Forum Replies Created
For the person who asked; no, I didn’t inherit the four properties. I bought one, negatively geared as per Jan Somer’s model back in 1985. This built up equity over the next five or six years to the stage I could buy another property without any deposit… I used the equity in the existing property and bought another one without any additional funds input by myself. This was also negatively geared but on a block just asking to be developed (until GST came in and buggered the cost to build by a rather large margin…. 40% cost increase in one year with the same builders). I found another property the same month that was positive cashflow and bought it on minimal deposit. Then came the latest property explosion which has meant all my properties have built up a stack of equity. I used some 12 months ago to buy another positive cashflow positive property (in the Margaret Lomas style this time) and in the last 12 months have gained a stack more equity…. this is what brought me to the CoCR question in the first place. If I can use my existing equity to buy a property that is at all cashflow positive, then it appeaared to me that the property had an infinite CoCR as I’m using equity to buy it…. the only tricky point being that some of the equity came from P&I loans on the initially positively geared properties… very confusing…. just to add confusion, I recently attended Steve’s 0=130 seminar and a Maragert Lomas seminar in the same month…. Steve spoke about CoCRs all day, Margaret indicated that they are irrlevent for a cashlfow positive property????? Maragaret is very apporachable, so I intend to ask her more about EXACTLY what she said about CoCR… will post when I know
Hi,
I learned a thing or two from Steve’s book and have used it to set up a service whereby I can refer you to sources of positive cashflow properties in Australia. Some of these properties are more positve cashflow in the Margaret Lomas style (i.e. taking depreciation into account), are in areas expecting good growth and are available right now.
If you would like to take a look at these properties, please email me and I’ll put you on the mailing list for properties as they come to my attention.
Cheers,
Phil
Hi,
I learned a thing or two from Steve’s book and have used it to set up a service whereby I can refer you to sources of positive cashflow properties in Australia. Some of these properties are more positve cashflow in the Margaret Lomas style (i.e. taking depreciation into account), are in areas expecting good growth and are available right now.
If you would like to take a look at these properties, please email me and I’ll put you on the mailing list for properties as they come to my attention.
Cheers,
Phil
Yes, and it is very poorly written. I have shown it to other educated people and no-one has yet been able to understand it properly. I tried to contact Chris on multiple occassions and although his staff took messages, I never got a response to my queries…. very poor customer service when you compare that to the level of support given by Steve and Dave to people who buy things from them. In the end, his people told me that I should fly to Sydney and make an appointment to see Chris. I said if he couldn’t be bothered answering a simple query from someone who shelled out $100 for his crap manual, then I hardly thought it worth my while.
Hi,
I learned a thing or two from Steve’s book and have used it to set up a service whereby I can refer you to sources of positive cashflow properties in Australia. Some of these properties are more positve cashflow in the Margaret Lomas style (i.e. taking depreciation into account), are in areas expecting good growth and are available right now.
If you would like to take a look at these properties, please email me and I’ll put you on the mailing list for properties as they come to my attention.
Cheers,
Phil
Not quite Rugbyfan…. I am a renter, but I do hold four investment properties (and oh how I wish I had more).[biggrin]
Does that mean then that any +ve cash flow property you buy without having to find any additional money is a good deal? Any extra money coming in in that case would be an infinite return on $0.
But what if you redrew everything against existing equity in other properties? That means you have bought a property using no additional cash…. but at the same time, some of the equity may have actually come into existance through repayments on a P&I loan. How then do you evaluate whether or not the property is a good buy? Maybe CoCR has its limitations in this case???
