Students in the new Army prep course stand at attention after physical training exercises at Fort Jackson in Columbia, S.C., Aug. 27, 2022. The U.S. Army will pay up to $50,000 to recruits who qualify and sign on for a six-year active-duty enlistment. Sean Rayford/AP Photo
Uncle Sam wants you, and he’s willing to pay you a good chunk of cash.
The U.S. Army announced that it will pay up to $50,000 – its largest bonus ever – to recruits who qualify and sign on for a six-year active-duty enlistment. The bonus package is based on a number of factors that include the selected career field, individual qualifications, length of the contract and the ship date for training.
“This is an opportunity to entice folks to consider the Army,” said Brig. Gen. John Cushing in a press release.
Since 2020, the Army has struggled, just like the private sector, in attracting talent, and officials hope the incentives coupled with some other changes will begin to draw qualified young people.
“We are still living the implications of 2020 and the onset of COVID, when the school systems basically shut down,” Maj. Gen. Kevin Vereen, head of Army Recruiting Command, told the Associated Press. “We lost a full class of young men and women that we didn’t have contact with, face-to-face.”
Here’s how the new incentives work.
How to Score Up to $50K in Army Signing Bonuses
The career-based incentives range from $1,000 to $40,000 depending on the field. The more difficult-to-hire positions will offer a higher bonus. Occupations can range from well-known careers, like infantry and Special Forces, to lesser known, such as radar repairers, signal support systems specialists and motor transport operators.
The Army is also offering “quick ship” bonuses – which increased to $40,000 in 2022 – for recruits who can go to Basic Training within 30 days. The sooner the recruit can leave, the more cash he or she will receive.
Going to Airborne Training can bring $10,000 and Ranger Training can bring up to $20,000. Foreign language skills can bring in as much as $40,000 in specific career paths.
A combination of all these incentives will bring the largest bonuses into play.
“For example, a six-year enlistment as an air and missile defense crewmember starts with $40,000. Right now, that occupation also qualifies for a $9,000 critical accession bonus,” the Army said in its press release. “If the individual decides to ship to training within the next 30 days, the addition of a quick-ship bonus would get the recruit to the maximum amount.”
The Army is also promoting other new changes to attract talent: shorter, two-year enlistments for 84 different career fields and the opportunity for recruits to pick their duty station.
“We know this generation likes to have the opportunity to make their own decisions, so now they can choose where they want to be assigned after training,” Vereen said. “…Many people are apprehensive about long-term commitments right now, so we think having a shorter option will help give them some time to see if the Army fits their life and goals.”
Robert Bruce is a senior staff writer at The Penny Hoarder covering earning, saving and managing money. He has written about personal finance for more than a decade.
The Federal Trade Commission has stopped a pair of student loan debt relief schemes that it says bilked students out of approximately $12 million by using deceptive claims about repayment programs and loan forgiveness that did not exist. The agency alsosays the companies falsely claimed to be or be affiliated with the Department of Education and told students that the illegal payments the companies collected would count towards their loans.
The FTC notes that one of the companies and its owners also violated the COVID-19 Consumer Protection Act by misrepresenting that their program was part of the CARES Act or a similar COVID-19 relief program.
“As Americans struggle with massive student loan debt and uncertainty around the prospect of forgiveness, scammers are looking to cash in,” said Samuel Levine, Director of FTC’s Bureau of Consumer Protection. “These lawsuits to shut down student loan debt relief schemes continue the agency’s crackdown on junk fees, unwanted calls, and financial exploitation.”
According to the FTC’s complaints,since at least 2019, SL Finance LLC and its owners Michael Castillo and Christian Castillo, and BCO Consulting Services Inc. and SLA Consulting Services Inc. and their owners Gianni Olilang, Brandon Clores, Kishan Bhakta, and Allan Radamhave lured consumers looking to pay down their student loans, many of whom are low-income borrowers saddled with tens of thousands of dollars of student debt, into paying hundreds to thousands of dollars in illegal upfront fees. According to the complaints, the defendants tricked consumers into believing they were enrolled in a legitimate loan repayment program, that their loans would be forgiven in whole or in part, and that most or all of consumers’ payments to the companies would be applied to their loan balances. In reality, the defendants were pocketing students’ payments, according to the FTC’s complaint.
The agency also charges that the defendants falsely claimed to be or be affiliated with the Department of Education, and that they would take over servicing for students’ loans. Both complaints note that the misrepresentations by defendants about their purported debt relief services violated Section 5 of the FTC Act and the Telemarketing Sales Rule (TSR). Both complaints also note that the companies have violated the TSR by collecting advance fees for debt relief services and violated the Gramm-Leach-Bliley Act by using deceptive tactics to obtain consumers’ financial information. Lastly, SL Finance LLC and its owners violated the TSR by calling consumers who had signed up for the Do Not Call Registry and by failing to pay required Do Not Call Registry fees.
After the FTC filed complaints seeking to end the deceptive practices, a federal court temporarily halted the two schemes and froze the assets of SL Finance LLC and its owners and BCO Consulting and SLA Consulting and their owners.
The Commission votes authorizing the staff to file the complaints were 3-0. The U.S. District Court for the Central District of California entered temporary restraining orders in the two cases on May 2, 2023 and May 3, 2023.
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
Save more, spend smarter, and make your money go further
photo: quaziephoto
Everyone knows the story. Unemployment is up. FICO scores are down. Home values are down. And because home values are down, home equity has disappeared for millions of homeowners. And since home equity was the financial safety net millions of consumers used to pay off their credit card debt, well, you know the rest. Let’s just agree that, right now, millions of consumers have no way to pay off all of their credit card debt.
There are a variety of ways to get out of credit card debt, right? You can budget your way out of debt. You can file bankruptcy. You can enroll in a debt management plan (DMP) through one of the member organizations of the National Foundation for Credit Counseling, commonly referred to as Consumer Credit Counseling Service (CCCS). You can work with your credit card issuer directly and seek help through one of their hardship programs. You can attempt to settle the debt on your own. Or you can enlist the services of a debt settlement company.
Opinions vary on these options. They all have their pros and cons. The purpose of my article isn’t to explore each option. I’ll do that soon.
The purpose of this article is to explore debt settlement as an option.
Settlement is quite an easy concept to understand. You agree to pay your credit card issuer an amount of money less than what you really own them and they consider the debt to be paid in full. So, if you owe John Ulzheimer’s Bank $10,000 and I agree to accept $5,000 as “full payment” then you have settled your debt with John Ulzheimer’s Bank. The bank reports the settlement to the credit reporting agencies and sends you a 1099 for the forgiven amount. Settlement, incidentally, is considered one of FICO’s Seven Deadly Sins.
