Congratulations Terry,
Its been great reading your posts on this forum and others. Thanks for giving so much help to all of us.
Cheers,
Justin

Hi Jackie,

There are many ways you can look for cashflow +ve properties, and they exist everywhere, it just depends on what strategy you use as to whether or not you can make money out of them straight away. For example, if you condidered providing vendor finance (eg wraps or lease options) you would have no problems. Its definitely harder to find +ve cashflow properties as rentals, but it depends on how and where you look. Try RE Agents, the Internet, Newspapers, Personal Fliers, Knock On Doors, Investment Groups (like this one) etc etc.
As for rising interest rates, hopefully it happens slowly, rents increase, and you’ve paid off some extra on your mortgage, then you’ll be ok. Worst case scenario is prices have risen a little and you can sell, no problem.

Hope this helps a little,
Cheers,
Justin x

I agree with M Wombat, if this deal is as good as you say it is then find a way to get a win-win situation. Like the experts say “Its all about people”, find out how both you and the vendor can resolve the termite issue such that your both happy. If you ask, the vendor might even offer to pay for some or all of the costs of repair. You never know what can happen until you try!
Best of luck,
Justin x

Hiya Mickeydrippin,

Sounds like your ready to jump into the investing game, thats excellent. Firstly though you need to work out what you want to achieve from your investing. That is, do you want to obtain immediate passive income, capital appreciation or tax reduction etc. Then you can work out what is the best strategy to achieve those goals. Like Minimogul said, there are many different strategies. You need to find the strategy to suit the properties you find, and the properties to suit the strategies you are comfortable with.
For your $320K units are they able to be renovated cheaply to improve the value, maybe you could sell them again, or increase the rent??
There are positive cashflow properties in every area, have fun finding them.

Best Wishes,
Justin x

Hiya 2day,

Using a trust with a corporate trustee gives you multiple benefits. If your going to continue to purchase more IPs then you should use one to:
a. minimize your tax by income splitting to those in the family with the lowest income tax rate,
b. protect your assets if you or a family member are sued,
c. control the IPs without actually owning them.
Once the Trustee (usually a company of which your a director) decides to distribute profits (or losses), the beneficiary receiving them can do whatever they like with that profit (or loss), its passive income and theirs to spend, save or reinvest as they see fit. Of course they do have to pay tax on the amount distributed at their current tax rate.
Please check all this with a professional before you get started.

Hope this helps,
Cheers,
Justin x

Hiya Richmond,
I guess what I got out of it the most was the differences between the city and the country, and just a general lesson in experience, since I’m still a novice.
There are VERY cheap properties ($40-$50K) on government leased land available, however after 2014 the lease is up. The only information I could get, having not yet contacted the council, was that if they decide they want the land back it is up to the owner to remove the property. At the moment though the rents for this land would provide positive cashflow.
Also there are cheap ($65-$75K) properties around that rent for $125 to $135 per week when in good condition. Almost positive but not quite unless you put in a big deposit. My feeling was that these would be great for WRAPS or lease-options, but thats not my thing as yet.
Prices have not jumped in Geraldton at all in the last 3 years according the agents I talked to, and apperently it takes 1 to 3 months to sell most properties.
There is a new mariner being built as we speak though I got the feeling that its not going to be finished anytime soon. This may attract more people to the town.
My opinion is that its a great sea-side town with plenty of potential, but its not being realised just yet. As Stuart the Guerilla Negotiator says, If its near the water, on the water, or can see the water, it will be worth something one day.
If I was into vendor financing I would advertise for clients up there first and then find the properties second, as there’s no rush on them up there yet.
Can’t believe I just wrote so much []
Hope it helps mate,

Justin x

Hey Hey Choc,

bout time you got in here [] I’m glad I’ve spurred you back into action, now I only hope I can come up with the goods myself. As you can see everyone on the forum is very helpful, this is a great place to gain invaluable free advice and ‘meet’ some great people.
FYI I have been clocking up the miles in Su’s car looking at houses this last week, 10 today (Sunday) alone, and giving my gob some exercise chatting to many, many agents. My radar is up and I’m getting more confident with every home I walk into. Might even have a hot lead on a yet to be advertised triplex block, cross your fingers []
Anyway, congrats on jumping in here, now only one little step more… I’ll race ya,
well only if there’s a profit right!

Justin x

Hiya Ken,
Cookie is right, nothing can give you an idea about an area other than actually going there yourself and talking to the local agents etc. The cost of travelling (time and/or money) will be repayed by the increase in knowledge you have about the area. Do your research, set up some meetings, then keep in regular contact. If the agents never hear from you again they won’t ring you when something new comes up. Persistence and patience pay off.
Hope this helps,
Regards,
Justin x

Hiya Steve,
I think like many tables our group floundered early on in the game by wandering around without a plan. But we soon got our act together and realised what our prospective tenants/buyers wanted, and then jumped in line to buy a house……. and never got any further.
We all had lots of fun though, and I know I personally learnt alot, both from our initial inaction and also simply by watching others as they questioned, bargained and listened to the different role players.
Thanks to you and the team for an awesome weekend!