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 January 2020 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 solidly in First Place. TheMonopolyProject is still in 5th place, so we’re still “Stuck in the Middle With You’, to quote the great song by Stealers Wheel; still the same as we reported last month.
GOLD stayed if FIRST place but also increased over five thousand dollars. But the order of the investments remained the same. 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’ = $105,679
How did we get to the ‘REO Owned Estimate of Equity’ of $46,331 for the month of January?
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 unchanged. But we are inching ahead, month by month. This is a long term project.
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):