Settlement can be accomplished by working directly with your bank. You do not have to hire someone to do this for you. That’s a myth. In fact, many credit card issuers won’t even work with debt settlement companies so you have no choice but to deal with them directly. This is okay because all creditors have their version of a “Remediation” department, which is where you’ll likely end up if you call them asking for a settlement deal.
Now, let’s move on to the debt settlement companies. You’ve all seen their commercials. Distraught couples staring at their credit card statements magically turning into happy families playing with puppies in their front yard, all thanks to ye ole friendly debt settlement company. Heck, there’s even a version that has excerpts from one of President Obama’s speeches and a picture of a government building in the background. It’s clearly intended to come across as a governmental program. Of course, it’s not a government program.
Here’s how they work. First they find out how much debt you have. This is to determine if you’re even worth doing business with. If you have too little debt then they won’t make enough money working with you. That’s why their ads contain statements like “If you have more than $10,000 in credit card debt call now…” If you have enough debt, in their eyes, then they’ll sign you up.
When you sign up they’ll tell you to stop communicating with your credit card issuers. I’m not kidding, they really tell you this. That means no more payments and no more return calls. The hypothesis here is to get your credit card issuer so desperate for payment that they’ll accept a settlement offer.
At the same time you’ll be asked to make monthly payments to the settlement company. Why? Because you’re creating a war chest that serves two purposes. First, this is where their fees will come from. Second, this is where the settlement offer will come from.
After several months, or longer, there will be enough money for them to make some sort of offer to the credit card issuer. The issuer may accept the offer, or they may decline the offer. Either way, your fees to the settlement company have been paid.
So what happens during the period of time you’re paying the debt settlement company (and ignoring your creditors)? Well, since that’s not a part of the commercials I’ll have to be the one who breaks the bad news.
1.Your credit will be trashed.
The credit card issuer will report the ascending level of late payments to the credit bureaus, which remain on your credit file for seven years. Now the debt settlement guys will say “well, your credit is probably already trashed so no big deal.” Wrong, new (and numerous) late payments help to lock in lower scores for additional time. And it gets worse…
2. The card issuer will likely enlist the services of a 3rd party collection agency to collect the debt.
This means a brand new collection will be reported to your credit files. Again, this remains for seven years. And, these guys can pull your credit reports to find you and determine your ability to pay them. That means you’ll have to explain collection inquiries. You’re supposed to ignore these guys as well. And it gets worse…
3. That knock at your door…yeah, that guy is called a process server.
Your credit card company or a collection attorney has sued you for nonpayment of the debt. You can’t ignore him like you’ve been ignoring your credit card issuer. If you do choose to ignore the summons you’ll lose by default for not showing up to court. This is called a default judgment. And yes, the judgment can show up on your credit report for seven years. And it gets worse…
4. Become familiar with the term “Writ of Sequestration.”
In English this is either legal garnishment of your wages or seizure of your assets. If your wages are garnished your employer will now be made aware of your defaulted debt problems because they’re the ones who will hold back a portion of your salary.
You’ve totally lost control of the situation because you chose to ignore your creditors, at the request of a company trying to profit off of your debt situation. Smart? Or not?
And, just to tie a nice bow on the top of this one, the Attorneys General in the states of Florida and Alabama have shut down major debt settlement networks because, and I quote, “they’re a scam because consumers get no value for their fees.” I’ll write soon about the DSCPA (Debt Settlement Consumer Protection Act), which will put most of these guys out of business.
John Ulzheimer is the President of Consumer Education at SmartCredit.com, the credit blogger for Mint.com, and the author of the “credit history” definition on Wikipedia. He is an expert on credit reporting, credit scoring and identity theft. Formerly of FICO, Equifax and Credit.com, John is the only recognized credit expert who actually comes from the credit industry. He has served as a credit expert witness in more than 70 cases and has been qualified to testify in both Federal and State court on the topic of consumer credit.
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Kat Von D, the tattoo maven and beauty entrepreneur, is certainly creative.
Case in point: Her enormous home, which was recently sold for $7,750,000, is a mashup of 1890s ornate style with a good dose of modern goth, complete with a blood-red pool.
While the sale price is impressive, the splendid home was asking for $15 million when it came on the market last year (and topped the Realtor.com® most popular homes list). Still, Von D came out ahead on the home, which she purchased in 2016 for $6.5 million.
The storied estate served as a filming location for the 2003 movie “Cheaper by the Dozen,” and Von D added some cinematic touches while she lived there, including the very red pool.
The 12,500-square-foot mansion has eight bedrooms and 7.5 baths. There’s also a carriage house with two bedrooms and a bath.
This Victorian-era gem sits pretty amid rows of clipped hedges and swirly landscaping. Inside, it’s replete with dark wood paneling and floors, fairy-tale-like turrets, intricate scrollwork, leaded stained-glass windows, and elegant chandeliers.
A cavernous entryway leads to the main rooms, which include a living space, den/library, and sitting area.
The updated kitchen fits in nicely with the home’s original era, and a little chef’s garden is just steps from the cooking area. A hidden bar sits behind a secret door that opens outside to that scarlet pool and spa.
Upstairs you’ll find an automated theater with surround sound, an actual stage with footlights, and a handy bar in an adjacent turreted room.
The house also has modern mechanicals, including new HVAC, roof, plumbing, and electrical equipment. And there’s also a security system and a backup generator in case of power outages.
Von D is also a musician, producing her debut album, “Love Made Me Do It,” in 2021. That same year, she announced that she planned to leave California. According to recent reports, she shut down her L.A. tattoo studio, picked up stakes, and moved with her family to Indiana, where she had already purchased a home in 2020.
When future Basketball Hall of Famer LeBron James debuted in the NBA in 2003, he was an 18-year-old with the weight of enormous expectations on his shoulders. One example? Before even joining the league, he signed a $90 million shoe deal with Nike—a contract that was worth more than his rookie agreement with the Cleveland Cavaliers.
Legend has it that King James spent only $2,000 of the initial Nike windfall. Regardless of whether it’s true, it indicates a certain financial savvy James has maintained over the course of his storied, two-decade career.
Now worth north of a billion dollars, James has managed to build an impressive real estate portfolio. We’ve chronicled his many moves over the years and have always appreciated his taste for luxury properties.
As the ageless wonder continues his reign on the court in the 2023 NBA playoffs, he’s also shown serious property acumen off the court. Let’s take a look at James’ impressive real estate lineup.
