All Topics / The Treasure Chest / 11 sec of what

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  • Profile photo of kazza4kkazza4k
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    @kazza4k
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    September 11, 2003 - 8:38 am

    Hi everyone
    i’ve read people asking questions on the 11 sec solution and i’ve tried to find out just exactly what it is but maybe i’m looking in the wrong area. could someone please explain what it is.
    sorry if this is a silly question, it’s obviously something that i should already know. [:I]
    thanks karen

    Profile photo of ianbillerianbiller
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    September 11, 2003 - 8:41 am

    why don’t you read the book

    Profile photo of kazza4kkazza4k
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    September 11, 2003 - 8:59 am

    thanks for that
    im looking forward to it arriving in the mail, until then i was just asking a question
    karen

    Profile photo of muppetmuppet
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    September 11, 2003 - 9:12 am

    Hi Karen

    The 11 sec rule goes something like this….take the possible weekly rent divide by 2 and then multiply by 1000.
    This should be about what you should pay for a property to make it positive cash flow at about a gross yield of 10.4%.
    eg
    rent of $400 divided by 2 = 200 * 1000 = $200000
    rent of $150 divided by 2 = 75 * 1000 = $75000
    rent of $120 divided by 2 = 60 * 1000 = $60000

    I hope that this gives you some idea of the 11 sec rule.

    Regards

    Profile photo of kazza4kkazza4k
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    @kazza4k
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    September 11, 2003 - 9:20 am

    thankyou muppet
    that helps a lot.[:)]

    karen

    Profile photo of jerrywjerryw
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    September 11, 2003 - 11:14 am

    [:0)]
    Hi Guys

    this rule also needs to take into account your intrest rate in relationt to the property being cfp. also does anybody know where steve mcnight does most of his property shopping?

    Profile photo of AdministratorAdministrator
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    September 11, 2003 - 11:27 am

    Hi Kaza,

    Any rule is only a guideline. As Steve points out, it’s a tool to help quickly sort the possibles from those to dismiss. If you find a property coming close to the equation, look further into it.
    Some properties have been touted to yield up to 15% return. Others coming in at say 9% might still be worth investigation, depending on your other up front and on-going costs.
    When your book arrives in the mail, consider this. I always highlight the important stuff in these types of books. It will help when referring back to points, for the concepts sink in.

    Happy hunting,

    Regards, Phil

    Profile photo of ADAD
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    September 11, 2003 - 12:22 pm

    Wouldn’t that take the fun out of it Jerry ??

    Enjoy
    AD [:0)]
    (Andrew)

    It is good to have an end to journey toward, but it is the journey that matters in the end.

    Profile photo of The DIY Dog WashThe DIY Dog Wash
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    September 11, 2003 - 12:30 pm

    Jerry

    I do know where Steve and co do their property shopping … unfortunately you aren’t ready for that.

    Cheers
    Leigh K[:D]

    Read, learn, grow but most of all do it.

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