Rental Properties:
We currently own two Florida properties that we intend to utilize for rental income streams. However depending on Market conditions, taxes, and upkeep costs we may decide to take out this Equity and invest the money in a better returning investment option. (Possibly Prosper.com)
Prosper.com:
Prosper.com:
Prosper.com is a Peer to Peer lending site, where you are the bank. When lending money you do not fund the entire amount of a loan but rather a small portion of the loan. You bid the amount you are willing to provide and a minimum return requirement. I placed a small $600.00 deposit into a Prosper Account in October of 2009 as a trial of the product, placing mainly the minimum $25.00 per loan. As each monthly payment is made on the 3-5 yr loans your portion of the monthly payment it is placed in your cash account. I have set this account to reinvest into a loan meeting my criteria automatically when the account has $25.00 in it. There have been some defaults and charge offs but I chose higher risk loans with an average note yield over 25%, my actual annualized return has been 13.47% which is not too shabby. In 27 months the current balance of this account is $816.52. There are lower risk loans, you can decide what bracket of risk you prefer.
While this Prosper account is a trial balloon, what I’ve learned is that one could feasibly expect a return of $12k per $100k investment annually. I will not be increasing this account value immediately, but when I do retire and do not wish to follow the Stock market any longer I will probably use Prosper to maintain a basic level of income.
While this Prosper account is a trial balloon, what I’ve learned is that one could feasibly expect a return of $12k per $100k investment annually. I will not be increasing this account value immediately, but when I do retire and do not wish to follow the Stock market any longer I will probably use Prosper to maintain a basic level of income.
Snapshot of my trial account:
Available to invest: $11.86
Performance Summary
Payments received: $1,034.06
Principal paid off: - $687.76
Payments in excess of principal: = $346.31
Principal charge-offs: - $134.39
Gain/loss to date: = $211.92
Stocks:
Performance Summary
Payments received: $1,034.06
Principal paid off: - $687.76
Payments in excess of principal: = $346.31
Principal charge-offs: - $134.39
Gain/loss to date: = $211.92
Stocks:
I am not a professional stock trader, and I have had my share of losses. I will share with you some of my current stocks in my portfolio and the reason I own them. I will update stock changes I may make as the months and years progress.
AGNC: American Capital Agency Corp
AGNC is a Real Estate Reit involved with Government secured Mortgages. As a Reit AGNC must return 90% of profits to share holders. AGNC is a dividend beast returning over 16%. AGNC is also expected to do well for the foreseeable future, but when/if interest rates go back up the stock could see a downturn in value and dividend yield.
AA: Alcoa
Alcoa a name known to most as a primary provider of Aluminum. AA was valued at $45 in June of 2008, now it is just over $10.00 a share. While I’m not suggesting it’ll be at $45.00 again soon, I do see a $20.00 value being realistic when the recovery progresses over 2012-2013.
CSTR: Coinstar
A bit of speculation here, Coinstar the owner of Redbox Kiosks used for DVD rentals has announced a partnership with Verizon to take on Netflix in the streaming movie market. Now that little CSTR with a Market cap of $1.8 Billion has a partner with a Market cap of $109 Billion, Redbox taking on Netflix looks very possible. The streaming venture is 35% Coinstar and 65% Verizon.
EC: Ecopetrol S.A. American Deposit
EC is a Columbian based Oil company providing Oil to South America and the US. With gas prices looking to reach $5.00 a gallon this summer and the oil flow from the Persian gulf in question, Oil outside of the Persian Gulf seems like a smart idea to invest in. If Obama tries to deflect criticism by demonizing American Oil companies and attacking their profits with taxes EC, would be safely outside of the US and Obama’s reach.
MUR: Murphy Oil
Murphy Oil is a producer of Oil in both Canada, and the US. MUR provides gas at most Wal Mart gas stations. With a problem with Supply and demand MUR could be poised for a nice up tick if there is an Oil crisis.
SLCA: US Sillica Holdings Inc
A recent IPO, SLCA produces and sells various commercial silica and industrial mineral products. The company provides commercial silica products to be used as fracturing sand in connection with oil and natural gas recovery; the manufacturers of architectural and solar glass. If the US wishes to recover more oil from existing wells, SLCA Silica will be in high demand.
JCI: Johnson Control Inc
JCI: Johnson Control Inc
What does JCI not do? JCI I involved with airplane cockpits, automotive technology, air conditioning and heating systems of all sizes, batteries, etc. When the recovery comes JCI should be catching the wave.
