hi, everyone, welcome to "on the money," i'm becky quick. unusual way to pay for a house. why crowdfunding for millennials is a new way. battle of the big boys, craft brewers, who will survive? the road less traveled and why some cities and towns flourish while others fail. found money. what to do if you find an inheritance coming your way. plus, taking the hassle out of finding a babysitter. the company that wants to take the hassle out of childcare. "on the money" starts right now. >> announcer: this is "on the money," your money, your life, your future. . >> we begin with your home. ask most young renters today and they'll tell you while t

payment is harder than it's ever been. high home prices and student debt seem to add, but what if you could use crowdfunding to raise the money? that's our cover story today. our diana olick has more. >> reporter: today's young americans are more social, more willing to share, but will they help each other buy homes? that is the bet one mortgage lender is banking on as it launches the first program allowing potential home buyers to crowdfund their down payment. >> this allows you to tell your story, allows for folks to be able to buy in to the story of what it is you have, your loan story, your home story. >> reporter: cmg financial, a mortgage lender, is launching "home fund me." it's an online platform that gives home buyers a way to both market their needs and receive multiple tax-free gifts from anyone to finance the down payment on a home. previously lenders limited down payment assistance to close family members, employers, nonprofits, and religious

documentation. this pilot program has the blessing of fannie mae and freddie mac, which the vast majority of mortgages today. >> what we're doing today is trying to test and learn a variety of solutions, because the preferences for today's home buyers have changed significantly. >> reporter: millennials are not only saddled with high levels of student loan debt, they are also paying very high rent, which makes saving harder, but they are also starting to get married and have children. >> of course, we see the wedding registries. you're going to spend $250 on a coffee making machine. if that $250 goes to a down payment of your home, at the very least, at the very least i improve your quality of life. is skin in the game.flag i if you're crowdfunding your down payment and then using a mortgage, are you really invested in the home? >> why not? you can crowd source for everything else, so why not for home ownership? >> if i'm goin a house, i'm going to save the money

>> reporter: no down payment loans were blamed when home prices plummeted and thousands defaulted on their loans and even walked away because they had nothing to lose. >> skin in the game is a little bit of a confusing concept. if you pay for clothing costs, is that skin in the game, is that down payment? would you rather have somebody have a lot of money in the bank after the home and no down payment, or the opposite? >> reporter: that's why this is just a test program to see if not only the crowd is willing, but also if home buyers will see that gift for what it's worth. >> back and forth on this. really interesting phenomenon. diana, thank you very much. so, should we crowdfund dn payments to try and help stimulate the housing market, or is this just a disaster waiting to happen? waiting for us right now to talk more about it is rick sharga of ten-x, an online real estate sales and auction company, and john taylor, president and ceo of the national community reinvestment coalition. gentlemen, thank you both being here. you know, rick, we a

the housing bubble burst and at that point you were an analyst during the foreclosure crisis. you say you see red flags here. what are they? >> zero down payment loan programs have been spectacul failures in the past, and really it's because most of the people who have been able to get these loans simply haven't been ready for the financial responsibility of home ownership, and that's one of the reasons that lenders historically have looked for some down payment, not necessarily 20% down payment, but just a show of financial responsibili f discipline that indicates that borrower is ready for the financial burden that home owners often implies. >> john, that's what we always call skin in the game, we want people to feel like they losi something. you think this is a good. is that? >> first off, we're not talking about investors who are flipping properties. we're talking about people who are going to live in these homes with their families. they are still going to be fees involved, taxes involved, there's other things. the skin in the game also becomes their credit

they are not walking away because their down payment is low or minimal, they are walking away because they can't afford to stay in the house, and that's foreclosures, right? number one. number two is, they lose their job or there's a disruption of income or divorce. those are the two reasons. it's not down payment. >> rick, let's talk about the millennial they do have much higher student debt levels, they are paying higher levels of rent, so if not this program, how can we help the millennials get into buying their first homes? >> in a lot of cases millennials are helping themselves. we have the highest level of young adults living at home with their parents that we've had in history. in many cases, they are keeping their current housing costs low so they can save for that next house. we've really never had, with the exception of veterans administration loans, a zero-down loan product that hasn't had much higher rates of foreclosure or rates of default, so what we don't want to be doing is putting somebody into a house

