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Which Precious Metals ETF is the Best Fit? Sprott Gold Miners ETF (SGDM) or abrdn Silver Fund (SIVR)?


Sprott Gold Miners ETF (SGDM -5.26%) offers equity exposure to North American gold miners, whereas abrdn Physical Silver Shares ETF (SIVR -5.74%) tracks the spot price of physical silver bullion directly.

Investors seeking exposure to precious metals must choose between owning the physical commodity and owning the companies that extract it. While both funds provide hedges against market volatility, they respond differently to commodity price swings and to the operational risks inherent in the global mining sector.

SGDM & SIVR: Performance Comparison

Key Financial Metrics

Sprott Funds Trust - Sprott Gold Miners ETF Stock Quote

SGDM – Sprott Funds Trust – Sprott Gold Miners ETF

$69.78

–5.26% (–$3.88)

52wk Range

$55.46 – $96.50

Dividend & Yield

$0.73 (0.99%)

Abrdn Silver ETF Trust - Abrdn Physical Silver Shares ETF Stock Quote

SIVR – Abrdn Silver ETF Trust – Abrdn Physical Silver Shares ETF

$53.00

–5.74% (–$3.23)

52wk Range

$43.85 – $115.26

Dividend & Yield

N/A

Snapshot (cost & size)

Metric SGDM SIVR
Issuer Sprott Aberdeen Investments
Share price $74.94 (as of 2026-10-09) $57.60 (as of 2026-10-09)
Expense ratio 0.46% 0.3%
1-yr return (as of Oct. 9, 2026) 23.9% 22.9%
Dividend yield 1.0% n/a
Beta 0.54 0.50
AUM $656.2 million $4.1 billion

Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The abrdn Physical Silver Shares ETF is more affordable for long-term holders, carrying a 0.3% expense ratio compared to the 0.46% fee charged by the Sprott Gold Miners ETF.

Performance & risk comparison

Metric SGDM SIVR
Max drawdown (5 yr) (45.0%) (52.3%)
Growth of $1,000 over 5 years (total return) $3,078 $2,640

What’s inside

The abrdn Physical Silver Shares ETF seeks to replicate the market value of physical silver by holding bullion in secure vaults and aims to track the spot price after accounting for operating expenses. Its largest positions include physical silver at 100.00%. Because it tracks a commodity rather than operating businesses, its sector breakdown is not reported. The fund was launched in 2009.

In contrast, the Sprott Gold Miners ETF holds a portfolio of 48 companies rather than raw gold, focusing on gold producers in the United States and Canada. Its largest positions include Agnico Eagle Mines Ltd (AEM -5.20%) at 9.80%, Newmont (NEM -4.03%) at 7.58%, and Barrick Mining (ABX -4.51%) at 7.50%. It concentrates 100% of its assets in the basic materials sector and usually commits 90% of its net assets to its underlying index. The fund was launched in 2014.

For more guidance on ETF investing, check out the full guide at this link.

Which looks like the better buy

When comparing the Sprott Gold Miners ETF (SGDM) and the abrdn Physical Silver Shares ETF (SIVR), investors should consider several key factors. Let’s see what they tell us about each fund.

First, we should discuss the differing strategies of each fund. SGDM is a gold ETF, but it holds shares of gold-mining companies rather than physical gold bullion. It therefore carries risks beyond the price of gold alone, as labor disputes, supply chain disruptions, and natural disasters can all affect the prices of the stocks it holds. SIVR, by contrast, is a silver ETF that holds physical silver. Its performance is tied to the spot price of silver.

Two other important factors are historical performance and income potential. As for performance, SGDM has generated a total return of 190% over the last five years, with a compound annual growth rate (CAGR) of 23.7%. SIVR, meanwhile, has delivered a total return of 153%, with a CAGR of 20.4%. As for income, SGDM has a dividend yield of 0.97%, while SIVR pays no dividend whatsoever.

One final factor to weigh is cost. SGDM has an expense ratio of 0.46%, and SIVR has an expense ratio of 0.30%. Both of these rates are around the average for the ETF universe. For context, a person who invests $10,000 in each fund should expect to pay $46 in annual fees for their SGDM shares and $30 in annual fees for their SIVR shares.

In summary, although SGDM and SIVR are both precious metals ETFs, they have several key differences. SGDM, with its holdings of gold miners, has delivered higher returns and higher income. However, SIVR offers pure-metal exposure, untethered from operational risks, and lower fees. In a head-to-head matchup, investors are likely to be drawn to whichever fund more closely matches their own investment profile. Those willing to accept greater risk may choose SGDM, while those who are more cost-conscious may select SIVR.

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How One Company Used Disciplined Chaos to Drive Innovation


In 2006, Mostafa Terrab, one of this article’s co-authors, was appointed directeur général of OCP, a Moroccan fertilizer company. He was immediately charged with transforming the financially struggling phosphate-rock producer into a firm intent on feeding the world sustainably through high-quality plant and animal nutrition.



What Is College Counseling? What It Covers, What It Costs, And When To Start


Key Points

  • College counseling covers five jobs: building the college list, setting a financial plan, mapping a testing strategy, coaching the essays, and managing applications and deadlines.
  • Public school counselors spend about 21% of their time on college advising and carry an average caseload of 372 students, so most families do much of this work themselves or pay for help.
  • Independent counselors charged a mean of $230 an hour, or $4,000 to $7,500 for a full package. Formal counseling should start junior year for most students, but the money decisions start in 9th grade.

College counseling is the work of getting a student from “I think I want to go to college” to an enrolled freshman at a school the family can afford. It covers choosing where to apply, figuring out what each school will cost, planning for the SAT or ACT, writing the essays, and hitting a dozen deadlines over about 18 months. Some of that help comes free from a high school counselor, and some families pay for it, which is why TCI tracks how much a college admissions consultant costs.

What most counseling gets wrong is the order. Admissions comes first and money comes last, which is how a family ends up in April holding an acceptance letter and a $35,000-a-year gap. What follows covers each piece of college counseling, what it costs, who should pay for it, and a grade-by-grade timeline, with the financial plan for paying for college treated as the first decision rather than the last.

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What Is College Counseling?

College counseling is guidance that helps a high school student plan for, apply to, and pay for college. Three kinds of people deliver it: the school counselor assigned at a public or private high school, an independent educational consultant (IEC) a family hires, and the staff of free college access programs run by nonprofits and the federal government. All three cover the same core jobs, and they differ in how much time they have for one student and whether the cost of college is part of the conversation.

Time is the constraint. The American School Counselor Association reports a national ratio of 372 students per school counselor in 2024-25, against its recommended 250 to 1. Those counselors also handle scheduling, mental health, and graduation requirements, and a NACAC survey reported by Education Week found public school counselors spend about 21% of their time on college advising, compared with 47% at private schools. At 372 students and one-fifth of a work year, each student gets a few hours of college advising across four years, which is why the college application checklist ends up on a parent’s kitchen table.

Independent counselors fill that gap for a fee. The Independent Educational Consultants Association (IECA), the largest professional group for private counselors, counted about 2,600 members in 2022, and families work with them by the hour or through a package that runs from sophomore or junior year through enrollment. TCI has reviewed the major firms, including Empowerly, CollegeAdvisor, and Solomon Admissions Consulting.

What Does A College Counselor Do?

A college counselor does five jobs: builds the college list, sets the financial plan, maps the testing strategy, coaches the essays, and manages the applications. A sixth job, sending transcripts and the school report, can only be done by the high school, which is one reason even families who hire a private counselor still need a working relationship with the one at school. The table below shows what each job includes and who typically handles it, and the sections that follow take them one at a time, starting with the one that should come first: what the family can pay.

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What College Counseling Covers: 5 Core Jobs
Job What It Includes School Counselor Private Counselor
College List Reach, match, and likely schools based on grades, scores, major, size, and location Limited Core Service
Financial Fit Budget ceiling, net price estimates, FAFSA and CSS Profile, merit aid strategy Limited Varies
Testing Plan SAT vs. ACT, test dates, retakes, whether to submit scores Yes Yes
Essay Coaching Brainstorming, drafts, feedback on the personal essay and supplements Limited Core Service
Application Management Deadlines, recommendation letters, activities list, interviews, award comparison Yes Yes
Transcripts And School Forms Official transcripts, school report, counselor recommendation School Only Cannot Provide
Source: The College Investor.

What Financial Considerations Should College Counseling Cover?

Good college counseling sets a budget ceiling before the college list exists, then checks every school against it with a net price estimate. A net price is what a family pays after grants and scholarships, and it has little to do with the sticker price: private colleges now discount tuition 56% on average, so a $75,000 school and a $35,000 school can cost the same family the same amount. Every college has been required to post a net price calculator since 2011 under the Higher Education Opportunity Act, and the Department of Education’s net price calculator center explains how they work, though TCI’s reporting shows college cost estimates are far from accurate and should be treated as a range.

The ceiling itself is simple arithmetic. Add what the family has saved, what it can pay from monthly income, what the student can borrow on their own, and what the student can earn. The example below shows how a family with $40,000 in a 529 plan and $800 a month of room in the budget lands at a ceiling of about $28,100 for freshman year.

