patatty's Net Worth for December 2018


Assets Value Change ($) Change (%)
Cash $189,986 ($2,610) (1.36%)
Stocks $5,280 $762 16.87%
Bonds $0 - -
Annuities $0 - -
Retirement $212,853 $2,001 0.95%
Home $0 - -
Other Real Estate $0 - -
Cars $17,500 - -
Personal Property $24,550 ($450) (1.80%)
Other $8,121 ($475) (5.53%)
$458,290 ($772) (0.17%)
 
Debts Value Change ($) Change (%)
Home Mortgage(s) $0 - -
Other Mortgage(s) $0 - -
Student Loans $0 - -
Credit Cards $0 - -
Car Loans $0 - -
Other $0 - -
Total Debts $0 - -
Net Worth $458,290 ($772) (0.17%)
*All values shown in USD ($)
Notes:
Had to put a large deposit down for new apartment we are moving to due to wife's new job across town. Hopefully this will be offset at least partially by the returned deposit for our current rental, but expecting to spend a few thousand on movers next month too. Fortunately, we have avoided most of this stock market correction because we moved to mostly cash in one of our retirement accounts and our after-tax investment accounts a while back in anticipation of the correction. Another self-directed IRA worth $125k was invested with a multi-family real estate syndicator. So, even though our net worth went down this month due to our move, it could have been much worse if we had more market exposure. Overall, we had a good year, with our net worth increasing over $90k. Hopefully 2019 will be another productive year, although I expect there will be more economic and political turmoil. The current plan is to remain in mostly cash and save as much as possible as a buffer against the turmoil and for buying assets at a discount. I expect that people who have cash available in the next one or two years will see great opportunities to buy at a discount.

Comments

3/15/2019 3:21:00 PM UTex08
Curious, how did you go about finding a real estate syndicator? I have a rental house from which I'm tired of dealing with tenants and would like to get into something more professionally managed.
3/20/2019 4:37:54 PM patatty
We've been using crowdstreet.com to invest with syndicators in real estate deals, but I think what you might be looking for is a property manager who would deal with the tenants on your behalf. Most syndicators would say that it's not worth it to own a single family house as a rental property because the overhead (time to manage it yourself, or $$ to pay someone to manage it) is too high. A property management company will charge 10% or more on the income to manage a single family home. On a multi-family deal, the property management fees can be lowered as a percentage of the rental income due to economies of scale. Another thing to note is that if your single tenant moves out, you have a 100% vacancy. For these reasons, some people would argue that you should sell your single family rental and move that money to a multi-family property that you own solely, or you should join up with a syndicator who is buying/managing a large multi-family property.
3/21/2019 5:18:33 PM UTex08
Yes, I'd like to move over to a multifamily type property through a syndicate as a passive investor. I'll look into crowdstreet. Thanks!