Our world’s getting older, and a lot of folks are busting past the old retirement age, opting to stay clocked in. Many smart businesses have caught on. They value their senior workers for not just what they know but also how steady and mentoring they can be.
It means we need fresh thinking around benefits, from changing work hours to connecting them with assisted living communities when needed. In this piece, we will talk about three big focus areas!
Health Care Benefits
Health care is so important, even more so as we get older. The chance of getting chronic conditions goes up, and medical bills can skyrocket! That’s why killer health insurance coverage is key for our seniors in the workforce.
This might mean covering a larger part of premium costs or offering lower deductibles. It could include preventative visits to doctors, mental wellness help, or alternative treatments to keep everyone feeling their best.
Companies should think about benefits that cater specifically to senior needs too. Maybe toss in vision and dental coverages. What about long-term healthcare plans specific to them? Who wouldn’t love tailored wellness programs meant just for older adults?
Let’s add some free gym memberships, tips on eating better, and ways to manage stress – all this will surely boost employee happiness levels!
Retirement Planning
Even though they’re hard at work, senior employees have retirement on their minds. Companies can play a big part here by offering solid 401(k) plans with plenty of employer-matching contributions. Why not give them access to expert financial resources or advisers? These pros can help older workers plan for the future and make smart choices about when to say goodbye.
Don’t forget those good old-fashioned pension plans, too. They may be a bit out of fashion these days, but they are still great perks that seniors appreciate! What’s better than knowing your steady income continues even after you retire? It’s like having an extra security blanket in later life!
Flexible Work Arrangements
What most seniors in the workforce really dig is having a flexible work schedule. As people age, their energy levels might dip, or they may just have other things to juggle, like taking care of family.
There are heaps of ways employers can make flexibility happen at work. Fancy job sharing is where two folks share one full-time gig, so older workers stay involved without feeling swamped out! What about working from home? There are no more commuting hassles, and easier for those with mobility issues too!
How cool would phased retirement be? Employees could gradually cut down on hours over time. This lets them slowly settle into life post-work while also passing all that wisdom onto newcomers along the way.
Conclusion
So, reworking how we handle employee perks for seniors isn’t just the right thing to do – it’s actually a smart move. When companies look after older workers, they get access to all that experience and wisdom! Plus, boosting diversity is always cool, and being known as an employer who genuinely cares means winning more hearts!
Airbnb has millions of listings all over the world, from Portugal to Canada. It’s one of the most successful business models to date, and for a good reason. If you play your cards right, you can make a considerable amount of money renting out your property on this popular website. Whether you’re new to Airbnb, or you’ve been around for a while and you’re looking for ways to step up your game, here are some of the best tips for taking your Airbnb listing from good to great.
Décor is Key
When people are shopping around for an Airbnb, appearance is everything. That’s why it’s important that you pay special attention to how you decorate your property. Personal touches are an important aspect as well. Consider adding something like a welcome basket with local products and snacks or even a handwritten note with a personal dedication to your guests. Each small touch can make a significant difference in how your guests rate their overall stay at your property.
Photos Are Important
Photos are critical for your Airbnb listing. It’s essential that you make your photos top-notch, so your photos do the talking for you. Instead of taking grainy or blurry photos that could risk making it look like an amateur, hire a professional photographer or invest in a professional camera yourself. Lighting is a critical part of your photography, as the more light your photos have, the more spacious and appealing your property will look.
Highlight What Makes Your Property Unique
Make sure that you highlight any notable or important aspects that make your property stand apart from the rest. Whether it’s your amenities, location, or a particular view, make sure that it’s mentioned in bold lettering in your listing. Guests are often looking for particular amenities, so it’s important that yours stand out.
Respond Right Away
Responsiveness is a critical aspect of a successful Airbnb listing. There is nothing less professional than a host that won’t get back to their guests. Think of your guests as your clients. You can’t expect to build a positive client relationship if you won’t answer their messages in a timely manner. Most importantly, it’s critical for good reviews, which are one of the most important parts of your Airbnb experience. You can have the most beautiful listing in the world, but if you have poor reviews, you’re not going to get as many guests.
