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HOW PROPERTY FLIPS ARE CONSIDERED A WORTHWHILE INVESTMENT

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HOW PROPERTY FLIPS ARE CONSIDERED A WORTHWHILE INVESTMENT

House flipping refers to an investment process. Investors acquire an undervalued home, renovate it to make it more valuable. They then sell it for a far higher price than what they initially paid.

It is a shorter-term investment compared to other real estate types. Most property flips occur on single-family residential properties, which get completed within a few months.

Investors can gain crucial exposure to different real estate markets when flipping a home. In the long term, it can help them to achieve financial independence. In particular if they are beginning to build a new career.

It is a unique area to get into, and with the support of property flip beginner guides, it makes it a possible route to take.

If you are an investor looking into the world of property flips, here are a few reasons why they are a worthwhile investment.

 

Helps To Fund Any Property Type

If you want to buy an apartment in Chicago or a family home in Texas to fix and flip, it should not be an issue. Regardless of the property type you want, as an investor wishing to purchase, having a fix and flip loan will help you get by.

Fix and flip loans can work for any property type. As a unique type of loan, it does not have any form of limitations. As such, investors can choose different states or property types they want to invest in and support. For example, if the property is an empty studio apartment or a derelict property, you will find no issues sustaining a fix and flip loan.

Therefore, if you are an investor wanting to make a quick profit and fund renovations, look into fix and flip loans to fund your project. There are numerous hard money lenders available who would be willing to finance your project. After seeing the potential that it has to do well, they will be happy to contribute.

 

No Prepayment Penalties With Fix And Flip Loans

Opting for a fix and flip loan, instead of other funding methods or bank loans, is the minimal prepayment penalties to cover. A common fear amongst many investors is how much they will have to pay back to the financial institutions, especially if they do not pay on time or whether there will be any issues with the loans. Those who want to fix and flip lines of credit do not have to worry about this issue.

When borrowing from traditional financial institutions, they will expect you to pay excess money. In addition to this, you might also be penalized if you pay the loan off before the end period. Having a prepayment penalty can have an impact on your financial standing.

However, if you have a fix and flip loan, this will not be an issue that affects you.

 

Rapid Approval Times

For investors, the primary benefit of using a fix and flip loan is the possibility of earning a fast approval rate.

Finding a lender that offers fix and flip loans in your state is simple. For instance, Larry The Lender offers out a fix and flip loans in Texas. Lenders such as these are interested in the entire process. They want to know how much they can make on the return and the quality of the project. Alongside this, they also want to understand the likelihood of selling the property and property location.

Banks focus on the person that they are lending to and their reputation. The person or company lending you a fix and flip loan are more lenient.

These loans focus on the real estate market. They are not about the credit score or the history of the person (investor) in need of the loan at the time. Due to this, it makes it far easier for fix and flip loans to be given to investors who require quick cash to discover the potential of their new property. It is in addition to selling the land and the house for a substantial return.

 

The Bottom Line

Investing in house flipping is a good idea, especially for the right investor. Paying for a real estate property as an active investor or a passive investor can provide you various benefits from earning fixed and flip loans.

Before you consider getting involved in this type of real estate, ensure you have taken the time to go over all the factors. It will help in making the process of flipping properties a more enjoyable and worthwhile experience.

A fix and flip loan are relatively easy to obtain, requires a shorter approval time, avoids any prepayment penalties, and you can apply to any property type. As a result, you will have the funds for all real estate adventures you wish to embark on.

 

Business

The Evolution and Challenges of Crypto Regulation

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CRACKING THE CRYPTO CODE

Cryptocurrency regulations are evolving quickly around the globe with authorities responding to developing risks professed by criminals exploiting the latest payment methods to mask and launder the profits from their crimes.

According to William Je Founder & CEO, Hamilton Investment Management Ltd, this has warranted the introduction of a more stringent level of due diligence by additional bodies to introduce preventative measures.

William Je Founder & CEO, Hamilton Investment Management Ltd explains: “The past ten years has seen several structural changes in Know Your Customer (KYC) and anti-money laundering (AML) regulations in both Europe and across the world. High-profile money laundering cases and the penetration of illegal monies into global markets have caught the attention of regulators.

“As regulators improve their understanding of these criminal practices, AML requirements have also been improved. However, these improvements have been a reactive process.”

To address the challenges of the blockchain ecosystem, the European Union has started to introduce financial regulations that further bolster the regulatory system in order to improve licensing models. Many member states are regulating crypto assets individually, and Germany is leading the way in being the first to regulate.

Je continues: “These national driven regulations clearly point to a future pathway for crypto companies, outlining the requirements for obtaining and maintaining a financial license from the regulator.

“Compliance, however, is to my mind essential as it not only boosts investor confidence but adds a necessary layer of protection to investors.”

As crypto evolves, so have regulatory bodies’ efforts to monitor, address and enforce restrictions. The most prominent is the Financial Action Task Force (FATF), which details guidance and determines best practices in anti-money-laundering practices and combating the financing of terrorism.

FATF Recommendations number 16, better known as the ‘travel rule’, which requires businesses to collect and store the personal data of the originators and the beneficiaries in blockchain transactions, is the most notable.

Je concludes: “What does this mean? In theory, access to this data will enable authorities to have better oversight and enforcement of crypto market regulations. In other words, they’ll know exactly who is doing exactly what.

As we have always argued – transparency is key. We need to regulate crypto as an asset class with efficacy, which necessitates legislation that is applicable specifically to digital assets and does not hinder the market.

The criminal financial trade which arguably encompasses money laundering, illegal weapons sales, human trafficking, is also international. Thus, cracking down on it is, out of necessity, an international effort.

