Originally Posted by
Trip7
-Real Estate is horrendous right now. Folks are desperate to find a home at these low rates and are willing to pay nosebleed prices. Investment property is in a similar boat. Have you looked into Self Storage? That seems to be doing decent.
-short term trading is not my style. Like you suggested, daily fixations on charts does not sound fun. Lately have been reading 10ks and investor presentations learning about different businesses in sectors/countries that seem to have value. Lots of great deals out there, especially internationally. My best idea is BABA Deep ITM LEAPS(equity substitution). Alibaba seems deeply under valued and I have high conviction it will go up substantially so I levered up with LEAPS.
-I might be alittle old skool but I don't think Margin and Stocks are a good combination. Maybe for small bets on options here and there but not for dividend stocks. Margin works much better in Real Estate.
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Self storage is one of may favorite asset classes. I have more experience there than I do with the airlines. It started with one acquisition, then expansion, then development. Our latest project is a PUD that includes apartments, retail and self-storage. We're contributing the land, then partnering with a larger developer on the apartments. The retail portion of the land won't go anywhere for a few years. We may just get the self-storage development entitled and sell it off before construction. It's in a primary metro area and I prefer the secondary and tertiary markets so I'm not competing with the REITs.
The low interest rates at IBKR got me thinking about margining some stable dividend stocks. Borrowing at 1% to buy XOM or T for the dividend yield seems like a low risk way to generate some additional earnings. The primary source of equity for the margin is VOO, so it's 1:1 with the S&P in a downturn. I've run a few scenarios with different levels of market correction.
Looking for value is a wise move right now. I wish I had the patience to do the research.