Home, sweet home in Ohio
There’s plenty of evidence that James did spend more than $2,000 in 2003. We’re not sure if he dipped into his shoe-contract money or his Cavaliers loot, but he did plunk down $2.1 million on a property in his hometown of Akron, OH, two decades ago. The existing home on the property was razed so James could build a custom mansion.
The sprawling residence tops 30,000 square feet and has six bedrooms, 10 bathrooms, and six half-baths. Baller amenities are said to include a bowling alley, recording studio, and barbershop.
For a sense of the home’s massive scale and serious seclusion, check out this drone video:
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And before the huge house was completed in 2007, James purchased an adjoining 2,989-square-foot property for $425,000 in 2006. That five-bedroom home is now connected to the mansion via a long driveway.
Sojourn through the Sunshine State
After spurning the Cavaliers and taking his talents to Miami to form a superteam with the Heat, James needed a fabulous place in Florida.
He purchased a six-bedroom, waterfront mansion for $9 million in the Coconut Grove neighborhood in November 2010. He even snagged a bargain on the home, which had been listed for $11.9 million.
After four seasons and two rings with the Heat, James returned to Ohio, promising to deliver Cleveland a long-awaited championship.
James put his 16,000-square-foot Coconut Grove home back on the market in October 2014 for $17 million, a serious markup after four years.
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It was an ambitious gambit, but James wound up reducing the price to $15 million and eventually selling it in August 2015 for $13.4 million.
James’ former house changed hands again in 2021 for $12.75 million. It appears the mansion underwent a makeover and landed back on the market last month with a $21.9 million price tag. There’s no sign of James’ former presence, but the bay views are still sublime.
Brentwood, then Beverly Hills
In the midst of his second stint with the Cavs, James’ eyes wandered out West. In 2015, Cleveland fans were dismayed to learn he had picked up a six-bedroom mansion for $21 million in Los Angeles’ tony Brentwood neighborhood.
By this time, James had made his entertainment-industry ambitions clear, so the purchase of a home near Hollywood seemed logical—even if it left Cavs fans worried that he had one foot out the door again. But then he delivered the NBA Championship to Cleveland, in an improbable upset of the Golden State Warriors in 2016. The win guaranteed him lifetime cred with Ohioans.
However, in 2017—amid rumors of his intention to eventually join the Los Angeles Lakers—he purchased another home in Brentwood, this time for $23 million. The brand-new spec home featured eight bedrooms, marble floors, and walls of glass that open to the Southern California sun.
One year later, the rumors proved true and James signed on to rejuvenate the Lakers franchise. He was content with his pair of Brentwood homes. Then in 2020, the COVID-19 pandemic hit, the league shut down, and James went house hunting.
He wound up with a true trophy—a compound in Beverly Hills once owned by the creator of the soap operas “The Young and the Restless” and “The Bold and the Beautiful.” The prestigious property had been on the market for $39 million, but James sealed the deal for $36,750,000 that September.
The spread offers two detached guesthouses, a screening room, and million-dollar views.
At the time of his purchase, agents cited the property’s seclusion and size (2.5 acres) as huge advantages. It ticks the boxes of land, views, and privacy—a rare trifecta in this extremely wealthy enclave.
After buying the Beverly Hills home, James decided to unload one of his Brentwood properties. He put the house he purchased in 2015 back on the market in 2021 for $20.5 million, a little less than what he had paid. After a few months, it was sold for $19.6 million, a rare loss for an all-time winner.
The reality of owning a small business in the United States today is that most companies will eventually, in the course of doing business, encounter a surety bond. If you’re one of the many companies today that does need a bond to conduct your business legally, you have probably wondered what the financial benefits are to the bonding process. And it would follow that you’ve also considered the legal and financial ramifications of not purchasing the necessary surety bonds for your company.
What is a Surety Bond?
Surety bonds represent an agreement between three parties: the party requiring the bond, the party purchasing and maintaining the bond, and the surety bond company who sells the bond. Typically, the entity who requires the bond is usually a governmental agency, and in addition to the federal government’s bond requirements, most states and localities have their own regulations which legislate bond coverages. Ultimately, the government’s insistence on bonding is generally to protect consumers against misconduct or non-performance on the part of the bonded company. If a consumer is harmed in the course of doing business with a bonded company, the party requiring the bond files a claim against it and, if the claim is valid, the surety bond company pays an agreed upon damage amount (up to the full value of the bond). Because the surety company pursues reimbursement from the bonded company, however, surety bonds are not a form of insurance but actually a form of credit.
Becoming bonded is a simple process and is generally inexpensive, particularly compared to insurance premiums and other small business expenses which can add up quickly. Bond amounts vary widely based on the type of bond that you need. For instance, when it comes to surety bonds in Illinois, a mortgage broker bond needs at least $20,000 while a collection agency needs a $25,000 bond to conduct business. Prices on these bonds can vary based on the dollar amount required and on the company’s credit status and financial history, which will be reviewed by the surety company at the time of purchase. If the company seeking the bond has a very poor credit history, they may not be able to purchase a bond at all, or may have to seek out a surety company that specializes in subpar credit bonds. Since surety bonds are a type of credit and rates are based on the financial health of the applicant, these bonds are at least twice as expensive as surety bonds for companies who have excellent credit.
Incentives of Surety Bond
While at first the prospect of a surety bond can seem potentially cumbersome and like one more hoop you need to jump through in order to conduct your business, rest assured that there are incentives to maintaining a valid bond. Most notably, incorporating your bonding status in your company’s advertisements will most likely increase your sales and business a great deal. In today’s difficult economy, consumers are becoming more and more aware of the importance of doing business with reputable, safe companies in order to maximize their gains from the transaction and minimize their loss, and becoming licensed and bonded represents a company’s willingness to work within the appropriate legal channels for their industry. Be sure to advertise your licensed and bonded status prominently in any promotional activity for your business, and mention it in any conversation you have with new clients and customers.
On the other hand, if you choose not to comply with legal requirements and purchase a bond, there are consequences, and some can be quite dire. Not maintaining the appropriate surety bonds can result in financial consequences first, namely fines from state, local, or federal government. Additionally, the lack of a surety bond can result in your business license being revoked or suspended which will effectively shut down your company until you’ve become bonded and can resume activity. Becoming bonded and resuming business can take up to several weeks due to the legwork required with getting paperwork where it needs to be, and providing documentation to all the parties who need it.
Are There Hidden Costs?
As we mentioned earlier, there’s also a rather hidden cost of failing to purchase a surety bond. Consumers use your bonding status as a sign of your company’s willingness to perform your job ethically and according to fair business practices. Choosing not to uphold your legal obligations to take out a surety bond demonstrates a poor attitude towards business in general and can be extremely detrimental to your public image.
