저자: Kevin · 외국인
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2020년 3월 팬데믹 폭락 때 부동산 담보 대출·마진 등으로 약 110만 달러를 빌려 미국 주식(테슬라, 사이먼프로퍼티, 디즈니, 아마존 등)을 하락일마다 분할 매수. 약 3개월 뒤 포트폴리오 약 300만 달러, 평가이익 약 68만 달러라고 주장. 부채 비용 월 약 3,500달러. 본인은 매도 계획 없고 다음 부동산 기회가 있을 때만 매도 예정. 핵심 교훈으로 공포 시 매수, 부채 비율 20% 이하 유지, 단기 레버리지 회피를 제시.
다듬은 글
Hello everyone, it's me, Kevin. So, you've probably heard about the dangers of debt, the stock market, timing the market, how irrational the market is and how disconnected it is from reality. Well, in this video, if you watch it all the way through, I promise I'll show you a new perspective on debt, timing the market, stocks, and some things to do and some things not to do.
But, as is usually the case , YouTube doesn't usually recommend my stock videos that much. So if you like this content, uh, and I rarely ask this, but consider sharing it and giving it a like so that maybe YouTube will show it a little more love. In the meantime , let's get started. The thing is, we've heard it a million times in almost every other YouTube video, that taking time to market into account is impossible.
And I heard this advice too. But when the market crashed and the pandemic started, I borrowed $1.1 million to still account for the time in the market. And this video is the story of what happened. And yes, I probably should be honest about some things. Yes, Lauren and I cut my hair and it's a little short.
I tried wearing a fedora in this morning's video, but a lot of you didn't like it. And yes, that's a stack of Runescape coins next to a Runescape pickaxe. Um, yes, sorry. I'm a bit of an addict when it comes to games, but, uh, okay, let's, uh, let's get to the point now. So, first it's helpful to know a little background.
I am a 28- year-old real estate investor at heart, and I am a stock market enthusiast for fun. What I personally like is that with real estate, no matter what the market is doing, I can usually buy a property for $400-$450,000 in my area that is in areas that are worth $600-$700,000. This is called buying a wedge deal.
To me, it's like free money. So I don't care what the market does, because the market can do it, and I always just buy below that price . So it doesn't matter. And the same can be done anywhere in the country. This is something we talk about all the time in my investing course. You hear me talking about it on the channel.
It's like a broken record. We understand, right? But I always knew there were opportunities in the stock market. I just spent all my money on real estate because I knew I was buying property below market value. But I will say that what I like about stocks is that I can literally sit in the office, buy something that looks really cool, you know, like stocks, and do nothing.
Once I decide to buy something, I can buy it, and I don't have to talk to painters or plumbers, worry about touch-ups, worry about escrow, notaries, loans, and all that real estate work, right ? This is routine. I understand. This is a completely different matter. This is exhausting work. It's like sticking your head in an income statement and then that company loses money, and the company you didn't put your head in on the income statement, in terms of stock, is skyrocketing like Nickeola.
Well, right when the pandemic started, I had just closed a escrow on a treasure house, and one of the last popular real estate videos I made involved searching through that house, looking for treasure, and rewarding someone $1,000 to whoever found the most valuable item in the property. Someone found something like a $ 3,000 gold watch , which was just crazy.
But anyway, once the pandemic started, I found myself in a conditional agreement to buy another property after the treasurer house, and we were supposed to close the deal around mid- March, just as the pandemic hit and the lockdown began. And I will never forget standing in this repair shop where I have to close a conditional contract.
And it seems like the world is coming to an end. It is raining outside. This is disgusting. This is the darkest day in the world. And so I think: " Oh my God, the stock market circuit breakers have tripped." The market is coming to an end. Everything seems to be fine . As if this is worse than a recession, uh , a great financial crisis.
