Unlocked after a cool down period.
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Good because I wanted to make a point. Rents ARE crazy in some areas. Rent for a small one bedroom in my area is now ÂŁ2,200 pcm.
our family home burnt down, my mother was killed in the fire. I arranged new housing, clothing etc funeral and dealt with insurance, police, etc all while working a demanding job. I had to hire a lawyer as the insurers were being disgusting, so bad that they were fined millions of dollars by the Canadian Supreme court. So your situation while sad, isnât a good reason for not making changes in where you live.
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I think she should move to a cheaper place and stop doing Air illegally. Get a job that isnât so risky. Thatâs it.
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Hey, I was trying to offer a solution. If I was in a situation where my rent was $5k and I was depending on ABB to cover it, I would look into moving. It is absurd that in SF TODAY you are paying $5k for 2 bedrooms, not in the Millenium tower. Rents have cooled off substantially in the past two years, and you should take advantage.
We have been ABB in SF since 2010, and I am also VERY familiar with ABB, the founders, numerous employees, etc. Hereâs a shock, I also work in tech, as does my husband, as does pretty much everyone else in this fabulous 7x7 city. Working 2 years for pure equity, unless you are the founder/cofounder, seems a bit steep, not to mention at this point if you arenât turning a profit you should at least have secured some funding from an F&F round, angels, or possible series A.
You posted on an already hotly debated topic, about how short term loans are not a good long term solution.
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So you were making $200+k but were unable to save up some money to pay your rentâŚ
Is no-one reading what @Nads415 has written ?
Yes, she had a job that paid close to $200K. She saved and saved so she could do a start-up. Started working for the start-up when her room-mate committed suicide while she is UNDER A LEASE! So, she is trying to do what she can to pay for the apartment, not break her lease [which is a killer for your credit score], and maintain her sanity.
Rents have cooled off in SF which is why her landlord is not interested in letting her out of her lease. The landlord would make less money! I donât think using these loans is a good idea for all kinds of reasons, and it might, in the long run, ding her credit score even more, but it isnât my risk to take.
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I get where you are coming from, and want to add a little background about leases here in SF. After the first 12 months, you are on a month to month lease, this is Rent Board Ordinance and can not be broken by the landlord except for specific âJust Cause(s)â put out by the Rent Board. The tenant, however, can give 30 days notice at any time after the initial lease is over. I know this sounds crazy, but we live in a very RENTER friendly city, and landlords have very limited, and specific rights.
Her entire story seems very far-fetched to me, given that most landlords here would never let a tenant do ABB and also that Nads listen says âDiscretion is a MUSTâ, makes me think she is skirting the rules.
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I havenât updated the profile as I set it up a while back.
Regardless the fact is Iâm registered & LL knows.
For clarity:
I USED to make 6 figures saved up to work on a HARDWARE startup for equity.
Money was FINE until my roommate passed.
Point is that I found payfully helpful for my slow dec.
Thatâs all I wanted to add.
THANK YOU!
Finally someone who read my post and didnât criticize and accuse me of illegally airbnbing.
I have a strategy in place with LL to reduce rent according to market level. But thatâs irrelevant to my original post.
@Chris Make sense?
Hello everyone!
I am Daniela Birnbaum, co-founder at Payfully.
First of all, I would like to thank @Nads415 and @azreala for trying Payfully, if you have any feedback pls email me directly at: daniela@payfully.co
I appreciate all comments in this forum and I want to clarify some of the questions mentioned here.
When a host applies for an advance payment with Payfully and gets approved, the funds are sent within 24-48hrs. Once Airbnb pays the host, we get paid back. Letâs imagine a host has a booking for $1,000 in 30 days and requests the payment in advance, Payfully would send him $970 in 24 hrs directly to his/her bank account. Thirty days later, when Airbnb pays the host, we charge the hostâs bank account for $1,000. Everything is done through our platform where hosts have full access to their future earnings and transparency in the fees. Hosts decide which bookings they want in advance, it doesnât have to be all of them.
If a cancellation occurs, we waive the fee, that means the host would have to pay back only $970 and not $1,000. The host would decide when and how to pay us back within the next 60 days or he/she can simply pay with a different upcoming reservation. No extra fees!
Hosts have been refused when requesting a loan or credit to a bank if based only on their Airbnb income. With Payfully, hosts can cash out their upcoming reservation whenever they want!
Our users need the advance payments mainly to reinvest on their properties (buy a new bed, remodeling a bathroom or kitchen, etc). This allows them to have a higher price per night, which means extra Airbnb income in the near future.
Other reasons why people have used Payfully are:
-Make sure to pay their mortgage on time
-Pay their credit card or bills
-Book a trip
Best,
Daniela
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While we can allow your explaination and clarification, we canât allow the links or the overt self promotion. Iâm going to delete this.
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I wasnât sure, thatâs why I did it in a separated comment.
Thanks for letting me clarify the questions.
Daniela
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And that is where the problems start.
It has been confirmed many times on this forum that investing in your property does not lead to higher prices, and investing by lending money, will only get you into trouble.
I can understand that you would take a short term loan for a repair, to avoid cancellation, but using it for improvement is an absolute no-go. There is no reason to not wait for 30 days and save up the money.
I would advise anyone to stay away from services like playfully, once you start, you will only get sucked deeper into the swamp.
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payfully is part of a new group of short term lending companies targeting the âsharing economyâ businesses.
For uber/lyft there was âdailypayâ but both services basically shut them down in favor of offering their own âinstant payâ programs.
Dailypay charged $1/day for any daily advances. you had to set your uber/lyft payment method to their bank account, so theyâd transfer the accumulated value then get paid back out of the thursday automated payment. Since they call it a âfeeâ it is a way around the usury laws which cap the effective annual interest rate on loans, although if the fee is relative to the value of the loan then it could be considered an interest rate.
In California âqualified lendersâ are exempt from usury laws but still have limits placed on interest rates.
I often caution people in a business such as this to not spend money before they get it. Aside from losing some of your revenue to interest/fees you may never get the money to repay the loan. It might be nice to borrow against peak season bookings in the low season to even out revenue but you should do this by holding back some of your profits in peak rather than borrowing against potential future revenue.
In many cases these per booking or by the day loans have higher rates than a standard credit card. if you borrow $1000 on a credit card and take 2 months to pay it back you pay
$24 in interest. In @Daniela_Payfully example, you pay 30, so you need to decide where the trade off is. if you will need 3 months to pay off the credit card then go with playfully as a loan, otherwise just use your card to manage short term cash flow.
Most people can get a credit card. If you need 10 grand to do major improvements, itâs unlikely youâll have enough advance bookings to even cover such a loan.
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Iâll assume you didnât read @azrealaâs post on how Payfully works. The loan is against a booking not amounts like 10k.
I read and I fully understand how payfully works.
My answer was intended to be more complete including alternatives and why payfully isnât better than just using your credit card.
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And did you see the bit where it was noted that some people earning money through the sharing economy might not have access to traditional lending ?
As has been noted a painful number of times, this product is not for everyone.
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