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Viewing 14 posts - 41 through 54 (of 54 total)
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  • David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    September 4, 2017 - 5:14 pm

    Hi ProperMental,

    I am looking into using the Renovation Strategy as well, and from what I’ve learned, you want to focus primarily on ‘Cosmetic Renovation’ to add more perceived value than costs. The following URL might give you some ideas:

    http://www.handyman.net.au/renovate-profit-10-easy-steps

    I’m not an expert in this area but would be happy to share my thoughts with you when I visit Adelaide in November – Just shoot me a message with your contact details.

    Cheers,

    David

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    September 4, 2017 - 5:02 pm

    @corey Batt: Yup it works now, but I’m not sure how this relates to borrowing under a trust structure and going as guarantor. All this talks about is that you can increase your borrowing capacity by using different lenders. One of the graph is also confusing – says lender 1 $400,000 debt but the graph shows $800,000.

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 31, 2017 - 5:02 pm

    @jaxon: Thanks for the valuable input. I’m going to learn more about Vendor Financing Strategy, and see if I can use this to access properties for Renovation to build up equity more quickly.

    @corey Batt: Are you still able to increase your borrowing capacity by structuring your portfolio this way? P.S. I can’t access that link you provided “www.precisionfunding.com.au didn’t send any data.
    ERR_EMPTY_RESPONSE”

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 31, 2017 - 4:49 pm

    Hi David,

    I’m not sure about your current situation and how involved you want to be with your SMSF, but back when I had limited funds available in 2013 I found that eSuperfund was amongst the most competitive in price and offered exactly what I wanted.

    https://www.esuperfund.com.au/home

    Although it can be time consuming to go through their entire checklist, and upload all the documentation required, I found that the effort and time was worth the sacrifice. Thanks to the SMSF I was able to invest in Steve McKnight’s Passive Income Fund, which has performed spectacularly since it’s inception.

    http://www.passiveincomefund.com/

    P.S. You might want to consider talking to an accountant about the best way to set this up i.e. you might need a Corporate Trustee in order to invest in properties using your SMSF

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 28, 2017 - 8:20 pm

    @terryw: Thanks for the clarification. I just didn’t understand how an entity could borrow money without proving any source of income.

    @jaxon: My goal is to make +$500 positive cashflow per week, and I’m thinking maybe this could be achieved by finding 10 properties yield $50 positive cash flow per week. Maybe renovate and increase the rent? I’m not really sure, but I’m open to suggestions on how this could be achieved.

    @corey Batt: Are there any lenders out there that don’t require you to disclose any loans you are Guaranteeing or is it mandatory by law now?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 26, 2017 - 7:42 pm

    https://www.propertyinvesting.com/topic/5031860-trust-strategies-to-increase-borrowing-capacity/

    Great information there Terryw, but I’m still trying to get my head around how this works…

    Let’s say you’d like to own 9 positive cashflow properties but the banks would only loan you money for 3 properties

    You could get around this by setting up 3 separate trusts each holding 3 properties?

    – TRUST X with COMPANY X as Trustee
    – TRUST Y with COMPANY Y as Trustee
    – TRUST Z with COMPANY Z as Trustee

    You are the Director of Company X, Y and Z and Guarantor as well?
    The loan is in the name of TRUST X, Y and Z
    With you loaning the 20-30% Deposit to each Trust for each property?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 9, 2017 - 6:40 pm

    Hey Jaxon,

    Thanks for your kind words and sharing your words of wisdoms…

    Those numbers definitely look quite enticing :)

    I’ll probably need to work on educating myself first with Renovations, and probably start a project closer to home

    Warm Regards,

    David

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 8, 2017 - 7:58 pm

    So let’s say the SMSF has $80,000 and the member has $80,000, and the property is $250,000 and cost of renovation $25,000 – How would you structure the Joint Venture so that it doesn’t breach and sis act? Would either the SMSF, member or both be able to obtain loan of $165,000?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 8, 2017 - 7:46 pm

    @terryw: I’m not really sure – that’s why I wanted to learn more about the Sciacci System, and how their strategies can be implemented for renovations… Maybe this is more like an Option to Buy the property for e.g. $300,000, whereby you have early access to the property for the renovation, and then you onsell that option for $400,000? I don’t know…

    @daniel Vic: Thanks for sharing your personal experience with this. What I don’t quite understand is why you need to pay a deposit – Doesn’t that mean that you will eventually need to settle on the property under your name i.e. 5 months from now, and pay other 90%?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 6, 2017 - 4:32 pm

    If you were to purchase a $300,000 property in Victoria under your name, wouldn’t you need to pay around $13,000 Stamp Duty?

    I was under the impression that with the Siacci System, because you never transfer the property under your name, you don’t need to pay stamp duty i.e. it would be the buyer of the renovated property that would pay.

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 6, 2017 - 9:34 am

    What if you focus on just simple cosmetic renovations such as painting, changing the carpets, landscaping, which aren’t as risky and costly as structural renovations, but also hire out professionals in their trades that know what they are doing, and take out additional insurance for peace of mind? Maybe even offer to split the Stamp Duty Savings?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    August 6, 2017 - 12:04 am

    Hi Terryw,

    In the July 2012 iClub Video series at approximately 20 minutes, David and Karen Siacci mention that you don’t need to go to the bank to purchase a property for Renovation.

    https://www.youtube.com/watch?v=Om4knEBO7YE

    They state that you can come to an agreement with the Vendor for a fixed price, have early access to the property for renovations, and then sell it for a profit, without ever having to settle it under your name and paying stamp duty.

    This concept is appealing to me, as I do not have sufficient funds for both the 20% deposit and the renovation.

    What do you think about applying this to Renovation?

    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    June 12, 2017 - 9:07 am

    Hi Luke,

    Blessing from God indeed :)

    I guess One Man’s Trash (Or Woman’s in this case) is another Man’s Treasure

    You mentioned that a lot of buyers were scared off by the Buildings and Pest Inspection Reports:

    For this 1 I just kept an eye on the net and originally I had it for a client contracted at $195K(I am a buyers agent)and we got a building and pest report and the buyer freaked out.

    Just wondering why they freaked out? Were there any Structural problems with the property, plumbing problems or electrical problems? Or were most issues cosmetic related? Or was it because of uncertainty in the reports?

    So by this stage sellers just need to get out and get scared that every buyer will keep mucking around so I said I will do a cash unconditional offer on it (no finance clauses or any options to pull out of contract)at $145K she came back at $150k I said fair enough that’s not a bad buy so did it .

    Quite an interesting concept. Stupid question though… When you say Cash Unconditional Offer, do you literally have to have the cash in your bank account or can you borrow from the bank to make this offer?

    Purchased on 17th May 2017 : $150K
    Renovation Cost: $16K
    Renovation time frame: 7 days
    Pre reno rental income : $220 per week
    Post reno rental income listed at : $305 per week
    New Value Estimate-(now)June 2017: $220-230K

    Very impressive figures and timeframe indeed. Just wondering how you executed all of this… Did you just watch DIY videos online and do Google searches on how to fix various problems around the house, or did you simply look in the yellow pages to find contractors to hire?

    Would you mind sharing before and after pictures?

    Cheers,

    David

    • This reply was modified 7 years, 5 months ago by  David Thiu.
    David Thiu
    Participant
    @david-thiu
    Join Date: 2017
    Post Count: 75
    June 11, 2017 - 10:02 pm

    Hi Luke,

    That’s incredible! Thanks for sharing!

    If you don’t mind me asking… How did you go about finding such a bargain property?

    Regards,

    David

Viewing 14 posts - 41 through 54 (of 54 total)
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