Forum Replies Created
In Steve’s own words at the moment, the 11 second solution is a thing of the past. To get pos cash flow today requires finding a problem and turning into a solution.
Dale
Hello Pucci
Just bad luck I think. I sold my house last year and I wished my agent had called his mate to offer a higher price.
It is hard to know what the agents are doing and whether you are being shown the full picture, but I often felt disadvataged as the seller too.
Dale
Hello Snowflake
It’s great that you are investing and asking questions when no one at home speaks the same language. That takes courage.
Re your improvements/repairs – may I just ask if you have assessed what increase in rental that you might expect. It might be a way of choosing how much you spend and then knowing it is a repair or an improvement.
All the best with it.
Dale
Yes. No worries
Dale
Hello Kelly
If you have been to any of Steve’s recent seminars or are part of his RESULTS group (as I am) you will know that in the current market he says that if you are looking to find an 11 second solution property from the internet, then you “are dreaming” ( to quote The Castle).
You will also know that there is no such thing as the “right area”.
Steve says Solve Problems to find cash flow positive properties. He also says get out there and look at properties.
The current market has lots of opportunities. It is a really good time to be looking and buting.
Best regards
Dale
Hello Avranjes
I too like Armadale and have been looking at it more closely recently. Like anywhere though it does depend on the particualr property and the deal. Geven the general state of the market in WA i.e. still moving strongly where other states have a different momentum, Armadale is as good a place as any.
Dale
Hello Eleven Forty
I use the free suburb reports from RPData on realestate.com.au for initial searches and the I pay for their more detailed searches when I get to that stage. The prices are quite reasonable in my opinion for the assistance they provide whilst researching.
Dale
Hello melmac
I too am starting over but not from divorce. (I got divorced years ago when we both had nothing). Without going into the whole story, I am now rebuilding from a minus situation i.e. debt, no assets, no current income with my 48th birthday this week. Ouch.
I personally have put a plan in place and each day I get up and work my plan. Each day I ask myself “How have I forwarded my goal today”. I make myself take some small steps every day.
Having financed a number of investment properties in the past as a single woman I know I will be able to do that again soon. 1st step though is some regular income i.e. a job.
Steve’s 2nd book “$1m in Property in One Year” is very inspiring and I am rereading it now. Some of the Mappers really had to overcome some big obstacles and they did it.
All the best as you build again. I hope you get to enjoy the freedom of it that I am starting to realise.
Dale
Dale
Hello salg
I would do a little bit more research before jumping in the deep end to make sure this experience is a good one.
1. Check out local rents. Don’t rely on what the agent says. Check your newspaper and make some phone calls. It will take you about 1 hour to get a realistic current rental rate for units the same size as the ones you are considering. You will also get a picture of west facing vs busy road etc.
2. Check your numbers. Steve recommends a Cash on Cash Return i.e. Net Annual Cashflow/Net Cash Contributed x 100/1.
(Net Annual Cashflow is Annual Rent minus Management Fees, Interest on Loan, Principal Loan Repayments, Other Cash Expenses.)
(Net Cash Contributed is Deposit plus Purchase Costs.)3. Is the resulting percentage more than your money would earn if you put it in the bank. Is this amount of return what you want?
Your answer to question 3 will help you choose which unit/whether to proceed ot not.
Total time – a few hours.
It could save you THOUSANDS.
Best wishes.
Dale
Dale
My offer, from personal experience when buying my first investment property, is to Just Do It. It was easy to let fear stop me and I am glad I pushed through it. I made a few mistakes, but I got lots more things right. The next time was so much easier.
Dale
Dale Fairbairn
I am a perfect example of not using equity to fund your lifestyle/retirement. This year I have sold my home because I could no longer afford my interest bill each month. It was a terribly hard decision to sell my home but in January that is what I did. Then, suddenly the Sydney market collapsed and buyers were extremely scarce. It was one of the worst times of my life – not being able to make my monthly repayments AND no buyers for the property.
It took me 6 months to sell the property, mostly I had to find the price the new market was ready to pay i.e. drop my price. I sold the house to a buyer who was interested in me being the tennant at a rent rate we agreed upon, allowing me to continue living in the home at half the monthly cost and freeing up my small remaining equity for me to invest elswhere.
As I wait the final 2 weeks before settlement I am now very happy with how this has turned out. I have learnt a lot and I now have huge peace of mind with the prospect of being debt free in 2 weeks time. But it was a very hard way to learn the lesson and I NEVER want to put myself through that ever again.
Dale Fairbairn
