Monthly Update – June, 2014

In this update: investment performance, my real estate investing numbers revealed, my LendingClub.com monthly update, one interesting item I spent money on and a song or two I’ve been listening to recently.
 
So, I’ve finally jumped on the bandwagon. I am starting monthly updates that will grow and evolved to give you a glimpse of a few of my money strategies and how they are panning out for me as well as my lifestyle here in the NYC. Each section will be short and to the point, so feel free to jump around to the parts that interest you the most! So let’s start this off:
 

Investment Portfolio

Personal Capital has a pretty a fun feature. It tracks “You Index” and tells you how much your investments are up or down as a percentage and compares that to a few other indices such as the S&P 500 and the Dow. Here’s a look at my snapshot for June.
June 2014 "Your Index"
Not a huge increase for my investment portfolio, but I did narrowly beat the S&P 500
That seems about right. Most of my equity investments are S&P index funds or similar, so I should be right on target with this one. For some unknown reason that is silly to try to figure out, I beat the S&P by a little in June. I’ll take it!
 

Real Estate

Disclaimer: Below are the straight income and expense numbers for my real estate investment. Part of the income is being put aside for reserves in case maintenance issues arise or the property is vacant for a period of time. Some months, the cash flow may look extremely rosy, but keep in mind that this is a long term strategy with expected bumps along the way.
 
Rent Income: $1,025
Rent Guarantee Income: $25
Mortgage Payment (Including Principle, Interest, Taxes, and Insurance): $424.65
Property Management Fees: $1,025
Total This Month: -$399.65
 
Ok, so this first month doesn’t look so rosy, but I was expecting this. First of all, I am getting a check for the remainder of my rent that I was due in May as they were getting the tenant set up, but I didn’t include that here. Second, the property management fee is usually 10% of the monthly rent. However, they do get a fee for placing a tenant that’s equal to 1 month’s rent. The good news? The tenant is signed up for a 2 year lease, so barring an eviction or extenuating circumstances, I won’t have to pay the placement fee again any time soon. Of course, I plan on finding ways to make my tenants as happy as possible because the renewal fee is only HALF a month’s rent. I think a gift card will make it’s way to my address over the holidays!
 

Lending Club

In September 2013, I decided to start an experiment by putting $5,000 into LendingClub.com. I spent the next month and a half setting up alerts and furiously investing in every loan that fit my criteria. Since that time, LendingClub has launched automated investing, which makes my life so much easier. I have found that my returns suffer a little, since I am not actively deciding on which loans to invest in, but I have only lost a couple of percentage points, which is worth the decrease in time it takes for me. Plus, I can’t be certain that my return wouldn’t have dipped anyway, even if I had continued actively investing. Either way, I am happy with my numbers. Lending Club offers monthly statements, which is great, but they are only available 1 week after the end of the month. So for this month, I’ll share my May numbers. I’ll figure out how I want to deal with this going forward.
 
May Interest Received: $87.57
May Late Fees Collected: $0
May Losses (due to defaults): $0
Current Annualized Return: 18.88%
Current Lending Club Account Value: $5532.34
 
No defaults in May! Yipee! I have actually yet to have a default, but I am dangerously close with a number of loans having very late payments. We will see what happens in June.
 

June Spending

The two most interesting items I spent money on this past month were the Kiind.me purchase that rewarded a few of my readers as well as my brand new website redesign. I also did a lot of absolutely crazy spending on food in June for the week that I was sent to Las Vegas on a business trip. When the company is paying, I don’t mind letting loose a bit, spending on food. Of course, my version of letting loose still yielded a more modest expense report than most of my colleagues – man, being cavalier with money is hard work!
 

Music

So, please tell me if you think this section of my monthly update is dumb. I just love listening to music and thought I would share one or two songs per month that I am listening to. I’ll try to vary the genre as I have pretty wide interests and for variety’s sake, I will avoid the Billboard top 10 songs (even though I do like me some good pop now and again). First up is a band that I have been obsessed with for the past couple of months: The 1975. Check out the video for “Settle Down”.
 
