When looking at overall financial planning, life insurance coverage can be an integral part. That’s because the profits from a life insurance policy can be used for a multitude of things, including the settlement of debt by survivors, ongoing payment of everyday bills by a spouse and other dependents, and/or for paying one’s funeral and other financial expenses.
In fact, even when just factoring in potential final costs, the dollar figure can often be more than $10,000 given the expense of a memorial service, flowers, and transportation, as well as a burial plot and headstone. (If an individual requires any uninsured medical or hospice expenses, the cost can be even higher for those you leave behind).
Before committing to acquire a life insurance policy, it is important to ensure that you are choosing the right type and amount of coverage. It is also essential to take a closer look at the insurance company you’re considering making your purchase through.
That is because you want to ensure that the insurer is secure and stable financially and that it has a reliable, positive name for paying out its policy holder claims. One insurance carrier that has a 100+ year history, and that meets these criteria – is Mutual Trust Life Insurance Company.
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The History of Mutual Trust Life Insurance Company
Mutual Trust Life Insurance Company traces its roots back to 1904. Over the past 110+ years, the company has grown and expanded exponentially, and it now offers its life insurance and annuity products in 49 of the U.S. states, as well as the District of Columbia.
Today, Mutual Trust is a wholly owned subsidiary of Pan American Life Insurance Group (PALIG), which is a leading provider of insurance and financial services throughout the Americas. Mutual Trust is headquartered in Oak Brook, Illinois.
Mutual Trust Life Insurance Review
As its name implies, Mutual Trust Life Insurance Company is a mutual insurer. This means that the company has no shareholders, by rather it exists for the benefit of its policy holders. And, while not guaranteed, policy holders may be eligible to receive dividends from the company. These may be taken in the form of cash, or used for increasing the amount of insurance coverage that they have.
For the year 2016, Mutual Trust Life Insurance Company continued to experience positive financials, with a 16 percent increase in sales, and continuation of its dividend scale – even considering the historically low-interest rate environment in the United States.
At the end of 2016, Mutual Trust Life Insurance Company held capital more than $900 million, and assets of over $5.5 billion (when combined with that of Pan American Life Insurance Group). The company has also maintained a risk-based capital ratio of more than 600 percent.
With that in mind, Mutual Trust Life Insurance Company is a financially stable company. It also pays out its claims promptly to its policy holders and their beneficiaries.
Insurer Ratings and Better Business Bureau Grade
Due to its firm financial footing, Mutual Trust Life Insurance Company has attained outstanding ratings from the insurer rating agencies. These include an A (Excellent) from A.M. Best Company and an A (Stable) from Fitch Ratings.
Also, even though Mutual Trust is not currently an accredited business through the Better Business Bureau (BBB), the BBB has given the company a grade of A+. This is on an overall grade scale of A+ through F. Over the past three years, Mutual Trust has only had to close out one customer complaint through the Better Business Bureau (which occurred within the previous 12 months). This claim was based on problems with the company’s products and services.
Life Insurance Policies Offered by Mutual Trust Life Insurance Company
Mutual Trust Life Insurance Company offers a wide variety of life insurance policies to choose from. These include both term and permanent coverage. With term life insurance, you will have death benefit protection, without any cash value or savings build up. This can help to keep the policy affordable.
Term life insurance offers protection for a set number of years. The term life insurance plans that are offered through Mutual Trust Life Insurance Company have the options of 10 years, 15 years, 20 years, and 30 years. During the time that is chosen, the death benefit on the policy remains level, and the amount of the premium will not increase.
After the time has elapsed, policy holders have the option of keeping the coverage as an annually renewable plan, which provides a level amount of death benefit until the insured turns age 98. (The premium will, however, increase over time with this option).
These policies also have the option of being converted over to a permanent life insurance policy, without having to provide evidence of insurability. This conversion may occur at age 65, or at the insured’s issue age plus the length of the level premium period plus five years – whichever is the earliest.
There are also individual riders that may be added to one’s term life insurance policy through Mutual Trust. For example, with the addition of the optional waiver of premium rider, conversion is guaranteed – even if the term insurance policy is under a waiver claim. In this case, the premiums on the permanent policy can continue to be waived (provided that certain conditions have been met).
Mutual Trust also offers permanent life insurance coverage. With this form of life insurance, there is a death benefit, as well as a cash value component in the policy. Mutual Trust Life Insurance Company has a focus on offering whole life insurance through its Horizon Value plans. Here, the amount of the policy’s death benefit is guaranteed never to decrease (if the premiums are paid).
Also, the monetary value can increase on a tax deferred basis. There will be no tax due on the growth in the assets that are inside of the cash value unless or until they are withdrawn. Policy holders can either borrow or withdraw cash from the policy, for any need that they wish, including the payoff of debt, the supplementing of retirement income, or even for taking a pleasant, long-awaited vacation.
Also, because Mutual Trust Life Insurance Company is a mutual insurer, those who own a whole life plan may be eligible to receive dividends (although dividends are not guaranteed). When receiving a bonus, it is a return of premium, so it will not incur income tax.
The Horizon Value whole life insurance policies from Mutual Trust offer several additional benefits, including non-forfeiture, which means that the policy holder may opt to obtain either a reduced paid-up policy, or a term policy if his or her plans or budget changes.
Policy holders may also choose to add an accelerated death benefit rider – with chronic and terminal illness provisions – if they want to customize their coverage further. These options are available at no additional premium cost. With this type of addition, it can be possible to accelerate a portion of the policy’s death benefit if the insured becomes chronically, permanently, or terminally ill. Funds can be used for paying medical bills, or any other need that the policy holder sees fit.
Other Products and Services Sold
In addition to providing an extensive list of life insurance policy options, Mutual Trust also offers retirement annuities. Today, given our much longer life expectancies, one of the key worries of those who are retired (as well as those who are planning to retire soon), is outlasting their income.
An annuity can help with alleviating that concern by providing the option of a fixed lifetime income – regardless of how long you live. These products also offer certain tax advantages during the savings (or accumulation) phase.
Mutual Trust offers the Integrity Plus Series of flexible and single premium deferred annuities. With single premium annuity, only one single payment is required, while a flexible premium product allows you to make deposits over time.
All the annuities that are offered by Mutual Trust Life Insurance Company allow for the following:
Tax deferred gain inside of the account. This means that as your money grows, there will be no taxes due on the gain until the time of withdrawal. This can allow for funds to grow and compound exponentially over time.
Principal guarantee. This means that your money will be safe inside of the annuity, regardless of what occurs in the market – or even in the overall economy.
No upfront sales charges. With no sales charge or commission to pay up front, all your deposited funds can start working and earning interest right away.
Low minimum contributions. If you do not have a lot of money to start with, you can still purchase an annuity from Mutual Trust. That is because the flex annuities offered by the company can begin with a minimum premium of just $300, and the single premium annuity products may be started with a minimum contribution of $5,000.
Choice of different payout options. When the time comes to start withdrawing money from the annuity, there are a variety of different options to choose from. These can include taking out the entire lump sum or taking out an income stream on an annual, semi-annual, quarterly, or monthly basis. There is also the lifetime income option whereby the insurance company will continue to pay out an income to you for as long as you live – regardless of how long that may be. This can help with reducing the worry of outliving your retirement income.