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Setting A College Budget Ceiling: Example Family
Source Of Funds How It Was Calculated Per Year
529 Plan Savings $40,000 balance spread over four years $10,000
Parent Cash Flow $800 a month from current income $9,600
Student Federal Loan Dependent freshman Direct Loan limit $5,500
Student Summer Earnings Part-time and summer work $3,000
Maximum Net Price The number every school on the list has to clear $28,100
Illustrative example. Student loan limit rises to $6,500 in year two and $7,500 in years three and four. Source: The College Investor.

The student loan line matters more than it used to. A dependent freshman can borrow $5,500 in federal Direct Loans, rising to $7,500 a year by junior year with a $31,000 total, and the full federal student loan borrowing limits haven’t changed for undergraduates. What changed on July 1, 2026 is the parent side: Parent PLUS loans are now capped at $20,000 a year and $65,000 total per student under the One Big Beautiful Bill Act, which closes the escape hatch families used when a school came in over budget. Anything above those caps means private student loans with a cosigner, or a different school.

A counselor who takes money seriously will also walk the family through the aid forms. The FAFSA produces a Student Aid Index, which drives federal and most state aid, and TCI’s financial aid calculator estimates it in a few minutes. A group of mostly private colleges also requires the CSS Profile, which the College Board makes free for families earning up to $100,000. The counselor should be able to explain which schools on the list meet 100% of demonstrated need, which ones are no-loan colleges, and which ones hand out merit scholarships at private colleges to students in the top quarter of the applicant pool.

That last point is where admissions strategy and money strategy meet. A student applying as a top-quarter candidate at a school that discounts heavily will get a better net price than the same student applying as a reach candidate at a school that doesn’t, and a counselor who only talks about getting in will never raise it. It’s the same logic behind TCI’s list of colleges that offer free tuition below an income cutoff: the school’s aid policy, not its sticker price, decides the bill.

How Does A Counselor Help With College Choice?

A counselor turns a vague preference (“somewhere warm, not too big”) into a list of eight to twelve schools sorted into reach, match, and likely categories, and every school on it should clear the budget ceiling. Likely schools are the ones that get skipped in the rush to build the top of the list, and they’re the ones that matter most, because a likely school the student would be happy to attend at a known net price is what makes an Early Decision gamble or a long reach affordable. Free tools such as the College Scorecard and the sites in TCI’s college comparison tools roundup cover the raw data, and a counselor adds judgment about fit.

That judgment is the part families pay for. Counselors read the signals in why college acceptance rates keep dropping, know that the published rate at a public flagship hides a much lower rate for out-of-state applicants, and will say out loud that applying out of state at a public university is a full-price decision for most families. They also know what admissions officers weigh and how it differs by school, which TCI covers in what colleges look for in students.

A counselor also protects a student from false precision. Online chance calculators feel scientific, but TCI’s look at how accurate college admissions calculators are found they can’t see the things that decide close cases: institutional priorities, major capacity, geography, and the rest of the applicant pool that year. A good list is built to survive being wrong about any one school.

What Does Test Prep Look Like In College Counseling?

Counselors don’t tutor for the SAT. They build the testing plan: which test, which dates, how many attempts, and whether to submit the score to each school. The plan starts with the PSAT/NMSQT in October of junior year, moves to a first SAT or ACT in the spring of junior year, and leaves room for one retake in the fall of senior year. TCI’s breakdown of SAT vs. ACT vs. CLT explains how to pick between them, and the math course sequence a student follows from 9th grade has more to do with the eventual score than any prep course.

Whether to test at all stopped being a question for a growing list of schools. MIT, Dartmouth, Yale, Brown, Harvard, Penn, Cornell, Stanford, and Notre Dame are among the schools that brought back testing requirements, and TCI maintains the full list of colleges requiring SAT and ACT scores again. At schools that stayed test-optional, a counselor’s job is to compare the student’s score to the school’s published middle 50% range and advise on submission school by school.

The prep itself is a separate purchase, and a cheap one if the family wants it to be. The College Board’s free Bluebook practice tests and Khan Academy’s official SAT prep cover the content for nothing, and TCI’s reporting on how much SAT prep costs and the best SAT prep courses covers paid options from self-paced courses to private tutoring. Scores still carry weight on the money side even where they don’t on the admissions side, because merit aid formulas at many schools are built on GPA and test scores.

How Do Counselors Help With College Essays?

Essay coaching is the service families most associate with private counseling, and the one with the clearest ethical line. The Common App personal essay runs up to 650 words on one of seven prompts, and selective schools add their own supplements, so a ten-school list can mean 15 to 25 separate pieces of writing. A counselor helps the student find the story, structure the draft, and revise it, and keeps the whole stack on a schedule that matches the application deadlines.

The line is between coaching and writing. A counselor who edits a sentence for clarity is doing the job. One who rewrites the essay in an adult’s voice is committing fraud on the student’s behalf, and admissions readers who see thousands of 17-year-old essays a year can tell. Colleges have also set their own rules on AI-assisted writing, and the safest assumption is that anything a student submits must be their own work in their own words, the same standard that applies when colleges look at a student’s social media.

Timing is the practical advice. The personal essay should be drafted the summer before senior year, before classes, sports, and seven supplements compete for the same weeks. Essay-only hourly help is also the least expensive way to buy counseling, which TCI’s piece on what a college admissions consultant costs breaks down.

How Do Counselors Manage Applications And Deadlines?

Application management is project management. The Common App opens August 1, Early Action and Early Decision deadlines fall on November 1 and 15 at most schools, Regular Decision deadlines cluster between January 1 and 15, and decisions arrive in March and April with a May 1 commitment date. A counselor tracks recommendation letters (asked for in the spring of junior year), the activities list, interviews, and application fee waivers across every school on the list.

Early Decision deserves its own conversation because it is a financial decision disguised as an admissions one. ED is binding, so a family that applies early to a school without first running its net price calculator has agreed to attend before it knows the price. The counselor’s job is to make sure that’s a deliberate choice, and to know how changing a college decision after acceptance works if the aid offer doesn’t match the estimate.

The job doesn’t end at acceptance. In April, a counselor lays the award letters side by side, strips out loans so the family compares grants to grants, and identifies where a financial aid appeal has a case, such as a competing offer from a peer school or a change in family income.

How Much Does College Counseling Cost?

College counseling costs anywhere from nothing to six figures. The high school counselor is free, as are federal TRIO programs such as Upward Bound and nonprofit college access programs for students who qualify. Independent counselors charged a mean of $230 an hour in IECA’s 2022 State of the Profession survey, and most full-service packages ran between $4,000 and $7,500, with a mean of $6,450, up more than 25% in three years. New England and urban areas run about 10% higher, and TCI’s college admissions consultant cost breakdown covers what families get at each price point.

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What College Counseling Costs In 2026
Option Typical Cost Best For
High School Counselor Free Transcripts, school forms, deadlines, basic list and testing advice
College Access Programs Free First-generation and lower-income students who qualify for TRIO or a nonprofit program
Hourly Independent Counselor $230 an hour on average Essay feedback, a list review, or a single financial aid question
Full-Service Package $4,000 to $7,500 (mean $6,450) Families who want one person managing the whole process from junior year on
Premium And Boutique Firms $10,000 to six figures Families targeting the most selective schools who will pay for former admissions officers
Source: IECA State of the Profession 2022. The College Investor.

The premium tier is a different product. Firms staffed by former admissions officers at selective schools charge $10,000 and up, and the best known charge far more. TCI has reviewed several, including Command Education, Top Tier Admissions, Spark Admissions, and Prepory, and the pattern is the same: the fee buys time and attention, not a different set of admissions rules.

Two cost details get missed. The same IECA survey found 77% of members offer lower-cost options such as hourly work, smaller plans, or sliding scales, and 79% do some pro bono work, so a family that can’t afford a package can still buy three hours of list review and essay feedback. The other detail is tax treatment: college counseling is not a qualified 529 plan expense, so it comes out of pocket.

Do You Need A Private College Counselor?

Most families don’t, and the ones who benefit most share a few traits. A private counselor earns the fee when the student attends a large public high school with a caseload near or above the 372-to-1 national average, when the student is first-generation or has learning differences that complicate the process, when the family is chasing merit aid across many schools, or when the parents want to buy back the 18 months of project management. Recruited athletes are a special case, and TCI’s look at the best niche sports for college admissions explains why that path has its own timeline.

Families who can skip it include those with a strong school counseling office, a clear in-state plan at a public university, or a student starting at community college and transferring. The money math still has to happen, and TCI’s college ROI calculator and analysis of whether college is worth it do that part without a fee.

Red flags are easy to spot once named. No counselor can promise an admission outcome, and anyone who does is selling something else. The 2019 Varsity Blues prosecutions were built on a counselor who claimed a “side door,” and IECA’s ethics rules bar members from accepting payment from colleges for placing a student. A counselor who offers to write essays, claims connections in admissions offices, or won’t put pricing in writing fails the test, and so does one who has nothing to say when a family asks about net price.

