Last property I bought, I got a private financier to help out (although you have to know someone, or know someone who knows someone).
But there is such thing as being over exposed if your friend already has debts… ie – what if the property market goes south – and the total value of his debts is greater than the total value of his assets?
Thanks everybody. DK I found a glossary on this site but it didn't work. Maybe we should lobby to have it fixed?
What was the link?
Post it up here when you get a chance. I e-mailed Goldie (the tech brains behind PI.com) to let him know about the problem, but your link will help him to pinpoint it.
For $199 to buy the full version, it's cheaper than similar software – and if you think of what you're worth per hour, you'll easily spend that much time trying to put together a spreadsheet which does half of what Investment Detective does.
I went to school in Dandenong North. I still have some friends who live there.
Compared to Dandenong, North Dandenong is pretty tame – a lot of average folk – people with jobs, kids, mortgages etc. Thinking back to my friends’ parents’ jobs, they were teachers, nurses, accountants, factory workers, delivery drivers..
But like most suburbs, there were areas which were better and worse.
It sounds like the property was near Lyndale High School? The concrete houses painted in pastel colours, with the holes drilled in the panel near the front door? This area was rougher than parts closer to the valley – but it’s not as if there were drive-by shootings, or gangs roaming the streets. You could still walk around feeling safe.
It was poorer, had a bit more drug activity, and more first generation immigrants trying to get by and start a new life.
It also had some of the less desireable trappings of immigration – some vietnamese gangs, and a little tension between the turks and the greeks – but it was always something you heard about, and never really saw.
The area closer to the valley was a better area with more white middle class families. I think it used to be a housing estate.
There were a lot of people who made a lot of money during the property boom – I can’t remember the prices, but you could buy 3br houses in Dandenong for very low prices.
If I knew then what I did now, it would have been a no-brainer. But that was Dandenong rather than North Dandenong.
I’m sure there are still great deals in the market there – because it’s not one of the ‘pretty’ areas which attracts investors. But you’d have to know what you’re looking for.
I don’t know whether that helps, but I hope it gives you some personal insight.
Originally posted by Hutch:
If anyone else has a great Steve/Dave story or “thank you†(I’m sure there are many)…………….post it here.
I’ll post a thank-you and a story in here.
Thank-you to Steve and Dave for giving me my first job, and for the time and patience you invested into me over the 4-and-a-half years I worked for you both.
As for a story…
Back in 2001, I was a year 12 student who had a keen interest in real estate investing and I received a call out of the blue from Dave.
I’d known Steve and Dave for a year-or-so – they both come to a Cashflow game I had organised, and I’d been to their first ‘seminar’ which was really an informal dinner Steve and Dave put on to help answer people’s questions.
The call from Dave was inviting me to join him for a trip to see some of his investment properties, and see a wrap go ahead.
This was an offer I couldn’t refuse!
I said yes, excitedly told my parents, and straight away went to my room to look for what tracksuit I was going to wear. (Steve and Dave were known for wearing old tracksuits when investing, and I didn’t want to look out of place).
The next day, Dave pulled up in the driveway and picked me up.
For anyone who has any illusions of the type of people Steve and Dave are – they’re not motivated by red Ferrari’s, expensive suits and the usual signs people associate with wealth.
In fact, Dave’s car was a late-80’s-early-90’s Hyundai Excel. The paint on the bonnet had flaked, the drivers seat sagged on one side, and whenever you got it above 80km’s the bonnet flapped and the steering shook.
So travelling down the highway at 110kph, I was a little nervous that floor beneath my feet was going to fall away and I’d be sucked onto the road below.
(This just added to how nervous I was already – I was sitting in the car next to THE David Bradley – and he was taking me to see his properties!)
I started asking Dave about what I could expect to see, and how the deals worked. We talked about real estate agents, the property market and investing strategy.
It was great!
I was going to see a wrap too – which was exciting. But one thing which confused me is how to work out what a fair and reasonable selling price was when setting up a wrap contract.
