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  • Profile photo of KALTSKALTS
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    @kalts
    Join Date: 2006
    Post Count: 9
    Originally posted by L.A Aussie:

    Originally posted by KALTS:

    Hey guys,
    Has anyone heard of these guys? REIN = Real Estate Investors Network.
    From the info ive found so far, they find properties that are in locations that are likely to have high capital growth, and they work out how to turn the property into a neutrally geared, or about $10/week negatively geared, based on your income and tax deductions received on a weekly basis, instead of at the end of the year.
    I would not normally consider -ive cashflow properties, but considering the state of todays markets, i thought it might be a good idea to look into capital growth as well as +ive cashflow.

    Any ideas? i’d be interested to know if anyone has had any experience with them.
    By the way, the last time i heard of these guys was about 1 year ago, but i was reminded recently because ive got one of their DVDs.

    Thanks
    KALTS

    Virtually all of these companies doing this are working for developers who need to sell properties.
    They usually try to sell you a new property that is probably (more than likely) overpriced, but it sounds good as you are going to get into an investment property for ‘only $50 a week’ or whatever figure they quote.
    Did you get their DVD from the local fish and chip shop?
    Ask one of their ‘consultants’ if they would mind if you brought in your own property valuer to value any property they steer you towards before you buy. If they say no – ask why not.
    Better still – don’t talk to them at all might be prudent.
    I suggest you spend some time and a little bit of money on your own financial/investment education and source your own properties. It’s not that hard and you will save thousands.

    Cheers,
    Marc.
    [email protected]

    Thanks for the advice Marc
    i will take it onboard
    KALTS

    Profile photo of KALTSKALTS
    Member
    @kalts
    Join Date: 2006
    Post Count: 9
    Originally posted by esnam:

    hi =) correct me if im wrong but this is from my experience. that was my thoughts about 2 years ago, buy as many +ve cash flow properties as possible, but in order to buy a lot of properties (65 as you say in your case) you need 2 things! income and EQUITY!! just because properties as self sufficient (+ve geared/+ cash flow) doesnt mean the bank will allow you to buy as many as you want (maybe 2-3?) you still need to consider LVR and paying LMI. Buying high return properties with give you the servicability but having little equity will reduce the number of people willing to loan you the money. (you may be able to go to non-major bank money lenders, but im not sure what their lending criteria is!) it didnt stop me buying, but you just have to do it steadily! realistically 1-2/year? thats what i think, let me know what you think? good luck

    Hey esnam,
    Thanks for your input.
    I had thought about this issue alot, to be honest i hadn’t got around to investigating it fully.
    You say that a realistic rate of purchasing is 1-2/year, has that been a strategy that you’ve adopted if you dont mind me asking, if so how is going for you?
    So how is it that Steve and others talk about buying so many properties in the space of 12-36 months?
    Any thiughts on this?
    Thanks
    KALTS

    Profile photo of KALTSKALTS
    Member
    @kalts
    Join Date: 2006
    Post Count: 9
    Originally posted by APerry:

    Hi KALTS,

    Have a look at Mt Isa, its a large town that is really moving ahead and still offers quite good cashflow. I have a couple of clients who are developing up there, I’d be happy to put you in touch with them if you are interested in the town, they are a wealth of knowledge.

    Regards
    Alistair

    Hey APerry,
    Id appreciate the introduction, id love to learn more about the area.
    Thanks for you help.
    KALTS

    Profile photo of KALTSKALTS
    Member
    @kalts
    Join Date: 2006
    Post Count: 9
    Originally posted by World Changer:

    Hello Kalts,
    Some mining towns are fine to invest in .Just do yr research thoroughly.
    Something i would remind you though is running 65 cheaper cashflow propertys takes alot of maintenance.It will become another job for u.If you are looking to stop work you will need to have enough income from the propertys to pay someone to manage yr portfolio and follow up on property mangers etc(,it all take s time.Especially with 65 props.)Then work out yr figures on how much will be left over for u.

    Thanks for your thoughts World Changer,
    To be honest, i hadn’t really thought of it like that, it makes sense, i guess i need to do some more calculations.
    While we’re on the subject, do you have any suggestions on how you would alter this strategy (you called these properties “cheaper” cashflow properties, but i havent been able to find properties that would yield much more than this, have you found differently?)

    Thanks
    KALTS

    Profile photo of KALTSKALTS
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    @kalts
    Join Date: 2006
    Post Count: 9

    Thanks csimons,
    I obviously need to look into the market a little more, you’ve been a great help and ill have to check out the buffalo market.
    Im just starting to invest in Australia, but the high returns i was seeing on paper in the USA just looked too good not to investigate further.
    Thanks again
    KALTS

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