Wealth Wednesday 2/4: Tariffs, Rates, and Side Hustles – What’s Making (and Taking) Your Money

Let’s dive into this Wednesday’s Wealth report!

• Tariff War Update

• One Time Close New Construction Loan

• Mortgage Interest Rates

• Side-hustle of the Week

The Art of the Deal: Tariffs & Trade Wars

United States' Actions:

• President Donald Trump has imposed a 10% tariff on Chinese imports, effective today.

China's Response:

• In retaliation, China announced:

  • A 15% tariff on U.S. coal and liquefied natural gas.

  • A 10% tariff on U.S. crude oil, agricultural machinery, and large-engine vehicles.

  • An antitrust investigation into Google, focusing on its Android operating system's impact on Chinese phone manufacturers. (LOL Google isn’t even in China)

Developments with Canada and Mexico:

• The U.S. had planned to implement 25% tariffs on imports from Canada and Mexico.

• After negotiations, a 30-day delay was agreed upon, during which:

  • Canada and Mexico committed to deploying 10,000 troops each to their respective U.S. borders to address concerns over illegal immigration and drug trafficking.

How Does This Affect Interest Rates:

Rates could go to the moon!

The tariff war could push mortgage rates higher by increasing inflation, as higher import costs make goods more expensive. If inflation rises, the Federal Reserve may keep interest rates high, making borrowing more costly. On the other hand, market uncertainty could drive investors to buy U.S. Treasury bonds, which might lower yields and help bring mortgage rates down. Ultimately, the impact on mortgage rates depends on whether inflation or economic slowdown becomes the bigger concern. We have not seen any real effects yet.

One-Time Close New Construction Loan

Our One-Time Close New Construction Loan simplifies the process, combining construction and permanent financing into a single closing.

Conventional and VA Options

• Single Closing: One transaction covers both construction and permanent financing, reducing costs and hassle. Saves you tons of fees by avoiding refinancing.

• Cost Savings: Borrowers pay one set of closing costs, and builders avoid upfront construction costs.

• Float Down Rate Option: Borrowers may qualify for a lower interest rate through UWM’s float-down option after construction.

Loan Features

• Conventional Loans:

  • 15- & 30-year fixed, 7/6 & 10/6 ARMs

  • Primary, second homes, and investment properties

  • Max 95% LTV; minimum 700 FICO

• VA Loans:

  • 30-year fixed

  • Primary residences only

  • Up to 100% LTV; minimum 580 FICO

Program Details

• Eligible Uses:

  • Purchase a lot and build a home.

  • Refinance a lot already owned to finance construction.

• Construction Period: Up to 11 months, followed by permanent financing.

• Fees: Includes construction draw fee, final inspection fee, and title date down fee. VA loans include these in the construction budget.

How It Works

1. Approval: Builder/contractor and project approved by our lender and builder.

2. Closing: Borrower signs a single closing for both construction and permanent financing.

3. Construction: Our builder manages funds and ensures work is completed as planned.

4. Modification: Once construction is complete, the loan converts to permanent financing.

Mortgage Interest Rates

Side-hustle of the Week

Photobooth Rental Business

Starting a photobooth business is simple and can make great money fast. Here’s how to get started:

1. Get Your Gear

• Buy a photobooth setup ($3,000–$5,000).

• Add props (fun hats, signs), a backdrop, and good lighting.

• Get software for photo customization and social sharing.

2. Set Your Pricing

• Charge $500 for 3 hours, including setup and teardown.

• Offer extras like:

  • More hours

  • Custom photo templates

  • Themed props

3. Spread the Word

• Post photos/videos on Instagram, Facebook, and TikTok.

• Build a simple website with your pricing and booking info.

• Partner with wedding planners and event venues for referrals.

4. Book Events

• Start small with 1 event a month = $500/month ($6,000/year).

• Scale up to 1 event a weekend = $2,000/month ($26,000/year).

5. Keep Costs Low

• Monthly costs are minimal:

  • Props: $50–$100

  • Software: $20–$50

  • Marketing: $50–$100

6. Maximize Your Earnings

• Upsell extras like:

  • Scrapbooks ($75–$150)

  • Green screen backgrounds ($50–$200)

Why It Works

• Quick ROI: Pay off your investment in ~10 events.

• High Profits: After covering costs, most of your income is profit.

• Flexible Schedule: Do 1 event a month or 1 every weekend—it’s up to you!