Sunday, 1 March 2015

February 2015 Dividends , Options , Adsense and Interest Monthly Report

Steady dividend payers , Steady Apple options premiums as it it continues its upward movement,  Adsense steady and mildly improved , Interest on my margin is going down as I continue to pay it down. Pretty much business as usual.

Right now I am buying some time. I am working on buying a lot to build a new home. So far I have a lot secured but the trouble is financing. Mortgage brokers are making me jump through a few hoops to get it done. I will be pulling equity out of the rental home I just purchased for the lot. I will then try and pull some equity out of my home for the building costs. It is all a bit of a tight rope walk till I figure out the particulars. Will have a post soon on the details on why I am doing all this but I hate to count my chickens before they are hatched.

February 2015 Dividends Paid
        Monthly payers
 86.63  - HR.UN HR Reit
232.65 - AX.UN Artis Reit
177.32 - D.UN Dream Office Reit
133.34 - DRG.UN Dream Global Reit
 94.38 - REI.UN RioCan Reit
123.75 - RMM.UN Retrocom Reit
105.00 - BTB.UN BTB Reit
  80.50 - CPG Crescent Point Energy
 18.33 - SJR.B Shaw Communications
 25.70 - ENF Enbridge Income fund
 19.00 - CJR.B Corus Entertainment
 20.00 - BTE Baytex Energy
183.75 - CUF.UN Cominar Reit
   Quarterly Payers
141.00 - TD Toronto Dominion
105.00 - RY Royal Bank
 72.00 - BMO Bank of Montreal
 15.00 - COS Canadian Oil Sands
 52.83 - VZ Verizon
 37.74 - CLX Clorox
 30.60 - CL Colgate Palmolive
 63.11 - KMI Kinder Morgan
 82.25 - T AT&T
  8.63 - PFF Ishares US pref stock
282.00 - APPL Apple
35.40 - PG Proctor and Gamble

$2,225.91 - TOTAL

Total options premiums in February
 Options Notes -
- Playing Apple with selling puts.

Total interest paid for margin for February

Adsense for my blog in February 2015  $20.42
- 11,740 : Pageviews for February
- 15 : Number of ad clicks

2015 Running Dividend Total                 $4,372.32
2015 Running Interest Total                      $860.50
2015 Running Option premiums total   $5,774.92
2015 Running Adsense total                       $39.92

2015 Breakdown   Dividends     Options       Interest      Adsense 
- February              $2,225.91     $2,469.00     $343.29      $20.42
- January                $2,146.41     $3,305.92     $517.21      $19.50
TOTALS  2015      $4,372.32     $5,774.92     $860.50      $39.92

2014 Breakdown   Dividends     Options       Interest      Adsense
- December           $2,268.05       $657.49     $396.00        $16.17
- November          $2,182.56       $616.81      $501.82        $10.86
- October               $2,499.87    $2,167.48     $538.20
- September           $2,088.65    $1,518.76     $318.73
 - August                $1,482.38                           $87.79
 - July                     $1,239.74
 - June                       $608.62
 - May                       $531.13
TOTALS  2014       $13,291.20    $4,960.54   $1,842.54     $27.03

Saturday, 14 February 2015

$2,896,605 My Net Worth Update February 2015

My Net Worth Update Feburary 2015

    February 14 / 2015  : Updated every mid month


Home 2015 assessed value                                  total                 $1,253,000

-Equity Investments
Tax free saving account TFSA -                 $42,076
Retirement saving plan RSP -                  $145,343
Canadian margin account -                      $167,647
US margin account ( Ex Rate 1.2449)-    $204,848
margin available $212,649
                                                                   Equity   total:                 $559,914

-Commercial Rental Property
Warehouse 2300 sqft Income Property 2015 assessed value
                                                                               total:                 $319,000
 -Residential Rental Property
Rental Home 3200 sqft Income property 2015 assesed value
                                                                               total:                 $667,000
-Start Up Company
Brewery start up share value
                                                                               total:                   $85,000

Checking account                                        $2,559
Business account                                       $10,132
                                                                               total:                  $12,691


                         January 2015 Grand Total Net Worth:      $2,896,605

                                                Gain/loss from last month +$725,060

Jan.    2015  : $2,171,545 Details Link  +$44,214
Dec.   2014  : $2,127,331 Details Link  -$33,547
Nov.   2014  : $2,160,878 Details Link  + $49,867
Oct.     2014 : $2,111,011 Details Link  - $28,473
Sept.    2014 : $2,139,484 Details Link + $13,390
August 2014: $2,126,094 Details Link + $14,613
July    2014  : $2,111,481 Details Link  + $5,584
June    2014 : $2,105,897 Details Link   + $3,165
May    2014 : $2,102,732 Details Link

 In Summary-

 Big Month here with a huge increase to my Net Worth to a positive amount of $725,060. Wow!!!

