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  • Bobert's World of Hotness 10-28-2010

    Bobert's Hot Links:

    Dealbreaker: Paul Tudor Jones Letter To Investors
    MACRO, China

    Shaking The Tree | ChessNwine
    MACRO

    As Public Eyes Gold, Advisors Blanch
    GLD, GLD

    Equity Bulls Don’t Need Quantitative Easing To Be Proved...
    MACRO

    Trade To Learn: Important Day Tomorrow
    SPX, MACRO

     

    Bobert's Hot Charts:

    Gann Emblem
    SPX

    GLD BULLISH RISING WEDGE BACKTEST
    GLD, GG

    DAX Chart 5.02am NEW YORK 27th OCT EUREX Frankfurt
    DAX_F, DAX, EUREX, EOTPRO, $FDAX_F

    Trying To Make Sense Of The Recent Activity In %GC_F
    GC_F, GLD, Gold

    LINE About To Break Out
    LINE

     

    Bobert's Hot Videos:

    Apple Delays White IPhone Yet Again
    AAPL

    How To Begin With Investing And Trading (Series): A Traders...
    MACRO

    Texas Instruments Beats Expectations - Analysis With Macquarie...
    TXN

    Dasan Stock Digest
    THEDL, Dasan, DSD


    Oct 28 1:14 PM | Link | Comment!
  • Hedging your Investment Portfolio with a Duplex

    Buying a duplex is one of those decisions I am proud to look back on. I purchased my duplex 5 years ago at the age of 21 with no experience and little knowledge about it. It has had its ups and downs but overall it's been a great experience.

    The investment so far has provided me with great returns. I could sell it today for the price I purchased it at, if not more. I’m happy about that because I’ve got equity in the property from the principal that’s been paid over the years. Click here http://stock.ly/9wuz2d if you would like a breakdown of annual cash flows from a duplex investment (note that property tax and insurance are included in the mortgage cost when looking at the chart).

    I bought the place for $88,000 with 0 down and it only cost me an initial investment of $1000 (Home Inspection and Mortgage Process fees). I experienced 0 vacancies for the first 3 years and the longest vacancy I've experienced between tenants is 2 months. I’m in the Akron, OH area where you can find really nice duplexes for less than $80,000, and I rent to the college market because they’ve always been good about paying. I prefer to only buy properties where there’s a market for college students.

    I only do month-to-month leases because I believe they're a win-win for both parties. If I don't like the tenants, I can end their lease after a month notice without providing them with a reason. If they don't like living at my property or can't afford it, they can also end the lease after a month notice. It's easier and more convenient for both parties this way.

    As far as repairs and maintenance goes, there's small things here and there that need to be fixed. The carpet needs cleaned, walls painted, toilette seat and door locks changed, and other miscellaneous things. Most of the work is done between tenants, so if you have tenants that live in the property for multiple years, the repair and maintenance costs decrease. If you have tenants that trash the place when they move out, which I’ve had happen before, you can take it out of their security deposit,

    Anytime I experience a loss on the property for tax purposes, I get to deduct that loss from my AGI. It's easy to take a loss after you factor in depreciation, interest, property tax, and repair costs. Another nice thing is that the Schedule E form is a piece of cake.

    I can’t say that Duplex investments are for everyone, but they are easy and require little time to manage. The nicest thing about a duplex is there’s always a market for renters, especially today with the foreclosure crisis the economy has experienced. If owning a duplex isn’t something for you, you can always buy a REIT that manages rental properties. Whichever you prefer, real estate is a great way to hedge your investment portfolio.
     


    Tags: REM
    Aug 20 10:17 AM | Link | Comment!
  • Compound Interest is for the birds, I want Compound Dividends

    In my experience in business school, the Finance Department drilled it into my head how great compound interest is, but never mentioned the concept of compound dividends. Although I do think compound interest is nice, I prefer investments in equities, especially REITS, that have DRIP(Dividend Reinvestment Program), so that I can receive compound dividends.

    What is Compound Dividends?
    Compound Dividends is simple, instead of taking cash from the dividend, you reinvest the dividend amount to buy more shares. If you sign up for DRIP, this is done automatically for you. This means that each dividend gives you more shares, which increases the amount you’ll get from the next dividend.

    Why do I prefer REITS for Compound Dividends?
    A Real Estate Invesmtent Trust is required to pay out 90% of its income to shareholders. So if you invest in REITs, you can expect to receive a dividend 4 times a year annually (unless a REIT has negative income). Dividend Yield for the Top 6 REITS http://stock.ly/0d565b

    Another Reason to invest in REITS for the purpose of compound dividends is to gain appreciation in the value your equity is worth. The top 6 REITS not only beat the market, they DESTROY it. Top 6 REITS vs. the market http://stock.ly/05niyg

    The choice is yours, compound interests or compound dividends.




    Disclosure: Long REITS
    Tags: BXP, VNO, SPG, REITS
    Aug 04 11:19 AM | Link | Comment!
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  • I am investing in REITS because compound interest is for the birds, I want Compound Dividends http://stock.ly/7vn7vh
    Aug 4, 2010
  • Value investing is a great strategy, but with increasing transparency, it's harder to find bargains these days. http://stock.ly/6oa3vs
    Jul 21, 2010
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