Death benefit. Upon the passing of the owner/annuitant, the accumulated annuity value can pass directly to a named beneficiary (or more than one beneficiary). This can help to avoid the expense and the delay of having to go through probate.
How to Find the Best Premium Rates on Life Insurance Protection
If you are seeking the best premium rates on life insurance protection from Mutual Trust Life Insurance Company – or from any insurance carrier – it is typically recommended that you work with an independent life insurance agent or broker. You will be able to choose from many different policies, insurance companies, and premium costs – and from there you can decide which will be the top option for you.
When you are ready to purchase, we can assist. We are an independent insurance brokerage, and we work with many of the best life insurance companies in the market place today. We can provide you with all the essential factors you need for making a well-informed life insurance buying decision. We can do so for you swiftly and efficiently – all from your computer. If you are ready to see what coverage and premiums you qualify for, then just simply fill out our quote form to get started.
We understand that the purchase of life insurance may not always be an easy task. There are many different variables to choose from – and you want to make sure that you are going with the best plan possible for you – and your loved ones – needs.
But the good news is that – even with all the plans and alternatives to consider – this process can be made much easier when you are working with an expert in the field. So, contact us today – we’re here to help.
The current housing market may be red-hot, but that doesn’t mean that every home is selling for what they could be worth.
There are a number of factors that go into valuing a home, ranging from big items like home size and location to smaller items like natural lighting or views. Some of these factors can’t be changed, but there are plenty of things you can do to get your home to sell for a higher price.
Here are six important ways to help your home sell for a higher price.
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1. Follow your local market
Pricing your home can be tough, so using comps is a good way to get closer to the right number. Comps are similar homes that are on the market, and they’re often used to find a price range for homes coming onto the market.
Aside from comps, follow how quickly homes are being sold in your area and what buyers are looking for. If you can plan and time your sale correctly, you could end up getting more for your home.
2. Hire a seller’s agent
A seller’s agent is going to do a lot of the negotiating for your, helping you get a higher price for your home. Yes, a seller’s agent will cost money, but you should be able to more than recoup the cost with what they bring to the table.
The best way to find a good agent is to ask friends or family who they’ve used in the past. Many agents get a lot of their business off referrals, so you can end up finding some of the best agents this way.
3. Don’t over-price your home
High home prices are going to put off a lot of potential buyers. At the same time, you won’t want to under-value your home.
Find a fair, reasonable price to set your home at. It’s best to not get emotional at this point. The number you settle on might not be as high as you’d like, but you’ll be able to sell your home quicker. There’s also the real possibility that multiple buyers will be interested, and they could end up bidding the price of the home higher.
But you’re unlikely to get any interest in your home if you’re asking for way too much.
<span data-sheets-value="{"1":2,"2":""" Check your VA mortgage rates. Start here (Apr 30th, 2023)
4. Stage your home
Home staging is when you change the interior of your home to make it more appealing to buyers. Usually, this means removing clutter, cleaning up and possibly even moving out some furniture. The goal is to make your home seem big and welcoming – two things buyers will want.
To get the most out of staging, it’s best to find a professional home stager. They have tons of experience, and they’ll do a good job of presenting your home while making your home seem more valuable in the eyes of buyers.
5. Freshen up the outside
Before anyone is going to tour your house, they’re going to see it from the outside. This first impression is huge because an unattractive exterior could immediately deter any would-be buyers.
If you want a higher price on your home, then you’ll want to get as many buyers interested as possible. They could end up trying to outbid each other, making the value of your home go even higher than you were prepared for.
To prepare, touch up the landscaping and repaint the outside of your house. It also helps to paint your front door a non-usual color, such as red or blue. This makes your home stand out, and buyers will be more likely to notice and remember it.
6. Time your move
Before you decide to suddenly put your home on the market and move, consider waiting for the right time. Summer is a buy time of the year for home buyers, but that might not be the best time to get a high price.
According to a Redfin report, homes sold in the winter tend to sell for 1.2% more than any other time of year. They also sold a week quicker than other times of the year.
Part of this is because there are fewer homes on the market during the winter, and that could potentially work against you if you need to find a new place to live. If that isn’t an issue, though, waiting could end up helping your home sell for a higher price.
<span data-sheets-value="{"1":2,"2":""" Check your VA home buying eligibility. Start here (Apr 30th, 2023)
Last Updated on February 24, 2022 by Mark Ferguson
One of the biggest roadblocks to investing in rental properties is the money required to buy a rental property. I believe buying rental properties is one of the best investments for increasing wealth and creating passive income. I am relying on my rental properties to give me enough income for retirement as well as offer a luxurious life. However, it is not easy saving money to buy rentals. Although there are ways to buy rentals with less money down, this article will focus on how much money you need to buy a rental the traditional way with a bank. I have purchased 20 rental properties since December 2010 and I am seeing at least 15 percent cash-on-cash returns on them.
Rental properties are a great investment, but they require a lot of money in most cases. It is simple to figure the cost on a rental property if you are paying cash, but things get more complicated when dealing with financing. Most banks require 20 percent down when buying a rental property and you have to consider carrying costs and repairs as well.
How much money do you need to buy a rental?
It can be expensive to buy rental properties since most banks require at least 20 percent down. If you are looking to buy many rental properties as I do, it is tough to avoid putting 20 percent down. Many banks start requiring 25 percent down once you have four mortgages in your name. Most banks will stop lending to you all together once you reach ten financed properties. There are ways to finance more than four and more than ten properties with a portfolio lender. Down payments are not the only factor when determining how much money is needed to buy a rental property.
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Closing costs
Depending on house values in your area, a 20 percent down payment can be a lot of money. The houses I buy are usually right around $100,000, which is about $20,000 needed for the down payment. You will also have closing costs when purchasing an investment property, which consists of interest, insurance, recording fees, origination fees, tax certificates, appraisals, and more. It is usually safe to assume closing costs will be at least three percent of the purchase price, but you can ask the seller to pay all or part of your closing costs. I usually ask the seller to pay part of my closing costs to reduce the amount of cash I have into a property. You also may have to pay for an inspection, which can cost $250 to $500 and some sellers such as HUD do not pay for title insurance, which can add another $500 to $1,000.
Repairs and carrying costs
Repairs can add a huge chunk to how much money is required to buy a rental property and you have to wait for the repairs to be completed before it can be rented. While you are waiting for repairs, you are paying carrying costs on that property, which also increases the money needed. You will have to pay interest, utilities, taxes, and insurance until the home is rented. In a perfect world, it should only take a week or two to have a professional contractor complete most repairs, but it usually takes longer.
As for repairs, they usually cost more than you think they will. On a house that needs minimal repairs, I still assume that I will need at least $5,000 in work done before it can be rented. On a house that requires more repairs and updates, I can easily spend $20,000 or more. It is always the little things that take time and add up to big repair costs. As a general rule of thumb, I always add $5,000 for unknown costs on any rental or fix and flip that I buy.
