Wayne,

Have absolutely no idea if your figures are correct or not…they very well could be.

However, I know from doing a moderate amount of research, finding those ~ 0.0004% of properties that do qualify for our criteria takes about 30 to 50 hours of surfing the net and talking to agents / vendors.

Last week I posted half of our research list…[Read more]

Depends on the level of land content vs list price.

If the land is more than 85% of the list price – at least 7% nett.

If the land content is less than 85% of the list price – at least 10% nett.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Martin,

I wouldn’t ask the Seller’s representative anything…my experience has been that you won’t get a response that you can legally rely upon, and if you read the extremely fine print, you’ll find that anything that the Seller or his representatives says, they are not bound by it.

As you’ve said, it’s your Due Diligence, don’t sit back and…[Read more]

I think his termonolgy was ;

“I’m going to pack up and p*ss off, effective immediately”

I’ll sit down with big John and get all the details and contacts off him, he’ll probably end up doing the lot for us.

Then we’ll go through it all and make a gameplan when I get home…see ya soon.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Scotty,

Not a prop pro yet, but working towards that goal, as we all are I suppose…

I’d be looking for props that have a large land component – over 85% of the list price, and cashflow positive to boot – so that you don’t have to chip in.

That way, you get the maximum amount of growth from the land and you get it for free.

Hard to find -…[Read more]

Marc,

We had something similar with our very first residential IP.

We had the standard locks on – tenant got broken into and more than $ 2K worth of their belongings got stolen. Damage for us was about $ 40…didn’t claim on insurance as it was small. Tenant claimed on their insurance policy also…happy days.

Request came in immediately from…[Read more]

Maria,

This has been covered many times before, have a flick through the search function.

The formula is X x Y = XY, which everyone learns in Year 8….it’s not new.

Work out want you want for XY and go from there.

If you want $ 1,500 p.w. to live off, and each house produces $ 20 p.w. free cashflow, you’ll only need to own and manage 75…[Read more]

Marisa,

Everything in life is relative. What’s expensive for one party is too small to bother for the next. No point comparing…just chug along at your own pace and be happy in life.

I read somewhere during the Burswood takeover a couple of years back, Packer via PBL managed to acquire a large chunk of very central real estate as part of the…[Read more]

No worries Redwing,

We are out of the buying market just at present so happy to share some figures of some of the deals I was looking at (some since sold) ;

Deal 1 : Cheapy for 89K list price. Nett rent 12K. Tenant pays all outgoings. 2 yr lease with a 2 yr option. Posted this deal before on here.

Deal 2 : State Govt block for $ 3.7MM…[Read more]

Having been to quite a few IC meetings over the years, but never found it necessary to ‘join up’ by buying a ‘club property’, I was surprised in Feb of this year when the front speaker said that positive cashflow properties were a myth, have been for a quite a few years, don’t believe all these trumped up gurus who say they are out there and just…[Read more]

Here here Jan,

I also had the choice of buying a prop. at 18 or going on a backpackers trip around Europe / Scandinavia and Russia.

I went down the travelling option, and have never regretted it. The prop I was looking at, back in 1988, has increased out of sight, but the people and characters I met whilst travelling was worth so much more.…[Read more]

Hutch,

With an asset such as you describe, my recommendation would be to pay for sturdy and wise counsel from both a tax and legal professional, hopefully both who are personnally experienced in property deals. Obviously you get opinions on here for free, but will they influence the Trustee’s ultimate decision ??

I firmly agree on the don’t…[Read more]

Derek,

Just had a squizz at about 7 or 8 props on Collins or Queens St (I think) right smack bang in the middle of the Melbourne CBD. Out of those 4 were very positive….

What can I say – they are there, but the people asking either aren’t looking in the right spot, don’t have sufficient knowledge or more likely don’t have sufficient…[Read more]

Sorry for the confusion Derek…

There are oodles of props – some res, most comm, some industrial that are +CF. Once again, people are using the term properties and really mean residential only – which narrows their view somewhat. OK if that’s their cup of tea, just stop whining if you can’t find +CF, but refuse to check out far better…[Read more]

Kerwyn,

Yeah – me too…but then DIY doesn’t turn me on either…perhaps I am destined for mediocrity ??

Ozi – I think it’s all wrapped up in the connections that you make whilst playing and ‘doing’ Golf.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Gee whiz, we are all a tad gun shy with advice to Anna.

2 year lease – wow – that’s 4 x 6 month leases all strung together…if you were buying a house people would be falling over themselves.

The butcher may be in the prime of his business life too – and too keen on expanding his businesses in other shops around differing towns to bother with…[Read more]

Khalida,

Plenty of props out there off the shelf that are +CF with 100% finance plus all acquisition costs.

Have a real good look.

Cheers,

Dazzling

“No point having a cake if you can’t eat it.”

Jenny1,

Used to pay 8.5% plus ‘extras’ = ~ 12% in Perth for 1 RIP.

Got it down to 6.5% flat when 3 were offered.

Ended up pulling out and now pay nothing.

We think the time vs the payment is worth it. We used to find it hilarious when we authorised the PM to pay our CR/WR/LT and other bills on our RIP’s….we went about 5 months without rent…[Read more]

Bonnie,

There is an underlying assumption in your question that REA’s are essential.

My experience is that they are not, and a sign out the front of your property is a powerful marketing tool.

A couple of things stand out for me;

1. You know your property far better than anyone else.
2. You can concentrate on, and give your full attention…[Read more]