Forum Replies Created
G’day Clancy….
Your greatest asset will be your “People Skills”.
The hours are long. You will cover many miles/km.
Very,very competitive industry. You may be working on a commission only basis. That, for some is not a negative, but you need to take that on board. Commission only, may mean $400 per deal.That is not a lot of money considering the skills required, if it’s to be done properley. As a result too many brokers have to get the appt. over and done with asap and move on to the next deal.
Personally, I took 2-3 hours for an appointment, as I ‘differentiated” my services by completing a detailed analysis including a budget for each client. But, I was paid by the client and not by the lender. No I didn’t charge $400
People tend to do biz. with the person, and not necessarily the Company. Yes, you need to have a good supply of leads…people will get 2-3 brokers in to discuss their situation.
.
A lot of the companies will do the “easy deals” over phone/net…and you go out to the others. Some will be tough…others a waste of time.I don’t think that too many individuals write more than 7 deals a month. The top guys/gals will write 20 + deals.
The best advice I can give you is to do it differently than the others. You, can still work within the guidelines of your employer or
contractor.Find a niche market and don’t just rely on the Company leads.You need to be a “consultant” and not a just a sales person. You need to feel comfortable asking very personal financial questions. You need to recognise when you are not being told the “full story”.
You will require a a good head for maths. All companies will train you on product knowledge, legal issues and ensure that you are accredited.
If you think this is for you….Go for it.
Wishing you well.
Billfromoz
G’day Zillah…
I copied and pasted all the links that went up on the forum…I think that this one will help you.
Copy and paste to your browser.
Billfromoz
Hi again David…
Big name Pesty…not from my experience. Had a bad experience with ******* Talk about a “beat up”
They said that there were no termites…but evidence of termites in the adjoining public park.The report went on to say that $3000 would safeguard the buyer. I contacted the Head office in Sydney and got onto the chief…eventually the report was rewritten without the BS.
Obviously the buyer was nervous until he realised that the pesty just had to be given the “Flick”.
Talk to several agents David, in the area your interested…they will only use a straight shooter…big or small.
Cheers
Billfromoz
G’day David…
Subject to :
Finance
Building Report
Pest Report
Check with Agents as to other conditions that may be applicable to certain areas.
The top 3 give you an “out” if necessary.
Cheers
Billfromoz
G’day Sooshie…
Thank you for encouraging all those links.
Hope I’m not doubling up.
http://www.yourmortgage.com.au/links/
http://members.aol.com/javawizard/numbers.html
http://www.aussie-travel.com.au/wales/countrynsw/info/countrynswi.htm#Top
http://www.incrediblecharts.com.au/trading_diary/trading_diary.htm
http://www.nnsw.com.au/armidale/information.html
Cheers
Billfromoz
G’day ozzpom
Try an application for an “asset lend” type loan, they are only really interested in your security. Obviously they will take into account, perhaps, 75% of the rental income on your IP.
Liberty finance…easy-loan.com….bluestone..
Let me know how you go.
Billfromoz
G’day Paul…
I recommend that you invest in a house and land as opposed to a unit. It is land that appreciates in value…the building depreciates.
I assume you have accom.(living @home ) If that is the case go for it…your $50k is sufficient as in addition to your income you will have rent. The lenders will allow 75/80% of the rent to be assesable income wehen qualifying you for a loan.
Well done…
Billfromoz
G’day Captain…
Paying fortnightly will serve you well.
The reality is that you are making an extra 1 months payment pa.
Don’t forget though,1600×12/26=$738.46 = 25 years
Needs to be 1600/2 =$800pf *26 = 19.5 yearsFor example…a 25 year loan and paying fortnightly will reduce your term to about 19.5 years…that is a lot of interest saved.
However….only pay the minimum required on your Investment Property while you have a mortgage on the family home. No disadvantage whatsoever…especially if you have an offset account to redraw if need be.
Cheers
Billfromoz
G’day David….
No I haven’t forgotten you…just got swamped.
