Comments on: Residential Planning http://7m7y.com/2009/01/27/residential-planning/ Learn how to make $7 million in 7 years ... a NEW guided learning experience. Join now! Tue, 01 May 2012 03:11:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Adrian http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1298 Adrian Thu, 29 Jan 2009 07:14:14 +0000 http://7m7y.com/?p=1368#comment-1298 @ Josh - If pushed, I would say that it depends on your clients' expected investing time frame: for example if measured in 'trades' then 200 consecutive trades might be enough; if in 'days' then 200 consecutive days; if in 'years' then you might need 20 trades over 10 years. I'm not sure which of these can be regarded as statistically valid, but I always thought that 200 data samples would generally be enough ... ... say, aren't YOU the MBA-In-Training?! Why don't you research it and tell us! :) @ Josh – If pushed, I would say that it depends on your clients’ expected investing time frame: for example if measured in ‘trades’ then 200 consecutive trades might be enough; if in ‘days’ then 200 consecutive days; if in ‘years’ then you might need 20 trades over 10 years.

I’m not sure which of these can be regarded as statistically valid, but I always thought that 200 data samples would generally be enough …

… say, aren’t YOU the MBA-In-Training?! Why don’t you research it and tell us! :)

]]> By: Josh http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1297 Josh Thu, 29 Jan 2009 03:57:24 +0000 http://7m7y.com/?p=1368#comment-1297 These days, people are just scared in general, the Madoff scandal just puts the cherry on top. Some portion of the high returns could be attributed to the small investing capital. If it were 500 Mil istead of 5000, things might be different. Also for reference, what would you consider to be "statistically valid"? These days, people are just scared in general, the Madoff scandal just puts the cherry on top.
Some portion of the high returns could be attributed to the small investing capital. If it were 500 Mil istead of 5000, things might be different.
Also for reference, what would you consider to be “statistically valid”?

]]> By: Adrian http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1311 Adrian Thu, 29 Jan 2009 01:45:41 +0000 http://7m7y.com/?p=1368#comment-1311 @ Josh - The Good News: 1. 70%+ every 4 - 5 months gets you to your target on the back of your own investment performance pretty quickly, and 2. None of us can invest until AFTER you reach the 7 year milestone and remember us 'little guys' from your 80 sq. 'beach house' in the Caymans The Bad News: 3. It's not a 'statistically valid track record' ... yet ;) 4. Investors (outside, not family ... they'll just be plain scared) - in the current market - will actually be scared off by such high quoted returns: http://topics.nytimes.com/top/reference/timestopics/subjects/f/frauds_and_swindling/ponzi_schemes/index.html?scp=1-spot&sq=ponzi&st=cse @ Josh – The Good News:

1. 70%+ every 4 – 5 months gets you to your target on the back of your own investment performance pretty quickly, and

2. None of us can invest until AFTER you reach the 7 year milestone and remember us ‘little guys’ from your 80 sq. ‘beach house’ in the Caymans

The Bad News:

3. It’s not a ‘statistically valid track record’ … yet ;)

4. Investors (outside, not family … they’ll just be plain scared) – in the current market – will actually be scared off by such high quoted returns:

http://topics.nytimes.com/top/reference/timestopics/subjects/f/frauds_and_swindling/ponzi_schemes/index.html?scp=1-spot&sq=ponzi&st=cse

]]> By: Josh http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1310 Josh Thu, 29 Jan 2009 01:08:12 +0000 http://7m7y.com/?p=1368#comment-1310 Thanks Jeff, unfortunately, if your reading this, your excluded from the potential investor pool. Thanks Jeff, unfortunately, if your reading this, your excluded from the potential investor pool.

]]> By: Jeff http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1309 Jeff Thu, 29 Jan 2009 00:11:04 +0000 http://7m7y.com/?p=1368#comment-1309 70% huh? Hmmm.... Adrian is it against the rules to invest in Josh's hedge fund? I think I know the answer. :-) Awesome job Josh. Keep up results like that and you'll go far, without a doubt. 70% huh? Hmmm….

Adrian is it against the rules to invest in Josh’s hedge fund?

I think I know the answer. :-)

Awesome job Josh. Keep up results like that and you’ll go far, without a doubt.

]]> By: Josh http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1308 Josh Wed, 28 Jan 2009 23:14:25 +0000 http://7m7y.com/?p=1368#comment-1308 Very true. It always comes down to performance and whether I can deliver or not. Using my current strategy, I've been able to realize a 70%+ return for the past 4-5 months. Although I find my biggest errors are not staying in long enough and not investing as much as I should. Usually my error in being to careful. Some chores on my "to do list" is wright a prospectus, and build a web site. The main reason I'm planning to do this is to "officially" build some sort of track record. The people I plan on asking to be a part of it are family and close friends and I anticipate them agreeing to participate based on our relationship, not necessarily because they believe I'm going to succeed, although I have no doubt I'm going to be successful. So I'm basically using them so I can plot a real track record. Very true. It always comes down to performance and whether I can deliver or not.
Using my current strategy, I’ve been able to realize a 70%+ return for the past 4-5 months. Although I find my biggest errors are not staying in long enough and not investing as much as I should. Usually my error in being to careful.
Some chores on my “to do list” is wright a prospectus, and build a web site.
The main reason I’m planning to do this is to “officially” build some sort of track record. The people I plan on asking to be a part of it are family and close friends and I anticipate them agreeing to participate based on our relationship, not necessarily because they believe I’m going to succeed, although I have no doubt I’m going to be successful.
So I’m basically using them so I can plot a real track record.