So I made the mistake of asking Dave.
Dave replied “Actually – that reminds me, I need to work out the figures for the wrap we’re going to see today” – he shifted his knee up and held the (shaking) steering wheel and turned to dig around the back seat for his calculator (while the car shook and rattled, driving at 110kph).
I dug my nails into the seat and nervously asked;
“Would you like me to find it for you?”
“No no, it’s alright” Dave replied, glancing back onto the road to make sure there was no oncoming danger.
I breathed a sigh of relief the second he found the calculator – but it was only for a second, because his eyes stayed off the road. Still steering with his knee, he turned his brown financial calculator on and started punching in numbers and explaining he was running numbers to find a figure which gave him enough profit in the deal – and was a fair price for the buyer.
Every few seconds, he glanced up from the calculator on his knee to make sure we were still on the highway, and we weren’t about to run into the back of someone.
By this time my heart was racing, and my fingernails were practically embedded into the grey-blue seat of the vibrating Hyundai Excel. I was sure we were going to blow a tyre, run off the road and be another number on Victoria’s road toll that year.
“Do you want me to punch the numbers into the calculator?”
“No, it’s ok – … and the interest rate is…” Dave replied continuing which his explaination of the numbers.
I was very happy to get out of the car when we arrived in town.
I got to see some of the deals Dave had on the go, plus drove past some which had already been bought and sold. It was a long day, and it was dusk by the time we got home.
A few months later, I received another call – this time it was to ask me if I wanted to come and work for the boys.
What an offer!
For most of Steve and Dave’s investing career, they only had one employee – an admin manager. And they with their previous admin manager (Tim) finishing up and moving elsewhere, they were offering me this role!
I said Yes straight away, and started a few weeks later.
Shortly after I started, Dave asked me if I was enjoying working for them.
I explained I was finding it challenging but was enjoying it – and commented that I was surprised to be offered the job – after all I hadn’t even been interviewed!
Dave laughed and replied “But you did get interviewed”
“When?” [eh]
“That trip to see the properties was your job interview.”
After four-and-a-half years working with Steve and Dave, I can’t say nice enough things about the guys. They’re genuine in their motives, and are always out to help people – and in an industry full of sharks they’ve made sure their integrity was non-negotiable.
As employers, they were patient enough to take someone who only had a high school education, and turn that person into their admin manager – and later their event coordinator, and marketing coordinator.
And they took an interest in helping me to develop the skills I needed to achieve my goals – not just the skills I needed to do my job.
I’ve recently taken a new job doing business development work for a stock-market education company (if you’re interested, click here) and I wouldn’t be here without them.
So thank-you guys. Your help and mentoring has meant a lot to me.
A new PropertyInvesting.com forum is being planned out behind the scenes right now.
In fact, the RESULTS Program Participants are part of a ‘beta-test’ of this new platform.
Our current forum infrastructure is several years old – which in web terms is about 70 or 80 in human years.
Plus, due to the growth of PropertyInvesting.com’s membership base (as well as advancements in web technology) we’ve increasingly needed to improve our forum infrastructure.
One of the additional pieces of functionality that you will find in the new forums is it will remember you each time you come back.
There will also be other more major (more cutting edge) features – but I can’t let the cat out of the bag right now.
I wanted to set the record straight about Virtual Kick-Start, and what resources were and weren’t included from the R.E.S.U.L.T.S. Mentoring Program…
The resources from the Mentoring Program which were contained in Virtual Kick-Start were mainly surrounding the topics of Goal Setting and a Case Study, and included:
Goal Setting Resources:
– One 10-minute minute track taken from the Kick-Start Folder
– A transcription of this 10-minutes of audio
– A short (3-and-a-half minute) video extract on goal setting
– The goals templates
– And the 14 pages of notes which explained how to use the goal-setting template.
Videos and Notes relating to one Deal Case-Study:
– Deal Discussion
– Renovation video
– The case study exercise from Folder 1 (including the number-crunching template)
– A 10-minute video which explained how to use the Number-Crunching template (answers to this case study were also provided later)
– Plus access to 3 R.E.S.U.L.T.S. Program webinars.
