The Penny Hoarder |
- How to Copy Warren Buffet's Biggest Investment of 2020
- The Drop App Will Pay You $50 to Help End COVID-19
- How to Get Started Flipping Houses — and What it Really Costs
- Cheap Mother’s Day Gifts Under $20 Including Shipping
| How to Copy Warren Buffet's Biggest Investment of 2020 Posted: 30 Apr 2021 01:00 PM PDT Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. Warren Buffett is notoriously a good investor. Sure, he's made some mistakes along the way (who hasn't?), but whatever move he makes, you can bet he's thought it through, and it will pay off — big time. Which is why when Mr. Buffett made his biggest stock purchase of the year into Apple, we thought, "Isn't it too late to do that?" Apple is already trading at the highest price it ever has. It feels out of reach for us non-billionaires. But it turns out, that's not the case. While we don't have the ability to own $111 billion (yes, billion with a B) in AAPL shares, we can still get our hands on some — and reap the rewards as the market goes up. One of our favorite ways to get into the stock market and be a part of infamous big-tech returns, without risking billions is through a free app called Stash. It lets you be a part of something that's normally exclusive to the richest of the rich — on Stash you can buy pieces of other companies — including Buffett's choices — for as little as $1. That's right — you can invest in pieces of well-known companies, such as Amazon, Google, Apple and more for as little as $1. The best part? If these companies profit, so can you. Some companies even send you a check every quarter for your share of the profits, called dividends.1 It takes two minutes to sign up, and it's totally secure. With Stash, all your investments are protected by the Securities Investor Protection Corporation (SIPC) — that's industry talk for, "Your money's safe."2 Plus, when you use the link above, Stash will give you a $5 sign-up bonus once you deposit $5 into your account.* Kari Faber is a staff writer at The Penny Hoarder. 1Not all stocks pay out dividends, and there is no guarantee that dividends will be paid each year. 2To note, SIPC coverage does not insure against the potential loss of market value. For Securities priced over $1,000, purchase of fractional shares starts at $0.05. *Offer is subject to Promotion Terms and Conditions. To be eligible to participate in this Promotion and receive the bonus, you must successfully open an individual brokerage account in good standing, link a funding account to your Invest account AND deposit $5.00 into your Invest account. The Penny Hoarder is a Paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.  This posting includes an audio/video/photo media file: Download Now |
| The Drop App Will Pay You $50 to Help End COVID-19 Posted: 30 Apr 2021 11:28 AM PDT Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners. Do you want to help end the pandemic? Do you want to make extra money? A rewards app called Drop wants to help you do both. It'll pay you up to $50 when you get your shot and take your coveted #VaccineSelfie. Here's how you can cash in on your new antibodies:
The first 10,000 people to post their selfies will receive $50, and the next 10k will get $20. So the sooner you show off your arm, the more money you could make. Get $50 — Then Keep Earning Cash From DropDrop is a free cash-back rewards app that gives you a kickback just for buying from your go-to brands through their platform. When you download Drop and quickly create an account, it will show you the best discounts and rewards from your favorite brands and services, like Glossier and Uniqlo — including ones that don't normally offer reward programs themselves (hello, Apple!). It's really that simple. It takes just seconds to find what you're looking for. Then, when you purchase through the app, Drop will reward you with points you can exchange for gift cards. You can stack discounts on top of each other and be confident you're getting the best deals on all your shopping. Even better? If you sign up today with code TPH, you'll earn an extra 10,000 points (that's $10!) to use toward gift cards to your favorite stores once you've earned your first 1,000 points. Drop has already paid out $26 million worth of rewards to its millions of users. Click here to download the Drop app and get your 10,000-point bonus when you use code TPH and earn your first 1,000 points by shopping through the app. And don't forget to post your #DropCOVID vaccine selfie to unlock additional rewards when you complete all the necessary steps for this promotion! This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.  This posting includes an audio/video/photo media file: Download Now |
