it challenging to build an ADU on a specific property. Specifically, zoning restrictions can limit what you can do with your ADU, where you build it, and even who can live inside.
Many cities and counties permit ADUs in one or more single-family zoning districts by right, subject to use-specific standards, said the American Planning Association APA. Common provisions include an owner-occupancy requirement for one of the two dwellings, dimensional and design standards to ensure neighborhood compatibility, and off-street parking requirements. Other >
Before you move ahead with plans for an ADU on your property, check with your state and local authorities. In some states, localities must permit ADUs by right, under certain conditions. In some others, state laws preempt some aspects of local zoning for ADUs or actively encourage cities and counties to adopt permissive zoning regulations for ADUs.
Billion-dollar disasters in the US increased two-fold between the years 2016 and 2018, hitting a record high of 15 catastrophic events each year. The total losses caused by these events, according to the CBNC, amounted to 91 billion. Valuable items in storage are often the most affected in the case of natural disasters.
It is highly recommended that you take up an insurance cover that would indemnify self-storage contents in case of such events. Considering the apparent increase of billion-dollar disasters, paying for storage unit insurance would be a worthwhile investment.
So recently, the salesperson at your storage space tried to sell you storage unit insurance. What is it, and do you need it? We give you an honest answer here.
Youve amassed lots of valuable possessions over time. Some no longer fit in your house, or maybe you need additional space for new items. While you do not want to forfeit some of this stuff, you may need to look for alternative storage options.
This is the premise on which storage units exist. 10 of all Americans have rented a self-storage unit at some point. However, the safety of the stuff in such storage units often comes to question whenever instances of extreme weather conditions hit the country.nbsp;nbsp;
Are your self-storage contents safe in the wake of these catastrophic periods? That answer can only be in the affirmative if you have an insurance coverage plan. Storage unit insurance covers the full extent of your stored property anywhere in the world.
You are entitled to full compensation for any losses or damage to such property in case of certain specified events. It may become a necessity to apply for self-storage content insurance in the future. This is especially >
Well, the answer is hidden in the original objective of insurance. You need to cushion yourself and your property against unforeseen risks. If you have opted to store some items in a storage unit, then they must be important.nbsp;
Most of the items stored in these units have timeless value to the owners. You will undoubtedly incur significant financial losses if specific calamities strike.nbsp;
The owners of storage facilities can prevent the occurrence of theft and malicious damage. However, other instances, such as fire, floods, and earthquakes, are beyond human control. You may never get to recover from such cases of extreme losses without indemnity.nbsp;
Having >
Depending on your insurer, storage unit insurance covers a variety of named perils. For easy categorization, these events fit into usual or unusual occurrences. Routine occurrences are events that are an orchestration of human beings. They include riots, theft, malicious mischief, or plumbing >
Unusual events include all acts of God, which the storage unit owners cannot control. Windstorms, hailstorms, floods, and snow are typical examples of such unnatural events. If you can find a >
Yes, most renters insurance policies will cover your property while inside the storage units. But you need to ensure that your storage facilitys insurance covers the items you intend to store. Depending on the existing agreement, your renters insurance policy will likely protect up to about 10 of the stored items.nbsp;
The exception to this aspect is in the circumstances under which you decide to store such belongings. If you can validate your reason for seeking storage space, then it is likely that you may be fully insured. Such instances include cases where your home is undergoing renovation.
You will still be eligible for insurance coverage for your stored items as long as these items are part ofnbsp;the renters insurance agreement.nbsp;
You need to be fully acquainted with your storage facilitys approach to insurance coverage before committing. It is common for these facilities to use unfair means as a tool towards coercing you to buy into their insurance. However, when you observe keenly, you will realize that most of the renters insurance policies exclude certain critical items in their agreements.nbsp;
Such exclusions include motor vehicle coverage. You may need to purchase a separate auto insurance cover for your motor vehicle if your renters cover does not include such coverage. You may also need to seek alternative coverage for other risks, such as damage caused by rodents.nbsp;
You may also need to consider other insurance coverage options for your expensive items and documents because most storage facility insurance excludes such costly items such as collectibles and artwork. You need to be aware of these dynamics before settling on a suitable storage insurance option for your self-storage items.nbsp;
Whichever your reasons for seeking a storage unit insurance cover, you must be keen to ensure that your coverage is inclusive. You may need to be extra vigilant before deciding on what works best for you. One of the easiest ways to access a reputable insurer is via online searches.
Websites for the specific providers will give you all the details you need about each company. This allows you a chance to go online and seek referrals through case reviews and testimonials.nbsp;nbsp;
With the changing dynamics around technology, you can be able to access and purchase storage unit insurance online. This option comes with the luxury to decide on your most preferred store facility.
Your Valued Possessions Are Safer With >
The inevitability of life makes insurance coverage an unavoidable necessity. Now that you are willing to pay an extra cost for the storage of your valuables, it is a statement of the attachment you have to them. The only other thing left to do is to consider a storage unit insurance to guarantee extended-term indemnity in the event of a calamity.
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