Hi ResiWealth,

I checked that topic that you were referring to but I dont think it answered all of my questions.
I think the discussion consisted mostly of contributors attacking other contributors.

Also, sorry to sound to ignorant as I am new to this site and currently not living in Australia. I am looking to form a private REIT in the US and form strategic alliance with local developers in Australia.

I just thought I post a simple question here just to get a feel instead I get sarcastic questions being thrown at me.

Al

Hi KP,

Thanks for your advice in regards to using private funds.

Yes I do know a few hard money lenders and private lenders but unfortunately they are based overseas. I hardly go to banks when I want to borrow money for realestate deals in the US. I have been asking around for hard money lenders here, I think there is one in Sydney CBD that offers no qualifying finance at very high interest rate of 10-12%. I think they get their money from private investors. They are only willing to lend 60-65% of the purchase price. I will still look around for some more lenders in the same category so that when the time comes I would be able to negotiate a better deal if I can generate a bit of competition.

Kindest regards,
Allan

Thanks Simon for your reply. I am still learning the rules when it comes to investing here in Australia. i am trying to adapt some of the strategies that I have used in the US here.

Really appreciate your help.

Kindest regards,
Allan

Hi Westan,

Sure I’ll let you know what I have found about property development through research.

My goal is to build or renovate multi-family units then renting 75% out (hopefully that would be enough to cover expenses and give me positive cashflow) and then mortaging out for another project and the rest I’ll sell for quick cash provided that liquidation cost is not going to affect my net profit margin too much.

Hopefully my plan will work out. I am pretty open to explore the US market for opportunities too. There are lot of foreclosure and repossessed properties there that you can get for good bargain and interest rate is pretty low at the moment. If you are interested in the US market check out Florida and Arizona state.

Kind regards,
Allan

Thanks so much for replying back to my message Kay Henry.

Thanks for telling me about the Residential Tenancy Act. I am still on the research phase of things. I want to get a clear understanding of the property laws here in Australia before I implement any of the investment strategies that I have used in the US.

Thanks for the advice Simon. I’ll definitely give it a try.

Actually, one of the deals that I have structured in the US using creative financing involved not just the seller but I got the realtor involved too, i asked her to leave some of her 6% commission on the deal and I’ll pay her 7%interest on her commision and luckily she agreed. I had to use multiple loans ie 4 loans to be exact to close on the deal and at the end it is still positive cashflow, it is only a few dollars positive income every week but hey cash is cash and it only took me 3 days to structure those loans.

Got any advice on what kind of creative financing strategies I could use here in Australia?

Thanks.

Kind regards,
Allan

Hi Quasimodo,

Thanks for the advice.

Well, in regards to your comment “Seriously though… your brain will give you the answers to the questions you ask… A better quality of question may be “*how* do you buy positive cashflow property in Australia?”. My reply to that is I already know how to structure deals that will allow me to acquire positive cashflow properties. The only reason why I am asking if it would be possible in Australia to acquire positive cashflow properties is because I am not originally from Australia. I am originally from the US therefore more familiar with the market there and most of my investment properties are in the Central Valley, California. USA. I also know for a fact that in some areas of the US it is impossible to find positive cashflow properties no matter how well you structure the deal therefore people trade off appreciation over cashflow. I know of two ways that have allowed me to get possible cashflow properties 1. Rent return of .175% 2. I could put some cash deposit on the deal instead of using 100% financing.

I would be very interested in finding out how you buy positive cashflow properties in Australia.

Thanks again.

Kind regards,
Allan

Hi Peter,

Thanks for the quick reply.

Well, having my own home is probably the second most important thing to me at this present time as my first priority is to acquire more investment properties to build my portfolio. however I would like to own a house to live in the very near future, let’s say 3 – 5 years time.

In regards to how long I intend to live in one place, well personally I dont mind moving from place to place, if I feel that there is an opportunity in another place, then I would go there in a heart beat.

I currently live in Sydney but as I said, I’m willing to move locations if I have to inorder to reach my financial goals.

I do have some idea about how to solve my problem but not sure if they are viable or not. Maybe you could give me some feedback on the solutions that I came up with? I was thinking of maybe investing and getting a home at the same time either by buying a multi family home, and either move into one of those units or I could get rid of one of my tenants in one of my properties, and move in there, and rent out the multi family units, and still have the same income.

Any feedback would be of great help.

Thanks again.

Kind regards,
Allan