I suggest a beancounter experienced in this area may be a better option, there are a lot of ‘depends’ in this one.

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Mel

Sorry but I don’t quite understand your question: “daedal” = ???

[?]
Mel

Agree,

Plus securities within the same lenders grasp will always be assessed at an interest rate 1-2% above actual for ‘safety’ whereas loans with other lenders will be taken at face-value repayment commitment. Stupid but that’s the rub and it’s crazy to give up serviceability if you don’t have to. Also often the bank that had the best deal in…[Read more]

Me !!! Because after a 3 month lag there will be OODLES of cheap property in good areas to buy which will give much better yields short term and after everyone recovers and gets back in – good capital growth as well. [8] Something about Lemmings may be appropriate here …….. []

Mel

Howdy!

Step 1 – read Steve’s book
Step 2 – tell us what you think is your best option … good luck!!

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Mel

Aziz_ek

What is your plan for this new property? If you are buying it to renovate and resell for example you may consider a low doc loan, but if not I think Stuart has some very sound advise – you really need to do your sums, because watching overextended people lose everthing is not fun.

Stay keen though and welcome to the forum [] – you’ve…[Read more]

Howdy,

Have you talked to him about getting into higher yield properties? Like Stuart says he can get into low docs easily with his equity, but it’s income risk he needs to focus on.

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Mel

Probably not, but I’d get the final inspection done pronto!
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Mel

Not strange – suss – are they looking for existing ‘experience’ or cold hard cash paying existing ‘clients’ ?!?

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Mel

Hmm – and you are pursuing this career why exactly …. sounds like torture!

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Mel

What it is that attracts the shonkies to Qld ?!?

Will16 – basically proceed with extreme caution and always spend the time and money to get the contracts thoroughly reviewed by independent legal advisors, the sharks circle around this one bigtime and hence lenders are v v wary to lend to these (and anything else ‘serviced’) for all the reasons…[Read more]

I think Warren’s strategy is actually 70% buy and hold, 30% arbitrage, and by buy and hold I mean he generally buys into about 20%+ of companies he believes in so that he has a seat on the board, and he’s held some of the same shares for 50+ years (he’s in his 70’s now, and interestingly backing Arnie’s bid for Senator of California – shame…[Read more]

Agree with Crashy, maybe a better option would be to list who the brokers are, who the RE agents are, who the accountants/lawyers/etc are … ?!?

Anyone interested?

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Mel

Good work Crashy, hard to read but agree with your end result!

Also re the diversify philosophy, I’m not so sure.

Ever read any Warren Buffet books? He calls the Wall Street mantra of ‘risk reduction through diversify’ lazy and plain crazy. He’s more along the ‘pick your investment strengths and work it work it work it’ line and he’s the…[Read more]

Great first post Meni, looks like you’ll be someone to watch – welcome []

Best advice I can give you is to see a commercial broker asap to help you with these financing options.

I am a residential prop broker in Bris/SE Qld, and work with a very experienced commercial broker who can help you (or anyone else for that matter). Let me know if you…[Read more]

Plus you can always throw in a few quick profit opportunities – eg buy cash under market prices and resell at market prices immediately, small reno’s etc. All investors dabble in a bit of arbitrage from time to time … keeps the blood pumping!

Cheers,
Mel

Hi Mitch – welcome aboard!! []

First up, you’re a bit old for me to adopt (31) – people would talk …

Secondly – Crashy & Spider are right on the money & I agree to keep the bomb & sell the pulsar. I’d rather be a rich smuck in a bomb than a poor smuck in a shiny metal chick magnet (now I sound 31 – doh).

Second job’s also a good option if…[Read more]

It’s getting late, I’m seeing lots of little zero’s …… good for you Mr Gus. Frankly I’d do a bit of both – buy some cash flow crappy/capital growth huge ones outright and buy some cash flow +ve/cap growth low ones, trying to keep the balance solidly income producing.

Keep us up to date, this should be interesting!!

Cheers,
Mel

Hmm yes – but do ‘they’ invest all their eggs in on-paper property ?!?

What the heck – The Female Frank Lowy of luxury townhouse developments here I come …[]

Mel

Can I put down a three teethy smile option to adopt you in six months, providing your Richby30 endeavours are on-track …. [] [] [] [] ?!?

Keep posting your successes, and failures, and I’m sure we’ll all be rich inside 12 years …. good work Sonny!!

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Mel