And, although they weren’t specifically R.E.S.U.L.T.S. Mentoring Program resources (rather, free bonus gifts which Steve gave people who were a part of the R.E.S.U.L.T.S. Mentoring Program), people receiving Virtual Kick-Start also received a Video of Steve speaking in New Zealand, a second bonus seminar video (if they completed the homework requirements) plus the 6 phases of time awareness resource.
Yes – this is a lot of resources.
But they’re just a small portion of the resources which people in the current R.E.S.U.L.T.S. Mentoring Program have been able to access – and a tiny portion of the resources which people can expect to receive over the 12 months of the program.
To put things into perspective, here are the resources which were NOT contained in Virtual Kick-Start (which people in the R.E.S.U.L.T.S. Mentoring Program have already received):
– 10 Fundamentals of Investing Success (58 page booklet included in the Kick-Start folder)
– Discussion on Money Habits
– Article on the principles of building wealth (Y – E = S principle)
– How-To report on reconciling your bank account
– Article on becoming Money-Attractive (W.E.A.L.T.H. principle)
– Audio recording on Money Habits (from Kick-Start CD)
– Encouraging lenders to say “Yes” (insights into the Australian lending industry)
– Tips to improve your chances of success with lenders
– Loan Application Check-List
– Pro-Forma Personal Asset Statement
– Audio recording on finance
– Article on “Why invest in property”
– Property growth strategy discussion
– Property Portfolio Summary template
– Audio discussion on real estate investing
– Steve McKnight Interviewing Dean Parker and Elise Jackson CD
– Steve McKnight interviewing Martin Ayles CD
– How-to guide on calculating “Time Value of Money” on a financial calculator
– 8 number crunching (Time Value of Money) exercises
– Audio on “knowing the difference between a Desire and an Outcome”
– Productive vs Busy audio track
– Difference between Confidence and Knowledge
– Daily Action Planner template
– Monthly budget template
– Daily Journal template
– Audio on how to use 7/40/60/90, Do-Doing-Done, Daily Action Planner, Monthly Budget, Property Portfolio and Daily Journal Templates
– “Property Tree” audio
– Number Crunching Template audio
– Building your Property Portfolio audio
– Finding Deals audio
– Property budgeting templates
– Education article on Building your Property Empire
– Audio on “Protecting your Wealth” (structuring – including discussion on various tax benefits, asset protection benefits, succession planning and costs)
– Audio on building your investing team
– Written notes on accounting structuring (how to protect your empire)
– “How to find a great accountant”
– 4-unit development case study
– 4-unit development case study answers
– Audio to participants regarding “are you being accountable”
– “Analyse-Buy-Manage-Sell” insights on investing
– Negotiating with Agents audio
– Report on managing cashflow (‘Cash’ and ‘Flow’ plus 4 phases of money management)
– Deal Analysis – Gross Return & Cash on Cash return information
– 29 Questions You Must Ask Real Estate Agents When Buying (details on why you ask each one – and what you’re looking for)
– Agent Conversation Record templates
– Property portfolio analysis case study
– Plus transcriptions of all audio mentioned above
And these are just the resources which have been received to date – not any of the information which is yet to come.
Also, this doesn’t include information which you would have received from your coach, from the R.E.S.U.L.T.S. Forums, from the quarterly mentoring get-togethers (plus for premium participants the weekend retreats…
As I say – yes, a lot of information was contained in Virtual Kick-Start, but this is just a small portion of the resources which have been included in the R.E.S.U.L.T.S. Mentoring Program to date, and a tiny percentage of the resources which are yet to come.
I hope this helps clarify things, and set the record straight.
If you’re a part of the current R.E.S.U.L.T.S. Program and don’t feel you’re getting the value you’re looking for, then one way or another this needs to be addressed. If this is you, then you need to give your Coach (or Steve) a call in the office so that we can help you out.