Make sure you get bids if you are not an expert at estimating repairs. Estimating repairs can be a very difficult thing to do, even for experienced investors. Repairs always seem to cost more than the investor thinks they should and contractors always seem to find more things that need to be repaired.
Turnkey rental properties are one way to save money on repairs and put less money into rental properties.
Total amount needed
Here is a breakdown of the costs that I would normally have on a $100,000 rental property.
Down payment: $20,000
Closing costs: $3,000
Repair costs: $10,000
Carrying costs: $1,000
Total investment: $34,000
These figures would be on a home that needs moderate work. I am a real estate agent, which means that if I had purchased this house from the MLS, I would get back about $3,000 in real estate commissions. I could also ask the seller to pay $3,000 of my closing costs if I thought it would not jeopardize my chances of getting the deal.
Having to put 25 percent down on a property would greatly increase the amount of money needed. Repairs costs will affect how much money you would need as well. Another factor to consider is that the bank will want you to have money in reserves when you get an investment property loan.
Can you buy rentals with less money?
There are ways to decrease how much money is required to buy a rental property. You may find a gem that needs no repairs at all, but it is rare to find a home that is a great deal and in good shape. Rental property number ten and rental property number nine were both in decent shape and purchased below market value. You can ask the seller to pay part of your closing costs when making an offer. It is very common for a buyer to ask for two or three percent of closing costs to be paid by the seller. If the seller does not want to budge on price, raise the price of the property to make up for the closing costs. The cash you save upfront will make up for the slightly higher loan and purchase amount.
If you are a real estate agent, you can also save a lot of cash on each property you buy. I am a real estate agent and I save thousands on each property I buy because I am paid a commission for my side of the transaction. This decreases how much money is required to buy rental property tremendously. Here is a much more detailed article on how becoming a real estate agent will save you money when investing. Here is another article on how much money real estate agents can make.
What about reserves?
If you find yourself looking to invest and have saved just enough to buy and renovate a property, be careful! There are always unexpected costs and delays associated with repairs. Make sure you have a cushion in the bank for the worst-case scenario. I suggest at least six months of mortgage payments, taxes, and insurance as reserves for each property you own. This would be money on top of the initial investment used for repairs and carrying costs.
Conclusion
You may need as much as $30,000 to buy a $100,000 house, but that can increase if many repairs are required or if you have to put down more than 20 percent. You need to make sure you have enough reserves if things do not go as planned. Remember, if you are purchasing more expensive homes, that number will increase significantly and it will decrease if you are buying lower-priced homes.
Hey Phoenix, your days of paying crazy real estate commissions are over. Starting January, 2018, you can buy or list your home using Homie. Homie, the new-way real estate brokerage, isn’t business as usual. In fact, there are some pretty amazing differences between the new way and the old way of buying and selling a home.
Why we started Homie
Buyers used to spend Sunday afternoons driving around town to see houses with their real estate agents, but not anymore. For years, online giants like Zillow have dished up the details on any home for sale giving buyers all the info they need to narrow their search. Most buyers now browse homes online, select the listings they’re interested in, and then call the agent to tour them. And sellers? Sellers are wondering why they’re still paying traditional 6% agent commissions. Doesn’t technology do a lot of work?
We wondered the same thing. Why do people still go through the same old 1950’s real estate process? Modern consumers use Turbotax to navigate 20,000 pages of tax code. They use apps to plan vacations and guide careers. It was time to offer tech-friendly customers a new approach to buying and selling.
Homie offers a new way to buy and sell
At Homie, we help modern, self-sufficient people buy and sell homes as simply and affordably as possible. The traditional way of having an agent hold your hand from start to finish is great for consumers who don’t have a Google or Facebook account, but for those who can set up an online profile and click through some online pics, Homie is here. Here’s what can you expect when you choose to buy or sell with Homie.
We leverage technology
Our tech automates much of the work that used to take up an agent’s time. Instead of driving buyers around or walking from house to house handing out flyers to neighbors, Homie agents use technology to help our buyers:
Find the right home
Schedule tours
Make offers
Close without a hitch
And to help our sellers:
Prepare listings
Go live (on homie.com and other real estate sites)
Market listings
Review offers
Handle contracts
Close the deal
Sellers pay a fraction of traditional listing costs
Homie sellers don’t pay 6% commissions, not even close. To list, sellers pay a low fee at close.That’s the same whether they’re selling a $199,000 condo in Surprise or a $10,000,000 mansion in Scottsdale (or anything in between). On top of those savings, it doesn’t cost extra to list the property on the multiple listing service (MLS).
Buyers can get more
When you buy with Homie, you can keep up to 50% of our commission.*
Our chosen ones find us
Homie clients know a good deal when they hear it, so they come to us. This eliminates the time and money spent hunting for new clients and lets us spend 100% of our time helping our Homies. And that means we can charge less. A lot less. Oh, and HHomie agents assist with 30+ transactions a month, not 1-2 a year, so they’re good at what they do.
We work as a team
When you sign up with Homie, you get an entire team to help you with experts in different areas. Our specialized team approach allows us to streamline the process and cut even more customer costs.
Cash, meet pocket
We did all this is to reduce how much our Homies pay to sell a home. Just how much can you save? That depends on the home, but we can tell you that our streamlined tech-friendly approach saved Homie customers over $12,000,000 last year, an average savings of over $10,000 per seller.
The future is here
We expect our Phoenix Homies will be just as happy to use the new way to buy and sell homes as our Utah Homies are. Will Phoenix be just as hot as Utah… or even hotter?
*Subject to terms and conditions outlined in the Buyer Broker Agreement.
When it comes to moving, remember: you DO still get some important snail mail, even if most of your communications are digital. Adding an address change to your long to-do doesn’t have to be frustrating. Rest assured, it’s pretty simple. Here’s how it works, and who needs to know you’re moving.
Start at the Post Office
The Post Office (USPS) is always the first place to to go when your address changes. They can also walk you through how to change your address. The first step is forwarding your mail. This is an easy-to-fill-out form and can also be done online. All mail addressed to to you will be re-directed to your new address for a fixed amount of time (typically a few months).
You still need to let other important people and organizations know of your address change, though, since your mail forward is only temporary.
Utility Companies
This one can be easy to forget, especially during the hustle and bustle of your move. However, it’s important to let utility companies know you are moving. They will need to send you a final bill or change your account information.
Related Video: How to Transfer Your Utilities
Department of Motor Vehicles
If you just moved across town, you don’t have make a special trip down to the DMV. You can change your address online once the dust settles from your move. You typically have between 30-60 days (depending on your state) to let the DMV know of your address change. You don’t want to be late on this, so you are not subject to fines.
Your Bank, Broker & Credit Cards
When you have to make a withdrawal, the bank will want to see your ID. If your address doesn’t match their records, it may be more difficult for you to access your funds. Checks are not nearly as popular as they once were, but if you use them, those need to be updated too. Use the 800 number on the back of your credit cards and call to report your address change. They’ll mail you a confirmation of the change.
Be sure to tell your investment broker you’ve moved, especially if your monthly statements are mailed to you. This is sensitive information.
Your Employer
Even if your paychecks are direct deposit, your work still needs to know your new address. When tax season rolls around, most employers mail out tax forms. If you have a 401K or employer stock options, that information gets mailed too.
