Thanks Clint … and Belinda.

We have also seen many highly geared negatively cashflow investors bend, buckle and finally bow out! … we have also saved some on them during the process.

WE have also found that even with some of the very attractive properties we have sourced….. the numbers have been low on the uptake of these properties…. however we have on the other side of the coin managed to secure some very secure white collar investors that have signed on with us …. so every cloud has a silver lining.

on another note … lease options have been on the increase….. we just secured 2 in the last 2 weeks and now control $900,000 of property (the 2 properties in 2 weeks) for 5 years ….. and all for only $5001 dollars … $1.00 for a $525K house and $5K for a 400K house…..

The deals are really out there and all you have to do is know how to solve problems (funny sounds like Steve Mcknight talking)…. and build report.

Anyway … good chatting with you all and good luck in the best time in our current market for buying
http://www.housesmart.co.nz

Go back to them with $7/week increase.

you can now (thanks to an AUS and NZ govt Co-operative agrement) also claim losses if you are negatively geared from across the tasman….. I believe this has bee since April 2008.

Hey There,

I have been using Lease options for quite some time now…. we do them over here in NZ…. (Did them in Aussie before coming back here!)

We have only ever seldom paid more than a $1.00 option fee for control of the property for at least 5 years. In the curnet market we are not diong them for any less than 7 years.

You will be amazed what a seller will do if you can offer them a solution to either stop the bank rolling in and selling it… or they are not able to meet the repayments…. we have even helped out investors that made the 3 Key fundimental mistakes (paid too much, Negative Geared and wrong area)…. some are sick and tired of owning a lemon and with the market stale and even falling in some places still…. if you can offer them the plaster that will stem the bleeding so they can get on with things…. they are most happy to let you take an option on the house.
Options are Great tools…. you do need specialist training (Just like a mechanic with all the latest electronic diagnostic equipment)…. if you do not have any experience … there is a mine feild of issues and challenges that await you…. however you will never learn from sitting in your armchair and thinking about it…. Go and do whatever it is that you yearn for and you shall learn the tricks of the trade as you go along…. just remember not to get yourself exposed….. always plan your exits (plural)
Cheers
Kiwi!

Hey Paul,

Have you tried Profit Rentals In Invercargill?
We found that with companies that were managing properties and also selling houses…. we figured that the reason we were not getting the service we needed was because over 80% of thier income was generated through selling houses and that is how much of thier company resources would be driven toward…

Plus on the change the the investor gets so peed off with the performance of thier property …. they may even get to sell the house for the investor.

I have found through the school of hard knocks that my best choice is a company that makes all its bread and butter out of managing properties….. if they do not perform …. they do not get paid.

Just my thoughts and experience on the matter.
CHeers
Shane

Hey There,

Depending on your investing stragegy (Cashflow, growth or combination)….. check out medians in areas and also rent returns…. this will give you an idea on yeilds in the area…. also check price trends and growth… plus net migration in the areas you are researching…. then rental demand (vacancy rates and how many rentals on the books … and how fast or slow they are sitting on the books) …. sales demand etc (days to sell, number of sales)….. once you have pooled all of that info together you can make some more informed decisions and opinions on what your next step should be…..

Also don't follow the herds….. make your own decisions and in your own time …… making a high pressured emotional decision could be one of the biggest mistakes you make (or biggest leson you will learn). I network with a lot of investors and almost all that have lost money on deals ….. when I probed as to what made them buy in the first place ….. said they made it on emotional and not common sense (business) merit.

Hope this gives you a good start point.

Cheers
Kiwi

We are also buying ….. if you could forward your stock …. I would be happy to take a look and perhaps work out something that would work for you…

Cheers,

Hey All … good to see some action happening here again!! We have been getting 14-16% (better cash on cash return though) Yeild…. using Lease options and sandwich lease options in NZ.

Some we have gained control (one for as little as $1.00) (yep…one Dollar) …. now that is a good way to get properties secured and develop some cashflow in a down or sideways market!

lots of good bargains to be found if you nose is to the ground.
but most of all …. have lots of fun out there.
Cheers
Kiwi

Hi There!

I have not been on here for a while …… however here is my input.
Good on you for getting property as a vehicle for self supporting you financially.

My suggestions Before you start:

Sit down and clearly define your goals and aspirations …. put all your dreams down and work out what and why things are important to you…. if you miss this step …. you will end up hitting a wall and end up bieng just a hoby novice investor. (if that is what you want then hey fantastic!).

Put down your fears also and remember to put down your fear of what and where you will end up if you do not embark on your journey.

If you are looking for a more safer investing method depending on your age, skillset, borrowing power and investor knowlege… you could read Michael Yardneys 'Grow a $1M portfolio in your spare time'

Get a line of credit and sit on it until you are ready to invest… however only use it for investment purposes and lock in your current loans on fixed interest only …. if you are on a good rate.

Invest your time and network with others …. + CHECK EVERYTHING OUT FOR YOURSELF! – DO NOT TRUST OTHER PEOPLES INFORMATION….. the best person to look after your interests is yourself….

If you do decied to proceed and are serious about getting into RE investing …. get some structures set up to protect your wealth…. or you can perhaps do this later if you choose to (at an extra cost)

Get some expert advice from solicitors and accountants…. and get a mentor if you want to fasttrack your growth (even doing a JV with an experienced investor and sharing 50% of the profits …. will quantum leap your progress).

Anyway best of luck,

SW

http://www.rent2ownnz.com

Hi There,
In essence yes your repayments will increase and possibly turn it around to Neg Cashflow. There are a couple of things you can do … perhaps increase the rent off the properties… or go to Interest only or refinance into a lower rate or use an ARM loan or Lesae Option or Wrap to increase yield and reduve holing costs incurred to you (tenant buyer pays expenses on maintenance+ no vacancy issues to deal with).

Tha answer to your second question is perhaps… continue buiding your investment property portfolio with CAshFlow properties and you will not get serviability issues as they are all paying for them selves …. then perhaps when you have 25-30 Positive cashflow properties…. they will pay for your equity draw down and your PPOR without effecting your lifestyle. – So your invstments will effectively pay for your home.

Best of luck with youre investing .
Kiwi
http://www.rent2ownnz.com