 
Enjoy and here’s to a great July!

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14 thoughts on “Monthly Update – June, 2014

  1. Even Steven July 7, 2014 at 12:04 pm

    You and I both gave in to the tracking of how we are doing. You are way more specific on yours, which is probably more interesting. I’m thinking of doing a quarterly or bi annual update, since I’m more of a tell my story kind of guy. Congrats on posting the first one, I’m listening to 1975 right now, I had to pause my Green Day stuff.
    Even Steven recently posted: Goal Progress to Financial IndependenceMy Profile

    • Mr NYBudget July 15, 2014 at 11:55 am

      Ha! Thanks – yeah, I am trying to be as specific as I feel comfortable with. Perhaps I will get more detailed as I go along!

  2. FI Fighter July 7, 2014 at 8:26 pm

    Good stuff! I’m with you on making tenants happy and keeping them around as long as possible… The lease-up fee is kind of painful, so hopefully it’ll be a few years before you have to go through that again.

    That’s why I plug 10% into vacancy when I run the numbers… the lease up fees and renewals will eat into the overall return.

    Best of luck!
    FI Fighter recently posted: Starwood Hotels: Earning Starwood Points (1/5)My Profile

    • Mr NYBudget July 15, 2014 at 11:56 am

      Yeah, 10% is definitely a good way to go for that vacancy allotment!

  3. Kassandra July 8, 2014 at 4:51 pm

    It’s your blog and I support music so keep sharing as I like to discover bands/artists I haven’t heard of before. It’s insane what some people spend during business trips. I always aim to not overdo it whenever I bill expenses for my business travels
    Kassandra recently posted: In The Name of MoneyMy Profile

    • Mr NYBudget July 15, 2014 at 11:57 am

      Hope I can find some good music for you! Yeah, some of my coworkers go absolutely NUTS on business expenses!

  4. Ryan @ Impersonal Finance July 9, 2014 at 10:41 am

    That’s a pretty great return for the Lending Club, and hell yeah for getting the tenant signed up for a two month lease! And I dig the music section, as I’m always looking for something I haven’t heard, or a song I would have forgotten about. Like Kassandra said man, it’s your blog, so just let it rip. And I’m going to have to go check out that “You Index” in a few minutes…
    Ryan @ Impersonal Finance recently posted: a quick rundown of my past 90 daysMy Profile

    • Mr NYBudget July 15, 2014 at 11:59 am

      Thanks Ryan! I’ll keep churning it out! I definitely want to make sure it’s interesting for people to read, though. So thanks for the feedback!

  5. Andrew July 9, 2014 at 3:21 pm

    Always interested in hearing about your turnkey rental property. Will be looking into that in the future. I think rewarding a good tenant with a gift card is a cool idea.
    Andrew recently posted: Financial Decisions: Emotion vs LogicMy Profile

    • Mr NYBudget July 15, 2014 at 11:59 am

      It’s something that FI Fighter does and I love the idea!

  6. Daisy July 11, 2014 at 11:16 am

    Looks like you’ve had some success with Lending Club. That’s great. In Canada, we really don’t have the opportunity to invest in p2p lending but maybe one day.
    Daisy recently posted: Post Wedding Budget DetoxMy Profile

    • Mr NYBudget July 15, 2014 at 12:01 pm

      That’s interesting. I definitely think it will come to Canada once it is a little more established here.

  7. writing2reality July 15, 2014 at 10:53 am

    If you want to find your statement balance before the end of the month for Lending Club, simply log in on the first of the month during the morning and take a screen shot of your account. This will give you everything you need ahead of time.
    writing2reality recently posted: Passive Income and Pageviews – March 2014 UpdateMy Profile

    • Mr NYBudget July 15, 2014 at 12:05 pm

      Nice – thanks for the tip!

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