Make it Creative
Your listing should be creative so that it stands out from others. Try to find ways to make your listing unique. Whether it’s a catchy title or a particular selling point, make your listing memorable and one that potential guests will add to their favorites list.
One place where things are constantly evolving is the business world and as the demands of customers, technology, and the market change, the need for employees to stay up-to-date with their skills and knowledge becomes even more important. Otherwise, a company’s performance and productivity will suffer.
Here are some tips to help make sure your employee training sessions are effective as it’s not the simplest thing to pull off.
Set Clear Goals
Establishing clear expectations and goals for your employees is key to effective training. Not only do you need to define the objectives of the program, but also what success looks like in terms of mastery of skills or knowledge needed to complete tasks. This way everyone understands the purpose of the training and is motivated to participate fully.
For example, say you’re a senior living facility that wants to train staff on a new medical record-keeping system. A primary goal to motivate everyone may be “understand and be able to use the easier record system by the end of the week.”
Choose the Right Method of Delivery
Once you have your goals set, it’s time to decide how best to deliver the training materials. There are many options available such as elearning, in-person classes, videos, and more.
The key is to figure out which methods are best for the material you need to present and also take into consideration any preference your employees may have. For example, for training on new software, an e-learning course may be the best choice while a more hands-on approach may work better for customer service training.
Make it Engaging
Let’s face it, training sessions can be boring. Try to make your program fun. This doesn’t mean turning it into a game show but rather finding ways to keep employees engaged throughout the session.
One way to do this is by using activities or exercises that relate to the material being taught. This will not only help with retention but also make it more enjoyable for everyone involved. For example, if you’re teaching a group of customer service reps how to handle internet trolls, role-playing a few scenarios is a good way to practice the skills needed. Or if you’re teaching a group of chefs how to cook a new dish, have them prepare it in the kitchen instead of simply showing a slideshow.
Evaluate and Refine
The final step in any training program is evaluating the results and refining them as necessary. This is how you’ll understand what works well and what could use some improvement for future sessions, allowing everyone to get the most out of the training program.
Evaluation methods include surveys, interviews, and tests. For example, you could have everyone take a quiz after the training session to measure retention. Or you could conduct post-session interviews to get feedback from trainees on how well they understood the material and what topics need more explanation.
Employee training is an important part of any business and can help ensure that your team has the skills and knowledge they need to be successful. By following these tips, you can create a more effective training program that will help your employees stay up-to-date with the latest developments in their field.
It is correctly stated that every person admires beauty. If an individual is thinking of building a career in the beauty market, then he should get proper training in the form of courses and practical training. One of the most important things in choosing the best makeup course is to enroll the individual in a reputed university. Makeup is the skill that includes usage of the various cosmetic products that please the individual’s aesthetics. The beauty market is not only limited to makeup but is also extended to hair styling, manicures, pedicures, hair spas, shampooing, etc. There are high possibilities for an individual to get success in this field if he chooses the right makeup course at a reputed university. This article provides a general overview of the basic tips on how to choose the best makeup course for an individual.
How to Choose the Best Makeup Course
The first thing that an individual should do is select the field of beauty marketing in which he wants to build his career, because this will help him choose the right beauty school. It is important for an individual to have a basic makeup course from a reputed university that enhances their general concepts about makeup, like various makeup looks, techniques, and product usage. It is to be noted that there has been a huge advancement in the makeup field. There is a great margin in the bridal makeup field. If an individual is looking to become a professional bridal makeup artist, then he should enroll in accredited universities that offer the courses at reasonable rates. After completion of the course, an individual will get a handle on applying false lashes, highlighting the facial features, etc. For more information click makeup artist course in Dubai.
