Decembers Doings

December has been a slow month with the holidays upon us and relatives visiting. I’m thankful for having the time to just take off and enjoy it with family and friends without worring about a hourly job or calculating vacation time needed here and there.

Real Estate has continued to be extremely lucrative, with such a high appreciation in the market we are continuing to sell off some Indiana holdings.

An example – A condo purchased for $97K in 2016 will be listed at $185k in 2021. Real estate in America is one of the rare places in the world where you can buy a property through a bank loan and rent it for more that the mortgage payment. At first glance you might think 185-97=88 so a profit of $88k almost a 100% gain? But we only need 20-30% down to buy a property, so in this instance $29k down. Currently the mortgage balance is at $77k so after the sale not taking into account fees and such 185-77= 108. So we invest about $30k and get a return of $108k, that is not a bad deal. I’d take that everyday, 360% return? Many investors would use a 1031 exchange where the profits are rolled into a purchase of another property thus avoiding taxes. If you could buy this property for $30k what could you afford for $100k down? What would your monthly income or cash flow be then?

On this condo with a mortgage payment of $700, plus insurance, HOA fees, etc.. still leaves for a nice profit at a monthly rent of $1400. If you could keep acquiring these you could easily replace a 6 figure income in a very short time with just a little effort and determination.

December is typically slow in the stock market with people on vacation. The markets require people after all to make moves. A little sell off this month with worries in the market surrounding the Fed announcements and new virus concerns. We are hoping for a nice pop back up the last week, sometimes called a Santa Claus rally.

Some of our current positions that are being actively traded utilizing options are UNG, TSLA, ARKF, NIO, TUP. Some of our larger dividend holdings are in QYLD and SLVO as well as a large assortment of high dividend yielding stocks.

This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.


Published by Jay

I came from a single parent house with four kids. My mom was a waitress and my sister helped pay the bills. I didn’t have any silver spoon in my mouth but I was able to break that cycle and I’m still learning about money and finances everyday. They just don’t teach you these things and it seemed like people didn’t want to share!

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