Author: byoscope

Hello From the Other Side

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I had a wonderful time at FinCon, and I hope to be able to share a post this week with some other attendees’ reflections. It was a great feeling to be around people that were interested in improving, not just their own lives, but others’ lives. I learned so much and hope I can pass along some of these thoughts to you at some point in time. I realized that many of these posts may not be providing much value to you, and for this I think I’m going to lower the number of posts that show my net worth tracker, and instead help you get the tools needed to get your net worth on track. That being said this will be the last net worth check in for awhile.

10-day BS Refresh

While lately my net worth seems to have plateaued I do think it’s important to reflect on this exercise of tracking my net worth; It has paid incredible dividends. Through this exercise I realized I had the capacity to pay down my Michigan rentals, while I was studying for the actuarial exams, and furthermore wasn’t slowed down by COVID at all (3/20 circled below). It has afforded me the space to reflect on my decisions and get very intentional about where my dollars are going. Am I at a spot in life where I should pay down debt? Or maybe I should take out more debt to follow through on another money making proposition, like getting more real estate, which I did three months ago.

Analysis Intelligence

The Opening NW in the 9/30/2021 column is the closing NW from the 9/20/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 9/30 column are the changes that I estimated on 9/20). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior.

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • FinCon was amazing in both in terms of what I learned and the people I met!
  • The Brothers on Books Podcast have posted the episode with Jacob Lund Fisker here

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:



FinCon Bound

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I’m heading off to FinCon tomorrow early in the morning. Austin bound! I’m hoping to meet a lot of great people and hopefully I can take a step forward in blogging and podcasting. I don’t know a lot of specifics on the material we’ll be going over but I’m thinking it’ll be interesting. Stay tuned.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 9/20/2021 column is the closing NW from the 9/10/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 9/20 column are the changes that I estimated on 9/10). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. Bitcoin took a step back, and the transition on the seven unit is a tad bumpy at the moment.

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • Finished Follow the Smart Money
  • Going to FinCon!
  • Got my 10th review on Amazon for 15 Weeks to Pass an Actuarial Exam. Took almost a year but starting to see progress:

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:

The Long and Winding Road

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Besides being a great Beatles song I am reminded recently that sometimes that when it seems like you’re getting beat down you might just be getting stronger, even though it hurts in the moment. When I get in these states of mind I think of the 10-10-10 thought experiment. That is how will you think of this in 10 minutes, 10 hours, and then 10 years (or something like that)? With that let’s get to these numbers!

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 9/10/2021 column is the closing NW from the 8/31/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 9/10 column are the changes that I estimated on 8/31). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. Unfortunately this ten days had me buying more Bitcoin, per usual, just to see it dip as it seemed like it was building momentum.

Crystal Ball:

We’ve hit a big of a snag on some of these expenses and I anticipate them playing out over the next month. We just had to replace the piping going from the street to our house. We’re also going to need to pay some to get the roof repaired on one of the Michigan rentals… What a buzz kill. I am grateful that we’ve set aside money for these type of expenses.

NW/Learning Wins:

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:

Post 100

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It’s hard to believe this is my 100th blog post. What started out as an exercise of sorts has become a consistent journaling practice which has given me more confidence in making financial decisions, and an overall sense of greater agency. Whether this is reality I have no idea, but I’m liking it and I’d highly recommend it. I’d also like to thank the people that have engaged with me; I’ve found a lot of purpose talking through some of the obstacles you’re facing, and have become curious in many different areas.

For the big 100 I find myself a bit flabbergasted and questioning some of my numbers. I’ve become a bit transfixed on Zillow’s Zestimates. The Zestimate for my primary residence was much higher than what our house just appraised for. That puts a thorn in my plans, as I wanted to pull out a lot of cash. We may try to alter the lender’s view. We were unfortunately ripping up our pool liner when the appraiser was here so the backyard was in poor shape. Hopefully I can get them to move the value with updated pictures of the pool and taking a closer look at what homes they used for comparables. With that let’s get to the numbers!

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 8/31/2021 column is the closing NW from the 8/20/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 8/31 column are the changes that I estimated on 8/20). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior.

Crystal Ball:

NW/Learning Wins:

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:

Time to Derisk?

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You’re probably hearing more and more rumblings that this is in fact the everything bubble. If houses, stocks, and bonds are all overpriced what should I invest in? I’ve still been trying to get rental properties that cash flow today and ones I could see holding for a very long time. I am still acquiring Bitcoin and thinking of getting more gold to defend against something actually occurring to the US dollar. I’m also in the process of refinancing the house, pulling cash out, and trying to rent out the entire place. The cash I will use to open more overfunded whole life policies (infinite banking policies). I kind of see this as a deflation hedge and a place where I can fund different ventures I’m now becoming interested in, like renting out cars on Turo. With that, let’s get to the numbers!