| How to Get Started Flipping Houses — and What it Really Costs Posted: 30 Apr 2021 09:08 AM PDT Got a paint brush? A screwdriver? A hammer? If you watch one of the many house-flipping shows on TV, you might think those three tools are all you need to make thousands of dollars flipping homes. "The house-flipping shows make it seem like it's all about designing a kitchen or tearing out walls," says Mark Ferguson, an experienced Colorado flipper, investor, blogger, and author of several books about the industry. "But the real work is finding the deals, which they never show you." The goal of flipping a house is to purchase it and then resell quickly for a profit, usually within a few months.There are two main types of flipping:
Both approaches are basically numbers games of buy low and sell high, but the first type usually gets the most attention because it makes for the best entertainment and has a somewhat lower risk. Unlike on TV, not everything happens quickly and easily during a house flip. It takes lots of money, time and patience. Here's how to get started flipping houses — with lots of cautions. The House-Flipping IndustryHome flipping is big business. According to the 2019 year-end Home Flipping Report from ATTOM Data Solutions, investors flipped 245,864 single-family homes or condos, which represented 6.2% of all home sales during the year, an increase of 2% from 2018. "With tens of thousands of home-flipping transactions each quarter, significant amounts of home renovations are occurring, which improves conditions from neighborhood to neighborhood, to the benefit of owners, sellers and house hunters, and contributing to the overall housing market in multiple ways," said Todd Teta, Chief Product Officer of ATTOM Data Solutions. As for dollars in 2019:
Gross profit numbers do not take any costs into account since it is impossible to determine how much a flipper spent on materials, labor, carrying costs, taxes, insurance and other expenses. The figure is simply the difference between purchase price and sales price. Teta says rehab costs and other expenses are typically 20% to 33% of the property's after-repair value, or ARV. This year, even with the COVID-19 pandemic, numbers are still strong. According to ATTOM's report for the first quarter of 2020:
Flippers in San Francisco saw the highest median gross profits at $171,000, while gross profits were only $14,000 in Fort Collins, Colo. "Less-expensive parts of the country, concentrated in the Midwest and South, continued to hold the most allure for those looking to quickly turn single-family properties," Teta said. Declining profits are a continuing trend, but are not turning away flippers, he said. The effects of the pandemic, of course, continue. "If demand for homes is stifled and prices flatten or drop, that could seriously hurt investors who bought before the pandemic hit and must cut their resale prices," Teta said. "However, a price drop also could provide opportunities. In that case, the cost of investing will go down." The Popularity of House-Flipping on TVThe rising interest in home flipping coincides with the proliferation of shows about flipping, decorating and home improvement. "[Flipping] is kind of like a sexy thing to do after you watch it on TV," Ferguson said. "I think that's really the big attraction and people see on TV and how much money they make and they say, 'I'm going to go do that.' It looks easy." HGTV went on the air in 1994, reaching just 6.5 million homes in 44 markets. On its 20th birthday in 2014, it was in 96 million homes in 69 countries. Its shows and those on other networks are reaching broad audiences — and creating widespread misconceptions about house-flipping. "If you saw it on TV, it's wrong," said Luke Weber, a Las Vegas-based real estate investor who has flipped about 500 homes. "The TV shows, even the ones that try to be as real as possible, are all inaccurate. The TV shows are for drama, not for education." One common way the shows are misleading: the extent of remodeling needed on houses. "Most of the flippers that are doing those shows are way over-improving the houses because it has to look pretty for TV," Weber said. Sometimes, he said, a house just needs fresh paint, new flooring, cabinets, and bathroom refreshes. House Flipping Isn't Easy Ferguson began flipping houses in 2002 and has completed around 200 flips. "Even after doing all those flips for so many years, we still lose money on deals sometimes," he said. "The deal always looks better before you get into it because there are so many unknowns. Our number one rule is it always takes longer and always costs more than you think it will." Ferguson has some basic advice for those getting started house flipping:
