- RT @Dave_Champion Obama asks DOJ to look at whether AZ immigration law is constitutional. Odd that he never did that with #Healthcare #tcot #
- RT @wilw: You know, kids, when I was your age, the internet was 80 columns wide and built entirely out of text. #
- RT @BudgetsAreSexy: RT @FinanciallyPoor "The real measure of your wealth is how much you'd be worth if you lost all your money." ~ Unknown #
- Official review of the double-down: Unimpressive. Not enough bacon and soggy breading on the chicken. #
- @FARNOOSH Try Ubertwitter. I haven't found a reason to complain. in reply to FARNOOSH #
- Personal inbox zero! #
- Work email inbox zero! #
- StepUp3D: Lame dancing flick using VomitCam instead or choreography. #
- I approve of the Nightmare remake. #Krueger #
Property Managers
As of last Monday, we don’t have any tenants in our rental house.
That makes me sad.
It makes me sadder that we were too nice and gave them an extra week free to get their stuff moved out.
Now we get the fun job of painting, replacing the linoleum, and probably cleaning the place up to get it ready for new renters that we haven’t found yet.
New renters.
Ick.
Now, we could put an ad on Craigslist and try to find renters ourselves.
Background checks.
Credit checks.
Interviews and walk-throughs.
Then, when we find someone, we’ll be collecting rent and dealing with any whiny issues that come up.
Yuck.
Or….
We can hire a property manager. The big name property management company in our area charges a $99 set-up fee plus $80 per month.
That covers:
- Rent collection
- Coordinating maintenance
- Accounting
- All of the other mundane details
If we add on the tenant-finding service, we’ll be paying them one-month’s rent, but they’ll handle the showings, advertising, background checks, and the lease. And their average tenant placement is 19 days. Another house in the neighborhood that used them had the house rented in about a week.
That moves our landlording firmly into the passive side-hustle category and all it costs us is (essentially) one and a half month’s rent with the added bonus that we’ll be asking the right amount for rent according to the market, instead of guessing. Our last tenants were probably paying $300 too little.
I think the property managers are the way to go, but I have absolutely no experience here.
Have any of you used a property manager? Was it good? Bad? Hell-on-Earth?
Selling Your Home: The Real Estate Agent
If you are not able or willing to sell your home yourself, you’ll need to find a real estate agent. A realtor is someone who deals with all of the hassles involved in selling your home in exchange for a fee of up to 7% of the selling price.
The hassles include marketing, an objective price analysis, advertising on the internet and in newspapers, providing a yard sign, negotiating the sale price, reviewing and filling out the contracts, and navigating the entire process for you. The aren’t meaningless duties, so make sure you are getting what you pay for. You need to find the right realtor for you.
The key to to ask questions, particularly the right questions. You can ask the wrong ones if you’d like, but they tend not to help much.
Helpful questions include:
- “Can I call your previous clients?” If the answer is no, run away! If the answer is yes, get the list and call them.
- “Have you sold any homes near here recently?” Get the names and numbers of the customers and call them. Find out how it went and what they wish would have happened differently. If the realtor hasn’t sold nearby homes recently, keep looking.
- “Will you put your sales strategy in writing?” If it’s not in writing, you may be left paying the full commission, without getting the full promised service.
- “What will you tell a potential buyer that wants to negotiate?” Make sure you and your realtor are on the same page.
Now for some secrets that realtors will not volunteer.
- The selling fee is negotiable. If you live in a popular development, or if nearby homes have sold quickly, you should be able to get your fee reduced a couple of points.
- You don’t have to sign an exclusive listing agreement. With an exclusive agreement, you will pay the realtor a fee if the house sells. Period. With a non-exclusive agreement, you can list with several agents and only pay the one who actually sells your house. If you find the buyer, you won’t pay a selling commission at all.
Selling your house can be intimidating and realtors are there to make the task easier for you. Have you had any problems with real estate agents?
What’s In Your Wallet?
- Image via Wikipedia
Seeing Crystal play copycat made me want to play, too.
This won’t take long. I quit carrying a wallet a few months ago in favor of a Slim-Clip. That helps eliminate wallet clutter.
Here goes nothing:
- $0. I usually carry a $150 or so all the time. I haven’t made it to the bank in a few days, and I spent my last $7 on parking.