replacement or unexpected car repair away from missing a mortgage payment, and in a lot of cases those people who don't have a cushion, they don't have a financial buffer, can never catch back up. mu worse -- >> down payment as much as it is making sure you have money in the bank. >> yeah, and that's a great point, becky. if you don't have money for a down payment, it's very likely you probably don't have a lot of money in the bank. >> rick just said every zero down payment program has inevitably led to higher foreclosure rates. >> actually, what he said, he took the example of the biggest zero down payment, which is not actually accurate. when you do a va loan, you're doing a down payment, but it's being built into your mortgage payment and spread out over the life of the loan, but that's the perfect example. and these g.i.s, most of them are actually young, they are probably millennial age, and they are getting loans that they are essentially not putting anything down and the result has been phenomenal, even better than most of the mortgage

>> rick, what do you think in terms of when the millennials will start buying houses? >> they are starting to buy houses. right now they are the biggest group of overall home buyers, probably 37%, 38% of existing home purchases are going to millennials, and when you look at first-time home purchases, they represent two-thirds. >> rick and john, thank you both for joining us today. >> thank. now here's a look at what's making news as we head into a new week "on the money." am again. retail sales rebounded last mo increasing by 1.6%, still the largest one-month increase we've seen since march of 2015. strong auto sales and higher gasoline prices pushed the number higher. it was a record setting week for the stock market. all three major indexes continuing their slow melt up with the dow hitting a new high on wednesday. so did the nasdaq and s&p 500, which also set records in early trading on friday. the

reserve released minutes from its last meeting and in spite of some uncertainty, the open market committee made it clear another rate hike is likely to come in december. rates have been historically low for nearly a decade. up next, we are "on the money," the big business of small brewers. we'll take you to the october oktoberfest of all kinds of craft beer. later, after traveling, performing, and seeing the whole country, ideas from a singer-congress writersingeg wrs a small town thrive. right now look how the stock sergeant. they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need.

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♪ ♪ just saying the word beer can bring a smile to your face, but there is a big business that's battling for your brewery buck, and even though beer sales

are growing and totals more than $23 billion. those small brewers are working to differentiate themselves from the big guys. >> reporter: it's the super bowl of the beer industry, the great american beer festival. more than 60,000 craft beer fans stormed through the doors of the denver event this week. hundreds of brewers, including colorado's oldest brew pub poured their brews to stand out in a competitive marketplace. >> we experiment a lot. we brewed a beer recently with yams and marshmallows, also have a beer we've made with donuts and coffee. cucumbers and black sea salt. we're trying to use as many interesting ingredients and inspirations as we can. >> reporter: you wouldn't have any idea by the looks, but the beer category is struggling. overall beer sales were flat for 2016 and have been on the decline so far this year. >> nobody's really loyal to a

longer, be it wine or beer. >> reporter: so with spirits and wine killing beer's buzz, brewers are having to adapt and get innovative. >> more flavor and variety than ever before and we're seeing companies respond. there's more options. >> reporter: 800 brewers are here pouring their brews this week and a record 5,700 breweries are operating nationwide, investing in businesses and betting on beer's turn around. and craft brewers are finding ways to stand out. they've adapted a seal of independence, along with 2,300 other craft brewers, to let consumers know what they are drinking is truly craft. this seal is the response to big beer companies like anheuser-busch and others buying out more than a dozen craft breweries to mass produce, but does the seal impact the purchase power to help consumers know they are supporting the little guy? >> sure. if i'm somewhere else and i see i'm not familiar with any of the local beers, absolutely i'd say

