Deciding To Downsize

Deciding To Downsize

After the kids have grown up and moved out, many Americans are weighing whether to “age in place” or downsize to a smaller home as they head into the next chapter of their lives. In fact, a 2018 study for Fannie Mae predicts a 42% increase in the number of older Americans exiting homeownership between 2020 and 2036, compared with the decade ending in 2018.

To help navigate the decision, here are the most important considerations.

Baby Boomers (Americans born between 1946 and 1964) are sitting on over $6 trillion of home equity, according to the Mortgage Bankers Association.

Whether or not you’ve fully paid off your mortgage, the equity in your home can provide the financial freedom and flexibility to re imagine life during a second (or third) act. To better understand the options and how to leverage existing equity, it’s important to speak to a professional, says Peter Jianette, northeast divisional director at Chase. “Speak to a [Chase] Home Lending Advisor to make sure a plan makes sense.”

Image result for Modular Cabinet and Shelving Set  GIF advertisementsOne crucial consideration when it comes to downsizing is retirement. The Insured Retirement Institute’s (IRI) annual Baby Boomer report has consistently shown that “Boomers are largely unprepared for retirement: unrealistic in their expectations and under-saved.”

Housing may provide a financial lifeline for Boomers. “Collectively, the vast inventory of homes possessed by older Americans”—approximately 46 million homes—“is worth an estimated $13.5 trillion,” according to Fannie Mae.

Rather than dipping into savings or going deeper into debt, older Americans can often leverage the value of their homes to address their retirement needs.

“The best advice when a customer is trying to better understand what is in their best interest— stay or downsize—would be to meet with our One Chase Team,” says Jianette.

Figure out where you want to live and what lifestyle is the best fit. Some retirees find apartment living in urban areas attractive because of access to mass transit, culture and entertainment. Others prefer to live in warmer climates, or want to be near their kids and grandkids.

Whatever appeals to you, make sure you’re aware of market conditions—both where you’re planning to sell and hoping to buy. That will help determine whether now is a good time to sell and what kind of home you can afford.

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The U.S. housing market is strong overall, but the value of your home can and will likely fluctuate over time. While the market is stable today, there’s no guarantee of the future—so that’s a risk to keep under consideration.

Moving can be expensive, even if you’re downsizing. There are also costs associated with both buying and selling homes, including real estate agent commissions, home improvements, transfer fees and taxes.

Some of these costs may be obvious, others less so. That’s why it’s important to use the resources Chase provides to ensure there are no surprises. “We just want to make sure the customers are 100% in the know of what they’re signing up for,” Jianette says. For example, many retirees looking to downsize are surprised to find they may not qualify for a mortgage because their income is greatly decreased from their working years.

“The same underwriting criteria goes for a smaller house—retirees need to be able to qualify for a mortgage on their own,” Jianette explains. “The last thing any lender wants is to put someone in a home they can’t afford.”

In addition, he notes that while many empty nesters “can afford the general maintenance of the house, rising property taxes can cause uncomfortable stress,” especially for those living on a fixed income.

Also, if you’ve owned your home for a long time—say 15 years or more—odds are it has increased in value, which can mean capital gains taxes when you sell. Speak with your tax advisor about your situation before deciding to buy or sell.

While the details can seem intimidating, you can lean on a Chase Home Lending Advisor to help guide you through the process.

“Our Chase Home Lending Advisors do an amazing job creating a goal-based plan with our customers,” Jianette says, “and discussing what would be the best for that individual customer.”

Chase has mortgage options to purchase a new home or to refinance an existing one. Our home equity line of credit lets you tap into your home’s equity to pay for home improvements or other expenses. Get started online to request mortgage prequalification or with a Chase Home Lending Advisor.

Source: Deciding To Downsize

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The 50 Best Private Equity Firms for Entrepreneurs

Private equity firms have been called all kinds of nasty names over the years: asset strippers, corporate raiders, vulture capitalists. Don’t be deterred by these labels. The PE firms making headlines over high-profile corporate bankruptcies such as Toys “R” Us are rarely the same investors who back small businesses. In fact, more and more companies are taking private equity investment. In the U.S., the number of PE-backed businesses is up 25 percent compared with 2014, according to research firm PitchBook. So don’t forget to call PE firms something else: business builders.

PE by the numbers
$752 billion Amount of uninvested capital that PE companies have at their disposal. That’s a record, up from $469 billion in 2014.
Source: Preqin
25% Increase from 2014 through 2018 in the number of private equity-backed U.S. companies, up from 6,177 to 7,737.
Source: PitchBook
10.1% Revenue growth at PE-backed middle-market companies in 2018. Non-PE-backed middle-market companies grew more slowly that year–7.9%.
Source: The National Center for the Middle Market at the Ohio State University
$713B The total value of private equity deals in the U.S. in 2018. That figure has increased 35 percent from 2014.
Source: PitchBook

For some private equity firms, investing in founder-led businesses is a big part of the strategy–if not the strategy itself. Before you test the private equity waters, however, you should first take a hard look at your company. “Founders need to think about what they want out of a PE fund,” says Nick Leopard, founder and CEO of Accordion Partners, a financial consulting firm that works with private equity-backed companies.

Some entrepreneurs turn to private equity to help execute their vision; others bring in PE firms to collaborate on new strategies or to finance acquisitions. “Doing that self-inspection first is really important,” Leopard says.