Four vetting questions cover most of it. Start with membership in IECA, HECA, or NACAC, then move to caseload, because a counselor working with more than 25 or 30 seniors a year is giving each one less than the package implies. The question that separates the good ones is how they build a financial ceiling into the list, and a vague answer there is the answer. Close by getting the full fee schedule in writing before the first paid meeting, the same way you would before signing up with any financial advisor.

When Should You Start College Counseling?

Formal college counseling starts in the fall of junior year for most students, and that’s the right time to hire a private counselor if you’re going to. The money work starts in 9th grade, and the single most important reason is the FAFSA base year. The FAFSA uses income from two tax years before the student enrolls, so for a student entering college in fall 2028, the 2028-29 FAFSA will use the family’s 2026 tax return, a year that spans the spring of sophomore year and the fall of junior year. Large capital gains, Roth conversions, or a one-time bonus in that year raise the Student Aid Index and shrink need-based aid, and no counselor hired in junior year can undo it.

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College Counseling Timeline: 9th Grade To Decision Day
When Admissions Work Money Work
9th Grade Pick the math and course sequence, go deep on one or two activities, learn how GPA works Check 529 balance against the target, have the first “here’s what we can pay” talk
10th Grade Take the PSAT 10, explore majors, make informal campus visits Run a net price calculator on three schools to see the range, note that the FAFSA base year starts January 1
11th Grade Fall Take the PSAT/NMSQT in October, start formal counseling, draft the first college list Set the budget ceiling, avoid large capital gains or Roth conversions in the base year
11th Grade Spring Take the first SAT or ACT, ask teachers for recommendation letters, visit top choices Run a net price calculator on every school on the list, cut schools that miss the ceiling
Summer Before 12th Write the Common App personal essay, start supplements, decide on Early Action or Early Decision Gather tax returns and account statements for the FAFSA and CSS Profile
12th Grade Fall Common App opens August 1, early deadlines November 1 and 15, retake SAT or ACT if needed File the FAFSA and CSS Profile as soon as they open, apply for outside scholarships
12th Grade Spring Regular decisions arrive March and April, commit by May 1 Compare award letters side by side, appeal where there’s a case, finalize loans
Source: The College Investor.

The 9th and 10th grade work is light but real: pick the right course sequence, look at the 529 balance against the goal, and run a net price calculator on three very different schools so the range stops being abstract. Junior year is when the list, the testing plan, and the budget ceiling come together, and the summer before senior year is for essays. Senior fall is forms and deadlines, and TCI’s FAFSA deadline tracker covers the federal, state, and school dates, including the 2027-28 FAFSA that opened early on September 23, 2026.

Starting late is recoverable but expensive. A family that begins in the fall of senior year loses the Early Action round at most schools, writes the essays in weeks instead of months, and has no time to fix a testing plan or a budget problem. The list shrinks to schools with later deadlines and rolling admissions, and the family should expect to pay a premium for a counselor willing to take on a senior in October. Families in that spot should start with why the FAFSA is worth filing even when they assume they won’t qualify, because that form is the one deadline that can’t be negotiated.

Frequently Asked Questions

Is College Counseling The Same As College Admissions Consulting?

Mostly, yes. “College counseling” is the broad term for help planning, applying to, and paying for college, and “admissions consulting” is what private firms call the paid version. The difference that matters is scope: a college admissions consultant sells a package focused on getting in, and the financial fit work described above is something families should ask about rather than assume.

Is A High School Counselor Free?

Yes. School counselors are school employees, and their college work, including transcripts, the school report, and the counselor recommendation, costs nothing. The limit is time, with a national average of 372 students per counselor, which is why the college application checklist is something families should own themselves.

Can A College Counselor Guarantee Admission?

No. Admissions decisions belong to the colleges, and a counselor who promises an outcome is either misrepresenting the service or planning something improper. Professional counselors coach the application, and TCI’s reporting on what colleges look for shows how much of the decision sits outside any applicant’s control.

Can I Pay For College Counseling With A 529 Plan?

No. College counseling, test prep, and application fees are not qualified 529 expenses, so paying them from a 529 triggers income tax and a 10% penalty on the earnings portion. Those costs come out of pocket.

Does College Counseling Include Financial Aid Help?

Sometimes, and families should ask directly. Most counselors will help with the FAFSA and CSS Profile mechanics, but fewer will build a budget ceiling into the list or compare award letters, and that is the part that decides what the family pays. TCI’s order of operations for paying for college is the framework a counselor should be working from.

When Is It Too Late To Hire A College Counselor?

It’s never too late to get help with essays and deadlines, but after October of senior year the counselor is managing a crisis rather than a plan. The Early Action window has closed at most schools, and the FAFSA base year passed two years earlier. A family starting that late should file the FAFSA immediately and focus the list on schools with rolling or late deadlines.

Editor: Colin Graves

The post What Is College Counseling? What It Covers, What It Costs, And When To Start appeared first on The College Investor.

Rumor: Amex Platinum Could Add $250 Airbnb Experience Credit


Rumor: Amex Platinum Could Add $250 Airbnb Credit

American Express could be preparing a new Airbnb benefit for the Platinum Card, according to information spotted in what appears to be an Amex test environment.

The rumored changes reported at USCF include a new $250 annual Airbnb Experience credit, although there looks to be an important catch. The credit may need to be unlocked by first booking an eligible Airbnb Luxe stay. The same source also says the current Fine Hotels + Resorts credit could be rebranded as a broader “Lodge Credit” that would also work with certain Airbnb luxury stays.

The information comes from qwww links which is a test environment for American Express products and should not be treated as final. There are still plenty of unanswered questions, including exactly what type of Airbnb Luxe booking would unlock the $250 credit, how long the credit would remain available after unlocking, and whether the current Platinum hotel credit amount or timing would change.

There’s no official word from American Express yet, so all of this should be treated as a rumor for now.

Top brokers on how brokers can leverage non-QM to win business


Kurt Strandson: Hypervolatile is going to be the new status quo. 

Thuan Nguyen: During the bad times, you don’t need to make a lot of money, but you make tons of money during the refinance wave.  

Matt Sexton (Interviewer): Hello again, and welcome to the latest edition of MPA TV. I’m Matt Sexton, mortgage journalist here with Mortgage Professional America. Today, we continue our Broker Intel series, featuring discussions with top mortgage professionals across the United States on the most important mortgage topics of the day. I’m honored to be joined by our guests on this edition of MPA TV. We have Kurt Strandson, president and CEO of Pinnacle Mortgage Corporation, and Thuan Nguyen, founder of Loan Factory. Gentlemen, thank you so much for joining us today on MPA TV. 

Kurt Strandson: Thanks for having us. 

Thuan Nguyen: Thank you, Matt, for having me. 

Matt Sexton (Interviewer): It’s been a few weeks since we’ve recorded an episode of MPA TV, so it’s a good time to revisit the state of the market. Obviously, we just had the Fed announcement yesterday, so it’s fresh in everybody’s mind as we sit here and record this. We’ll start with Kurt on this one. As you look at the overall market and how things are for you, what would you say is the state of the market? How have things changed since spring and summer as we head into late fall? 

Kurt Strandson: Yeah, I think the best way to describe the market is hypervolatile. You don’t know what’s coming. I was at a couple of conferences in the spring, and nine major industry economists had predicted a half-percent rate drop by the second half of this year. We saw pretty close to the opposite in the last few weeks. With all the geopolitical things going on and the domestic conflict and chaos, I don’t think that environment is going to change anytime soon. You’ve got elections in November. If the Democrats take the House and/or the Senate, you’re probably going to see impeachment hearings for a couple of years, and it’s just going to continue to be chaotic. So I think hypervolatile is going to be the new status quo. 

Matt Sexton (Interviewer): Thuan, your thoughts? 

Thuan Nguyen: Yeah, the market is getting very tough now, and I think everyone out there agrees. Most people are very pessimistic, right? Rates have hit 7%, and they might continue to go up. The momentum is going that way. Inflation is going that way. So it’s pretty bad out there right now. 

Matt Sexton (Interviewer): Much has been made about the higher-for-longer rate environment that we’re in. Thuan, we’ll start with you on this one. What advice would you give to brokers out there who are trying to navigate the current rate conditions, continue doing business, and make their way through? 

Thuan Nguyen: My advice is not to let market conditions affect you. Focus on becoming a better loan officer or a better broker. Focus on how you can compete against others and how you can win more clients. Focus on yourself more than market conditions because, no matter what the market conditions are, there will always be people buying and refinancing. Maybe not a lot, but there are always people doing that. When you become better and rates drop, you will stand to benefit so much. People will come to you, and you’re going to make a lot of money. 

Matt Sexton (Interviewer): Kurt, your thoughts? 

