If you are in the market for your first home, an FHA loan may be on your radar. It is an excellent option if you don’t want to put a massive down payment on your mortgage. 

Who is eligible for an FHA loan?

The FHA loan is a type of mortgage that is insured by the Federal Housing Administration. This type of loan allows the borrower to finance their home with a minimum down payment of 3.5%. An FHA home loan is especially popular among those who are looking to purchase their first home. In order for a person to be eligible for an FHA loan, the borrower has to meet specific lending guidelines. These requirements are as follows:

• The borrower must have a FICO score of between 500 and 579 (105 down), or
• A FICO score of 580 or higher (and 3.5% down)
• Employment history for the past two years (must be verifiable)
• Debt-to-income ratio (including the mortgage) of less than 43% of the person’s gross monthly income
• No bankruptcies over the period of the last two years
• No foreclosures for the past three years
• The property needs to be used as the primary residence of the homebuyer

Do FHA loans have income limits?

There are no income requirements or limitations for getting an FHA loan. When it comes to the minimum amount that is required, the regulations of the FHA loan are more focused on the person’s ability to afford the loan, and the person’s debt-to-income ratio, their job, and income verification, repayment history on financial obligations, the dollar amount of applicant’s gross income. 

This means that the FHA loan rules dictate that it is not impossible to earn “too much” in order to get an FHA loan. These loans are for any qualified borrower and not just those applicants who are not able to afford conventional home loans. Since there is no income ceiling, the borrower does not have to worry about the income limitations of an FHA loan. 

Related: How to Buy a House

What disqualifies a house from an FHA Loan?

While it is easy for applicants to qualify for an FHA loan, there are some issues that may be flagged during the initial FHA approval. For instance, a home that is too expensive will not qualify for an FHA loan. This is because the annual limitations that are established by HUD vary by area and the number of units. The FHA is only able to insure up to that limit. In other words, an expensive home with a 3.5% standard down payment could require a loan amount that exceeds the limit. 

Also, the following are some of the issues that may be flagged during the FHA approval that can disqualify the home for an FHA loan:

• Houses built before 1978 with peeling paint. 
• Houses with bedrooms without windows or a secondary egress point.
• Safety-related concerns.
• Issues with the property’s electrical system.
• Installed electrical or plumbing systems.
• A leaking, damaged or rotting roof.
• Water that’s standing in the basement or anywhere else in the house.

It is important to note that these are not the only issues that may be flagged during the FHA approval of the property, but rather, some of the most common issues that are normally flagged during the FHA approval.. 

Note: FHA loans are not for vacation properties or investment homes. Another issue that may be flagged is if it’s a condo, and as a result, is not on the “approved” list. 

What is the downside of an FHA loan?

While there are many benefits to getting an FHA loan, there are also some downsides. Some of which may make it a bad option for some people, which is why it is important for you to know what you’re getting into. 

Mortgage Insurance Premiums 

The first downside of FHA loans for many borrowers is the high MIP. Borrowers have to make an upfront payment of 1.75% of the loan amount along with the annual premium, which amounts to .85% of the loan. 

Limitations 

Another disadvantage of getting an FHA loan is the limitation of how much an applicant is able to borrow. These limitations are increasing in all areas of the FHA loan, which does not offer the freedom that borrowers expect when getting an FHA home loan. That being said, the number of limitations is still lower as compared to conventional home loans. 

Varied FHA Loan 

The limit of the FHA loan varies depending on the location of the property, as well as the city and state, which can result in lower or higher rates for the FHA home loan. 

Minimum Property Standards 

Another downside of getting an FHA home loan are the minimum property standards. This may keep a borrower from being able to purchase the home that they want. The minimum property standards that are enacted by the FHA home loan is meant to provide protection to the borrower from purchasing any property that is in disrepair and could be dangerous to live in. On the other hand, these limitations tend to be burdensome to some borrowers, especially if they are looking to get a loan to purchase a home that does not meet the FHA’s minimum property standards. This also means that buyers cannot take a small FHA loan to buy a fixer-upper and carry out repairs later.

How long do you have to be at your job to qualify for an FHA loan?

One of the questions that borrowers ask when it comes to an FHA home loan is, “How long do I have to be at a job to qualify for the FHA loan?” According to the FHA guidelines, all borrowers need to show a work history of at least two years. This can be in any given field or industry but needs to be two years immediately prior to filing your application for the FHA loan. It is also possible for a borrower to qualify if they have worked in a field for less than two years, as long as they show any development in that specific field. 

Related: Is Buying a house for suckers?

The post Who is Eligible for an FHA Loan? appeared first on Dollar After Dollar.

If you are filling out a check for the first time in awhile, don’t worry we have your back. You may have questions such as where to sign, how to write out a check, and what the memo is for, or how to write a check with cents. Whether your check is $10, $100, or $1000, the practice is still the same. Here is an example of a perfectly written check for reference: 

1. Date the check 

The first step to writing any check is the date. You will need to make sure that the date is correct and correlates to the actual date the check is planned to be cashed. All checks contain a dedicated space to write down the data. This space to write the date is usually reserved at the top right-hand corner of the check. 

It is important to note that the date you use on the check should be the date at the time of signing and/or cashing in the check, or else it will not be accepted by the bank teller. It is common practice to post-date your check as in, writing a future date. This will not impact the check since it will be considered legal tender once it is signed. 

2. Write the name of the person or business you’re paying next to “Pay to the order of.”

The next step of writing a check is including the name of the person who will be receiving the payment. Here, you might ask yourself, “where do I write the name of the person who will be cashing the check?” In the section below the date is, “Pay to the order of.” Here you will write the name of the person or the organization you are paying the money to.

 The name you put down on the check can be an individual, organization, a school or trust, or any entity which has a bank account where you will be depositing the funds. Since this is the most important part of any check, it is important to make sure that you get the name right. This might not be a problem if you are writing the check to yourself, but if you are writing the name of another person, corporation, or entity, you will want to get the name correct. 

Also, when writing an individual’s name, be wary of writing the person’s nickname or abbreviations in the name section. 

3. Write the amount of the check in numeric format

The next obvious step to writing the check is including the amount. It is important to note that there are two areas in the check where you will be writing down the amount. Normally, the area just below the date is where you will be writing the amount of the check in numeric format (e.g., $200). This is usually given as a box where you will write the amount in numeric format. As standard practice, you will be writing the amount in numeric format starting from the left-hand side of the box. This is to prevent any attempts at fraud. It is extremely important to make sure you write the amount down correctly, so it’s easier for the bank or ATM to process and subtract the correct amount. If you live in the US, your bank check will already have the dollar sign printed on the outside of the box, so there will be no reason for you to write your own dollar sign in the box.

4. Write out the amount of the check in words

To avoid instances of fraud, you will also need to write down the amount in words. This is done in the line right below, “Pay to the order of.” Here you will write the amount in words that should match the amount you wrote in numeric format in the box. For example, if you wrote down $120 in the numeric format in the box, you will write, “One hundred and twenty dollars only.” 

If you will include cents, then you should write the whole amount along with “and {amount of cents} only.” For example, if you have written $120.15 in the box in numeric format, you can either write “and 15/100” in letters or “and fifteen cents.” Both will be acceptable. You can even write the cents numerically. For example, “one hundred and twenty dollars and 15 cents.”

It is important to note that for checks that are under a dollar, you will need to write “zero dollars” and include the amount of cents only. 

The reason why you need to make sure you write the correct amount on the check in words as well is because writing down the amount to be paid in words enables the bank to process the check since it confirms the correct total of the payment. 

