No Negatives in POSITIVE!
From 0 – 130 properties in 3 years

A real estate portfolio that doesn’t/won’t stall
From 0 – 130 properties in 3 years

A winning strategy in any market
From 0 – 130 properties in 3 years

Thinking outside the square
From 0 – 130 properties in 3 years

The $Positive side to investing for cashflow
From 0 – 130 properties in 3 years

Only accountants like negative geared
From 0 – 130 properties in 3 years

Looking for a book on real estate?
From 0 – 130 properties in 3 years
For $24.95 can YOU afford not to read me!

And one inspired by the X-files…
‘The truth is out there’
130 positive cashflow properties in 3 years

My suggestion would be this…

Does the bank care where the morgage payments come from? Saying this, if the deal is worth holding onto could you not come forward with the morgage repayments on behalf of the seller to avoid the foreclosure? You may also be able to take this off the contracted sale price (or work out some similar deal with the seller) so that it doesn’t come out of your pocket in the long run.

P.S – The rehitorical question.. No, the bank doesn’t care where the payments come from []

Hey Freedom, if you took in the bit where they said the seminars have 60-70,000 graduates on their books, did you also listen to the part where 95-98% of people that attend seminars don’t follow their learning through with action?

Don’t forget that a lot of the investors (and want to be investors) will attend more than just one seminar, so that 60-70,000 x 7 could easily be just 60-70,000.

Hey guys just thought I’d point out that the 11sec rule probably wouldn’t apply to this situation.

To purchase these caravans you would eith have to

a) pay with cash, in which case you would not have a loan to service and your return on cash investment would be approx 22.5%

b) purchase on a personal loan which would mean your interest rate would be 4-5% higher than a home loan rate so your 11sec formula would need to be adjusted

c) use a LOC (in which case the 11sec formula would work, but seeing as it’s a slightly differnet investment and things like expenses probably aren’t the same eg. no council rates, the 11sec formula may be a little off (probably for the better in this case).

P.S – On the 11sec Rule side of things, it seems, like many everything in life, people make simple things seem very complicated. Why not try the way I do it, let me call it the 2sec Rule!

If you know the rent multiply it by 500 to find out the desired purchase price (eg. weekly rent is $200 X 500 = $100,000)

If you have a purchase or asking price divide this by 500 to find out the desired weekly rental (eg. asking price is $100,000 / 500 = $200)

Or

For those who are pretty quick with their numbers, drop the ‘000 and double for finding out the desired rental (eg. $100,000 = $100 x 2 = $200)

&

Add ‘000 and divide by 2 to find out the desired purchase (eg. $200 = $200,000 / 2 = $100,000)

Afterall the 11sec rule is just a 10% return on the purchase price allowing for 2 weeks vacancy. Hope this helps []

Hey Guys,

One reason a lot of investors will only buy significantly below MV is so that they can re-finance their deposit out in a short period of time. For example, if my bank will only lend me 80% LVR then if I want to be able to finance out my deposit in a short period of time (in order to keep the ball rolling and purchase another 1) then I must either purchase the property at or below 80% MV, increase the property value through alterations, or wait for the capital growth.

Given the higher LVR’s banks will offer these days, 10% below MV is a much more reasonable (and I would think easier to obtain) figure, as many banks will lend 90-95% LVR.

The investor must also factor in purchasing costs to his calculations.

Cheers, Leigh

Hey gogirl,

To improve your immediate position you may want to look at refinancing your current loan in order to stretch it over a longer period of time. This would reduce the monthly payments and give you a little extra cashflow.

This would of course only be a good idea if you’re going to use that extra cashflow for usefull purposes, such as further investing [] Read through previous forum posts to get an idea of what investing strategies may suit you best.

Obviously you could use the equity in your property to begin building a portfolio. But keep in mind that if you finance out any equity your monthly payments will increase.

Good luck, Leigh

For all those worried about interest rates and real estate prices.

Please correct me if I’m wrong anyone that knows otherwise…

It is my understanding that Australia is a highly developing country. It is also my understanding that Australia is behind many other countries in development, and ahead of a far greater number still.

If trends are anything to go by you only need to look to the US at their property prices and interest terms. They have been a developed nation far longer than we have, yet their property prices are still climbing. Finance over there has not skyrocketed to 15 or 20% interest. Far from it actually, the current interest rate is as low as 2% variable (or less!) and you can get a 30 year fixed loan for 4% if you’re still not comfortable with the risk!

I’m not suggesting interest rates over here won’t fluctuate, nor property prices. But one suggestion may be ‘if you’re not comfortable investing where you live or in Aust because of the recent boom and low interest rates why don’t you look to a newly developing town or country which may suit your risk profile a little better.’

Hey Kirby,

As a renter myself in Melbourne I first thought like you are – who in their right mind would pay $500/wk rent a $250k property, especially seeing as I live in a brand new townhouse for $280/wk valued at $380k!
Anyway, here’s the $$ on a couple of properties I came across recently on a trip to QLD that might motivate you a little to keep looking.

1. A 3 bed ‘duplex’ (2 lvl townhouse which can be rented as seperate lvls or together as 1) in the heart of Surfers Paradise, 50m from the beach and on the Indy track

Property is rented (to full time tenents not holiday rental) for $650/wk

Last sale price was $220k 8 years ago

Property is a bank repo on the market for $220k! (my thought would be previous investor has defaulted on an interest only loan?)

Could anyone guess the current market value????

Unfortunately I missed out on this one [}]

2. Several 2 bed properties on the market for around $70k each in outer Brisbane. Well rented at $140/wk. Properties are 5 yrs old, in security developments with around 40 others. Developments include pools, tennis courts, gardens & BBQ’s.

Hope this helps, sometimes you just have to open your context to ‘maybe not where I live, but…’