Paul Meyer Buys Houses

hundreds turned into millions of dollars

Apple Inc back at $228 and climbing – Obama Healthcare Bill signed into law – YES! Now I predict stocks can continue their uptrends without the “unknown”.

Ok Apple (AAPL @ $228) it’s about time. I’ve been in April 10′ 220 call options and have been watching this stock play around the 220’s driving me nuts because if I could commit to trading it full-time I could of been in and out many times for small profits. I suppose my option is probably still negative right now until it movies over $230’s in which it will likely run fast into the new iPad launch the first week of April 2010 in which I’ll sell my options at around a 25% profit (2 weeks, a bad trade). I’m psyched about the iPad. Many Apple geeks say “screw it” just because you can do everything on an iTouch or iPhone and put it in your pocket. For me though I’ve held out. I might even have to wait until the iPad 2.0 with a video camera built in so you can walk about doing skype/video conferencing anywhere. I like the touch screen and will likely just use it to show off my portfolio and use the Hitchcock application to practice creating a film.

I don’t even have my 2009 iMac anymore. I offered it towards collatoral + all my HD video gear to be a co-owner in (not live till June 2010) in which I’ll be doing media full-time and be an owner. I’m really stoked for the development of the company and it’s purpose because it is what I love doing right now which is helping small businesses in media and promotion. So even if I had an iPad I’d have to use my Art Institute school computers just to download the apps on it. I would definitely bypass the iTouch to get a larger more versatile iPad.

President Obama signing 2010 healthcare bill into law

As for President Obama’s healthcare bill finally signed into law I’m kind of glad the fighting is over and now we can focus on the economy (even though the $1 trillion cost will have a real affect if we don’t tax citizens (the rich) more to pay for it).
The new healthcare focuses on “preventive health” and that DOES MAKE SENSE. I’m just hoping as a person that doesn’t have healthcare that I’ll be able to get it affordably and be able to get the “preventive” things that keep us truly healthy and vibrant such as chiropractic care, acupuncture, yoga, green foods, and massage. If it won’t cover any of these “true preventitive” healthy living precautions then, well, that will just suck. If I’m going to have to pay high taxes as a broke student that is unemployed currently then at least give me some massage and acupuncture to take away some stress!
I’m glad Obama is the first black President (or should I say half black half white, does it even matter?) and made it his legacy to get healthcare for once and all changed. I thought the great former President Bill Clinton would get to do it. He’s my favorite. A man of the ladies while also being a great peacemaker. President Obama took a big risk in his presidency and I like risky people. He didn’t give up and now it’s a law passed, a super huge one. I suppose everyone better start investing in healthcare NOW because a lot of money will be funneled into healthcare from the government and then people working for the business. Just think about all the businesses that will get paid “no matter what”. This will create a lot of niche sectors currently profiting become likely gold mines in the stock market.


Hit my first stock target price prediction on Southwestern Energy Company (SWN) @ $41

SWN yesterday hit $41 and just today pulled back as typical, but definitely on a moving force. I believe the last time I spoke last week it was over $35.  What a great call option play, but I’ll have MY day and as long as I keep up with my numbers I should be more ready this fall.  It might just work out for me this time with the market poised to turn harder up with all of Fed. Bernanke’s talkin-the-talk, rumors being spread, some mediocre better numbers on economic reports, and stocks finally moving back up leaving their steeply discounted prices.  It bothers me a bit.  I admit it, I want to trade so bad.  I have to resist the powers and keep my promise to myself….man these months discipling myself not to trade have been hard.  I get these voices saying, “come on this one will work, you’ve been waiting for it, it will only be one trade…” I have to resist the evil within.  I’m sure it means fun and good intentions in it’s own evil mysterious universal ways but I need to stick to my big guns and keep them strapped in just a bit longer.

There will ALWAYs be trades in the future, big moves, small moves, and no moves.  Everyday the stock market goes up and down, sidways, and life goes on.  Today I’m a trader, tomorrow, and for the rest of my life.

I WILL MAKE LARGE PROFITS OFF YOU SWN, AAPL, NUE, GOOG, SPWR, FSLR, GME, and housing stocks your time is near!  You better be afraid market makers of this big Clint Eastword city slicker trader!  Be very afraid I will come back the Green Giant!

