Where are you parking your hard earned dollars?
- Thread starter TraDaToR
- Start date
My 1 rental unit has turned out to be my single best investment. Just wish I owned more of them now.
In myself and real estate around the world.
I have quite a bit of equity in my house now, I've been debating on buying a rental property with some of it. There is quite a bit of uncertainty with my job right now (outsourcing to India) so waiting until I can get on somewhere else a bit more stable before tapping into those funds.
Any of you all in the states mess with tax lien sales? I'm looking into them in my area seeing about trying to pick up properties through that method. My state pays 1% a month on your money if the property is redeemed and they have a full year to redeem. The kicker is the property owner must pay that 1% per month PLUS the amount you bid on the property so redemptions aren't nearly as common after the sale. Anyways, just something I'm looking into.
My barber bought a rental property and picked some terrible people to let rent. They destroyed the carpet, Sheetrock, etc and he of course didn't have the proper insurance to cover it. He sold it for a loss just to get rid of it. It was his first experience with it all and I don't think he went into it with a very good plan. Needless to say, he is still cutting hair and not a land baron lol.
From what I have read, tax liens are an over grazed area that is not worth the trouble and best left for lawyers who don't have enough stuff to do.
If you really want to be a landlord, get your rental now while you can produce the income verif. To mitigate risk, make a downpayment that makes the property cashflow positive so bills are covered even if you flip burgers for healthcare coverage.
You never know when you can get structurally retired and never get the same cashflows from a day job.
If you really want to be a landlord, get your rental now while you can produce the income verif. To mitigate risk, make a downpayment that makes the property cashflow positive so bills are covered even if you flip burgers for healthcare coverage.
You never know when you can get structurally retired and never get the same cashflows from a day job.
I have been reducing amount applied to day trading, summer volume can be horrible slippage even in mornings. Not increasing volume in long term stocks or commodities, have good enough value.Today I'm very generous and give you my professional investment list. Maybe the best overview you can find. Use it wisely and thank God I save you a lot of time
A. Primary Trend Investing
• Indices (DE, US, CH)
That's where most of my spare money is parked now. I just buy an index ETF (QQQ) and hold it until the primary trend breaks. (= major retracement). You could also call it "position trading". At the moment China is also very promising.
ROI around 20% a year in bull markets
B. Dividend Income
• High Dividend Stocks
• Asset-Backed Securities (REITs, MLPs)
Dividends around 8%-10% a year. Fluctuations in price likely. Overall (including dividends) same results as index primary trend investming, but the SL is much higher and less predictable => not preferred
C. Money Market
• USD fix term deposit
Currently around 10% a year on fix term deposits (1yr fixed) with reputable international banks. That's kind of an insider, maybe not available in the US.
D. Special Situations
Long-Term Macro Mean-Reversion
D1. Stock Market Consolidation After Crash
• Value Investing - Value Corporations
• Growth Investing - Highly Volatile Growth Stocks
• Index Investing - Prime Stock Indices
• Volatility Investing - XIV
Not possible, stock prices are too high
D2. Interest Rates Cut Or Hike
• Long/Short Government Bonds (Treasuries) and Corporate Bonds
Not reasoanble with current interest rates
D3. Mispriced Instruments
• Over/undervalued assets
Have a look at commodities - there are many options at the moment, for example sugar and coffee are really cheap. But you must be patient and let it sit for years possibly.
So that's all I found after months of intensive research. Opportunities that yield below 3% are not listed, I think it's not worth the risk. All (!) investments have risks. Neither is anything listed that requires work (also buying a house and renting out rooms) - that's called a business in my understanding and not an investment.
Alright, that's all I've found so far. If you know anything else guys, please let me know
Good luck!
Where I have started to increase is more in Commodity spread trading and much much more in selling stock/ETF options and owning stocks in uptrend of dividend stocks, and down trend ETFs and non dividend stocks.
Have also increased in Tax lien Notes and have started going out few states, get better interest and occasionally property to include farmland and water rights. Been buying up worthless desert so long as it comes with water rights, perhaps one day it worth more than gold.
I think Commodities will be breaking 9 year extremes before reversing, US Dollar has already, I think coffee and sugar will go below lows. But I don't trade on what I think, but when I have signals. I like to be buying Gold and Silver coins, but going to wait as I think both Gold and Silver will continue to making lower lows.
Real Estate is still good to get into 3BR houses or even Quads.
Forget about ladies - didn't the CHF unpeg that literally just happened months ago teach anybody that relying on pegged anything is not the best idea in the world? What if some kind of Asian economic crisis happens again and countries start changing their monetary policy. This isn't exactly a safe hedge, it's a "it's always been this way so what could possibly go wrong?" hedge.