Your Doctors
Even if you haven’t been to the doctor in long time, this one still makes the list. Sometimes it can take a long time to process billing (it can be over a year). You want to make sure you are up-to-date on all medical bills. Don’t put a black mark on your credit just because you moved.
Your Insurance Companies
This is especially important for your renters insurance. If you don’t let your insurance company know you have moved, your items may not be insured at your new home. One quick call to your agent, and your belongings are safe and sound.
Subscriptions
Do you get any magazines, retail products, prescriptions or food shipped to you on a regular basis? These companies will need to be alerted that you’ve moved.
Tax Collectors
If you own any real estate or other real taxable property, don’t forget to let the tax collector know where to find you. Tax bills are generally sent out each November, with monthly reminders coming for a few months after that.
See Also: How to Give Notice to your Apartment
Moving can be stressful, but changing your address doesn’t have to be. Many of these items can be easily done before the packing begins. If you forget someone, you mail will be forwarded for quite some time. This will give you the chance to inform everyone of your new residence. You’ve done the hardest part, you moved your home. Changing your address is the easy.
Medicare coverage gives good health care coverage to any senior that is over the age of 65. The government program has allowed millions of Americans to get the health care that they wouldn’t be able to afford through a private insurance company.
The program with Medicare is that it doesn’t pay for everything. In fact, there are plenty of major health care expenses that the program won’t pay for, and those bills could drain your savings account. The two Parts of Medicare will pay for things like inpatient care, services from doctors, and preventative services, but there are dozens of gaps in the coverage, and that’s where Medicare Supplemental plans come in. These insurance policies give you additional coverage that could protect your retirement savings accounts.
What is a Medicare Supplement Plan?
There are several ways that you can protect yourself from expensive hospital bills, but a Medigap plan is one of the best ways to do that. These policies are sold by private insurance companies, and they fill in all of those holes that original Medicare doesn’t cover. When you’re shopping for additional health care, it’s vital that you make the best decision for your family.
There are ten different Medigap plans that you can choose from (depending on which state that you live in), and all of them are going to cover different expenses or a portion of expenses that Parts A and B don’t cover. Medigap plans will plug in the holes of Medicare. It can be confusing trying to decide between the ten available plans, but it’s vital that you get the perfect supplemental coverage for you and your loved ones.
These Medigap plans don’t replace your traditional Medicare coverage. You will still have to pay the premiums for your traditional coverage. These plans work in addition to your coverage, unlike Part C Medicare, which replaces your plan and you only pay one premium.
Medigap Plan A Explained
Now that we have discussed the basics, we can start looking at the specifics of Medicare Supplement Plan A. I know that shopping for insurance coverage can be a confusing and frustrating task, especially when you’re dealing with anything related to Medicare, but that’s why I am here to help.
Medigap Plan A is going to be the most basic of the options. Plan A is going to leave behind more coverage gaps than the other options available. One of the advantages of Plan A is that it’s going to be the most affordable plan. It gives less protection, but it keeps more money in your pocket.
With Plan A, you’ll get the basic supplemental coverage that every plan offers, like paying for Part A coinsurance and an additional 365 days of hospital costs after your original Medicare benefits have been used up. If you’ve ever had a stay in a hospital, you know that it can be a massive bill. In fact, having to stay in the hospital for a day or two can easily equal thousands and thousands of dollars. If you ever have an extended stay, you could easily rack up tens of thousands of medical bills.
Part A will also cover any Part B copayment or coinsurance fees that you would be responsible for. Some of the plans, like Plan K or L, will only pay for half or 75% of those coinsurance fees, but Plan A will cover all of them. In most cases, that will not be a huge expense, but it could add up to a dangerous bill the more that you use your Medicare Part B coverage. Similarly, Plan A will also pay for any Part B preventative care coinsurance bills that you would encounter. Medicare Part B pays for preventative care treatments, like depression screenings, HIV screenings, Diabetes screenings, and much more. If you have additional Medicare supplemental coverage, then you won’t’ be required to pay the copayments, those will be paid for you. In most cases, the copayments would only be around $20, but that’s, more money in your pocket.
The other coverage areas of Medigap Plan A are, the first 3 pints of blood and Part A hospice care coinsurance. All of the other gaps in Medicare won’t be covered by Plan A. As you can see, Plan A can be an excellent insurance plan to have, but there are plenty of services and treatments that you will still have to pay for out-of-pocket.
One of the most notable portions that Plan A doesn’t cover is Medicare part B excess charges. Whenever you go to the doctor and get any treatment or service, there is a pre-approved amount that Medicare will pay for. Legally, the doctor or hospital is allowed to charge 15% more than what Medicare has approved, and that rate above the approved amount is the excess charges. If you don’t have Medigap coverage, then you would be responsible for those bills. In most cases, excess charges are not going to be a huge financial strain., but you never know what treatment that you will need.
Choosing a Medigap Policy
Deciding between the ten plans can be difficult. You want to ensure that you have quality health care, but you don’t want to pay for additional coverage that you don’t need. There are several key categories that you will need to consider to ensure that you’re getting the best plan possible.
The first thing that you should look at is your finances and your budget. The goal of your Medigap policy is to ensure that your retirement savings aren’t drained by medical bills, but your supplemental insurance policy shouldn’t break your bank every month. Before you apply for any Medigap plan, you should take a long and hard look at your budget to determine how much you can afford every month.
The next thing that you should look at is your health and family history. The older that you get, the more money that you’re going to spend on health care and medical costs. Before you purchase any Medigap plan, you should look at your chances of having any severe health problems. If you have a family history of poor health or severe health problems, then you will should invest in a more comprehensive Medigap plan, like a Plan F. On the other hand, if you’re in decent health and you have a healthy family tree, then you can consider taking a risk by purchasing a small Medigap policy.
Enrolling in a Medicare Supplemental Insurance Plan
Once you’ve to decide when kind of policy that you want, enrolling is easy. All that you will need to do is contact a Medigap insurance agent, and they will walk you through the process. The WHEN you apply is going to be the most important factor.
It’s vital that you take advantage of the Medigap Open Enrollment period, which is a 6-month window that starts the month that you turn 65. During this period, the insurance company can’t reject your application, regardless of your health. During open enrollment, the plans are guaranteed acceptance. If you’re in poor health, this could be your only option to get supplemental coverage.
Another benefit of enrolling in the six months is that the insurance company can’t charge your more for your coverage. Typically, the insurance company is going to review your health and any conditions that you have, and depending on your health, they could charge you much higher premiums. During the Open Enrollment Period, you’ll get the lowest rates, regardless. Open enrollment can save you thousands of dollars every year.
If you’ve already missed that window, don’t worry, there is still an excellent chance that you can get affordable Medigap coverage. You can’t put a price on the peace of mind that supplemental coverage will give you.
Any Questions?
I know that navigating the Medicare waters can be difficult, especially because they keep changing. If you have any questions about Medigap Plan A or any of the other plans, you should check out my other posts. I have plenty of information about Medigap and supplemental coverage. It’s vital that you have all of the information that you need to make the best choice for your health care needs.