Purchasing the required surety bonds for your business should really be a no-brainer. Bonds typically only cost a few hundred dollars, but the penalties for not carrying the required bonds can be well into the thousands. Don’t expose your business to risk and poor publicity. Save yourself some time, money, and sanity by getting bonded before you even begin doing business.
Bio: This is a guest post from Matt Bruns, a principal for SuretyBonds.com, the nationwide provider in surety bonds, as part of their surety bond education program. Matt is not affiliate or endorsed by LPL Financial.
This week’s garage sale map for Wausau-area yard sales is a service of Saint Vincent de Paul of Wausau. Submit your free listing for a future sale at this link.
NOTE: This week marks the annual Wausau Southeast Side Neighborhood Garage Sale weekend. Due to crowding on the map, we are providing the full list below of all participating sales. Thanks to Nicole Guenthner for providing this information!
May 19, 20 AND 21 734 Lake View Dr. Clothing, Books, DVDs, Homegoods, etc
May 19, 20: 8am-2pm 176 Lake View Dr. Household, clothing, books, tools, outdoor/indoor furniture, Christmas decorations
May 18: 4pm-6pm, May 19: 3pm-6pm, May 20: 9am-5pm 2408 Midway Blvd. New ping pong table, antique vanity, kitchen essentials, sporting gear, tools, housewares, decorations, camping gear, reverse osmosis system, lighting, ice fishing gear, games and much more.
May 18, 19, 20: 8am-3pm 915 Ross Ave. Misc household
May 18, 19: 9am-5pm, May 20: 8am-11am 725 Lake View Dr. Baby and kids items including clothing, toys, art easel, tricycle, high chair, swing, and car seat. Household items such as small appliances, electronics, decor, and books. Womens clothing
May 18, 19: 8am-4pm, May 20: 8am-12pm 609 Ethel St. Toys, loads of great puzzles, Stampin’ Up stamp sets(most never used), household, some camping, vintage boxed silverware, lots of Thirty-One bags, and never used rice cooker. Kids clothes: girls newborn to 5 and boys newborn to 2T.
May 20 704 Kent St. Two kiddos, 7 and 10 years old, will be hosting their own yard and bake sale to earn money for a summer trip
May 19: 9am-4pm, May 20: 9am-12pm 605 Ross Ave. Dumbbells, teen boys clothes, DVDs, CDs, housewares.
May 19, 20 2505 Mount View Blvd. All the usual garage sale items. No children’s items.
May 18, 19, 20: 8am-5pm 205 Broadway Ave. Womens Plus-sized clothing, shoes, Tupperware and other household goods, decor, hand painted glassware and many other miscellaneous cool things!
May 18, 19, 20: 8am-4pm 201 Weston Ave. Crafts and art pieces, clothing, toys, misc.
May 19, 20 421 Ruder St. Household furnishings, brand name Juniors/Women’s clothing, accessories, formal dresses; Christmas decor.
May 18, 19: 8am-4pm 1918 Fairmount St. Multi-family sale with a variety of items.
May 18, 19, 20: 8am-5pm 502 Kolter St. Multi-family sale! Spring cleaning and purging, something for everyone! Household items-popcorn machine, kitchenware, furniture, dog kennel, video games, toys, clothing for men, women, and boys, shoes, designer handbags, jewelry, and much, much more!!!
May 18, 19, 20: 8am-4pm 1912 Zimmerman St. New Bradley Smoker; FitMi portable home suite; magnifying light; doll-house; Weider weight bench; rugs; clothing; and this-n-thats.
May 18, 19, 20: 9am-5pm 1629 Plato St. Household, books, etc.
May 18, 19: 8am-5pm, May 20: 9am-12pm 121 Weston Ave. Boys and girl clothes, toys, shoes, tools, some antiques, golf clubs and balls. Variety of household items. Bows and arrows. High chair
May 19, 20, AND 21: 8am-4pm 619 Ruder St. Toys, Nerf, antique furniture, motorcycle, misc clothes and accessories, video games
May 19, 20: 8am-5pm 2517 Pied Piper Lane Multi-family sale! Treadmill, household items and decor, highchair, tow behind bike trailer and other baby items
May 18, 19, 20 1921 Roosevelt St. Housewares, tools, movies, CDs, collectibles
May 18, 19, 20: 8am-4pm 2401 Mount View Blvd. Multi-family sale. Baby items, baby and toddler furniture, toys, nursery decor, household items, household decor, women’s clothing (medium-xxl), maternity clothes men’s clothing, women and men’s shoes
May 19: 8am-4pm, May 20: 8am-12pm 816 Ross Ave. Home decor, household/kitchen items, men’s clothing size L, XL and tons of young women’s clothing, size XS, S
May 19, 20: 9am-5pm 710 Ross Ave. 5 family garage sale–clothes, shoes, house goods
May 19: 8am-5pm, May 20: 8am-3pm 2624 Oakwood Blvd. Girls clothing 7/8 to 10/12 and boys 3T-4, women’s clothing L-2xl, men’s clothing L- XXL, toys, shoes, household items, sports cards and memorabilia, many other miscellaneous
May 18, 19, 20: 9am-5pm 146 Eau Claire Blvd. Household items, toys and clothing size child 6 – adult.
May 18, 19, 20: 8am-6pm AND May 21: 9am-4pm 2401 Pied Piper Lane We have a variety of kitchen items, dining room table, furniture, pet supplies, women’s and men’s clothes ( most sizes are large to XXL, with some mediums), books, some linens for crafts, household decor, some bathroom and bedroom accessories, a tonneau cover that was one a F-150 6’5” box, and many more items. We will also have a snack station available. $5 fill a bag for clothes sale and $3 fill a bag sales for books every day. Saturday at noon, 1/2 off smaller items and best offer for larger items.
May 18, 19, 20, AND 21: 8:30am-until it slows 212 Weston Ave. Boys and Girls clothing and shoes sizes 7 – teen Women’s/Junior’s XS – L, Furniture, Gas Grill, Household, Nerf guns, Legos, and more!
May 20: 9am-4pm 415 Broadway Ave. Household items, decorative, clothing. $5 for all items you can fit in a bag. Individual items or larger items please make an offer.
May 18, 19, 20: 9am-5pm 1906 Emerson St. 3 wheel push golf cart, lawnmower, misc household and quality men’s clothes
May 18, 19, 20: 8am-5pm 807 Graves Ave. Huge multi family sale including but not limited to – Men’s Clothing Sizes L-2XL, Men’s Shoes Sizes 11-12, Women’s Clothing Sizes S-L, Women’s Shoes Sizes 8-9, Girls Clothing Sizes 3T-5T, LOTS of Kids Toys, Decor, Kitchenware, Holiday Items, Outdoor decor, And much more!!
