Forum Replies Created
Hey Matthew,
Sounds like you have some good ideas. Questions for you. Where do you want to be and how soon do you want to be there ?? The options you talk about are great but different. Which one will get you from your A to B faster. Also why not consider using Investors for your wrap money and then allow you to do the deals like Rehab’s…
Just my rambling thoughts. Hope they help.Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithFor Wraps / Vendor Finance the Jphn Burley forum is interesting.
http://www.mastermindforum.com and go to the Burley site.
Hope this helps.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithWith Number 4 in the barrel it wuold be a good time to start hunting for an Investor pack maybe. Most of the big lenders offer reduced interest etc. in a package. I would suggest talking to a mortgage broker and asking them. For example I know that ANZ offers their LOC at around 5.97%….worth a look.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey Rachel,
I know I personally use David Barlow and find him excellent. Definitely worth a call on 3229 0494. HE is also one of the more reasonably priced solicitors outr there.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithTry Dale Gatherum-Goss at http://www.gatherumgoss.com. In Melbourne. Found him good and open to different approaches
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey guys,
I am not in Perth but I know Rick Otton was over there recently and was talking to Govt. etc about possibillity to Wrap in your lovely state. You may want to track him down and or contact him through the vendor finance association.
http://www.financewraps.asn.au
Hope this helps.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithSecond steve’s comments. Well done Rossco. I read this thread earlier this week and was so impressed. You are a success already. Hope your momentum continues and the deals keep on flowing.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey EOD,
My purchasers contact Baycorp advantage and get their own credit reports. I look at those but don’t keep them.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey Peter,
I suppose in conventional terms you need 5-10% deposit and the appropriate amount of stamp duties to cover costs. The numbers will vary on what you want to buy. You may be able to use equity in your place to purchase another ??
The other option is for you to get creative. How can you do the deal with no money down ?? To find out his sort of info you need to find out more about vendor finance and creatively structuring your deals. Steve’s kits go into this and provide valuable info on the basics of property.To start Peter work out what you wnt to achieve in the end. Begin my writing that down and then actively working toward that. I spent about 5 months doing research both physical (pavement pounding) and intellectual (couldn’t read enough) before my first deal. I feel this has given me the right start so when I fired I felt a small amount of security….luckily that has grown in time… a little bit. I still read anything I can get to broaden my perspective and I suggest you start there.
The library has great authors who have great info.Hope this helps
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithMichael,
When you say wrapped do you mean instalment contract or Lease option ?I would check with your accountant but I use instalment contracts and I cannot get those deductions as I no longer “own” the property.
Enjoy
AD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey Spooky,
Very sage words from Brett. How you are doing is so subjective without a benchmark. Where are you going and where do you want to end up ?? All things considered though you seem to have done quite well if your aim is to amass capital gains based property . Well done.By the way you don’t need us to judge you. My guess is you are your harshest critic (if you are like me). A question for you ……how do you think you have gone ??
Look forward to your reply.
Enjoy
AD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithEdited by – [email protected] on 28/11/2002 11:24:01 PM
Hey Christine,
Firstly no question is Daft. What is daft are those who choose because of many excuses not to ask the question and recieve help. Good on you for having the guts to seek advice. I started asking questions on this forum when it began and have learned heaps as a result of it. (I’ve also done a few deals on the way).$60K is a nice start and my question to you is why do 20% lends. If you did 10% lends you could do twice as many deals. Obviously there are other costs involved but remember what your aim is here. What are you trying to achieve ? Are you trying to become financially independent in the shortest time possible? Would buying 3 cash positive properties be better or worse than buying 6 cash positive properties ???
For me I am a simple point A to point B person. I try and do things that will get me to point B as soon as possible and if I only do those things and more of them more frequently then I will get there sooner….yippee !!
If you have a finite source of money you should try and stretch it as far as possible and as far as you are comfortable.
Talk to a mortgage broker and see what they recommend when you tell them your goals.Whatever happens Christine write down your goal and remind yourself constantly of it. Only do things that will get you there sooner. The best thing is you have just made the first step and while some of the others are hard you are on the path to freedom.
Keep on marching and never say it cannot be done, but rather ask How can this be done ??As Steve said in his seminar series…
If it’s to be ……It’s up to me.
Go get’em Christine
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey Dan,
Tough call to make without all the facts but it really depends what you are doing and wanting to do. Are you buying another house to live in or are you going to rent? What is your aim in life to build cashflow or grow capital gain? On face value 50K in the pocket is nice (no tax) and it may be needed to purchase your next house. If you are going to rent it provides quite a few 10% deposts getting you into more than just the one house that you currently have all the money tied up in. If it were me I will always take the easy $50K but then I would invest it to make it turn into 2-4 properties that make me more money. The upside for you Dan is that you have a few options and you need to decide where the end point of the journey is and only do things that get you closer to that point.
Hope this helps
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithTop discussion and great points.
