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The best way to get approved for a loan

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One of the most straightforward lending products available is a personal loan. The premise is super simple – you borrow money to enable you to complete a purchase and pay it back in the agreed timeframe with interest.

However, what’s a little more difficult to understand is how lenders decide to approve applicants for a personal loan, as this process isn’t widely shared.

Therefore, in this post, we explain exactly what lenders look for when considering personal loan applications and provide you with an insight into how to ensure you are approved for a loan.

And if you’re in a position to apply for a personal loan when you’re done reading, Koyo provides flexible loans of between £1,500 and £12,000. You can utilise our loan calculator or submit an application directly to www.koyoloans.com. Representative APR 27%.

In the content that follows, we focus specifically on unsecured loans (as opposed to secured), which are typically much riskier and require you to place your house as security for the loan. You should also be aware that this article is part of a series, so please feel free to check out our full guide to personal loans when you’re finished reading this piece.

Unfortunately, the majority of lenders are unable to independently verify affordability information, whereas Koyo can. This means that other lenders typically base their decision solely on information that is provided to them by a third party, as opposed to understanding your current financial situation.

How do lenders make a decision on applicants? 

Before we consider different ways of maximising your success when it comes to applying for a loan, it’s important to first look at the criteria that lenders use to make their decisions.

What lenders want 

The best way to look at lenders is to consider them as businesses first and foremost, whether they’re a high street bank or an independent loan provider. And to succeed in the world of business, they need to make money and turn a profit. As such, lenders know that they are guaranteed to lose money if they lend to clients who aren’t able to repay the loan! 

Therefore, a lender will begin by ascertaining how likely a client is to repay a given loan. And while no loans come with zero risk attached, lenders will try their level best to cover all bases. The main way they do this is by charging sufficient interest so that if a handful of borrowers default on their payments, the lender is covered by those that continue to pay as per the terms of the arrangement.

But as you can imagine, it’s a precarious balancing act: if a lender charges too much, their loans won’t be competitive, and if they charge too little, they’re likely to lose money.

How do lenders know if someone is able to repay the loan? 

Ultimately, lenders have no way of knowing for certain if someone will repay a loan. However, they can prepare themselves by asking two questions:

  1. Does this individual have a track record of debt repayment?
  2. Can this person afford the repayments through their current earnings?

The first question is typically the most important for the majority of lenders. This is why they usually carry out a credit check, which sees them access relevant information from credit agencies such as Experian and TransUnion. These agencies collate information regarding people’s debts, the timeliness of their repayments, as well as other data that lenders might find useful.

And while question number two is vital, the majority of lenders are unable to independently verify information relating to affordability (Koyo can, as we explain later). As a result, most lenders base their final decision about whether to lend money to you solely on the information provided by a third party, which doesn’t necessarily consider your current financial situation.

So, It’s your responsibility to convince lenders that you’re capable of paying back the loan that you’re applying for. How do you go about it? Let’s find out!

How do I get approved for a personal loan? 

When you know what lenders are looking for, it’s relatively easy to set a plan in action to improve your chances of getting approved for a loan. Here are some of our top tips:

Improve your credit score 

Typically, your credit history and your track record of repaying debt is the most important factor for most lenders when deciding whether to issue you with a loan.

Lenders can access your credit history from credit bureaus, and the best way to improve your credit score is simply to ensure you repay your current loans on time, all the time.

But your credit score is a little more complex than this. For instance, making sure you’re on the electoral roll and correcting any mistakes that are on your file can make a big difference to your credit rating.

Ensure you can afford the loan

Next, you need to think about the affordability of the loan you’re applying for. If a lender is going to give you money, they want to be confident that you will be able to pay it back.

For instance, if you’re remaining with £400 per month after covering your financial obligations (rent, food, utilities, etc.) and the monthly repayments on your loan would total £350, the lender is unlikely to sign off on it. Why? Because a small change in circumstances would mean that you would probably default on the loan.

Lenders can also take your debt-to-income ratio into consideration, which doesn’t take your monthly expenses into consideration.

Either way, it’s important to conduct some research into what you think you can afford before you apply for a loan, and you should leave yourself a reasonable buffer. And while you could technically extend the loan period, you will find that your interest payments will increase if you do so. As such, the best way to increase affordability is to reduce the loan amount.

Look for a lender that offers loans based on affordability. 

Verification is one of the biggest challenges when it comes to writing loans based on affordability.

