Forum Replies Created
yes, that’s another problem that is also linked to the lack of them – they know that they can pretty much do what they like, cos we ain’t gonna be able to get anyone else.
There’s a company in QLD called the Tap Doctor (franchise, probably heading south soon) – plumbers – and they have a vastly different way of doing business. they will call if they are running late, they will call if they will be early, AND they will call if they will be on time. they will take their shoes off at the front door, they will fix any other little things that you need done, and clean up after themselves…..
No wonder they’re doing a roaring trade. Reckon there’s definitely something in that for any other enterprising tradie who wants to set up such a system!!
Cheers
MelWestan is great.
My question to you is – why must one have a website to be credible? If you want Westan to put properties up there, my guess is they would only be past deals, as putting current ones up there would be a bit silly as they are often found for a particular person who has commissioned him to do so…
Cheers
Mel$100 per week? Are you sure? That sounds like a lot of money for that price of property.. I pay a lot less than that on some of my properties purchased for $340K (fully financed).
Have you got a QS report?
Just because you have now read one book and come to this site, doesn’t mean that you have to completely change strategy. there must have been reasons you bought the place. If they don’t stack up now it’s a bit different, but I wouldn’t sell, cos then you would be out of pocket.
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Melha ha [biggrin] You certainly tell a good story Gatsby….
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MelWe just purchased a house for my brother. The foundations are ‘eroding’ at one point. the previous owner ‘knew nothing’.
However, when my brothers were climbing around under the house they found a lovely hydroponic setup – complete with the screen door that used to be on the laundry – not sure where the wooden door went though – guess they didn’t need it as it was an outdoor laundry though……
I reckon if they smoked lots the bright pink bedroom wouldn’t have been too good for them [biggrin]
Cheers
MelOriginally posted by georgisj:Interesting idea re other avenues of increased cashflow.
Have you pursued the 2nd mortgage/mezzanine funding option to increase cashflow?
How do financiers view this income?
Do they accept 100% of the income for the purposes of serviceability?I was ‘this’ close to securing a 30% income with profit share, but the others in the syndicate couldn’t pull their money together fast enough and we were pipped by someone else….
I haven’t looked at doing Mezz for a few months as I needed all cash to purchase in Sydney, and am putting other cash into livestock which will atually provide better returns too.
As for how financiers see it – i am not sure. I wasn’t looking at the income to show to them, more to fund my neg props/lifestyle.
Another point is that you won’t always get the steady cashflow, rather a payout at the end – just depends on the offer, and what your needs are.
Cheers
MelCome on guys, spill the beans. Who signed up for the 3 day. Kay, I think it’s the 3 day business school for real estate investors – at least it was last year when I went.
What tapesets and stuff did you buy?
I have bought these over a number of years, and some have been gifts, so the most I have spent was $1400 when I got Dolf De Roos entire package – including REAP and REMS – and then they sent them to me again, so I had two copies. For a split second I thought about keeping them, but then my conscience kicked in and I sent the second copy back…
I’ve got:
Cashflow 101 (and e game)
Cashflow 202
Cashflow for Kids (and e games)
Financial Literacy
Secrets of Professional Investors (with John Burley)
BluePrint for Success (manual)
Your 1st Step to Financial Freedom (with Diane Kennedy)
Rich Dad’s Secrets
Choose to Be Rich
Property Investors School (Dolf de Roos)
6 steps to becoming a successful RE Investor
How to Increase the Income from your RE (with Ken McElroy)Are there any new ones – besides books and stuff?
Cheers
MelBirdy,. if you haven’t already, you would be best off separating the $50K that came from your equity to a separate loan to that which is your PPOR loan. Your accountant will like you better.
Then you work out the interest you are paying on the $50K (if you split it out, make sure it’s IO while you pay off your PPOR), and add that to the costs for the commercial loan. If those figures are more than your incomings, then you are negative. If not, you are positive cashflow.
How many years on the current 5 year lease are left? Remember that the tenant holds the option to extend – not you, so they may not take it up.
I think it’s a good buy, and you sound like you’ve researched and are happy with the location, so that’s good.