Factors that have contributed to the increase:

The big one is plus $667,000 which is the the new home I purchased from my parents early inheritance. I am very grateful for the gift from them and will use it responsibility. I will not blow it on anything for myself like cars,  jewelry , presents  or vacations but rather to use it to further grow my investments.

The second big one is the strong 2015 so far in the markets and the weakening of the Canadian dollar compared to the US greenback. My account value in Canadian dollars surged from $505,508 last month to $559,914 this month for an increase of $54,406. My Reit stocks have rebounded greatly in this time as well as slight rebound in oil and a good run from my apple stock. Dividends and options premiums have also been strong this month which I likey.

In other news:
My brewery investment is starting to come together. We have our first big meeting tomorrow where all the investors are getting together for the first time and going to see the progress. Lots of the equipment have arrived and things are really moving. Spring is looking good for official launch.

I am also working on another house deal right now. I am just trying to figure out how much I can get financing for it before I move forward. I have a couple of options on it, ether just do small amount of work and flip it for a small gain or build a house on it for a larger payout. All depends on financing and rates at this point.

Also I have an update from my last POST where I have recently took in my nephew to come live with me full time. I got him a new look before school started. I got him a good haircut from my barber and for the first time he is using a bit of hair product in his 12 year old head. I also bought him a new wardrobe. I went into a youthful skater, surfer store and the girls working there helped us tremendously and transformed him into a hip looking young dude. He now has skinny jeans, joggers ( which I dont understand lol) Some kool t-shirts , hoodies , couple sweaters and a fresh pair of DC shoes. He was so excited he wore one whole outfit out of the store.

That night the school close to me called and said they had room for him and to start the next day in grade 7. The next day as we were walking to the school to get him all sorted a bunch of kids came up to him and said "Hey are you new? "Ya" "Awesome my name is Josh and these are my friends" After school when we picked him up he said he had the best day ever. He was beaming. He said he made lots of new friends and everyone was so incredibly nice to him. He was also in a bit of culture shock from being a minority in his old school where the kids would not speak English (90% Asian) to all the kids speaking English. I looked up the school rating from his old school and they were in the bottom 5% in the province ouch! This new public school is in the top 10% ranking of all schools which is great. I hope the next week he enjoys it as much as the first day.

I also made inquires to get him into Tae Kwon Doe and also Air Cadets. I think both are strong options for him to help mold him into a responsible, caring, self aware , confident man. I am really digging this cadet course as its free paid for by the government. What kid doesn't like learning how to use a rifle, go skiing and fly in small aircraft and gliders.

Stay tuned for more updates. Til then Grind On and Good Day!

Tuesday, 10 February 2015

Well I am a new father! But the kid is not mine!

Wow, so much going on in my life right now. I will start with the elephant in the room.

I am a new father of a twelve year old boy that is not my own. My wife's sister has struggled with drug addiction since she was 14. She has recently become quite withdrawn and our worst fears have come true. She is using heroin again daily and resorting to prostitution for money. She had an overdose recently and social services took away her child and allowed the child into our care.

Its a tough pill to swallow. The sister does not want help with her addiction and I personally think its her last ride. I feel bad for the kid. He is kind hearted and so far a week in listens to what we say. He has no confidence, no friends, socially awkward and no self worth. His mom lives hours away and he is getting homesick.

We are trying to do our best to make him feel comfortable, we gave him a big room to stay in he can call his own, we are trying to get him more physically active as he is a bit pudgy , we are cutting out his 3 cans a coke day habit and getting him on track by eating healthy whole foods and home cooked meals instead of fast food. I am going to take him shopping for some new clothes and a haircut before we get him in a new school. I was thinking of getting him into karate or tae kwon doe to teach him some respect for others, self respect and confidence. Scouts and cadets is also a possibility since he needs strong male support since his dad has never been in the picture.

I really think this is going to be a forever type of thing and I have to adjust for the future. I have the wife looking into financial assistance for this type of situation and programs like counseling and tutoring for the kid which he desperately needs.

I could have easily told the wifey I did not want him here at the house and send him off to his grandma , her other sisters family or even foster care but I believe this is the right thing to do since we are able too. Its hard for me to process everything right now but I will keep doing what I think is right and give this kid a chance at a good life.

