How your customers write your paycheck...

HIT more accurately, and secure more jobs...

Today's news - Renovation Financing should be in your toolbox. Here's why... From the Joint Center for Housing Studies at Harvard - Accelerating growth in residential improvement and repair expenditures is anticipated through the third quarter of 2018, according to the Leading Indicator of Remodeling Activity (LIRA). Home renovation and repair spending will increase from 6.3 percent in the fourth quarter of 2017 to 7.7 percent by the third quarter of next year. Recent strengthening of the US economy, tight for-sale housing inventories, and healthy home equity gains are all working to boost home improvement activity. “Over the coming year, owners are projected to spend in excess of $330 billion on home upgrades and replacements, as well as routine maintenance.” For more info check out the full report - http://www.jchs.harvard.edu/growing-momentum-expected-remodeling-spending

What you need to have in your toolbox... You can get more business, and be the hero by simply handing a potential client information with all their financing options. If you would like such a flyer, please contact me. Here are the many ways your customers can pay for home improvement, renovation and additions - Renovation Mortgage or Renovation to Perm - This type of financing has one significant advantage...it is based on the future value of the home and is likely tax deductible depending on IRS rules at the time. Cash (including retirement funds) - This is great, but if it is coming from a high yield fund or retirement account, then your customer might want to consult with their financial adviser before liquidating such an asset. HELOC/2nd Mortgage - This vehicle can work nicely, if there is enough current equity to cover the project costs. Under new tax laws, this type of financing may no longer be tax deductible. Also HELOC's typically have variables rates. Cashout Refinancing - Much like a HELOC, in that this is based on current value, NOT future value. If there is enough equity, then this is excellent, and is still likely tax deductible. Custom Renovation Financing (from companies that specialize stand alone loans for this purpose) - Can work if a relatively small project. Rates are higher. Not tax deductible. Look at final payment compared to above options.  Personal Loan - This works, but is limited as most banks cap these loans at around $10,000. Rates are higher, and not tax deductible. Best for small projects, especially if customer can pay down rapidly. Credit Cards - Much like personal loans, these are not tax deductible, typically have much higher interest rates. Loan amounts are limited. Not a good option unless customer has ability to rapidly pay down the balance.