It's like it's over, and you know what? We just need to calm down. Let's cancel all the deals we started. Let's go home and just climb into bed." And that's when I realized something. I realized, wait a minute, every person on YouTube and in every article in the media, whether they mean it or not, everyone keeps repeating this quote: “Be afraid when people are greedy.
"Be greedy when people are afraid." And let me tell you, I was at the height of my fear. I'm like Warren Buffett, looking at the airlines and saying, "I'm getting out of here." That's exactly the feeling I had . I was at the peak of fear. And as I stood there in the rain and said to myself, “Well, I’m an essential worker, so it’s okay.
I am a property manager . I'm here, on the territory, and this feeling of nonsense." I had about $400,000 of money in stocks that were rapidly losing money every day. It seemed like my money was going to burn. I think they dropped to around $250 at that point. And that's when I realized: wait a minute, Kevin, I'm at the peak of my fear.
I literally couldn't be more worried and scared about the pandemic, Lauren's asthma, and my two children, a two-year-old and a four-year-old. We had no idea what impact this pandemic would have on children or people with asthma. What will happen to my mom, dad, or my in-laws? Everything was in chaos.
And that's when I realized: wait a minute, this is hard. And it's really hard because I literally feel like I'm taking money and throwing it into the fire. This is the time to buy. So, as crazy as it sounds, I'm going to do it , because it's going to be like a gamble. I promise I'll explain how I did it safely.
And if you stay until the end of the video, that's where you'll find out how I did it safely. So you can protect yourself if you ever find yourself in such a situation in the future. So you can also take advantage of the same opportunity that happened here. I literally borrowed every penny I could get my hands on, which sounds dangerous, right?
It's like a game of chance. It's like roulette. No, I'll tell you again. At the end, I'll tell you why it wasn't a gamble . The money I borrowed was not a gamble . I didn't play yolo options. Good. No, I was trying to do something as safe as possible. So, in this video, I'm going to tell you exactly what I bought , what I did, and where we are now.
And no, you don't need to get two free shares from Weeble. You do not need to take out life insurance. And you don't need to buy any of my courses using the coupon link below. I'm literally going to tell you this right now . So, here is my strategy. Borrow as much money as I could safely. And again , I'll tell you how I borrowed them.
And then every day when the stock market was red, I bought shares of my favorite companies. If it was a green day, I wouldn't buy. If it was red , it was a day for shopping. And this psychologically programmed me to perceive red not as pain, but as something normal, today is the day I need to go shopping.
So I psychologically changed the red signal in my mind to say, “Oh, that’s green. Okay, I won't buy today. Oh, it's red. Oh, that means buying. Red means buy. Okay, so that's what I programmed myself to do, and that's all I did. Lauren and I have literally cut our expenses to about zero, which I mean, isn't that hard to do during quarantine.
I mean, no restaurants, no dates, literally just promotions. I invested all my money in stocks. And if the stocks were red, I bought them. I didn't touch the green ones. And so, starting around March 14 , I started buying stocks like crazy. I used Chase U Invest to buy stocks instantly when I got paid, or with money I saved for taxes because taxes were due on April 15th of this year.
And when they announced they were extending the tax deadline by 90 days, I thought, "Hmm, I'll take all the money I've saved to pay my taxes and buy stocks instead," that "I..." I know it's risky, but I also knew I could always extend my taxes by another eight months if I needed to. Anyway, uh, I ended up using Weeble to buy stocks before the market opened and closed.
And I used Robin Hood when I was waiting for the money to come in from Weeble because Weeble gives more hours for trading, but Robin Hood, you know, doesn't give such good hours, but the money shows up a little faster. And then I also used M1 Finance. There are many reasons why I used four different brokerages.
I transferred my TDM deal to M1 Finance . We'll come back to some of them in a moment. But I only bought companies that I truly believed in. I bought companies like Tesla, Amazon, Red Fin, Google, Simon Property Group, Disney, Target, AT&T, Dave and Busters, uh, and the Carnival and Delta stocks that I had, I eventually moved to Simon Property Group, and they're all pretty much in the same boat.