Private equity firms are now sitting on a record amount of uninvested capital, which is good news for businesses seeking funds. That cash pile is prompting those firms to expand their purview and do deals with businesses that just five years ago would have been unlikely targets, according to Tom Stewart, executive director of the National Center for the Middle Market. ”

They’re investing in younger, earlier-stage companies, and they’re more willing to take a minority stake than they were, because they’ve got to put the money to work,” Stewart says. “It’s more of a sellers’ market.”

Family businesses are often strong can­didates for outside investment. “It’s a rare family that can continue to evolve and grow a business without help from a third party,” says Dave Brackett, co-founder and CEO of private credit manager Antares Capital, which has helped finance acqui­sitions for more than 400 private equity firms. “You constantly need to innovate and bring people on board.”

Selling a meaningful stake in your company can be life-altering. That’s why we’ve created this list of founder-friendly private equity firms. We identified firms that have invested in founder-led companies, gathered data on how their portfolio companies have grown, and asked entrepreneurs to tell us about their experiences–including what any founder should know about outside investors.

That research has yielded our list of 50 firms with a track record of successfully backing entrepreneurs. Think of it as the first step in doing your own due diligence.

The Top 50 Founder-Friendly Private Equity Firms

Accel-KKR Menlo Park, CA $15M-$200M annual revenue
Alpine Investors San Francisco, CA $5M-$100M annual revenue
Berkshire Partners Boston, MA $100M and above in annual revenue
Blue Point Capital Partners Cleveland, OH $20M-$300M annual revenue
Brentwood Associates Los Angeles, CA $25M-$500M annual revenue
Bridge Growth Partners New York, NY $50M-$500M annual revenue
CCMP Capital New York, NY $250M-$2B enterprise value
Clayton, Dubilier & Rice New York, NY Typically invests $100M and above
Clearview Capital Stamford, CT $4M-$20M EBITDA
Cortec Group New York, NY $40M-$300M annual revenue
Endeavour Capital Portland, OR $25M-$250M annual revenue
Frontier Capital Charlotte, NC $10M-$30M annual revenue
General Atlantic New York, NY $25M-$300M annual revenue
Genesis Park Houston, TX $5M-$100M annual revenue
Great Hill Partners Boston, MA $25M-$500M enterprise value
Gridiron Capital New Canaan, CT $75M-$650M enterprise value
JMI Equity Baltimore, MD
San Diego, CA
$10M-$50M annual revenue
JMK Consumer Growth Partners New York, NY $2M and above in annual revenue
Kayne Anderson Capital Advisors Los Angeles, CA $5M-$50M annual revenue
LLR Partners Philadelphia, PA $10M-$100M annual revenue
Main Post Partners San Francisco, CA $25M-$250M annual revenue
MidOcean Partners New York, NY $100M-$500M enterprise value
Mountaingate Capital Denver, CO $5M-$25M EBITDA
Palladium Equity Partners New York, NY $10M-$75M EBITDA
Pamlico Capital Charlotte, NC $10M-$150M annual revenue
Permira Menlo Park, CA
New York, NY
$200M-$5B enterprise value
Prospect Partners Chicago, IL $10M-$75M annual revenue
Quad-C Management Charlottesville, VA $75M-$500M enterprise value
Ridgemont Equity Partners Charlotte, NC $5M-$50M EBITDA
The Riverside Company New York, NY $400M enterprise value or less
Sagemount New York, NY $15M-$250M annual revenue
Serent Capital San Francisco, CA $5M-$100M annual revenue
Shamrock Capital Los Angeles, CA $20M-$300M annual revenue
Shorehill Capital Chicago, IL $3M-$15M EBITDA
ShoreView Industries Minneapolis, MN $20M-$225M annual revenue
Sole Source Capital Santa Monica, CA $35M and below EBITDA
Source Capital Atlanta, GA $10M-$75M annual revenue
Spell Capital Minneapolis, MN $5M and above in annual revenue
The Sterling Group Houston, TX $50M-$750M annual revenue
Stripes New York, NY $10M and above in annual revenue
TA Associates Boston, MA $100M-$250M annual revenue
Tecum Capital Wexford, PA $3M-$15M EBITDA
Thomas H. Lee Partners Boston, MA $250M-$2.5B enterprise value
Tower Arch Capital Draper, UT $20M-$150M annual revenue
TPG Growth San Francisco, CA $15M and above in annual revenue
Trilantic North America New York, NY $100M-$1B enterprise value
Tritium Partners Austin, TX $5M-$100M annual revenue
Trivest Partners Coral Gables, FL $20M-$200M annual revenue
TSG Consumer Partners San Francisco, CA Declines to disclose
Wynnchurch Capital Rosemont, IL $50M-$1B annual revenue

By: Graham Winfrey

Source: The 50 Best Private Equity Firms for Entrepreneurs

Private equity funds are groups of investors that flip companies for a profit. It’s the technique they use that makes them special, as Paddy Hirsch explains. #MarketplaceAPM #PrivateEquity #Investing Subscribe to our channel!…

Buying and Selling Property With Bitcoin Is More Complex Than It May Seem

Buying and selling property using cryptocurrency is less straightforward than was first assumed. The handful of mortgage lenders and realtors who were initially keen are now reluctant to accept crypto deposits due to money laundering fears. Until there is greater clarity concerning crypto regulation, due diligence procedures and taxation, potential participants are opting to wait on the sidelines.

Source: Buying and Selling Property With Bitcoin Is More Complex Than It May Seem – Bitcoin News

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