Yay!! It's really exciting when you finally have those little bits of paper!

Are you going to make a good profit off this? And are you going to do it again?

Good luck, now you have to build it!

D

Hi,

It is interesting. A hoarder will hoard anything. Newspaper, pots and pans, rubbish, tin, wood, anything. They may have kept animals inside the property with them also and there may have been other animal infestation such as mice and cockroaches because of the amount of "STUFF" in the property.

Now. How do you figure out if it is worth it? Firstly can you go there and see it for yourself? If it was me and I was really considering it, I would go and check out a hoarder. Scruffy, nup probably wouldn't care, but you need to know how much there is to get rid of.

There are a lot of questions you need answers to. How much will it cost you to get rid of all the stuff? They will not take it with them, it will be your problem. Will the bank lend to you on this or will it come in way under when being valued? Can you give the tenant a 120 day notice to vacate (no reason specified) and move them along and fix up the property? You may have trouble getting them out if they have stayed for 14 years. Then do you care? If you get the property very, very, very cheap, I am talking way under what the vendor is asking and you get a tenant who is in front with the rent, do you care that they collect garbage? Probably, but it may be still worth looking into.

Yes you get pest and building inspections (especially if they are hoarding) but the inspector will only inspect things that are visible. They will not look under furniture, or lift carpets or climb around junk. If it is a two bed unit there may be a limit to how much junk they have at least they wont have much yard to fill with scrap metal .

Go there and see it first then make sure all the numbers stack up, then make sure you have an exit strategy for if it goes pear shaped.

Please let us know how you go, good lesson for all of us.

D

Hi trustee,

That's a shame that these comments have put you off a very fine forum. Like anything, sometime people will agree and sometimes they wont. At least no one is calling anyone stupid (which has happened quite a bit in the past here ). Good for you for having a go and saying your piece.

Stick around with us a little longer you'll find that there are many strong personalities that live here and we all seem to get along just fine even with some tongue lashings that occasionally happen. The big cats have trouble sharing a cage……

D

Hi all,

I wouldn't have said spending $6000 on investing education has used up most of my wealth. If anyone only has 6k to invest with they should probably buy a book instead of doing a mentoring program and then try to make some more money out of buying a property.

There seems to be quite a lot of people who must either already be millionaires or be highly successful all on their own. Must be nice to never have to ask someone else for an opinion and to always know exactly the right answer to everything. Last time I checked property investing required a team.

Mortgage broker, accountant, lawyer, architect (if developing,) real estate agent. To name just a few. Maybe a business partner. I wonder how far all these people get all by themselves. How do you introduce new ideas and change either your business model or strategy to make bigger profits?

How do you get better and smarter and wealthier if you are the smartest, wealthiest person you know? Personally I would not congratulate saka888 for telling someone that wanted to be mentored that they are weak minded.

 I also think that Birchcorp, considering you are a financial planner and you are advising people how to invest wisely, you should be advising people to become more educated through legitimate avenues.  No body knows everything and if they think they do you should avoid them like the plague.

 I would hope that everyone reading this thread would do their own due diligence and would also not let a bunch of knockers talk them out of doing something if it will improve their financial lives and create a network of like minded people.

D

Hi,

Haven't done anything with Metropole. I get Michael Yardney's newsletter and have read books listened to his webinars etc. I have to say what he is offering is similar to services offered by Metricon (builders) and also by quite a few independent architects.  Personally, I would ring a couple of architects/development companies in your area and ask them if they can offer you something similar. Get quotes and compare what you get.

Let us know how you go.

D

Hi,

The house we rent has high gloss polished boards in one living area. They are scratched. This house was their PPOR before they went overseas for a couple years so probably explains why the boards are here. We have not maliciously damaged the boards, but unfortunately they do not wear very well in a house with two kids. We are even a shoes off house too!

I hear you on the "they should pay for it" argument we have several rentals of our own and would be annoyed if someone maliciously damaged the premises. But as a tenant I can also see the other side which is, polished boards look really nice but are really impractical. If I was selling in an upmarket area I would put them in in a second but as far as renting they are annoying!They are also very noisy and cold. (In Melbourne brrr)

 I would approach them with quotes etc (through the agent) and explain that because they were damaged by the tenant (or proxy) that you would require a partial payment. If there is only one scratch it may be unreasonable to expect them to pay for all the resanding even if this needs to be done. I think you would have a hard time proving it was malicious damage if it went to a tribunal etc. I would try to get something out of them now rather than trying it on in a court setting and getting nothing. Also think about whether you want to resand the boards now or just keep a kitty going for when you have had a few tenants through and it really needs to be done.

Good luck with this let us know how you go with it.

D

Hi,

I love it!

I think I would just laugh and say wait and see!

Then I would probably also slap myself and have a few choice words about getting started now and not letting people talk you out of anything.

I wanted to buy vacant land 10 years ago for under 20k and let myself get talked out of it! So for any newbies or people scared of what is to come, take a deep breath and get on with it!

Hi,

The Rookie developer course is run by the same people that run the Active Property Network, which meets in WA too. That was started by people who completed Steve McNights Results program. Don't be too put off by the advertising, everyone is trying to sell something:)

I would still read the books. Who cares if you read 300 books if there is one thing in it that saves you money.

Good Luck

D

Hi all.

I think this MEGA Market Update was great!  The great things that SM highlighted were the NSW govt offering incentives for empty nesters. This is a huge up and coming market trend. For anyone who is planning to develop, to ignore what is yet to become a huge market is a mistake. In other states there are not these incentives but who is to say they wont be brought in at a later date if they are seen to be working. The other great information for everyone is SM's take on the sky is falling for property. It isn't, lets move on.

Thanks for putting it together Steve!
D

Hi!

Good reads are the API small developments guide, Ron Forlee's book on residential development. Other ok reads are the Red Arm Chair developers books which are nice and simple, but you only get part of the process in each book.

As much as I love Steve's book it is not the be all end all guide to developing and you need to get it right first time.

Get the numbers right first, then get the rest of it flowing and you will have no problems. Funny enough banks wont lend you any money if you are going to make a loss.

Good luck it is well worth it. I am assuming you are in Perth?

D