Kurt Strandson: Yeah, a couple of things. I’ve been doing this since 2003, so we lived through the 2007–2008 debacle and the years after that. What I did in 2008, when we saw that market, was dig into relationship building, partnership building, and growing our referral base and database. Grow your business partnerships and focus on the purchase side. The good thing is that, in some markets—I’m up in New England, and we’re in 31 states, but I live in New England—it’s still been a very strong seller’s market. That’s going to shift. There will be fewer people competing when rates rise, so you’re going to have a higher conversion rate on prequalifications and preapprovals than in years past, when you might preapprove someone, but they’re bidding against 25 other people. That shift is a long time coming. It’s good for homebuyers, and they’re not going to be stuck paying way over asking price or being boxed out of the market because they can’t afford to go over asking with appraisal gaps and things like that. The other thing is, with this rate environment, we don’t look too far into the past, but if you look back to 2023 and 2024, we’d be doing cartwheels for these rates. Rates were in the high sevens, and I think October 2023 was into the eights. We’re still well below that. So yes, it’s an increase from what we’ve seen in the recent past, since the beginning of the year when rates were in the high fives. But when you look at it from that perspective, we still wrote a lot of loans in 2023 and 2024. There’s always going to be business out there. 

Matt Sexton (Interviewer): Last month, we had a focus at MPA on broker education and training. Kurt, we’ll start with you on this one. What would you tell brokers about education and training? Is there one area where you think brokers could be stronger when it comes to knowledge of the business? 

Kurt Strandson: Absolutely. We were just out at UWM with 65 people last week, and we appreciate their partnership. They’re always pushing forward with new information, and the focus is on technology and AI. I think if you’re not learning, training, and adapting, you’re going to get left behind. That’s not just for loan officers; it’s also for real estate agents. You have to be informed and educated about those tools, how you can use them, and how they can complement your business. Those tools are allowing you to do things much more efficiently and much quicker than what we’re used to. I look back to when I started in 2003. We were taking handwritten applications and making different copies with signatures. Now everything is so far ahead. The message for loan officers out there is not to discount or miss opportunities to learn about those systems, because you’ll need to know them. They’re going to be a bigger part of what we’re doing in the near future. 

Matt Sexton (Interviewer): Thuan, your thoughts on that? 

Thuan Nguyen: Yeah, I agree 100%. Technology and AI will change all of us, and we need to be ready for it. Of course, everyone wants to have the best technology and AI to help them, but not many brokers or loan officers have the ability to access and handle all of the latest technology. It’s going to be a challenging period, and I see a lot of consolidation out there. Small brokers cannot survive because they don’t have the resources or the time to upgrade their technology, adopt AI, and compete. Nowadays, you see a lot of consolidation. Many small brokers end up joining bigger brokers because it’s not only about technology. You also have overhead, licensing, compliance, audits, marketing, and so many other things that you have to manage to become better and attract more loan officers to your company. There’s so much competition out there. That’s what I’m seeing. It’s really tough for brokers and loan officers. We always have to be aware of what’s going on, keep learning, and keep improving. Choosing the Right Technology 

Matt Sexton (Interviewer): You both mentioned technology, so I want to follow up on that. We’ll start with Thuan. We’re getting into convention season, and when you walk in, there are so many different new technologies out there, almost every day. When you’re looking at technology for your business or advising brokers on what they should do, how do you sort through all the new technologies to find what really works for you? 

Thuan Nguyen: It’s really tough, but we need to focus on technology that can help our company. There’s so much going on out there. For me, there are two areas: the back end and the front end. Front-end technology helps you get more clients through marketing and other activities. Back-end technology helps you control your processes and operations through automation and processing. Right now, I’m focusing on the back end. I want to become better first before I go out there and promote myself. I know there are technologies that help you approach clients, call leads, and follow up with leads, but I don’t believe in those technologies yet because consumers still have reservations about AI. They don’t want to talk to AI. They’re still a little scared of AI. That’s what I see, and that’s why I don’t want to focus on the front end. I want to focus on the back end. 

Matt Sexton (Interviewer): Kurt, your thoughts? 

Kurt Strandson: Yeah, I think the best way to sort through all those offerings is to lean into the resources available through our trade groups. You have AIME Fuse coming up, you have VettedVA, and you have NAMB. A lot of our friendly competitors are there. You build relationships with other owners, brokers, leaders, and loan officers, and you ask them who they’re using, what they’re using, and what they’re seeing. You reality-test it with people you have relationships with and trust. It’s impossible to just trust the people behind the booths because everybody wants to sell their product. But when you ask people who are using it, or who have used it and stopped, and find out why, you can lean into those resources at gatherings and networking opportunities. That makes it a little easier to sort through. 

Matt Sexton (Interviewer): That’s a great point. Absolutely. One of the big stories in mortgages over the last couple of years has been the rise of non-agency, non-QM lending. If you were speaking with a broker, Kurt, who has focused heavily on the agency side—Fannie Mae and Freddie Mac-type loans—and they were looking to pick up more business, what would be your advice as far as expanding offerings or looking at different avenues to generate business? 

Kurt Strandson: It’s a great question. I think if you’re not offering those alternative products—the non-QM products, bank statement loans, and especially DSCR loans—you’re really doing a disservice to your borrowers and your business partners. With the volatility in the market over the last couple of weeks, we actually saw bank statement loans and DSCR loans pricing better than conforming, full-documentation loans. It’s a different secondary market for those products, and they move based on different factors. We moved a lot of loans that qualified for full documentation over to DSCR or bank statement loans simply to get three-eighths, and sometimes half a percent, better pricing. It was dramatic. I really think loan officers tend to stick with what they know, but you need to learn these products because they’re becoming a larger percentage of the marketplace. Even very well-qualified borrowers, specifically on the purchase side, don’t want to go through all the hoops of extra documentation, profit-and-loss statements, balance sheets, and CPA verifications for full-documentation loans. When you can simply do a DSCR or bank statement loan, it makes the transaction much more efficient and easier for them and their agent partners. 

Matt Sexton (Interviewer): Thuan, your thoughts? 

Thuan Nguyen: Yeah, I agree with Kurt totally. Nowadays, non-QM is a bright spot. It’s a good product. A lot of clients love it, and even loan officers like us love it too. But one thing I see is that a lot of loan officers are still very weak when it comes to understanding the guidelines. There are so many lenders offering different products with different guidelines. Therefore, we really have to take the time to understand each lender’s guidelines. At Loan Factory, we even built our own non-QM pricing engine to help loan officers find the right lender and product for their clients. A client can fit into many different products, and we need to find the best one for them. AI has advanced as well. AI can help match consumers and borrowers with the correct products and lenders. Utilizing AI is one way to help loan officers in this area. There are so many different non-QM products available, so I encourage all brokers and loan officers to focus on non-QM as well. Don’t forget it. 

Matt Sexton (Interviewer): It’s amazing how non-QM has exploded and continues to be so strong as we move forward. As we get ready to wrap things up on this edition of MPA TV, I always like to end with something a little more open-ended. Thuan, we’ll start with you. As we approach the final quarter of 2026 and head into 2027, what is one positive thing you’re looking forward to? Maybe a little bit of a silver lining for people out there who’ve read the headlines and feel a little doom and gloom. What’s something we can all look forward to as we head into next year? 

Thuan Nguyen: I think Kurt mentioned one positive thing: there will be a lot fewer loan officers out there, and hopefully, there will be a lot more refinancing in the future, maybe next year. That’s a very bright spot. Smart loan officers know that during the bad times, you don’t need to make a lot of money, but you make tons of money during the refinance wave. That’s what a smart loan officer does. You need to make a lot of money during the refinance wave, and in order to do that, you need to prepare for it. You need to have a strategy to capture a lot of clients. That’s my advice. That’s the bright spot I’m looking forward to. When rates drop, I’m going to be big. 

Matt Sexton (Interviewer): No doubt about it. Kurt, what do you have for us? 

Kurt Strandson: Yeah, I think the opportunity is going to be for those loan officers who focus on purchase business. If you stick to just refinances, you’re probably going to be a little slower. There’s going to be a lot of opportunity for those who circle back to people they may have preapproved six, 12, or 18 months ago. Prices were a little too high. They couldn’t afford something, or they were getting outbid. Circle back to those people because that’s going to change. If rates stay elevated for a period of time, you’re probably going to see prices level out in markets where they were still continuing to rise. I think at the beginning of the year, there was about a 60/40 split across the country, where 60% of markets had slightly appreciated over 12 months and 40% had slightly depreciated. You’re going to see that even out. Across the country, prices will probably level off with elevated rates. That’s going to create opportunities for homebuyers who were previously boxed out because they couldn’t make more competitive bids or didn’t have the cash and resources available. So there’s going to be a lot of opportunity on the purchase side. If you focus on building relationships with your database and business partners, dig in, and do the work, you’ll be just fine. At the end of the day, relationships are everything. Good market or bad market, if you’re building relationships, you’re setting yourself up for success down the road. 

Matt Sexton (Interviewer): Gentlemen, thank you again so much for joining us on this edition of MPA TV. And thank you to everyone who watched this edition of MPA TV. For our guests, I’m Matt Sexton, saying so long. We’ll talk to you again next time. 

 

A growing security premium threatens Saudi Arabia’s investment project 



While there was no official comment from Aramco, the kingdom’s energy ministry confirmed the strike had caused a limited fire and no injuries, though it was unclear whether the building in the eastern city of Dhahran had been hit directly by a missile or by falling debris. 

