House flippers turn to crowdfunding platforms for financing:

LOS ANGELES — David Berneman isn’t developing an app. His company isn’t venture backed. In fact, his business is about as low-tech as it gets: He buys houses, fixes them up and flips them.

But he too is funded by the crowd.

Berneman’s family business, Golden Bee Properties, borrowed $1 million to buy a West Los Angeles home that he plans to renovate and expand before putting it back on the market. The money didn’t come from a bank but from 44 small investors, some of whom put in as little as $5,000.

Berneman and his backers came together through crowdfunding, which enables businesses to publicly solicit investment from individual investors online.

“It’s like a Kickstarter for the real estate industry,” Berneman said. “It allows people to get into real estate investing in a way they wouldn’t have been able to before.”

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Although crowdfunding is closely associated with tech startups, the practice has found a niche in real estate and in house flipping in particular.

Between September 2013, when equity crowdfunding was first permitted under new Security and Exchange Commission rules, and September of last year, investors pumped $870 million into crowdfunding platforms tracked by New York data provider Crowdnetic. Nearly a quarter of that amount, $208 million, went into real estate projects.

That’s more than biotech, alternative energy, tech wearables, online gaming and social media startups combined.

Although data providers don’t track the number or dollar-volume of loans going to house flippers as opposed to developers of larger projects, more than a dozen real-estate-focused platforms offer loans to them. And a handful of Southern California startups specialize in the market.

Patch of Land in West Los Angeles made about $61 million in loans last year, mostly to house flippers, and PeerStreet in nearby Manhattan Beach made $40 million, almost entirely to them.

“There’s a crowdfunder popping up once a month now, and the low-hanging fruit is the fix and flips,” said Jonathan Lee, a principal at George Smith Partners, an L.A. real-estate-financing firm.

Entrepreneurs behind the financing platforms find house flipping attractive because banks don’t participate and there are no big, established players.

Traditional mortgage lenders want to know a borrower’s individual credit history and income, and probably wouldn’t allow a borrower to have loans outstanding on half a dozen properties at once, not an uncommon practice among flippers.

That has forced most house flippers to rely on a hodgepodge of small private lenders, wealthy investors or friends and family for capital. Today’s crowdfunding platforms enable flippers to tap into a much larger investor network.

The platforms are open to accredited investors, who have to make more than $200,000 annually or have a net worth of at least $1 million.

“It’s an industry that’s been relying on knowing a guy who knows a guy. It’s ridiculously inefficient,” Jason Fritton, chief executive of Patch of Land, said about financing for house flipping.

And while house flipping might lack the cachet of tech, it’s a relatively safe bet compared with the risky world of startups, said Eric Smith, director of data analytics for Crowdnetic.

“Real estate is a tangible asset,” he said. “It’s not like you’re going out there trying to buy into the next Facebook.”

Flippers traditionally are financed by “hard money,” or short-term loans with double-digit interest rates that are secured by a hard or tangible asset, in this case real estate.

Like hard-money lenders, crowdfunding platforms guard against risk by securing the loans to the property and lending for less than its full value.

If a borrower goes bust, the lender takes title to the property, which, in theory, can be sold for more than the loan principal. PeerStreet, for instance, typically will only lend about 75 percent of a home’s value.

“They don’t look at income or tax returns. They’re looking at the property and the project. Is there profit to be made?” said Christian Fuentes, an LA-area real estate agent and house flipper.

For investors, the steep interest rates — ranging from 8 percent to 13 percent on an annualized basis — translate into attractive yields.

“It’s just not the kind of loan a bank can make, so the interest rate is higher,” said Brew Johnson, chief executive and co-founder of PeerStreet. “(But) when done correctly and lent to good borrowers, it’s a great loan.”

The platforms also provide quick and relatively easy money.

Berneman and Golden Bee have been flipping houses since 2002 and used to finance projects by tapping into a Rolodex of about 30 wealthy contacts. Each investor would have to be convinced that it was a good idea to go in on a deal.

“If you have to go to a dentist or a family doctor to get an investment, it can be time consuming,” he said. “Hemming and hawing can cost us a deal.”

How Much Does It Cost To Hire Movers?

You are about to move to another home and you don’t know what to expect in terms of pricing? This can be really frustrating because when you are unsure about the cost to hire professional movers, then you won’t be able to set up your moving budget accordingly. Even worse, you don’t even know if the money you have saved up will be sufficient to cover the inevitable moving expenses.

There are just too many unanswered questions in your head that won’t let you focus on the myriad of moving tasks ahead of you. How much does it cost to hire movers? What is cheap and what is expensive? What is normal for professional movers?