I have always believed in saving for a rainy day and lucky I did. Being financially independent has provided me the opportunity to help many others. This just cements my long term outlook in grinding forward and living within our means. Yes I like the finer things in life like a shiny new Ferrari but it would be financially irresponsible and just selfish.

If anyone has some advice on this matter please suggest something to make the transition easier. My life has been turned upside down since.

In business news .

 I have my new rental sorted out to a family of five for $3600 a month which I am quite happy about. Also I have been looking into another house. Its basically a tear down home and the place is just lot value. I plan on building a home and flipping it for some good profits. Details will come soon in a post.

Saturday, 31 January 2015

January 2015 Dividends , Options , Adsense and Interest Monthly Report

 Another consistent month for dividend paying stocks. A few of my oil stocks have cut their dividends down but it is as expected and did not really make a dent.

Options activity really picked up. I am at my highest Premium month ever with over $3,300. This consisted of playing Apple puts. I sold weekly puts and they all expired worthless as Apple stock rose upwards. Just wished I played it even more lol, but nobody has a crystal ball and I should be happy for the premiums I received.

Interest paid out was a bit higher but it consisted of lat month when I borrowed 100k on margin to make an Apple stock flip for a couple thousand in profit.

Adsense activity is up a but from 2 good days primarily and pageviews are an improvement from last month.

December 2014 Dividends Paid
        Monthly payers
 86.63  - HR.UN HR Reit
232.65 - AX.UN Artis Reit
177.33 - D.UN Dream Office Reit
133.34 - DRG.UN Dream Global Reit
 94.36 - REI.UN RioCan Reit
123.75 - RMM.UN Retrocom Reit
105.00 - BTB.UN BTB Reit
  80.50 - CPG Crescent Point Energy
 18.33 - SJR.B Shaw Communications
 25.70 - ENF Enbridge Income fund
 18.17 - CJR.B Corus Entertainment
 20.00 - BTE Baytex Energy
   Quarterly Payers
  80.00 - T Telus Corp
  61.76 - RCI.B Rogers Communications
 30.00 - HSE Husky Energy
 22.50 - CNQ Canadian Nat Resources
135.85 - BCE BCE Inc.
 37.22 - AGU Agrium
113.30 - CIBC CIBC Bank
 66.00 - BNS Bank of Nova Scotia
 26.40 - TRP TransCanada
 41.16 - KMB Kimberly Clark
 41.27 - PEP Pepsico
 40.25 - GE General Electric
 32.27 - BAX Baxter
 40.80 - WMT Walmart
 36.90 - TOT Total SA ADR
 63.81 - PM Philip Morris
 38.56 - DOW Dow Chemical
122.60 - GSK GlaxoSmithKline

$2,146.41 - TOTAL

Total options premiums in December
 Options Notes -
- Playing Apple with selling puts aggressively before earnings, was easy money this month.

Total interest paid for margin for January

Adsense for my blog in December $19.50
- 12,321 : Pageviews for January
- 20 : Number of ad clicks

2015 Running Dividend Total                 $2,146.41
2015 Running Interest Total                      $517.21
2015 Running Option premiums total   $3,305.92
2015 Running Adsense total                        $19.50

2015 Breakdown   Dividends     Options       Interest      Adsense
- January                $2,146.41     $3,305.92     $517.21      $19.50

2014 Breakdown   Dividends     Options       Interest      Adsense
- December           $2,268.05       $657.49     $396.00        $16.17
- November          $2,182.56       $616.81      $501.82        $10.86
- October               $2,499.87    $2,167.48     $538.20
- September           $2,088.65     $1,518.76     $318.73
 - August                $1,482.38                           $87.79
 - July                     $1,239.74
 - June                       $608.62
 - May                       $531.13
TOTALS  2014       $13,291.20    $4,960.54   $1,842.54     $27.03

Monday, 26 January 2015

I just bought a house for 800k, My 7 easy home buying tips!

I have purchased numerous homes now in my life, more than ten in total. Here are my home buying tips and my latest deal details.

 My 7 Home Buying Tips

1. Secure Financing, Shop Around!

 Shop around! Don't just go into the bank you are currently banking with and call it a day. Get people to compete for your business. Go to multiple banks, credit unions and mortgage brokers to shop for rates. Don't be afraid to ask for a better rate. Get lenders to compete with each other. Show them your current lending offers.  Whats the worst thing that's gonna happen, they say NO? Who cares! Move on to the next person. Makes sure you do this within a two week span so it doesn't affect your credit score too much. Multiple inquires of your credit will only count as one credit pull if you do it within a short period of time pending where you are from.