Authorities also reported drones and missiles were intercepted and destroyed near the capital, Riyadh, and the country’s southern region.  

As the kingdom’s conflict with the Iran-backed Houthis intensifies, questions are mounting over whether its much-vaunted Vision 2030 is increasingly out of reach. 

For a country whose future hinges on diversifying away from oil and attracting foreign investment to help it do so, the spillover effects of the conflict pose a significant setback to its ambitions. 

“The events of recent weeks are serious,” Saudi Energy Minister Prince Abdul Aziz bin Salman told the World Petroleum Energy Congress in Riyadh on Monday. “Our response must be equally serious while remaining focused on the decades ahead; Vision 2030 must continue, investment must continue.” 

Exactly what a “serious response” entails remains unclear, but what is immediately apparent is that investor sentiment has already been rattled.  

The CEOs of Shell, TotalEnergies, BP, and ExxonMobil had all been due to attend this week’s WPEC but are conspicuous by their absence.  

I was due to travel to Jeddah this week for interviews and an event, but, like many others, plans were canceled given the security situation. 

According to the Wall Street Journal, the Saudi crown prince, Mohammed bin Salman, has been moved between heavily guarded palaces fitted with bunkers by a handpicked security team.  

During the course of the last week, many of the kingdom’s most strategic assets have become high-profile targets. Most notably, King Khalid International Airport in Riyadh suffered four attacks in the space of five days. The Saturday attack marked the deadliest attack on Saudi soil in more than a decade, killing 13 people and injuring 309.  

James Reeve, a Saudi macro consultant who formerly worked as a senior director for the Saudi Public Investment Fund, told me that foreign investments already made in Saudi are unlikely to be reversed in the near term.   

“I think more troubling for the Vision 2030 story is the impact on new FDI (foreign direct investment) inflows,” said Reeve.  

“For foreign firms weighing up significant capital investments in the Kingdom, the images of missiles falling apparently unhindered on the capital’s airport will be shocking and difficult to forget. Those contemplating investments in tourist infrastructure will also have to weigh the impact on tourism inflows.” 

On Monday, Saudi authorities extended the airport’s closure until Saturday, and regional carriers have temporarily suspended flights.  

Meanwhile, Air France-KLM has suspended flights to Riyadh until 31 October and Delta Air Lines has delayed planned services from Atlanta to Riyadh, initially due to start on October 23, until March 2027. 

“In the short term, this is clearly damaging,” Andreas Krieg, a Middle East security analyst at King’s College London, told me.  

“The important effect is not simply physical damage to an airport or the cancellation of individual flights. It is the return of a security premium to doing business in Saudi Arabia. The immediate consequences are likely to be delayed investment decisions, higher required returns, and greater dependence on state capital.”  

As one of the principal gateways into the Saudi capital and a foundation stone of the entire Vision 2030 project, the Houthi attacks on Riyadh’s airport directly threaten the Kingdom’s strategy. It wants to become a global centre for business, logistics, tourism, hospitality and major global events, including the Expo 2030 and the FIFA World Cup in 2034. 

Before the current attacks, the airport handled roughly 110,000 passengers a day — similar in scale to Miami International airport. It is also the base of Riyadh Air, a new airline backed by Saudi’s PIF, which seeks to establish the city as a major transport hub to rival Dubai and Doha. 

These latest developments come as Riyadh is already grappling with rising fiscal challenges.  

The Kingdom recorded a fiscal deficit of 160 billion riyals ($42.7 billion) in the first half of 2026, up 71% from 93 billion riyals a year earlier, as it increased spending to prop up growth amid the ongoing U.S.-Iran war. 

Earlier this month, the Finance Ministry raised its estimated 2026 budget deficit by 48% to 245 billion riyals ($65.33 billion), equivalent to 4.9% of GDP.  

Such revisions and forecasts may now be due for another downgrade.  

However, Krieg said it is premature to start calling into question the credibility of Saudi’s long-term economic plans.  

“I would not extrapolate from several weeks of disruption to the collapse of Vision 2030,” he said.  

“Saudi Arabia has enormous fiscal resources, deep domestic capital pools and the ability to keep strategic projects moving even when private capital becomes cautious. The long-term effect depends almost entirely on duration.”   

Reeve also said that the extent of damage to investor confidence will be directly linked to the duration of the conflict and that the onus will now be on the government to reassure investors.  

“Foreign investors are unlikely to up sticks at this point,” he said. “They will want to see how long the strikes last and how the government and PIF might respond in terms of loosening the purse strings to shore up confidence.”  

But he was more pessimistic overall, adding: “All in all, I think current events are quite a big blow to the Vision 2030 thesis.”  

The kingdom’s flagship business summit, the Future Investment Initiative (FII), dubbed ‘Davos in the desert’ is due to be held in under two weeks. It will be the most immediate litmus test of investor sentiment towards the kingdom.  

On Tuesday, Reuters reported that Riyadh was planning to make FII a hybrid event, giving executives the option to take part remotely.  

In previous years, applications to FII were tightly vetted, making it one of the hottest tickets in town, attracting Wall Street titans such as BlackRock, Goldman Sachs and JPMorgan.  

Just over three months ago, PIF’s governor Yasir Al-Rumayyan told a packed auditorium at the FII’s Priority Europe summit in Rome that the sovereign wealth fund’s strategy is “to bring the world back to Saudi”.   

With missiles raining down and travel warnings in place, the world will first need to be reassured that it is safe.   

Melissa Hancock

And as ever, thanks for reading, and do keep in touch with your thoughts and ideas.
melissa.hancock@fortune.com 

Abu Dhabi advances AI ambitions 

Abu Dhabi is betting on AI to help the government run better 

Last week, Abu Dhabi joined forces with tech giants OpenAI and Microsoft to launch AiNative, an AI training program that aims to train 20,000 government employees as part of its ambition to become the world’s first AI-powered government by 2027. 

The program—announced at the Ai Everything conference in the capital–will give government employees hands-on experience with tools such as ChatGPT, Codex, and Microsoft 365 Copilot.  

Later phases will offer more specialized training and certifications tailored to specific roles, including coding and data. 

Citizens and residents will also benefit from aspects of the training program that cover practical applications of AI in everyday life, including managing personal finances, running a small business, and finding a job.  

AiNative forms part of Abu Dhabi’s AED 13 billion ($3.5 billion) Digital Strategy 2025–2027, which seeks to strengthen AI adoption and digital infrastructure, automate 100% of government processes, and deploy sovereign cloud computing across all government operations. 

By 2027, the strategy is projected to generate more than AED 24 billion ($6.54 billion) in economic value for the emirate.   

It forms part of a broader shift in the UAE’s approach to AI, moving beyond investment in the technology to embedding it into how government and society function. 

Speaking to Fortune contributor, Inzamam Rashid, at the Ai Everything conference in Abu Dhabi last week, Ruba Al Hassan, director general of strategic affairs and future foresight at Abu Dhabi’s Department of Government Enablement, explained how she is working to automate routine administrative tasks such as licence renewals and utility payments through the emirate’s AutoGov service. 

You can read Rashid’s full interview with Al Hassan and what it means for Abu Dhabi’s AI-powered government vision here. 

SoftBank courts Gulf investors

SoftBank looks to revive Gulf backing for its AI investments 

SoftBank Group CEO Masayoshi Son, is said to be targeting up to $100 billion in funding from Gulf investors to bankroll a fresh wave of AI investments. 

Son has held talks in ⁠recent weeks with senior figures, including ​in the UAE, about the ​potential fundraising, the FT reported.  

As part of the potential Gulf-backed fundraising, the SoftBank founder would use the money to establish a fund that would acquire companies and enhance their operations with AI and other advanced technologies. 

Saudi’s Public Investment Fund and Abu Dhabi’s Mubadala were major backers of SoftBank’s inaugural $93 billion Vision Fund, launched in 2017.   

Since its launch, the first Vision Fund had accumulated about $29 billion in investment gains by the end of June. Vision Fund 2, launched more recently and funded primarily by SoftBank, has generated $20.5 billion in gains.  

However, the first Vision Fund has also suffered a series of high-profile setbacks among its bets on so-called “disruptor” startups, most notably WeWork, which filed for bankruptcy and underwent a major debt restructuring. It led to SoftBank earning the less-than-desirable moniker “Nasdaq whale” for its role in fuelling a frenzied rally in big tech stocks. 

As highlighted in last week’s newsletter, OpenAI is reportedly in talks with several UAE investment funds, including Abu Dhabi-based MGX, to anchor a $30 billion fundraising round for the company. The UAE funds may invest as a consortium and are discussing a combined investment of up to $10 billion.  

The Big Number

-4.3 

Last week, the World Bank revised its real GDP forecast for the GCC to  a -4.3% GDP contraction versus a previous forecast of 1.3% growth. The biggest downward revisions were for Qatar to -21% (from -6%) and Kuwait to -15% (from -6%).  