When a lender approaches a credit bureau, they are provided with accurate information from a trusted source. This is because the bureaus store data relating to missed payments, loans paid off, CCJs, and other aspects of your financial history.

But checking affordability is much more difficult for lenders. This is because the majority of lenders are unable to independently verify your monthly spending or income. But Open Banking lenders are different. Lenders like Koyo can securely check your bank account information and therefore verify the affordability of the suggested loan based on your current situation.

This means that Open Banking lenders are less constricted by credit score and instead can determine your loan approval based predominantly on affordability. This means that first-time borrowers – or those with insufficient credit scores – have much more chance of accessing a loan.

What type of loan is the easiest to get approved for? 

We need to start this section with a caveat – the easiest loan might not necessarily be the best loan for you. 

Typically, payday loans are the easiest types of credit you can get approved for. But such loans come with extremely high-interest rates, and it will make it more difficult for you to access other lines of credit in the future.

So, instead of asking what type of loan is the easiest to get, it’s better to ask yourself which is the best option available to you.

The good news is that help is available if you’re looking to work out how likely you are to be given a certain type of credit. You can use Money Saving Expert’s superb eligibility calculator to examine your approval chances before applying.

How much time does a personal loan approval take? 

Fortunately, things have improved considerably in recent decades when it comes to loan applications. Instead of having to schedule an appointment to see your bank manager in person and waiting weeks to hear the results of your application, lenders in the present day can usually handle the whole process online and offer you an answer very quickly.

For instance, Koyo will usually give you a decision within one working day and typically deposit the money into your account within 48 hours of the application. And due to the fact that much of the application process is automated, many other lenders offer quick turnaround times, too.

Be sure to review our guide to the required documents needed for a personal loan, so you can start the application process armed with all the required information.

What should your credit score be if you want to get a loan? 

You might be surprised to hear that lenders don’t necessarily look at the credit score itself when deciding to approve your loan. Your score is just a number that makes your credit history a little easier to understand at first glance.

That being said, each of the bureaus (Experian, TransUnion, and Equifax) scores your credit on a scale rating from very poor to very good, so the score given is a useful guide for lenders to use.

While there’s not usually a minimum credit score required to be approved for a loan, borrowers with good credit scores are more likely to:

  • Select from a broader range of loans
  • Borrow higher sums of money
  • Be offered lower interest rates

Generally, providing that your credit score is at least ‘fair,’ you should be able to apply for a decent range of loans, but you will probably be restricted if your score is considered poor or very poor, as you might expect.

Is it possible to get a loan with a bad credit score? 

Yes, you definitely can get a loan with a bad credit score, but your chances of approval are lower.

This is because each lender uses its own criteria and defines what they think a ‘good’ borrower looks like. For instance, one lender might be very happy to approve you if you have multiple credit cards but would see your short address history as a red flag. And just to confuse things, another lender might have the completely opposite opinion!

Therefore, because different things are important to different lenders, you might be approved for a loan even if your credit score is poor. But that being said, you will have to work harder to find a provider that will take a chance on you, and you will have to come to terms with the fact that you will have to pay a higher interest rate.

But the good news is that you can improve your credit score by always making your repayments on time and never defaulting on your current loans. You can check out our guide on how a personal loan affects your credit score to find out how this works in practice.

Alternatively, if you have a bad credit score, you could look for a lender that uses Open Banking instead of your credit history as a factor in approving you for a loan. For instance, Koyo offers personal loans that are flexible, up to the value of £7,500, with a representative APR of 27%.

What should you do if your application for a personal loan is rejected? 

First and foremost, don’t be too concerned. There are so many reasons why your personal loan has been rejected, and the majority of them are pretty easy to fix.

So, if your loan application is rejected, our first piece of advice is to dive into our comprehensive guide on the subject. But if you’re convinced that your application was rejected because of your credit history, consider applying for a loan from an Open Banking lender like Koyo. As mentioned, Koyo uses your real-time bank data to consider your application, as opposed to what the credit bureaus say about your suitability.

Next steps 

We hope that you’ve found this guide insightful and beneficial. You can let us know if you have any questions in the comments section below.

But if you’re ready to apply for a personal loan, remember that Koyo offers flexible personal loans of between £1,500 and £12,000. Representative APR 27%.

 

What Are Racial Equity Audits? 

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Racial Equity Audits are the practice of independently reviewing an organisation’s policies and ascertaining how well they encourage and promote inclusion, diversity, and racial equality. They’re a recent introduction to ESG investing.

