Saturday, February 1, 2014

Weekly Roundup - February 1, 2013

It's funny how the markets have their first down month since August and now the markets are going to collapse?  Despite how 2013 went, the markets don't normally go straight up.  I think what has really been surprising is the volatility so far to start the year off.  It's -200 point days for the DJIA, then +160, then -140, then +150, then -300.  When the volatility creeps back in, I get excited because that can lead to some great opportunities for long-term investors.  Unfortunately for me, this sell-off couldn't have come at a worse time.  There's always competing uses for capital, but I need to save up between $20-30k for a rental property if I want to take advantage of that opportunity, but it's been a while since we had some decent to good value propositions in the markets.  I've nibbled a bit here and there and sold a few options, which I hope to get a post up about soon.

It was an extremely busy week heading back to work.  Very little sleep so I had to catch up on it when I could.  I wasn't as active as I'd have like to have been with both my own blog and following all of the other wonderful blogs out there but things should hopefully settle back down now that we're up and running again.  I haven't written any more posts for Seeking Alpha yet, but that's in the plans for hopefully sometime next week.  I've got a lot of ideas for posts here as well as the normal monthly update posts so my mind keeps getting pulled in different directions.  I still can't believe that January is already over, and you know that February will fly by since it's even shorter.

I'd just like to say thank you to everyone that stopped by, commented, or shared a post from Passive-Income-Pursuit this past week.  I feel so blessed to be part of this wonderful community.

Now on to the links!

Three years, 440 posts, 12,494 comments and 2 million pageviews by Dividend Mantra

The Value of Books by Fast Weekly

What's your investment philosophy? by Financially Integrated

Why should I become a DIY investor? by The Dividend Guy

Warren Wednesday: 1960 by Pulling Ourselves Up Financially

Coca-Cola:  A wide moat dividend growth stock to buy and hold by Dividend Growth Investor

Dare to pursue the unconventional path by FI Fighter

The elephant in my portfolio by Retire Before Dad

Why dividend growth companies make the best investments by Dividend Growth Stock Investing

Buffet's Fourth Law of Motion:  Your Behavior by A Wealth of Common Sense

I hope you all have a great weekend and for those that are going to watch the Super Bowl, Broncos or Seahawks?

12 comments:

  1. Great list! I'm trying to learn more about generating passive income through dividend investing, so this is super helpful.

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    1. Cashville,

      I think dividend investing is one of easiest and most common sense approaches to investing in general and while searching for passive income. Glad you liked the links and feel free to browse around a bit more to find other useful posts. The stock valuation method series is pretty helpful if you want to get into the math behind the valuations.

      Thanks for stopping by!

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  2. Thanks for the mention JC. It does sound like a crazy week on your end. Don't worry about buying right now, there will always be pullbacks and corrections.....but you've set a goal to get a down payment together and diversify into residential rentals. That's more than worth this short term pain. I owe you an email this afternoon. Take care
    -Bryan

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    1. Bryan,

      Crazy crazy week but everything's settled back in for a week or so before I get to head back home and start it all over again. I need to stop making moves in my portfolio because I found 2 rental properties that I'm interested in. I think rentals can provide great diversification for passive income. I think it's time to open up another savings account to keep my down-payment money in an account that isn't linked to my brokerage account. ;)

      Thanks for stopping by!

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  3. PIP – Take it for someone who knows, owning rental property certainly has its share of headaches. My wife and I bought a condo in Phoenix in 2011 strictly for investment purposes, as we rent it out on a year-long lease. Dealing with the IRS (particularly as Cdn residents) is hard enough, and throw in a property manager who is borderline incompetent and there are times I want to scream. That being said, it has turned out to be an excellent investment, allowing us to diversify while the renters pay off the mortgage. There will be plenty of nay-sayers (as with any investment) who poo-poo real estate investing, but I think if you stay the course you will look back and be glad you did it. Good luck!

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    1. DoD,

      If you're going the property manager route then finding the right company to manage is key. There's definitely some that can offer cheaper prices but they skimp on the service. It's kind of like paying for KO or JNJ at 18-20 PE, you just have to pay up for quality sometimes.

      I've found a few options that the numbers work pretty well on. One is a turnkey so it should be completely ready to go and rehabbed. The other would possibly be a bit more work to initially make the numbers work out well. Both of them can offer pretty solid cash on cash returns so I'm excited about possibly moving forward on one of these. If anything I can always get out of it in a few years if it's either too much work or just not what I expected.

      Thanks for stopping by!

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  4. Pursuit,

    Thanks for the mention!

    Best of luck to you if you decide to add a rental property to the mix. That would certainly be a great way to diversify. I've never been interested in being a landlord, so for me I prefer REITs.

    I hope you get some downtime! Enjoy your weekend.

    Best wishes.

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    1. DM,

      No problem. I'm not really looking into being a landlord because that can be a full-time job in itself. I'm looking more towards having a property management company handle everything so it's similar to REIT investing. While you lose out on diversification, you gain in yield. But if I can find the right property at the right price, the numbers can work out great, essentially 10%+ yields. Now that's what I'm talking about.

      Thanks for stopping by and have a great weekend!

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  5. Thanks for the mention! Hope work will slow down soon, and I'm looking forward to reading your articles on SA.

    Best of luck on that rental. It can be difficult trying to allocate capital into different investments competing with each other. I remember when I was struggling with that very thing this time last year. Diversification into both stocks and rentals sounds like a winning strategy though. Both types are proven investments that have made tons of people wealthy. My guess is you'll be another successful datapoint.

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    1. FI,

      I hope work will slow down but I also don't as that's fuel for my FI. It's a shame how much more money I make whenever I'm at work but it's what's giving me this opportunity right now.

      It really is hard trying to decide what's the best place to put the capital to work. I'm serious about needing to get the downpayment in a savings account that isn't linked to my brokerage account and I'm working on getting that done right now. The temptation is there if I can just click transfer and immediately get that money to work in the markets. If I have to wait 2-3 days before that money will be available then it's a bigger hurdle to make me transfer the money.

      I think rentals are a great source of diversification and passive income. Even on their own it's a proven strategy. The property we discussed looks pretty interesting. There's also a straight turnkey situation that I'm looking at. I hope to be another great datapoint although you're already there and proof that it can work.

      Thanks for all the help and for stopping by!

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