If an individual is looking to become a professional makeup artist and has a dream of working with successful photographers, designers, etc., then that individual should choose the makeup course that offers the skill of media look or red carpet look. A professional makeup artist should be an expert in various eye makeup applications. If an individual wants to try his hand at Bollywood, then he should choose the makeup course, which provides the skills of metallic makeup, airbrush makeup, etc.
Conclusion
An individual should get a basic knowledge of all the possible career options in the makeup courses and choose accordingly. It is important to choose the right makeup academy that offers the course at effective rates.
For a business of any size today, a website has become a must. Even if you have just started your business or have a small business that wants to tread the digital path. With website builders, the journey from offline to online has gotten much reduced, thanks to the technology and ease of building websites because of platforms like WordPress and Wix. With these platforms, small business owners don’t really need to design knowledge but should understand what their website should have and not have if it comes to product sales through the website.
But what is enough and what isn’t for a small business? With this article, let us find out how to create a small business website with a website builder.
1. Choosing a website builder platform
Choose a user-friendly solution that helps you build a website without any coding knowledge. Ideally, go with something as simple as WordPress. Almost 40% of websites worldwide use WordPress today. Basically, WordPress is an open-source project, which means it’s free, so choose WordPress. You don’t have to be a developer or engineer to create a site. This website builder is specifically built for the likes of small businesses or startups who just want to get started without having any prior coding or web development knowledge. Secondly, WordPress software is free. Also, it’s incredibly flexible – you can easily change the look of your website or add new features.
2. Pick a hosting provider
Choose the right hosting provider for you keeping your website’s requirements in mind. Understand how much space you will need or ask your hosting provider for suggestions on keeping your website in the best of conditions since you are just starting out. Certain prerequisites you must keep in mind which every small business must do while choosing a web hosting provider –
1. 24/7 customer service and support
2. Free SSL certificate
3. Free domain name for the first year of your plan
4. Access to the user-friendly control panel
5. Built-in security features
6. WordPress optimization features
3. Pick a domain name of your choice
The domain name you choose must match the company name. If you’re not sure which name to choose, there are plenty of online generators that can inspire you, such as DomainWheel. Also, here are some tips to consider when deciding on a website address:
1. Make sure it is easy to spell.
2. Try to keep it as short as possible.
3. Include keywords that are relevant to your business.
4. Install the website builder software
If you have purchased the software or even purchased the .COM version of the website builder from your hosting provider, you will need to download the website builder software. This process may be different depending on the hosting provider you choose so to be on the safe side, download the software from the official documentation.
5. Select a theme or template
Select a theme that is easy to customize. Many of them will also be free to use. In WordPress, you can access the free theme options from your dashboard by going to Appearance > Themes.
You can customize it by installing and activating the theme of your choice. Alternatively, you can consider a premium WordPress plan for themes. These products typically include features such as advanced portfolios, e-commerce websites, and web development tools. When you’re happy with your selection, you can review them all and click ‘Get started with this theme’
You then go straight to the editing area where you can customize almost every element of your site. It’s a good idea to look at the changes upfront to make sure it looks good.
6. Add your content
When you customize your site, you’ll probably want to add content almost immediately. Before doing so, it is important to keep in mind the rough structure.
Most small business websites require the following:
a) Home page.
This is the first thing many visitors will see when they come to your site. It should provide a brief overview of your services. In addition, it should include clear navigation to other sections.
b) Products, services, and portfolio page.
Here you will present your work and describe what you will offer to your clients or customers.
c) About us.
In this section, you can talk about your story or share information about your team.
d) Contact us page.
Basically, you want to include a contact form and encourage customers to contact you if they have any questions.
e) Blog.
Today, it is a necessity for many businesses and it is a very good tool for content marketing. You can have different kinds of conversations about your company, your products, or your brand through the blog.
7. Install plugins or extensions of need be
You may have an SEO plan or content plan for your blog or even may want to take backups, have e-commerce integrations, better speed and better security. You can add the plugins you want to and at the same time keep the speed of the site up. Start by downloading the relevant plugins for your new website.