Although working towards racial equality within corporations has been on the agenda for a while, the raising of the bar by Black Lives Matter has really brought the quest for racial equity back into focus. Multiple studies have indicated that racial inequity can damage the economy, which has motivated the financial world to take notice and do something about it.

Actors within the investment space have started to regard insufficient racial equity policies as a risk to their business. Bad press is landing at the door of companies who maintain (or are perceived to maintain) discriminatory policies or internal procedures. And because of the reputational damage of this bad press, companies are seeing their shareholder value affected.

In stark contrast, companies that are inclusive and diverse are more likely to do better than their less diverse competitors, which has led investors to start considering how corporate policies, processes, and products influence things like diversity, inclusion, and civil rights within the companies that form their portfolios. This has motivated businesses to address racial inequalities and make commitments to do something about them.

Will racial equity audits alter business practices? 

We have already witnessed major corporations make assurances as a direct result of findings from racial equity audits. One such example was Starbucks introducing multiple initiatives to improve inclusion and tackle inequity after a third-party racial equity audit. The global coffee chain committed to the following actions:

  • BIPOC mentorship initiatives
  • Employee training focused on foundational inclusion and diversity learning modules
  • Establishing corporate diversity goals
  • Making compensation incentives for executives more diverse

It’s not year clear whether Starbucks will roll out these initiatives globally or whether they will be implemented solely in the United States, but at least it’s a step in the right direction.

And Starbucks isn’t the only corporation open to change – Airbnb and Facebook have also completed racial equity audits in recent times. What’s more, BlackRock, Morgan Stanley, and Citigroup have conducted audits in the financial world. Morgan Stanley initially urged its shareholders to reject the audit proposals but carried one out all the same.

This was mirrored in retail, as Amazon felt that the Human Rights Assessment they carried out meant there was no need to do a racial equity audit. But the US Securities Exchange Commission suggested that Amazon should, in fact, carry out an audit, and it was put to the vote at the company’s next AGM.

Amazon shareholders were warned of equating racial equity audits with Human Rights Assessments by Thomas DiNapoli, who was responsible for filing the original proposal with the company. DiNapoli wrote an article that emphasised the importance of recognising that companies still face issues relating to discrimination, equity, diversity, and inclusion, even if they have completed a Human Rights Assessment.

Racial equity audits for shareholders: What does it mean?  

An alarming piece of research conducted by Citigroup found that the racial wealth gap could have cost the US economy $16 trillion over the last two decades, predominantly as a result of discriminatory policies relating to black Americans’ wages, education, housing, and investment. Further research conducted by the WK Kellogg Foundation suggests that if the racial equity gap is closed, the United States could add as much as $8 trillion to its economy by 2050.

But this issue isn’t just an American one. Henley Business School conducted research into the UK economy and discovered that British companies that tackle inequality and racism could expect to see average revenues that are 58% higher over a three year period, when compared to companies who do nothing about such issues that arise in the workplace.

For us, this indicates that large sectors of the general public have woken up and are motivated to guide the corporate ship into different waters, which is something that investors simply cannot ignore. Companies that promote inclusion and equality are much better placed to facilitate long-term value and, therefore, shareholders who pretend the issues don’t exist will be left behind.

There’s still an awful long way to go, but it’s reassuring to see the long-awaited focus of the social aspects of various ESG initiatives. Making people aware of racial inequality within corporations will increase transparency, create clarity around boundaries, and ultimately strengthen our understanding of the ESG framework in the business world. Investors have the power to influence change by understanding this framework.

Tulipshare invites suggestions from all users about campaigns and other ideas to foster racial equity – register today.

Different Types Of Warehouse Storage Solutions

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If you want to modernise your warehouse storage solutions, you should begin with your racks and shelves. However, although improving your shelves and racks might result in some significant advantages in terms of space use, it is far from your sole choice. A variety of automated methods may result in even larger benefits while adding the capability to your company.

Types of Warehouse Storage Solutions

Since there are so many types of warehouse solutions on the market today, it’s critical to familiarise yourself with the possibilities before being sold on one that won’t compliment your layout or meet your demand for flexibility.

Here is a list of the most common types of warehouse storage solutions to assist you in selecting one that is appropriate for your business.

Traditional Shelving

Shelving is one of the most classic kinds of warehouse storage, and it is what most people think of when they consider storage choices.

Shelving may be either mobile or static.

