Knight Investor on Social Media

Happy July 4th to all!

I am happy to announce that Knight Investor is now on Facebook (@TheKnightInvestor) and Twitter (@Knight_Investor). Follow us to stay apprised of our latest articles. I would love to interact with our audience more and have give-aways in the future.

Thanks for your continued readership and support! I am working on a stock analysis for Foot Locker (FL) this week. I would love to hear your thoughts on FL as a consumer or investor. I am trying to evaluate the threat of direct online sales and Amazon. Feel free to leave a comment on your thoughts!

Buy-and-Hold Real Estate Investment

After a long wait, I am happy to finally share the cliff-noted story of my first home investment! As a little background, for many months I looked for high-netting properties (10%+ CAP rate) in the Midwest via a site called LoopNet.com. LoopNet is basically Zillow for commercial real estate. In addition to standard commercial real estate, they also list multi-family dwellings – which is what I was looking for. My strategy was buy-and-hold or, in other words, I wanted to earn rental income without any plans to sell the property. With this strategy in mind, I mainly concerned myself with the cash flow financials on the property instead of its potential to appreciate in value. Continue reading

Tumbleweed Tiny House Company: Update

As a follow-up to my original article, I wanted to post a quick update on what took place after with Tumbleweed Tiny House Company. The day after I filed the BBB complaint and posted the article, I received an apology email from their Director of Sales (the first communication she ever sent me). It was a nice apology, but they still would not provide me with any timeframe on when I could expect a refund. I emailed her back to ask and she still didn’t respond. Continue reading

Tumbleweed Tiny House Company

I am still waiting for some additional repairs to be completed in my rental property from last year before I talk about the financials of that investment. However,  there is another investment that I would like to talk about. Early in this year, perhaps chewing off too much, I also explored an investment in a tiny home hotel in Austin, Texas through Tumbleweed Tiny House Company. The model is that Tumbleweed builds a custom tiny home for you as an investment and you are guaranteed with a lease from a separate lessor. That lessor also manages the property as a vacation rental. The numbers seemed very promising in their pro-forma so I went down the road of trying to buy a home. If you are ready for a cautionary tale, here’s what happened (quoted from my BBB complaint)…. Continue reading

Knight Investor Returns!

Happy Easter everyone!

Firstly, I owe a big apology to blog readers for being MIA for so long. In August I advised I was going to focus on making a real estate deal happen, which it did! In December I closed on a triplex rental property. I have been wanting to do a post breaking down the costs and expected return on this house. I will do this, however unfortunately there were some unforeseen repairs I needed to make to the house to bring it up to code. I should have it all worked out in the next 2-3 weeks and I wanted to wait until that point to make a post on the property. That way, when I do make the post, you can see some semi-final numbers and I should have a solid ROI worked out.

Thanks for tuning in and I hope to share the details on my real estate deal in the coming weeks!

Apple’s Undervaluation Brought To Light After 2016 Q3 Earnings

Apple (AAPL) announced its third quarter (Q3) results on Tuesday and largely beat expectations. Some key points:

  • Quarterly Revenue: $42.4 billion (beat by $310 million)
  • Quarterly Net Income $7.8 billion
  • Diluted Quarterly EPS: $1.42 (beat by $.04)
  • Gross Margin: 38%
  • $.57/share dividend declared (yield is currently 2.34%)
  • Service revenue grew 19% year-over-year. It now represents 11% of Apple’s revenue (up from 8%).

A flood of positive sentiment and articles came out almost immediately after Apple’s earnings release. Apple stock closed up 6.5% yesterday, which is great because I think the company is undervalued. That said, I initially thought the market reaction was abnormally bullish based on Apple’s only moderate beats, in my opinion. In reality, the beat was simply a wake up call to bearish investors who had allowed a temporary decline in Apple’s growth to rule the stock price.

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Opening a Brokerage Account

Before you can start buying stocks, you need to open a brokerage account. For some, that concept may sound foreign or complex – but it’s not and today I am going to discuss how to get started. There are two core ways to invest your money: self-directed or managed. When I say self-directed, I mean that you have 100% control over your brokerage account. You choose the stocks/bonds/etc. to invest in yourself. Managed money is when you have a professional broker or robo-advisor choose your investments for you. Your investment portfolio becomes hands-off. We’ll talk about managed money and robo-advisors more in a future article. Continue reading

Managing and Budgeting Your Money in the Digital Age

In my emergency fund article last week, I referenced the greek phrase know thyself mostly in context. Well to expand our conception of Greek philosophical sayings, I now declare that to truly know thyself you must also know thy finances. Luckily we are living in 2016 and understanding your financial position has never been easier. You don’t need to be an accountant or financial advisor to understand the basics of where you are at financially. And that’s a good thing because understanding your finances is absolutely necessary to budget, save, and spend your money appropriately.

Continue reading