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November 19, 2011, at 5:00 am If you're new to BFS, please subscribe to my RSS feed. It shows me a vote of support and keeps me motivated to keep your attention. If you have any questions or comments for me, please contact me and I'll get back to you asap. Thanks for visiting! The following is a guest post.
Investors in real estate need to know the following information before closing on any personal or investment real estate transactions.
Get It In Writing
There are a lot of so called property investment deals out there. Investors have to be smart to avoid being taken advantage of when buying real estate. Some agents and brokers will make verbal promises that they fail to deliver on. That is why it is essential that you get everything detailed in written form in the contract. The written contract is a legally binding agreement that should contain all of the information that is pertinent to the real estate deal. You may find yourself missing out on extra perks because they are not explicitly covered in the contract.
Know Exactly What You Are Buying
You need to be familiar with the terminology in the real estate industry to avoid negotiating a bad deal. A traditional real estate deal gives you leverage to have any necessary repairs made before purchasing the home. Everything needs to be in proper working order and up to code. Short sale and auction purchases allow you to buy a home at a discounted rate in as-is condition. You will be responsible for performing renovation and repair work yourself. This can make your home buying costs a lot more expensive than you expected. It is important to know this so you do not make a mistake and buy the wrong property for you.
Pay Attention To The Details
There are different rules that govern domestic property sales and international investment property sales. You need to familiarize yourself with the laws and regulations in the state, region, or country. Some communities have higher fees and taxes that come along with a real estate purchase. For example, an investor in real estate in a foreign country may have much higher taxes to pay than someone who buys a piece of property in the United States. You should know this going in so you are not caught off guard by any surprise bills that may show up in the mail.
November 18, 2011, at 6:00 am
There is only a month and a half left of the year, so I think it’s time to check-in on my New Year’s Resolutions for 2011:
1. Lose 20 pounds by the end of the year – I am aiming to weigh 150 pounds by December 31st.
I was down 30 pounds by July 2011 thanks to Weight Watchers Online and was weighing in at 146! I was then aiming for 140 by December 31st, but instead started creeping up! Grrr. I am still down 20 pounds overall, but I am at about 154 now, so I am going to attempt to at least not go above 156 by the end of the year. Then I will hit this hard again in January.
2. Volunteer for a charity at least twice a month – I seemed to have replaced charity time with blogging in 2010, oops.
I am doing this via Meals on Wheels. I am a substitute driver and get called 2-3 times a month to fill in. 
3. Build up the emergency fund to at least $15,000 – it was at about $8200.
We hit $17,000 at the beginning of November but decided we wanted to pay off the mortgage faster instead, so now we are keeping the emergency fund right at $10,000 and have put all of the extra towards our home pay off project.
4. Max-out 2 Roth IRA’s for 2011.
They both will be maxed out on December 10th when our last $300 automatic payment clears.
5. Pay off at least $8,000 of our mortgage principal – that means it needs to be at $60,000 or less by the end of the year.
We refinanced our loan this year, which has helped us pay off principal even faster. Then we decided to pay off our home by 2013, so we have redirected most of our monthly extra towards that! We are down to less than $55,000 already and will be hitting it with at least $6000 more by the end of the year!!!
6. Make AT LEAST $15,000 through blogging – my true target is $25,000.
Wow this year was amazing. As of November 15th, I had already brought in $64,000 before taxes but after Paypal fees with blogging income and my ad business. HOLY MOLY! I didn’t even think I would be able to quit my day job until 2013 and I left in July 2011…so much can change in a matter of months…
How are your New Year’s Resolutions treating you?
November 17, 2011, at 6:00 am
One of my readers, Aimy, asked me to “find the best credit card that racks up the most points for travel” for her daughter. Well, I passed along that question to Dave who runs Free Travel Genius, a website dedicated to teaching readers how to travel for free by leveraging credit card points. Here is his response:
That is a very open ended question, so I will do my best. First, let me caveat that one should only be focused on getting reward points when they have good credit and are able to pay off their credit cards each month. If you are having difficulties, please read advice such as this post by guest blogger Ross. Otherwise, read on.