"You have to be prepared to possibly lose money or not make a lot of money for all the time you spend doing this, but you have to look at it as an education," Ferguson said, adding that people wanting to get into the business shouldn't be spending their last dime doing a flip. The Costs of House FlippingFlipping homes takes money — lots of it. "They always act like they have millions of dollars of cash to throw around on those shows, and I don't know about their personal finances, but most flippers I know are using loans … financing properties," Ferguson said. In his market, Ferguson said it takes $300,000 to $400,000 in cash to finish a flip. Yowser. According to ATTOM's 2019 report, 44% of home flippers used financing to fund their projects. That means 56% of buyers paid for their projects in cash. Cash has its advantages. The deals close quickly, there is no interest to pay so you don't have to be in a huge rush to sell. Plus there's no debt. "Cash is king," said Ralph Roberts, an experienced flipper and author of the book Flipping Houses for Dummies. "Everyone wants a deal that is going to go through, and the number one deal to go through is cash." Traditional loans can take a month or more to close, if you can get one. Getting a loan if you don't intend to live in the property can be extra difficult, Ferguson said, which is another reason a beginning flipper might want to think about living in a home while fixing it up. "If it doesn't work out perfectly, you're probably going to be just fine. You probably still got a good deal and have equity," he said. "If you were straight flipping it without living there, you might have lost money, but if you're living in it, you might make money because you don't have all those extra costs while it's sitting vacant." Of course, that also depends on whether you can handle the stress of living in a construction zone. Other sources of funding include:
"I call them my lending partners," Weber said. "[They're professionals] who've got money and understand that real estate is a really good way to make money, but they might not have the time, patience or knowledge to make that money themselves. So they invest with me." Finding the House to Flip Experienced flippers say doing the work is the easy part. Finding a home to flip is what's difficult. In the early 2000s and especially after the housing market crash a few years later, the plethora of foreclosures made flips easy to find. That has changed. When Ferguson started flipping in 2002, 95% of the homes he bought were foreclosures or public trustee sales and he was competing with no more than five other flippers. Now there are at least 20 other serious flippers nearby, meaning more competition for the best houses. "There are still good houses to flip, but they're most likely not going to be bank foreclosures sitting out there waiting for people to invest in them," he said. "You've got to do a lot of work yourself to find those deals, find motivated sellers and look in different areas." Besides foreclosures, there are several ways to find homes to flip:
If you find a good candidate for flipping, keep in mind some things buyers look for:
"[Buyers want] a clean, safe place to call their own, something that is comfortable for their family," Weber said, adding they don't want to do much more than move in furniture and maybe change some paint colors. He says it's important to look at a house's after-repair value or ARV, which is how much the house will probably sell for once it is finished. "Once I know what I can sell a house for, that helps me understand what I should buy a house for," Weber said. "You really make your money when you buy the house, not when you sell it. You collect it when you sell, but you make it when you buy, so you have to buy the house at the right price." Estimating The Cost and TimeRemember Ferguson's number one rule about house flipping? That it always takes longer and costs more than you think it will. "I think people underestimate how long it will take by about half," he said. "They forget how many things can go wrong and just the general process of fixing a house." He estimates a typical flip of a $200,000 house costs about $100 a day to maintain. Contractors don't just show up on day one ready to work. You might even have to replace them during the project. There are plans, permits, inspections, shipping delays for materials and weather disruptions. Once the work is done, there is cleaning, staging, listing, showing, real estate commissions, closing costs and more. Ferguson said he sees people who say their flip will take three months. Then when it takes six months or more because of the unexpected, they're surprised and upset. "When they make that mistake, they've got property taxes, insurance, utilities, yard maintenance, interest on your loan, all compounding every single month. So that makes the whole project cost tens of thousands of dollars more than you anticipated, because you messed up your timeline," he said. So, how do the experts suggest estimating costs and time?
