Our results to date are reported on a monthly basis on the “Score” table on the Home page. We give you the current total value of TheMonopolyProject (TMP) as a combination of cash held (bank deposits) and the estimated equity of the real estate owned (= estimated value minus liabilities).
To determine how well TMP project is doing we compare it to the other financial investments we could have made with the $100,000. This is known as the ‘opportunity cost’. Note that we could also consider other, non-financial investment uses for the $100,000. We will discuss that later. Life is not all about optimizing financial outcomes in this kingdom.
We started TMP on March 1, 2019. On March 1st, 2019, all 10 investments started at the same nominal value, $100,000.
Now that December 2019 is completed, we have our results, the “Standings”. It’s easiest to think of this as a football or baseball sports league: The Financial League. We’re one of ten teams competing for First Place in the league.
‘Gold’ is still solidly in First Place. TheMonopolyProject is still in 5th place, so we’re “Stuck in the Middle With You’, to quote the great song by Stealers Wheel.
Here’s a direct comparison of the last four months:
TheMonopolyProject formula for TOTAL EQUITY is:
TOTAL EQUITY of TMP = ‘Bank Account’ + ‘1 SHF – estimated equity’ = $104,867
How did we get to the ‘REO Owned Estimate of Equity’ of $45,653 for the month of December?
We used the arithmetic average of three websites (Redfin, Zillow, Realtor.com) that estimate home values.
Note that both the Redfin and Zillow estimates increased. The Realtor estimate was down slightly.
I will point out that besides being ‘stuck in the middle with you’, we are fighting with ‘one arm tied behind our back’ since we have used less than one half of the $100,000 capital. We will work on that next year.
Clowns to the left of me,
Jokers to the right, here I am,
Stuck in the middle with you,
Stealers Wheel were a Scottish folk rock/rock band formed in 1972 Scotland by former school friends Joe Egan and Gerry Rafferty – “Stuck in The Middle with You”
Gerry Rafferty (RIP) went on to write and perform “Baker Street” with this best ever saxophone solo (1978):