Melanie is spot on in her advice.
You may not be aware thta the ATO recently lost an appeal re : capitalising interest on investment loans.This has an enormous compounding effect. More desirable with a home loan in that you channel ALL funds into the family home loan including the interest you would normlly pay on the investment property. Home loan zeroed in 3-5 years…I did one in 18 months.
I will be sending you info to get the ball rolling
it wil require that you complete the analysis and return for the nunber crunching to give you a nine page report…. worth a fortune but no fee involvedCheers
Billfromoz
Suggest that you put a formal offer to purchase in writing and address to Manager of Real Estate office…keep a copy.
She will have egg on her face if it sells for less than your offer.
Do some detective work…try and find out the solicitors name that is handling the estate…contact them direct.
Billfromoz
Pinky…
Some FREE info for you
I have recently sold my inlaws home that was a deceased estate. To market the property I had to have probate finalised. Otherwise any sale becomes “subject to probate”.
There is no hard and fast rule that says the property must be auctioned. I sold with a private advert at the advertised price.
However the agent may have instructions re opening times. I suggest she is playing games and wants everybody at the house at the same time…looks better….pressure on would be buyers.
Maybe the beneficiaries of the deceased estate are fighting amongst themselves. So the only solution is to Auction.
Submitting offers prior to an auction is dangerous as it only “flags” your intention of your possible bid on the day of Auction. If they have made up their mind to go to Auction, and it sounds like they have…just go and bid on the day.
Cheers
Billfromoz
If you were…
If you were, right here and now, the person you most wanted to be,what would you be doing?
If you could change anything in the world,what would it be?
If you were completely free to express your most dearly held dreams and visions, how would you do that?
If you were wealthy enough to buy anything at all, how would you use and invest that wealth in a
meaningful way?If you had the time, the money, the knowledge, the energy and the resources to pursue your highest vision, what would you seek to do?
If you were free from all the things that limit you and hold you back, in what direction would you go?
Stop for a moment and consider these things. Then consider this…
There is no need to wait a single moment longer. You can start now to follow your most compelling passion, to achieve your most treasured dream.
Yes, there are obstacles that stand in your way, but so what?
When you’re living with purpose and passion, you’ll find your way beyond every difficulty.Ralph Marsden
G’day Huey…
I wish to share someting with you.
In April 2004 I am “Trail Bike” riding from Hanoi to Ho Chi Minh City to rais funds for Vietnamese school we are building in Binh Ba….not far from Vung Tau. Aussie businesses in Vietnam will sposor me at x$ per km…it is a 2000km ride over 25 days.I assume you are refering to the Fred Hollows Foundation…Fantastic, as I have decided to include them as one of the beneficiaries.
TV coverage before I leave with Channel 9 ACA
If you buy the property in YOUR name and rent it to your Son…the interest is taxdeductible. You can have a written agreement to protect him.
SO…
You get an investment property
Your son gets help with his home (in your name)
This scenario may permit your son to buy an investment property
Last but not least…you gret to help Fred Hollows FoundationI know that leaves out your Parents and Mother in Law…but would need to know your total finance structure to advisre further.
Cheers for now…
Billfromoz
G’day…
last response before I go to bed.
Exercise specisl care at auctions.
Obtai a written quote for all work that needs to be done BEFORE the auction…say it’s $10,000.
As the right price is then, more like perhaps $60,000 less the $10,000 you need to spend YOUR maximum buying price is really $50,000.Don’t take any notice of what the agents say to you. Check out the comparable sales for the area yourself. Ensure you have your finance approved in writing before you bid.
Isn’t the auction over? Septenmber 11th?
If you have more private info you can email me at
[email protected] …if you wishCheers for now
Billfromoz
G’day Phil….
Some of my clients would be interested. My advice to them is that you would be getting a 20% plus return and as such, I consider it a safe investment for them.
If you wish email me and I will put them in touch with you direct.
Cheers
Billfromoz
G’day Dino….