Static shelving is intended to remain in one location, often where it was erected. Static shelving, by definition, resulted in fixed aisles. On the other hand, mobile shelving is intended to be moved. They are often installed on a carriage and wheel arrangement. Fixed aisles may be reduced or eliminated by using mobile shelving, allowing for denser storage. Each style of shelving serves a certain purpose in a given process.

Multi-tier Racking

The multi-tier racking system is best suited for medium to large warehouses with enough vertical space. It is built with several stages where stock may be manually accessible up to the maximum upper limit of warehouses. However, in order to correctly store the units and make room for additional objects, you must carefully arrange each layer.

The finest feature of a multi-tier racking system is its versatility, which enables you to add or remove levels based on your storage needs. Simultaneously, you must follow the weight limitations and rack-height compliance recommendations to prevent any disasters.

Wire Partitions

Wire partitions are simply wired cages that are used to store merchandise in operation. They are generally fast to install (and remove), making them a fantastic alternative when time is of the essence. Because of the nature of these cages, wire partitions are often employed to store large or unusually shaped items like tyres or balls. They are not usually a suitable choice for really delicate products.

Wire barriers may also be used to store objects that need more protection than just being put on a shelf.

Pallet Racking Systems

As the name indicates, a pallet racking system holds stocks on pallet racks consisting of wood, plastic, or metal. This method is appropriate for the largest and busiest warehouses and supermarket shops that receive huge storage boxes. Depending on the height of the racks, these boxes are positioned using an automated system or a forklift. If you want to put pallet racking in your facility, you must consider many factors, including your budget, the size of the pallets, the height of the ceiling, and the size of the storage facility.

Coil-racking, push-back racking, narrow aisle racking, pallet live racking, high-bay racking, vertical racking, drive-through racking, and more subcategories are all supported by this system.

Many warehouse operators choose one of these subcategories depending on infrastructure, flexibility, and storage unit weight. It is also the most efficient and cost-effective storage choice since it allows you to store diverse stocks in a framework that allows for quick access without holding any possible failures.

Mezzanines

A mezzanine is an extra level of warehouse space placed into your business. Building a mezzanine is similar to adding a second (or third, etc.) level within your warehouse, increasing the amount of valuable space you may utilise for storage and other operations.

Adding a mezzanine to your property might be an expensive operation. Nonetheless, it is frequently less costly than new construction and enables you to reclaim unused vertical space in your organisation.

Understanding The Warehouse Storage Solutions Alternatives

You may take several pathways to improve the efficiency of your warehouse storage, ranging from standard methods to more modern, automated choices like AS/RS.

However, before proceeding with a storage solution, you must choose the appropriate alternative. Which warehouse solution is best for you will be determined by your objectives, the size of your facility, the available floor space, vertical height, throughput needs, and the particular features of your inventory.

Conclusion

It is critical to understand the warehouse’s needs before selecting among many kinds of warehouse storage solutions. Some storage methods are best suited for warehouses that primarily store huge packages, while others are better suited for warehouses that want to optimise their space. Because each method has its own merits, warehouses may experiment with combining them — especially if their handling inventory involves a variety of SKUs.

Five Items For Your 2022 Financial Planning Checklist

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As you welcome the new year 2022, it might be a good idea to reflect upon how well you did last year. This also includes the financial aspects – how your investments have fared in the last year and if you are still on track in achieving your financial goals at the deduced time horizon. It’s a good time to revamp your financial planning checklist if needed. In this article, we will cover five items that you must check off in your financial planning list in 2022.

  1. Prepare a new budget
    Every year, an individual must ideally exercise new budget preparation taking their present financial situation and other factors into consideration. One must begin by evaluating their current income levels and their expenses. Reviewing your expenses will help you to monitor your expenses and avoid unnecessary expenses. A simple way to achieve this is by following the 50-30-20 budgeting rule. As per the rule, an individual must ideally allot 50% of their income towards basic necessities such as rent, food, etc. Next, 30% of the income can be used to support one’s lifestyle such as going out for dinner, taking a trip, buying new apparel or furniture for the house, etc. And the remaining 20% must be saved and ideally invested in the right investment options.
  2. Evaluate your financial objectives
    Evaluating your investment goals will help you stay on track with achieving your financial goals – big or small. You must also evaluate if you are on the right path to achieve your retirement and tax saving investment goals as well. You must also review if you have made necessary contributions towards your financial goals such as retirement, child’s higher education or marriage, buying a house, etc.
  3. Evaluate your cohesive portfolio
    A cohesive investment portfolio comprises of different types of investments such as mutual funds, gold, fixed income securities, stocks, real estate, money market instruments, cash and cash equivalents, etc. Next you must work towards aligning your investment portfolio as per your desired asset allocation mix. If needed, rebalance your investment portfolio as well as per your financial needs.
  4. Clear your debts
    It is always a good idea to be financially independent and debt-free. Being debt-free does not add on to your stressful life. You can begin by getting rid of high-interest bearing types of debt such as personal loans or credit card bills. Keep in mind that certain debts such as home loan provide tax benefits to investors. So, you must plan your debt repayment plan in a way that focusses on home loans at the last.
  5. Maximise tax savings
    An individual can avail of several tax saving investments to lower their tax outgo. With different tax saving investment options to choose from – ELSS (equity-linked savings scheme) mutual funds, tax saving fixed deposits (FD), Sukanya samridhi yojana (SSY), public provident fund (PPF), national savings scheme (NSC), senior citizens savings scheme (SCSS), etc. choose a type of investment that aligns with your financial portfolio.