- USBank Flex Perks VISA check card. 0.5% back on all purchases and, theoretically, up to 25% back on some.
- Penfed Platinum Cash Rewards VISA card. 1% on everything, 2% on groceries, 5% on gas. We don’t use this much, since we are primarily a cash family.
- Driver’s license.
- My health insurance card.
- Wells Fargo VISA debit card for my business account.
- Expired health insurance card.
- Car insurance cards. Car, truck, and motorcycle. 1 expired and 1 valid for each.
- AAA card.
- Carry permit.
- Business cards for 2 attorneys.
- Dental insurance card.
If I go through the rest of my pockets, I have a pocket knife, 16 cents, a Gerber Artifact, and my library card.
Including my jacket pockets will add a Cold Steel Sharkie, business cards, a lighter, another pocket knife, a fingernail clipper, a small moleskin notebook, a ticket to Evil Dead: The Musical and matching brochure, a pad of checks, hand-sanitizing wipes, and a diaper to the list.
Now that I’ve gone through my stuff, I threw out the expired cards. My jacket will certainly accumulate more stuff over the winter, but it’s spent the last 6 months in the closet.
What’s in your wallet?
Mortgage Race
I spent last week at the Financial Blogger Conference. Saturday night was the big debauch, a 90s themed hip-hop dance party.
Yeah.
Instead, Crystal, Suba, and I hosted a super-secret pizza party to let some of the less “dance party” inclined attendees discuss things like the sanitary concerns of group body shots, sex toys, and horror movies.
During the course of the party, Crystal and I decided to race to pay off our mortgages.
Her balance is just under $25,000.
My balance is $26,266.40.
We both technically have the cash to pay off the balances right now, but we are both dealing with secondary housing issues. She’s building a new one, and I’m updating an inherited house. Neither of us is willing to use our cash reserves to pay off the balance right this moment.
Now that my credit card is paid off, I’ve moved that money to an extra interest-only payment on my mortgage, effectively doubling my mortgage payment, which puts my projected payoff date as about the end of next year. Crystal’s aiming for June, so I’ll have to hurry.
We do have tenants lined up for February, and all of the non-expense related rent will go to the mortgage.
I think I can win.
Update:
I forgot to mention the terms of the bet. The loser has to go visit the winner. When I win, Crystal’s going to fly to Minnesota to experience snow.
What to Take Away From John Cleese’s Divorce
If you haven’t been kept under a rock your whole life, you’re likely familiar with actor and comedian John Cleese. Part of the infamous Monty Python crew, he starred in films such as Monty Python’s Quest for the Holy Grail, and television shows such as Faulty Towers. However, are you familiar with what has happened to Mr. Cleese financially over the past few years?
When Cleese divorced his third wife she ended up with a divorce settlement that quite literally made her richer than him, despite the fact that they were married for only 16 years and had produced no children.
Divorce is, unfortunately, a fixture of modern society, and people of both sexes need to know how they can protect their personal finances in case of a divorce. After all, these days more than 50% of marriages end in divorce, so not preparing yourself financially for it is engaging is some rather wishful thinking. So how best to protect yourself and your personal finances, should you be unfortunate enough to have to go through one?
If you are the higher-earning party, get a pre-nup prior to marriage; this simply cannot be overemphasized. Cleese himself, already married to wife number four, incidentally, was told that he should have her sign a prenuptial agreement, he initially didn’t want to, despite having just been taken to the proverbial cleaners. He only reluctantly had one written up when his legal team essentially insisted. Even though prenups can be challenged or modified in court, if you are the party bringing more assets to the relationship, it is irresponsible of you not to solicit a prenuptial agreement from a potential spouse.
Another thing to keep in mind is that you should protect assets you have in joint accounts with your spouse, and also begin to actively monitor your credit, if things become acrimonious between you two. This way, you will prevent them from absconding with the totality of your shared funds, or ruining your credit if they are feeling malicious. If you need further information on how to do this properly, speak with a qualified financial planner.
So if you find yourself considering marriage and either have significant assets to protect or suspect you might have them in the future, you owe it to yourself to look into the legalities surrounding prenuptial agreements, and other thorny issues related to personal finance. Failure to do so can end up seriously impacting your life in a negative way, should you ever be faced with a vindictive or greedy spouse; protect yourself!