8. Publish your website
Once done, push publish and present your website to the world.
Conclusion
Building a website as a small business has become less tricky and more fun. We hope that your journey begins smoothly and that you have no hiccups in getting online. In case you have any trouble, please share your queries below. We will try and fix them as much as we can.
Health is important at any age, however, it’s especially important as you reach your senior years when you may be much more susceptible to illness and injury. Sometimes something as simple as the flu can result in a hospital stay, so taking care of your body Is essential.
If you’re looking for ways to stay healthy in your golden years the simple way, then here are some of the best ways to get started right away.
Exercise
One of the leading causes of death for senior citizens is heart disease. To reduce your chances of developing heart disease, you should stay as physically active as possible. Being physically active doesn’t have to feel like a chore or something you’re forced to do either. Exercising can be something fun and not only enjoyed by yourself, but also with friends.
Go out and take a walk, or go swimming in your local pool. The idea is to get moving and strengthen your body. Just a little bit of strength training and building your muscles can make a world of difference in how susceptible you are to injury. Not to mention, activity is a natural immune booster!
Take Your Vitamins
Taking your daily vitamins is something that can increase your energy, and your overall defense system. Get into the habit of taking a daily multivitamin as well as additional supplements that your doctor recommends. Some people may require certain nutrients more than others for their particular health concerns. Whatever vitamins you decide to take, remember to stay persistent. They’ll work best when taken regularly on a daily basis.
Get Plenty of Rest
Sleep is one of the best things you can do for your body. When you go to sleep, your body regenerates itself and gives you the energy you need to take on the next day, so make sure you get at least eight hours a night. Above all, sleep significantly improves your memory. Once you get over a certain age, your memory can start to fade, so the more sleep that you get, the less susceptible you will be to memory issues.
Wash Your Hands
Washing your hands has always been an important part of staying healthy. However, since the onset of the Coronavirus, washing your hands has never been more important. It’s recommended that you wash your hands regularly throughout the day, especially after going out in public and touching multiple surfaces. The simple act of keeping your hands clean can make a world of difference in your overall health. If you don’t have access to running water and soap throughout the day, it’s as simple as carrying around a bottle of hand sanitizer in your pocket!
Confused between whether to go with learning makeup course and or let it just be and opt for something better and productive? If so, you will be able to decide for yourself by the end of this blog either of the two.
The makeup arts are adored by a lot of individuals worldwide. Numerous people participate in online makeup lessons and learn makeup on social media and other offline venues like makeup atelier training center Dubai. Many young people are attempting to break into the beauty industry, though some may learn cosmetics for selfish gain.
Here are some advantages of participating in a premier makeup expert course, regardless of whether you want to work in the beauty industry, want to educate others online, or want to do something different.
Pick the Right Equipment
You need to develop more than just the skills for applying makeup. You must be aware of when, when, and how to employ a variety of tools. If you’ve been learning on your own, you might be acquainted with the fundamental makeup tools. There will be a lot of cosmetics equipment, though, that you’ve probably never seen or heard of. You will have plenty of hands-on practice learning everything there is to know about these products and how to apply them when you participate in a school for commercial makeup training.
Stay Trendy
The field of makeup artistry is one that is ever-evolving and shifting. It’s possible that today’s makeup standards are different from those from a few years ago. However the makeup you applied a few days earlier may occasionally become dated. So, if you want to go up the figurative ladder in the profession, you need to keep on top of the latest trends.
Be Creative
When applying makeup, you should be inventive and come up with stunning designs that perfectly fit your client. Online, you may find some amazing designs and even generate a few original ones on your own. After the training, though, you will understand more about makeup in-depth. This implies that you may really demonstrate both your originality and your abilities.
Learn
In many cases, wearing makeup is a challenging task. In a salon, applying makeup for a bride may be quite difficult and put a lot of strain on the makeup expert. Everything must be spotless, and anything less may be considered unacceptable, especially if you work for a prestigious company. You can learn in a legitimate setting and become an expert in the methods. Because each client you work with will be different, you’ll also understand how to choose and use the best cosmetics for them.
