Karl Domm - A Portfolio for All Markets: 12 Options Trading Principles to Profit in All Market Environments

A PORTFOLIO

FOR ALL MARKETS

12 Options Trading Principles To Profit

In All Market Environments

KARL DOMM

Copyright Pending 2019 by Karl Domm representing RKD LLC. This book is the property of RKD LLC a limited liability company.

All Rights Reserved

All rights reserved. No part of this book may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems, without permission in writing from the author. The only exception is by reviewer, who may quote short concepts in the review.

Author Name: Karl Domm

TABLE OF CONTENTS

I was 14 years old when my mom started to give me valuable stamps and coins for my birthdays. She wanted to encourage me to start a collection and one of the gifts really connected with me. Can you guess what it was?

The stamps didnt intrigue me. I used them to mail letters, but I did continue to collect coins. I put them in those blue coin collector books - the ones with a holder for each coin. I lost the books many years ago. I guess my interest wasnt strong enough to keep collecting coins.

What I really liked was the one share of Reebok Stock she gave me. At the time, it was trading for about $20, a share. I began to check the stock market section of the local newspaper on a regular basis. As a teen in the 80s, it was the only way I knew to keep track of the stocks value. A few years later, I sold it for $40.

Nothing much started to click with me until she started giving me books on audio tape. The one I remember best is Harvey Mackays Swim with the Sharks. Later I saw an infomercial on real estate from Carlton Sheets. The course was very expensive, but I signed up. At that point, I had never heard the terms passive income or stock option.

After I started to study business my fathers influence came into play. He is a self-made man who started out life being left on a doorstep when he was a baby. He was raised as a foster child in a very modest home and now he owns a multimillion-dollar business and is an expert in his field. My father has the innate ability to solve ANY problem. He taught me how to ask myself the right questions so I could come up with answers to seemingly impossible-to-solve-problems. His main message is you must have grit and perseverance if you are to achieve anything worth accomplishing.

I used that grit and perseverance for 24 years as I studied investing. It took me that long to find consistent success. I thank my mother for her blind support and my father for showing by example what it takes to never give up.

My First Real Estate Deal

It was 1989 when I was 22 years old and still in college, I decided to go down to the Fresno courthouse to see a real estate foreclosure auction. I watched a guy - Jim Smith (yes, thats his real name) bid on and buy a property.

When the auction was over, I approached Jim and began to ask him a lot of questions. This was the beginning of our friendship and business relationship. We later purchased a house together. You can see it in the photo above. It still has the same paint job we gave it in 1992.

It was my first real estate deal. I added value to the transaction because I was able to get the loan in my name. At the time, Jim did not want another mortgage in his name. We purchased the property for $42,000. I borrowed the money from a hard money lender, meaning the interest rate was higher than normal and the loan term shorter - five years. However, the actual payment was amortized over 30 years. I knew that at the end of the five years, the full loan had to be paid off. I was hoping it would increase enough in value by then so that I could refinance using a more conventional loan.

Jim had a crew that we used to do fix-ups like exterior paint and some flooring. After that, we tried to sell it. A month later, we found a buyer who offered us $62,500. One catch - the buyer didnt qualify for a loan. We decided to take $5,000, down and create a payment plan or mortgage and wrapped it around the existing mortgage. We paid the lender $550, a month and the new owner paid us $750, a month. It sounds like an easy $200, a month, but it wasnt. The new owner never paid on time. He was always a month late. Eventually, I didnt have the money to pay the mortgage. The hard money lender was hard on me - always calling me for the money. The worst part was that the person in charge of my account was a friend! How embarrassing is that?

The one thing that made the deal work was that the $750, per month was significantly HIGHER than the loan payment would be if the new owner got a new loan. Finally, after about a year, the new owner did get a new loan and paid Jim and me off for a nice little profit.

Looking back, the best thing I did was to go in with an EXPERIENCED PARTNER. Without Jims help, this deal could never have happened.

These early ventures helped me experience first hand a few different methods of producing income.