Finance

August Funding Gives Tips for Building an Emergency Fund

Posted on by Hassan Modjiri

Building an emergency or rainy-day fund counts as one most important parts of your financial life. When you have an emergency fund, you’re less inclined to worry about what an emergency room trip or a car repair will cost you. You’ll be prepared for such an eventuality. If you have a large enough emergency fund, then you won’t even worry much about big financial stresses, like a job loss. 

Most people know that they need to create an emergency fund. However, many don’t know how to build one. In fact, one of the most common questions that a company like August Funding gets is, “How do I build my emergency fund, especially if I don’t have any extra money?” 

While the answer to this question isn’t always easy, it is simple, meaning that you may have to sacrifice a bit in order to create your emergency fund. However, if you implement the following five suggestions, you’ll be on your way to building an emergency fund that even the wettest rainy day will have a hard time washing away.


The Two Types of Emergency Funds



When reps at August Funding refer to an emergency fund, they actually can be speaking about two separate funds, a short-term fund and a long-term fund.

The short-term fund is a small amount of money – relatively speaking – that allows you to fix your broken furnace or car. That’s usually the fund that has one- to two-thousand dollars in it. This you want to keep in an account you have easy access to, like a savings account.

The long-term fund provides a cushion for a major financial disruption, like illness or job loss. In this fund, you keep three- to six-months’ worth of income stashed away. You might put this in a money market account or some other account that is a little harder (but not impossible) to liquidate on short notice. While you’re waiting for the funds to come through, you do have the option of using your short-term emergency fund. 

Any time either of these funds gets depleted, make sure that you fill them up again. 


1. Save Your Tax Return



Earmarking your next tax return for your emergency fund counts as one of the simplest steps you can take to get your rainy-day fund started. What makes this so ideal is that it can be quite a large sum of money that you’ll get all at once. It can be enough to build the foundation for a small emergency fund of $1,000 – $2,000 dollars without much effort, depending on your tax status, of course. 


2. Get a Side Gig



Financial expert Dave Ramsey suggests that those without an emergency fund look for a side hustle. This can be anything that brings in some extra cash, from dog walking to pizza delivery that will bring you a couple hundred extra dollars a month. 


3. Re-Examine Your Budget



The circumstances of your life may not yet allow for a second job. However, that doesn’t mean you’re powerless over your financial circumstances. Nerd Wallet points out that cutting expenses is also a viable option for those who want to put together an emergency fund. 

If you go this route, plan on taking a look at where you can cut costs out of your budget. Are you eating in restaurants too often? Avoiding coupon-cutting because it’s a hassle? Using your credit card without a second thought? 

Once you know where your money is going, you’ll be in a better position to start cutting away the financial fat. Any extra cash that comes from these efforts should be put into a special savings account reserved for this purpose. 


4. Have a Yard Sale



Most of us have items that take up room in our closets that we haven’t seen, used, or worn in years. Why not clear out the clutter and make some cash in the process? Go through your closets, your kids’ bedrooms, the garage, etc. and look for items that would be worth some cash to you and valuable to someone else. Sell those items and put the cash you make into your rainy-day stash.


5. Start a Change Jar



It’s amazing how your small change can add up. Just think of all of the times that your coffee bill was something like $4.71 instead of $5.00 or your grocery bill cost you $39.28 instead of $40.00. The extra change that you get from these transactions can go into your change jar if you have one. 

If you don’t, then you can look into a mobile app that allows you to save your change each time you pay something with your debit card.


Last Thoughts on Building Your Emergency Fund



Having a rainy-day fund can mean the difference between comfort and disaster when fate comes calling. However, saving for a rainy day requires consistency and discipline: The amount of money you save is almost secondary. It’s the habit of saving that makes the most difference. 

If you get into the habit of saving even when you have very little money, then it will be an ingrained habit when you finally have more money. Best of all, you’ll have the funds you need to see yourself through life’s storms because of your efforts.

Five Options for Those Who Need Funds to Start Flipping Houses

Posted on by Hassan Modjiri
bad credit loans
Fixing and flipping houses can be an excellent way to make a nice profit. The process is both unpredictable and expensive. The property must be purchased, renovated and all permits must be in place. If the property does not sell quickly there are holding costs and broker fees. The most difficult aspect is securing the necessary funding. The best candidates have a credit score of a minimum of 650, have already flipped one house, have no tax liens, foreclosures or bankruptcies. There are additional options to secure financing for those with less experience or imperfect credit such as hard money loans.

