Ryan the Realtor is an Excitable Boy — Daniel Solin Book Calms Him Down

Late spring I read somewhere Dunkin’ Donuts may go public. My pulse sky-rocketed as I considered moving ALL of my mutual fund monies over to the little mustached-man who mutters “Time to make the donuts.”

Why not? In the microcosm of Mt. Washington Valley there are 5 Dunkin’ Donuts franchises each doing very well. Is there an airport in the U.S.A without a Dunkin’ Donuts? Why couldn’t my money grow on par with the manufactured, artificially flavored, ten-year-shelf-life-donuts that are trucked daily to empty calorie outposts we Americans keep funding? (I’ll avoid the social and U.S diet commentary at this time, this is about economics). This would have been a DUMB INVESTOR MOVE.

I read a book collecting dust on my bed stand that allowed me to decide against moving my mutual funds. In this book I learned that over the long haul, “hyperactive trading” will simply cost me more money in transaction fees, bad stock selection, and neither I nor anyone else will beat market returns of stock and bond investments centered around broad market index funds — sorry brokers, history is against you.

Daniel Solin provides compelling argument and data in his book The Smartest Investment Book You’ll Ever Read that just may allow you to extract yourself from your broker and invest your smart money intelligently and on your own. Solin encourages taking these simple steps below so when retirement approaches you’ll have security and the ability to purchase that retirement home you’ve dreamed of in Mt. Washington Valley:

Step 1: Determine Your Asset Allocation (Solin chapters 37, 38, 39)

Stocks historically yield the highest returns but the greatest risk

Bonds significantly lower returns but lower risk

Cash short term, highly liquid investments but essentially risk free

[Solin recommends a too simple but often useful formula is to subtract your age from 100. This       represents your allocation split for stocks and bonds, i.e my formula equals 100-35 years = 65% stocks / 35% bonds and cash for Ryan the Realtor]

Step 2: Open an Account with Fidelity or Vanguard Fund Families

Fidelity and Vanguard provide the lowest annual fees attached to index funds, i.e the
S&P 500. Each firm also has individual forms that allow you to roll over 401K, 403B, IRA’s, and Roth IRA’s.

Step 3: Select Your Investments

“All we know about the stock and bond markets is that over time both will go up in value…Therefore investors should own the entire market. By ‘the entire market,’ I mean a broadly diversified portfolio of investments in domestic and international markets” (Solin, 121 -122).

Example of Four Vanguard Model Portfolios below:

Step 4: Rebalance Your Portfolio

This should happen twice a year and take 45 minutes per session according to Solin. Reasons for rebalancing could be the result of life changing events, a need to become more conservative or aggressive, or a limit on monies contributed.

There are two ways to balance your portfolio: buy more of the assets needed to hit your percentage mark, or sell some of the assets that are over represented.

Wrapping Up: Ryan the Realtor is not an accountant or stock market adviser by any means, but rather an individual who works to become educated and self-reliant in financial matters, for his family and for his clients.

Ryan’s upcoming research — a comparison between stock market and real estate investment during one’s working life. Stay tuned and email Ryan@JtRealty.com if you would like to register for his bi-monthly newsletters.

Always wanted to invest in real estate, but don’t know where to begin? This is the perfect property to start with…

Your tenants will love living on the water, skating on the pond in the winter, sitting on their private deck enjoying the views while BBQing, and being able to walk to Conway Village and its restaurants, the library, Conway Elementary and Kennett Middle school. You will love earning passive income by renting out both of the units and gaining equity in the property as the market stabilizes and prices begin to rise in a few years.

I took my kayak over there yesterday to take some photos of the house from the pond and the reflection of the clouds in the water was so stunning I couldn’t resist taking a few pictures. It is hard to imagine that you can find such peace, tranquility and beauty right in the heart Conway Village!

We would be more than happy to provide you with a broker’s projection sheet, and if you are a first-time landlord we can give you lots of great advice on tenant applications, qualifications, and leases. Send Joy an email with any questions you have about this listing or how to get started investing in real estate. Joy invests in local real estate herself and is always eager to help people do the same. To see all of the other multi-family properties on the market in the Mount Washington Valley click here.

Just reduced to $199,900 this is a fantastic investment opportunity for you

So you’ve been thinking that this is a good time to invest in income property, but you don’t know where to start. I felt that way once, so I bought the only multi-family building I could afford … $26,000! The neighborhood was a little iffy, so my visits were always in broad daylight, and I walked fast to and from my car. But I instinctively knew how to get and keep good tenants, as I had been one for several years. I sold the property just 18 months later, for $52,000 after investing $5,000 in a new roof, and $2,100 in repairs and cosmetic upgrades. These are my main rules:

1.    Care about your tenants … fix every problem promptly and communicate your progress.

2.    Keep the relationship businesslike and nicely and firmly enforce the terms of the lease. If you allow them to be late with the rent and don’t charge the late fee, guess what … they’ll be late again the next month. Just like kids, they need consistency in the relationship.

3.    Take a 12 month lease (or longer) and require 45 days notice to renew at the end. If you live in a 4-season climate like I do, never let a lease expire in December, January, or February. The last thing you need is an empty house or apartment and huge heating bills! Or worse – frozen pipes.

A few years ago I helped a local businesswoman buy her first investment real estate, a rental house. It was cute, in a quiet neighborhood in Bartlett (low taxes), and had lots of potential with just some cosmetic improvements. She threw some paint and landscaping at it, and has kept it rented ever since. I think it was her success with this real estate investment that gave her the confidence to buy a commercial building last year, and expand her business. But you have to start somewhere.

Yes – I gave her the tools … my awesome lease form, tried and true rental application form, tenant checklist, and vendor recommendation for credit checks. But the sweat equity was hers. She has been referring clients to me ever since. “I thank Joy for taking the extra time and consideration to help launch me into real estate investing.” Michelle, it was my pleasure.

In October last year, seeing a great investment real estate opportunity, I bought a darling rental house, with seller financing at 5%, and a more than 4.5% return in the first year. I love real estate!

Joy