If you’re still confused, you can contact me or an experienced Medigap insurance agent. Those agents can answer any questions that you can or point you in the right direction.
The outreach events feature speakers from a local HUD-certified counseling agency and PHH Mortgage, providing attendees with information regarding mortgage assistance options. After the event, homeowners can schedule a virtual one-on-one meeting with a housing counselor and PHH Mortgage home retention agent to discuss their situations and the mortgage assistance options available to them. “Ocwen … [Read more…]
Stone walls, crocodile-filled moats, Rottweilers — our ancestors found some pretty creative home security solutions!
Today’s home security systems feature a more tech-savvy approach, but the goal remains the same: to keep your family, your property, and your stuff safe from outsiders.
Recent innovations have fueled a new surge in home security sales.
As you shop around and compare systems, consider your home’s security challenges, your lifestyle, and your budget.
Chances are good you’ll find the system you need, whether you’re a new homeowner or just new to the home security market.
How Security Systems Have Changed Over Time and Recently
Believe it or not, tech-driven security systems have been around nearly two centuries. Augustus Russell Pope of Boston combined electricity, magnets, and a bell to create a burglar alarm in the 1850s.
Marketing the invention proved difficult, though, because people feared electricity as much as they feared intruders. As the decades passed, the world caught up with Pope’s idea.
By the early 20th century, electricity had grown safer and more common. The burglar alarm started to catch on.
By the 1970s, home security systems featured motion sensors. Off-site monitoring caught on in the 1980s.
Prices started to fall in the 1990s, making systems accessible for more homeowners. Now the internet has changed the industry again.
For a few hundred dollars in hardware and installation fees — or perhaps less if you install the system yourself — you can monitor your own home from your smartphone from work, school, your commute, or even while on vacation.
These new systems have drawbacks, too, so before you jump in, make sure you’re getting the security your family needs.
Monitored Vs Unmonitored Security Systems
This has become the first question to ask when shopping for home security: Should you pay more for a system with professional monitoring included?
For decades, monitoring fees prevented a lot of homeowners from getting a home security system.
Even the lowest fees can become cost-prohibitive when you pay them month after month and year after year for the indefinite future.
For those homeowners, unmonitored systems may offer the only way into the home security market. If you have a choice, though, give this question some thought.
Monitored systems come with some advantages you may like.
Advantages of Professionally Monitored Systems
Just like with cars, computers, and houses, you get what you pay for with a home security system.
A monitored system costs more, but consider these advantages:
More seamless responses: With an unmonitored system, it would be up to you to contact fire or law enforcement officials when you get an alert about an intruder. When you’re out of town, calling 911 probably won’t work as quickly since you’d have to be transferred between areas of jurisdiction. Someone monitoring your home should be able to contact officials more quickly.
Someone else deals with false alarms: When you’re at work or out shopping and you get a security alert from your unmonitored security system, it’s up to you to assess the risk. If the FedEx guy triggered the alarm by delivering this month’s dog food, you’d feel relieved. But when something like this happens several times a day, it starts to get distracting. A monitored system can take care of these distractions, saving your attention for when it really matters.
Equipment may be included: Customers who buy an unmonitored system tend to be responsible for maintaining and upgrading their own security equipment. A monitored system would more likely include the equipment and, naturally, its maintenance and upgrades. In a fast-changing industry, your gear can get outdated pretty quickly.
Protection isn’t dependent on cell service: Most of us always know where our phones are. But what happens when you’re in an area with poor service or when you lose your phone on the Slinky Dog ride at Disney’s Hollywood Studios? (I’m not judging!) You may not have access to your at-home security system alerts when most needed. A monitored service can contact authorities to protect your home even when you aren’t in the loop.
Advantages of Unmonitored Systems
Unmonitored, also known as self-monitored, home security systems have become the fastest growing segment of the market for a reason. Advantages include:
The cost, of course: Since you could use a self-monitored home security system without paying monthly fees, you can save a lot month to month and year to year. Even if you pay a professional to install the system’s panel or cameras, you can still avoid that monthly bill.
A perfect fit if you’re renting: The home security market has traditionally ignored renters since they don’t have the authority to install hardware or enter a long-term contract. An unmonitored system offers exactly what a renter needs: flexible service with no long-term commitment.
Having more control: When you’re making all the decisions about whether to call for help or whether it’s a false alarm, you’re automatically controlling the response level. Since you know better than anyone what’s normal at your home, this can prevent some confusion. For example, the monitoring service may not know your brother has a spare key but does not know the alarm code. Since you know this, you can automatically filter out the police response as a viable option (unless you really have it in for your brother).
Integrating additional home systems: Some of the best self-monitored systems are an extension of WiFi-enabled home automation. Along with feeling more secure, you can also lock or unlock doors, change your thermostat, turn certain lights on or off, and even control the garden sprinklers (and lawn mowers!), all from an app. (Traditional monitored services have started adding these features, too.)
Can You Get the Best of Both Worlds?
Wouldn’t it be nice if you could combine the best aspects of professionally monitored and self-monitored systems?
Well, the industry has been moving in that direction.
Here’s why: The rapid growth of self-monitored home security systems has grabbed the attention of the traditional home security companies.
The leading monitored services are compensating by adding modern conveniences such as app-based customer control and, in some cases, acquiring smaller, self-monitored home security companies.
And it’s not a one-way street: Some self-monitored services have added the option to have your home professionally monitored, but with a twist. You can get add-on monitoring for a fee only when you need it. That way you could still avoid the contracts and flat monthly fees.
As the market continues to evolve, I’d expect to see less separation between these two categories.
But full-time monitoring will continue to be a separator. It simply costs more money to have someone monitoring your home and responding to problems all day every day.
And in many cases, professional monitoring equals a more secure home.
Should You Buy a Monitored or Unmonitored Security System?
This gradual merging of monitored and unmonitored home security features could, ironically, make it harder to decide what kind of service to buy.
If you like the control an unmonitored system offers, you don’t necessarily have to opt for an unmonitored system anymore. You can find a monitored system with similar capabilities.
Or, if you want a monitored system because you’re out of town a lot, you no longer have to choose from only traditional security service providers. You may be able to find an unmonitored service with added-on monitoring periods without a contract.
If you can’t decide for sure, take a look at your home, your lifestyle, and your personal preferences. They can tell you a lot about your needs.
What Type of Home Do You Have?
The kind of home you’re protecting should help drive the kind of protection you buy.
Makes sense, right?
Well, it’s easy to forget such obvious things once you start comparing features, prices, contracts, apps, and customer reviews.
Take a look around your home. If you have two full floors full of windows and doors, along with a garage door and windows to consider, you’ll need a lot of equipment installed and maintained.
You’ll also have a lot more sensors to trigger false alarms. A monitored system could be worth the cost.
On the flip side, if you live in a 2-room apartment with just a few windows and only two doors, your up-front equipment investment will be less, and you’ll have fewer trigger points to keep an eye on as you monitor things while away. A self-monitored system could do the job.
How Connected Are You?
If a home security system sends an alert to your smartphone but no one is around to hear it, does it make a sound? We could debate that question for hours, and if your phone happens to be off, someone could be stealing your stuff as we contemplate.
