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☕ DrinkCoffeeAndProfit
Smart money moves before breakfast
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· · · Partner Message · · ·
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$0.52/share ends |
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Who saw it early
One shark missed Uber. Another did not miss this one.
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There is a story that still follows Mark Cuban. Early on, someone pitched him on a small, unpolished startup. It did not look like an $80 billion company. So he passed. That company was Uber.
That is how the big ones tend to look early. Uncertain. Easy to ignore. Until suddenly they are everywhere.
Kevin Harrington, one of the original sharks from Shark Tank, looked at Mode Mobile and did not pass. Mode pays people for everyday phone use, browsing, listening to music, playing games, even charging the device. Like Uber turned cars into income, Mode turns smartphones into EarnPhones.
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What he saw under the hood
490M+ users · $1B+ earned and saved by users
$115M+ revenue · 32,481% three-year growth
Number one fastest-growing software company in North America (Deloitte)
~60,000+ investors · Nasdaq ticker $MODE reserved
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This is the phase most people miss and the one Harrington did not. Early, quiet, before it feels mainstream. The company is still private, and shares are $0.52 each with up to 20% bonus shares for early investors. The $0.52 share price deadline.
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Take a closer look ›
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invest.modemobile.com
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This is a paid advertisement for Mode Mobile's Regulation A+ offering. Please read the offering circular and related risks at invest.modemobile.com. Investor and advisor references reflect factual participation and do not imply a recommendation to invest. Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur. The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period. *Mode revenue and EBITDA numbers includes full year revenue and EBITDA of businesses acquired in 2025. Investing involves a high degree of risk, including the possible loss of your entire investment.
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Inspiration Quote for the Day
“The safest way to double your money is to fold it in half and put it back in your pocket.”
— Will Rogers
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The Morning Ritual
Your Neighbor Borrowed $93,000 Against His House Last Quarter. Ask Him What He Bought.
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My neighbor showed me his new deck last weekend. Cedar planks, built-in lighting, a little bar area in the corner. His wife said the whole job ran `$38,000`. I asked how he paid for it. He grinned and said the house did.
The house did. As if the walls opened a wallet. What he meant was he took a home equity line of credit at `7.25%` interest. He kept his `3.1%` mortgage underneath. He thinks he got a deal. I think he just borrowed from his own retirement at double the rate. And he is not alone. Not even close.
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In One Sip
► Americans pulled `$47` billion in equity from their homes last quarter. That is the highest first-quarter withdrawal since 2021.
► `248,000` homeowners took second-lien loans. Another `234,000` did cash-out refinances at an average of `$93,000` each.
► `3.9` million people who locked in pandemic-era mortgages between 2020 and 2022 now carry a second lien on top of that cheap first mortgage.
► The average HELOC rate sits at `7.25%`. Home equity loans average `7.86%`. Both are tied to the prime rate and could rise further.
► The buried story: traders now price a `70%` chance the Fed’s next move is a hike, not a cut. If that happens, every variable-rate HELOC in America gets repriced overnight.
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Why It Matters for Your Money
Start with the math on a `$50,000` HELOC at `7.25%`. During the ten-year draw period, you pay about `$302` a month. Sounds manageable. But after the draw period ends, you repay principal and interest for another twenty years. Over the full thirty-year life of that HELOC, you will pay more than `$80,000` in interest alone. The total out of your pocket: north of `$130,000`. You borrowed `$50,000` against a house you already own. The house charged you more than double.
Now think about what that money bought. Some went to renovations. Fair enough. But financial advisors keep saying the same thing: too many borrowers are using equity for credit card payoff, cars, and trips. That is not reinvesting. That is consuming your largest asset at `7%` to `8%` a year.
Here is the part that stings. `3.9` million of these second-lien borrowers have primary mortgages in the `3%` to `4%` range. They locked in the cheapest debt of their lifetimes during COVID. Now they are layering expensive debt on top of it. The cheap mortgage stays. The expensive second loan eats the savings.
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The Wealth Angle
I think the real risk is timing. The Fed held rates flat in June. But the market is now pricing a `70%` probability that the next move is up. HELOCs are tied to the prime rate, currently `6.75%`. A single quarter-point hike turns your `7.25%` HELOC into `7.50%` overnight. Two hikes and you are north of `7.75%`.
The median home in America is worth `$429,300`. The average homeowner sits on `$295,000` in equity. That sounds like wealth. It is wealth. But only if you do not drain it at `8%` interest to cover costs that inflation created. I watched people do this in 2006 and 2007. The phrase back then was “using your home as an ATM.” The endings were not gentle.
The difference now is that most of these borrowers still have those pandemic-era rates underneath. That is a real advantage. But only if you do not bury it under a second loan you took to pay for something already gone.
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☕ Key Insight:
`3.9` million Americans are borrowing against their homes at `7%` to `8%` while sitting on `3%` mortgages underneath. The math only works if the money goes into something that earns more than it costs. For most of them, it does not.
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Coffee Break Move
If you have a HELOC: Pull up the statement this morning. Look at the rate. If it is variable, do one calculation: what happens to your monthly payment if the prime rate rises by a quarter point? That is your downside in a single Fed meeting. If you cannot absorb that increase comfortably, pay down the balance before it arrives.
If you are thinking about tapping equity: Ask yourself one question before you sign. Will this money still be working for me in five years? A roof replacement might. A kitchen remodel might. A consolidation loan for credit cards you will run back up will not.
I thought about my neighbor’s deck again this morning. Looked good in the sunset. Cost him `$38,000` at `7.25%`. He will pay closer to `$55,000` before that line closes out. The cedar will need replacing before the last payment clears.
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