Cheers
MelHey Alister, is there any way that we can still see the names of the threads rather than numbers when we look at the Active Members list?
Cheers
MelOriginally posted by Geronimo:
Generally most experienced developers can borrow funds for around 12-13% from lending organisations, so the obvious question is, why would you offer more if you don’t have to?Brendon, I’ve spoken to a few ‘experienced’ developers, and the reason they would offer 30% is because if they borrow the money from you and don’t have to use as much of their own, then their profit is less on that deal, but they could be doing more than one development at once, thus making more profit.
I believe that using their own equity is the most expensive money they can use….
Miracle, a really good solicitor to talk to in regards to lending to developers is Bernard Tan, who works for Maddocks Lawyers in Sydney. If you have the money, he can also bring deals of his clients to you – we were just pipped on one super deal cos some of my syndicate couldn’t decide quicky enough[thumbsdownanim
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Melphilip, have a look in the Heads Up forum – there is a Sticky there dedicated to books and their reviews from forumites…
Cheers
MellifeX, don’t quite understand your model – bit hard to align stuff on these boards[confused2]
I think I understand what you’re saying (hope).
You will set up a unit trust, with the shares owned by your family trust, and your friend’s family trust (or however he decides to do it).
The trust will buy a house. The company will rent the house from the trust (using a head lease so it can sublease)? And then will rent it to somebody else? That could work….
With your JV and a unit trust, you’ll have a trust deed, which specified who controls, how shares can be sold/transferred etc. If you choose to have another agreement outside of this you can – I didn’t – and you would probably specify things like the length of the partnership, how long things were to be held, exit strategies etc. etc. Totally up to you.
You and/or your friend could be trustee (or have a company that is trustee which either/both are directors of). Not sure on appointor for Unit trust – my solicitor told me that the decision had to be made by the unit holders (a 51% vote or something).
Cheers
MelAgree with Felicity, but I think Your Mortgage magazine lists property sales in every state every month (even Canberra – yaaaaaaayyy![biggrin]) Although I don’t know how ‘telling’ it is – apparently Paddington went up something like 29% this year already – I wish[biggrin]
Cheers
MelCoke please![biggrin] I’ll stick my hand up and admit that I drink too much – although my sister drinks probably 2-3 times as much diet coke….
I question the ability to clean the clothes, as every time I spill coke on my clothes – it STAINS!! Same same the carpet..
I do drink a fair bit of water though..[thumbsupanim]
Cheers
MelIt concerns me when I hear of people ‘walking away from their deposit’, because it doesn’t end there! If the developer has to sell their units for less than they had agreed to buy them at (although I think the forfeited deposit is taken into account) the purchaser is still on the hook for any loss…..
Cheers
MelHi jancrows
sorry I can’t help with hotels – can’t remember the names that we stayed in as it was a few years ago, but we did find out that if you plan to stay anywhere en route, it’s best to book in from ‘afar’ as you get cheaper rates that way…. There’s some holiday bureau type place (ours was organised through Flight Centre with these guys) who can get cheaper rooms, but are limited to the numbers etc.
Anyway, my point for posting was make sure you go to the Cadbury Factory in Hobart (and take plastic bags so you can carry your freebie chocolate without it melting – or you having to eat the whole lot at once). You also MUST book in, rather than just turning up (which we did!!). Hope you have a good time.
Cheers
MelThe moral of the story…whenever a man lies it is for an honourable and useful reason.That’s ok, you lads keep deluding yourself that this is true….. And occasionally we might let you think that we believe you[biggrin]
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MelOriginally posted by HT-007:
If you get audited, will the ATO ‘automatically’ also audit your partner (husband/wife)?Don’t think so – my Dad got audited, and Mum didn’t….
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MelI know the Navy has a ‘smallish’ base there, so obviously it doesn’t impact too much on the place???? Those guys would always need rentals, unles DHA have it covered…
Cheers
MelHi Michelle – welcome to the forum.
Derek has made a recommendation on Perth accountants before, as have a couple of others. Having never been west of NSW, I can’t help you with locations, but if you do a quick search for ‘perth accountant’ hopefully it will come up with the results.
Cheers
Mel