2. Find and Interview Real Estate Agents!

 I have been visiting vast amount of open houses this past year and kind of interviewing the realtors in the process. See if you vibe with their business style. See if they understand the market. Ask them questions you already know the answer too to gauge their responses. I knew two agents personally but I did not like how they do business and they were not a good fit. So even though I got along with them I did not trust their real estate knowledge and judgement. I want a killer on my side. Someone that will fight for me and do as I say. You don't want a yes man and someone just looking after their own interests.

3. See The Entire Market!

Volume is key. See as much as you can. Cast a wide net.  Don't rely on the realtor to pick the listings. Get on his alert systems for their MLS. Even though my budget was 800k and only consisted of 3 local areas I cast my net from 600k-950k in about 7 areas. Reason so is the more I see , the more I can compare. Also see whats available above your range. You never know as there are often price drops or the higher priced properties can be negotiated into your price level. Also keep an eye on past listings sale prices, this will further guide you on current market levels and comparable listings. After a while of looking you will get a feel of prices and value. You wont get this information by just lurking on your computer. You have to hit the pavement and look for yourself. You cant gauge build quality, neigbors, shortfalls and neighborhood by pictures online.

4. Make The Lowball Offer!

Business is business! Don't make a emotional decision. Stick to your plan. After finding a few places you like its time to dig deeper. I often give a place a look 3-5 times before I decide to make an offer. Also inspect the neighborhood and at different times of day and night. Don't worry about inconveniencing your realtor. That is their job, make them work for their commission.

Fair market value for homes often differ from their asking price. That is why it is very important to gauge the markets past sales and current inventory for comparables. Often new listings are wrongly priced. At times new listing are under priced and are snatched up within days. Other times over priced listings will sit for a months without an offer and they then resort to price drops back down to fair market value.

Always start low and put it in writing. It shows you are serious if its in writing. Sellers that have a place listed for a couple months with no offers will welcome any offer. You never know what peoples circumstances are. Estate sales, divorce sales, job relocation are all great times to make a buy especially when sellers are desperate to get their money out. Make your offer attractive by keeping it clean and not too many stipulations especially financing.

5. Negotiate Hard!

It is your money, so don't let your realtor dictate how negotiations will go. Yes feelings will be hurt by realtors and sellers but this is business. I always start with a low ball offer in writing to gauge the seller. This is where your realtor has to do some work. Their job is too gauge how motivated the seller is and their bottom price. Play it cool. Let time pass. If you don't like their counter I often will put a low ball at 2-3 other places to gauge them out. Be firm with your offers and ready to walk. Don't sway from your initial plan and don't let your realtor take you up more than you are willing to pay. Remember this : In Real Estate you make your money from your purchase and not your sale. So don't overpay for a house and don't become emotionally attached to it. Be ready to walk away from a deal if its not want you want price wise. Its amazing how many times I have walked away from a deal and then the next day or two the sellers realtor will call back caving into my price demands.

6. The Inspection

Very important part in buying a new home which often gets overlooked. Whatever you do , DO NOT use a home inspector your realtor recommends. Realtors will often recommend home inspectors that are just YES men that wont jeopardize the deal. You cheat yourself out of a solid home inspection that way. My advice is to use an independent home inspector. Often called deal breakers because in essence they give you the real unbiased outlook of the home you are buying. You do not want them rushing through the house. So negotiate the amount of time ( 5 hour minimum for a home 2500 sqft plus) and the price days before the inspection. On the day make sure before they start on how long they will be there and areas of concern inspected. I recommend being there the entire time the home is being inspected itself. Make sure they bring their ladder as the roof and attic must be inspected. A good home inspector will give you a detailed report with pics of all areas of concern and a checklist of all good areas. I have walked away from several deals in the past when the home inspection turned out areas of concern. If the inspection turns up some red flags you have another bargaining chip in negotiations. You can try and get the sellers to fix the issues or offer even less money to get the work done yourself.

 7. The Close and Possession

Once you are satisfied with the inspection and no major issues arise it is time to remove subjects. If issues arise then you can try and further negotiate your buying price lower. Make sure everything in the contract is fulfilled. If you like a certain mirror , shelf , audio system ,wine rack make sure it is included in the deal! Also put a professional cleaning clause in the contract as often people will leave their place a mess upon leaving.

The details of my deal.

1. Secure financing

I was given an early inheritance to put toward a rental property with certain parameters. It had to be close by to me, within 20 years old, well built and something that could fetch solid rental income. It was an all cash deal so I did not need any financing.