The 3 things we enjoyed reading this week

  • A series of strategic miscalculations dragged Saudi back into war in Yemen, as CNN explores in this analysis piece. Riyadh’s split with the UAE, failure to coordinate effectively with allied Yemeni forces, and overreliance on U.S. military support have left it vulnerable to an increasingly powerful Houthi movement backed by Iran. Despite seeking international support and launching a new military offensive, Saudi Arabia faces a conflict with no clear endgame, as fragmented allies and unresolved regional tensions make a lasting solution hard to achieve.  

     

  • The Middle East has seen several significant archaeological discoveries in 2026, revealing new insights into ancient civilizations and the region’s rich history. Highlights include a Bronze Age communal tomb in Al Ain, a potentially lost Egyptian city linked to Pharaoh Ramses II, and a rare Assyrian royal monument uncovered in Iraq. In Egypt, an underwater excavation in Alexandria uncovered a bronze ring depicting the legendary Lighthouse of Alexandria, while prehistoric rock art in Sinai reveals thousands of years of human activity.  

     

  • A new 18-month partnership between NYU Abu Dhabi and the U.S. State Department will bring together 30 graduate students from the UAE and U.S. to design and build lunar rovers. The project will draw on the UAE’s growing space capabilities, including locally developed lunar soil simulants and testing facilities, to tackle challenges such as abrasive Moon dust. Beyond supporting the UAE’s lunar ambitions, the initiative aims to develop skilled engineers, strengthen scientific ties between the two countries and create opportunities for future research and commercial innovation. The benefits of space exploration extend well beyond the Moon, potentially driving advances in energy storage, electric vehicles and other technologies on Earth.

How These Friends Opened a Color Me Mine Pottery Franchise


Key Takeaways

  • Antima Jain and Pooja Choudhary met 11 years ago through a mutual friend at a party in Minnesota.
  • They were both immigrants from India, had a lot in common and lived three minutes away from each other.
  • They ultimately pooled their personal funds to open their own Color Me Mine paint-your-own pottery studio franchise in March 2025.

A few months ago, a customer walked into Antima Jain and Pooja Choudhary’s Edina, Minnesota pottery-painting studio, Color Me Mine, with a plan to propose to his girlfriend.

Color Me Mine allows customers to pick a piece of pottery like a mug, plate or bowl, and paint it. The studio then glazes and fires it, and the customer can pick up in about a week. 

The customer wanted to paint a jewelry tray with the question, “Will you marry me?” and use it to propose. Usually it took about seven days for Jain and Choudhary to process a customer’s pottery after they painted it. This time, they agreed to have his piece ready sooner.

Antima Jain (left) and Pooja Choudhary (right). Credit: Color Me Mine Edina, MN

Jain and Choudhary also helped create the atmosphere that the customer wanted in the studio. Later, the couple brought them a save-the-date card that mentioned the studio. For Jain and Choudhary, it was a reminder of their impact. They were creating a space where customers could connect and build lasting memories. 

A lot in common

That sense of connection is also the foundation of their partnership. Jain and Choudhary met 11 years ago through a mutual friend at a party in Minnesota. Both had moved to the United States from India, were raising children and enjoyed creative projects. 

“We started talking and realized we have so many things in common, and just like each other’s company,” Choudhary tells Entrepreneur in a new interview. “We started meeting up.” 

They lived a three-minute drive from each other. As their children grew more independent, the friends began imagining building a business together. When they started their search in 2023, they explored franchises and visited a nearby Color Me Mine studio. 

“We just loved the whole vibe,” Jain says. “It was such a clean environment, very organized, very colorful. It just felt calming. We both had the same impression.”

They ultimately pooled their personal funds and spent about $300,000 to open their own Color Me Mine location in March 2025. But before becoming business partners, they made a pact: Friendship would come first. Whatever challenges arose, they would keep talking rather than let the business divide them.

The following interview has been edited for length and clarity.

Pooja Choudhary (left) and Antima Jain (right). Credit: Color Me Mine Edina, MN
Pooja Choudhary (left) and Antima Jain (right). Credit: Color Me Mine Edina, MN

Their immigrant stories

Tell me about your backgrounds before you became franchise owners.
Jain: I first came to the United States in 2003 because of my husband’s work project. We went back and forth between India and the U.S. a few times, and then we came here in 2012 and have been here since.

I have a bachelor’s degree in commerce from India. I taught preschool there, and here I worked at Kumon. I was working part-time while my kids were growing up. Now they’re both in college, so this seemed like the perfect time to get into something we would enjoy and have time to invest in.

Choudhary: My husband was already here when we got married, and I moved to the United States afterward. I finished my master’s in electrical engineering. We lived in different states before coming to Minnesota around the same time Antima did.

I have an investment property business on the side, which I still continue. I have two girls: one in high school and one finishing middle school at the time of this interview.

Deciding to franchise

Why choose a franchise rather than create an independent studio?
Choudhary: We didn’t have experience running this kind of business, and that was the scary part: How were we going to do it?

A franchise felt like a balance between owning an independent business and working in a corporate environment. They provide the platform, but we still have independence in running the studio.

Jain: Everything was laid out for us. The guidance and support have helped a lot. Even after our first year, they were still introducing things to make the business easier to operate, including a new point-of-sale system across Color Me Mine studios. We haven’t regretted choosing a franchise.

How did you find your location and fund the business?
Choudhary: The franchisor gave us a territory, and we hired a real estate agent to help find a space. We looked at many places before choosing our location in Edina. There are parks and shopping nearby. The franchise team helped us shortlist locations and think about what to look for, including visibility.

Jain: The startup cost was roughly in the low-$300,000 range. We both invested from our personal accounts rather than taking out a loan. Being partners made it easier to split that investment.

Acquiring customers

How have you worked to bring in customers and grow?
Jain: We joined the local chamber of commerce, which helped spread the word. We participated in an art festival near our location and held Mother’s Day and Father’s Day events. We run recurring promotions and include discount cards with finished pieces to encourage people to return within a month. We also advertise through a platform the franchise recommended.

Choudhary: We’ve donated to local organizations and participated in school fundraising, too. That has helped.

The realities of ownership

What surprised you most about operating the studio?
Jain: Hiring. I never thought keeping a full staff would be such a challenge. It’s a constant process of hiring and rehiring because most of our employees work part-time.

We give opportunities to high school and college students. Their education comes first, and when they finish high school, they may leave for college. We understand that, but before opening, we hadn’t really thought about how continuously we would need to work on staffing.

What does a typical day look like for you?
Choudhary: It’s busy. We don’t currently have a full-time manager, so we handle staffing ourselves. Sometimes we’re both at the studio; sometimes we alternate days. There’s also glazing, payroll, social media, the calendar and other online work. Every day, something needs attention.

Beyond staffing, what has been difficult?
Jain: Calling customers when something happens to their pottery in the kiln. They may have spent hours creating a piece, and then it doesn’t come out perfectly. Telling them that is hard. It happens very rarely — we estimate less than 1% of pieces — but we still dread those calls.

Choudhary: We offer a replacement piece and waive the studio fee so they can come back and paint again. We try to do whatever we can to make the experience better.

Planning ahead and protecting the partnership

How do you keep business disagreements from affecting your friendship?
Choudhary: We knew things would happen because we were new to this. We agreed to keep an open dialogue and talk if something wasn’t working. We’re doing this because we’re friends. If we weren’t going to stay friends, there would be no point in having the business together.

Jain: We’re like sisters. There will be disagreements; we can’t always agree. But I wouldn’t have chosen anyone else to do this business with. If I open another studio, I’ll do it with Pooja.

What are your goals for the business?
Jain: We would love to open another studio. We also want to reach the top five in the franchise’s sales rankings. We’ve been in the top 25 and reached sixth place for one month, but we haven’t made the top five yet.

Choudhary: We have similar goals and the same vision for the studio. That alignment is what makes the partnership special. Most of the time, we’re thinking along the same lines.



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Nearly Half of Buyers Get Concessions as Fed Warns Prices Must Drop


Dave:
The headline can tell you what happened in the housing market, but it rarely tells you what you should do next. Before you change your strategy based on some recent news, you need to know where the story actually applies, what’s driving it, and whether it holds up against what you’re seeing locally. So today on this episode of On the Market, every one of our panelists has brought a different story to the table. We’ll challenge the easy takeaways, we’ll look at the possible implications for investors, and identify the questions you should ask yourself before making your next move. I’m Dave Meyer. This is On the Market. Let’s get to it. Kathy and James, what’s up guys? Good to see you. Thanks for being here.

James:
Good to see you guys.

Kathy:
Good to see you too.

Dave:
I know we say this every week, but man, it feels like things are insane right now. Just like the speed of information.

Kathy:
Are we going to be depressing?

Dave:
No, I have good news. I brought a good news story. I know I’m always the downer around here, so I have a good news story.

Kathy:
Oh, I have a bad news one.

Dave:
James, what’s yours? Good news, bad news, medium news?

James:
It’s half glass full, half glass empty.