But anyway, I discussed all of these things every step of the way , every purchasing decision I made, in our Discord. which is free to join, a public Discord section. They talk about the group of shares every day. But anyway, uh, and uh, and, of course, in the live broadcasts that we do. But every time I got paid, I put everything I had into stocks.
So I borrowed as much money as I could. I invested every dollar I earned in stocks, and everything I could do, I invested in stocks. I wasn't sure what would happen to the property. I just invested everything I had. Even if it meant I had no emergency fund. I thought I was buying stocks so red on such a damn day that their residual value would be enough to create a reserve fund for me.
Something like, if I were to invest, you know, 20 grand, let's say, in a Tesla when it's selling for $300, then I really think it's going to go up to $150. And even if that happened, I would still have a $10,000 emergency fund, right? But anyway, it was kind of scary because I, even though I programmed myself to buy on negative days, it was hard because I thought, "Oh, I'll buy, and tomorrow the price will drop another 20%.
Not bad." But anyway, let me show you the results and the overall review. And then let me talk about debt. Here is this spreadsheet with every stock I own and how many of them I have. I'll show you individual brokerage accounts in a second, but I want to show you this because it's all in one place. So on the right you can see what percentage I own.
For example, 10% of my money is in Amazon. You know, 5% of my money is here. I don't know what it is . This is JP Morgan Chase, right? So, that gives you a little breakdown. And that's where it all went. The biggest assets look like they 're Apple, Amazon, we have 3.6% in Disney. I wish I had invested more...Disney.
Etsy has about 3%. This is a newer ad. Pelaton's 5%. Simon Property Group about 12.7%. Tesla is almost here, at , uh, 32%. Tesla's portfolio is quite large. Actually, we just posted on Instagram this morning that we crossed a thousand shares of Tesla a couple of days ago, which was pretty cool. But anyway, here it is .
This shows that the total portfolio of all these purchases that I've made in the last, you know, 90 days is about $3 million. And I borrowed about one, which is really worth $1.1 million , to buy this. After deducting debts, this comes out to approximately 1.969 of that net equity from these shares.
Now, if you look at it this way, it's roughly a distribution, I borrowed about $1.1 million from cash reserves, I had money for taxes, I had previous stocks that I had , probably only about 250-300 thousand at the time because they had lost so much value. Uh, and then any income I was making and the money we were saving because we just got rid of everything we had to live as frugally as possible in a very uncertain time.
And now, combined with an increase in market value of about $682,000 during that time, that total stock market portfolio is about $3 million . Now, one of the things you need to know is that yes, it seems like, you know, this 682,000 here is only about 22% of the return, but I didn't put the whole 3 million right at, you know, the bottom of the market, right?
Many of these purchases were made over time. And some stocks doubled, and some did n't. For example, if you look at AT&T, 134,000 shares of AT&T, well, AT&T is up about 15 %, right? from the bottom. Tesla has roughly doubled in size . So, I guess I could pick and say, "Oh, look, Tesla stock doubled.
I'm a legendary investor or something." But a realistic portfolio has diversity. Yeah. You know what? Did Simon Property Group double from my cost? Sure. Carnival and Delta doubled from cost? Sure. Okay. But I moved my Delta and Carnival into Simon Property Group. So there's not much difference. Uh, you know, Chase, yeah, Chase went up about 30% or something.
So that shows that there were some really big winners in the portfolio and some average winners. But the bottom line is, I just kept buying and buying as much as I could. But where did I get this extra money? Where did I get this extra 1.1? And why would I borrow money? Isn't that really dangerous? Well, in fairness , before I do that, I should show you the actual accounts so you can see where they came from.
This is M1 Finance, which is about 1.9. Remember, there's debt associated with this, because I'm going to explain that. But anyway, about 1.9 million here, uh, of which this shows that there's $ 545,000 in profit , about 39%. But keep in mind, some of those Tesla shares that I had before. So, I've already done some calculations in the background to show that during the pandemic, I was able to create about $682,000, making crazy money in stocks, not real estate.