5. Sign the check

The final step to writing your check correctly is to add your signature. You should sign your name since you are the person paying the amount that is given in the check. Your signature should be added at the bottom right-hand side, where some checks have “signature” printed. 

It is important to only sign the check once you are sure that all of the information given in the check is correct, and that the numerical value of the amount is exactly that of the amount written in words or vice versa. While signing your check, it is important that you sign as you usually do any legal document. 

One of the mistakes that people writing checks for the first time make is not writing the exact same signature that you had written at the time of creating your account. This can be a problem for some folks who tend to change their signature often so make sure you use the exact same signature as you did at the time of creating your bank account. This is so that the signature will match the one in the bank’s record, which will appear on the screen once the bank official enters your details. 

6. Use the memo to write a short note on what the check is for

Besides the space for your signature on the left-hand of the check is a line titled “Memo” or “For.” This is an optional component of writing your check and is pretty self-explanatory. This section is where you will include any additional information, if necessary. Such as what the payment is for. You can write “monthly rent” or “electricity bill” and even your social security number if you are paying the IRS.

The post How to Write a Check: A Step by Step Guide (With Examples) appeared first on Dollar After Dollar.

The Steps to Buy a Vanguard Index Fund 

You can invest through the 401(k) provider as well as choose any of the two following options:

• Purchase directly from Vanguard
• Open a brokerage account 

You will need to decide which account type to choose from, such as a taxable, traditional, or Roth IRA account. You will have to look at different index fund portfolios and depending on how much you want to invest and whether you would like to make additional monthly payments, you can choose the index fund you want to go for. 

There are also plenty of other solutions that make it easier for the average investor to buy index funds. M1 Finance is one such innovative solution where you can build a custom portfolio by picking ETFs and stocks according to personal preferences. You can set up target allocation for every security. Through intellectual automation and fractional shares, M1 invests your money. This allows you to capture the full potential of your money in an easy and simple way. 

RELATED: What is An Index Fund?

How to Open an Account at Vanguard?

To open your Vanguard account, as discussed above, you have to follow the steps below: 

1. You have to decide which funds you want to buy. You can take advice and help from Vanguard to make this choice. 
2. After selecting the funds, you have to choose a type of account based on the savings goals you have in mind. 
3. You can open your account online in 10 minutes with as little as $1,000/ 

M1 Finance works even more simply and with fewer costs. M1 works commission-free since the beginning, something Vanguard didn’t do until 2020. M1 doesn’t have any service fees, but Vanguard has a $20 fee. M1 also offers fraction shares, checking accounts, tax minimization, and automated rebalancing. Out of all of these amazing features, Vanguard only offers automated rebalancing to high-value accounts. 

How to Select an Index Fund at Vanguard?

Vanguard offers more than a hundred ETFs and index funds that you can choose from. Depending on the portfolio mixture and the amount you can spend on fees and minimums, you can choose any of the following funds.

• Vanguard 500: The S&P 500 was the first index fund that gave average investors access to the top 500 companies that hold 75% of the total value of the stock market. The minimum investment is $3000, and the expense ratio is 0.04%. 

• Vanguard Total Stock: This fund gives you access to the entire equity market of the US. The minimum investment is $3000, and the expense ratio is 0.14%.

• Vanguard Total Bond: You will have access to all the investment-grade bonds in the US with 70% government and 30% corporate bonds. The minimum investment is $3000, and the expense ratio is 0.15%.

• Vanguard Balanced: This index fund is a mixture of 60% stocks and 40% bonds to ensure balanced growth and stability. The minimum investment is $3000, and the expense ratio is 0.19%.

• Vanguard Growth: This index fund uses a buy-and-hold method for the stocks in large companies within sectors that have large potential for growth. This includes industries like financial, consumer, and technological services and products. The minimum investment is $3000, and the expense ratio is 0.17%.

• Vanguard Small-Cap: This index fund is for small publicly-held companies. It is aimed at investors who want to diversify away from large companies. The minimum investment is $3000, and the expense ratio is 0.17%.

To narrow down the choice among these different Vanguard index funds, you can chat with a financial advisor or do the research yourself. You can customize your portfolio based on your understanding of the market. Some people also prefer investing in an all-in-one fund since you can invest in many different areas through a complete portfolio. 

How to Buy an Index Fund?

Here is how you by an index fund through any brokerage platform:

1. Decide what you want to buy
2. Choose an index based on capitalization and company size, asset type, industry, market opportunities, and geography. 
3. Check on registration costs and minimums 
4. Open a brokerage account 
5. Purchase index funds from brokerage firms. 

Does Robin Hood Have Vanguard Index Funds?

Vanguard is famous for offering its ETFs, mutual funds, and index funds commission-free. But they do have a wide variety of third-party brokers that you can purchase their funds from. They have negotiated agreements with such brokers to make some of their funds available for purchase without commissions. Others still come through particular broker fees. 

If you are looking to invest through Robin Hood, you can buy popular Vanguard index funds. They don’t take commissions on many index fund portfolios like the S&P 500. 

What is the Cost for Vanguard Index Fund Shares?

Investors need to make a minimum investment initially, around $3,000 to$10,000. The annual costs to maintain the fund also need to be paid. This is known as the expense ratio, which is based on a percentage of the cash you have invested in the fund. There are two main types of Vanguard index funds that you can invest into. Depending on the one you choose, you will have to pay different amounts in upfront and annual fees. Here are the two shares and their cost.

Admiral Shares

• The minimum upfront cost is a minimum investment between $3,000 and $100,000. 
• The average expense ratio is 0.11%.

Investor Shares

• The minimum upfront cost is a minimum investment between $1,000 and $3,000.
• The average expense ratio is 0.18%.

The post How to Buy Vanguard Index Funds appeared first on Dollar After Dollar.

Acorns has turned the age-old saving loose change into a piggy bank into a modern, efficient, way to invest your change. It allows you to round up your purchases and invest the change. For example, if you spend 22.47 on groceries, Acorns will add $0.53 to your investment account.

It is a fantastic option for anyone who struggles with savings or just wants another way to invest more money.

Sign up here and get $10 to invest!

What is the Acorns App?

Acorns is a Robo-advisor app with automated savings, which makes it easy to build wealth. It has modernized the practice of saving up any loose change. By rounding up the purchases you make on any linked debit or credit cards, any sweeping change is turning into an investment portfolio made by intelligent software. This is a useful tool for people who want to save more. 

How Does Acorns Investing Work?

Acorns works by giving you a platform to invest any spare change you have. You can set aside leftover change from the purchases you make every day through an automatic round-up function. Acorns also help you save up for your retirement account. Acorns also work to grow your knowledge since the platform has thousands of videos and articles from financial experts. 

Acorns Fees and Pricing

The fees are the downside to investing in Acorns. I am never an advocate of investing in platforms with high fees. But, if the app helps you invest more money, than the fees may be for you. Acorns have three-tier sign-up structures, but each of the levels is pretty cheap.

Lite

Acorns Lite only costs $1 monthly and allows you basic functions to grow knowledge, earn bonuses, and invest spare change. It gives you access to the Invest feature in Acorns. You can earn bonus investments from the 350+ partners from Found Money. 

Personal 

The personal account costs $3 monthly and is a great platform to make investments, save for retirements, and checking. It comes with money advice, bonus investments, and a debit card. 

You will have access to three key features: Invest, Later, and Spend. Invest allows you to set up an investment account to build your wealth. Later helps you earn tax advantages and save for retirement. It even updates frequently according to the goals you have set up. Spend is a checking account that allows you to save money without any account fee. You will even get reimbursed for ATM fees and earn around 10% more in bonus investments. You can even invest automatically through retirement or investment accounts. 