With an unmonitored system, you’re on call around the clock via your smartphone. If you’re the kind of person who likes to unplug after work or while on vacation, you may want to lean toward a monitored security system.
If, however, you and your phone are inseparable — if you sleep with the phone beside you on the pillow — you’re likely set up well to monitor security alerts.
That said, I’d suggest using a different ringtone for home security alerts. You wouldn’t want to ignore a serious problem thinking it was just a reminder to pick up your sister’s cat from the vet tomorrow.
How Connected Is Your Home?
Most of us have WiFi at home now. Most does not mean all, though.
People without WiFi at home will have a hard time using all the features of a self-monitored home security system.
In that case, a landline-based, traditional system would be a better option.
If you have WiFi, the quality of your surveillance will depend a lot on the quality of your Internet connection.
As more devices and appliances get online — thermostats, washing machines, tablets, phones, TVs, refrigerators, lawn mowers — there’s more demand on your network. For many of us, a DSL connection just doesn’t cut it anymore.
If you have a gigabit-per-second coming across fiber into your home, your unmonitored security features should work just fine.
How Busy Are You?
A lot of us can add tasks to our regular schedules without a lot of stress. People in the gig economy or with a couple side hustles may have just the kind of schedule flexibility they need to assess threats from their smartphones.
Sure, you may have to re-arrange a few things or tell a client to hold on a second while you check the alert on your phone, but it’s still possible. People who teach school, run meetings, perform surgery, or preside over class-action lawsuits may not have time to check their phones every couple of hours.
Just like any other commitment you take on, consider the time demands of an unmonitored security system.
I’ve been in more than one meeting where someone had to check on a security alert. (Usually, something like leaves blowing onto the porch or a delivery from Amazon triggered the alert.)
Do You Own Your Home?
I referred to this earlier, but it bears repeating. Traditional home security firms more or less ignored renters for years since they didn’t have permission to install a system anyway.
With no wires to run behind walls, a tenant can usually install an unmonitored system without changing the property.
Mounting a camera in the corner is hardly different from hanging a picture, and it’s a whole lot simpler than installing a wall-mounted TV.
Plus, when you move on to a new home in a new city, you could take a lot of the system’s components with you to use at the new rental house. Of course, check your lease agreement to make sure you have permission to make the changes an unmonitored system would require.
And, by the way, if you’re a renter who would like a traditional monitored system, ask your landlord about it. He or she may be fine with the idea, especially since a system could reduce your landlord’s homeowners insurance rates.
Best Security System Providers For 2023
We’ve chewed on a lot of theoretical stuff, so let’s get into what really matters. How do systems compare to each other, and which one should you get?
A year or so ago I would have made two best security system lists: One for monitored security systems and one for self-monitored systems.
The features of these systems have blended so much I think one list will better serve shoppers. I’ll be sure to indicate whether you would need a contract to use each service.
While convenient features are important and worth weighing into the equation, the quality of the system itself still matters most.
So I’ll be giving the quality of your home security system first priority in these comparisons while giving conveniences and customer flexibility a little less importance.
Frontpoint
Contract required: Yes Professional monitoring: Yes Length of contract: At least one year
Remember earlier when I suggested the future of home security will likely blend the features of monitored and unmonitored systems?
I had Frontpoint in mind when I said that.
This company has led this confluence of features, offering professional monitoring plus the conveniences do-it-yourself systems introduced.
Yes, Frontpoint requires a contract and you’ll be paying for 24/7 professional monitoring. But you’ll also have a user-friendly app that can control your locks, lights, and thermostat.
With Frontpoint, you install the equipment yourself since it’s wireless, lightweight, and easy to position with included adhesive strips.
Essentially, Frontpoint offers the best features of monitored and unmonitored services in one package: professional monitoring, quality equipment, convenient features, and a do-it-yourself approach.
That’s why I’ve listed Frontpoint first.
I also like the 30-day, risk-free guarantee. If you’re unhappy with the service, Frontpoint won’t bill you and you can return all the hardware. You won’t be on the hook for the rest of the contract.
I also like the one-year contract. Most companies require a three-year commitment.
Frontpoint offers three price points. If you’d like to access recorded video surveillance from your property, you’ll need to go with the most expensive plan.
Best for: A homeowner who wants mobile control, full-time professional monitoring, and more contract flexibility than usual. Avoid if: You don’t want to enter at least a one-year contract.
ADT Pulse
Contract required: Yes Professional monitoring: Yes Length of contract: At least three years
ADT, a leader in home security for almost 150 years, has also started offering the conveniences of unmonitored security in its ADT Pulse system.
Like Frontpoint, ADT Pulse still bases its services on contracts, but it has bulked up its app to give customers more control over their security equipment. In fact, you can probably incorporate your own cameras and sensors into ADT’s system since it supports many third-party hardware brands.
Unlike Frontpoint, ADT Pulse includes professional installation (and a corresponding $99 set-up fee). The result is another best-of-both-worlds approach for the customer who is willing to enter into a contract.
In ADT’s case, the contract will last at least three years, and you’d be billed a hefty termination fee to get out of it.
ADT will let you out of the contract if you’re not happy with the service, but it’s not a no-questions-asked policy. ADT will try to resolve your issues, which is a good thing if home security is your priority.
Best for: A homeowner who wants a time-tested, trustworthy home security partner with professional installation plus modern mobile-based control. Avoid if: You’re not sure about entering a long-term contract.
ProtectAmerica
Contract required: Yes Professional monitoring: Yes Length of contract: At least three years
By now you’re sensing a trend: Traditional, contract-based home security companies that have adopted modern conveniences are dominating the top of this list.
And for good reason: Ultimately, a home security system should provide the best home security for you and your family, and professional monitoring tends to offer more security.
ProtectAmerica makes this list for those reasons and because of its flexible pricing options. The company has five price points.
I’d stay away from the company’s less expensive, landline-based options. They do not offer the control and integration you’d get from Frontpoint or ADT Pulse (unless you want a traditional, landline-based system).
ProtectAmerica’s broadband and cellular-based options deliver a lot. You can even integrate the system with your Amazon Alexa or Google Home smart device for voice control.
And when an alarm goes off, you can also get a voice prompt from the system telling you which sensor or camera triggered the alarm. When you’re half asleep, this simplicity can pay off! There’s also a panic button which will automatically call for help.
Best for: A homeowner or renter who wants the conveniences of tech-based security with fewer potential complications. Avoid if: You’re shy about a three-year contract.
Vivint Home Security
Contract required: No, unless you’re financing equipment Professional monitoring: Yes Length of contract: At least 42 months (but only when financing equipment)
If you’ve been looking for a no-contract home security solution that still delivers professional results, consider Vivint Home Security. Vivint offers monitoring for a monthly fee, but it doesn’t require its customers to commit to more than one month at a time.
However, if you cancel your account while you still owe money on your equipment, Vivint will bill you for the balance. So even though you wouldn’t have an official contract, you’d still be compelled to keep the service or pay a lump sum to end your connection to the company.
It’s not exactly a no-strings-attached situation, but customers do have more control month to month, especially if they pay up front for the equipment.
Vivint makes this list because of this potential flexibility and because of the flexibility of the company’s equipment.