You do need a good comparison base in order to know what your viable options are when seeking professional moving assistance. Finding and hiring reputable professional movers is not an easy task – most of the moving companies provide free moving quotes, but what does the final amount tell us? Understand how the moving price is formed and you’ll be able to save big on your move as well!

How much do movers charge? In most cases, your house move will fall into one of the two main pricing categories – Local Movers or Interstate Movers. Read on to learn the estimated cost to hire movers so that you are truly prepared for the financial side of your upcoming residential move.

Local Movers Cost

Local movers charge by the hour – this is the very first thing you need to remember if you’re moving locally. But what does that mean for you and your budget? It means that the price estimate you should receive by local moving companies should be based on an hourly cost and estimated hours to complete the move.

How much does it cost to hire movers for a local move?

The average cost to hire movers for a local move is $40-$50 / hour per mover but the precise hourly charge will depend on your exact location in the country, the season and day of the month you’re moving home, and the local moving company you’ve decided to use.
For hiring 2 men and a truck, you should expect to be charged from $85-$90 / hour to $95-$100 / hour. As mentioned above, the exact date of your move will have a considerable influence over the professional local movers rates. Busy dates are the more expensive ones – move-out dates that fall at the beginning and end of the month, especially during the summer.
Sometimes local movers charge additional fees and you should ask in advance about them to make sure the estimate you get is as close to the final movers cost as possible. An example for such an extra charge is the travel fee – the time the movers require to get to your location and back to their base of operation. That fee is often charged as 1 additional hour of labor.
How much does it cost to hire movers locally? A mini move (for example, moving out of a studio) that takes about 3 hours will cost you approximately 3 hours + 1 hour travel time = 4 hours x $85 comes to a total of $340 in the best case scenario.
When moving out of a 2-bedroom home, you should be ready to shell out more. Let’s assume that 2 movers work for hours to get the job done, then that’s roughly 6 hours + 1 hour travel time = 7 hours x $85 comes to a total of $595 in the best case scenario. Oftentimes, an extra mover will be required for working on 2+ bedroom homes, so the price can go even higher.
Most local movers will ask for a deposit when scheduling the move so that they can reserve the date for you. Contact your local moving company to learn more about their deposit policy.
Keep in mind that it’s important in advance to know how much local movers charge. Click here to have a free moving cost estimate by professional local movers.

What are the price factors when moving across the country?

If you’re moving to another state, be it a neighboring one, then you’re about to complete an interstate household move. And, because of that, the first thing you should know is that the price of your cross country move will be calculated rather differently than moving locally – it’s all about the price factors and how they will influence that final moving bill.

And more importantly – why should you care? Well, the good news is that once you’re familiar with how your interstate moving cost is formed through the interconnection of the various long distance price factors, then you will be able to find and use good cost-saving techniques to your advantage.


Moving across the country is no joke, and neither is the price.
Home size + shipment weight. Generally speaking, the larger your home is, the more items it will hold, and therefore – the heavier the shipment will become. In contrast to the local movers price /calculated on an hour basis/, the cost of all interstate moves /state to state moves/ are determined by the weight of the items to be shipped.

Special items. The general cost to hire movers will suddenly go up if you own an upright piano, for example, and you decide to take it with you. The same is true for other types of specialty items as well – a pool table, a hot tub, a big metal safe, antique furniture, and so on. Make sure you show to your moving company everything that you plan to move to the new house or apartment.
Extra services. In order to have your price calculated with any good degree of accuracy, you will need to inform beforehand your cross country mover whether you will require any additional moving services – packing, unpacking, temporary storage, disassembly and reassembly of furniture, custom crating for extremely valuable items, and so on. Only then will your long distance moving company be able to give you an accurate price estimate. And only then will you have the peace of mind that you won’t run into any bad surprises when it’s time to pay the company at the end of the move itself.
Move distance. Of course, the actual distance between the two homes will affect the cross country moving cost. However, that factor is not something you should really worry about because you don’t have any direct control over it.
Interstate Movers Cost

As already mentioned above, the cost to hire movers in town and the cost to hire movers out of state will be rather different. And because of the numerous price factors that influence a house move across the country, it’s virtually impossible to calculate on your own the cost to hire movers for an interstate move.

Request cost estimates from various cross country movers and have the company representatives visit your home so that they can provide you with accurate moving quotes that will reflect the amount you will pay after your household items are delivered to the new home.

Use the moving cost estimator at the top of the page to get accurate price quotes from top-rated cross country movers.

How much does it cost to hire movers across country?