Staying realistic about the time you are able to commit to the project is also important. "It's not something [most people] can just do on the weekends. It's crazy how many people think 'oh, I'm going to finish this in a month or two just working on the weekends,'" Ferguson said. Treating flipping as a part-time project, he said, will take at least three times as long and will keep you away from your family and the things you enjoy doing every night and weekend.    Doing the WorkThe goal of any flip is to get someone to buy the house, and that means creating a house people want to live in. "You should do the landscaping first and get that done because curb appeal is everything," Roberts said. "If people like the outside, they're going to want to see the inside." Keep in mind you're designing a home for a variety of buyers. "People go overboard with how they design a house and spend way too much money and make it way too specific," Ferguson said. All three experts recommend keeping things neutral but not boring to appeal to the most buyers. No crazy paint colors or patterns. They also recommend:
"You want to be proud of your work and be willing to say, 'I could live in this house,'" Roberts said. As simple as it sounds, Weber said it's also important to complete the flip. "I get a kick out of it when people remodel a home, but they leave one or two major things undone," he said, like only remodeling two out of three of a home's bathrooms because they ran out of money. "That one bathroom is what the buyers are going to remember." Selling the House
After the work is finished, the house does not just sell itself. There's setting the selling price, finishing little details, cleaning, staging, photographing, listing and marketing. Photo courtesy of Mark FergusonAfter the work is finished, the house does not just sell itself. There's setting the selling price, finishing little details, cleaning, staging, photographing, listing and marketing. The selling process begins by setting the price. "Most neighborhoods have a certain cap, an amount where it's just really hard to sell houses for more than a price" Ferguson said. Also, if the house doesn't appraise at your price, buyers might have trouble securing financing. Remember: During the time it sits on the market, you're still paying for everything. "The house isn't going to sell the first day — it might, but it might take a few weeks or longer for the house (to go) under contract," Ferguson said. "Then you have to wait a month for the house to close … and there's always the possibility that contract might fall through and you start the whole process over again." Additional costs to factor in:
Ferguson said he never used to stage homes until the market began to slow down. Now he says it works so well, he should have been staging from the beginning. In the end, flipping is a business that is filled with highs and lows. "It's fun. It makes a lot of money if you do it right," said Ferguson, adding he doesn't do any of the work himself anymore. "It can be a great business. It can be exciting, it can be fun. You just have to realize problems will come along." Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.  This posting includes an audio/video/photo media file: Download Now |
| Cheap Mother’s Day Gifts Under $20 Including Shipping Posted: 30 Apr 2021 07:00 AM PDT While some families feel safer reuniting for Mother's Day this year with vaccination programs rolling out across the country, others are still keeping their distance as they wait for everyone to get shots. Pandemic aside, some of us live across the country or state from dear old Mom and can't treat her to brunch. Whatever's keeping you and Mom apart this Mother's Day, May 9, there are plenty of ways you can show her you love and miss her. Not only that, but you can do it all while going easy on your wallet. To help, we've put together a list of 20 Mother's Day gifts under $20 you can order online. And that $20 includes shipping — free for some items. Mother's Day Gifts That Will Help Her Get OutdoorsThe outdoors is a safer place to hang out than inside thanks to the coronavirus. Pickleball Glove for MomPickleball is the hottest team sport these days. This is the perfect season to play socially-distanced and outdoors. If your mom is seriously into this sport, you can pick her up a brand-name pickleball glove on Amazon for between $18 and $20. If you have Prime membership, shipping is free, keeping you under budget. Annual Flower BulbsDoes Mom love gardening? Give her a gift that keeps on giving with annual bulbs. Plant these flowers once, and they will bloom year after year. Bulbs that need a freeze to bloom (iris, daffodils, tulips) are typically put in the ground in the fall before it gets too hard for digging and they pop up and blossom in spring. The following bulbs can be planted in the spring to bloom in the summer. Gladiolus Flower BulbsGladiolus are beautiful and you can get a lot of them even on a budget. You can pick your color, ordering a bag in white or purple for $13.95 on Walmart's platform. Shipping is free. Lily Flower BulbsYou can get about three lily bulbs for under $20. Some options from Walmart sellers include: These options run between $13.95 and $15.99 and come with free shipping. Gift Certificate to a Local Garden CenterMaybe Mom doesn't have space for a garden, but does love having flowers and plants around. In this case, consider getting her a gift certificate to her local garden center for $20. There's an added bonus to sending your card on Mother's Day; when she goes shopping after the holiday, excess inventory will be marked down dramatically, giving her more bang for her buck.  