Family 

The Family account charges $5 a month and has investment accounts for your children as well as personal investment, checking accounts, and retirement savings. Other exclusive content and rewards are also offered. 

You will have all the features of Lite and Personal as well as access to the Early account. This is an investment account for kids that you can open in just 3 minutes. You can have different accounts without any added costs. Multiple recurring automatic investments can be made at the press of a button. You will also receive financial advice for the whole family as well as exclusive bonus investments. You can also get access to potential tax savings as your children grow. 

Acorns Pros and Cons Review

Pros

Automated Approach 

Any tool that allows you automatic saving should be applauded. If you don’t have to think about saving all the time, you will be more likely to save. Acorns takes any excess change from the purchases you make on your linked cards automatically and forms an investment portfolio from it. You can connect as many cards as you prefer on it. Every purchase you make is rounded up to the nearest dollar, and you are given the option to transfer it to your investment portfolio. 

You can even keep this option automatic without manually approving every transfer. While these round-up changes remain the biggest reason people turn to Acorns, you can also invest lump-sum amounts. You can set up recurring deposits on a monthly or weekly basis or manually invest. Such transfers can be as small as $5. 

You can also open up your Acorns Spend account that comes with a debit card. You can easily access your funds through it and even get reimbursed for any ATM fees that occur. You don’t need to have any minimum balance in the account either. 

Minimum Investments 

The best part is that you don’t need huge amounts of capital to invest. You can go ahead with a basic $5 balance to invest in any of the five portfolios offered by Acorns. This makes it easier for the average investor to build wealth. 

Found Money 

The investment portal allows you the chance to invest through someone else’s money too. The Found Money program is based on building a nice investment portfolio without using any of your own money. Acorns has partnered with 350 large companies, including Nike, Sephora, Airbnb, Walmart, and more, to hand you cashback when you use linked payment methods with any of the partners. You can get your cashback automatically without worrying about additional steps.

 All you need to do is to use a card that you have linked with the Acorns account for a purchase. The Found Money reward will be reverted to your account in 60-120 days. 

Educational Content

If you are a new investor, you will definitely appreciate Acorns. It is well-suited to beginners who may not be aware of financial terms and languages. Hence, the app uses clear language and defines any key terms so that you can keep up. 

The Grow magazine by Acorns is also a great resource for people who want to learn more about credit card debt, side gigs, student loans, and pretty much any other financial topics. 

Cons 

Portfolios Are Small 

Acorns like to take the reins when it comes to portfolio building. It takes into account data like your goals, income, age, and time horizon. Then it recommends you one of the five pre-made investment portfolios. You can take up the recommendation or go for a different portfolio that has less or more risk. 

The portfolios are small than many robo-advisor portfolios. They include low-cost Vanguard or iShares exchange-traded funds. They cover around five to seven asset classes include small-cap stocks, large-cap stocks, real estate, emerging markets, and government and corporate bonds. 

How to Fund Your Acorns Account 

One thing that you can do is simply link up your credit and debit cards to the Acorns account. Every time you make a purchase, it will ask you whether you want to transfer the change into the investment account of Acorns. You can also automate it so that you don’t have to give your manual approval each time. 

If you want to transfer more funds into the account, you can follow these easy steps: 

1. Select the Invest tab from the main menu of your Acorns application. 
2. Select the account you want to deposit in. 
3. Scroll down and choose the One Time Investment option. 
4. Confirm the investment. 

You will see that the funds are transferred in 2-3 days. You can also set up recurring investments on a monthly, weekly, or daily basis. 

What does Acorns Invest Your Money In? 

There are 5 basic portfolios offered by Acorns that are made of ETFs. They are a mixture of bonds and/or stocks. Depending on which portfolio you choose, you will be investing in a mixture of companies, including bonds, real estate, markets, and companies.

Sign up here and get $10 to invest!

The post Acorns Review: Automatic Investing And Banking appeared first on Dollar After Dollar.

It happens to all of us. You are busy at work, home, or with the kids. The month flies by and you forget to pay your credit card bill. You feel a rush of anxiety, and run over to your computer to pay off your bill. The question lies in the back of your head.  Will your credit take a hit?

How much does one late payment affect your credit score?

One late payment will have an impact on your credit score. Typically, it can drop 60-100 points. This is because your credit history makes up 35% of your credit score. But, there is good news. Credit card companies usually won’t report a one late payment until it is 30 days past due. So it is extremely important to pay your late payment as soon as possible. So if you can pay off that one payment before that 30 day mark, you may just have to pay a late fee to the credit card company. 

How long does a 30-day late payment affect your credit score? 

Late payments should be a matter of great concern for anybody who wants to maintain a clean credit score. Making late payments can, without a doubt, have a negative impact on your credit score and can even affect your overall ability to take out a loan or mortgage in the future. 

While there are penalties that have been set up by lenders for those who make late payments, if you were unfortunate enough to make a 30-day late payment, then you will have that late payment record sitting on your credit report for up to 7 years. The negative impact of that on your credit score can be tremendous long term. This is why it is so important to avoid debt. 

A late payment, which is also known as a ‘delinquency,’ will normally fall off a credit report after seven years from the date of the delinquency. If you do not bring an account now, then the creditor is going to close it and charge off the debt before sending it to collections.

How long does it take to improve credit score after late payment? 

If you have a late payment, it is still possible to improve their credit score in a matter of weeks. In most cases, some of the ways by which you can improve your credit score are: 

• Disputing any errors that are present on your credit report
• Paying down your credit card debt
• Paying off collections accounts to improve your credit score

When it comes to improving your credit score after late payment, the answer varies depending on your situation. 

For instance, some people look to improve their credit score after making minor mistakes, maxing out the spending limit, or missing payments. 

Others find themselves having to deal with other serious issues, such as bankruptcy. If you’ve missed a credit card payment, then the average recovery time that you could be looking at is 18 months. You can also expect significant damage to your credit score. 

This is why you should always be working toward improving your credit score, especially since your credit score is constantly changing based on the latest information in your credit report. While you cannot expect to get the highest credit score, it is possible to maintain a good credit score after a late payment. 

Does a 1-day or 2-day Late Credit Card Payment Affect My Credit Score?

A 1 or 2-day late payment is not going to have a significant impact on your credit score. A late payment is not going to be reported to the credit bureau until after a full 30 days have passed. When that happens, it could also trigger a loan default, which is why a 30-day late payment should be avoided at all costs. 

Mortgage Late Payment 

Mortgages and other loans usually have a grace period of a few days or a week, so be careful and read the fine print. 

Credit Cards

When it comes to credit cards, a late payment can trigger a penalty if you are late by just one day. The penalty that you will get for being late the first time is not going to be substantial and usually you have to pay a late payment fee. However, if you miss subsequent payments over the next billing cycles, then you should expect to pay more, and it goes without saying that this will also negatively affect your credit score in the long run. 

Can a Lender Remove a Late Payment? 

It is possible for a lender to remove a late payment, but that can only happen if you request it. 

To get your late payment removed, all you have to do is ask the lender to remove the late payment with a Goodwill Adjustment Letter. This is considered to be the easiest way of getting a late payment removed from your credit report. 

To get the process started, all you have to do is write a letter to the creditor and explain your situation and the reason for the late payment. Once you’ve started your reason, you can then ask them to forgive your late payment. It will then be up to the creditor to choose whether they want to remove your late payment or not. 

While this may seem like a long shot, this method usually works, especially if you assure the creditor that you will not make a late payment in the future. 

Will one late payment affect me getting a mortgage? 