Conclusion
You cannot, however, just look for new beauty trends on blog posts or social platforms and learn how to apply them. By following fashion and culture news, you can start to recognize trends when studying cosmetics professional way. Additionally, you’ll be able to easily adapt. Join your favorite institute at Dubai now!
Suppose you wish to create a hedge against the cryptocurrency volatility that happens every day. In that case, we recommend you invest in precious metals and coins that operate in opposite directions.
You can use many cryptocurrencies to purchase gold, but the procedure may not be as straightforward. We can all agree that cryptos such as Bitcoin have reached significant growth, while the bullion has been continually increasing for hundreds of years.
Enter this site: https://www.gpmgold.com to learn more about buying gold by using virtual coins.
Although, in theory, precious metals may not outperform other investment options you can choose, we can differentiate numerous reasons people use it as a hedge against inflation and volatility. For instance, people across the globe are using it, meaning it will hold its value during the financial and political uncertainties.
It would be best if you stayed with us to learn more about investing in gold using cryptocurrency. It functions similar to crypto, but it is simpler to liquidate and exchange it for fiat money. Let us start from the beginning.
How to Use Cryptocurrency to Purchase Gold?
We can differentiate numerous ways for using crypto to buy precious metals such as gold and other options you can choose. We recommend buying directly from precious metal retailers and reputable gold sellers that accept Bitcoins and other cryptocurrencies.
Buying Gold with Bitcoin
You can choose numerous platforms that will allow you to take advantage of Bitcoin and transfer it to get precious metals and physical bullion. The main idea is to find the best market for your needs.
Most of them will already have cryptocurrency as payment, allowing you to rest assured along the way. Finally, you can take advantage of BitPay or other payment methods to handle and deal with the process. You should click here to learn more about crypto.
We recommend you start by logging into a BitPay wallet app, but you should follow payment protocols and transfer it to a wallet based on your preferences. Then you should scan the code for paying. You can wait for fifteen minutes to handle the invoice when you confirm the order.
Remember that the process can be pending for the next twenty-four hours or one business day. The uncertainty happens because the payment must pass a few blocks for approval. Therefore, you should not overthink the entire situation and wait for payment confirmation to arrive in your email.
Although it is not a quick process, it is the fastest payment method you can choose. At the same time, it is the most affordable. Since some gold buying platforms offer discounts when you handle the entire order with crypto, you will pay three percent less than usual.
Still, the Bitcoin network will charge you a transaction fee, which is small, but you should remember it beforehand.
Buying with Other Crypto
Suppose you are an active investor in virtual currencies and owe more than one option. Then, depending on your preferences, you can take advantage of things you own and swap them for silver or gold.
You can use a wide array of services for making trade and converting alternative coins into the most popular ones. The main idea is to swap the currency you have for a Bitcoin, and handle the entire process as mentioned above. As a result, you can make efficient precious metal purchase without any additional hassle.
On the other hand, you can sell the currency you own for dollars and use it to get gold bullion for your specific requirements. It does not matter which option you choose because of the risk level that comes with gold. The best way to reduce the hassle is by choosing a reputable dealer for the process.
It is vital to choose the one that works more than a decade, meaning they have a good platform, customer reviews, referrals, and a straightforward user interface for both savvy and people who are new to online buying. Reputation is essential to prevent potential fraud, which is vital to understand.
As soon as you check here, you will learn everything about Bitcoin and other virtual options you can find on the market.
Finally, it would be best to remember that crypto and gold are forms of money you can hold outside the banking system, meaning their value depends on external factors. Besides, they are finite, meaning the value will always remain the same. Investing is the best action if you wish to protect your other investments from inflation or economic turmoil.
People may need more assistance than usual with their tax returns this year, especially if they are working as freelancers, started a small business, received unemployment benefits, qualified for various tax deductions, or lost their job. People can use online programs or tax software.