“Best” Travel Reward Credit Cards
There are three types of “best” cards. First are the ones with the best signup bonus. Next are the ones with the best long-term return on your spending. Finally, there are the cards that give you direct benefits (such as lounge access or free bag check). I am going to focus on the “Mega Bonuses” today since, for most people, this is how to amass a lot of free travel quickly. If you want to learn more about Long-Term Spending Cards or Travel Benefit Cards, please see my website.
My Suggestions
My general rule is that I won’t sign up for a new credit card unless I get at least $400 in value back. There are just too many lucrative offers available today and there is a limit to how many new cards you can get each year. There are techniques to pull in hundreds of thousands of points each quarter, but I am going to give more realistic advice for a first timer and assume you will start with 1 or 2 cards (if your credit score is < 720, I would probably start with 1). Note that all of these techniques can be replicated for each family member over 18 with a good credit history and enough household income.
For those that fly domestic and live near a Southwest hub, the best card available right now is the Southwest Rapid Rewards Plus Card by Chase. This card gives you 50,000 Rapid Reward points after your first purchase which translates into $833 of discount economy tickets on Southwest for a $69 annual fee. $833-69 = $764 net value by getting this card. Sounds great to me!
If you don’t fly domestic a lot, I would consider the Chase Sapphire Card to be a great alternative (note that it is difficult to get two new Chase cards within a few months). This card has no annual fee the first year and gives you at least 53,000 ultimate reward points after spending $3,000 within 3 months. You can simply have them send you $530 for the points (not bad for 30 minutes of work), get $625 toward airline travel or 53,000 United miles. If you travel international and/or business class a lot, the United Miles could be worth well over $1,000 to you.
If you are going for a second credit card on your first Mega Bonus run, take a look at my site for more ideas.
Crystal’s Comment: Hope this helps, Aimy! I just use my Discover More card to get 5% cash back in rotating categories and 1% overall. Then I can use the cash back on gift cards or just get cash directly for trips…
November 16, 2011, at 6:00 am
A couple of weeks ago, my husband’s aunt mentioned that her friend’s Dachshund just had a litter of long-haired puppies. She asked if she should keep us in mind. We talked about it over the next few hours and then threw our hats into the ring.
Over the next few days we went over all the little things, good and bad, that would come along with having a puppy.
Puppy Pros
- CUTE! That is the biggest selling point. Puppies are freaking adorable!
- Will have grown up in our household. Our two dogs were middle-aged rescues that came with some issues that we can’t untrain. Miss Doxie is a racist and Mr. Pug is scared silly of small children for the first hour they are in the room.
- May keep Miss Doxie young. Miss Doxie is 13 years old now but small animals and kids seem to revive her quite a bit. She gets peppy.
Puppy Cons
- Time. I know I’d be spending significant time every day on everything puppy since Mr. BFS would only be home during the day on weekends and school holidays.
- Money. All of the shots and having a dog fixed adds up to a few hundred dollars right there. Then there are the basics like food and emergency funds to deal with.
- Potty training. I have never potty trained a dog…that would be messy.
- Teething. I remember one of my dogs growing up when it was a puppy – it chewed on everything!
- Interaction issues with our other two dogs – Mr. Pug and Miss Doxie. What if they didn’t all get along?
- Having three dogs at once. It would be alot and asking my in-laws to take care of three dogs when we go out of town would be alot to ask as well.
Okay, we aren’t stupid. I know that those cons completely outweigh the pros, but did I mention that puppies are sooooo cute?!
In the end, it didn’t matter. The puppies’ owners started asking $400 per pup. We didn’t even think about the fact that they may be asking big money for the little cuties since we could get free pitbull puppies and all sorts of others online. Mr. BFS and I both balked at the price and decided we were better off not starting a new adventure right now anyway. Plus, when we are ready, we rather adopt another rescue…they get puppies too. So, sometimes, things just happen the way they should.
Have you recently avoided a bad decision? Or have been presented with a good one unexpectedly?
November 15, 2011, at 6:00 am
The following is a guest post from Corey at 20′s Finances and Passive Income to Retire. He is writing about his efforts to increase his passive income.
Have you ever thought about blogging full time? Can anyone be successful at it or does it take a particular skill set?