A late payment is going to have a negative impact on your credit score, but the severity of the score drop is ultimately going to depend on the type of credit score you have and your credit profile. 

When it comes to getting a mortgage, making one late payment (that does not stay late for longer than 30-days) is not going to have a negative impact on your credit profile. Neither will it weaken your ability to get a mortgage. That being said, whether or not you can get a mortgage after late payments will all depend on multiple factors, such as how delinquent you are when applying for the mortgage, as well as your overall credit history. 

Those who have a strong credit history will fare better at getting a mortgage despite making a few late payments. That said, it is likely you are not going to qualify for the best rates or terms even if you do get a mortgage. 

Your payment history is going to be the main determining factor when it comes to getting a mortgage. If you made multiple late payments in the past year, then you can expect lenders to offer you a mortgage with a higher interest rate and a higher down payment.

 This is why it is so important to make sure that your payments are on time – as if you have a string of late payments under your belt, it’s going to have a massively negative impact on your overall credit score. 

Conclusion 

Going forward, the best thing to do is make sure you pay your bills on time. One of the easiest ways to do this is set up automatic payments to your credit cards each month. This will allow you to pay off your credit cards without having to think. If you are struggling to stay current, try setting up a budget each month so you can track where your money is going. 

The post How Much Does One Late Payment Affect Your Credit Score? appeared first on Dollar After Dollar.

Improving your credit score is one of the pillars of personal finance. Maybe you want to buy a house or car and need to improve your credit score to ensure you get the best interest rate possible.

Or, maybe you need to improve a credit score that is a little lower than you like. Taking steps to improve your credit score today will benefit you forever. We are going to show you how to improve your credit score and why you may want to start working towards a better credit score today.

How Long Does it Take to Improve Your Credit Score by 100 Points?

The biggest factor is your starting point and individual history. Some people have been able to improve their credit score in 6 months. For someone with a lower credit score, this time horizon is possible. Others may take 24-36 months. Your individual history matters.  

If you are diligent in working to improve your credit score by recognizing errors in your credit report and getting it corrected. Or paying off your debt, deleting negative items, and most important of all, making timely payments, then you can significantly improve your credit score. 

Surprisingly, improving one’s credit score is not always a priority for many people. Unless, they need to increase a few points of the credit score so that they can qualify for a loan. If you have found yourself in a similar situation and are looking forward to getting a better interest rate, then taking the necessary steps to ensure your credit score is bumped it will be worth your time.

There are a number of days you can improve your score. There is really no way of knowing or predicting just how soon your credit score is going to improve, and by how much. Nevertheless, those who want their credit score to increase can try a few ways to make that happen within the least amount of time. 

How To Increase Your Credit Score by 100 Points in 6 Months?

Many people do not know this, but it is not difficult to improve your credit score and get it back on track in as little as six months. That’s right. The truth is, you can boost your credit score up to 100 points in just about no time, provided you follow the right steps. 

Pull Your Credit Report

The first thing that you will need to do is pull your credit report and examine it closely. Try to find anything that is suspicious or something you do not recognize. For instance, if you are faced with an issue of ID theft, then contact the appropriate enforcement agency and get it sorted out. 

Also, pay attention to how much credit you are using on your different accounts. This is known as the debt utilization ratio and is an efficient way of improving your credit score. The trick is to keep your credit usage of all your credit cards less than one third. 

Pay Down Debt

Now, be aggressive when it comes to lowering your debt utilization ratio, as in, pay down your balances. A great way of doing this is to get what is called a consolidation loan, which is far better at bringing down your utilization ratio as compared to sending off large checks. While you will still have the same amount of debt, it will be in the form of an installment loan instead of a revolving account. It should also be noted here that a consolidation loan may not be available for those who have a credit score that’s lower than 620. 

Address Any Errors in Your Credit Report

If you do not owe the money, you should send a letter to ask the company to prove you owe the money. The good news is, you do not have to read books on federal law; all you have to do is ask. Call up collection agencies to try and get a settlement on the collection. You can also assure them that you will pay off the money you owe if they will remove the collection from the credit report. Also, try to get any late payment notices removed as well. 

Can You Improve Your Credit Score by 100 Points in 30 Days?

The short answer is – yes. It is very much possible to improve your credit score by as much as 100 points within 30 days, give or take. Much like how you would work to improve your credit score in as less as six months, you will need to do the following steps: 

Step 1: Get a copy of your credit report 

You can pull a copy of your credit report for free from a number of credit card providers. You can also do this at credit karma or any other credit reporting website.

Step 2: Find any discrepancies or negative accounts 

Look through your accounts and complete your due diligence so you can ensure you are ready to work towards improving your score.

Step 3: Dispute any credit inquiries 

Call your credit card provider and dispute any credit inquiries.

Step 4: Pay off your credit card balance

Make sure you pay off your credit card balance in full. This is extremely important.

Step 5: Contact collection agencies 

Remember, you do not have to pay if a collection agency does not remove the account from your credit report

Step 5: Remove late payments 

Step 7: Get added as an authorized user

How Much Will Paying Off Credit Cards Improve The Score?

If you are able to pay off a credit card balance, you can help to not only improve your credit score, but you can also improve your credit utilization ratio as well. This is extremely important for people to understand since not many people know that the credit utilization ratio makes up for around 30% of your total credit score, which makes it a very important factor, and reason enough for you to pay off all of your credit card balance. 

The credit utilization ratio is an indicator of just how much of your available credit you are using at the moment. The credit utilization ratio should always be at 30% or below if you want it to help your overall credit score. For example, if you have an outstanding balance on your credit card of $4,000 with $10,000 as your total line of credit, then you will have a credit utilization ratio of 40%. That being said, it is also possible for a person to have more debt but still have a lower credit utilization ratio. 

Regardless of your scenario, if you find that you’re carrying a credit card balance, then it is always best to pay it off as soon as possible to improve your credit score. Paying off your credit card balance does not only mean getting a better credit score but also lower interest rates. This means you pay less in the long run. 

The post How Long Does It Take To Improve Your Credit Score By 100 Points? appeared first on Dollar After Dollar.

I was recently talking to a group of friends having some freshly brewed Florida IPA’s. One of them posed the question “I wonder how much money I have spent in my lifetime on alcohol?”

It is one of the oldest bar discussions in the book. “I would be a millionaire if I stopped drinking booze” Or, “I wonder how much money you would save if you stopped drinking alcohol.”  

Well, my friend, you are in luck. We are going to solve this mystery together once and for all. So kick back with your favorite drink of choice, this may sting a little bit. 

Because taking into account how much you can save is fine. The question really is, what would happen if you invested all the money that you spend on Alcohol. 

How Much Would you Save if you Stopped Drinking 

Drinking can be an expensive hobby. In fact it can cost you 7-figures over your lifetime if you are not careful. But, it is not just the drinking costs that you want to consider. 

Think about all the UBER’s you take because of drinking. All the dinners and fast you buy after a night out. There is a compound effect to alcohol that can add up! 

Taking into consideration that would invest this money with an 8% return, here is how much drinking can cost you: 

You Spend $50 a month on alcohol (The Stay at home drinker)

The stay at home drinker is known to grab a 6-pack at the liquor store and throw back a few while watching sports or a movie. Or, it can be a casual drinker who only has a few drinks per month. They may have a beer/glass of wine when out at dinner but never get too crazy. 

Spending $50 a month is still nothing to sneeze at. Over the course of 30 years, you will forgo $70,427. Over the course of 40 years, you will have spent $161,000!

