Lending in the gig economy

Posted by at 12:20 pm

Plans are underway at Fannie Mae and Freddie Mac to make home loan qualification easier for people earning money in the “gig” economy. For those not familiar, the “gig” economy refers to the pursuit of flexible, freelance employment instead of full-time work on a traditional career path. In today’s ever-changing economy, finding stable, salaried positions that cover the bills isn’t always so easy. Other people simply find working as an independent contractor better fits their lifestyle. Workers in the gig economy often make similar income to salaried positions. Arguably, their income is more dependable than that of salaried employees, whose jobs are closely tied to the success of their employer and stability of their field. But in many cases, gig earnings don’t qualify as income under existing mortgage-industry guidelines. Typical mortgages tend to require W-2 forms and IRS information going...
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Escalating the situation

Posted by at 11:58 pm

In the increasingly vigorous – and competitive – real estate market, motivated homebuyers may want to consider an “automated” method for making bids on a property of particular interest. You can often match or beat offers that come in later than your own by including an “escalation clause.” Here’s how it works: Say you put in an offer of $260,000, and someone comes along later and offers $265,000. Your escalation clause might come with instructions to match it, or to offer $5,000 more than the highest offer, so your offer automatically goes up to $270,000. The escalation clause can also include a “cutoff” or a maximum amount you are willing to pay – say $275,000. If someone comes along and bids $280,000, you’re not going that high. In situations where a property is likely to see multiple offers and even...
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E-cycle to recycle your tech waste

Posted by at 3:17 pm

According to the Consumer Technology Association, the average American household owns 24 consumer electronics products at any given time. Replaced for upgrades on a regular basis, the U.S. Environmental Protection Agency warns these products are also the fastest-growing component filling our nation’s landfills. And it’s like throwing away a gold mine. Seriously. Products like computers, TVs and cell phones contain precious metals like silver and gold, rare earth elements and other valuable materials like aluminum, copper and steel that could be extracted and reused. Cellphones by themselves represent a mountain of wasted resources. Only about 10 percent of discarded cell phones are actually recycled out of millions replaced each year. For every one million phones thrown away, 75 pounds of gold, 772 pounds of silver, 33 pounds of palladium and more than 35,000 pounds of copper goes in the trash...
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Looking out for Generation Z

Posted by at 11:51 am

It seems that almost every segment of the real estate profession today is aimed at the Millennial Generation. Makes sense. At 80 million strong, Millennials, born between 1981 and 1996, are the largest demographic in history. And now, most have graduated college, begun careers and families, and are settling nicely into the prime spending years. But time moves inexorably forward, and it’s not too early to be talking about the next wave of potential homeowners – Generation Z. Made up of the 75 million Americans born since 1996, Generation Z is expected to start buying homes in earnest within five to 10 years. Analysts say they’re going to be a bargain-hunting, tech-loving, real estate–savvy force to be reckoned with. Watching the Great Recession unfold, most are financially conservative. They know the value of a dollar and the mathematics behind long-term...
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