Re: the 11 second solution.
I have very recently purchased the book – 0 – 130 properties and I admire the way it is written and the information contained within.
I have scanned several thousand properties now with the 11 second solution in all areas of Victoria and beyond and am yet to find a property that comes even close to passing the 11sec solution.
Do they still exist? Could anyone advise where they might be found? Is prevailing market conditions over- inflating property prices?
Although the book makes alot of sense and provides much valuable information, the advice comes to a crashing halt without the ability to find a property that will first meet the 11 sec solution. Expamples in the book of property purchases in Ballarat are easy to understand but do not translate into actionable investments because of the advertised property prices in this area. It is written that over 90% of residential properties will be cash flow negative, has this figure changed to 100% now?
I would like to make use of the advice in the book but am at a loss to see how this is possible without finding a property that will meet the 11sec solution criteria.
Hope anyone can help,
Gerard.Where are you looking? Bide your time for soon enough the good deals will come.
Gerard
I can understand a newbies point of view in this case, it is hard, but there is more to finding a deal than searching the internet. Good deals are made as well as found.
As for Realestate.com I was looking there last night and found maybe 3 houses and a very interesting block of units that met the 11 sec sol even before negotiations begin.
The houses were in a victorian town of approx 3000 ppl, the units – dam I can’t remember where they were, oh well I am just going to have to search them out again.
The market is tighter now but the deals are there, and spending time hear and absorbing the content will help you find them too.
Remember the book is an account of two mens experience and is there as a guide to being a successful investor aslo. Ultimately you will develope your own strategies and measures.
Cheers
Leigh K[biggrin]Thanks LeighK for your advice and for giving me some hope to keep looking. After further going through the forums I found some suggestions for places in Australia like mt.isa and maddington where I found some properties that do meet the 11sec criteria so at least I know they do exist. I’d be concerned though about investing in these areas because they are so far away from where I live and therefore hard for me to keep control of them.
As you suggest I’ll keep looking and I realise also that it is the buyer who should really set the price rather than the seller.
If you can remember any places in Victoria that might be in this boat I would love to hear any suggestions.
Gerard
Hi Gerard,
I was in your exact same position about 3 months ago… Read the books, applied the principles, couldn’t find anything that worked the 11 second rule that wasn’t beyond the black stump…
I now have three positive cash flow properties in New Zealand returning from 11.4 to 15.6% gross.
I know you said you discounted Mt Isa and similar areas because they were too far away to control…But what’s to control? Isn’t that what the rental manager is for?
Forget about the need to actually touch and see the property… If the numbers work and you’ve done as much research on the area that you possibly can and you’re satisfied that the risks are about as low as they can be… Then do the deal…. After all it’s business not personal.
I am planning to finally get a ‘look’ at my first 3 properties sometime early next year… By then I’m hoping for enough capital gains to use the equity to buy another 1, 2, 3, or more positive cash flow properties in NZ.
Do your research, make the numbers work, listen to your gut reactions and dive in… Now is as good a time as any to get started.
Good luck, Barry.[thumbsup2]
Barry,
Just curios how did you find your NZ properties if you haven’t seen them before, did you use someone like westdan and what was your experience ?
thanks.Barry,
I’d too be interested in your experience in purchasing properties without physically seeing them. It sounds as though its working out for you. Was it a tough decision to do that and how did you approach it.
All the Best
Hi
I live in Western Australia and purchased a unit in Brisbane some 4 years ago.
Why? because it was a good deal and I “looked at it on my PC plus a video which was good plus a folder containing floor plan, more photos and have an uncle over there who gave it the thumbs up, plus local advice.
Ultimately you have to check it out, do the homework and have a good property manager,any urgent mail can be sent for $10 overnite, e-mail and phone does the rest.
In practice over this time I have had to arrange a few repairs, to keep tenant happy, plus I want to keep property in good shape.
The rental statement arrives every month, tenants usually have either 6 or 12 month lease, I think it has been empty for a total of just over a week in 4 years.
Make sure you check things out throughly.
cheersRazor Ray,
I’ve bought 2 properties sight unseen, even though it can be seen as a bit of a property no-no by some. With one of the properties, I was completely familiar with the area, and knew the stratch of that particular road, so when a place came up there, I just bought it. Of course, I did the “property” due diligence to purchase, as opposed to the “location” due diligence if I didn’t know the place.
For the other property, I began with no knowledge of the area. I had seen other similar properties for sale there, and really started doing some research on the area. Initially looking up “blahtown crime” “blahtown” population” and then broadening my search until I had read everything on the net about the place- I probably read 300 links from google.com.au, and read every edition of the local online newspaper, so I could get a “feel” for the place. I then had the confidence to feel like I would buy there. I rang up owners of the IP’s that had been for sale online (the old ads were not yet taken off the net but had been sold) and tracked down who I would have to find to be able to purchase one of the properties. I asked to be informed if one of the properties came up, and voila, in 2 months, one did. I got sent a large number of photos, did my “property due diligence, and bought it.
From these checks, I now know about the history of the place, have checked maps of the region, and pretty much like I feel it inside out.
There are so many ways to approach a new location- you can find out all about the “concrete” aspects, such as physical features, and other demographic stuff, but it is also good to be able to get a “cultural feel” of the place, which often, the local rag can give you. They can include the types of activities that go on in the town… for example, what do people do for recreation? eg horseriding, on the one hand, or recreational shooting, on the other. It all depends on what you’re looking for. I also check out the politics of hte local member, to see what kind of town it might be. Everyone’s looking for different things, but to me, I’d rather know as many aspects of the place as I can- there can never be too much information, in my mind- only too little.
kay henry
You must be logged in to reply to this topic. If you don't have an account, you can register here.
