The Rear View Mirror and the Windshield
Tuesday, January 03
2016 in Review and 2017 PredictionsThe year 2016, the year of the new political wrangling! When I asked friends and clients what they remember most about 2016, the most frequent answer was they hoped they would never endure another election cycle like this one. The predictions made by the diffe...
Teaching Time Value of Money
Sunday, November 06
I just finished teaching a class on using a financial calculator yesterday. We did not cover things like balancing their checbood or simple math, but covered ways to grow rich "crockpot style". How to make obsene yields on our money, save for our future (not by using coupons), by investing wis...
Buy notes from the Bank.
Sunday, October 02
Time Value of MoneyThey caught Willie Sutton, a famous bank robber and they asked him why he robbed banks. His response,"Because that is where the money is."It has taken a long time to learn how to get into buying from the banks and why they would even consider selling loans to someone like mysel...
C-S-M-L What the heck is this????
Friday, September 16
CSML is the magic sauce in buying anything.You can look at CAP rates, IRR internal rate of return, ARV after repair value etc.In the end you will be better served if you use the CSML formula."But Duke, what does that stand for?" you ask.Common Sense Math and Logic!!!! If I relied on all of the...
Why CAP Rates will make you question Everything!!!!
Monday, July 18
The Capitaliztion Rate, often called the CAP Rate, is the ratio of Net Operating Income (NOI) to the property asset value. For example, if a property was listed for $1,000,000 and generated an NOI of $100,000 then the CAP Rate would be $1,000,000/$100,000, or 10% resulting in what is affectionat...
Rule of 72?
Monday, June 27
If you have a rate of return, divide that rate into 72. The result is approximately how many years it will take to double your money.For Example: If you $10,000 and you invest in a CD at your bank for 2% annual return, it will take you 36 years to double your investmentHow many doubles do you h...