Private Loans

A private loan is generally issued for one year but can often be extended for an additional two to five years. This type of loan takes approximately one week to close. This is a good option for someone with poor credit or flipping their first home. Collateral is much more important than a high credit score. If the property requires a lot of repairs the financing may be at a higher percentage. Private loans are common for first-time flippers because banks will usually not finance loans for houses in poor condition. Private loans are also referred to as hard money loans. The majority of these lenders are found at real estate meetings, by word of mouth or online. Networking is critical for this type of loan since they are often based on trust and a personal relationship. These are high stakes lenders, they expect a portion of the funding to come from the investor and expect to see a return. This is the most common way to secure bad credit loans.

Bank Financing

A bank loan typically requires one to three months to close and is offered for a shorter period of time. Investors with approximately two years experience flipping homes and a good credit score can often obtain a bank loan. The investor must be able to make a down payment. The investor will usually receive a line of credit instead of a lump sum. The interest rate is lower and they only pay interest on the amount they use. It is important to compare the rates offered by numerous banks. The investor must report their income, employment history, asset and income statements and all necessary documentation to the bank for a faster approval. For those unable to qualify for bank loan please review bad credit loans.

Online Mortgage Lenders

Online mortgage lenders issue loans for fifteen to thirty years for investment properties. This loan requires roughly thirty days to close. This type of loan is designed to make flipping homes easier but some experience is generally required. This is a traditional mortgage and the application process is automated. Numerous traditional lenders offer this service. The rate is lower than with most other loan types but the repayment takes longer.

Home Equity Loan

This is a loan for five to fifteen years with an average closing time of two or three weeks. This loan is granted to individuals with equity in their homes willing to make payments on a second mortgage. This provides the funding to flip a house. The investors home is the collateral. If a profit is not made on the investment the individual can lose their home. This option is not recommended for any investor who has never flipped a home before. Rental properties can also be used as collateral for a home equity loan. These are longer-term loans with lower rates. A line of credit is usually easier to make payments on than a shorter term loan.

Friends and Family

The last resort to secure funds to flip a home is the family and friends of the investor. These individuals should understand both the risks and the industry of real estate. If the investment is not profitable the relationships may be damaged permanently. The agreement should always be in writing and the terms extremely clear. The investors must understand exactly what the investor is planning to do and accept the risks involved. The interest rate is decided by the investor and their family and friends.

Prior to looking for a loan to flip a house, it is important the proper research is conducted. The investor must become familiar with the real estate market in the area. This included reliable local contractors and specific neighbourhood details. Any lender will want to see more than simply good credit. They expect to be presented with a solid plan. For any investor ready to flip a home the above sources are a good place to begin. Funding will be acquired more easily through the lenders online. The more traditional lender will charge a higher rate.

How A Small Home Investment Can Double The Price Of Your House

Posted on by Hassan Modjiri

When do you worry about the value of your property? When you want to sell or considering such a move is one time. However, that is not the only time. Sometimes, it is about feeling good about the value of your home. Sometimes, an expected valuation that you believe should get you a good loan on your property is the motivation. In all these situations, you need to improve the value of your property.

To do that, several property merchants argue that you don’t have to break the bank to improve your home. In fact, they caution people from overspending on a certain property. In some jurisdictions, there are property value caps. So, even if you spend a fortune, your value cannot improve beyond a certain point. Here are simple investments that can add a significant value to your home.

1. Upgrade appliances and broadband signal

The new markets for homes and properties, in general, is increasingly millennials. To appeal to them, you have to be cool. For a start, add energy efficient models on your house. Your HVAC is top on the priority list. Remember millennials tend to use unconventional methods of saving; not using something is not one of them. They want to use air conditioning, it had better be energy saving.

Again, top on the list of most youthful families is good WIFI. If your home has poor broadband reception, you are likely to get a poor valuation. Remember the internet is now a basic need.

If you need more recommendations for which appliances to update simply Ask Bongo for recommendations.

2. Outlook and first impression

If from a distance your property looks glum, you’ll have to price it lower to appeal to anyone. Work on the exterior of your house. Maintain your fences, keep it trim, and kept. Fix your roof, windows, and gates. Leaky garages, screeching doors, and leaking roofs are characteristics of a derelict.