May 18, 19, 20: 8am-5pm 904 Lake View Dr. US & world coins, Denmark blue & white plates, Disney snow globes & water fountains, collector plates (Star Trek, eagles, Elvis, etc.), books, lighted beer signs, CDs, DVDs, sports figures, racing, fantasy axes and shields, Beanie Babies, Beanie Buddies, unused sporting tickets, vinyl records and more.
May 18, 19: 9am-5pm 1927 Lamont St. Estate/Rummage Sale. Rain or shine!! (HUGE tent!) More items added from last week’s sale. Furniture, kitchen items, home decor, brand new and used exercise equipment, tons of bedding and curtains, rugs, baskets of all sizes, luggage, dishes, Christmas items, German movies with multi-region DVD player. Too many items to mention. Make me a REASONABLE offer!!!
May 18: 12pm-5pm, May 19: 9am-5pm, May 20: 10am-5pm 722 Weston Ave. Multi-family sale. Maternity, girl clothes: newborn-24 months, womens and mens clothes, kitchen items, house items, unopened formula, play kitchen, craft stuff, wedding stuff, AC units and MORE!
May 19, 20: 8am-4pm 2503 Marshall St. Boy Scouts National Jamboree fundraiser will be selling coffee, donuts, and additional drinks.
May 18, 19: 8am-5pm 147 Eau Claire Blvd. Old Army trunk, Jenny Lind maple full size bed with frame, vintage lawn chairs and vintage wood folding chairs, Pyrex, nested bowl sets, vintage graters and cookie cutters, Ohio art checkerboard, DVDs, backyard privacy screen, some tools, housewares, canning jars, new lids and rings in boxes and much more. NO CLOTHES.
May 18, 19, 20: 8am-5pm 401 Eau Claire Blvd. Wrought Iron outdoor dining set, Outdoor Lounger, Weber Charcoal Grill, De-Humidifier, Punching Bag, 2 person ice fishing Shelter, Fosse Ball Table, Bike, DIY Swing Set Hardware (NEW), 5-Drawer Dresser, Leaf Blower, Adult Clothes – S-L, Boys Clothes 8-12 , Toys, Bedding, Misc Household Items WE HAVE A LITTLE BIT OF EVERYTHING Look for the GARAGE-A-POLOZA sign!!
May 20: 8am-3pm 326 Ross Ave. Sports Cards/Memorabilia, Collectibles, CD’s, DVD’s, Vinyl/Records (Oldies to Current), Men’s Shirts (Brewers/Sports Related), Women’s Clothing, Snowboarding Jacket, Ice Fishing Bibs, Women’s Scrub Tops, many other items!
May 20 AND 21 1913 Kings Court Watermelon and cucumber Agua fresca (fresh water)
May 18, 19: 7:30am-5pm 1635 Plato St. Eclectic sale of mostly man items: knives, axes, traps, welder, troy bilt rototiller, vintage cans, cast iron, Coleman Lanterns, and military items. Some kids items and a fair amount of jewelry. A lot of vintage/collectible items that are priced to move! If raining, the sale will be shut down.
May 18, 19, 20: 9am-5pm 729 Graves Ave. GINORMOUS Multi-Family Sale. If we don’t have it, you don’t need it!! Household, Tons of Books, Clothes, Shoes, Toys, Canoe Bookshelf, Camping Lanterns, Stuffed Animal Cage, FUNKO POPS and so much more. If it is a major downpour, we may not open or close early since there is so much stuff and not everything will display inside the garage.
May 17 AND May 18, 19, 20: 9am-5pm 1410 Fairmount St. Medical supplies, women’s/men’s clothes, homemade woodwork crafts, antiques, kitchen gadgets, books, etc.
May 18, 19, 20: 8am-4pm 1923 Zimmerman St. Antiques and collectibles.
May 20: 8am-4pm and may be open May 18th and 19th after school 304 Eau Claire Blvd. Kiddo is running a treat stand with prepackaged snacks and drinks
May 18: tentatively open. May 19, 20: 8am-5pm 152 Bertha St. Womens and men’s clothes, purses and bags in very good condition, some household decor items and art.
Return on Equity vs. Return on Assets: Key Differences
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Return on equity (ROE) and return on assets (ROA) determine how efficient a company can be at generating profits. Both formulas that can help investors determine how good a company is at turning a profit. Let’s take a look at both metrics, how to use them, how they differ and what their limitations are.
If you’d like personalize investment advice, consider working with a financial advisor.
Return on Equity Definition
According to the Corporate Finance Institute, return on equity (ROE) is a percentage that expresses a company’s annual income relative to its total shareholder equity. The equation for ROE is the company’s net income for the year divided by its shareholders’ equity. ROE is a great way to calculate a company’s profitability—put simply, how good it is at making money.
A company’s net income is the amount of money it brings in after paying all its financial obligations, such as taxes and operating expenses. Shareholder equity is the sum of a company’s net worth. The idea is that if the company shut down and liquidated its assets and paid off its debts immediately, the shareholder equity would be the remaining amount that would be distributed to those who owned stock in that company.
Here’s a simplistic example to illustrate how ROE works: Let’s say Company A has a net income of $10 million. Meanwhile, their total stockholder equity—the amount the company would pay to stockholders if it liquidated all its assets and paid off its debts—is $80 million. The ROE for Company A would be 12.5%.
Thus, ROE can be a valuable metric to use as an investor. If you’re considering investing in a company, you can look at their ROE over the years to see if its growing or diminishing, which can point to whether leadership is making wise decisions that benefit shareholders. You can also compare that company’s ROE to other companies in the sector to see how their financial performance matches up.
Return on Assets Definition
Return on assets (ROA) is a different equation but serves a similar purpose: determining how effective a company is at utilizing their assets to create more value. The equation used for ROA is taking the company’s net income and dividing it by their total assets.
A company’s total assets include everything that company owns that can generate money. That might be plain old cash, inventory, intellectual property such as patents, real estate and more. If they could sell it for a profit, that’s an asset.
Let’s take a look at what a simple example of ROA might look like. Let’s say Company B has a net income of $5 million and owns $25 million in assets. When you do the math, you see that Company B has an ROA of 20%. That means for every dollar of assets, the company generates 20 cents in profit.
ROA can be helpful because it shows how a company is using its current investments to generate profits. Higher percentages mean the company is better at its assets to make more money; lower percentages mean that its worse at it.
