The truth about financing.

Hi Steve! It's been many years (2001) since we attended one of Steve's first seminars. We were dumb enough to take his advice and simply get on and do. Surprise, surprise – it actually worked. I suppose the other point was that we decided that even if it didn't work, we'd probably only drop $10K so it was a small risk.

The market has evolved since then and finding cashflow +ive properties is now more difficult, as there are many more people looking. Yet, what I know is that if you look you will find. For example, recently I was in Cairns and fluked across a small office for sale. Negotiated price was $135,000. This will rent for up to $300 pw plus tenant would pay outgoings. Demand is such that the last time a vacancy came up in this complex the new tenant was actually helping the old tenant move so as to be able to move in.

My experience suggest that there are deals out there but they either need to be massaged into shape, or are not easy to find. It seems that many new investors are keen to criticize Steve because the market has changed. Perhaps a good analogy would be BHP shares. Years ago you could buy them for less than $10. The market perceives they are worth much more now. 

Steve has always stressed that success is a mindset – doing things differently. My strongest suggestion is to get out and about and find deals – do not believe that viewing realestate.com.au will uncover opportunities. I would also suggest that there are still bargains to be had in the Latrobe Valley in Victoria, some Western suburbs of Melbourne, and many regional areas.

To give another example, I know of one investor who recently purchased 4 small offices in a regional area for $160K. Each was tenanted, with two of them to Government departments. The yield was 13%. When I asked the buyer how he found this deal, he replied that he was reading the Age when he found a small ad listing this deal. He was then dumb enough to actually drive to the town, inspect the properties, and make an offer.

Knowing Steve personally, I can vouch for his integrity. It disappoints me when newbies launch an attack on him, when they would be much better off, listening, reading and learning. It is very possible to emulate Steve, and you will be surprised what opportunities and finance open up when you actually decide that you will make it happen. Thanks.