Who will buy a ruin? Sadly, no one. General maintenance of your property is a responsibility. Even you, can you really stay in a rundown place where even opening a door requires a crowbar? Zillow predicts that a well-maintained property sells twice faster and fetches 5% more on its valuation, unlike unkempt houses that fetch less than their market value.

3. Modernize the bathroom

Even for personal gratification, the bathroom requires efficient models. Add water-efficient models and add a few more value to the bathroom. People are emotional about their bathroom and are likely to be convinced to up their bid for just installing a frameless shower or pendant lighting.

The investment in the bathroom must be reflective of your home value though. You don’t have to add a $20, 000 upgrade in a $200, 000 home. Most bathroom upgrades should take less than 5% of your property value.

4. Improve on your kitchen

Not just you who is ecstatic about a modern kitchen, most of us are. Ensure all essentials are there in your kitchen. Ensure the shelves are standard. Modernize your sinks and taps. When it comes to kitchen appliances, use energy efficient models. If you’re not sure which models are energy efficient and don’t want to perform the research yourself Ask Bongo.

5. Add a garden

Don’t just have it, maintain the garden. Keep it trimmed and make sure that overgrown bushes do not obstruct light. A garden may not necessarily be used, but it features prominently in home valuations. First, it gives the impression that the place is pet-friendly.

6. Double-glazed windows

It is now almost becoming a requirement in the property market. Valuations for properties with window frames and double-glazed windows is impressive lately. You don’t want to see your property value go down because of such a small investment. Zillow observed a 5% addition to your value when you install these windows. If your property value is $100, 000, you are likely to sell it for $105, 000 after installing the windows.

Conclusion

Sometimes, you don’t need to do a one-time upgrade because it is expensive. Instead, you can replace every old item with a newer and efficient model. If the water heater develops a problem, sell it and get a new one.

Before you make an upgrade, it is good to visualize how the output will look like. Sometimes, you don’t have an idea on what exactly you need to upgrade in your how or even how to go about it. Several solutions exist nowadays. For example, Render 3D offering a 3D simulation of property upgrade. The virtual 3D rendering helps you to approximate costs and engage more fruitfully.

Top Reasons To Hire A Debt Settlement Company

Posted on by Hassan Modjiri

Debt is a major challenge that millions of people face every day. Eliminating debt from one’s life offers a relief that makes life bearable and this is what those looking to clear debt want to experience. With the rising cost of living, people who encounter emergencies or pressing needs are tempted to opt for credit to service their needs. With time, credit piles up and it turns out to be a monster that threatens their financial capabilities.

Settling credit with struggles emanating from cash flow could prove more challenging and this is the reason you need professionals to walk with you through the journey of liberating yourself from the yoke of debt. Although some people prefer negotiating settlement terms without involving settlement professionals, here are some of the benefits you will enjoy for working with a debt settlement company to clear debt.

Negotiating settlement terms is not easy

Creditors are more interested to hear when you will be clearing the debt you owe and in rare situations will they care to know if you are doing well or not. In cases where you have challenges raising the amount proposed, negotiating for a lower amount could prove challenging if you are not skilled on debt settlement. However, debt settlement companies like Nationwide Debt Reduction Services have experts who have worked in this field for many years.

They can easily convince creditors to give you better terms, so you will not need to endure the stress that comes with negotiating. Most of these settlement companies are also popular and have good relationships with creditors, so chances are their involvement in the negotiation process will allow you to get bearable rates that can help you in the settlement process.

Debt collectors cannot play games with a skilled negotiator

Debt collectors sometimes use dubious methods when collecting debt from defaulters, and this leaves you at a worse state. A debt settlement expert understands how everything works and is less likely to be subjected to the same treatment as someone who lacks the experience.

Therefore, working with a debt settlement expert assures you to receive accurate and honest rates. The expert can negotiate and spot irregularities that could make the burden heavier for you. Most importantly, a debt settlement expert can negotiate with creditors to minimize or stop harassment, which gives you peace of mind to pursue the settlement process. All these things cannot be achieved by someone who has never worked in the debt settlement industry before.

Debt settlement companies can access “scouting reports”

Another benefit that you will enjoy when you choose to settle debt through settlement professionals is that they are able to access vital reports from credit card companies. This information is rarely made public, so you cannot have the right figures unless you consult with debt settlement experts or collection agencies.

Each credit institution offers a unique settlement procedure and you can only have this information after choosing to work with a debt settlement company. Having experts to guide you in this process makes things easier and allows you to clear debt within a shorter period of time.