If you have your own blog, I am sure you have at least considered what it would be like to blog full-time. Several bloggers, like Crystal (who is generously hosting this guest post), have become quite successful. It’s not everyone’s dream, but it is quite popular. I have started considering this idea myself. I hate to fall victim to popular trends, but I am giving it some serious thought. Thinking about blogging full-time has led me to wonder whether everyone can be successful – whether I can be successful.
My Story
It was just over three months ago that I started my first blog, 20′s Finances. I was inspired by friends and family who had financial questions. I realized that I knew more about finances than the “average Joe.” I talked to my friends and family and I realized I needed to start my own blog. I had stumbled upon a finance blog by a guy named Derek (who is now a friend) and was inspired. I was also surprised to learn that people made money with their finance blogs. Who would have thought?! After blogging for a couple of weeks on a wordpress.com site, I decided to purchase my own domain and start on a new path.
After joining Yakezie, I found a new passion – it was blogging! I would wake up at 6am to read 30-40 blogs everyday. I started commenting on these blogs at least twice a week and started making a name for myself. I started sending out tons of guests posts too! Six or seven in my first month. Before I knew it, I was making money with my blog too! It happened so fast that it made me even more excited about blogging. I am having so much fun that I decided that I needed to expand. If it takes time to build up a blog, why not start now?
I just recently started another blog to be able to write about other finance topics. More specifically, my 2nd blog Passive Income to Retire is about my new journey. In my first post at the new site, I detail my new efforts to earn enough money from my side gigs to replace my day job. I know, not too original, but can you imagine not having to work more than 3 days once you are 27? I can’t either, but I am shooting for the stars.
What will it take to Achieve My Goals and Be Successful?
I think there are a number of things every full-time blogger needs to be successful:
- The Necessary Skills: Having poor writing skills and no knowledge of technology would obviously put someone at a huge disadvantage. I may be wrong, but I am going to assume that my ability to use technology and write well is good enough…because there’s not much I can do to improve these aspects other than keep blogging.
- Time: Time is one of the biggest things when it comes to blogging. There is a lot to learn and a lot to do. It takes time to take it all in and to be able to manage the multiple dimensions of blog. After all, creating a successful blog takes more than just writing posts. Since I have the time, as I detail on my new blog, I am going to give it a shot. If I fail… well, you can tell me that you told me so (but only if you tell me so in the comments below).
- Network of Friends: In order to be successful, you need a group of people around you, to support you as your work towards your goals. I have that in Yakezie. The people I have gotten to know already have been so supportive, that I feel like I can conquer the world. Okay, maybe a slight exaggeration, but something close to that.
- Determination: Because the idea sounds so great, I am determined to make it happen. I know it won’t happen overnight, but what’s to say that it can’t happen within 2-3 years? If you know me at least a little bit, when I set my mind on something, I give it everything I’ve got.
The way that I look at it, I know that I am not guaranteed to succeed. I know it will be difficult at times, but if I work at it and get lucky, I may just be able to give myself a life that people dream about and get out of the 9-to-5 life. I’m hoping many of you will partner with me and help me reach my new goal.
So, here’s my question for you: Do You Think I Can Do it? (Be Honest, even if it will hurt)
Crystal’s Comments: I am living proof that anyone can be successful at anything if they are good at it and put in the necessary time! Go for it!
November 14, 2011, at 6:00 am
I really love the holidays. I get into the spooky childishness of Halloween, the happiness and general great vibes of Christmas, and the food of Thanksgiving is my absolute favorite of the entire year! But I understand the deeper undertones of these holidays too.
So for this Thanksgiving, here is my list of the things I am most thankful for:
- My husband – He has been truly supportive of me and my new career all year.
- Our friends – I know it’s sappy, but it is absolutely awesome to finally have a group of close friends that are there when you need them.
- Our family – Everyone is as healthy as can be expected and doing well.
- My luck - I was born into a middle class family during a time with electricity and opportunity. I know to be thankful.
- You – My life has changed so much this year because of this blog and my blog advertising business. That would not have happened without you – my readers and supporters. Thank you.