]]> By: Adrian http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1307 Adrian Wed, 28 Jan 2009 21:57:30 +0000 http://7m7y.com/?p=1368#comment-1307 @ Josh - it more depends on what your 'limited partners' think! I would be more comfortable looking for investors, if I could first show a statistically valid track record with my own funds ... do you currently have just an idea or is it already a 'proven' business model? On the other hand, many a great business has launched on the back of Friends, Family, Fools ... :P @ Josh – it more depends on what your ‘limited partners’ think!

I would be more comfortable looking for investors, if I could first show a statistically valid track record with my own funds … do you currently have just an idea or is it already a ‘proven’ business model?

On the other hand, many a great business has launched on the back of Friends, Family, Fools … :P

]]> By: Josh http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1306 Josh Wed, 28 Jan 2009 17:24:35 +0000 http://7m7y.com/?p=1368#comment-1306 @ Adrian - Thanks for the idea. There isn't really any interest in giving the apartment to me, although I think I have worked out an agreement with my grandmother where she's going to pay me 100$ a month for managing it. I have been considering the equity fund and plan to meet with an attorney to explore some options. Just from my own research, I think a Limited Partnership would be the way to go, with close family and friends working as the passive partners. Then throw the money into a brokerage account, while taking advantage of margin, and I may have a nice chunk to invest. I would organize it with the standard distribution rates of hedge funds, taking 20% of profits after 3% increase and charging 1% of total equity per year. What do you think? @ Adrian – Thanks for the idea. There isn’t really any interest in giving the apartment to me, although I think I have worked out an agreement with my grandmother where she’s going to pay me 100$ a month for managing it.
I have been considering the equity fund and plan to meet with an attorney to explore some options. Just from my own research, I think a Limited Partnership would be the way to go, with close family and friends working as the passive partners. Then throw the money into a brokerage account, while taking advantage of margin, and I may have a nice chunk to invest. I would organize it with the standard distribution rates of hedge funds, taking 20% of profits after 3% increase and charging 1% of total equity per year.
What do you think?

]]> By: Adrian http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1305 Adrian Wed, 28 Jan 2009 06:30:49 +0000 http://7m7y.com/?p=1368#comment-1305 @ Josh - yes, your grandmother (via you!) is executing a sound MM301 strategy ... ... perhaps your parents will decide - when the time comes - if they should do the same, or perhaps withdraw 50% of the equity and buy another ... small steps :) If the property somehow ends up in your hands (perhaps you can agree on a future buy price 'option' - IN WRITING - with your grandmother / parents in return for managing the property?) you may decide on an even more aggressive strategy; e.g. Withdraw, say, 75% of the equity to fund a share trading fund ... using margin loans for the other 50% of the portfolio. This is what i did, and only lost 15% in the current market crash ... which, as far I can tell, is a 25%+ 'gain' on the the rest of the market (AND, I was 100% leveraged). A VERY high risk MM201 'jumpstart' strategy ... but, if you truly believe in your Bio Trading Strategies ... ;) @ Josh – yes, your grandmother (via you!) is executing a sound MM301 strategy …

… perhaps your parents will decide – when the time comes – if they should do the same, or perhaps withdraw 50% of the equity and buy another … small steps :)

If the property somehow ends up in your hands (perhaps you can agree on a future buy price ‘option’ – IN WRITING – with your grandmother / parents in return for managing the property?) you may decide on an even more aggressive strategy; e.g.

Withdraw, say, 75% of the equity to fund a share trading fund … using margin loans for the other 50% of the portfolio. This is what i did, and only lost 15% in the current market crash … which, as far I can tell, is a 25%+ ‘gain’ on the the rest of the market (AND, I was 100% leveraged).

A VERY high risk MM201 ‘jumpstart’ strategy … but, if you truly believe in your Bio Trading Strategies … ;)

]]> By: Mark http://7m7y.com/2009/01/27/residential-planning/comment-page-1/#comment-1304 Mark Wed, 28 Jan 2009 05:30:13 +0000 http://7m7y.com/?p=1368#comment-1304 @Josh - Definitely a good experience to pursue. I'm trying to encourage one of my siblings to manage a small property that is 100% paid for as well. However, since this property is not in the US, I can't comment on how easy it is to pull out equity from it. @Josh – Definitely a good experience to pursue. I’m trying to encourage one of my siblings to manage a small property that is 100% paid for as well. However, since this property is not in the US, I can’t comment on how easy it is to pull out equity from it.

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