Hi all,
I am a new starter, obviously read Steves 0 to 130 properties book and here i am all excited to begin my adventure but obviously afraid to take the first step.
Let me introduce about myself, i am Aki 30y working in IT. Both hubby and myself are contracting through our company trust pty ltd. I would like to start small with say 20k deposits and grow positive cashflow properties.
Now questions for you is.
1. Is taking loan on this company trust is better? Or create a new trust just for the sake of properties is better? ( i assume its hard to get loans for new trust as it doesn’t have any income history)
2. For 20k deposits are there any real positive cashflow properties that you had experience with?
3. If so do they grow in capital growth quickly? Whats the annual percentage growth ?I would obviously like to follow Steves theories. But how many have you had similar experience? Or close enough?
I like his numbers 130 properties in 3.5yrs.
Is it really practical? In about my budgets for deposits?Pls help.
Hi Aki
Welcome to the forum and hope you enjoy your time with us.
Couple of quick answers:
1) No financing a deal in a new Trust is not difficult if the Trust was set up purely as a Holding Company.
2) Unless you are buying at the lower end of the market you wont finance a deal with a lvr > 90% so 20K will not be sufficient as a deposit for each property. Going to need minimum of 10% of the purchase price plus acquisition costs i.e stamp duty, legals etc.
3) Each area will grow at different rates of growth so not able to answer that for you.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Aki,
Welcome aboard. From your words, it sounds like you are wanting to buy lower cost properties with a positive cashflow (same as Steve did years ago in Ballarat). Those days (and prices) may have gone, but the idea is still possible – see this post :-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697977Darryl has done a pretty good job of emulating Steve – and he only started in late 2011, so just 4 years ago.
Also, you say “I like his numbers 130 properties in 3.5yrs. Is it really practical? ”
Steve had a team that allowed him to do 130 properties in 3.5 years – with a smaller team, you can still do well (as per Darryl above).Since financing is one of the biggest hurdles, check out this thread:-
https://www.propertyinvesting.com/topic/4404268-30-properties-before-25-finance/Benny
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