In honor of everything I am thankful for, I am giving away a $50 Amazon gift card or cash to a random commenter below. The winner can pick whether they want Amazon cash or Paypal cash.
Just leave a comment below about what you are the most thankful for by November 30th, 2011 and you will be entered to win!
Please consider this my thank you just for being you!!!
The official stuff:
1) Contest ends November 30th, 2011 at 11:59pm Central Standard time.
2) ONLY ONE COMMENT/ENTRY PER PERSON.
3) The winner will be selected randomly and notified by email. If you select Paypal as the prize, you will need to have a Paypal account.
4) The prize will be held for 2 calendar days. If it isn’t claimed, a new winner will be randomly picked and contacted.
5) I reserve the right to reject comments that I consider spam or invalid entries.
6) An invalid or incorrect email address automatically disqualifies you from the drawing…it’s hard to contact a fake email…
7) Local laws, rules, and regulations apply.
November 13, 2011, at 6:00 am
Mortgage Payoff Update
As I proclaimed, lol, my husband and I are attempting to pay off our mortgage within 6 years or less – specifically, by the end of 2013. My personal goal is to shave another year off of that – so the end of 2012. In order to stay on track, I’ll be posting updates here as we make progress. Here’s what we have accomplished so far:
Payoff Amount on our goal start date (10/26/2011) – $62,634
Payoff Amount as of 11/13/2011 – $54,943.11
I drove to the bank on Thursday, November 3rd and threw $7000 towards the principal. It was finally applied to our balance on November 9th. During all of that, our normal $900 payment was withdrawn on November 8th with the majority being applied to principal as well. In the end, we have a $54,943.11 balance and I should be able to make another big payment in about two weeks.
The best news in my opinion is that Mr. BFS has decided to get majorly involved. He asked where his fun money account was, I let him know, and he has decided to donate his monthly fun money deposits to the mortgage instead for right now. I am doing the same. We had built up our fun money savings to be in the $2000-$3000 range for each of us anyway, so it’s not like we will suffer if we don’t add to that for a few months or more. So, woot for the quickest mortgage payoff as possible!
Newsletter Update
Remember, if you haven’t yet, you can subscribe to my weekly newsletter with exclusive, subscriber-only giveaways by using the subscription form in the right sidebar! ———>
My current goal is to reach 150 subscribers by November 30th, so please spread the word as you see fit! I appreciate it.
Just for kicks, here are the current newsletter stats from last week’s subscriptions:
- Number of Subscribers: 109 (Thank you!!!)
- Open rate (how many subscribers ended up opening the third newsletter): 49 of 109 (45%), which is 29.1% higher than industry standard, woot!
- Clicks (how many people have clicked a link inside the last newsletter): 9 (8.3%)
- Countries Reached: United States, Canada, Netherlands, and the United Kingdom
Thank you so much to my subscribers!!! I appreciate the vote of confidence and Jesse and I will make sure they don’t get boring!
Additonal Info
I will continue posting monthly and yearly blog statistics and income updates, so stay tuned at the beginning of every month!
In case you didn’t know, Alexa traffic rankings are determined by the numbers of hits a site gets by people with the Alexa toolbar. If you want to be part of this ranking community, you can download the Alexa toolbar here.
If you don’t already, you can follow me via RSS, Twitter, or like my Facebook page by following those links.
To learn more about the Yakezie, the blogging group that has helped me in SO many ways, check out my Yakezie page! Feel free to email me if you are a Yakezie member or challenger and don’t see yourself on the list!
If you are interested in seeing how I went from an 8 million plus Alexa rank and 3 readers to where I am today, you can see My Blogging Checklists, which breaks down everything I do related to blogging. If you want to see how I have started bringing in more than $10,000 a month in less than 2 years, you can check out How I Make Money Blogging.
I have also started a new site, http://howimakemoneyblogging.com/, which will cover how I currently make money blogging and my transition to a work-from-home blogger!
THANK YOU ALL FOR BEING THE BEST READERS EVER!!!
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DISCLAIMER I am not a professional or a financial advisor. BFS posts are informational opinions only. Please make your own financial decisions based on personal research or see a financial advisor.
Also, there are paid links on this site. There is no obligation on your part to purchase any products advertised on this website.
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