Forum Replies Created
Another one to add to the list is ” The One
Minute Millionaire” , It may sound tacky but it is a very good read. Full of good ideas to help shape your paradigm…… I really enjoyed it and have given a few away to friends for encouragement.
Worth a look in conjunction with Big Bad Bruce’s recommendation…..[}
]Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.” -David Brink
Hey Wellyboot,
Welcome to the forum …or as Bruce says….PI.com []Just a thought as to what you guys shoulg set up… It really depends on the situation and the money split. You should speak to a solicitor to consider the four main approaches.
1. Form a company.
2. Set up a Unit Trust.
3. Do a Joint Venture.
4. Form a partnership.All of these have pro’s and con’s and the best person to see would be the solicitor and or accoutant. It may seem like a lot of money but it will be more expensive if things go wrong.
As to LOC or not to LOC…….
It certainly brings the costs down if you uses your own money but it also means a lot fewer deals. I use the LOC for deposits through a broker. Another clever way people use LOC is to buy the place “cash” and then be able to negotiate a lot tougher. After purchase they then refinance the house and pull their money out.
Hope this all helps.
Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David BrinkWell this topic seems to have stirred the pot. I may be one of those naive people you care to talk of Ireland but I am happy. Like Mike I haven’t seen any of those people you are talking about but hey maybe they are all waiting to evolve.
I guess what disturbs me most is that you wish to criticise but in a negative manner. You have your opinion and I have mine. Good. I will not shove it down your throat and vice versa. From what I understand of this site it is about sharing information to try and educate each other. I guess your point is loud and clear and it has given us something to think about. Each of us is responsible for our own paths we tread and must plan for eventualities. You have given us something to think on. [?]
I have a good friend who has been investing in property for 20 years and he started in “cheap” properties and he still has them all. 53 properties later he still loves his cheapies that are worth far more now than ever before.
I guess I will happily follow such a path and see where it takes me. If you choose to follow another path…..great go for it and I hope it does you well. You sound very savvy with the market and I am sure you will do well so best of luck.I may also reach a point where I feel it is no longer worth the effort and sell out but if I do I will do so for myself and allow others to make their own decisions which will be right for them.
And Tails you first said that you have found nothing on this site that makes you want to go out and do deals. Great. That is called an outcome and if it works for you ….excellent.
I hope both of you do well and enjoy what you do. Wishing you abundance. [
]Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David BrinkP.S. thanks for the bricks. [8D]
Hey Gun.[
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To me yield is the amount of return that you recieve for your investment. I always think of it in Farmers terms. If the farmer plants a crop he either has a high or low yield when it comes to harvesting time. this yield is merely how much the farmer gets back for his initial ivestment of time and seeds.
For us yield is how much we get back for our investment.
eg.Purchase cost : $54000
Rent/week : $140
Annualised rent : $140 * 52weeks = $7280Therefore my gross yield is 7280/54000 * 100
= (APPROX) 13.5%Now this is a gross yield.
To calculate my nett yeild I would factor in rates, mgt costs, insurance, repairs.
For example,
Rates : $1600
Insur : $ 450
Repairs : $ 300
Mgt Costs : $ 560 (incl GST)
Total : $ 2910
therefore my nett yield after expenses is7280 – 2910 = 4370 / 54000 * 100 = 8.1%
Then after interest of approx 6.1% I am looking at cashflow positive about 2%. Nothing to shake the earth but it doesn’t cost me to do it. And excepting unforeseen hiccups it is a no brainer investment for me. So I may only walk with $1000 per year but it is one thousand I didn’t have last year and the property has gone up since purchase around $20000 ( I settled 1 month ago and painted an polished the property myself – with a little help from a friend).
Hope this helps YG.
Enjoy
AD [:0)]“A successful person is one who can lay a firm foundation with the bricks that others throw at him.”
-David Brink
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