You Spend $100 a month on alcohol (The Stay at Home + Occasional bar Drinker) 

The $100 a month drinker spends the majority of their time having drinks at home but may head out to the bar once or twice a month with friends. It doesn’t take a huge amount to hit $100 a month. If you think you don’t fall into this category because you only have a few drinks a weekend, you may want to check your bank statement. Two bottles of cheap wine a week can get you to $100.

If you spend $100 a month on alcohol you will have lost out on 214,256.00 in 30 years. In 40 years, you would have lost $322,107.93. This is the power if small amounts of money are saved and invested over a long period of time. 

What if you spent $150 a month on alcohol (The Bar/restaurant Drinker) 

Spending $150/month on alcohol is easy to do if you drink outside of the house. As we know, restaurants make a large percentage of their profits on alcohol. Having a few drinks on a date every weekend will easily hit this mark.

If you spend $150 a month on alcohol you will forgo $211,282 in 30 years and $483,161 in 40 years. In 40 years, we are now approaching half a million dollars. 

The $250 a month drinker (The Fancy Bar/bottle Drinker) 

The $250 a month drinker more than likely likes fine wine and spirits or frequents the local martini bars. Spending this much every month has a real impact over the long run. 

If you spend $250 a month on alcohol, you will lose $352,137 in 30 years and $805,269 in 40 years. This is a huge jump as you can forgo almost a million dollars! 

The $400 a month Drinker (The Clubber) 

The $400 a month drinker is a high roller.  They love to fistpump in the club. They are out every weekend, buying extremely overpriced drinks for their friends. They are just having a good time. They live for the now instead of the future. 

Think about the club scene for a second. One drink can cost anywhere from $8 – $15. That means you have about 8 drinks a weekend to hit $400 a month. If you are buying drinks for friends, this can be even more!  Once you see the numbers, you may want to cut back on spending that kind of money on booze. 

If you spend $400 a month on alcohol, in 30 years you will have spent $563,423. In 40 years, you will have spent $1,288,431 on alcohol! 

Tips to Cut Back Spending on Alcohol 

There are a few ways to cut back on spending money on alcohol. When looking at the average price of an alcohol in each state, you can see why many people may be spending too much. Here are some tips to reduce how much you blow on booze:  

Drink Less 

Having a large number of drinks is not the best for you. That being said there is nothing wrong with having a few a week. If you find yourself spending a massive amount, set a limit for yourself. Setting parameters allows you to still enjoy alcohol without all the negative side effects. Allowing yourself no more than 2 drinks a day, or 6 drinks per week will allow you to control your consumption. Another hack would be to drink every other week, or only allow yourself to drink socially.  

Drink at Home 

Drinking at home is much cheaper than drinking at a bar. In fact it is about 80-90% cheaper. Take a beer for example. At the bar, it will cost you $5-$7. Where if you have a beer at home, it will cost $1-$3.  If you are going to drink on a weekly basis, you are better off drinking at home the majority of the time. 

Stop Buying Rounds for Friends 

Buying drinks for friends can be fun at times. But, buying rounds consistently can put a big dent in your savings. One round of 5 drinks can cost you anywhere from $30- $60. Doing that once a month would cost you 6 figures in retirement! It’s not worth it. 

Never Buy Shots at Bars 

Shots are expensive. They usually come in groups of friends and are never worth the cost. A round of shots can easily cost the same as a round of drinks and they are done in one second or less. 

Go to Happy Hour 

Happy hour is always cheaper. They are filled with 2 for 1’s. Now your $5 beer costs 2.50. Why not get the same thing for half the price? It is the best of both worlds. 

Balance is Key

I am in no way saying to cut out alcohol. There is nothing like having a nice glass of wine after a long week to relax. But, being mindful of how much we spend will allow you to save more so that you can retire with a much larger nest egg. Maintaining a balance with how much you drink is beneficial for your health and wealth.

The post How Much Money Would You Save if you Stopped Drinking Alcohol appeared first on Dollar After Dollar.

The HSA is one of the most amazing, efficient, and effective places to save your money for retirement. The irony is, it’s not even a retirement account! It has mind-blowing benefits that are fantastic for those who qualify. 

As you will soon see the HSA is the most powerful savings account because it has triple tax savings. Let’s dig into the massive tax benefit of this super retirement account. 

What Is A Health Savings Account (HSA)? 

An HSA is simply a savings account. Yet it can do so much more than regular savings account that you open at your local bank. 

Think of a normal checking or savings account but with a slew of benefits.

To qualify for an HSA you must have a high deductible health plan. People who have high deductible health plans will face high out of pocket costs, due to their higher deductibles. So, the government provides tax incentives to motivate people to actually save for their health expenses. 

If you are unfamiliar with high deductible health plans, don’t worry, I’ve got your back. 

High Deductible Health Plan (HDHP) 

To reap the amazing benefits of an Health Savings Account, you must have a High Deductible Health plan (many times called an HDHP). 

If you don’t know what a deductible is, let me break it down simply. It is the amount of money you have to pay out of pocket before your insurance kicks in. 

For example, if you have a $2,500 high deductible health plan, you must pay $2,500 out of pocket first, before your insurance will pay the rest. 

You may also hear other terms thrown around like a premium. Your premium is not the same as a deductible. Understanding your premium is simple, it is just the amount you pay each month for your health insurance. 

Your premium in a HDHP will be lower since the deductible is higher. 

A high deductible health plan may not be for every person, in every situation. But it can make sense for a lot of people. If you have no earthly clue whether or not you have an HDHP, just reach out to your HR department (or insurance rep if you are self-employed) and they can tell you. 

How Most Retirement Accounts Work 

Most retirement accounts have great tax benefits and you should definitely be taking advantage of them. But none can compare to the HSA. Let’s take a look at why that is.

The 401(k) or Traditional IRA Tax Benefits

The 401(K) or traditional IRA are pre-tax contributions. This means that these accounts allow you to contribute without paying taxes on those contributions.  

For example, if you make 100K per year, and you contribute $10,000 into a 401(k), then the government only considers you making $90,000 that year.

That’s not all folks. When you invest your money in these accounts, it also grows tax-free. Another massive benefit! 

Here is how it looks visually: 

The ROTH IRA Tax Benefits 

The Roth IRA is slightly different than the 401(K). With a Roth IRA, you pay taxes as you contribute to your account. But, this money grows tax-free, and you do not have to pay taxes when you take the money out. 

This means you can watch your pile of money grows without paying taxes. So if you make $100,000, the IRS will still consider you making a hundred grand if you contribute to a Roth. But, you can pull that money out (at age 59.5) tax-free. 

Health Savings Account (HSA) Tax Benefits 

For the HSA we have the best of both worlds. What most people do is they contribute to their HSA as a savings account for their healthcare. That is all fine and dandy. But, I want you to ignore the healthcare part since we are trying to optimize our tax savings.

We want to go against the grain and find those financial hacks right? 

The HSA allows you to contribute to your account tax free, it grows when invested tax free, and you can withdraw the money tax free! This is a triple tax savings! 

The best part is, you can take this money out whenever you want. You don’t have to wait for retirement to or pay a penalty like the Roth and 401(k).  

As long as you have a qualified medical expense after the account was opened, you can pay yourself whenever you want. That means the money you contribute to your HSA is yours forever. 

HSA Contribution Limits

For the year 2021, the HSA contribution limits are $3,600 for someone on an individual plan. If you are on a family plan the contribution limits for 2021 are $7,200. 

If you have any family members (husband, wife, children, other dependents) on your plan, you will more than likely qualify for the family plan contribution. 