Use the following average costs to hire movers for cross country only for referential purposes.  Do yourself a favor and ask reputable cross country moving companies for in-house surveys, followed by the issuance of precise quotes.

If you are moving out of a 1-bedroom apartment, your household items will most likely weigh around 3500 pounds. Expect to pay approximately $2500 for a move distance of 1000 miles with no extra services included.
If you are moving out of a 2-bedroom home (plus a garage and a basement), your stuff will usually weigh about 5000-6000 pounds. If you move it to about 1000 miles away, the cross country move will cost you about $3500-$4000 for the complete move.
Should you happen to receive a moving quote for a lot less than those amounts, you may be dealing with non-professionals have deliberately lowered the costs just to book your move. And if that is the case, then you could be asked for more money once they have picked your stuff, right before the delivery.

Click here for a complete Interstate move estimate to know how much it costs to hire movers cross country.

How much does it cost to hire movers? The extra charges explained.

As you can see from the example moving company costs above, this question can have very different answers depending on your move locations, type of move (local or interstate), and the professional moving company itself.

Here are some additional and often unexpected fees and charges that come into play when calculating the average cost to hire movers:


Expect to be charged extra if the professional movers are unable to use an elevator on moving day.
Charges for handling bulky items – this category includes pianos, organs, canoes and other items with either extraordinary proportions that take a lot of space or very heavy items (that weigh more than most items for the same volume. Some companies have a flat fee for moving pianos and organs. It is very important that the company knows about these items in advance as the movers may be unable to move them if they come unprepared on moving day.

Long carry fee usually applies due to the impossibility to park near the door to your building or because the walking distance from your apartment to the moving truck is very long. Having too much distance will prolong the move significantly and movers may change more. If possible, try to reserve a parking spot or to arrange a parking permit and reserve the best parking spot prior your move.
Cancellation fees might be charged if you cancel your move after previously booking it. Sometimes that could apply also when you want to change the moving date and the mover cannot accommodate you on that new date. This fee is usually equal or less than the deposit amount you have with your mover to book the date.
Storage fees usually apply when you request delayed delivery of your items. In those cases moving companies will have to store your belongings. Depending on the moving company, this fee could be a significant charge.
There are also some uncommon charges that you should be aware of. Best practice would be to ask your moving company about these and try to negotiate better terms in advance.

Express delivery charge or Exact delivery date charge – this usually applies when you want a fast delivery with a state to state move or when you request an exact delivery date for your cross country move.
Disposal fees (environmental charges) usually apply when you request unpacking of your belongings and the moving company will have to dispose of the used moving boxes and additional packing materials left from the relocation.
Extra stop charge usually occurs with local moves, when you pick up or drop off furniture from multiple locations. This will cause the movers to drive additional distance and spend more time.
This is why you are strongly advised to get estimates from multiple moving companies as every company has its own set of parameters when estimating the move cost. Also, negotiating a discount in advance is another option worth exploring.

Using Indoor Decor... Outdoors:

There’s lots of ways to save money when decorating your home from up-cyclingto versatile decorations that can be used for more than one holiday. These techniques also work to save space in your home without throwing away precious heirlooms. How do you recycle your interior design ideas?

Lots of interior designers bring outdoor elements INTO your home, but what about the opposite? What if you take the inside… outside? Make your backyard as warm and inviting as your living room.

Furniture
Give your old furniture a second chance, but consider the climate before any heavy lifting. Even if your patio is covered from rain, snow storms, and direct sunlight, the upholstery will still exhibit wear and tear from dry air and dewy nights. Treat wooden tables or chairs with exterior paint manufactured to withstand harsh weather. Coat metal with a protective spray, and cover metal legs with rubber tips to prevent rust stains. Other tips include storing the furniture inside of a shed during cold and wetter months, or covering the items in a tarp.

CurtainsHang curtains for aesthetic and functional purposes. Create a ethereal getaway by suspending drapery around your patio. The veil allows for freedom from shade and wind while also providing an area of privacy away from your neighbors.

Tiling
Encaustic tiles can draw on the rest of your décor. Utilize the same ceramic flooring inside and out – on a patio or a pathway. Historic Victorian homes very often showcase this style. It is beautiful but practical and resists abrasion.

Linens
Ditch the plastic, and indulge your outdoor tables with beautiful fabrics you usually save for the indoors. Add a centerpiece of freshly cut flowers picked from your very own garden to build a lush atmosphere for an open-air meal. Who says you always need to entertain in the dining room? Extra tip: If the material is machine-washable, you can easily use it again inside.

What are your favorite indoor elements to use outside?