If their adjusted gross income was less than $73,000 in 2021, they could file federal income taxes through the Internal Revenue Service Free File program, where the government partners with online tax prep firms. But individuals may want more personalized help when filing their tax returns this year.
Check out this site for more info about the history of taxation.
Experts can ensure that they get all the tax breaks they deserve, especially in a year where situations may be pretty different compared to previous years. A lot of professionals can also help people with tariff planning, which can save people a lot of money in the process. Keep in mind that most individuals have until April 18 to file their income tax returns from the previous year.
What type of preparer do people need?
There are various options when looking for preparers. Some just complete their state and federal returns and may charge pretty low if their situation is not complicated – for instance, people’s income is from full-time jobs where they receive W-2s. But suppose individuals had a couple of different positions during the year, started their own enterprise, worked as freelancers, or had other complex contribution situations.
In that case, they may need more assistance. Experts can help them figure out what expenses they can deduct and may find breaks they never realized that are applicable to their situation. People with an Internal Revenue Service Preparer Tax ID Number can prepare federal returns. But there are tons of qualifications and experiences needed to be one.
CPAs or Certified Public Accountants, lawyers, and enrolled agents can represent individuals in front of the Internal Revenue Service in audits, appeals, and payment issues. Participants of Annual Filing Season Programs are other preparers who have completed the needed number of continuous education to prepare for tariff seasons.
Some individuals had PTIN who have not completed the necessary certifications and are authorized by the government to prep returns but can’t represent customers in front of the Internal Revenue Service. Individuals can check the credentials of preparers in their area using the Internal Revenue Service directory of government-return preparers. Listed below are some ways to get assistance when it comes to filing returns.
CPAs or Certified Public Accountants
Certified Public Accountants needs to be licensed, complete testing requirements and meticulous education, as well as to meet ethical standards set by the government. Individuals can find these professionals near them via the American Institution of Certified Public Accountants search tool.
These personal tax preparation professionals have different fortes. Some focus on individuals and others on enterprises. Some accountants also have personal financial specialist credentials and can help with financial planning and tariffs.
Enrolled agents
These agents are government licensed and have unlimited privileges to represent taxpayers before the Internal Revenue Service. They need to pass comprehensive examinations and complete ongoing education requirements. A lot of these professionals specialize in planning for people, as well as audits. Enrolled agents can represent both enterprise and individual taxpayers at all stages of the IRS – appeals, collections, and examinations.
People can find these professionals via the National Association of Enrolled Agents or NAEA. Payers can also find enrolled agents and CPAs in their area through local companies and referrals from colleagues, friends, and family members. They can complete their returns, as well as help with tariff planning during the fiscal year.
Tariff-prep firms and independent preparers
Tariff-prep firms and prep services are working virtually and in-person this year. Prices can differ depending on the complexity of the payer’s contributions and the location. If payers have more than one job, receive an unemployment package, or are self-employed, they could have more complicated returns.
For instance, some firms offer in-person meetings, online self-preparation, online pro service, or drop-off service for less than $100. People are matched with dedicated professionals who prep their current-year returns, including state and federal. Every office has CPAs on their teams, along with professionals who need to complete proper training programs.
Want to know more about accountants and auditors? Click this site to find out more.
Free preps
Cities like Miami, Los Angeles, Boston, and New York offer free filing services for residents who qualify in their programs. For instance, most New York residents who earned $72,000 or less in 2021 are entitled to New York City free prep, which is administered by the city’s Department of Consumer Affairs. There are free filing services all over the country that meet government standards.
The volunteer assistance and counseling for elderly programs offer free help for eligible taxpayers, usually based on the person’s age or income. The VITA or Volunteer Income Tax Assistance program has been operating for more than fifty years, offering free assistance for individuals who make less than $58,000, individuals with disabilities, as well as those who speak little to no English who need assistance with their returns.
What to look for in a preparer?