How ROE and ROA Differ
If both of these measurements sound pretty similar to you, you’re not wrong. They do have a lot in common — both in what they measure and the purpose they serve. But they do have some important differences.
The single biggest difference between ROA and ROE is that ROA takes into account a company’s debt, while ROE doesn’t. If a company doesn’t have any debt, these two numbers would be the same for that company. Debt can add new assets to a company’s balance sheet, but of course the company also now has a financial obligation to its creditor.
Companies can use debt to artificially boost their ROE. Companies can generate profits by borrowing large amounts of money and using that to drive greater income. Of course, that money isn’t free and a company with too much debt isn’t healthy. Make sure you examine both of these metrics rather than just relying on ROE.
How to Use These Metrics
It’s important to know that there are some limitations to these metrics. Investors should not make decisions based on any one number. Any one number may not be representative of the company as a whole, and there are many ways that numbers can be manipulated by unethical accounting methods.
ROE particularly can be manipulated due to the fact it’s not impacted by how a company is leveraged—that is, how much debt it has. As mentioned above, company can borrow extensively to boost profits and artificially inflate their ROE. Stock buybacks can have a similar effect. Make sure that you’re taking a look at the company’s entire balance sheet and wider strategy before making any investment decisions.
And you may be asking: How will I know whether a certain percentage is “good?” For ROA, over 5% is good and over 20% is great. For ROE, 15-20% is considered good — in 2022, S&P 500 companies averaged a ROE of just over 21%. However, these standards can differ greatly between sectors and industries.
The Bottom Line
ROE and ROA can both extremely useful metrics for investors determining the financial health of a company. These formulas can help you determine whether a company is using their assets in a productive and efficient way—and thus, whether or not you should invest in them.
Tips for Investing
Investing isn’t always easy to get into, especially for beginners. But you can get personalized, detailed financial advice from a profession to help you build an investment strategy for your current and future life. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
One of the most important lessons in investing is to maintain a diverse portfolio. A variety of investments in different sectors, industries, locations and risk levels can help you create a portfolio that minimizes risk while still generating strong profits. Use SmartAsset’s asset allocation calculator to help determine a well-diversified portfolio that works for you.
CHICAGO — You can catch a screening of a White Sox documentary, shop local at the Spring Cleaning Market, check out the Logan Square Farmers Market on its opening day and more.
Here’s 19 things to do in Chicago this weekend:
1-7 p.m. Saturday
Chicago Fair Trade Museum, 1457 N. Halsted St.
The biggest World Fair Trade Day event is coming to Chicago this weekend. Learn how to grown your own greens at home, join a cross-cultural knitting project, compete in a bake-off using fair trade ingredients and more. There will also be tastings of fair trade chocolate, tea and wine. The event is meant to raise awareness of fair trade, a business model aimed at combating poverty, exploitation and climate change. You can buy tickets, enter the bake-off and donate online.
10 a.m.-7 p.m. Saturday-Sunday
Lincoln Avenue from Roscoe to School streets
Shop handmade paintings, sculptures, home decor, jewelry and more at this free North Side fair hosted by Special Service Area No. 27. Enjoy food, music, painting classes, selfie stations, interactive art activities for kids, Sunday morning yoga and more. Sign up online for a chance to win $100 in Art Bucks to spent at the fair. Attendees can also bring their gently used wall art to donate the Chicago Furniture Bank, a nonprofit that distributes furnishings and art to people who are leaving temporary shelters and moving into permanent housing.
5-11 p.m. Saturday
CHAOS Brew Club, 2417 W. Hubbard St.
Alongside a taco bar with all the fixings, birria and pastor, enjoy seasonal ales and lagers crafted by CHAOS brewers at this 10th annual Cerveza de Mayo. You’ll also be able to tour the brewhouse, listen to music by Brian Hoyt and sit by fire pits. Tickets are $45 online. Each ticket includes admission, unlimited food and drink and a 45-day membership to the brew club.
Spring Cleaning Market
1-5 p.m. Sunday
Easy Does It, 2354 N. Milwaukee Ave.
You can grab a glass of wine and oysters while buying art, ceramics, floral arrangements, vintage good and more from local artists. There will also be a motor shucker providing raw bar options and DJ at this market by Common Violet.
11 a.m.-3 p.m. Saturday
The Promontory, 5311 S. Lake Park Ave.
“Last Comiskey” is a new documentary about the White Sox’s final season at Comiskey Park, the team’s old ballpark. This event includes a screening of portions of the film and a Q&A with producer and director Matt Flesch, White Sox pitchers Donn Pall and Wayne Edwards, longtime Chicago sportscaster Tom Shaer and White Sox organist Nancy Faust. Admission is a $25 donation benefitting the Pediatric Epilepsy Surgery Alliance. You can buy tickets online.
6-11 p.m. Saturday
The Logan Theatre, 2646 N. Milwaukee Ave.
Presented by the Japanese Arts Foundation, “Melanated and Animated” is a 21-and-older event that highlights the intersections of Black and Japanese culture. Listen to a panel discussion with industry guests — including game designer, professor and digital artist Derrick Fields and Kotaku staff writer Isaiah Colbert — and watch the director’s cut of critically acclaimed anime series “Afro Samurai.” There will be music, Japanese spirits, onsite gaming and more. Tickets are $35 online.
10 a.m.-6 p.m. Saturday
Wicker Park fieldhouse, 1425 N. Damen Ave.
Herbs, vegetables, flowers, hanging baskets and other plants hand-picked by Wicker Park Garden Club members will be for sale this weekend in Wicker Park’s namesake park. There will also be free native pollinator seeds and a children’s potting area, where volunteers will work with children to decorate pots, fill them with soil and plant seeds to take home and grow.
Doors and silent auction 7 p.m., music 8 p.m. Saturday
Bim Bom Lounge, 5226 W. Belmont Ave.
Bim Bom Lounge’s new owners have spent the past year transforming the former dive bar into an recording space. Construction is still underway, and the studio will be literally raising the space’s roof this month. To kick off renovations and raise money for the studio, there will be a BYOB roof-raising show with music and a silent auction with goods donated by local creators. Entry is $10-$20 on a sliding scale. RSVP online or pay with cash at the door to avoid processing fees.
Noon-2 p.m. Saturday
Wilson Abbey, 935 W. Wilson Ave.
The Lighthouse Foundation, a Black- and queer-led social justice nonprofit, is hosting a soul food brunch where people can learn more about the organization’s efforts to ensure equity for Black queer people in Chicago’s LGBTQ nonprofits. The event will feature live music performances, a panel discussion among Black LGBTQ+ workers and a presentation by Executive Director Jamie Frazier. Tickets are free and available online, and a $35-$100 donation is recommended.