You can essentially build your own home security and home automation package the way you want. Rather than choosing from a package, you can combine different kinds of surveillance equipment including outdoor monitoring, and different safety features such as smart lighting and thermostat control.
You can manage your system through a Google or Amazon smart speaker or you can use a more customized control panel.
Best for: A homeowner who wants to customize a security solution. Avoid if: You don’t want to pay up front for equipment. If you don’t pay up front, you’ll have a de facto contract.
Link Interactive
Contract required: No, unless you’re financing equipment Professional monitoring: Yes (by a third party monitoring center) Length of contract: N/A unless financing equipment
Link Interactive rounds out my top 5 because, once again, it blends traditional and unmonitored features to give customers the best of both worlds. Link Interactive stands out because it has embraced broadband and cellular networks more thorough than most other providers.
As a result, you can talk with a professional monitor through your control panel at home during an emergency. Sometimes just knowing what’s going on and finding out easily when help will arrive can alleviate stress.
But you should know that Link Interactive uses a third party, which doesn’t always equal a loss in quality, but it does mean the company has less control over the monitoring process.
Still, lots of Link Interactive customers have been satisfied with their service according to TrustPilot and Better Business Bureau reports, which tend to lean toward the negative for security systems.
Link Interactive lets you pay month to month instead of committing to one to three years. However, as with Vivint, if you owe money on your home security equipment, you’d have to pay the balance if you canceled service.
So unless you pay up front for the equipment or pay the balance down enough to make more affordable, you’d likely be sticking with the service for a while.
Essentially, it’s a contract by another name. Link Interactive does stand by its 30-day grace period. If you change your mind or don’t like the service, you can cancel without obligations.
Security matters most, and even though I’ve listed a couple concerns, Link Interactive has the experience (about 70 years’ worth) and the equipment to serve its customers well.
Best for: A homeowner who wants a reliable partner with the best modern conveniences. Avoid if: You don’t plan to stick with the company for at least until you’ve paid off the equipment.
Best Self-Monitored Home Security Services For 2023
I know — I listed my five top choices for home security, and not a single one offers a completely self-monitored system.
I alluded to the reason earlier but here it is again: Professionally monitored systems simply provide better security across the board, and we’re looking for the best home security systems.
In most cases, security tends to be better because you have a staff of monitors at the ready to respond to a crisis at your home.
Most, of course, doesn’t mean all. You may have just the right work-life balance to handle a self-monitored system. Or you might just prefer to self-monitor your home security, either to save money or because you like the control.
If so, you have a lot of choices.
Let’s take a look at a few of my favorites.
Ring Alarm
You’ve probably seen this one on TV. It looks simple, efficient, and affordable.
Overall, it lives up. For only $200 or so up front, you can get a pretty solid set-up and install it yourself. Pricier packages offer more components for larger homes.
You can opt for professional monitoring (for $10 a month or $100 a year) or for self-monitoring, which is free. Ring connects to Z-wave, which means you can incorporate a wide variety of home management and security equipment.
Amazon owns and sells Ring systems, so if you’re a frequent Amazon shopper you’ll know pretty much what to expect.
Best for: A low-cost but useful alternative with professional monitoring available.
Honeywell Smart Home Security
Honeywell, whose name you may have seen on thermostats somewhere along the line, has expanded its business into smart home connectivity, including home security.
You’ll pay more, over $1,000 most likely, to get your system going, but after that, you can do a lot, including arming and disarming the system with a key fob and even integrating facial recognition.
Honeywell’s system works seamlessly with Amazon Alexa, and the system should soon also offer Google Assistant and Apple HomeKit integration.
Honeywell also syncs with Z-wave, which means you can use all sorts of wireless equipment to manage and monitor your home.
Best for: A do-it-yourself alternative that still has top-notch gear and accessibility specializing in self-monitoring.
SimpliSafe
SimpliSafe has grown in name recognition and market share. The company offers a lot of options. About 16 to be precise. They all vary slightly in the number of components and price.
Set-up fees range from about $290 to about $550 depending on how much equipment your home needs. The equipment is easy to install and use. You can go without professional monitoring and keep using the security equipment.
It tends to be harder to incorporate third-party equipment, though. So if you get SimpliSafe don’t assume you can use existing gear from previous systems.
Best for: An all-in-one system for homeowners new to security systems.
Nest Secure
If you use Google products — Google Assistant and the Android operating system, for example — Nest Secure could offer a sensible extension for your home automation and security needs.
Naturally, the service integrates nicely with Google Assistant and your Android phone or tablet. You can spend up to $500 or so getting the equipment set-up.
You can add professional monitoring on a contract or month-to-month basis.
Best for: Customers who already use Nest home automation products. Nest is part of Alphabet, Google’s parent company.
Going Cheap? Create Your Own System And Go Full DIY!
Even though the home security market has changed a lot with the success of self-monitoring systems, customers still have two basic choices:
Enter a contract of some sort to get professional monitoring and pay less up front.
Buy a do-it-yourself system, spending $300 to $1,500 up front, and have the freedom to self-monitor and avoid the contract.
Some customers wonder why they can’t just buy some cameras and door sensors and connect the gear to their smartphone. That may be possible, and if that’s your thing, you could save compared to buying a pre-packaged deal.
But, for the majority of consumers, I do not recommend this approach for a few reasons:
It depends upon your ability to connect and maintain the equipment.
You couldn’t add professional monitoring if you wanted to.
It’s more difficult to self-monitor without an app to centralize the camera feeds and sensor data.
Regional Security Firms May Offer a Lot
I tried to limit this post to companies offering nationwide service. Some regional companies offer great equipment and great service, too.
If you’re considering a regional firm in your area, make sure to check on the following issues:
Who monitors the company’s security systems? Is it local or third party? If third party, try to find out response times for the monitoring service.
Are you as the customer responsible for maintaining the equipment or will the company keep it up to date? If you’re responsible, work that into what you’ll be paying.
Does the system’s control panel have a battery backup during loss of electricity? What about backup for the WiFi connection? If not, the system could leave you vulnerable.
If you have the ability to self-monitor, can you integrate components you already own via Z-wave or another similar service?
What do local law enforcement officials think about the firm? Cops know a lot about home security. They may know the value of a local or regional home security outfit.
Need Proof of Results? Ask Your Insurance Agent
Our homes are personal. Having a stranger violate, steal, or destroy our homes, our property feels like a personal attack even if we’re not home and deal only with the aftermath.
People who have experienced that feeling know it can change the way you look at the world for a while.
It makes sense for homeowners (and renters) to seek some kind of protection against this danger. No system can guarantee your safety and the safety of your family.
But home security systems do get results. For proof, just ask your homeowners insurance company.
Many insurers will give you a discount on your home insurance premiums if you have a professionally monitored home security system. Insurers give this discount because they know a quality home security service will likely reduce the likelihood of a personal property insurance claim.
As you compare systems, consider what kind of security you need and whether what you’re buying fits your home.
Security is personal. It’s up to you to make sure you’re getting a system to match your life.
I fix and flip a lot of houses (over 200 to this point), and I have bought 30 + rentals. One of the most often-asked questions I hear is how long does it take to fix up a house. This is a hard question to answer because every house and situation is different.
