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Thursday, April 20, 2006

Cashflow Day

It's been a while since I wrote about this, but I'm still receiving checks from four LLCs I've invested in that buy and sell foreclosures in the Bay Area in California. I got another check today from one of them for just over $750. This brings the total return on my investment to 62.5% over 3.5 years, which works out to about 17.9% annually. Not bad.

One of my original goals was to get into six of these LLCs. I'm in four now, but am currently rethinking getting into another two, at least for the time being. The problem is, although I am buying and selling properties and making money that way, I do not currently have any that I am holding on to and renting. I'm missing out on some good tax breaks because of that (as I painfully discovered a couple weeks ago). So while I really like the hands-off investing approach these LLCs allow, I think I need to concentrate on getting some rental properties to hold on to, be they SFHs or apartments.

5 comments:

Steve said...

Good job, Shaun. You have your eggs in different baskets, providing multiple streams of income WHILE lessening your overall risk. Keep up the great work! BTW, I'm sure the 17%+ per annum you are making on those investments beats the heck out of the average stock trader's returns the last few years. :-)

Anonymous said...

Not to quibble with your impressive returns, but I believe that's actually about a 14.9% annual return.

1.1488 ^ 3.5 = 1.625

As always, the wonder of compound interest makes such calculations a little more complicated.

Still, much better than recent stock or bond market returns!

Shaun said...

Sorry, my ROI figure is correct. First off, this is not a compound interest situation. The returns are mailed to me every 6 months and therefore, are not reinvested (compounded). Second, the dollar figures I post here are slightly rounded. The percentages are accurate based on the actual amount I have received.

realestatemadman said...

Hi Shaun, thanks for your link to the Guidant Financial Group. I got my info packet today about self directed IRA's. I am forming an LLC that looks for, and contacts people in pre-foreclosure.Its tuff. I hope to open up another avenue of opprtunity with the IRA.

Tim MMF said...

That's nice to have money coming in from different investments. Congrats!

17+% is no joke.

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