Delaying Your HSA Distributions For the Future 

There is no rule as to when you need to pay yourself for a medical expense with an HSA. You can defer all your medical expenses until a later date. Then, reimburse yourself whenever you retire (or whenever you want). 

The key here is to make sure that the medical expense occurred after the account was opened. If it was not, then that expense will not be eligible. 

The HSA Tracking System 

To put this system into a place you must be organized. Keeping track of all your medical receipts over time so that you can reimburse yourself can be tedious. That is why keeping digital copies is the best system. Here is what I do: 

1. Receive medical bills or receipts.
2. Scan it into my computer/mobile app with my phone.
3. Save the receipt in a cloud service like OneDrive or Dropbox. This allows you to ensure that you can access the receipts wherever you go.
4.  Add the date/amount to a spreadsheet to track my total. The spreadsheet keeps a running total so you know how much reimbursement you have available. 

How Much Can My Health Savings Account Grow?

The amazing thing about your HSA is that you can invest the money you contribute. Let’s say you max out your HSA for 30 years with a family plan. You invest in an index fund that returns 8% over those 30 years. At the end of 30 years, you will have $804,310.00. 

Or if you have an individual plan where you can invest $3,600.00 a year and invest for 30 years, you are looking at $407,819.56.

What if I have too Much Money in my HSA?

After you see how much your money can grow over time, you may be thinking to yourself, what if my bank roll is too big in my HSA when I am ready to use it? After all, that would take a lot of medical receipts.

Well, if you are a generally healthy person and do not have enough medical bills to cover the amount of money you have, first of all celebrate. Having too much money is a great problem to have. 

Secondly, don’t worry at all. The HSA will work just like a traditional IRA. The only difference is that your withdrawal year will move to 65 instead of 59.5. 

Just like the traditional IRA or 401(K), your money will grow tax free, then you will just have to pay income tax when you take your money out of the HSA (for any withdrawals that do not have a medical expense). 

So, your HSA is almost exactly the same as an IRA except all those medical expenses are tax free! 

Other Massive HSA Benefits 

There are a number of other benefits to an HSA including: 

Employer Match 

Some employers will offer an HSA match. As you know, I am a huge fan of free money, so make sure you take advantage of this. Ask your HR department if they offer this option. 

Contribute Through Your Employer or Payroll Deduction If Possible 

If you contribute through your employer via automatic payroll deduction, you can save on more taxes. This means that if you contribute right out of your paycheck you can save on social security and medicare taxes which is another 7.5%! 

Invest the Money 

Don’t let your money sit in an HSA without working for you. Make sure you reap the benefits of compound interest and consider investing in low cost index funds. Be mindful that you aren’t in some high fee actively managed funds that will eat away at your gains. 

What Qualifies as a Medical Expense by the IRS? 

Here a list of common medical expenses you can reimburse with an HSA. This is not an all-inclusive list. Make sure you check out irs.gov for the full list as it is always changing. Publication 902 and 569. 

• Acupuncture

• Alcoholism treatment

• Ambulance

• Artificial limbs

• Artificial teeth

• Breast reconstruction surgery

(mastectomy-related)

• Chiropractic services

• Cosmetic surgery (only if due to

trauma or disease)

• Dental treatment (X-rays, fillings,

braces, extractions, etc.)

• Diagnostic devices (such as blood

sugar test kits for diabetics)

• Doctor’s office visits and

procedures

• Drug addiction treatment

• Eyeglasses, contact lenses and eye

exams

• Eye surgery (such as laser eye

surgery or radial keratotomy)

• Fertility enhancements

• Hearing aids (and batteries for use)

• Hospital services

• Laboratory fees

• Long-term care (for medical

expenses and premiums)

• Menstrual care products

• Nursing home

• Nursing services

• Operations/surgery (excluding

unnecessary cosmetic surgery)

• (Certain) over-the-counter drugs

and medications

• Physical therapy

• Prescription medicines or drugs

• Psychiatric care

• Psychologist counseling

• Speech therapy

• Stop-smoking programs

• Vasectomy

• Weight-loss programs (must be to

treat a specific disease diagnosed

by a physician)

• Wheelchairs

• X-rays

The post The Amazing Benefits of a Health Savings Account (Super Retirement Account) appeared first on Dollar After Dollar.

A few years back I decided I wanted to invest in rental properties. 

I quickly realized that the best properties were scooped up before I could get my realtor to schedule a time and open the door. 

So, I decided to get my license. 

It would be a win-win for me. I make a little commission to put into fixing up the property and I am able to look at houses freely. 

I studied for a month, took the test, passed, and found a brokerage to hang my license under. 

The 100K Club 

Shortly after joining, my brokerage sent me an email about a free training they provided to all agents. They called it The 100k club. 

I had no interest in being a realtor. I was the finance guy who was just looking for an easy way to buy rental property. 

But I’m a sucker for catchy titles, and I watched the first video to see what it was all about. 

It took me about 10 minutes to realize the strategy they teach their agents is genius. 

In sales, you are dead if they don’t have leads. This was a way to get a whole page of leads in a day. 

The best part? It doesn’t cost them a dime. Just a little hustle. And it can be replicated anywhere, at any time. 

There were agents in the brokerage swearing by the strategy. 

I decided to try it. It worked. In fact, I made 20k last month selling real estate on the side. 

I work a full time 9-5, have a family, run websites, and have a podcast. This strategy got me started and allowed me a 20k month (on the side) without having to invest loads of time. 

Here’s how it works. 

How I Found Leads for Free

Leads are the lifeblood of the real estate industry. 

If you don’t have leads you are dead. So how can you find leads and work a full time job? 

Well, I found leads while working a full time job, running multiple websites, and managing another real estate investment business.

The key is finding the highest value activity for your time.

The strategy I use to find leads is not for the faint hearted. 

I made the leads come to me. The beautiful thing about this strategy is it takes actual work, which most people do not want to do. 

You can put in a few hours a week doing this one simple activity on nights and weekends and be 10 steps ahead of Realtors who just sit at home who did nothing all day but perfect their team logo.

So what did I do? 

I ran open houses. Not just any open house. The secret is to have bank owned open houses.

You mean the houses that are trashed and need renovation? 

That is exactly what I mean.

Why This Strategy Works 

When you have an open house, you are meeting new people. Guess what most of those people are in the market to do? 

Buy a house. 

As a realtor, you want to find people who want to buy a house. Many agents will pay thousands a month to Zillow for the same amount of people (leads) that you can meet on a weekend at an open house. 

If someone owns an ice cream truck. They want to go exactly where their customer base is, kids! 

That is why ice cream trucks play loud obnoxious music by playgrounds or through neighborhoods known to cater to families. Their customer is there. 

If you are not meeting people or potential clients, then you will never generate new business. That is your job. Meeting people and creating value for their specific needs and wants. 

You need to go where your customers are. Where your customers are is open houses! 

Many times, people walking through open houses are just starting to look. They do not yet have an agent. That is where you can shine by showing them all the great features and explain anything that they would need to fix in the house. 

You instantly are showing that you can be valuable as their advisor. It is the perfect stage to show your skills. 

Email Listing Agents 

The beautiful thing about this strategy, is that it is not location dependent. You can repeat this in any town, any county, or any state. There will always be houses for sale that have listing agents too busy, or too lazy to sit their own open houses. 

To get started sitting in open houses, you need to find a listing agent who will let you host their listing. Most likely, you will not yet have listings yourself (more on this later). 

To do this, log-in to your local MLS (multiple listing service) and search for bank owned foreclosures in your area. Get a list of 10-20 of them if you can. Target the newest listings and price drops first. They will have the most buzz. 