You said “creative”…try this. The ATO recently lost a court case regarding what I’m about to show you….so it’s legal.
Assumption: That both your loans are with the one Lender. If not consider changing, so that they are with one lender.
You have one loan @ $143,000….no tax deduction.
The other loan ( on IP should be a Revolviong line of Credit (RLOC) for say $110,000)
Total of 2 debts is $143,000 + $110,000 = $253,000
Once the IO loan is paid out you have $30,000 available as deposit and costs for another IP.With the RLOC you have a monthly interest bill of $568. Insread of paying interest on this loan you reduce the principal on your PPOR by $568. The interest is compounded on the investment property until such time as your PPOR loan is zero. You also pay the IP rent into the PPOR loan. I could do the sums for you…but I won’t. Your PPOR will be zero within 5 Years or so…maybe less.
Your lender is only interested in your total liability and of course your current payments…you just need to set it up differently. They will accommodate this “creative approach”. Effectivley you get a tax deduction in month 1 for the interest, and in month 2 tax deduction on interest plus the interest on the interest.This continues until you have zeroed the debt on your PPOR.
If I have lost you…send me an email and we can swap tel. numbers
Cheers
Billfromoz
Hi Kavita…
Your property will generally sell better if furnished. That is, a lived in look, BUT very neat and tidy.Remove personal items…like family photos etc.
As for new carpets, paint, timber venetians etc… depends on your price and competition.
I wouldn’t go overboard. We replaced a chandelier my wife wished to keep, with a $25 light fitting and I still sold at the asking price of $585,000.First impression is critical….the gardens/grounds should reflect a much cared for property.
VERY difficult to sell a tenanted property, unless you have an excellent relationship with a cooperative tenant.
Your advert is VERY important. People WILL read long copy. I will be sending you an example later this evening or tomorrow.
Cheers
Billfromoz
Please email me with a phone number…we can have a no committment yarn…and take it from there.
The deal is…either party can say no without any hard feelings…cuts both ways
Please include your telephone number.Billfromoz
(02)6342 1274Any chance of getting mentored?
quote:
G’day….Yep me again….and its lengthy too.
Not wishing to leave anyone out I address this post to ALL that responded to my last G’day.
I feel that those who responded at least are considering what I had to say and appreciated your input…thank you.My first purchase in Real Estate was 3x1br Units in a block of 36b Units. It was Unit Plan number 1 in Canberra…near the Hackett shops if you live in Canberra…. @ $6,000 each….promptly sold for $9,000 each.
1st Mortgage 80% of purchase price plus unregistered 2nd Mortgage from Vendor for balance.This is too easy… next deal 1/3 share in 42 units for $550,000 ( 1971) Sold 36 on the phone
(subject to inspection)within 48 hours prior to settlement. I kept 6 and made a 1/3 profit of the
$112,000 on the 36 that we sold with simultaneous settlements.Kep Enderby MP (showing my age) introduced a “fair rent” tribunal…some where marked up others down. Overall now negative as interest rates went up, up and away…….. Now not so clever after paying 66% tax on the profits.
2004/005 Interest rates UP whether our exporters like it or not…A$ moves up to .7700 against US$.
Wage increase demands…inflation takes off by 2006…so Howard gets back in before the Sh*t hits the proverbial fan. Real Estate starts it’s next move up but, by now “Real Estate is a mugsgame”.Those that held don’t worry about their temporary “paper loss”. For them it’s tough mentally. However those with the “magic” off the plan.. with family home now at risk…dump their “I’m gonna be rich investment properties”…along with the rest of the “crowd” that wrapped deals without knowing what they were doing. All proffessions require many years of experience to excell in their chosen field…. it will be blood in the streets. Some will have committed suicide, and I don’t mean just financial.
Just before all this happened…inexperienced players got into the investment market after reading a book or two…most only “talked” about what they were “gunna do”…a lot acted and got caught up in the hype. They tried to wrap properties…they were at the bottem end of the scale as far as expertise was concerned…so were their clients………impending disaster because neither party knew what they were doing…they didn’t get an experienced partner or a mentor.