Dave:
Then I’m going to go first, then James, we’ll slowly depress you throughout the course of the episode. We’ll start happy. We’ll go to James and then Kathy, you could drag us all

Kathy:
Down at the end. Perfect. End it

Dave:
With tears. My headline for today is 45% of sellers are now offering concessions. This is the biggest opportunity buyers have had in six years. I don’t know, longer. I know there are flip sides to everything. James, my condolences on selling houses right now. It’s hard. I’m trying to sell house too. It’s not going great. But I just think this is hidden from the average person. I know investors see this stuff, but the average homeowner or first time investor, they go out and see the median home price is up. It’s up one and a half percent. It’s 429,000. Not really. If you actually look at what’s going on, the median home price right now is probably 410 because people are getting five, six, 7% discounts. And I think this is good news for buyers. I mean, I started in 2010. This is why I got started because you had so much leverage.
You could just name your price and walk away if you didn’t like it. And I feel like we’re getting back to that. And I know it comes with some scary headlines and some potentially falling prices, but man, this is good news for a buyer in my opinion.

Kathy:
Yeah, absolutely. It’s a buyer’s market, which means it’s time for the buyer and this is time to buy. And people often do the opposite. They buy in a seller’s market, they sell in a buyer’s market. That’s not how you make money. That’s

Dave:
Panic.

Kathy:
That’s panicking. Yes.

Dave:
Yeah, for sure. I totally agree with you, Kathy. So hopefully I brought you some good news today. But I was curious, I brought this story because I kind of wanted to ask you both, and I’m happy to share some things too, just to share how you get good concessions. Because I think people hear, oh, there’s concessions. But a lot of people, especially if they’re new, are not as familiar with negotiating with sellers because it’s been a long time since you could. So James, maybe you’ve negotiated what? 5,000 more, 10,000 deals? How do you go after concessions? And I guess I should even start at a higher level. Do you prefer to negotiate on price, on concessions, some combination of the both?

James:
I love grinding on a deal because there’s so many ways. And it’s not just about like, “Hey, I want it for cheaper.” It’s about how you present your case, just like anything. And so we go for price because we’re investors and we’re going for deeper discounts. I don’t know if anyone can buy my rate down on a hard money loan, but there’s so many different ways. There’s price and term. A lot of people think if you pay the least, it’s the best deal. No, that’s not the case at all. Sometimes if you pay more and the seller’s working with you on their interest rate, the cost. And so the first thing I always tell people is focus on what you’re trying to achieve and what you can afford. And then there’s numerous different ways to get there. Your number one concessions are going to be price first.
The second is what works for you best on concessions? Maybe you’re putting most of your down payment down and you don’t want to have to worry about any bills for five years and you ask for all the things in your inspection. Roof, maybe you have five years left, you want a new roof. It may need a new hot water tank and you go through and you really are covering your costs going forward. And actually that’s what I suggest for most buyers to do because those bills can really beat you up later. And the next is how do you get your monthly payment down, which is going to be what can they buy your rate down in closing costs? We just did this. We had the property listed for 700. We actually sold it for 720, but we’re paying $20,000 in closing costs because it got her rate at the time into 6.3 or 6.4% because the rates were lower when she made this offer.

Dave:
So she basically was flexible on price, but she wanted a lower monthly carry.

James:
Yeah. And that’s what you want to communicate. Where people make the mistake is they just fire in offers. Talk to the broker. What’s the seller’s hot button? What are they willing to do? Are they willing to wait for a longer close? Can you get a better loan? That conversation is what you want your broker to do or your negotiator to do because then they can bring you back all the different options and you can run them on all three scenarios. Is price the best strategy? Is getting all the deferred maintenance covered? Is it interest rate or is it all three? And depending on what that seller says, you might be able to get all three.

Dave:
That’s great advice. Kathy, anything to add there?

Kathy:
I mean, that is it. If I’m buying an older home, I will do every possible inspection, not just the general inspection, get all of them and then get the pricing on what it’s going to cost to fix those things that come up in those inspection reports and present it. It’s like you’ve got those 10 days to be able to do your due diligence or whatever you negotiate in that timeframe, the due diligence period. But usually I do it on the last day like, “Hey, we would love to buy this, but this is what it’s going to cost us. We need this kind of discount.” And by then they’re already so happy to be in contract and just be done with it that it’s like, okay, that makes sense. This makes sense. Someone’s got to pay it. They might come back and say, well, let’s split it or whatever, but you got to go in as an investor knowing this is the max I can pay and they’ll take it or they’ll leave it.
This is the time you negotiate everything. They’ll say yes or they’ll say no, but they might be just like, “You know what? I want to be done with it too. If I keep it, I got to fix these things anyway, so I’ll just let them fix it and I’ll slash the price.”

Dave:
Well, I like that, Kathy, because just so everyone knows, concessions, there are limits depending on who you’re borrowing from, how much of the purchase price you can accept in concessions. So you can’t just get 30% of the purchase price in concessions. It depends on the type of mortgage, conventional, FHI, VA. They all have different rules. What the hell? Boom. What’s going on here?

Kathy:
Howdy.

Dave:
What is going on? Henry is crashing our party right now. All right. Well, Henry, you need to answer the question. Best way to get a concession out of a seller right now.

Henry:
Best way to get a concession out of a seller right now? Yeah. Ask them.

Dave:
That’s basically what Tim said. Talk to them.

Henry:
Literally ask them and most of them will say yes right now.

Dave:
Yeah. Well, there we go.

James:
Actually, I do have one story on concessions real quick. There’s a different way you can do it too. So I’ve had property that’s really expensive right now. Great home. It will sell. Got buyers on the hook and the concessions that we’re negotiating right now, no interest rate buydown, no price change, nothing comes off the net, but they want a bunch of customizations done for the floor plan. I’m literally going to move the kitchen for them.

Dave:
Whoa. How much is that going to cost you?

James:
It’s about $70,000 worth of work, but this is a house where the next price cut would be a hundred grand.

Kathy:
Oh, wow.

James:
Okay. So ask whatever you want and see how you can bridge it. And as a seller, ask what can I do for the buyer to get them to write it up? And they thought that was a non-option, but we had a two and a half meeting. We marked it all out and I’m hoping by this weekend we’re mutual and I’m ripping the house back out.

Dave:
Oh, so that kind of reminds me of the point I was trying to make when Henry so rudely interrupted us, is that there are limits to how much concessions people can offer based on your loan, but things like what James are talking about, when the seller actually fixes the house, that does not count towards that limit. And so it is something that you can negotiate in addition to cash back at closing or covering closing costs or buying down rates that does not bump up against some of those financial limits. So that’s definitely a great strategy. All right, Henry, we decided just, you don’t have to bring a story. I had a happy story. James had a medium one. Kathy had a depressing story, so we’re slowly depressing people over the course of the episode. So James has a medium story for us, but we got to take a quick break.
We’ll be right back. Welcome back to On the Market. I’m here with James, Catherine and now Henry, bonus Henry episode. James, tell us a story. And Henry, you have to answer all the questions now. Kathy and I are just going to relax.

Henry:
I got you. I got you.

James:
So the article that I have is from, it’s realtor.com. It’s Fed official sounds warning on housing as affordability hits a 21 year low. The reason this article I think is so important is because we’re always trying to forecast down what do we do next? Whether it’s with the assets we have, the inventory we have, or what are we going to buy? How do we want to buy? What’s our buy price? What do we see? And our good friend here, Michael Barr, he’s predicting that things are not going to get more affordable, but the only thing that really is going to bring down affordability is price. It’s not going to be rate.

Dave:
That’s right. That’s correct.

James:
And right now, since 2000, prices are up 70% and incomes are only up 17%. And that’s the major issue and we might be time for a moment of truth with some pricing correction.

Dave:
I think that’s right.

James:
The Fed is signaling to us that we might see more rate hikes on the future and that if we think that rates are going to go much further down, they’re going to fluctuate a little bit here, but we shouldn’t… I think at the beginning of the year I was predicting they were going to be in the low sixes going into December, and that is not the case or it doesn’t appear to be.

Dave:
So what was the positive side of this story?

James:
What this tells me though is the money I’m losing today, I can make up if I buy right and I think there’s going to be plenty of deals. So as a buyer, I’m happy with this. As a seller, I’m not happy with this. But also as a seller, it tells me, “Hey, this isn’t going to get better, so I need to plan to sell now or refinance and keep.” You have to make that decision. Don’t get stuck in the middle going, “Man, I just hope it gets better.” It’s not going to. It may not get that much worse than, at least it depends on the market. I think Seattle’s gotten pretty hammered. I don’t know if it’s going to get that much worse, but it’s not going to get any better. I do know that. The other thing is I feel like the Fed’s actually being kind of fiscally responsible and this could help the bond markets.

Dave:
I agree. I do think it’s good in the long run. It’s definitely good in the long run. I was just going to say, James, the whole thing about affordability, it’s like this isn’t just housing. This is just human and American households. Affordability is too low. Something has to change. It can’t have this level of low affordability across everything. Assets are expensive. Insurance is expensive. Gas is expensive. Groceries are expensive. It has to get under control. There’s no easy button to get things moving again. And it’s going to be a while, in my opinion. There’s no off-ramp here that is quick. In the past, when inflation’s high like this, it can take years. Well, inflation was going down before the war in Iran. They were sort of winning that battle and now that’s reversed, but that war doesn’t seem like it’s ending anytime soon. And so it’s just going to be here for a while and people should plan accordingly.