Other news on stocks – General Motors (GM) 1:100 reverse stock split.  What a joke.  NOW THATS A PUT OPTION PLAY!  This stock when it goes from $2 to $200 (your money cut in half) will start selling like girl scout cookies.  Oh, the put option on that baby will be one fat profit play mark my words.  ill do an update on it a few weeks after its split.  reverse stock splits are the worse.

Do you want to be part of my $300/month masterplan?

Here is an e-mail I wrote to my sister at Sunday January 27th at 4:19 A.M. tell me if this is brilliant or bust? I know as a group we’d have to create rules and regulations no doubt, but the idea I think could work.

-Sisters Name-,

Sisters Name-, I’ve been looking at the Austin tx real estate market and it is compared to Virginia beach 5 years ago. It has a hotter job market, bigger city, and better growing economy but the prices of homes haven’t jumped much yet. Imagine mom and dads home when I helped them get it was $129k. now its worth over $300k (and that’s a low estimate). I’ve found so many homes at $100-130k in Austin right now with same size, big yard, and 5-15 miles from downtown Austin (this city is actually building a light rail system to san Antonio, tx within 2 years). It seems rent on one of these homes is about $1000/month so you’d earn starting at $100/cashflow to pay for property management fee with a mortgage of $900. I just wanted to know if you’d really want to partner with me and start a real business. For what you are paying in Richmond you can get double in Austin, tx newer to an up and coming city. If you’ve read any economics millions of baby boomers are headed south to FL, TX, AZ, NM, NV.

Some of these homes are in foreclosures so we could still negotiate a deal and bring the price down. Companies like Dell and IBM are located here. Can you say that about Richmond? Or Virginia beach?

Here is another good buying point. The fed just cut interest rates .75pts and plan to do it again meaning mortgage rates are going to drop so buying homes continues meaning home prices are highly likely to move much higher again. So right now with home prices knocked down 10-15% is the time to buy even if you are long-term and want to hold. Your mentors should of taught you about equity in a home and using it meaning you buy a home for $100,000 and it goes up $40k in equity now you can extract that to use to buy more homes to increase your real estate business.

I really want to buy a home in Austin, tx. I have friends in the coast guard and network contacts that say great things about it especially the thriving music scene.

I’d be willing to split everything down 1/2 way rental income, equity, and future sale profit if in return you’d be willing to pay half of everything such as mortgage, repairs, taxes, and capital gain taxes on final sale.

How this will benefit you now and in your long-term future: lessens your risk, less capital to buy rental properties, builds your portfolio, and long-term selling a home 10 years from now it can create a large nestegg for retirement income that would otherwise not happen if you didn’t buy and hold. I’m also willing to go 1/2 way with you on any of YOUR deals in Richmond that your mentors help you find that break even or bring in a small cashflow that are low value and definitely going to appreciate over time.

Sisters Name-,. I need a partner. I do everything by myself and I crash a lot I don’t have outside help with decisions, I basically have limited communications, and limited capital. I’m not asking you to quit your job or your massage business or anything else. All I’m saying is that more people you have to work with the more capital you have and the more opportunities you can make like the game Cashflow. Also for instance having a co-signer getting a 5-5.5% loan is a huge difference from applying by yourself and getting a 6.5-8% loan.

I wish are family would work together. We could build an empire if we just worked as a team and stopped being duschbags. I fail a lot because no one cares. You are going to start learning yourself that if you don’t care about others it hurts business opportunities but when you care then people work together and get things accomplished.

Just think about it. If all 4 of us kids donated $300 a month to a Limited Liability business we put together such as a real estate trust we would have $1200/month to buy the first rental which could substitute a $1200/mortgage or two $600/mortgage (two small homes or two condo apartments). Now just say we only bought two properties and over 10 years with inflation these properties went from $80,000 to $200,000 because of they were nice location and buildings and appreciated in value. Now that’s $400,000 (2) sold divided by 4 people is $100,000 each (not subtracting capital gain tax).
Now we spent each $300/month for 10 years (120 months * $300) which means out of our pocket we spent investing $36,000 and after 10 years we earned $64,000 or almost a 200% ROI.

