All Forum Posts by: Phillip Gainey

Travis,

There is insurance on the property, but the buyer didn't put the seller financer on the policy as "mortgagee".

PG

The PN and DOT states that the seller must be insurance beneficiary to the extent of the loan balance. Pretty standard deal.

Okay, maybe he should find another trustee, sue the buyer and take the property back (and pocket the 10k down payment). Pretty expensive phone call if you ask me!

You'd think the closing attorney's office would be required to assure that this was taken care of.

Freaking memphis!

Thanks

PG

P.S. Bryan, you know my partner and brother-in-law, Tom Cullen. He's said good things about you.

A friend of mine sold a property in Memphis a few months back offering seller financing. The buyer never placed him on the insurance policy as "mortgagee". He has tried to get the buyer to do so, to no avail. All she has to do is call the freaking Ins company and have him put on the policy!

What are his legal options?

Oh yeah, and he has had to chase after her most months for payment. Seems she is always "out of town".

Thanks

PG

Somewhere in the neighborhood of 15% before taxes.

You can milk 10% worth of option premiums on most blue chips. Add to that 4-6% yield from the dividends.

It depends on how you enter a position. It's best to enter a position after one of those market sell off's we seem to get once or twice a year. That's the best time to acquire good stocks in any strategy. So option writing is really an "add on" strategy meant to generate additional income with the odds in your favor.

There are on-line option probability calculators you can use. You add in current stock price, option expiration month, strike price...and you get a bell curve probability distribution graph. I use:

http://www.optionistics.com/f/probability_calculator

The options I write have a 70% probability of expiring worthless.

PG

Option writing on good blue chip dividend stocks.

Buy the stock, then sell a call option with a strike price 10-15% above market, and also sell a put 10-15% below market. Collect call/put premiums, in addition to qtrly dividends.

What you have is a covered call position with a cash collateralized put. If the stock price stays within a price range 15% above, and 15% below market over the option period of say 6 months, you keep all the premium and your current shares are not called away, nor additional share put to you.

Sounds complicated, but it's not. Been doing it with Altria, Walmart, Coke for awhile now.

PG

Take Rudolph, for instance. He was discriminated against simply because of the color of his nose!

Luckily, Santa has an affirmative action program in place. Then again, the main reason he used Rudolph was because his nose glowed, not just because of it's color. This glowing attribute was needed to deliver the gifts and accomplish the mission.

Question is, does there really need to be a program that allows ALL reindeers to pull Santa's sleigh, regardless of nose color? Even if their nose doesn't "glow". Should Santa have to lower his standards?

HELL NO! The presents must be delivered. Why should the operation be jeopardized for the sake of "equality"? If a red-nosed reindeer can NOT get his/her nose to glow, or isn't strong enough to pull the sleigh, the hell with them. They shouldn't be on the team! Why screw up the holiday!

I'm fine with any program that helps deserving reindeers to meet EXISTING standards. That would be an affirmative action plan I could live with.

How about a stack of decorative envelopes to put rent checks in.

Vacuum cleaners are good.

Maybe a good quality pen with the rent due date printed on it in fancy lettering.

If your rentals are in a war zone, perhaps a bottle of ripple would be a suitable yuletide gift.

The possibilities are endless. :-)

An alternative to buying is to sell/write a put option and collect the premium instead of a dividend. You keep enuf cash to buy an equivalent number of shares in your account as margin.

Here's how it works. Currently NYB trading at 11.88. If you sell an Apr put with a strike of 11, it will obligate you to buy the stock at $11 (8% discount from current price) if the current price drops below 11. In return, the buyer of the put pays you a premium of 75 cents a share. If the price doesn't drop that far by april, you keep the premium without even owning any shares.

Someone actually pays you to buy a stock you already want to buy if it drops 8% from today's price. You could sell 2 such puts per year and collect $1.5 per share in premiums. That's around 13% a year return without even owning the stock!

If you are assigned the shares, the cash left in your account is used to buy the shares. You can then sell a call option on the shares you now own (covered call) to bolster the dividend! Instead of just getting an 8% dividend return, you can earn 12% with the addition of a call premium you receive. If your shares are called away, you rinse and repeat by selling puts again.

I love OPTIONS! Only suckers buy options! Selling/writing is the way to go! :wink:

Uncle Phil

For the record. We do biz with Reedy and Company. They MANAGE our property and were referred to us by ANOTHER INVESTOR on BP.

Curt works in sales for them.

Most RE investors agree that with RE, you make your money "going in when you buy". If you buy retail from a turnkey seller, you pay a huge premium.

That doesn't mean you can't, or shouldn't let a turnkey company MANAGE your property if you get a good recommendation.

PG

You can also use the search function to see forum posts I've made about our own experiences in the wonderful world of out of state "turnkey" investing, as well as the responses from those disagree with me.

There are also investment clubs, but some have been infiltrated by those on the "sales end", as opposed to pure investors, landlords.

What are you doing in Germany? Army? I am a retired "squid".

PG