Rob K. Blake - The Insider

I wanted to update everyone on all the category in which Terri and I publish mortgage, real estate, and investing articles on our websites.  You can see a listing of the Categories below.  Just click over and peruse...

I promised a little tutorial on what I call "Landlording Gold" and rather that wait to get out a full blown e-course or downloadable ebook...I'm just going to start making some blog posts here and on my gold website, The Gold Insider.

Defining Landlording Gold

The easiest way I can describe the techniques for profiting in gold like a landlord profits from a rental home is this:

1.  
   1. You focus on cash-flow first...then appreciation....just like real estate.
   2. You use leverage...say 75% or so to maximize ROR...just like real estate.
   3. You pull your money off the table as soon as possible...play with OPM fast...just like real estate.

Let's look at one technique to Landlord Gold...I call it "Playin' The Open".

You'll see this week's 3 day spot price gold chart is below.  You'll see at 8:00 everyday when the US gets to trading gold...2 out of 3 days...a spike to the upside on the open...and on Friday the spike turned into an all day rally...a $67 move all the way to the closing bell. 

You only need one of these trades a month to pull a few thousand a month...make gold pay every month like a couple of long-term renters.

For example if you owned 100 ounces at $735 on the 19th...that's an investment of $73,500 of which you can leverage 75%...so you only need $18,375 or 25% down ... our brokerage will lend you the balance...just like in real estate.

Then watch it run to $801 and sell out...or just sell out your profit...and keep the remainder in the market just in case it goes to $900.

Either way, here's the profit...

80,100 - 73,500 = $6,600 profit in 3 days!  Of course, there are some expenses...(they'd average on a trade this size of about $100 for the week) just like in real estate ....but a $6500 net profit in under a week is pretty good.

Every month if you got just one opportunity...to pull $6600 and it cost a full $400 for the month...you'd still make out like a bandit.

Now factor in the leverage to get your cash-on-cash ROR.... $6500/18,375 = 35.37% and that's if it took all year instead of 1 week!

Do you have to watch the market to make this kind of money?  Sure. 

Do you have to watch your rentals to make money?  Sure.

Of course most of the time with this Landlording Gold technique you are in the market by 6 am....out by  10am.  You've got plenty of time to go mow the lawn of one of the rentals...lol.

Is it a guarantee you'll make money using my Landlording Gold techniques?  Nope.

Is it a guarantee youi'll make money buying another rental property this year? Nope.  Heck it's probably a gurantee you won't with the real estate makret we have right now.

That's it for Lesson One - Did it scare you?  Don't worry I started with the scary stuff first...the other methods I'll show you are less advanced...so stay tuned.

Go over to my Gold Insider blog...and read that too.

By for now,

Rob K. Blake 

I thought about a way to introduce an investment vehicle to real estate investor they may not know much about...I mentioned it briefly in my weekly commentary on the BiggerPockets blog this past weekend...GOLD!

The concept I've come up with is called "Landlording Gold"....I think it is pretty catchy.

More importantly it conveys the idea that investing in physical gold bullion can be correllated nicely with a mindset landlords already have...and a few key principals in that mindset sound like:

1. I want to invest in something "real"
2. I want to invest in something for the "long haul"
3. I want to invest in something that produces a good "cash-flow"
4. I want to invest in something I can understand and do on my own.

Does this sound like a few of the reasons you like rental real estate?

If so, you're going to love my "Landlording Gold" method for diversifying your investment mind-set without changing your investment mind-set.

I'll be post a link soon once I have the course completed....it will be free....so don't worry abou that...

In the mean time take a look at my new site...The Gold Insider....for some current happenings in the gold market...

Bye for now,

Rob K. Blake

I wanted to drop in a quick post to let everyone know I've started a blog at BiggerPockets to endulge my two real estate focused loves: finance and investing.

My BP blog will center on topics that have a mortgage angle and an investment angle...or at least I'll try.

I also want to show real estate investor there are other alternatives and sometimes the market dictates...so I'll be discussion investments like physical gold.  I'm going to start a series of post on gold investing soon...until then you can visit my gold site...The Gold Insider ..

I have a feeling all my post regardless of topic will be a little more technical in nature than what you'd find on my consumer mortgage blog, The Mortgage Insider or my ActiveRain blog.  I don't see real estate investors as consumers, but more as business owners, so a deeper look is warranted.

I look forward to hearing your feedback, so comment at will whether you agree or disagree with me.  Most likely I'll convince you in either event.

Sincerely,

Rob K. Blake,
The Mortgage Insider