For me I look at this way. I currently pay 8% flat for all mgt. They collect all the money, chase people if they have to, organise quotes for repairs, tenant the property, etc.
At the moment they have about $600/week of rent they manage. This will soon be 900+/week due to recent purchases.
so on 900 I pay around $80/week in mgt fees (including GST).
$80 per week is $4160/year. This may seem like a bit of dough but on the flip side I don’t have to deal with all the little problems. My time is very precious to me and so what time I have free is spent out there doing deals. $4000 is nothing when on the average deal I am making about $10-15K on the buy and they are paying for themselves as they grow (cash positive).
As another example my first wrap generated $3500/year with a back end of around $10K, these are average numbers for a wrap and I know the next one will be much sweeter. I guess I see the money as being cheap because I don’t want to waste my time doing property mgt things when I could be doing deals that make more money.
I was very tempted to self manage but I am glad I went this way as now that I have 5 (nearly 6) properties under mgt the numbers get harder as you get bigger. I currently have 8 properties and I want to achieve a minimum of 17 by tax time so for me to do this I must spend my time wisely.
8% to me is a small amount to pay for a professional to manage my tenants for me when I am making a profit by growing.
Steve always says to look at leveraging your time and knowledge. To me this was an easy lever that enabled me and still enables me to do more deals.
It does take time though to find a good property manager so spend that energy and find a good one.
I also used a property manager form one onwards because I wanted to see how they handled my sole property because if I want to buy many more then I want to feel confident in their ability with one.Hope this helps.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey Dave,
Great question. The common belief is that one is mutually exclusive to the other….in saying that though of the 6 properties we have bought so far 5 have gone up over the last 3-6 months with the lowest gain of around 15%. The best has gained 30%+ from my purchase price. Here is an example. Bought one for 55K and rents for 120-25/week, current resale value would be at least $72K (more likely $75K but I am conservative).The upside of this one is I only bought it last week and won’t settle for another 50ish days. I have others I have bought early on in my journey (6 months ago) which have all gone up nicely.
So the answer is in my opinion and extremely limited experience …… maybe. I guess it depends where you are buying and what is happening in the area to encourage price growth. If you buy correctly you may get both but the question you have to ask yourself is what do I really want…growth or +ve cashflow. The end you have in mind should determine your strategy. I am looking at providing a cashflow that will pay off the properties I own such that I can choose to retire in 5-10 years. For me then at this stage cashflow is king.
Hope this helps Dave, it is only my opnion and I am still somewhat of a newbie.Enjoy
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithGotta go with Felicity and Brett on this one. Firstly Dale’s book is excellent and he is an excellent accountant who is very familiar with Property as an investment. Secondly you do have to build a team you are comfortable with. The people on your team will cost you money but if they are worthwhile they will save you or make you a whole lot more. If you need help with sugestions ask around as you will find people are always glad to share their knowledge and contacts on this forum.
Hope that first property catapults you into dozens more.Enjoy
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithLinda,
Another thought is to offer them an inducement to leave. I know this may seem crazy as they already have cost you money but would you rather this drag on longer or you offer them $500 to leave by a certain date. I know Steve and Dave have had similar experiences and they have used such a tool. Maybe they can elaborate.
The guts of it is you want the property back to retenant sooner ratehr than later so maybe you where another cost.
Another thought where is the property manager in all this ?? Are they helping if not they should be.Hope this helps.
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHey there Dave,
Welcome.
I guess you have to feel comfortable buying whatever the cycle. I know I am still comfortable buying, but only when the numbers work. I picked up a house last week for $55K which rents for $120/week. I could resell the house for $65-70K tomorrow but why would you with a cash positive deal. A lot of people are paying top dollar for property and may find their prices being rather stagnant for a while or maybe the market will continue to trundle along. Either way there are still deals out there and they just have to be found. I know I personally ignore most commentators on property as they are merely that, commentators. I look at every deal and see if it justifies it’s own purchase. If that is the case then I might buy it. Reality is deals are in evry stage of the cycle, they are just harder to find in some cycles. Whatever happens don’t end up being like the people who are waiting for the perfect time to buy. There is no such thing but there are opportunies all around us. I hope this helps and most of all enjoy your experiences.Enjoy
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithSorry Wayne I didn’t meanto confuse. With Wraps there are two ways to make money and they are the monthly cashflow and the back end profit.
Here is an examlpe to explain.
If I buy a house for $80,000(10% deposit) and wrap it to someone for $100,000 (5% deposit). My interest is 6%pa and I charge 8 %to my new buyer. The difference between my repayments of $463.90 and the clients payments of $733.23 is $269.33, this is my cashflow. The back end in this deal is $20,000 which is the difference between my $80,000 purchase and the $100,000 resale.Hope this clarifies for you.
Enjoy
AD
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithAre you an investor or looking for investment ? Which part of the world do you operate ?
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney Smith