But this market is different….yeah? October 20th ’87 Stock Market is VERY VERY similar to now, believe me I had clients mostly out…but some still in and watched $250,000 investments crash to about $110,000 within an hour of the market opening.
Back to Real Estate…imagine a $280,000 new landscaped home “stunning” could not sell @ $215,000 within 12 months..that was Canberra 1996…inched it’s way up for a year or two…owner bails out with only a $50,000 loss…he thanks his lucky stars. Today it’s worth $475,000…with another 25% decline…12-24 months about $350,000 odd.
Smaller 2Br. units from $112,000 down to $60,000. Cheap homes $120/$130,000 down to $75,000 if you could find a buyer…..and where did the smart money go…you guessed it ” Real Estate” and made a fortune from 1997 until 2003/04. The Real Estate market troughed in September 1994…9 long years ago. But this time it’s different……..BS.
Not too many of you would know that…in the 16th century in Holland, people got caught up in the Tulip Bubble and actually sold their Real Estate to finance their speculations in Tulips…the early birds made money…the followers didn’t…
No Tulips and No House.Have a look at some of the country towns a couple of hours from major cities today…now we see For Sale signs…$months ago anything for sale had a Sold sticker on it. You couldn’t rent anything decent unless you paid $200pw…now take your pick at $185pw. The buyers in these towns used Sydney/Canberra properties as collateral to buy them…..some will sell at a loss…others may have to even sell the family home.
One of the earlier replies to my post suggests that they are going to Sell an option to purchase with a lease deal ” as a hedge against the impending fall in values”.This is justified they feel as the poor old client isn’t interested in prices…they just want a roof over their head that they can call their home. One of you MUST get hurt in todays market. They won’t exercise the option and be dissalusioned about Real Estate.
But there’s another “victim” around the corner.Real Estate is Fantastic…So is the share market
I’ve done both….mostly at the right time…but the times I was wrong…”OUCH”We had a saying in the share market….
” Let your loss be your lesson “.Like me back in the mid 70’s…maybe you have to experience a loss/setback before you learn.
I just wish I had a 56 year old mentor like me back then.
But as my wife of 33 years just reminded me
” You wouldn’t have listened to him back then”.Learn from my mistakes they won’t cost you a penny.
Whatever you decide….
Differentiate your service, find a niche market,
work very hard WITH Integrity and add value to your service that doesn’t cost a lot of money,but has a high perceived value to your clients.Wishing you ALL the very best.
Billfromoz.
ps. No I’m not negative…I’m the most enthusiastic, positive person I know.
[/quote]G’day Martin…
“Timing” is critical in both the Real Estate and Share Markets. In reading your post I’m sure you will agree with me.
As you said…worked then on $60k properties. So what do you do now….I know, I’ll write a book and do seminars and coach others in what I have done in the past.I’ll make money while I am waiting for the “correction” in Real Estate and then I’ll get them at the right price.
Have you noticed that those flogging the benefits of the Sharemarket last year were saying that it’s NOT “Timing”…..but, Time in the market.
What else could they say….cause the market was so negative. Probably time to get in the Share market…as the crowd is still avoiding it. Historically, a buy in late October and a good run into January…..All this while we watch the Real Estate market start it’s correction.Please read my post…”Madness of crowds etc” let me know your thoughts and comment…Please
Billfromoz
G’day…
The company won’t die on your clients…you may.
Get good legal advice, may be costly short term, however…in other words
” Build on a firm Foundation “..BOAFF.remember it.Billfromoz
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Just curious as to the potential benefits or losses of creating a joint venture company with myself and another to purchase properties
as opposed to doing it as an individual.ie
is there advantages in purchasing properties under your created companies name?or is it better to just do it as an individual?
I’m thinking tax write offs, lower loan requirements and so forth.
[/quote]