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 8/20/2021 column is the closing NW from the 8/10/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 8/20 column are the changes that I estimated on 8/10). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. You’ll notice above and below the addition of Cash Value Whole Life Insurance. I’ll be using this as a vehicle to make private loans and borrow from in the future. I am in the process of opening more policies that give me much more access early on to the cash. Honestly this policy that I had opened doesn’t do a great job at accomplishing what I was looking for, but live and learn.

You’ll notice the addition of “Cash Value Whole Life Insurance”, which I think will become a significant source of wealth in the future. This was an idea I first heard listening to a podcast with Chris Naugle. We actually had him on the podcast a bit ago and will be releasing it soon, if you’re interested in another wealth builder.

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • Recorded our episode with Jacob Lund Fisker, for his book Early Retirement Extreme
  • Reading Black Swan by Nassim Nicholas Taleb, fantastic book so far

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:

Summertime Sadness

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There is a likely chance that my wife and I will relocate due to returning to the office becoming a real thing. While I’m slightly scared I’m also somewhat curious and eager to see what’s next, and see this as an opportunity to get closer to financial independence and to experience something new. We can always come back if we really don’t like it but to allow that option, at a relatively good price, we’re trying to rent out all of the house and get a property manager for the meantime. More info to come on this but let’s get to the numbers! Bitcoin continues to ball out and show its resilience.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 8/10/2021 column is the closing NW from the 7/31/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 8/10 column are the changes that I estimated on 7/31). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. Bitcoin has been outperforming my expectations by a lot recently. One thing that stuck out to me is that the gold/silver ratio continues to rise, since I’ve started keeping track (and historically this is high too). This could be once again a time to load up on silver:

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • Just finished Early Retirement Extreme (will post some outlines soon) and had our outline session with Jacob Lund Fisker for our upcoming Brothers on Books Podcast episode
  • Released the Layered Money episode of The Brothers on Books Podcast

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast
  • Rent car out on Turo

Notes:

End of July and Getting Ready to Buy

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I’ve started using one of my actuarial goal journals in a new endeavor. I’ll be using it for a real estate goal. My 15 week goal, that I started 18 days ago, is to make offers on 10 properties AND EACH offer having greater than or equal to $200/month in projected cashflow AND in 5 different areas. My last couple of days I’ve had mini goals of making connections in random areas and I’ve definitely made some connections. I’ve made calls to property managers in different cities in Utah, Idaho, Mississippi, Alabama, and Alaska so far. Obviously it’s tough to get a deal in this market but I will keep trying and being patient. Now that I’m a married man and the roommates are leaving I need to find a source to fill the missing revenue from the missing roommates. With that let’s see where the numbers are at.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 7/31/2021 column is the closing NW from the 7/20/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 7/31 column are the changes that I estimated on 7/20). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior. Bitcoin is popping up again really creating some ripples and it appears the Zillow Zestimates have been stagnating finally. Are we at the top for housing, finally?

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • I’ve given away four books to people interacting with me on LinkedIn and got 2 book sales out of the UK for 15 Weeks to Pass an Actuarial Exam (link below)
  • About to finish The Wim Hof Method and about to reread Early Retirement Extreme

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast

Notes:

A First Glimpse at Quantum RE

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I’ve been thinking lately about putting some of the recent added equity in my houses to use. What would be possible methods to unlock the built up equity in one’s home? These were the ways I could initially think of:

  • Refinance your house. For example if I still owe 240k but my house has gone up to 430k, and the bank is willing to lend me up to 80% of the value (.8*430k = 344k), I could refinance and get 344k – 240k = 104k cash now to put to work elsewhere. Albeit a result would be an increased or decreased mortgage payment depending on what I had originally had financed it at.
  • Apply for a home equity line of credit (HELOC). I’m unfortunately not as familiar with these and they seem kind of hard to get access to right now (I’ve been having trouble and am leaning towards a cash out refi), but essentially it’s a locked and loaded credit card, attached to the equity in one’s property. Using the above example maybe instead of refinancing I apply for a HELOC and get approved for 104k of credit. That would be the limit but I don’t have to use it right now. If in six months I find a great deal I could purchase the property then and make payments, just like one would on a credit card.

I was listening to Chris Naugle, who we just recently had on the podcast (not yet released), speak on one of his YouTube videos and he mentioned a new option, which didn’t involve additional debt. It’s through a company called Quantum RE.

