Forum Replies Created
Hi Leigh K,
how are you!
what I was trying to say was that there are always deals that are better than average and those are the sort I go for.
As far as the fee goes, I think it’s about right compared to other independent bird-dogs and for the price-range of properties. If we add up our costs and time and find it’s not enough, or we have too much demand and not enough deals, we might put it up, who knows, but for now, we’re all good.
I have heard of 4-5000 bird dog fees for one property. !!!!!! And they do a valuation.
Valuation is critical in capital gainsville I guess, if you are trying to convince a client that they are buying ‘under market value’.
But I think that is such a crock anyway.Why wouldn’t the vendor sell it at this supposed ‘market value’ rather than to you at 20 percent discount?
Well the answer is because you aren’t getting a discount, you’re buying at market value, because , as the successful purchaser you are the market.
cheers-
minihehe!!
i’m working on it!!!
Very interesting dealios going on behind the scenes, ‘lots of lovely problems to solve’“+15% return in a town of say 25,000+”
the higher yields are usually
*but not always*
in smaller towns, with the larger towns generally having
*but not always*
lower yields (i.e. 12 percent, town of 40-50,000).
I am of course looking for those
*but not always*
deals,
if you get what I mean!! cheers, Mini
I want to get 4 this year, 1 each quarter.
Hi melbear,
“If I saw his history, and saw continued income of 40-60%, including losses, I’d happily hand over my money.”
good luck. What I mean is, i doubt it very much. if that *was* his trading history, surely he wouldn’t have to ask someone for money to make a margin on for himself?
He would be ‘loaded’ just like westan said.Also he wouldn’t have fled when people asked questions, he would have just answered. simple.
He’d made people scared to do due diligence so they felt they had to do it secretly, which to me is the opposite of integrity – you should be *encouraging* your clients to do due diligence on you, it’s one of the ways of saying ‘I have nothing to hide’.I also didn’t like that campaigning of his ‘followers’ behind the scenes to go on the forum and stick up for him. Did you see that email too? That was so lame.
It wasn’t a good look. Why lie? I would have had more respect for him if he’d answered the bloody question truthfully instead of lying. If he’d just said, yeah, I’m offering free mentoring to get possible leads for my option writing.’
well, at least that would have been the truth.this was after a long period of telling everyone to sell up. On the forums at least.
Of course you people can give your money to anyone you choose, but if there is the odd shark out there, the only way to find out if one is or not is to ask questions and do due diligence. Bill hates that term – ‘due diligence’ – and for a long time I wondered why. i came to the conclusion (after all the hooha) that he must have hated the term because he didn’t want due diligence to be done on *him*.
mini
hi whoever said check the street directory, well I have one of course, but I’ve never heard of the place in 7 years here. Never knew any business or person that lived there or anything. I’ve only ever heard of Matraville out of the suburbs James mentioned. My radar just isn’t picking up those places.
cheers-
mini‘There is a suburb called Bank’s Meadow which is also very close to Sydney which I wouldn’t be surprised about if that is going to be the next Paddington.’
Um, I don’t think so.
Where is it? Because I have seriously never heard of this joint. that tells me it’s probably not ‘close’.
but then again I don’t even think St Leonards is ‘close’ to the city.Now Redfern, newtown, balmain could be the new paddington – paddington is becoming the new woollahra IMHO. Stanmore is the new Leichardt…
oooh and I like Sans Souci. Although I think the bad-taste bridage may have got in first and semi-ruined it, i think there is a lot of scope for cathyjayne.com.au style goings on.
cheers-
MiniI think it’s the Aussie govt’s idea of a win-win deal. A bit more cashflow for the govt, and capital gains for NZ. (you with me??)
melbear,
v. interesting. I wonder if it’s become that way because it’s been such a hot market for so long and that soon it will be ‘duck season’ again i.e. a buyer’s market, and buyers will be able to put whatever clauses they feel like in, agian.
I always put a zillion subject to clauses in my offers when I put them in in NZ and so far never had a problem getting them accepted.
The one agents and vendors hate above all though, in my experience, is ‘subject to finance’ because that’s the reason 90 percent of deals fall over, not builder’s report, apparently.
cheers-
minihi guys,
as you need a lawyer to buy property don’t you? well you do in NZ – and as a lot of them give you a fixed price anyway – why not talk with the lawyer before submitting the offer?
I did that, and the lawyer helped me word the clauses exactly. I still run deals past him every single time.
call me cautious, or sensible, but I say consult the professionals.cheers-
minifabulous post larelle, keep em coming!!
cheers-
minigood point del – I mean about 15000 people most of them not working at the mill!!
I’m looking at some deals there myself at the moment.
trying to figure out if 12.8 percent return is good enough for clients or not to botherAlready negotiated the vendor down a bit
there’s one I can probably get for 13.5 percent though
cheers-
miniyack, you know I would say (i know, I’m like a broken record – ) ‘buy positive cashflow’ properties in regional areas with a high rental componenent/demand in the area that will break even with a 10 percent yield *after* holding costs. In NZ now or Australia soon. probably in the lower third of the market, but not the very worst.
but given your stated fears, and respecting your opinion based on your own analysis of the market, the future, and what you know and are familiar with, sounds like you’re not that keen to buy at the moment, and that therefore you probably won’t.
but – you say “This is now 2004 not 1997. What was attractive then is not attractive now.”
when is a 20 percent yield not attractive? it works for me any year.