9 a.m.-3 p.m. Sunday
3025-3113 W. Logan Blvd.
Shop from more than 100 vendors this weekend for the first Logan Square Farmers Market of the year. The beloved outdoor market will be along Logan Boulevard between Milwaukee Avenue and Whipple Street. Logan Boulevard from Milwaukee to Sacramento avenues will be shut down to drivers to make more room for shoppers and vendors. Alongside produce and farm products, there will be live music and informational booths helmed by local organizations. The Sunday markets take place through Oct. 29.
Noon-4 p.m. Saturday
Mahalia Jackson Court, 1 E. 79th St.
Meet local designers, see some of their fashion, paint flowerpots with your child and shop for Mother’s Day at this free fashion show. There will be food, music and more.
8-10 a.m. Sunday
Lincoln Park Zoo, 2400 N. Cannon Drive
Lincoln Park Zoo is offering a Sensory-Friendly Morning for guests this weekend so they can experience the zoo in a comfortable and inclusive way. The Sensory-Friendly Morning program is offered to visitors who are sensitive to their environments, including people with disabilities, chronic illness, autism, PTSD and dementia. Modifications include limited capacity and muted attractions. The gift shop will open 8 a.m. and Landmark Café will begin selling beverages at 8:30 a.m. Admission is free, but you must register in advance online.
7:15-8:15 p.m. Sunday
Cuddle Bunny – Club, Care & Community, 2901 N. Clark St.
Stretch and rest your mind with bunnies at this bring-your-own-mat yoga class. All skill levels are welcome, and it’s open to people 8 and older. Admission is $22. Sign up online.
2-9 p.m. Saturday
Kehrien Center for the Arts, 5628 W. Washington Blvd.
Local, national and global artists will perform new and ancient South Asian pieces using a variety of instruments and languages at this is event presented by Kalapriya, a nonprofit that celebrates Indian performing arts. There will be Indian food to buy. Tickets are free and donations are encouraged. You can get your ticket and donate online.
Noon Saturday
National Museum of Mexican Art, 1852 W. 19th St.
Teens and young adults 13-25 are invited to a free printmaking workshop led by Marimacha Monarca Press, a queer and trans people of color collective of artists and educators based on the South Side. Attendees will create and carve an original design for a rubber block stamp, drawing inspiration from the “Giving Shape: Yollocalli Artistic Practice Through the Years” exhibition. Participants should bring their own items to print with their stamp, like a T-shirt or tote bag. Email [email protected] to register. Spaces are limited.
Bidi Bidi Boom Boom: The Selena Tribute Dance Party
6:30 p.m. Thursday, Friday and Saturday
National Museum of Mexican Art, 1852 W. 19th St.
Celebrate the legacy of Selena, the queen of Tejano and Cumbia music, at the National Museum of Mexican Art throughout the weekend. Dance the night away, sing your heart out to Selena’s music and enjoy drag performances by Chicago artists. This is a 21-and-older event. Tickets are $30 and include admission and adult beverages. You can buy tickets for Thursday here, Friday here and Saturday here.
2-4 p.m. Sunday
Epic Art House, 1850 N. Western Ave.
Create your own mosaic art from scratch this weekend at Epic Art House’s free Mother’s Day workshop for children and families. You will learn how to choose colors and materials, how to cut and arrange the pieces and how to adhere them to create your final piece of art. RSVP here.
Noon-3 p.m. Saturday
Rizzo’s Bar & Inn, 3658 N. Clark St.
Dress your pup in their best attire for Rizzo’s red carpet “Pup Prom.” There will be raffles, silent auctions and photo opportunities. The first 150 people to buy tickets will get a dog-friendly swag bag. All minors must be accompanied by an adult.
11 a.m. Saturday
Anne’s Haven, 5629 W. Irving Park Road
Anne’s Haven is a nonprofit where women, girls and nonbinary people of all ethnic, racial, sexual and religious identities can gather together, support and learn from one another. This weekend, the group is hosting a ribbon-cutting for Anne’s Haven Honor Tree, a piece of artwork honoring women. You can be part of the honor tree by buying a butterfly at the event, available on a sliding scale of $75-$150 or more. Pecan pie, cupcakes and champagne will be served. There will also be a pop-up market with women makers after the ribbon cutting.
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I fix up a lot of houses whether they are my personal house, my rental properties or my fix and flips. When I repair a house I don’t mean I do the work myself; I have a contractor do it for me. The most difficult part about fixing up a home is finding a great contractor and estimating how much the repairs will be. Estimating the costs to repair a house is not easy to do, but this article will give an idea of what repairs will cost. Repair costs will vary based on the quality of products used, how much labor costs are in your area and the contractor you use.
Update on 2021 repair prices!
I wrote this article before Covid hit the world. You might assume that Covid would decrease the prices of repairs but the opposite has happened. Repair costs have skyrocketed. Many manufacturing companies that produced materials shut down or reduced production while at the same time people were staying home and completing remodeling projects! The price of lumber, insulation, windows, doors, etc has gone much higher.
I am hoping that the market corrects itself soon but you can take most of the prices I list here and add 20 to 40 percent thanks to the increase in costs.
Why buy something that needs work?
Almost all the houses I buy need work and some need a lot of work. I would love to buy houses that are in great condition, but I want to buy houses that are a great deal. To get a great deal you usually have to buy houses that need some type of repairs, because there are fewer buyers who will buy those homes. When a house needs a lot of repairs, most buyers may not be able to get a loan on that house. The fewer buyers for a house the better deal you can get. It also takes cash to make repairs on a house, which further reduces the number of people who can buy houses that need work. Many people don’t want to hassle with making repairs or finding a contractor to make the repairs, which further reduces the buyers for homes that need work.
Even if you buy a house that is in great shape it will need work at some point. The fixtures may become outdated, the interior or exterior may need paint and things eventually break.
Below is a video on a house we flipped and how much it cost to fix up:
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How much does it cost to paint?
When I fix up a house I always paint the house and replace the floor coverings, unless those items were just done. The cost to paint a house has increased a lot in the last few years because the cost of paint has increased and labor has increased as well. My costs to paint the interior of a house are about $1.50 to $2.00 a square foot. For a 1,500 square foot house, it costs about $2,200 to paint the interior. That includes painting the trim white and the walls a different color like beige or gray.
The exterior of a house costs more to paint because the paint is more expensive, more prep work is needed and the weather has to be nice. Painting the exterior of a house can run $3.00 a square foot or more depending on the complexity and condition of the house. If a home has peeling paint it will cost much more to scrape and prepare the surface for new paint. If a house has lead-based paint, the costs can be much more due to the preparation and clean up work needed to dispose of the old paint. Your contractor or painter must be certified to remove lead-based paint or they can face huge fines from the government.
