LIVING OFF DIVIDENDS & PASSIVE INCOME

I recently purchased a new home in Salt Lake City for $210,000 including closing costs. I had $500 into the deal with the rest being financed. I lease-optioned the house and I cashflow neutral. After 5 months the tenant informed me that he’s exercising the option. His exercise price is $232,000. After closing costs I net just over $20,000. On my $500 investment, thats a phenomenal 4000% return. [Over 8000% annualized.]

Here lies the power of leveraging and the beauty of real estate. No other investment allows you to borrow 90-100% of the the amount required to purchase the asset.

Of course, through my contacts with builders I was able to buy the house at a slight discount to market and through my research I was able to pick a market that is rising even though prices are flattening out or decreasing in popular investment places like California, Nevada and Arizona. Who said making money was easy?

• Selling Covered Call Options Previously, I had talked about selling naked puts on a small mining stock. With one week to go the options are now worth only 5cents a share or about $25. I had sold them and pocketed $175. So it looks like they'll expire worthless and I'll get to keep my......
• Understanding Real Estate Market Cycles and How To Invest Based On Your Own Research A lot of people have been asking me how I do my research for places to invest in. Here's my attempt to explain the process. It started when I sold my home and was wondering where to invest the proceeds. I moved into a condo that had previously been a......
• Pulte Homes Offers A $99,000 Giveaway I guess times are tough in the Bay Area. Atleast for Pulte Homes who's giving away $99,000 incentives if you purchase a home and can close before December 24th, 2006.Some of the incentives include* Rolled back pricing* 100% financing* Free pool* No payments for 6 months* No closing costs* Free......

• Weakon 205: Mutual Funds, Introduction PF blog regulars have likely been met with "introduction to mutual fund" blog posts every couple of weeks. Its almost a right of passage for bloggers to write about as the mutual fund is generally accepted as the most important bucket your money will ever sit in. Wikipedia does a......
• Spooner Lake Cross Country Ski Area, Carson City, NV Spooner Lake Cross Country Ski Area is located in: Carson City, NV Phone: (775) 749-5349 Website: http://www.spoonerlake.com/ About the Resort: This is an incredible resort that spans more than 9000 acres. Whether you are brand new to cross country skiing or an old pro, this is probably the best place......
• Fair Tax:  The Pros and Cons First of all let's be clear, with a name like "fair tax" it's difficult to argue against it.  "Fair tax" is a term like "Change we can believe in."  What does it really mean?  Nothing.  Instead think of the Fair Tax as a tax on consumerism (Consumer Tax).  It is......

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