Also, I have the perfect solution for people who fear interest rate increases – FIX your rates.
cheers-
minihi Philip,
Although I don’t have property there myself yet, the prices are a bit higher than where I’ve been finding deals, I am negotiating a deal there myself at the moment, actually.
What are the yields that you’ve found there out of interest?
PM me if you want. I’m working on paying 1999 RV prices today (there has been growth since then) to mitigate the risk of the value perhaps going down if the mill stuff happens.
I guess that means I’m buying under value, in some sense.
I think long term the town will be just fine, it’s not that small, 15000 or so, and it’s close 60-100k to Hamilton, Rotorua and Taupo. Also the waikato district is booming well. Hamilton is to Auckland what Newcastle is to Sydney.cheers-
miniMy ‘vested interest’ is that I want my properties to be as ‘set and forget’ as possible. I want to hold them all long term (give or take the odd consolidation) and certainly don’t want to be frigging around watching the market getting in and out all the time like a trader, trying to always buy at the bottom of a boom and sell at the top. sure, I’d refinance at the top of a boom and be cashed to buy more at the bottom – but I want to be in the market all the time.
i think if I don’t like where the cycle is at as a buyer I would cast around for a market where the cycle is at a different point more conducive to buying.
cheers-
minioooh, pisces,
that sounds so…*mad*….so un-pisces….
hey, don’t sweat it, it’s just a forum. I figure, there are way too many billion people in the world to be friends with all of them. let alone have bad blood. Way to draining and time-consuming.
Leverage: only ‘hang’ with people you like, like you, things flow, etc, and don’t waste time and energy on the others. Don’t give always expecting to get thanks because it won’t happen. Just give for giving’s sake.
cheers-
mini (oops nearly signed my own name.! hehe)There is no doubt that ripping people off is a way to make money, and that HK did it by secretly offloading his apartments on to people he was ‘teaching’.
But as long as HK still has secret structures and ‘asset protection’ so ‘his’ money (which isn’t really if he ripped it off) is safe from claims, then he will *always* be a rip-off guy – unless he rectifies this.
Ad, *shhhhh* you’ll spoil the surprise!!
cheers-
minihi melbear,
i live in a house in Paddington much like you’re describing except freestanding. We rent it.
well, you know what they say, buy low, sell high. If you buy now….even with this tricky tenants in common thing – which sounds fascinating – and like you say could be a great way to get into the market – and i don’t quite get it, but the question I asked is,
is the vendor, your friend, (oooh, alert: is that a good idea?) is your friend maybe trying to hedge the fact that the property might go down in value – some time – with all this interest rate thing, all the media screaming ‘bust’ to us to make the general population wary of property – all these things that like it or not might cause a price correction *especially* at the higher medium end of the market and beyond, where this paddo house might very well be,
– I dunno. I mean, you are doing it for capital gain, right?I just don’t know if you can guarantee that right now.
you might. you might not. It might go down. might take a while. I’d be careful with that amount of money.My gut reaction says be very careful. but what do i know? Just an opinion really.
cheers-
miniI’ve been to Steve and Dave’s seminar twice.
I don’t have time to write a long post right now (will later though) but let’s just say, I wouldn’t be here now with 3 IPs and can talk till the cows come home about RE, if I hadn’t gone to the seminar. Yes, I had read at least 10 books, and even bought CD recordings of seminars. but nothing beat the real thing, and in particular the cashflow positive thing. Seminars are experiential in a way you can’t ‘get’ by imagining, or not going. It was the thing that made me *take action*.Not everyone needs a seminar to take action. but i did. I needed to know the tools to get the confidence to analyse my own deals and know what the risk was, if it was a good deal, to make me confident that i could go and buy property and wasn’t making a mistake on something that could ruin my life and make me worse off. Basically the seminar gave me an answer to all my fear questions – the what if this’s and the what if that’s.
During the seminar we learned about EVERY investing strategy and when to use it, but positive gearing buy and hold was the strategy that leapt out as being perfect for me to get me closer to my goals with absolutely no hardship to lifestyle – in fact an ever improving one just thanks to investing.
to sum up the seminar gave me 1) knowledge and 2) confidence that I can go out and do it. Solve any problem that comes across my path.
If you can’t decide if you need to go, I’d say…
if you’re still finding excuses about why you can’t invest, but you really want to, then go!! (or else stop making excuses, solve your problems, and get on with it!!)
cheers-
MiniI wish there were more hours in the day so I could do more. I wish i didn’t need to sleep. that the whole world could read. That Oprah was president of the US.
I wish they moved Australia and new zealand a little closer together, so Aussie wouldn’t be so hot and NZ so cold. Close enough for a bridge. I wish I had a personal assistant, a cleaner, a pool guy, gardener, and a chef. And a garden and a pool to go with. (I’m working on the PA, at least!)I wish I didn’t *get* that all that stuff wouldn’t be cashflow positive for me right now but that I can have it later if I do things right, now.
I wish credit cards had never been invented and that there was no such thing as ‘temptation’.
Oh, and world peace.
cheers-
mini