2. Find a Real Estate Agent

 For a few months I have been going to all the open houses until I clicked with a realtor. Told him  my house criteria and my plan of seeing as much as I can and coming hard with offers. He said he was up for the challenge.

3. See the Market.

We hunted for 2 months and often seeing 4-5 homes a day mon to fri. Seen maybe 50-60 houses total before I narrowed it down to about 5 houses after seeing them 2-3 times each.

4. Make the Offer

After narrowing it down to 5 houses I took third and fourth visits at the 5 places. There was 2 houses I was quite keen on. I walked around the neighborhoods at different times in the night and timed my drives to various places.I was ready to put in the offer. I put an offer of 780k at my top place who were asking for 830k.

 5. Negotiations

Place 1
They held firm and came back at 825k. In my opinion the place was overlooked and well built and I had a true value of about 860k. I had no doubt the place that has been sitting for a month would sell for minimum in the spring for the 830k. I told them we are to far apart and I didn't even counter offer. The sellers played it off like they were about to expect another offer soon. I wanted to make them sweat. I then started looking at place number 2

Place 2
My realtor extracted information from the sellers realtor that they were motivated sellers due to a divorce. Christmas was rapidly approaching and winter time is notoriously slow in western Canada. So I kept my cool. I then put an offer on place number 2 which was a bit cheaper but further out of town. They were asking 799k and I came in at 710k. Place has been sitting for 3 months and was overpriced but it was a good home. It was also due for a price drop. I estimated the place was worth about 740k. They came back at 780k and I didn't counter offer. I left it like I did the first place.

Back to Place 1
After 10 days we are just before Xmas. Time to go back to the well. Turns out the sellers realtor has been frantic. He was trying to muster an offer from everyone that ever visited the house. We told them we are coming back a bit higher but firm. I put in mind my bottom price as 800k which I kept private from even my own realtor. I put in an offer at 790k cash deal close in a month. Sellers came back at 810k. I returned at 795k firm and final lol. They came back at 805k and said that was their final.

Lol almost there just 10k apart. They were not budging and I I didn't plan on coming back at 805k. I was ready to walk away. Told my realtor I am ready to walk away from it. He was disappointed that we came so close and he tried to get me up to the 805k. I told him quit being so emotional and nervous to get the deal done. I told him maybe if these guys meet halfway at 800K (my top price) I would consider it. He then called me 10 minutes later and told me its a no go. I said ok lets go back after place number 2 again and see how close we can get after the weekend passes.

Monday Morning my realtor calls. They caved! Place 1 for 800k is a deal but I have to remove subjects and close fast. I take the deal!  But just not yet until I review the offer and I add a couple of minor things in the contract like the extra fridge in the garage, Book shelf and a couple mirrors. LOL the sellers are livid with me. They say I am grinding them too hard. Why yes I am! This is business and my name is Asset Grinder!

6. The Inspection

So i only had a few days to remove subjects as Xmas is literally a few days away. I brought a deal breaker inspector I use that is from Vancouver which costs me $150 extra transportation for a total of $550 for a 6 hour inspection. We checked the place top to bottom and only very minor issues came up. Total repair costs $900. I tried to get that amount taken out of the contract but the sellers wouldn't budge. I told my realtor this is a problem. My realtor lets out a deep sigh and looks me dead in the eye and said "I will fucken pay it, lets get this place over with! I guess I owe him lunch. Maybe Denny's for his birthday! LOL.

7. The Close and Possession

I used a lawyer I know to deal with all the closing paperwork which cost about $900 which is the going rate. Got the keys yesterday and did a walk through with my realtor. everything was great except the seller forgot to leave one of the mirrors that were in the deal. My realtor let the other realtor know and within a hour the seller came by to drop it off. I congratulated him on the sold house and thanks for the deal. He didn't shake my extended hand and shoved the mirror in my hand and left grumbling.

So there you have it. Now its time to find a renter! As you can see I am not that fun to deal with but oh well its my money. I don't care about the sellers feelings or even my realtors because its his job.

My New Home Details 
5 min to downtown
Built in 2011
Arts and Crafts style 3 level semi custom home
3000 sqft home
5000 sqft lot

I have estimated future monthly rent to be between $3400-$3600 for a cap rate between 4.6 to 4.9% which is not bad. I think the place will have some decent capital appreciation and even more potential if I put 10-15k into the place to make a separate suite in the basement. It would fetch 880k easy if I were to do that. For now I will rent the place for a few years and see how the market goes. If anything it will be a solid income rental for years to come.

So what you guys think of the tips and my deal????