 

Will virtual assistants ever dominate the UK market?

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With the global pandemic showing no signs of slowing down, many businesses across the UK have adapted their operational models to streamline their work and optimise productivity. The rapid advancement of technology has certainly helped in this regard. Businesses have encouraged their employees to work remotely, helping them save costs while maintaining their effectiveness and value.

Many small- to medium-sized businesses in the UK have opted to outsource key functions of their business to enable them to focus on more strategic objectives and ensure that their businesses remain competitive in such uncertain times. With that being said, outsourcing virtual assistants has become increasingly popular in the UK, especially for businesses with small staff complements with limited skill sets and resources.

Why virtual assistants?

One of the main reasons for virtual assistants gaining traction amongst UK businesses is that they are multi-skilled specialists who are highly experienced with time-consuming, repetitive, and often tedious tasks critical for efficient business operations. Tasks such as email and calendar management, content creation and social media management, market research, graphic design, and administrative tasks are some core areas that virtual assistants excel in.

Often described as a “Godsend” by UK business owners, virtual assistants can be deployed at short notice for a defined cost, so businesses can choose to outsource specific tasks as and when their services are needed. In addition, businesses don’t have to provide office space, resources, equipment and furniture – all that without even mentioning not having to contribute towards taxes, benefits and associated costs of having permanent staff.

How do virtual assistants add value?

When considering these unprecedented times, it appears that an increasing number of businesses will leverage technology to their advantage and gravitate towards a more digital business model. This allows businesses to provide efficient and effective services without the need to have physical interaction with staff or customers.

With that being said, it’s easy to understand why virtual assistants are increasingly being sewed into the fabric of many businesses across the UK – quite often becoming invaluable commodities to business owners who now have time to concentrate on growing their businesses strategically.

Virtual assistants are highly-skilled and are able to complete projects and tasks quickly and efficiently without supervision. They have a unique skill set that your business may not have in-house and possess the expertise to finish complex tasks effortlessly.

Quite often, mundane and repetitive tasks – which are key to business operations – hinder a business owner’s ambitions. These time-consuming activities leave little time and energy to channel towards business growth.

It is quite often the case when businesses break up big tasks into many little ones and outsource these little tasks in order of priority. By breaking down a big task, business owners discover that some of those can be handled in-house while outsourcing what is only necessary.

The beauty of using a virtual assistant is that businesses only pay for these virtual assistants’ time without forking out additional staff costs. In addition, virtual assistants usually work according to a budget that is agreed on before any work is undertaken, so there is transparency and clarity right from the outset.

Virtual assistants also offer incredible flexibility in the type of tasks that they help with, the regularity of doing such tasks, and the level of detail they offer when helping you get your business into shape.

Virtual assistants prove their value in these instances by taking on the mantle with consummate ease. With business owners now having the luxury of time on their hands, they can focus on matters of business strategy and growth and provide more specialised services to their clients. Time is far more valuable for business owners when identifying and implementing strategic initiatives than wasting away their talent with repetitive and tedious tasks.

Final thoughts

The bottom line is that most businesses in the UK could do with a virtual assistant, even if just for a few hours a week. Of course, this would depend on their level of business activity, the complexity of their operations, and the level of expertise that the company has internally.

The beauty of outsourcing a virtual assistant is that specialist outsourcing firms have the expertise, tools and professional staff to provide a comprehensive suite of services, freeing up valuable time for UK businesses to focus on operational and strategic objectives.

