June 2014

8 Jun

I’ve wanted to write this blog for a long time, but didn’t quite know how to go about it.  I think one reason people enjoy reading my blog is because I’m more open than most about my ventures.   Unfortunately, going forward that is going to change.  Our company entered into litigation with two companies in separate lawsuits where settlements were reached.  Agreements were signed not to disclose any details, nor to disparage or disrupt future business of the defending parties in any manner.  It would be impossible to illuminate the ups and down of business over the last year without really getting into those details, so for the most part I’ll be forced to write in vagaries and broad strokes.

As you might imagine, lawsuits are stressful and far from ideal.  2014 has been a rough year, the high stress has really taken a toll on me.

We are about a year from wrapping up the third and final asset pool and I’m just trying to stay focused and work as hard as I can until everything finished for our investors.  Thankfully, things are a little less stressful, now that the major litigation is settled.

People have asked me, what my plans after the third pool wraps up, and the answer is I really don’t know.  A lot will be determined on how the next year plays out, but I’m sure it will be some combination of poker and real estate.  I might stay in the NPN business, but it would be on a smaller scale.  I haven’t been actively looking to acquire assets, but my understanding is that most pools are going to hedge funds in the 50M+ range.  I do think there is a lot of value in the secondary markets, and I really think we are very good at extracting  value out of notes.  We will see how things play out.  Maybe I’ll give ice-cream truck driving another run – like Ali, coming out of retirement.

I am currently in the process of selling all my rentals.

29810 Greater Mack, St. Clair Shores – bought for 62,000, sold for 95,000.

22624 Mylls, St. Clair Shores – bought for 63,000, pending for 95,000.

23430 Allor, St. Clair Shores – bought for 30,000, 10,000 repairs, pending for 65,000.

23103 Avon, St Clair Shores – bought for 50,000, listed for 94,500 – no takers yet.

Overall, buying and renting houses was a great experience and something that I will surely do again.  The only suggestion I have is that renting property is not a “passive” investment.  If you want a passive investment, buy performing notes with good equity built in –  they yield good return and  are actually passive.  I have sold a few performing notes through my blog and at some point, I may sell a few more.  However, if you are down with a little extra effort, I’d highly recommend buying rentals.

Look for more blogs in the near future and thanks for reading as always.

 

 

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