Then find the agents contact and email them. Most agents only care about themselves, so you want to make this a win-win proposal. 

The Pitch to Listing Agents 

Bank owned open house agents have to do a number of “tasks” that other listing agents may not have to do. An example of this would be taking pictures of the property. If someone wants to hold an open house for free and handle those tasks, it is a no brainer for a listing agent. 

Here is my exact pitch that allowed me to land open houses at a 20% rate. 

Good Afternoon (Agent Name),

I hope you are doing well. I saw you have a bank owned listing at (property address). I am looking to generate business and meet potential clients so I was wondering if we could create a “win-win” scenario for both of us. I know many people that have sat open houses at bank owned properties and I do know that your asset manager probably mandates certain tasks that you are required to perform each week. 

I would love to do an open house at this listing and would be happy to perform a “check” of the home, take photos, show evidence with a picture that I did an open house (in order for you to show your asset manager). I have learned that these open houses are a great way to meet clients, and also a way I can potentially help you.

I will follow up with a phone call and a text as well. My contact info is below. 

I look forward to seeing how we may be able to help each other meet our goals.

Dealing With Agent Responses

There is an old saying that Realtors are nice to everyone but other Realtors. That is definitely true in my experience. 

You may get rejected. Don’t get defensive or snarky. You may have to sit at the negotiation table later with that same agent. Do not burn any bridges. 

You may hear crickets. Follow up a few times. If you still receive no response then move on. There are so many open house opportunities that you do not want to waste time trying to grab the perfect property to sit. 

Eventually agents will respond that they would be happy to allow you to sit their listing. Schedule a time with the agent and ask if there’s anything they need done. 

I can not tell you how many job offers I have received from other agents because of the way I handled their tasks they needed completed. They are doing you a solid by letting you hold an open house, make sure you return the favor by saving them time and energy. 

How Long Should My Open House Be? 

You want to make sure this is something you will stick with. It needs to be sustainable. If you are a full time agent, I would literally sit open houses 9-5. If you are doing it on the side, start with 2 hours on saturday and 2 hours on sunday. 

Remember, every open house is an opportunity to meet a buyer. I will show you how to utilize down time at open houses later in this post. 

Open House Signs 

The next thing you will need is open house signs. Resist the temptation to run over you Home Depot and get regular open house signs. You want to get signs that say ‘Bank Owned Foreclosure Open House’. They should also have a direction arrow. Here is what I made on Vistaprint. Feel free to copy them!

Trust me, these signs draw people in. 

I made sure to get at least 10 signs. Most of the signs I throw along the closest busy road. Then have signs directed through the neighborhood to the house. 

Typically, I will set them up the night before to create some buzz. If you set up signs the night before, some may get stolen or damaged. It is all part of the game. 

Sign-In Sheets and House Information Sheets

Before you start, you want to print off a sign in sheet and information sheet. The sign in sheet is your bread and butter. This is where your leads will put their contact information and email address. 

The house information sheets can be pulled from the MLS. Most multiple listing services will allow you to add your contact information on top of this sheet, even if it is not your listing. Make sure you do that so guests can find your contact easy. 

Lastly, print off some as-is contracts. You will one day use them. 

The Open House 

If you implement this strategy, know going in that 50% of foreclosures are nasty. 

They may not have AC/Heat, they smell bad, and are usually a mess. 

But, they are loaded with opportunity. You will have home buyers and investors walking through the door. 

I am not a salesy (a word I just made up) guy. I hate being sold to. So here is what I do:  

Greet everyone with a smile, hand them an information sheet, and ask if they will sign in. Some people do not want to sign in. Don’t force them. 

Ask a few questions about what they are looking for then let them walk through. People hate to be oversold. You are just there to bring value and be a resource.

As they leave, ask if they have any questions. Thank them for coming, hand them a card, and let them know of the services you offer. 

Now, I just said I don’t like being sold. But, to close any lead you have to ask for their business. IF you don’t, you will just be holding open houses for strangers without making a dime. 

Most people won’t use you. You know that going in. All you need is one person to have interest in your services. 

Two Types Of Buyers 

There are two types of buyers and you have to treat them differently. 

Investors

Investors are drawn to bank-owned open houses. Many know there is an opportunity at the right price.

 They want to know the numbers. Get familiar with real estate investing terms. Many want to know the cap rate, rental rates, after-repair value, and potential cash flow metrics. 

If that sounded like I was speaking another language, try to learn real estate investor metrics during your open house downtime. I would even prepare simple spreadsheets for investors. 

They are some of the best clients you can have. Why do you ask? Because they do not just buy one property. Many will be your repeat clients over and over if you can speak their language.

Most agents wont do the simple work to learn these metrics. This will help you stand out. 

Home Buyers 

The other buyers are folks who are looking for their primary residence. They could care less about the numbers. They want to know about the features and how they could transform this place into their dream house. 

Think about how you would transform spaces with lighting, open concepts, and beautiful finishes. Then explain that to them if the opportunity arises. 

What if my Open House is Slow? 

Your open house may have zero people show up. This can happen if the listing has been sitting for a long time.  

If your open house is slow, don’t leave. Stay until the end. I have had open houses on multiple occasions where nobody has shown up. I wanted to quit and leave. For some reason, I stuck it out. 

On many occasions, one person has shown up the last 30 minutes and bought the house. If I would have left early, I would have missed out on $20,000+. 

Make it a rule that you will stay the entire time. If you leave and someone shows up, they will not be happy. They may call the listing agent and your reputation is ruined with that agent. 

Down Time During the Open House 

Running an open house is the same as working at a retail store. Everyone comes in waves. There will be lots of downtime. In a three hour open house, you can have two total hours to yourself. 

I was determined not to twiddle my thumbs or scroll IG, so I decided to make it extremely productive. 

I bought a cheap folding table and single folding chair on Amazon. Then tethered my phone’s internet to my laptop. 

Instantly, I turned my open house into a mobile office. This allows zero time wasted. You can run your entire real estate business from these open houses, then go home and be with your family. 

This is the time to make phone calls from other open house sign-in sheets, email potential leads, or set-up other open houses. 

I run a few websites, have a podcast, and have a full time 9-5. So if I ran out of things to do on my real estate business, I could write articles, outlines, or catch up on projects in my day job. My productivity goes through the roof. 

After the Open House 

After the open house, make sure to clean and lock up. Turn off all the lights etc. Give the listing agent a report via email and send all the pictures you took (if needed). 

Calling Your Sign-In Sheet 

Cold calling sucks. It is that simple. As time goes on, you will get better at it. The problem is, you have to do it. It is why you are having an open house, to generate those leads. Zillow would charge hundreds of dollars for the same handful of leads. 

You have to contact your sign in sheet the day after the open house. If they don’t answer, send them an email thanking them for coming. Then add them to a master list to follow up with. 

Studies have shown that it takes 7-14 calls before a buyer will use an agent. Rejection is inevitable, but the consistent will always win. 

If you are comfortable on camera, another method that works really well is to send them a quick video thanking them for coming and asking to call you with any real estate needs they have. 

This surprisingly has a higher success rate than cold calling. They put a face to the name and have a more personal touch. You can do this around holidays as well. 

It is All in the Listings 

Listings are where the big money is made in real estate. You leverage your time and efforts, and can receive double the commission. 

When you start getting active by holding open houses. Things will open up for you and your business. 

I have had the neighbor of the open house come over and ask me to list their house. Once you get your first few listings this way, they seem to roll in. You are working smarter, not harder to get these clients.    

Then you get buyers off your listing. People call your signs, and if the property is not for them ask things like “Well, do you know of any properties that fit  X criteria?” 