Many businesses across the UK have come to realise the tremendous benefits of using a virtual personal assistant to keep their ships sailing smoothly. By using fit-for-purpose professionals only when you need them, your business is able to climb to greater heights much quicker as you are not drawing unnecessary resources to get the same work done.

While you may not need a virtual assistant for all tasks all of the time, they are a strategic tool that can be customised and deployed to get ahead of your competition. It only makes sense to use a virtual personal assistant to help you to optimise business operations – just make sure to outsource from established companies with valuable talent pools on hand.

 

How to Get a Job in the Shipping Industry – Victor Restis

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Shipping is an important industry worldwide, and a career in shipping can be very rewarding for young people. However, getting a job in the shipping industry is not easy, but the following tips from experts like Victor Restis should help you improve your chances of getting hired.

1. Join Shipping Networks & Associations

Membership of international associations/networks will provide opportunities to meet members from all areas of the maritime sector and find people who might be able to help your career. The International Shipping Federation (ISF) is one such organization that has more than 50 national affiliates who deal with issues of concern to the global shipping industry.

2. Have a Career Plan & Be Flexible

Success in any job depends on knowing what you want to achieve and the steps you need to take in order to get there. What are your current skills? How can you improve them? Think about how a particular position could lead to another interesting opportunity. One of the most important skills in life is being flexible, so embrace changes when needed.

3. Gain Experience

A good idea would be to get some experience in your chosen field well before applying for a job. For example, if you want to be master of a ship one day, getting some experience on board as an AB or OS will help to demonstrate that you have what it takes. You could also try and get experience working in the offices of shipping companies and learn more about bookings, port agency services, etc.

4. Have Excellent Communication Skills

Your communication skills are extremely important in any job, especially when dealing with international customers and colleagues from all walks of life. The ability to speak foreign languages fluently is always beneficial, although it should by no means be seen as a pre-requisite. More importantly, good written English skills are essential for almost every role within the sector.

5. Be Enthusiastic & Organized

Successful shipping professionals are often very enthusiastic about their job and industry in general but also well organized. Make sure you plan your time carefully to make the most efficient use of it. You can never be late for an interview or meeting when you’ve planned everything in advance!

6. Have a Great CV

A great CV includes key skills that match the requirements of the position; relevant work experience; qualifications; membership of professional associations; languages spoken (if relevant), and testimonials from previous employers (if possible). Keep it short – three pages maximum, plenty of bullet points where possible so it is easy to read.

7. Be Ready to Travel

Shipping companies are often very international, so you’ll have to be prepared to travel, sometimes extensively. Therefore all your documents must be up to date and tidy, so they don’t hold you back from your next big opportunity.

8. Job Portals & Headhunters

There are many shipping job websites out there where you can see what vacancies are currently being advertised or headhunters who deal with the hiring process of global shipping companies – be sure not to miss them! As well as looking for your ideal position, don’t forget about reaching out directly through social media channels such as Linkedin, Facebook, etc., by letting people know about your current job search.

 

Why Student Housing is a Sound Real Estate Investment – Nelson Partners

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Real estate investors are always on the hunt for the next big thing. A product that presents itself as an opportunity to see significant returns on investment for one reason or another. To these savvy investors, the most important consideration is a fundamental question: “Where can I get a good return?” The answer lies in understanding the basics of how rental property finance works and looking at student housing through this lens, like Nelson Partners and other firms, have done.

In this article, we will look at how a savvy investor can take advantage of the growth in student housing by understanding some simple concepts that drive student housing returns. Here are some of the reasons to consider student housing as an investment vehicle:

1) Limited Supply; Growing Demand

According to the National Center for Education Statistics (NCES), the number of students enrolled in postsecondary institutions grew by about 39% over the past decade to exceed 20 million students. This is expected to continue growing through 2025 using the NCES data. Their analysis shows an additional 4 million students could enter the system by 2025.

2) Limited Competition for Available Units

With rapid enrollment increases, the last thing a student wants to worry about is finding housing near their school. This has resulted in a limited competition for units, allowing landlords to charge premium rents and still have good occupancy rates. Combine this with the fact that these students are not in the market for a primary residence, and units will most likely be occupied throughout the duration of their lease (9 months in most cases).

3) Investment-Grade Cash Flow

As is true with any real estate investment, it’s all about the cash flow. The good news for investors in student housing is that cash flows can be very strong. A good rule of thumb is that student housing units can command 10-15% more than traditional multifamily units, allowing investors to earn attractive returns on their investment. Other factors can affect the potential cash flow, such as whether or not utilities are included in rent and how many people live in each unit (students tend to live with 3-4 roommates), but 10-15% is a solid benchmark.

