30% off on Alice.com gift cards today only

I got an email from Alice.com advertising 30% off on gift cards today. The offer expires at midnight central time. There is a 'catch' though to get the full 30% off you have to share their deal via Facebook. If you don't share the deal via Facebook then its 15% off. The 30% off deal is pretty good.

I got a $50 gift card for $35 myself. It seems that its not an instant electronic gift though and the confirmation email I got said my order would ship in 5-7 days. Shipping was free and there aren't any obnoxious processing fees, so its a straight $35 cost for $50 gift card.

Alice.com has a ton of brand name mostly non-food grocery store items. You can buy Aquafresh toothpaste, Dial soap, Kleenex tissues, Glad trash bags, etc. They do have some food but mostly nonperishable stuff like tea or coffee. The prices are OK but not fabulous. But with 30% off it makes it a good deal. They also sell the Forever US postage stamps so this is a way to get 30% off postage stamps.

Note: Alice.com only carries name brand items. You'll often get cheaper prices for purchases by buying store brand items or shopping sales. Buying through Alice.com is a convenient way to get decent prices on name brands (with free shipping) but its probably not the cheapest way to buy stuff in general. So if you really want to save the most then buy store brands, shop sales and/or use coupons.

Suze Ormans Signs of a Bad Financial Advisor

A couple weeks ago I caught an episode of the Suze Orman show and she gave her top signs of a bad financial advisor.

Here is Suze Orman's list of the signs of a bad financial advisor:

1. They rush you
2. They don't tell you fees or commissions
3. Want you to put everything in one investment
4. Want to meet only you and don't want to meet your spouse
5. Does not ask about your needs

I'd generally agree with all these in most cases.

Rushing you is not good at all. Theres no reason you have to make a decision immediately. You should be able to think on things for a day or two without any worries and if they say otherwise then thats a bad sign.

They should definitely be explaining fees and their commissions. Be wary of anyone who doesn't go into that or share that info when asked.

I think there can be exceptions to #3 for sure. Say you've only got $50k to invest and they recommend you put it into a safe bank account cause you're saving for a house. Thats a good reason to put all your money in one place. Or maybe you're retiring and they suggest you put $100k into a fixed annuity. That isn't necessarily bad advice (depending on the terms of the annuity).

For #4, If you're married or have someone else with a stake in your finances then the advisor should want to talk to all the parties. If they don't then that is generally a problem. But I wouldn't be so hard fast on this one. If a husband or wife seeks some advice without their spouse then I don't think the advisor should necessarily demand to talk to the other spouse.

Lastly if an advisor doesn't ask you what you need then thats not a very good advisor. They can't meet your needs if they don't ask for your needs. Advice can be either good or bad depending on the situation. I wouldn't tell a 20 year old saving for retirement to put their money in a bank CD and I wouldn't tell a 70 year old on a fixed income to put their life savings in stock funds.

Which Makes Better Rentals: Single Family Homes or Plexes?

If you are planning to buy real estate as an investment then you can go two major ways with residential property. You can buy a single family home or you can buy a plex. A plex is a duplex, tri-plex, 4-plex or other larger multi-family property. There are pros and cons to doing single or multi family properties.


Reasons that Plexes are better

Rent Income is diversified - If you have a vacancy in a mult-family unit then you aren't losing 100% of your rent over it. If you own a 4-plex and there is a vacancy in one unit then you're still getting 75% of your rent from the other 3 units. Its not very likely you'll have multiple vacancies at the same time very often. This helps smooth out your cash flow better.

Generally better returns - It usually easier to make positive cash flow with a plex than a single family unit. If you look at rent / property cost, around here it seems I can get only 4-5% on a single family but could get 6-7% on a duplex. The profitability is a bit easier with mult-units.

Easier to watch over - With a mult-family unit you have easier access and better reason to be at the unit checking up on things. With a single family unit you have only one tenant. To go to the rental you really need an excuse or reason to be there. If you show up all the time it may be irritating to the renters and to gain entry you need permission or have to give them notice. Plus with a multi-unit the tenants will tend to watch over one another. If a tenant is causing problems then another tenant will likely complain to you and you'll find out much quicker than you might with a single family unit.


Reasons single family are better

Fewer tenants = less work - This is probably the biggest one. With more tenants you will generally have to do more work and have more potential hassle. A single family unit only has 1 tenant but a plex has more tenants.

More bills with multi units - With a single family unit you can usually have the tenant pay most if not all the utilities like water, garbage, sewer, etc. You'll often endup paying water and garbage on a plex and maybe some other bills. The landlord is often stuck paying some utilities since the service is not split up between the renters.

Easier financing, insurance or regulations on single family- It can be harder to get financing on a mult-family unit than on a single family home. Insurance companies may jack up the rates on multi-family units since you have more risk due to more occupants. Zoning rules may be more of a hassle or cost you more money in various ways with a multi-unit property.

Easier resale - A single family home has better demand and resale. There are plenty of people out there that want a home to live in but much fewer people who want to own a rental.

Potentially less upkeep - You can often have a tenant in a single family unit handle basic upkeep of the unit like mowing the lawn or raking leaves.

Happy Thanksgiving!

Enjoy your Thanksgiving.