Forum Replies Created
Hope all goes well. Time to take a small break all in the aid of medical science.
Be well.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einsteinhey there…..
Welcome to the forum and just remember that whether things fall into place or not is entirely in your hands. The more successful people I meet and the more successful deals I do I realise that you cannot wait for opportunity you have to be out there chasing it down. It isn’t always easy but it is tremendously rewarding and you can do it. Take your problems by the scruff of the neck and throttle them into solutions. Hope you enjoy the site.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinDue diligence is highly underrated. Great tale Steve.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Scotty,
If you go to the search function and search using “sec solution” you will find heaps of hits. Any problems let me know.
Use search for all words and all in everything else (as you will find it on the page).Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWelcome Scotty.
Do not hesitate to ask any questions you have and the bright bods here will give you there opinion and help wherever they can. Good to have you in the group and I’m sure it will greatly accelerate your learning as it did for me.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinMaybe hee in Oz you could put a caveat on the title so nothing can be done without your knowledge.
Just an idea.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWorth checking ot mate but I think you will find it is of a similar nature to the deal Hilary was offering. Having lived in that area I can gues exactly where that would be and it is more than likely in the caravan park. Not neccesarily a bad thing but as you said a little more due diligence. As to aspley it is by no means a toxic waste dump (no need to fear). As a whole Aspley has experienced growth over the last 2 years of around 60-80% in some parts and across the whole it has had good growth. (Mum and Dad still live in Aspley and have done very well).
Hope this helps any more questions fire away.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWhich part of Australia are you in Nadine ?? People may be able to give you more direct answers if they know where you come from.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinSorry Nathan you be right I should have read more carefully. Shouldn’t stay up so late……
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinWell Done Anna,
Sound slike you got some good deals there .
As to the question of greed a few people raised. This was a deal that the other party was more than happy with. The other person has the choice to either earn -ve returns in the share market or 4-6% in the bank or for a very short term loan (with me) earn 6.7% or an anuallised return of around 173%. The reason they do it is because they can see their money go up for a change (umlike the managed funds).
The other side of the deal is that I could have funded the deal myself and taken the whole pot but I have a strong belief in sharing wealth and also in the abundance of wealth. The upside of this deal for me is that the other party is happy to keep doing deals so I know can run my reno properties without too much cash from me. the agreement for the next one is that he fronts the purchase and I pay all reno costs and manage the deal with the same split. A business relationship now existswhere the other person feels comfortable with letting me use their funds creatively.We will continue to do JV’s over the rest of the year with any reno’s and hopefully we can use that $100K again and again and make by partner a lot more money.
As to there being more to it, we have done one deal before this one which is up for sale now where he fronted $50,000 and I put up $50,000 and also managed the reno. For this deal he will get $10000 on his money which has been out for 3 months. Again he is happy because he has returned 20% annual return on his funds if he does nothing more with his money. We will do more so that will grow.I am a strong believer that there are lots of people out there who would be happy earning 20% plus on their money and they couldn’t care less how much extra you or I made.
There are two option I can offer my partner.
1. A straight 10-15% return on funds used eg. I borrow $100000 and do what I will with it. (Mosts people would be happy with this and to be honest many retirees would be happy with 10% at present.)
or
2. Offer him a chance to eat some of the pie (1/3)and ern more. On an annual basis with the $150K he has already earnt $16K or around 10.7% pa. (Pretty hard to find that in a super fund at present.)
If we continue doing deals and say we do another reno then he will earn around $10K again and that sends his return to 17.3%pa. He has chosen the path of some risk to greatly increase his potential returns.
My partner is as happy as a pig in mud. All he has to do is write a cheque and then get one back a few months later with interest.
I find all the deals I manage the reno and do some work myself (limited) to minimise cost and maximise profit so his income is truly passive and returns good.
I also believe that my knowledge, contacts, and creativity are being rewarded well.
We both win so it is a good equation for us.
Win-Win is the name of the game and that is where I am. This arrangement may not suit you and that is good because you are a step closer to finding an arrangement that will suit you.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Sooshie you are more than a midwife to all of us here.
The only poroblem with the maths that I could see is that $230 /2 =$115, so the final number is $115000.
Seems good returns but I would guess there would be a lot of due diligence necessary.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Leigh,
When divided by two the property gives a 10% gross yield. This is a sum that is thought to be sufficient ( in rough calculations) to cover all costs and put money in your pocket. Saying this it is merely step one. For example if you found a property for $85000 that was $20000 under valued and the rent was $160 would you pass it up ??? Maybe for some and maybe not for others.
Thsi rule is a great filter that gives you the chance to quickly scan sales and find properties that are close to a 10% yield and therefore cash positive.If you found properties where dividing by 3 works all the better as this only increases your gross yield.
Hope this provides a little clarity.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinSteve,
As always great reading. You hve touched on the dream most people have of being able to choose to work less. That should get a few to bit the hook.
I enjoyed the read and look forward to the book.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Proudy,
If they are good tenants maybe be a little creative. Depending on returns, etc…… maybe you could put a kennel in for them without rent change. Offer them an upgrade in their property. For example… I realise you are going to be losing some yard space but I would love to spend $500 on the property. What would you like me to spend it on ? Give them the choice as a placation method. In the end you are still improving your property but also their lives and contnentment.Hope this helps.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Susie,
keep on looking as there is a solution out there you just have to open the door yet. Sounds like you have the right atitude though you have not let it get you down. Keep on kicking….Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Chi,
Welcome to PI.com[
] (as Bruce would say, sorry Bruce I love the tag).Are you based in the USA ?? There are quite a few good posts about where to begin if you search under such a heading. Quasi has some very good points and I will only add that you should try and continue to educate yourself in this area and even try and find an experienced rehabber and offer to labour for free. Education first hand would be awesome for you (or anyone).
Hope this helps.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinC,mon Guys and gals someone must have some good news tales to tell about recent deals……
Share and encourage !!!!!!!Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Quisaimodo,
We’ll have to catch up when you land in the great state again. Let me know when you are back.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinIt certainly is Sooshie. Well used to be. She was running for a senate seat in the NSW election the other weekend. Don’t know how she went though. So technically she is no longer Qld’s.
As to youe point Alex. Have a look at some data for that part of town and ask yourself if things have moved already. Talk to the agents and look in their windows to see how much things were and how much things are now. I have bought eight properties out this way and resold 2 and the market has moved. I guess it is up to you to go ot there and see if you still think it is worthwhile buying.
If you want to chat about the lovely Ipswich. Let me know.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHey Gerard,
I have heard that PIA from somersoft may do this sort of thing??? Don’t use it myself though.
Hope this helps.Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
] (as Bruce would say, sorry Bruce I love the tag).