4) Market Preference For a Durable, High-Quality Product

Due to the student housing market’s investment-grade returns and tenant profile, investors have been drawn to this product as an alternative real estate asset class. As a result, there has been significant development of new projects in recent years. From 2010 – 2012, over 12,000 beds came online nationally, with approximately 5,400 more expected between 2013 and 2015. In essence, developers are constantly creating new opportunities for investors by building a product that meets demand – a great recipe for success.

5) “Hidden” Value Propositions

Many would be surprised to learn that at some schools, students can actually live on campus during their freshman year and return home every weekend if they choose! This can be a great opportunity for investors if they can lease units to students that live off campus and then rent the same units out during breaks at a premium price. This phenomenon is known as “drive-for-free” and it allows investors to earn rental income even while the unit isn’t occupied.

Bottom Line

Student Housing is on an upswing, has limited competition, offers attractive returns on investment, and presents itself as an alternative asset class. Nelson Partners believes in this product so much – we’ve made it our mission to help educate more people like you about how this market works.

6 Signs the Universe is Speaking to You – Teal Swan

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The spiritually inclined often find signs in their daily lives that seem to indicate the existence of a higher power at work. These signs may range from subtle occurrences or thoughts to more pronounced events that are harder to ignore. While you cannot force the universe to repeat its messages, here are six ways it might be trying to notify you about something important, according to spiritual teachers like Teal Swan.

1) When you feel like you’re being watched

Ever feel like someone is watching your every move, even when you’re alone? Spiritual teachers believe that could be a sign from the universe letting us know we have unseen companions. The fact is we are never truly alone because we carry the energy of those who surround us in our hearts and minds and vice versa.

2) When you notice synchronicity on a regular basis

Synchronicity is another indicator that the universe may be reaching out to us with signs and signals of its own. Synchronous events occur when two or more connected people experience something simultaneously, even if they’re thousands of miles apart. The universe knows we’re connected and often uses these connections to deliver messages meant for multiple perspectives.

3) When you receive inner guidance via intuition or gut feelings

Intuition is the ability to “know” something without having all the facts – it’s a sense beyond what we can see, hear, touch, taste, and smell. While some dismiss their intuition as coincidence or wishful thinking, there are many who believe it’s the universe lending us a hand by giving us signs or urges to pay attention.

4) When you get strong urges to take certain actions

Many spiritual teachers agree that when the universe wants something, it sends out very clear signals in the form of urges and even compulsions. This might be anything from wanting to drive two hours away to see something specific to knowing someone is about call, and you should pick up instead of letting it go to voicemail. If you feel an urge and act upon it, you just might find your world is much more synchronistic than before.

5) When life begins repeating itself in cycles

Thoughts often come in cycles, just like our breath and heartbeats. When our thoughts or experiences begin to repeat themselves, it may be the universe trying to tell us there’s a lesson we need to learn. We often repetitively create the same lessons until we learn whichever one we’re meant to, so if something keeps happening over and over even when you think you’ve learned your lesson already, it just might indicate the universe wants you to pay attention and remember what you need to know.

6) When other people seem to read your mind

Have friends or family members who seem able to guess your thoughts? That could be another sign from the universe letting you know they can see more than meets the eye. It’s not that they magically figured out what was going on in your head; it’s more likely that you both picked up on signals your bodies were giving off without realizing it.

 

Why Environmental Construction Trends Will Continue – Reddy Kancharla

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Green buildings are gaining in popularity, and construction engineers like Reddy Kancharla and others in the industry say this trend will only continue in the future. Here are some reasons why.

1. Increased awareness of the benefits of green buildings

Green buildings provide the following benefits:

  • Lower operating costs. LEED is an example of green building rating systems developed to reduce energy consumption, optimize water use, and improve indoor environmental quality.
  • Increased tenant satisfaction resulting in higher occupancy rates. The design of a green building often results in more satisfied occupants.
  • Higher resale value. Green buildings are generally more valuable than their traditional counterparts upon resale because of lower operating costs, increased tenant satisfaction, and the fact that they have a high-quality design with better air quality.

2. Increased availability of green building products

Green building products are now available at many retailers and home improvement stores. For example, the number of builders offering LEED-certified homes continues to increase as more builders become aware of their benefits and as consumer interest grows.

