Updated: Mar 6
Happy New Year!
Thank you for spending another year reading our weekly newsletters, asking questions, and giving us feedback. Our goal is to make real estate investing easy for busy professionals so that you can Invest with Confidence.
What’s on My Mind this Week
I’ve been busy with 2021 year-end review and 2022 goal setting. In this newsletter, I will share my honest review of 2021. In the next newsletter, I will share some thoughts on how to set a failproof goal for 2022. Compared to 2020, I am one step closer to a richer, healthier and wiser life. Richer I continue to grow and diversify my passive portfolio into different assets: ATM machine, self-storage, senior living and mobile home park. I also plan to add cash-flow generating small business to my portfolio in 2022. Compared to last year, my passive portfolio becomes a bigger pie of my whole portfolio; the cash flow covers my bills so that I can free myself up and focus on what I am good at, i.e., finding good investment opportunities for busy professionals, who earn high income, want to invest, but don’t know how to start/not interested in learning investing/not good at it/can’t find good sponsors and good deals due to the nature of private investments. I firmly believe there are a lot of appetites for such service, and “our co-investing” model can fill in the gap. ATM fund is a good starting point, thank you for those who invested with us this year. We look forward to providing more good products to serve our fellow investors. I also successfully cash-out refinanced my property before rate hike. It unlocked the equity due to housing appreciation (which I can’t predict how long it will last due to rate hike), avoid the capital gain tax and lower the risk, as I re-invested it into other cash-flowing assets. As a result, the risk-adjusted return (the so-called “Sharpe Ratio”) of my portfolio increased. Healthier This is another area I made major progress. I lost 8.4 lbs and trimmed waistline by 7.5cm in 2 months. But most importantly, I improved in mindset, knowledge and strategy:
• Mindset: your health and your energy are your capital. Treat them like your long-term investment. The goal is to optimize your health and energy at age of 75. • Knowledge: I abandoned a lot of misconceptions about nutrition and equipped myself with the right ones. • Execution strategy: mindset and knowledge alone won’t guarantee success. Plan your meals the night before and stick to the plan and no improvising are the keys to successful execution.
Wiser Staying open-minded and the capability of quick learning helped me to navigate the challenges of operating ATM fund and making new investments in new asset classes. Knowing what the right questions to ask and where to find the answers are crucial in an ever-changing environment. I also practice becoming wiser every day by daily meditation. Meditation helps me to stay calm under pressure, distinguish fact and opinion, accept what we can’t change and work on things that we can change. Clarity A book inspired me recently is “Richer, Wiser, Happier” by William Green, where I borrow the title from. The book covers how the great investors invest and live their lives. One common theme is that they all believe their success does not come from a home run. Instead, their job is to “consistently avoid stupidity” (which causes drawdowns and sets you back to the starting point) and let time do the compounding. The strategy sounds so simple, yet, only a few masters can do it, as it takes a long time to show the power of compounding. Surprisingly, the same strategy can also be applied to life. When you treat health and relationship as long-term investment, your priorities will be different. The book helps me gain clarity regarding how to prioritize and allocate my time on daily basis. My long-term goal is freedom, including financial freedom, time freedom, energy freedom (i.e., you still have the energy to enjoy life when you are old), as well as the freedom to choose where to live and the kind of relationships I want to be in. My job is to try my best to avoid “stupidity”, i.e, activities that push me away from ultimate freedom. Ask myself “am I doing this just because other people expect me to do or because it will eventually lead me to the ultimate freedom” helps me make the right decision between working out and unnecessary working overtime. I wish you all a Richer, Healthier, Wiser and Happier life in 2022!
Sharpe Investor Group Portfolio Update
Good News about the ATM Fund Update
After discussing the difficulty of tax treatments for old and new investors in our ATM fund with CPA, we found the solution. We are happy to announce that the ATM fund will stay open to all new investors in 2022.
January tranche is now opened.
To recap, you will get
20%-22% cash-on-cash return without any leverage
~$20,000 tax in year 1 (assuming 40% tax bracket and you have passive income to write off)
10-12% unlevered IRR every year
ZERO leverage and significant risk reduction
Check out our Playlist
Book a Passive Investing Strategy Call
If you have any questions about your passive investment strategy, or you're just getting started, feel free to schedule a time with me (click on the link in my signature) or simply respond to this email.
Yan Yan - email@example.com
Henry Yuen - firstname.lastname@example.org
Our Education and Contents
Some of you might be aware of our YouTube channel (search “Sharpe Investors” in YouTube). We re-organized the content and grouped them into following playlists:
Have a great weekend!
Invest with Confidence.
Yan Yan Sharpe Investor Group www.sharpeinvestorgroup.com