Ask family members, colleagues, or friends for recommendations, especially if they have worked with professionals or firms for a couple of years. Also, check BBB or Better Business Bureau for reviews and ratings. Make sure that these professionals match their needs.
Do they just need experts to file their returns, or would they like these professionals to help them with planning for their financial future? For instance, if the payer is starting an enterprise, it may be pretty helpful to work with professionals like enrolled agents or CPAs who specialize in small or medium enterprises, who can let them know about future deductions and planning strategies as they build their enterprise.
Suppose an individual is about to retire and starts withdrawing their money from their tax-deferred retirement plans. In that case, it can be an excellent time to meet with an expert who specializes in financial planning and can assist them in finding out the most efficient ways to use their funds.
Hard money debentures are made by lending firms willing to accept more risks compared to mainstream housing loan firms and traditional banks. In exchange for providing credit to individuals who would otherwise be turned down, hard fund lending companies charge higher IRs (interest rates).
If people need credit and have bad credit or other issues, hard fund loans might be their best and easiest option. These debentures are made by forbrukslån firms or private investors who are more flexible and lenient about accepting risks compared to conventional financial institutions.
These debentures are usually the platform of last resort, made for people who are unable to get enough financing from traditional financial institutions like credit unions, conventional banks, and traditional housing loan firms. If people’s credit score or history disqualifies them, or if the house they want to buy does not fall within the guidelines or classifications followed by conventional lending firms, people might succeed by applying for hard debentures. Because of the risks, these credits carry higher IRs and usually provide shorter terms instead of a longer-term financing.
Candidates for these types of debentures
Listed below are some examples of situations that might need this type of debenture:
People want to purchase a vacation house on a remote land. Most lending companies are reluctant to lend funds for the purchase of a property that is in an isolated and distant location, especially if the area is more important compared to their residential house. In case of a foreclosure, this type of property could be pretty hard for mortgage firms to sell. But private investors might lend individuals the funds as hard credits.
Ranchers need mortgages to purchase prairie acreages for grazing their cattle, but traditional appraisal methods make it pretty hard to find the property’s value.
Retired railroad employees decide to purchase antique cabooses and convert these areas into guesthouses in tourist destinations. Still, the styles of properties are so unusual that traditional financial institutions cannot conventionally appraise these things.
These debentures might be the answer to these circumstances. People have bad credits, recent bankruptcies, or want to borrow more than they qualify for with mainstream lending companies. Traditional financial institutions will most likely turn people down because they represent high risks for defaults. But hard money lending firms may accept these types of risks, especially when the collateral is very valuable.
For instance, a developer wants to borrow three million dollars to purchase a recently closed factory to convert the space into condominium units. He is ready to start construction, but he has already borrowed funds for another project, essentially tapping all his available credits. With these credits, he can get the money immediately. Paying additional interest is worth it for the developer, so he does not have to delay his new business.
Rules of convention
Conventional lending firms turn down debentures to individuals with bad or poor credit or unusual and quirky properties because they need to adhere to strict guidelines set by the industry. Certain sets of criteria and rules are followed to reassure investors who purchase credits in secondary markets.
The federal government supports this type of reselling of credits since it helps make sure that there will always be tons of investor funds readily available to people who need to purchase properties with housing loans. For their part, Fannie Mae bundles together housing debentures and issues securities backed by mortgages based on the value of loans in every bundle.
These mortgage-backed securities – which are traded like stocks – can be conveniently sold to individuals around the world. To keep this type of market working without problems, investors need to be very confident that the credits they represent are risk-free and pretty solid. As a result, the federal government sets stringent lending guidelines.
What are the rules?
Lenders for this type of loan to make up their own set of guidelines depending on the risk level that they are comfortable with, as well as their own experience in this industry. Since their loan portfolios are a lot harder to sell to investors, hard money lending firms cannot rely on making funds through secondary markets in a way that financial institutions like Fannie Mae does. Instead, they need to generate their own profits by charging high-interest rates to borrowers.