of some mass produced stuff that i don't really like anymore. >> i don't really care. i'll try anything. >> while the jury is still out on the impact of consumer choice, industry experts say it might make a difference, but with a very niche group of beer consumers. >> you start to wonder, when you start seeing the different brewers, you start to think is there too much choice and not enough shelf space. >> we are seeing it slow down, which raises the question, is there a bubble that's going to burst, and what i'm hearing is, this is really more of a natural correction than a bubble bursting and there is still room to grow, and consumers are still, you know, craving different flavors. >>o try the donut beer that i was just talking about. homer simpson's best idea, beer and donuts together. >> the combo. >> perfect. landon, thank you. singer-songwriter dar williams spent a career on a road and tour in venues across america. her unique perspective on what

makes a small city thrive is in her new book called "what i've seen in a thousand towns." she's sold a million albums and here's a sneak peek of her new song "spring street ♪ dar williams is with us right now, and thanks for joining us today. >> thank you. >> you've had a pretty unique perspective on america by getting to see these towns up close on tour. how'd you come up with the idea for this book? >> well, a friend of mine was saying what do you think determines relationships within communities, and i was like, oh, values, politics. nope, just proximity to one another, and i was like -- no. people don't get along. i thought, no, they do. and, actually, i've been to a lot of towns where there's almost this kind of collective feel of people choosing to say, i'm going to be with neighbors and that's a good thing. so i call that positive proximity. >> how's the proximity meaning we

everything, but we're going to be neighborly almost? >> yeah, and my coming out of this, out of writing this whole thing, i thought, okay, you know what, opposite of division is not unity, it's collaboration. and people make that decision. they are not going to get along perfectly with one another, but they know how to collaborate and find the humor and the skill sets and do all that. sometimes tempers do flare, and my friend calls it grappling, and you grapple. and you've got that guy who stands up and he talks for too long and the woman who stands up and gets very angry, but actually a community can embrace that, too, and sometimes that fiery temper is what, you know, pushes you forward. >> is it possible to do that in big cities? have you been to big cities where you feel they can accomplish that? >> yes. my sense is when they get into sort of the neighborhoods, you know, in milwaukee and they are called wards, and there are these beautiful

chicago and minneapolis, and then when they bridge to one another, these different neighborhoods, then you've got the ideal. then you're all in one city, bridging all of these beautiful neig so everybody gets the best of both worlds. >> but you have to start small and local and build from there? >> ideally, you know, your school, your park, you want to dig in. you know, you just want to find that place that you feel you dig in and you belong and yo contribution is valuable and you feel understood. >> where of all your travels, what are one or two of your favorite towns today? >> i love -- i wrote about phoenixville, pennsylvania, and i think the fact that they have -- they rose up from their post-industrial, post-steel mill past just on their own steam, no new company per se, they just getting into their old architecture and enjoying, you know, what

is inspiring. one of the things they have is the blob, the blob was filmed there and they have a blob fest and they celebrate -- >> my brother and sister-in-law live there, i know phoenixville well. >> this one weekend they talk about sci-fi, it can get really serious. i was there during godzilla weekend and the stores all participate, and they are very proud of that. so, one of my new mottos is every town has a blob, and phoenixville really showed how much you can do just by digging into your own identity, your own past, and finding one another on the way. >> dar, thank you so much for joining us. >> thank you. >> we really appreciate your time. >> thank you. up next, we're "on the money." it may be the largest ever transfer of wealth. gen-x and millennials stand to inherit $30 trillion. what to do and what not to do if sof you. later, need a liberty mutual sto

