Does Home Warranty worth the money?

Home buyer faces the question of home warranty all the time. Does Home Warranty worth the money?

Some people have some good experiences but most don't. The three most famous home warranty company are:  American Home Shield, Old Republic, and First American Home.

Here are some real life experiences (from online forum):

Person S: "Bought all three before but none of them is good. Won't buy any more."

Person I: "Old Repulic is waste of money. Paid the co-pay for a problem and then told me that it won't cover it."

Person B: "Old Repubic is a scam:
The plumber went there, check, and then say insurance denied coverage because it is a missing washer or something on the faucet that is hard to find. Then the plumber charged $150 for replacing the kitchen faucet, and I still have to pay copay.

I suspect the previous plumber did that a few months ago for the same leak..."

Person S1: "First American = Waste of money"

Tax Season again! Tax for Rental Income and Expenses

Tax Season again! Tax for

Rental Income and Expenses - 2013

Improvement vs. Repair

http://www.irs.gov/publications/p527/ch01.html#en_US_2013_publink1000218983

Co investment Howto?

[from online forum]

My relative in china has $50K cash. I do not have any cash, but I can get a loan.
We want to co-investment a house something like $220K.
How can we divide our owner percentage ?  The total cost is based on $220k or including the interest?

One good answer:

1. if this is your first investment house, think twice, because there is no easy way back.
2. if you insist to do it. check the numbers three times.
3. if you still think you can make a killing, form a LLC.
4. you should treat 50k as 2nd note, paying interest to your friend.
5. you pay yourself a reasonable management fee for your time.
6. when you sell, split the profit as to article of incorporation. its all about negotiation.

Dividends Don't Lie

[from online forum]

I'd like to recommend "Dividends Don't Lie" by G. Weiss and "Dividends Still Don't Lie" by K. Wright. I read them last year and was very impressed.

Their method is to buy blue chips at discount. Dividends serve investors not only as income but also a metric for valuation.

The major argument is that dividends are announced in advance by companies and actually paid out. Unlike earning or even free cash flow, dividends do not lie.

The board members are the ones that really know how their firms are doing. They are not likely to raise dividends only to fail to deliver, especially for the long-established firms with a history of paying out.

Last, the current yield can be used against historical patterns to provide good valuation.


Enjoy and judge for yourself