How To Become An Oil Baron With $35,000

Imagine if someone had a private bank account that was used solely for the purpose of funding automatic investments that required only an hour or two’s worth of effort per year.

What I have in mind is something like this: let’s say you accumulated 1,250 shares of Vanguard Natural Resources (you could have done this by purchasing $5,000 worth of the MLP over the past four years). It currently pays its unitholders $0.205 per month. Now that’s what I call cash flow. That would work out to $256 per month, or $3,072 per year.

Let’s say you set up a bank account with the exclusive purpose of funneling that $3,072 in passive income from Vanguard Natural Resources into shares of ConocoPhillips and ExxonMobil. Both of those companies, if you use the Computershare investing service, allow you to automatically debit $50 or greater from your bank account each month free of … Read the rest of this article!

Investing in Commercial Real Estate Investment Trusts Now

For most of the 1960-2010 period, commercial tenants could receive a strong benefit by committing themselves to long-term leases. Unless you were dealing with the obvious coastal markets where stock-like returns from real estate is taken for granted, commercial landlords prized the income security that came with a tenant covenanting to stay on the premises for three, five, or even ten years.

From the tenant’s point of view, the advantage of long-term leases was the certainty of rent obligations as well as the discount that could be received by paying lower monthly rents.

The landlord’s advantage was that it would not have to deal with vacancies and the high transaction costs associated with tenant turnover.

In the past few years, however, commercial tenants have struggled to secure the traditional discounts associated with long-term leasing commitments and, in some instances, landlords have outright refused to consider extending long-term leases to tenants … Read the rest of this article!