• 12:07:03 am on April 27, 2009 | 5
    Tags: , , , ,

    MM101 Summary

    Monopoly by janet7r

    Photo credit: janet7r

    I hope that Mark actually bought some of that ‘prime HK land’ at those bargain Monopoly-comparison prices … it’s kind’a like the McDonald’s Index except that select HK property has probably skyrocketed in value compared to US since Mark was 5?!

    And, just look at the reason that Mark gives for not blindly putting your faith in Uncle Sam and his ‘retirement accounts’: “I … did not effectively apply [investment tools] to protect my portfolio. It could have prevented the sharp decline in my net worth the past year even though the tools are not available in my regular retirement accounts.

    Mark’s future looks to be in property investment (and some ‘business development activities that I, for one, am looking forward to hearing more about) … any suggestions?

    ______________________________

    We have been looking at our MM101 activities ranging from our housing, to our choice of transportation, retirement accounts, debts, income statements and net worth statements. These MM101 building blocks are definitely important for us to check if we have the habits and foundation to graduate to MM201. Looking at the various MM101 activities, I think I’m ready to transition into MM201 although there are still room for improvements. I do intend to reexamine these M101 activities in the near future to make sure I still abide by its rules.

    As for MM201, I’ve converted my former residence into a rental and also engaging an accountant to help with with some business development activities. My focus will be in real estate and hence the monopoly theme. I did not get to play the original monopoly until much later in life. I did play the Asian version called “Millionaire” when I was about 5. Instead of having British or American landmarks, it uses landmarks in Hong Kong and it cost a lot less ($0.50 vs $10-$15 or so after currency conversion). I did enjoy that game at a very young age and I hope I’m going to enjoy it in real life, sort of.

    Now, back to Adrian’s questions:

    1. What, if anything you will change in relation to your current financial situation?

    Looking back, I wish I spend more time on my investment activities. I’ve learned some of the investment tools but did not effectively apply it to protect my portfolio. It could have prevented the sharp decline in my net worth the past year even though the tools are not available in my regular retirement accounts.

    Anyway, looking at my current situation, I’m looking forward to kick off a few MM201 activities this year. I may not have immediate success but I hope to learn a lot from it.

    2. How / when you intend to go about it?
    3. What results you are hoping to achieve?

    I’m going to use my former residence as a rental and acquire some property management skills. I did learn how to look for reasonably priced contractors, how to market the property, the need to abide by local laws,  have the relevant paperwork for this activity and proper tenant screening. This will aid me in future property acquisition and how to select a good property management company.

    I’m also starting some business development activities with an accountant which I hope will result in a solid business plan in the area of my choosing and push me to execute it accordingly. I’ve learned that without the push, I’m not achieving much.

    4. If you haven’t specifically addressed debt in your response/s to 1. – 3. (above), what (if anything) you intend to do about your current debt?

    Since my debts are mostly mortgage related, I’ll be feeding the banks regularly on schedule.I don’t intend to pay off any mortgage but I do intend to sell my rental property in the near future and acquire another better performing property.

    5. What questions that you may have (if any), in relation to how you are (or should be) handling:

    MM201 activities will have a different set of rules and Adrian did throw in some examples in various posts including the analysis of the recent commercial property acquisition. I’m hoping to see more discussion on MM201 activities and try to understand what are the common problems and what strategies we can apply to address them.

     

Comments

  • Adrian 7:17 am on April 29, 2009 | #

    @ Mark – I for one would love to hear more about:

    a) the “business development activities” that you are starting?

    b) your accountants role in all of this?

  • Bluefoot 4:58 pm on May 2, 2009 | #

    @ Mark -I am interested in learning some of you resources for “how to look for reasonably priced contractors, how to market the property, the need to abide by local laws, have the relevant paperwork for this activity and proper tenant screening.” I have identified some great real estate deals in my area and now I am gun shy about what the next step would be. I have no experience in real estate, but don’t want to lose out on this opportunity. I guess this is the risky part of MM201. Great post!

  • Adrian 8:04 pm on May 2, 2009 | #

    @ Bluefoot – I would grab anything by Dave Lindahl (e.g. Multifamily Millions) … the books are primarily about apartments and condo’s but cover everything that you need to know about ANY residential … including most that you asked for.

    Mark may have some other resources, since he is actively looking?

  • Mark 3:09 pm on May 3, 2009 | #

    @Adrian – As for business development activities, I’m going to focus on Tax Lien investing this time. I figured that stocks and options trading on my end will be more difficult since I can’t watch the market. The accountant will help me established a business strategy and a business plan. He will be keeping me in check to make sure I make my business a priority.

    @Bluefoot – I did a lot of reading prior to converting my previous residence into a rental. The most important however, is some of the networking contacts that I’ve established. They are the main resource for all the steps I’ve taken. You will need to model successful real estate investors. Discuss and ask questions, most of them will provide you valuable information. They have walked the same path before and you will be able to avoid potential problems.

  • Bluefoot 6:21 pm on May 4, 2009 | #

    Thank you for the advice. I will pick up Multifamily Millions and get my contact list in order!


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