Now that isn’t the good part. The good part is that while the units are rented each $36,000 (*4) builds up to $144,000 or around $14,000 a year. If the rent already pays the mortgage then we will have $14,000 to buy at least another rental each year. So within 10 years we could easily have 10 rental homes appreciated at well over $1 million. Now that same $36,000 investment ROI can be worth $250,000 each in 10 years realistically that is almost a 600% ROI on your sacrificed $300/month share to the partnership of 4 people working together to achieve a goal. You will be 41 and can have possible $250,000 or more in the bank. (I say or more because I’m just saying 10 properties selling at $100,000 each with little appreciation).

Now do you understand why I wish when I send all my sisters business information they would listen to me? I’m reading the bible more now and all Jesus talks about is how people don’t believe and have little faith in him. I feel the same way. I don’t think any of you guys understand how many sacrifices I’ve made to achieve my goals, I think just for that you should have lots of faith in me. Like Gary Williams said when he was dirt poor he and his family had to sacrifice to get by and worked together to achieve their goal to prosperity.

Consider my $300/month off. I wouldn’t just say we are partners I’d do it legally. We would create a real limited liability company as a tax shelter and tax relief for the properties. A separate business bank account so you can keep tabs on the property, rental income deposited, repairs, and profits. $300/month is something I know I can do. I won’t struggle with $300. I think anyone can do $300/month.

The hard part is initial down payment and closing costs potentially $4000-15000 which we would build up by everyones $300/month buy in to the real estate company to make it happen.

Here is another good point to make. Listen in. Sisters Name-, and Sisters Name-, are both 1st time home buyers. This means the first two properties could be both $0 down with a 103 LTV loan. So that is two properties for $0 with $1200/month (4 people) paying down the mortgage/collecting rental income/appreciating in value.

If you think this email makes SENSE to you then forward it to monica and angela and talk to them on the phone about it seriously. I wouldn’t have control over anything just searching for properties just like you to bring up to our “conference call meeting” to discuss possible opportunities.

To show you how serious I am I’d be willing to share the profits of my current rental which would be about $25/cashflow per person with $60k equity to use in it ALREADY appreciated. That means I’m willing to share $15k profit in the sale of it RIGHT now with anyone who is interested in creating a real company with. I’m sharing $15k of my future capital gains with any future partner willing to sign up on the dotted line.

Please consider my offer.

I thought this was one of the best ideas I’ve ever come up with this early in the morning doing homes, search homes for sale, and studying stock charts. I’m sure there are some flaws but they could be easily fixed with rules and regulations within the limited liability company. I figured what happens if someone wants out? I suggest a rule that the person will be paid back their full investment plus a guaranteed percentage on their money of at least 4% a year of what a bank would pay on a savings account or there would be a time delay that you’d have to wait X amount of years before you could withdraw money. The entire point would be not to touch the money for 5-10 year rule to let homes appreciate and pay off mortgages. I think if you had 10 people joined in doing this with each have a 10% share this could be extremely realistic. I’ve heard Filipino communities do this raise money for families trying to start a business if they can not receive loans. Say 3 families chip in $500/month now thats $1500/month to work with and then each family is paid back their money plus interest or in a partnership of the business. If this $300/month is something you might be interested in doing but you have no one that wants to try it with you then do it with me! Currently I have one USCG co-worker who said yes to it so once I plan to get back to Hawaii I’m going to form an actual company so everyone legally understands the risks and rewards and also everyone would get a vote on which properties would be bought and sold. This is basically a 10 year plan but could be much shorter or longer depending on the markets and where the group of investors want to go. Say 10 investors build a $5 million portfolio over 10 years and now instead of selling the property since the mortgages are paid off they’d rather all collect a retirement income from the cashflow the rest of their lives pay their business tax and receive an actual income of a likely $2,500/month income EACH from rents collected if all mortgages were paid off from constantly putting in the pot $300/each or $3000/month (by 10 people).
On a $90,000 condo or small home within 3 years its mortgage could be paid off if the market was slow but rent was steady. So besides one of my friends of the 15 or so people I emailed it to no others have responded and I know the majority check their emails daily. So what’s up with that? Am I crazy? Is this just another bad idea or can this be achieved?