Butterfly HabitatButterfly habitats may be marketed towards children, but Mom can enjoy one, too! This kit from Target is $19.99, and comes with a habitat and voucher for live caterpillars — which ship separately. Your order should qualify for free shipping. Mom will be able to watch the caterpillars as they build their chrysalises and grow into butterflies, eventually releasing them into the wild. Bonus points for sending a card with a cheesy analogy about how she helped you grow into a butterfly, and what a great job she did. Sweets & Culinary Gift Ideas for MomsMother's Day is a great time to shower your mom with sweets. Or, if Mom's great in the kitchen, it's a fun time to celebrate those skills with gifts. Personalized Recipe CardsMom's a great cook. Everyone's always asking her for recipes. Pick her up a set of personalized recipe cards on Etsy so she'll get full credit when she shares her skills. This set costs $10.75 and ships free to the US. Heart-Shaped PanWe've all been cooking at home this past year — perhaps way more than normal. Turn the mundane fun with this heart-shaped pan from Ecolution on Amazon.com. Whether your mother's making pancakes or eggs, she'll appreciate that Ecolution's products are eco-friendly yet durable. You'll appreciate that it clocks in at just $12.51 and ships free with Prime membership. Fruit Infusion PitcherWe haven't just been eating at home a lot more often — we've been drinking at home a lot more often, too. This fruit infusion pitcher is great for making mimosas and flavored water alike. It is $19.99 on Amazon.com and ships free with Prime membership. ChocolateBelieve it or not, you can get a fair amount of good chocolate for under $20. The " G-Cube" from Godiva comes with an assortment of 22 flavors, and costs $11.95. With shipping, you can expect to pay around $19.95. Delivery from a Local BakeryAsk your mom about her favorite local bakery recommendations. Then, place an order for delivery with them on Mother's Day. This allows you to not only get mom a gift, but also support small businesses in her community. If the delivery fee would put you over budget and Mom is vaccinated, you can find another way. You could likely request curbside pickup or she could take a very quick trip inside while double-masked to pick up the treats herself.   Self-Care Gifts for Mother's DayWe all need a little more self-care these days. Help Mom relax with these soothing Mother's Day gift ideas until you can see each other again. Comfortable Sleep MaskA lot of people have experienced insomnia throughout this pandemic. If Mom's one of them, you might want to consider helping her get some better shut eye. This silk satin sleep mask from Kessom on Walmart's platform not only comes in under budget with no shipping costs, but also comes with a matching scrunchie and storage pouch. Shea Butter Replenishing Bar SoapThis shea butter soap, infused with essential oils, lots of benefits. Rebourne Home + Body says it can:
Rebourne sells high-quality bath and beauty products. This one will cost you around $19.45 to send to mom after accounting for shipping costs.  Luxe Face MasksCharmed Bath & Body offers several different face masks available via Etsy. You can choose from:
It should cost you around $15.95 in all to purchase and ship one of these mask powders for Mother's Day. Mother's Day Coloring BookGive Mom an opportunity to de-stress with this Mother's Day coloring book from Amazon. Each page comes with intricate drawings to color in and encouraging and cute quotes about motherhood. This book is $14.99 and ships free for Prime members. Blue Light GlassesWe've all been spending a lot more time in front of screens over the past year. That means we've been spending a lot more time staring at blue light, which can cause migraines, damage our vision and even throw off circadian rhythms, our natural sleep-wake cycles. Help Mom out with some self-care she didn't even know she needed with these blue light blocking glasses from Nordstrom. They're only $15 and shipping is free. Sentimental Mother's Day Gifts Under $20These sweet, mom-centric products will highlight your relationship as you take a trip down memory lane. Tell Me Your Story Book (Grandma Edition)You know what's been happening a lot less often thanks to the pandemic and social distancing? We aren't telling each other as many stories on a regular basis. That includes grandmas telling their own life stories and family histories to their grandchildren. Compensate for the loss over the past year with this memory journal. It's available for $10 on Amazon.com with free shipping for Prime members. Tell Me Your Story Book (Mom Edition)Don't have kids, but love the memory book idea? Fear not. There is a version of these products for children to give directly to their moms — no procreation required. This daily journal of childhood memories will run you $12, once again with free shipping for Amazon Prime members. You & Me Mom JournalWant to make the memory journal thing a two way street? This journal from Uncommon Goods can be sent back and forth between you and your mother. Each page has prompts encouraging the two of you to reflect on your life memories and love together over the years. It will run you $13, and should come in just under $20 after accounting for shipping costs. Photo BookThere's nothing moms love more than pictures of their kids and grandkids . Photo books can often be cumbersome to create, or come with deceptive discounts and "deals" that don't account for exorbitant shipping costs. You can get around all that by creating a book with Google Photos. You can easily import all the pictures already on your Google account, and can create a 20-page, soft-cover photo book that's sure to put a smile on her face for just $13.95 including shipping. CashYou're shopping on a tight budget, so your wallet is probably thin right now. She might not want to admit it, but money might be tight for your mom in this pandemic, too. Instead of buying her physical presents, consider sending her the cash. If Mom's on Venmo or CashApp, you can keep things completely socially distant. Be sure to send a card or heartfelt note. Brynne Conroy is a contributor to The Penny Hoarder. She blogs at femmefrugality.com. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.  This posting includes an audio/video/photo media file: Download Now |
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