And I want to show you how I did it. And it should really motivate you to see that this is what I need to do to prepare for next time. But anyway, let's look at it. This is unrealized gains versus realized gains. So you can see that Pelaton actually lost 2,000 dollars based on my expenses. But anyway, this is M1 Finance.
If I add in some of the profit that I still have to take from the options, the option trades here, on Macy's, Pelaton, Dave and Busters . If I add in those profits plus some of the profits here on some of these different stocks, here we are. Tesla, JP Morgan, Simon Property Group, Disney, Amazon. Uh, all of that adds up to about $86,000.
So you can see it here. Here's Pelaton. See, Pelaton is up $3,900 here. So, Pelaton's averages. Uh , and I also have money in Weeble. Here's what the Weeble account looks like. And again , I'm just showing you this so you can quickly understand that, yeah, I'm not just writing these numbers down in a spreadsheet.
I'm actually showing you what's real. It's kind of like what I did when I did the net asset breakdown of the network, where I showed you how I grew my net worth over time from $9,000 at 19, how I grew my net worth. The link to that video is below. And the last place you need to look is Chase. And I printed out a snapshot of Chase.
So remember, I had these four brokerage accounts. So let's go to Chase. So here it is . Here's Chase. Again . Here you can see Simon Property Group. We have Apple, JP Morgan. That's all I've put together for you in a spreadsheet. So you don't have to sum it all up, but at least you can see the numbers here.
And I was n't using Chase, Robin Hood, Weeble or M1 Finance before the pandemic, but I moved my TDM trading stuff to M1 Finance. And you'll see why in a moment, but here you'll see the unrealized gains of Chase. So all of a sudden I went from being a real estate investor to a stock fan. And so we want to show you how investing in real estate translates to timing the stock market in this situation, and what real estate did for me to create this opportunity.
Well, let's get to that, because now that you have that experience, let's get to the real lessons, and this is the really important thing. So let's get started. So, of the $1.1 million that I borrowed, about $500,000 came directly from real estate. When the Federal Reserve cut rates wildly on Sunday of that week, I called my lender and immediately decided to refinance four of my properties.
The reason I did that was because I was really scared and I thought, "Okay, I'd rather have a bigger monthly payment on the property, but have a lot of cash that I could use to live on for the next few years or buy stocks or whatever else I need to do. I just need the cash." A lot of people, when they hear about real estate, They say, "Well, real estate is illiquid.
Like, I don't need real estate." And I knew that, so I had to act fast. And when I started these refinances on about March 6th, about 30 days later, I had about $500,000 in cash. And that was because of a combination of these refinances and drawing down every line of credit that I had. I got about $300,000 from the refinance and about $200,000 from the lines of credit.
The great thing about this type of debt is that it's 30-year fixed- rate debt and 20-year fixed- rate debt on the lines of credit. So I'm literally taking out a bunch of cash against assets that I own, against real estate that I've bought before. Even if people say, "Oh, why would you buy real estate?
You know, it's illiquid." Or, "Oh, your equity is worth nothing. means until you sell." You know, I read all the comments. I get it. But when you look at a moment like that, it's like, "Oh, [ __ ]. This is why you need real estate . This is why you need it." Because in an emergency, I go break glass.
Boom. 30 days later, instantly out of credit lines, there you are, Kevin. What do you want to do with it now? Yeah. Now I have higher monthly payments on this real estate. But I mean, looking at what we were able to do with it, it's pretty incredible. And so if you exclude real estate from your investment portfolio, that might be a mistake.
It's probably a lot more liquid than you think. But anyway, and I did n't even have to sell it, right? I still own that real estate, which is great. But anyway, now I had about $500,000. It's costing me about 3.6%. Advertisement for about 20-30 years is going to cost me something like $2,300, which is crazy.