How much does flooring cost?
When I replace the flooring I almost always use carpet for the living areas and vinyl or tile for the kitchens and bathrooms. If a house has hardwood I will re-finish the hardwood, but I don’t add or replace hardwood because of the cost. It will cost three times as much as carpet to install hardwood floors. For me to replace the carpet in a 1,500 square foot house it will cost about $3,000 to $3,500 installed. Vinyl or tile will cost another $500 to $1,000 for the kitchen and baths. These costs are for middle of the road materials that look nice and will last, but do not cost a fortune.
If a house already has hardwood I will do my best to re-finish it, because refinishing is cheaper than installing new carpet. I also like the look of hardwood floors and buyers love them. I can re-finish a 1,500 square foot house that is mostly hardwood for about $2,000.
We will also use laminate or vinyl plank flooring now that the quality has improved and it lasts if installed correctly.
How much are light fixtures?
Another great update to a house is replacing the light and plumbing fixtures. A house with brand new lights, door handles, and faucets that all match, can transform a home. I like to use antique bronze, but we have also used brushed nickel. Light fixtures are as cheap as 2 for $20 for a basic bedroom and bathroom lights. A nice chandelier can be bought for under $150 as well as a nice ceiling fan. Door handles are $20 or less depending on the style and faucets run from $35 to $150. For an entire house, you can replace the lights, door handles and faucets for about $1,200 installed.
How much are appliances?
Another way to make a house look great is by adding new appliances. We put stainless steel appliances in our houses; I can get a stove for $500 to $600, a dishwasher for $300 and microwave for $250. I usually do not buy a fridge for my flips and for my rentals I may buy used appliances off Craigslist. Appliances make a huge difference in the look of a kitchen even if the cabinets are dated.
How much are cosmetic repairs?
If you do all the work mentioned above and the rest of your home is in decent shape, it will make a huge difference in the look and feel. I almost always do all the repairs I discussed on every fix and flip. With my rentals, I usually do most of those repairs, but if a house is in decent condition I can get away with less. Here are the total costs for a cosmetic upgrade on a 1,500 square foot house:
New interior paint: $2,200
New floor coverings: $4,500
New fixtures: $1,200
New appliances: $1,300
Total cost: $9,200
When you fix up a home it almost always costs more than you think so be prepared to spend more than what you calculate. It is very rare that I ever spend less than $10,000 on any house that I fix up because there are usually many little things that need to be repaired as well. Drywall holes, outlet covers, landscaping, and many more things will increase the costs. It is also rare that I do not have more major repairs to complete.
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How much are major repairs?
The repairs on my flips and rentals vary from basic cosmetics to a massive remodel. Here are other common repairs we make on houses and the cost.
Kitchens: It is not as expensive as you might think to replace a kitchen. I can replace a basic kitchen including cabinets, countertops and sink for $2,500 in materials or less. After adding the labor you can replace a kitchen for well under $5,000.
Baths: Baths can be gut jobs or a simple vanity replacement. For a full gut job, I can usually get the job done for less than $3,000. To replace a vanity, toilet and bath surround it can be done for less than $1,000.
Roof: I have a great roofer who will replace the roof on a 1,500 square foot house for around $6,000.
Electrical: Electric repairs can vary a great deal based on what needs to be done. Minor repairs can be a couple of hundred dollars or major rewiring jobs can be $5,000. It is important to get any electrical concerns checked out to see how serious they are.
Plumbing: Plumbing is similar to electrical. A minor job can be very cheap, but to re-plumb, a house can cost $5,000 or more.
Sewer: Sewer lines can be very expensive to replace. Luckily I have never had to replace one, but to replace a line can be $3,000 to $10,000.
Foundation: Most foundation repairs are not fun to deal with. There are many issues from settling, water leakage, grading issues or structural problems. If you have water problems in the basement or crawl space it could be a major foundation issue that is $10,000 or more or a simple grading issue that some dirt work will fix.
Windows: We end up replacing a lot of windows because we buy older houses all the time. For basic vinyl windows, I am usually charged about $300 a window by my contractors for material and install.
Doors: We also replace a lot of interior doors. Six-panel white doors make a home look very nice. Doors are usually $100 to $150 per door installed.
Stucco and siding: I rarely replace the siding on a home, but I have on occasion. I am putting brand new stucco on a fix and flip that is costing about $8,500 for a 1,250 square foot house. Replacing wood siding is cheaper, but you then have to paint the wood siding. You can still re-side and paint a house for less than stucco in most cases.
Drywall/Sheetrock: With old houses, I see a lot of plaster and bad drywall. Brand new drywall makes an old house look so much better than uneven crumbling plaster. On a recent flip, a drywall specialist charged about $3,000 to do the walls and ceilings in three rooms that totaled about 500 square feet.
Furnace/hot water heater: I had a brand new forced air furnace system installed for about $5,000 this year. To replace just the furnace is about $2,500 and a hot water heater about $800.
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How much do I spend when I repair a house?
On my most recent fix and flip that is about to be put up for sale, I spent about $18,000 on the remodel. That included interior and exterior paint, new carpet, new doors, new trim, some electrical work, some new drywall, trash out, landscaping work and many little fixes. On a flip that is about to have the work started, I will spend over $50,000 on the repairs. That house needs new plumbing, new electric, new paint everywhere, siding work, new windows, new doors, new drywall, new baths, new kitchen, new floors, new fixtures, new trim and more.
Where do I buy materials to fix up my houses?
I shop at Home Depot for most materials including fixtures, doors, windows, door handles, kitchens, baths, and all the little stuff. I have a pro account with Home Depot, which gets me huge discounts on the materials we buy for flips and rentals.
Conclusion
Repairing a house does not cost $50,000 or $100,000 for basic cosmetic repairs. I see kitchen remodels on television that cost $50,000 and I can’t believe my eyes and ears! Even if you use high-end materials like granite counters and custom cabinets you should not spend $50,000 on a kitchen unless it is in a million-dollar home. Repairs can add up quickly on remodels and I always expect about $5,000 more in costs that I plan to spend due to unknowns. Find a great contractor, make sure that contractor does their work and shop around for the best prices to keep your costs down. Remember these costs are what I pay to fix up homes in my area. If you live in an expensive town, your costs may be significantly higher.
My book Fix and Flip Your Way to Financial Freedom, goes over exactly how I flip houses! It covers how to find deals, finance properties, what repairs to make, and how to market finished flips! It is available as a paperback and ebook on Amazon.