Henry:
Two things I’m thinking about through all this turmoil and chaos is one, how do I prepare myself so that I can buy opportunities that come and hold them through the tough time? Because there are great opportunities and we’ve all seen cycles and the people who come out the winners in the cycles are the ones who found a way to buy when everybody said things were crazy. The people who were buying in 2009 and 2010, people though they were crazy, they made crap tons of money, right? Totally. So can you find a way to buy right now and hold through the downtime? And then can you find a way to transact and continue to produce income? What we’re finding is if a property is less expensive right now, it’s selling fast. Not only is it selling, but it’s selling quickly. Condition isn’t as important as an affordable price in the market that I’m in right now.
So go talk to your real estate agent and research what is selling. Who’s buying it? How frequently are they buying it? How long is it taking to sell? You just got to do a little more research right now and be super conservative and be ready to buy.

Dave:
I also just think, I’ve said this before, but the quality of assets that are going on sale is better.

Henry:
Yes.

Dave:
I’ve seen multifamily that would’ve never touched the MLS lingering on the MLS for a while. All stuff that would’ve been off market, pocket listing, sold for a lot of money. A location stuff was trading at a four cap off market. Now it’s like, that’s just lingering? Kind of like that. I also personally just think multifamily is going to recover faster than residential. Residential won’t take the hit that multifamily has hit, but that’s why I think multifamily is a better opportunity potentially in the next few years because everyone’s scared of it. Prices have already corrected 20%, some markets more. And when you start at a lower basis, the recovery is just better. It has more room to grow. So anyway, that’s kind of what I’m getting more personally interested in.

Kathy:
Well, the thing about multifamily is it is simply numbers. With housing, there’s a little bit more emotion involved. People are buying their home to live in. With multifamily as an investor, you’re buying it because you’re looking at numbers, period. Or you should be anyway, you should be emotionally attached to it. So anytime you have inflation and costs are going up, you better see incomes going up at the same time or else the value’s coming down, period. Because the way you judge the value of a multifamily property is income versus expenses. That’s it. There’s nothing more to it. So if expenses are going up and incomes aren’t going up, the price is coming down. And unfortunately, a lot of owners of multifamily are emotionally attached and not looking at, it’s just math. So hopefully the sellers will eventually, they’ll have to come to terms with the fact that it’s not that they’re discounting the property, they’re just coming in at the price the property is worth today.
There’s a difference. It’s not discounted.

Dave:
That’s a good point.

Kathy:
It’s maybe lower than what they paid, but this is just, it’s what it’s worth. Yeah, that’s right. Period. There’s no arguing numbers. You can’t argue it. I

Dave:
Also just add, this is nerdy, but a rising treasury yield competes directly with multifamily and commercial real estate.

Kathy:
That’s

Dave:
Right. Because as Kathy said, it’s just math. You’re buying an income stream. And so if you can get a 5.2% yield on a 10-year US treasury with virtually no risk, would you take a multifamily deal that’s only getting you five and a half or 6% cash on cash return? No.

Kathy:
No, you better not.

Dave:
So I think this is a fresh, big competition for commercial that’s going to push down values even more. And I don’t want anyone to lose their shirt, but commercial real estate is cyclical. It goes through these boom and bust cycles. It’s part of the business. The people who are in this business understand that. And I think we’re probably in the next year or two going to be in the good part of that cycle to start buying. All right, so that’s our second story. We have one more coming from Kathy, which is apparently depressing, but stick around. Stick around for the depressing part, okay? We’ll make it fun somehow. We’ll still make it funny. We’ll be right back. Welcome back to On the Market. I’m Dave Meyer here with Kathy, Henry, and James. We’ve so far talked about concessions. We’ve talked about what’s going on with rates.
Kathy, what do you got for us?

Kathy:
Well, we were talking about multifamily, so let’s keep talking about it. This is an article from BizNow. The subject line is, “Mold is growing into major problem for apartment owners.” Mold? Mold, as if apartment owners don’t have enough to deal with.

Dave:
James loves mold.

James:
Sounds like a deal.

Kathy:
So the article goes on to say that lawsuits against multifamily landlords over mold and habitability are on the rise and significantly. And the article kind of goes on to say it’s partly due to all these rising expenses, so there’s not enough money left for maintenance, for general maintenance. So some of that deferred maintenance is building up, which is just like, oh, these owners are getting so hammered, it’s hard to watch. But also what I hated about this article is that, let me see if I can find this quote. It’s really, the issue has emerged over the past five years now. It’s not like maybe the mold has changed so much in five years, but what did change is the litigation around it. And there’s literally a quote, “Southern California attorney told Bisnow that his firm began focusing on mold litigation during the pandemic when fewer people were driving and its auto accident business slowed down.” Ever since COVID, this has become now in the spotlight.
So you do need to be just so careful. I owned an apartment you guys once with mold and it was painful. It was painful and expensive. So I know James loves mold, but maybe if you’re buying and negotiating, but not if you’re owning, it’s very hard. I’m curious, James, what do you do with mold?

James:
We buy cheaper, and so we can afford to rip everything out.

Kathy:
Just rip it all out.

James:
I mean, that’s why I like heavy value add, because some properties, especially in the ’80s, the ’80s have a lot of, after the high inflation, you got kind of cheaper energy code, the insulation, the windows, the siding, they sweat a lot more than a lot of houses, at least from my experience. Those are the harder ones because you’re not ripping them all the way out. Luckily, the homes, the properties that we’re buying that have a lot of mold, major mold, we’re taking them all the way down to studs and a lot of the wood’s being replaced. We kill as primer it, we bleach it, and then you can snap an air quality test, but you just want to cover yourself, but you got to take care of it or it keeps going and it keeps running. And the best thing you can do as a buyer, if you don’t have that experience in construction, hire a mold remediation company.
We’ve been talking a lot about sellers giving concessions. Well, they’ll concede and pay that bill to make sure it’s done by a licensed and bonding company.

Dave:
That’s great advice.

Kathy:
Well, if you are not a buyer and you are an owner, make sure that you are checking your homes, your properties to make sure there is not water intrusion, get those regular property inspections. I’m guessing there might be, because people are cutting back on budget, they’re not doing those inspections as often as they should be because they don’t want to know what they have to pay.

Henry:
If you’ve got a sizable portfolio in a lot of areas, I know there’s a couple companies out here that do it, but there is companies who literally specialize in just preventative maintenance. They’ll go to all your properties and do checks like this on a regular basis so that you can have some peace of mind.

Kathy:
Yeah. And also for your tenants, I mean, it’s a serious issue. If it’s bad mold, it can really cause serious health problems. You want to stay on top of it.

Dave:
I feel like it’s really regional. Northwest, big problem. My property’s in Colorado, I’ve never even heard the word mold. It’s so

Kathy:
Hot.

Dave:
I’m sure it’s in Utah. It’s just so dry. You don’t really have to deal with it. I’m sure in the South, Henry, it’s pretty –

Henry:
No, it’s moist.

Dave:
Everything’s just fumid there. I feel like it’s just always kind of moist.

Henry:
Moist, yes. It’s just a little damp. Everything’s a little damp.

James:
As a landlord, stay in front of your repairs to prevent this. I had something happen at one of my single families and I went out there and they’re like, “Yeah, there’s a little bit of moisture building up.” And I’m like, “What? We just had tenants in here. I just cleaned it up.” And I went out there and it turns out randomly seven windows failed for whatever reason. Whoa. And there’s so many different ways I could have tried to fix that, but at the end of the day, I didn’t want to spend the money, but I just replaced all the windows in that house. As the tenants were in, I gave them one free month’s rent because we had to do that process. And so it sucks. Sometimes you got to pay the bill, but you got to take care of your tenants.

Kathy:
Oh yeah, absolutely.

Dave:
Absolutely. And it makes you money over the wrong thing. It’s the right thing to do, but it’s also, it’s better for everyone long-term. It’s ridiculous not to. But Kathy, I don’t think this is… I feel bad for the current owners, but another reason, multifamily’s going to be on sale for the next couple years. We’re going to have a long sale on multifamily and it’s going to be a good opportunity because to Kathy’s point, unlike the residential market, the recovery won’t be emotional either. When the math starts making sense, if you buy in, the recovery will grow. It’s not all about personal finance. There’s a lot of institutional capital here. I think it’s something to keep an eye on. I invest a lot in multifamily through syndications, but I’m pretty seriously considering buying just straight up owning and operating my own in the near future because I think it’s just a great way to secure retirement.
I’m not even in it for the cycle. If you think, can I buy a 12 or 15 unit, pay it off in a couple years, and that could be all of your income for your retirement.That’s an opportunity to keep an eye out for the next few years.

Henry:
Yeah.

Dave:
All right. Well, that’s our show. Thank you guys so much for being here. Henry, thanks for the surprise visit. And thank you all so much for listening to this episode of On the Market. We’ll see y’all next time.

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