Hi all!
I have just finished reading steve’s book and it really did make a lot of sense. Congrats to him. I haven’t started buying properties but am keen to begin doing so. However, I am a uni student with only a part-time job and very little income.One part of the book that interested me was the idea of selling details of property deals to other investors. I was wondering if anyone else out there has also done this and if they could post some advice about how they went about it. What details would prospective investors want about the property?
Thanks[
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JoelYou may find it quite challenging to muster up the resources to begin your portfolio. I am a student as well, and it seems there is a lot of us on here. Perhaps we can get a little networking going between people in similar situations. Students looking to fund uni and get experience while they are still young. More difficult without a good, constant income though.
Sorry not to answer your question, but I think others will be much more able. Perhaps you can use this technique, perhaps not. But uni students generally do have much more time than most….
cheers
timMoney is an elastic resource, it can be created. Time is not.
Hey I’m also a uni student and facing the same dillema of no cash nor decent income to start[
]If you know who Dolf De Roos is, well he aparently got the money to start investing via a student loan, since he’s never had a job. But from what i’ve read of student loans from the major institutions, they don’t loan for investment purposes. So beats me how people in our situation could get started.
I’m all for the networking idea of us uni students – maybe we could get together and see about pooling together to get an investment property? If you’re interested in the idea my email is [email protected]
Mark
I have looked into student loans before I started uni. I was pursuing a career as a pilot at the time, and needed extra funds to continue training. Most institutions only gave loans for about $5 – $10k, not enough cash to go furthur with my training (let alone buy a house)As far as I know the must be used for education purposes.
On the upside though, many of them have the interest deferred for a while for you so this could be a good point.Is Dolf Australian??? if not then I suspect the student loan scheme may be different elsewhere.
As to networking…. we’ll see how many proactive students there are out there. See if anyone will jump on the bandwagon…
cheers
blowieMoney is an elastic resource, it can be created. Time is not.
apparently finance is every investor’s hardest thing. If you have no cash and no income and debt then it might be hard to get finance. And if you did get finance, without an income not derived from the property, and even if the property is CF+ve, you expose yourself to a lot of risk if you are vacant, or the hot water cyliner bursts, or, or, or.
If you couldn’t afford to (say) repair the hot water cylinder in order for the tenants to remain there paying rent, i.e. your mortgage, and you didn’t have a job or some cash and to make it worse you had a student loan, you could be forced into a sale at the wrong time and it could be very bad.
I would make sure you have good balance sheets in your own life before you jump into it. Finding properties for a fee is a valid way to get some bucks but it is just a job. People I know that had houses when they were students were the type that worked their butts off doing three jobs and not partying, etc – saving a deposit, getting finance and perhaps parents to guarantee loans, or whatever. just be very careful-,! the first house is the hardest and if you can make that work then you’re away.
cheers-
miniHi Guys,
If you really want a place, your gonna have to really work your butts off, i mean for me, i was very lucky i had my first casual job when i was about 13-14 since then, ive pretty much just saved hard and limited myself, from spending any monies if possible to save.
Though i have mates, who are in the similar position, and all they wish now is, if they didnt waste their money while still in school, they would have enormous savings today.
There is still many opportunities for you, but really just save hard now and work out a plan, or a goal of how much you want to save by a specific date.
You can do it, just work hard at it.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
http://www.theenlightenedway.com/tools/mil_calc.shtmlDolf de Roos is a Kiwi, who’s lived in Australia, and many other countries while growing up.
His first house was in NZ. He went to all the four banks (at that time) that offered student loans ($1000 a pop). He didn’t tell them that he was also applying for the other loans, and not one of them asked him what he was going to use the funds for. If they did, he would have been in trouble, and wouldn’t have got the loan.
He then spoke to 20 banks before he found one that would then lend him the rest of the finance top purchase the property he wanted. The interest rate he was charged was 24%!!! Which was OK, cos his yield at the time was 27%. Then rates came down, and his return got better and better.
I agree, the first deal is really the hardest. I was lucky enough that my parents let me use the equity in their place – and basically went guarantor.
Cheers
MelI bought my first property in Tauranga in 1984. Interest rates got close to 20%. Mortgages were paid monthly not fortnightly. Every second pay (as a student nurse) went on my mortgage. I thought it was heaven if you got three pays in a calander month. Now people cringe when interest rates go up 0.25% As a single, white female I had a heck of a job trying to get my first mortgage. I now get pleasure in going into a bank and asking them why I should choose their product over the opposition’s. Times have changed. [
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The interest rate he was charged was 24%!!! Which was OK, cos his yield at the time was 27%. Then rates came down, and his return got better and better.Hi,
I can totally relate to your situation as a few years ago I was in uni as a mature age student and I was facing similar issues.My advice is to use this time to learn everything you can and get your plans completely sorted out regarding property investment.
The second thing is to think creatively. Why not create a business. I did this when I was in uni and I had no money at all. I then used my business experience on my resume. Therefore I leveraged it as much as possible. I didn’t make a huge amount of money, but I think that directly related to my skills as a business person at that time.
You see the great thing about your position is that you can adjust you lectures and tutorial times to fit things in.
Other things that worked for me (although allot of work) was, a part time job (hospitality), or see if the uni will employ you as a tutorial assistant I was getting paid $30 per hour at my uni for this, and yes I shoved it on my resume at the end.
Maybe you could then take any money you make and put it in an account like Citibank. I use AMP, they pay 5.05% interest paid monthly, you will need to link an external account to AMP so that you can make withdrawals via ATM. ANZ have one specifically for students so there are no charges.
Sorry this has turned into an essay. Its good to see that I did learn something at uni. [
] .Regards
Hi
you need to be creative, when you fill in the application form for a loan and need to send it to everyone that will lend you money. Once you have some money you use that to show you are a
good saver and continue the procress until you have enought for a deposit. I was driving taxi’s parttime and going to uni, said full time and so them some pay slips for hoiliday work (full time)
because the deal so was good they did not check the details too closly. It fantastic now to go into a bank and ask them why I should lend money from them
recovery
I bought my first property in Tauranga in 1984. Interest rates got close to 20%. Mortgages were paid monthly not fortnightly. Every second pay (as a student nurse) went on my mortgage. I thought it was heaven if you got three pays in a calander month. Now people cringe when interest rates go up 0.25% As a single, white female I had a heck of a job trying to get my first mortgage. I now get pleasure in going into a bank and asking them why I should choose their product over the opposition’s. Times have changed. []
The interest rate he was charged was 24%!!! Which was OK, cos his yield at the time was 27%. Then rates came down, and his return got better and better.I remember those days also fibejebe……..LOL, We are showing our ages ……LOL[
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