The decentralised nature of blockchain, which runs contrary to the central-server standard we know and use nearly everywhere, presents a formidable challenge here. Rules and regulations for traditional financial institutions are being implemented wholescale into the crypto sector. We believe that this is arguably wrong footed as it ignores the innovation and uniqueness this asset class and its underlying technology entails.

Traditional forms of regulation from the fiat world do not reciprocally apply to every aspect of crypto nor to the fundamental nature of blockchain technology. However well-intentioned they may be, because these imposed regulations are built on an old system, they must be adapted and modified.”

 

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How bug bounty programs can help financial institutions be more secure

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Rodolphe Harand, Managing Director at YesWeHack

 

Financial services have been one of the most heavily targeted industries by cybercriminals for several years. One alarming stat from the Boston Consulting Group found these firms to be 300x as likely as other companies to be targeted by cyberattacks.

Furthermore, the pandemic has led to a significant increase in the number of cyberattacks targeting financial institutions (FIs), with around 74% experiencing a spike in threats linked to COVID-19.

With FIs holding some of the largest collections of sensitive and private data, it’s clear they will remain an attractive target for malicious actors, especially as any data stolen can be used for fraudulent activities. This leads to the reputational damage of the financial entity that was compromised and has a knock-on effect in terms of monetary and reputational damage to affected customers.

For CISOs at FIs, the conundrum faced is how do you protect intellectual and customer data, and ensure accountability and transparency for clients and stakeholders, at a time when the pandemic has created budget constraints. Research from BAE Systems found that last year alone, IT security, cybercrime as well as fraud and risk departments had their budgets cut by a third.

Below we look at how bug bounty programs can help to address these pressing issues.

 

Protecting valuable data

Protecting customer and intellectual data has always been a top priority for FIs. However, as opportunistic cybercriminals have a lot to gain by stealing this valuable data, there is a constant evolution of threats, which means FIs must stay on their toes. By deploying a bug bounty program, FIs can work with ethical hackers that have a wealth of experience and unique skills when it comes to identifying security weaknesses within a FI’s defence, thus helping to implement effective security measures to help prevent data breaches.

Building trust among various stakeholders such as customers, suppliers and investors is critical for achieving business goals. By deploying a bug bounty program, FIs send out a message that they care about protecting the security of the data of those they work with – which in turn can have a cascading effect resulting in better business performance.

 

Improving accountability  

For FIs to win customers and keep them happy, amidst the growing threat of neo banks and customer-centric fintech organisations, speed of innovation is crucial. As such, many FIs have adopted an agile approach to build, test, and release software faster to bring online and mobile banking solutions to market quicker. However, this can create frictions between development and security teams. Security mandates are deemed to be unnecessarily intrusive and a cause of delayed application development and deployment.

Yet, with DevOps teams needing to build and deploy applications faster than ever before, an epidemic of insecure applications has emerged. According to Osterman Research, 81% of developers admit to knowingly releasing vulnerable applications, while research from WhiteSource found 73% of developers are forced to cut corners and sacrifice security over speed.

With developers often not having the time, tools, skills, or motivation to write impeccably secure code, there is an evident need to provide developers with more support when it comes to building applications securely Fortunately, bug bounty programs can provide a “fact-based” financial implication of inherent security flaws within the process. This makes it possible to hold development teams and service providers accountable for creating or delivering insecure products, thus addressing inherent security gaps within the business units and helping to drive continuous improvement.

Moreover, security awareness and education of developments teams can be improved significantly for those developers that are directly involved with the management of vulnerability reports for their bug bounty programs. This is because, the mere fact of exchanging information with ethical hackers, or assimilating the thinking of a potential hacker and having proof of concepts of vulnerability exploitation on their application components, naturally accelerates consideration of security early in the development stage and provides ongoing learning.

 

Get more return on your investment

According to Gartner, 30% of CISOs effectiveness will be directly measured on their ability to create value for the business. When security budgets are challenged, CISOs need to demonstrate business value through initiatives designed to enhance efficiency whilst stretching the dollar.

This is where bug bounties can help tremendously. Compared to conventional penetration testing, bug bounty offers a fast, complete, and measurable return on your security investment, with businesses only paying out for successful discovery of vulnerabilities. Equally, businesses get access to hundreds of ethical hackers that can test their programs, each with their own unique skillsets as opposed to only one skilled researcher testing the network. This results-driven model ensures you pay for the vulnerabilities that pose a threat to your organisation and not for the time or effort it took to find them.

Bug bounty programs also deliver rapid vulnerability discovery across multiple attack surfaces. With this approach, organisations receive prioritised vulnerabilities and real-time remediation advice throughout the process to accelerate the discovery of, and solution to vulnerabilities.

Another appeal of bug bounties is that due to the continuous nature of testing, more vulnerabilities are found over time as opposed to pen-testing. This is key to financial institutions that require agility to keep up with the continuous roll-out and updates of applications.

 

The cornerstone to a successful security programme

The risk posed to financial institutions by cyber threats will only continue, as evidenced by the number of data breaches seen in recent times. The COVID-19 pandemic has only exacerbated these risks, especially with almost all FIs having needed to shift to a remote working environment – which has only widened the attack landscape.

For FIs, a bug bounty program should be considered a fundamental cornerstone of any security strategy, with it being a modern-day cybersecurity solution that is well-equipped to tackle the immediate security challenges they face. In doing so, FIs will not only prove to customers and stakeholders their commitment to data protection and security but this will also be help them to avoid the monetary damages that could be imposed by regulators if a breach was to take place.

 

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