Then your business is rolling. Having a mixture of listings and buyers is how I made 30K in one month on the side selling real estate. I helped buyers and sellers with 4 properties of it would have happened if it were not for getting started with Bank Owned Open Houses. 

How Much Does it Cost to be a Real Estate Agent? 

Unlike my online side-businesses, holding a real estate license has higher costs. 

Brokerage 

My suggestion if you want to do this part time is to find a brokerage whose business model is low cost to agents (but they usually have a higher volume of agents). 

Here’s why. 

My brokerage only charges me $120 per quarter. If I help a client buy or sell a house, they charge me a $250 transaction fee. I am capped at $4,000 a year. 

Most major brokerages will charge agents a few hundred dollars a month and take half their commission for each transaction. This leaves the agent having to sell double the houses for the same profit. 

Yes they may provide leads (my brokerage does not which is why it is so cheap), but many of the leads do not amount to a sale. Major brokerages will also make you do certain tasks like check on other agents listings, have open houses, take pictures etc. No wonder most agents won’t make it past two years. 

That won’t work with this strategy. 

Every state has brokerages like mine. You just have to google your state and low-cost brokerage. 

$480 +  $250 per transaction. Max would be $4,000 / year

MLS Fees 

Multiple listing service fees are the next requirement for any realtor. 

The MLS is how listings get on sites like Zillow. Realtor.com, or Trulia. It is the way you get access to view properties and how you post listings. 

$400/year 

Realtor Fees

Every agent who is part of a brokerage must become a part of the National Association of Realtors. Your brokerage will direct you to the local branch. 

$600/year 

How Much Commission Do You Make Buying or Selling a House?

If you are helping someone buy a house commissions range from 2.5% – 3%. This depends on the agreement between the listing agent and the seller. 

So if you helped an investor buy a foreclosure for $200,000, at a 3% commission, you would make $6,000. 

Remember earlier when we talked about how it’s all about the listings? Here’s why. Listing agents can list a house, get a phone call that someone wants to buy the house, and get the listing and buyers commission. Listing agents have the potential to make 5%-6%. 

For that same $200,000 foreclosure, if a listing agent handled the buyer and seller, they would make $12,000 in commission. 

You can see how meeting people at these open houses can really snowball into a huge side income. 

If you landed one buyer a month. With an average sale price of $200,000, you would make $72,000 a year on the side. 

1.5 a month and you are making over $100,000 a year, on the side. 

There is no cap to how much you can make, only how many people you meet.

The post How I Made $20K In One Month as a Realtor (On the Side) appeared first on Dollar After Dollar.

If you are looking to lower your student loan interest rate, refinance your mortgage, or transfer over a credit card balance. Credible is the best tool for the job.

What is Credible?

Credible is a great platform where users can compare loan offers personalized to their needs. Think of it like the Expedia of loans. You can choose from multiple vetted lenders, ensuring that you have the confidence and resources to be able to improve your financial future. 

You will have access to an expert team to help guide you as well as the chance to choose from thoroughly vetted lenders. The entire process is safe since Credible has 256-bit encryption as well as SSL technology to make sure your data is secure. You will be able to compare all the options you have without putting your credit score at risk. Best of all: it’s free! 

How Does Credible Work?

Credible is an online marketplace that offers borrowers with personalized, competitive loans from different vetted lenders in real-time. You will need to fill out a simple form and then get personalized rates from different lenders in just 2 minutes. 

Credible Features

Student Loan Refinancing

Credible helps you pay less for your student loans so that you can get more out of life. You can compare rates for student loan refinancing from 10 lenders without any risk to your credit score. All you need to do is to fill out a 2-minute form. 

You will be able to adjust the repayment terms or interest rate on your federal or private student loans by getting a new loan that either pays off all or some of your existing debt. Refinancing can help reduce your total interest, monthly payments, or both. 

Refinancing doesn’t really cost you anything from Credible. The partner lenders do not have any loan application fees, prepayment penalties, or origination fees. 

Mortgage Financing

Credible is the most trusted mortgage broker you can get. It helps you with shopping for homes, researching, and making an offer. You can generate pre-approval letters in an instance and get competitive rates while comparing lenders. 

It will take you a total of three minutes to qualify for a letter without any risk to your credit card. Credible also ensures that you keep your data secured while comparing rates from lenders. Credible offers a modern approach to buying a house so that you can complete the entire process online. You will receive automatic updates and bank integration solutions so that you don’t have to go out of your way for anything. 

One thing you should remember is that Credible is a broker service, not a bank. Hence, they don’t try to deceive you or sell you on bad deals. They have loan officers with over 30 years of working experience that can also guide you through making the best decision. 

Mortgage Re-financing

You can compare many lenders to make sure that you save as much as you can on interest. Mortgage refinancing allows you to get the cash and the rate you need to have a financially stable future. You can pre-qualify for a loan in less than three minutes with actual rates from lenders. 

Credible uses smart technology to streamline questions and automate the process so that it is simple and quick. You can complete the entire process from comparing rates to closing a loan from one place. Since most buyers usually apply to a single lender, it can often result in huge losses. Borrowers who seek out additional quotes are able to save around $1,435 on a mortgage of $250,000. 

You shouldn’t rely on ballpark estimates that most rate comparison websites and lenders hand out. If you want to compare real refinancing rates, then you have to request a quote from every individual lender. Credible makes this easy for you by sending you actual rates from many different lenders all at once. 

Best Rate Guarantee

Credible has a Best Rate Guarantee. They offer you $200 if you are able to find or close at a better rate anywhere else. Credible wants you to be reassured that they offer the lowest rates in the market when you are out to refinance your debt. Hence, if you find a lender that isn’t working with Credible with lower rates after checking out the options on Credible, the company will pay you $200. 

Here are some vital highlights from this guarantee that you should know about:

• Only refinancing loans for students are eligible for this policy.

• After you have received the pre-qualified rates, you have 10 days to receive and submit a better rate. 

• The lender must be one that is not on a Credible Website. You can check the list here. 

• The rate must be offered at the same information that Credible received. 

• After closing and getting the funding for the loan, you have a week to submit the information to Credible to get the $200. 

Credit Card Comparison Tool

You can also use Credible to get a comparison for credit cards. Getting credit cards that work for you is important because you will be able to build reward points based on your own needs rather than the bank’s policies. Getting a reward-based credit card will help you maximize the value you get from everyday purchases you make. This can help you earn cash back, miles, points, and more with every purchase. You shouldn’t also rule out credit cards that have an annual fee either since they often balance out the cost through rewards. 

To help you out, Credible has an easy tool that can find the right credit card for you. You can browse through:

• Cashback card

• Travel card

• Balance transfer card

• Low-interest card

• Zero-percent card

• Secured card

• Student card

This can help you find the right credit card to maximize your rewards. 

How Do You Apply and Log-in At Credible?

Credible is pretty intuitive to use. The log-in process is based on simply signing up with a valid email and a password. Once you are verified through the code sent on your email, you will have access to Credible’s many amazing tools. 

To apply for loans or refinancing, you only have to fill out a 2-minute form. It doesn’t take long, and you can be reassured that your data is not being sold or used in any adverse ways. Credible keeps all your data safe and secured behind encryption and protection acts. 

What Does Credible Cost?

The best part about Credible is that it doesn’t cost you a thing. The service is free to use, and any loans you secure will come with no added costs from Credible. Credible earns by charging lenders a small fee, but that doesn’t impact your loan or use in any way, shape, or form. 

Check out credible here!

The post Credible Review: Refinancing and Student Loans appeared first on Dollar After Dollar.