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$30 trillion. that's the estimated value of what heirs of baby boomers will inherit over the next few decades, but what's the best way to handle an inheritance? gail cohen is the chair of fiduciary international. thanks for being here

should do when you find out you've come into some inheritance? >> you probably should be consulting a financial adviser. if this is the kind of inheritance or amount of money that's really going to make a difference in your life. so, financial advisers will be able to help you decide what to do with the money that you've inherited. >> probably don't do anything right away. >> absolutely, don't rush into . >> are there things, mistakes, that people commonly make? >> one of the biggest mistakes people make is to invest the money without doing due diligence or the kind of research they need to do into what kind of investment they are making, who they are investing with, and, therefore, subject to loss. >> what would i know, what would be some red flags that would tell me, okay, wait a second, buyer beware, because you're going to have a lot of people pitching you a lot of stuff. >> absolutely. what you should be looking fo

from a reputable company and they should be subject to the fiduciary role, which we've heard about in the news, but that means this is a person who's required by law to be looking out for your interests first. >> some states have inheritance taxes. some -- are there things we should be looking at separately? do i need to report it if i have a cash inheritance, do i report it as income? >> so, that's a great question. typically, not. inheritances, items you inherit under a will are typically not subject to income tax. if, on the other hand, you're a beneficiary of a retirement plan or an ira that you get directly, that might be subject to income tax, because it was a tax-deferred vehicle to begin with. >> gail, thanks for joining us today. >> my pleasure. up next "on the money," a look at the news for the week ahead. and the uber of babysitting. a new app that delivers babysitters on

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♪ ♪ here are the stories coming up that may impact your money this week. on tuesday we'll be seeing how busy factories were with the industrial production report. wednesday we'll be getting the latest housing starts numb on t indicators are out that

business cycle. thursday, by the way, is also the 30th anniversary of black monday. that's the day that the dow fell 22% just in one trading session. and remember having to leave your house to rent a movie? the horror. blockbuster opened its first store on this day back in 1985. finding a babysitter at the last minute can be hard as finding a taxi in the rain, but now two women in california have a solution to that problem. our kate rogers has more. >> reporter: every parent knows how hard it can be to find reliable childcare, especially on s >> reporter: helpr is bringing experienced sitters to families in a pinch. >> book a sitter the way you'd book an uber, but we have a lot of screening and you can get consistent babysitters thro the app. we call that continuity of care. >> reporter: the start-up was launched early 2016. the duo met at the university of california-santa barbara, where they launched their first childcare

today helpr has 8,000 clients in los angeles and san francisco, and plans to expand into chicago and new york this year. sitter rates begin at $25 an hour, and the company works to fulfill on-demand requests. >> are you excited to play? >> yeah! >> me, too. >> reporter: helpr's sitters also go through extensive vetting. >> interview process that includes an in-person interview. we check professional references, so we call parents, day care camps, whenever they may have worked in the past. we check for cpr certification, social media review, as well as a background check. >> reporter: also working with a dozen companies, as well as snap, to offer childcare services as a benefit to employees. >> not a lot of paid maternity leave or sick leave, so we're really trying to push culture into these spaces of supporting all those working parent conditions. >> reporter: the company hopes childcare will become a greater part of overall benefits packages in the future as the debate over paid parental leave

course, continues to heat up nationwide. >> there are times you can definitely be in a pinch. right now the service is only available in parts of california. do they plan to expand? >> through the end of this year they are looking to go into chicago and new york city, which would be big markets for them, but what's important is we mentioned they are working with companies like snap to offer these as benefits to employees. that's where they hope to take the business in the future, working with more large companies like that and getting them to offer childcare as part of the overall benefits package. >> really interesting. kate, thank you so much. that's the show for today, i'm becky quick. thank you so much for joining us. next week, are you thinking of adding a new member to your family? guess what, we've got some things to consider before you bring home a pet. each week keep it right here. we're "on the money." have a great one and we'll see yo

good morning, america. this morning, new firestorms the raging flames in california's wine country. buildings burning. >> mandatory evacuation order. leave your homes. >> massive efforts. in the air. and on the ground. to save lives and property. >> this is truly one of the greatest, if not the greatest tragedy that california has ever faced. >> roads jammed with people fleeing the flames. tender care for the littlest victims. and from the ashes. >> izzy! >> a miracle survival story. >> we didn't expect to see her. the pain in puerto rico. the governor giving a new estimate of how long it'll take