After all, the purpose of the R.E.S.U.L.T.S. Mentoring Program is to help you to achieve your goals, and be there for you when you need it.
Warm regards
Brent Hodgson
Propertyinvesting.com
P.S. – Unfortunately the R.E.S.U.L.T.S. Program is now full – there are no places available in R.E.S.U.L.T.S. Program 1 or 2.
Originally posted by redwing:
I agree with the above, but why ruin a good story?
I’m sure you also wouldn’t want to be advocating paying backpackers “cashies” to help demolish a house..how about insurance (amongst other things)[wink] if the backpackers got injured on-site?
I think the story was for illustrative purposes only and to get a message across of finding additional funds amongst what many consider rubbish..I may be wrong as we only got a ‘snippet’ of the show?
REDWING
Yeah – we thought it was a great story – and showed that Martin doesn’t just yack on about how much money he makes, but talks about the learning experiences he has too.
But yes – the moral of the story is that sometimes leverage costs you money.
It wouldn’t be uncommon for a demolition team to take a couple of thousand in salvage (which I’m sure Martin didn’t mind – given how much he stood to make on the development).
But what Martin didn’t realise (and I wouldn’t have either) was the value of the stone on the house.
As for the backpackers, Martin mentions in the video that he doesn’t recommend it – but this is what the demolition guy ended up using.
Brent Hodgson
PropertyInvesting.com
P.S. – There’s a Free 21-Minute audio recording around where Martin talks more about his development strategy.
It helps to put the video in context – both were taken from this presentation Martin did at a recent MasterClass in Melbourne.
Unfortunately, we don’t have a facility to upload custom pictures at this stage.
We decided against it because of storage issues (ie – how much hard drive space we’d need to potentially store 42,000 individual avatars), censorship/inappropriate content issues, and also the possibility for malicious computer savvy individuals to upload files in a way that potentially compromised PropertyInvesting.com’s security.
It’s a great suggestion, but because of ASIC’s requirements of people making public offerings (among other issues), it’s potentially very dangerous territory and something we like to keep clear of.
It’s these sorts of issues which lead to our decision not to allow advertising on the forums.
Unfortunately, we don’t allow people to upload files to PropertyInvesting.com because of the potential security issues (ie – someone accidentally uploading a file which contains a virus, etc).
However, if you’re able to upload your Excel Spreadsheet to another web-site, you can link to it.
The benefit of a high CoCR is leverage, and in many ways CoCR is just another way of saying “Bang for your buck”.
Assuming you have limited funds at any one time to ‘play’ with, CoCR gives you a yardstick which you can use to compare deals and find out which deal gives you the highest comparitive return on cash invested.
In this case, it’s what you do with the money which you DIDN’T invest which makes the deal a good deal or not.
For example, if you invested that money into another deal which returned you an amount higher than the cost of the second mortgage, then there’s merit in taking the second mortgage.
But if the money you don’t put in the deal as a result of the second mortgage goes towards a doodad like a deposit on a BMW or (say) buying me a Fijian holiday *wink*, then financially you probably would have been better off without the second mortgage.
lol – slurping…
hrmm. that gives us an idea *kidding*
The site counts people online in a particular time-out period (I think it’s 20 minutes).
If you’ve been online for 20 minutes and not clicked anything, it judges you to be no longer on the web-site (hey, some posts are pretty large – it takes at least 20 minutes to get through them, let alone some articles like the ones at http://www.propertyinvesting.com/strategies )
It’s not uncommon for there to be 100’s of people online (particularly around newsletter time when a lot of people seem to come back to the forums) – it’s 10pm now and there are 90 people online at the moment…
I can assure you, the only slurping that happens at PropertyInvesting.com happens on hot days after a trip to Boost Juice.
But if you want to keep us honest, check out https://www.propertyinvesting.com/member/active.html – it shows exactly who is online at any time. If there are 500 people online, there should be 500 names or IP addresses listed on this page.