A small remodel job could take a couple of weeks, while a big job could take 6 months or more. The contractor you use can also affect the timeline. If you decide to do the work yourself (like I have), that also can change the timeline a lot. There are no set guidelines on how long it takes to remodel a house, but hopefully I can give you an idea of what to expect.
Who is fixing up the house?
I remodeled a house myself about ten years ago. I replaced the windows, doors, kitchens, baths, flooring, fixtures, and even took out a wall. I thought doing all the work myself would be a great way to save money. In the end, I lost money because it took me so much longer than it would have taken a contractor. It took me three times as long to do the work, and I did not do the best work because I was learning on the job. In fact, it took me over 6 months, and I was working on it nonstop. I had my worst year ever as an agent and investor because I decided to do that work myself.
When you do a remodel yourself, count on it taking at least three times as long as you think it will. I hire contractors and subcontractors for every project now. It can still take time to repair a house, but it is much better than doing the work myself. On a typical job, it takes my contractors from 1 to 3 months to complete a remodel. That time varies based on the number of people on a crew, the work needed, and how many subcontractors I use. Some contractors are also much faster than others, and using a general contractor can slow down or speed up the process depending on many factors.
The video below shows me walking through two of my current flips and giving timelines for what it takes to repair them.
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How does a general contractor change how long does it take to fix up a house?
A general contractor (GC) manages remodel jobs by hiring subcontractors or using his own crew. A GC will schedule, figure out, and budget for all the work to be done. There are pros and cons to using a general contractor.
Pros:
They can save time if the homeowner does not want to manage the project.
They have contacts for subcontractors to help with various parts of the project.
They have experience budgeting and estimating the time it will take to do a job.
They have experience handling any problems that come up on a job site.
Cons:
It costs more money to hire a GC because they charge for their oversight.
It can take longer to use a GC if they want to use their own crew for all of the work.
The more experienced a GC is, the more they can charge.
Some people can claim to be a GC when they have no actual experience remodeling houses.
In my experience, using a general contractor can be a good idea for people who have never dealt with repairing houses. A GC can handle the entire process, but they will charge for it. I do not use general contractors because I can manage the project myself, and I have my own sub contractors I can use on the job. I also can get my remodeling jobs done more quickly by managing them myself. One of the biggest problems I have run into with general contractors is that they want their crew to do all the work because they make more money that way. If one crew is doing all the work, it can take longer than if you have subcontractors or specialists who work on:
Roofs.
Windows.
Flooring.
Painting.
Plumbing.
Electrical.
HVAC.
Foundations.
Landscaping.
While I have contractors working on installing kitchens, baths, doors, etc. I can have my sub contractors working on other items, which speeds up the process.
How to find a great contractor.
How long does it take me to remodel my flips or rentals?
The time it takes me to remodel my houses depends on the house and the crew working on them. I have some contracting crews with four guys on them, and other crews that just have one guy. I will contract out work, and I also have my own employees who do work for me. The time it takes to complete the jobs depends on many factors, but here are some examples of how long it has taken:
On a recent flip, I replaced the kitchen, one bath, flooring, paint, backyard, fixtures, tore down a shed, replaced some trim, patched some holes, and made some other minor repairs. The crew had three guys on it, and it took them about 2 months. I would have hoped the work could be done in one month, but there were delays getting flooring in and a kitchen cabinet.
I was able to complete another flip in 2 weeks, but it only needed paint, some flooring, a couple of windows replaced, kitchen counters, appliances, and a new furnace.
On a bigger job, it can easily take 3 months or longer because problems always seem to pop up. I fixed up a manufactured house in the country recently that took 3 months to complete when we re-sided it, put on a new roof, replaced the HVAC, put in new doors, a new kitchen, new baths, new flooring, textured walls, worked on the garage, regraded a road, and did a lot of minor work too.
I have also had jobs take 6 months or longer because the contractor quit on me or messed something up. A complete gut-job remodel took almost a year because my bookkeeper accidentally paid the contractor before he was done; it took three months to get him to finish the job because he had already been paid.
The number of people on the contracting crew, how well you can manage the subcontractors, and the project size all affect how long it takes to complete a remodel job.
How can you save time remodeling a house?
I have 21 flips going at the moment, and I also have a couple of rental properties we are working on. It takes a lot of time and management to get all of these properties repaired in a timely manner. I have a full-time project manager who helps me with everything. But if you are only doing one or two projects at a time, there are many things you can do to speed up the repair process:
Never pay a subcontractor or contractor the full amount until all the work is done.
Stop by the project frequently (once or twice per week) to make sure work is being done and being done right.
Line up contractors and sub contractors well before the work needs to be done. Many people are very busy and cannot start work for weeks.
Try not to take on a huge project when first starting out.
Take your time hiring the right contractors.
The more subcontractors you can use, the more money and time you will save.
Problems will always pop up. I always expect things to take longer than I think they will. If I think a job should take one month, I will count on six weeks. New issues pop up, contractors don’t work as fast as you think they will, or you may even have to fire a contractor.
Conclusion
Figuring out how long it takes to remodel a house can be tough. It is even tough for general contractors to estimate how long it will take, and that is their job. It all depends on the quality of the workers, the project, who is managing the project, and what problems pop up. If you are flipping houses, remodeling it is only part of the process.
You’ve probably heard that it’s free to hire a buyer’s agent when you’re looking for your next home. This outdated line of thinking probably came from the traditionally confusing process of calculating real estate commissions. However, it is NOT free to hire an agent, and that’s the biggest mistake you can make when buying a home. Here’s what you should know.
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Let’s Break It Down
Let’s use a $300,000 home for example. If a seller and their agent decide to offer a 3% buyer’s agent commission and the seller’s agent is charging a 3% commission for their services. That’s $18k in commissions alone.
How does that affect you as the buyer? Many homes are marked up in price to cover the agent commission. How do we know? Because Homie was established because our founders did the math. They knew how much they personally lost to commissions when they sold homes. Now, Homie agents join our disruptive team because they believe the traditional model is broken, too.
The Difference Between Homie Agents and Other Agents
Now you’re probably wondering why Homie agents choose to join a company that believes real estate commissions are broken in a way that favors the agents. Here are a few reasons:
Our agents can do more deals in a year than most agents do in their entire careers. This provides valuable experience and puts quite a few notches on their transaction belt.
Our company values include humility, work/life balance, and prioritizing our employees. Agents join us because these values align with theirs.
The one reason we hear most often when an agent joins Homie? They love helping their customers and they want a better experience and more savings for them.
Many of our agents would add to this list because their journey to Homie is personal. Ask any Homie and they’ll tell you all the reasons they chose to disrupt the real estate industry! You can read more about Homie agents and what they do here.
Start Saving!
When you buy with Homie, you can keep up to 50% of our commission!* Looking to sell before you buy? Sell with Homie for a low fee that’s due only at closing.
Learn More About Homie
How Does Homie Work? How Much Does Homie Cost? Homie vs. Traditional Agents Can You Buy and Sell a Home at the Same Time?
*Subject to terms and conditions outlined in the Buyer Broker Agreement.