Just think about it. I'm not paying more taxes. I'm not paying more insurance. I'm just paying more money in principal and interest on that extra bit of money. Uh, and lines of credit are just interest. So the total monthly additional cost of all of this is something like $2,300, which, don't get me wrong, is a lot.
And I don't want to -- I hope I don't come across as someone who can't understand this, because the numbers are big. We could do this on a large scale. You know, these numbers are extremely small compared to some billionaire. Uh, and they were extremely important to me when I was 19 and I had $9,000.
But what you really want to take away from this is the lessons, the principles, the things that we can learn from it, because you can do the same thing on a different scale. So I borrowed the money at about 3.6%. It cost me about $2,300 a month. And I was comfortable with that. I felt like even if we had to cut back on our vacations, uh, you know , and cut back on dinners, you know, whatever I did, I could make that payment.
So I wasn't worried that $500,000 was ever going to show up for me. Uh, because I had been borrowing it for such a long period of time. It's kind of like buying a car and then trying to get an eight-year loan instead of a three-year loan, right? Your payment is going to be a failure. But I was buying it, I was n't borrowing that money to buy a mobile home or a car.
I was borrowing that money to invest. I was actually doing what I recommend on the channel, you know, because a lot of people say, "Oh, it's easy to make a YouTube video and just say, you know, be afraid when people are greedy. Be greedy, you know, when people, you know, all these quotes and stuff." It's easy to say that.
Easy say, "Oh, look at me. I sold some of my bitcoin for $19,000 and then it went down right after that, or I reduced some of my holdings in that." Okay. But what else did you do with that money? You know, did you put it in cash now or did you move it into a better opportunity ? That's just my perspective.
Anyway, then I spent the money. That money that I got and the money that I had for taxes and the income that I got over time, I spent all of that money , because remember, I didn't buy it all at once. I bought literally every red day over time. I put all of that money into M1 Finance stock as much as I could because it's M1 Finance and I don't want to sound like a jerk for M1 Finance.
You can look at the M1 Finance stock that I have by going to : met Kevin.com/stocks. met Kevin.com/stocks. But anyway, The coolest thing I really liked about M1 Finance is looking at the debt I was able to take out and how much I'm paying for it. It's crazy. Okay, let's get started. So we're back to M1 Finance, and it says I borrowed $447,000 on margin with M1 Finance.
Margin is really scary because if the stock price goes down, they can enforce the margin call. I don't usually recommend using margin, but I also know that because I have more real estate that I could refinance if I needed to, I could either sell my real estate immediately if I needed to , you know, within 30 days, right?
Or I could refinance it right away, and I could pay off that margin right away . So I don't usually recommend margin unless you have other ways to pay that money off right away . But look at the interest rate. The interest rate is 2%. I'm literally borrowing money on 2% to make money in the stock market during the craziest pandemic in history.
That's crazy. It's literally free money. It's like the price of inflation. It's like, "How could you not do this?" I don't like to over-leverage my rates. I like to keep my total debt to stocks below 20%. Certainly no more than 30% . That's one of the reasons I don't like margin loans like Weeble and Robin Hood, because, first of all, they cost you more money.
They cost you about 6%. Uh, or maybe it's about 5%, 5 to 6%. Uh, and they let you borrow up to 100% of your account value, which is way too much of a loan. Not great. I borrowed a little bit of collateral from Weeble and Robin Hood, but those are the first ones I'm going to pay off. So, in total, I borrowed about $542,000, probably at an average interest rate of about 2.8%.
That's just interest. So it costs me about $1,264 a month. So when I add it up, I'm paying about $3,500 a month in total to have a million, 1 million. 1.1 million dollars. I didn't say that quite right. I'm paying $3,500 a month to play with $1.1 million during the craziest stock market crash I've ever been through, by far.
And I was able to do that because I owned these other assets, mostly real estate. And so because I timed the market against the advice that literally everyone is saying, which is, "No, no, no, don't buy, don't time the market." Because I timed the market and I'm basically stuck with $3 million in stocks now.