I don’t want to state any hard insights/opinions as I’m just looking through it for the first time and still don’t know a soul that has actually used them, but I’ll summarize what I’m seeing so far. At a high level I understand it as they’re sharing in the potential appreciation/depreciation over the long term (seems like after 30 years you’d be contractually obligated to sell), and they’re paying for that right today, in cash and with no additional debt for the owner. Going into a contract with them doesn’t increase your mortgage payment one cent, as there’s no additional debt involved. Obviously if they’re willing to pay cash today for possible appreciation, as houses could go down (which it also seems like they share in potentially), they’re very bullish on the real estate market.

When I put in some numbers it shows the possible amount they’d send in cash for the right to share in future appreciation. What I don’t know is how much of the appreciation they take. An intro video mentioned 10-30 percent of the future appreciation they’d take, but I’m guessing I wouldn’t know until they underwrite the property.

There may be something here and an option to be further investigated. I am trying to think of the people this may be truly beneficial for:

  • Maybe someone who can’t qualify through traditional financing right now, maybe they lost their job but have a ton of equity locked into their home, but could use cash for living or another investment
  • Maybe you’re tired of dealing with traditional banks for a refinance and don’t want additional debt
  • Maybe you aren’t so bullish on the real estate market/your specific real estate market and want to diversify some of the risk into other opportunities

If anyone has used this service I’d be curious to hear your experience. I’m attaching a link to the website and interested to hear your thoughts.

Quantm Real Estate – QuantmRE

Don’t Just Focus… Question what Deserves Focus :)

byoscopeLeave a comment

I realize I was slightly lost in what I’m searching for. I’ve been tracking net worth because I thought that was what would translate into cash flow but if I’m not actually putting my money to work and getting cash flowing assets then I’m missing the mark. I do think it’s important to increase net worth but at the end of the day the goal should be to have my cash coming in > cash going out. I won’t stop tracking my net worth but I’m going to figure a good way to track the acquisition of cash producing assets and showing the cashflow for a given month.

10-day BS Refresh

Analysis Intelligence

The Opening NW in the 7/20/2021 column is the closing NW from the 7/10/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 7/20 column are the changes that I estimated on 7/10). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior.

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • Three book sales in last four days (three different countries)
  • Reading The Wim Hof Method

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well.
  • Tell one person per day about The Brothers on Books Podcast

Notes:

First Time Being Crushed by the Zestimate

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I’ve seen Zillow as a mighty good friend since I started recording these but this was the first time that Zillow did me dirty… The seven unit that we just purchased went down on Zillow. When I say down I don’t mean a little down but lost over 50% of its previous value. Now this could be a mistake as one of the other properties, in a less good neighborhood, went up about 50%. I keep reminding myself though that as long as the renters pay it doesn’t really matter because it’ll cashflow and we planned on holding this for a very long time.

Speaking of renters paying. The transition has gone a bit rougher than I would have liked/expected. The first three properties I purchased I did not reach out to any of the tenants and still have never spoken with them. The property manager has dealt with them the entire time, as he managed them for the prior owner. This time, for the seven unit, since there was going to be a transition from management I did elect to reach out and explain the situation to the tenants and who they’d be paying, and who to contact in case of a maintenance issue. I feel some of the tenants have used the transition as an excuse to not pay rent on time; four of the units as of now haven’t paid July rent. I’ll keep updates going on the transition and how we proceed. That being said, let’s get to the numbers 🙂

10-day BS Refresh

Analysis Intelligence

Like I said the Zillow Zestimate took a nose dive on the seven unit 🙁

The Opening NW in the 7/10/2021 column is the closing NW from the 6/30/2021 column. The green numbers represent estimated changes to my net worth in those categories (green numbers in 7/10 column are the changes that I estimated on 6/30). The white “Gain from” rows show how the actual numbers turned out compared to my original estimates, ten days prior.

Crystal Ball:

NW/Learning Wins:

  • I’ve made some money at my day job
  • 26 people have downloaded the free version of Make Better Bets the last three days (not too shabby, and link below)
  • We posted another episode of The Brothers on Books Podcast (Darwin’s Black Box is now on Apple and Google Podcasts and Man’s Search for Meaning is on Youtube)
  • Reading Naugle and Kesler’s book on borrowing from whole life insurance policies, Mapping out the Millionaire Mystery

Ideas for increasing NW/Learning

  • Revisit Tax Liens
  • Start analyzing how affiliate programs really work
  • Instead of relying solely on Amazon to sell my book I’m thinking to sell the books on my website as well. Should I just control the book sales in the same corporation as my real estate in Michigan?
  • Tell one person per day about The Brothers on Books Podcast

Notes: