To all you sophisticated investors out there who have had the fortune of collecting numerous properties on the investment trail, lets here your story about Education vs Real Life.
We all know that the key to investment success lies with knowledge, but as many people on this site are new to the game and have read many books, been to many seminars but still think they don’t know enough to get in the game, lets hear from you people who have done it successfully and what they feel is the right amount of knowledge before taking that leap of faith. Yes, everyone learns the most once they are actively investing but one needs a good knowledge base first to not make a fool of themselves, financially that is.
C’mon you guys with real experience, lets make this a constructive post to help people ascertain where they are with their knowledge and what they need to aim for before beginning the journey.
Cheers
first property age 21, second 23, third 25.
Starting slow but getting there.
No eductaion on finance. Just read All the rich dad poor dad books A++Hi Waratah
For me and many others I know, we all made huge mistakes on our first or second IP purchase. Those who go on to be successful property investors profit from the mistakes. Those who don’t learn, end up thinking investing is stupid and property investing is a waste of time. There doesn’t seem to be any middle ground.
So, my advice is to learn from books and seminars as much as you can before you buy the first IP, but be prepared for the tremendous amount of knowledge you will gain from making your own mistakes. There are so many and most of us “experts” easily overlook that most people don’t know much of what we know because for us some of it has become automatic.
Is that the sort of advice you are after?
Mum
First Property at age 25 now owe 21,000 property valued at $170,000 2nd property at age 34 purchased at $100,000 sold at $170,000 age 37. Could pay off first property tommorrow if I wanted to. Having trouble gaining a job (just over broke) to allow me to borrow for next property.
Applying to do a pre apprenticeship in Carpentry and then in 12 months doing an apprenticeship in Carpentry. Can see synergy in this rather than trying to find a non existent job with my useless piece of paper from University (Degree). Once employed will have enough income and equity to borrow and buy next property for next boom .Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I got my first property at 21 or 22. I did not know what I was doing, but I was lucky that the first one has turned out to be quite good. I still own it.
I have also read Rich Dad Poor Dad, and that is what really got me started. Since those days I have spent quite a bit of time reading other books and learning from property forum web sites like this one. They are a good resource.
However it is easy to over analyse and end up doing nothing.
Andrew
http://www.rentmaster.co.nz – Property Management Software
http://www.RentalAnalyst.com – Property Analysis SoftwareCan I reply a little differently…
You could read all the “learn to swim” books out on the market. Until you jump in the water and try to apply what you have learnt you wont know if you were ready. Then you get out, read some more and jump in again.
The first time there is no right time, but you can certainly jump in with floaties so you dont drown.
Ask an experienced investor to look at the deal with you and then take it.
My first was at age 24, second and 3rd at 27 and now I have 9 at 33.
Mat
Mathew
http://www.arrttt.com
Custom Oil PortraitsI have been investing in property seriously for the last ten years, i bought my first property at age 30 (1990) purely because my parents were harping on about buying in to property. I got married in 92, and my wife also had an investment property also. We purchased our third property in 93. Did not do much between 93 and 96, then changed jobs and shifted to another town, we endeded up selling 2 of our investment properties because we did not know what other options were available, and thought we could not afford them.
I met a co worker in 96 who had a portfolio of 4-5 properties, and it was this meeting with him that opened my eyes and mind to investing in property. I began to read as much as i possibly could, surfed the net for useful info. The biggest problem that my wife and i faced, was the idea of being in debt for so much, once we got over that fear and released the potential of capital growth, equity and cash flow, we jumped in full bore whilst i was earning good money.
I bought as much property as the banks would allow between 2000 and 2004, in that 5 year period i sold 3 properties and bought 8 investment properties including one which was to become our principle place of residence in the future.
Had a quiet year In 2005, quit my mining job and moved in to one of the investment properties on the coast. Currently only work 2 days a week and my wife retired all together, at least that what she tells me. We also purchased another 2 investment properties, and sold 2 investment properties.
This year i have bought 3 investment properties and sold 3 investment properties. This year 2006 was topped off by winning a water front home on the canals on the gold coast.
I currently hold 10 properties with just over 1 million debt, i no longer worry too much about debt, as we believe we have structured our investments reasonablly well. I still have trouble getting finance though, due to a job that pays commision, and have been forced over the last few years to look for other lenders and low doc loans. I belive there many degrees of wealth, but there is only one degree of broke, so if you cant afford to pay back a $100 to may as well owe a $1,000,000.
I learn something everyday from a wide variety of people, and this forum is one of the best learning tools available to a investor, whether they are experienced or not. Had i known about this site when i first started, i am sure that i may have done things a little better and more profitable.
Thanks
Wayne
you have to make a decisive action at some point.
procrastination will only delay your rewards.
In my experience, jumping in before you feel ready results in only one real result……………. real life correction and the best education available.
…hey, you will never know it all. But in time you will regret not taking action earlier. This I promise you.
Just do it!!!!
Live, Learn and GrowLifexperience
You must be logged in to reply to this topic. If you don't have an account, you can register here.