I could have made $682,000 if I sold today. Uh, I don't have any plans to sell. The only reason I would sell is if I had another opportunity to do the deal, right? I mentioned this before. For example, if I had a real estate deal, I would be happy to sell. I think the first one I'm going to sell is Simon Property Group, but I'm not going to sell anything until I have another opportunity to do a deal.
That's the only reason I'm actually going to sell something and not translate it or translate it into something like that. So now you really need to... we have some lessons, and I want to share the bottom line with you, right? Oh, God, I'm just worried that I do n't want to come across as someone who's just trying to pat themselves on the back.
Uh, you know, and again, I know it's easy to say, "Oh, well, you know, in the last , uh, 20 days I doubled my money investing in Nickeola." Great. Great. I'm just showing you a real portfolio and how I managed to put a lot of money in there, right? And I don't want to give up, that's the more important thing.
I don't want to seem unclear. I hope I'm doing this right. I just want to inspire you to show you that, you know, if you saw my net worth story, you could go from $9,000 to a millionaire. You can do it in this country. But you have to own assets. You have to own stocks and real estate so that you can move when opportunities arise.
I can't let a pandemic happen and then say, "Okay , let me just work hard and earn money to buy." You're not going to be able to buy a lot . You have to own things like real estate or other stocks. So here's the thing. Rule number one. First of all, you know, Warren Buffett says he's the guy with the quote, "Be afraid when people are greedy.
Be greedy when people are afraid." I'm sick of that quote, aren't I? Well, Warren Buffett, and I don't want to criticize this guy because I love him, but he was afraid of the airlines, right? And too many of us were afraid to buy. I was afraid to buy too, but I just thought to myself, when you have that feeling of fear, you're probably in the right place.
That's rule number one. Uh , number two, you know, it's when stocks go up 100% like Nicola did in a day that you start to feel safe, and you buy when it's really , really green, that's when you're usually in danger. You're also in danger if you 're making short-term bets, right? Short-term loans, short-term financing, short-term options, they're extremely volatile, very, very dangerous.
Notice what I could do if I traded short-term options. Oh yeah, I could be a quarterback on Monday morning and show a lot more profit, right? But it's safe for me. It was a very safe move. Uh, and now what I'm doing, and I mentioned this last week , is that I just pay the margin. Like I pay the Robin Hood margin.
I pay the M1 F or not the M1, which one is the last one I'm going to pay because it's 2%. I pay the Robin Hood, I pay the Weeble, I pay the home equity lines of credit because they're like 5% or something . And then I pay the M1 Finance. That way if there's a double dip, I'll have less debt, but that debt will be available again.
I could flip the debt switch back on. I have this flexibility to buy when I feel like the time is right, when there's fear. So, uh, number three, keep the debt low. In my opinion, your debt should be below 20% for stocks. Unless you have real estate to back you up. And so, number four, buy real estate below market value.
So that next time you have those opportunities. You know, my rates teach you how to do it. We have people buying deals every day with this knowledge. And then number five: only sell when you have another opportunity. It's not like, "Oh, look at me. I sold at the top. Oh, I'm the best market timer." No, I really think the best time is when you buy at the right time and then just hold.
I really like that. And number six: stay away from short-term debt. So there you go, friends. Share your thoughts on this. If you like this kind of content and you want more content about stocks and how I look at the market and how I put my money where I say I will, I can't even say it right because it's weird.
Please subscribe. Let me know in the comments below. I really appreciate you watching. And, uh, I really hope this video has inspired you. I really, really, really hope that, um, you know, someone not look at the video ( which is what will happen), not click on the video and think, "Oh, this guy is just trying to show off or something, " and then they...
I don't... I mean, it's probably a disservice to them, because I really find this information valuable, and I hope it was valuable to you. So thank you very much for watching, for being part of the community, and see you next time.
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