3. Increased demand for green buildings

Interest in green building will likely continue over the next few years as a result of the following:

  • Job creation – Many jobs have been created within the construction industry due to growth in green building. In fact, at least 30 percent of real estate development firms now offer some type of environmental service from energy audits to water recycling programs since 1999, according to McGraw-Hill Construction magazine.
  • Sustainable cities – More sustainable cities may attract new residents and businesses as well as encourage existing businesses that are looking for a location with improved sustainability options.
  • Environmental regulation – More stringent environmental regulations may be passed in the future. In fact, Dodd-Frank Wall Street Reform and Consumer Protection Act requires all public companies to disclose material risks related to climate change, including physical risks from increased weather intensity. Such transparency would likely attract more investors.

4. Increased knowledge about green building

The growing demand for green buildings will help drive further education and understanding of the benefits of going green, which helps spur further development in this area. The demand for a trained workforce in sustainable design is also increasing in response to the increased interest in these types of projects by both professionals and consumers. With that said, there are still some barriers that need to be overcome before widespread adoption can happen, including:

  • Lack of industry standards – Although LEED is the most well known, there are still a variety of green building rating systems and guidelines currently in use.
  • Lack of financing options – The lack of financing options for energy efficient upgrades can put a strain on homeowners looking to improve their homes’ green capabilities. Traditional loans may not be available, especially for those seeking more advanced technologies such as solar or geothermal heating.

5. Increased technological advancements and competition

Technological advancements will likely continue to improve both how we create and how we use sustainable materials and power sources which may help spur further interest in the area – including improvements in:

  • Energy efficient heating/cooling equipment that can cut expenses for homeowners and businesses alike.
  • Water recycling systems that provide clean, recycled water for irrigation and other uses.
  • Innovations in sustainable materials which help reduce costs while improving the overall quality of the final product.

Photoshop Tips To Make Your Photos Better – Bruce Weber

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There are lots of Photoshop techniques that can save your photos. Finding the best way to get good results in a short amount of time can sometimes be a stressful task. The stress can be relieved by gaining a few helpful tips and tricks on Photoshop. The following article will provide you with some of the best, well known Photoshop techniques photographers like Bruce Weber use to make photos look great.

Fixing Camera Distortion

Many lenses distort images at their widest angle, creating unwanted effects on many photos. This distortion often causes the subject to be extremely warped and poor quality. The lens will naturally stretch out anything close to it due to its wide-angle view, so a person’s nose might look extremely large if they are in front of the camera when it is taking a shot.

Camera distortion can also happen to objects such as buildings and other various structures when they are photographed from down below. For example, a long building can look like it is at an angle rather than completely vertical. Luckily, Photoshop has tools that allow you to easily fix this problem by simply creating a panorama.

Using The Clone Stamp Tool

The clone stamp tool is one of the most useful tools in Photoshop, as it allows you to cover up unwanted parts on pictures. It is extremely easy to use and designed for beginners just learning how to work with this program.

To use this tool smoothly, you need to match the size of the area you want to replace, as it will be as big as your brush. Also, make sure that your brush is not too soft and misty, or you may not get a clean edge on your replacement part.

Fixing Lighting

Many photographers forget about the importance of lighting their photos properly. Often, one may take a picture and find out after heading to the computer that it looks either too bright, too dark, or improperly exposed. The best way to fix these lighting problems is by using levels in Photoshop.

Another useful tool for adjusting the lighting in photos is Curves. Curves allow you to create different effects on certain areas of an image, such as deepening the shadows or brightness and also creating a more dramatic effect in general. Curves give you great control over an image’s color balance and exposure too.

Brightening Photos

There are times when you’ll take a photo that may be too dark for your needs. One way to fix this is by using the Burn tool from Photoshop. The Burn tool allows you to brighten areas of a photo while leaving the rest untouched.

The best way to do this is by selecting the Burn tool and pressing down on an area of your picture. The longer you hold down on it, the darker or brighter you will make that area. If there are any unwanted effects, you can use the Dodge tool to bring back the original color.

Sharpening Photos

There are times when you may need to sharpen your photo, especially if it is not coming out enough. The best way to do this is by using the Sharpen tool in Photoshop.

The Sharpness tool can easily be found in Image > Adjustments > Sharpness in Photoshop. The best way to use the Sharpen tool is by going over any parts in your photo that need more clarity. Too much sharpening can cause a photo to look grainy and pixelated, so a light hand should be used when sharpening photos in Photoshop.