Forum Replies Created
yeah
*enthusiastically*
It must be Steve’s way of rewarding obsessive/compulsive internet-addicted geeks who spend waaay too much time online hanging with ‘virtual friends’ and shootin’ the breeze about property investing
*shocked, looks as self*
especially good if you hardly know anyone in real life that can remotely relate to what you do, and even if you did, wouldn’t necessarily feel so able to be open about it as with an ‘as anonomous as you wanna be’ forum.
i love you all
Mini
well done crashy
I love it!
-i suppose it has water views???!!!
BTW can we all post pics somewhere or can only you?
I’d love people to be able to post picscheers-
MiniI think that you have a really good point here Captain.
So much for ‘passive investing’ – the finding of the deals and setting up of the investment is anything BUT passive!! And yes the maintenance on 130 houses would be huge!However residential RE at the bottom end of the market is an entry level investment. As you build your portfolio you can always trade up to commercial property, either residential commercial or to businesses where the tenant pays the outgoings and often signs a lease for many years. That can also be professionally managed.
However commercial property is more expensive and most people can’t afford it when starting out. Residential RE is also considered to be the lowest risk, because in any economy people need somewhere to live, while commercial buildings are the first to be hit in a downturn.
Dolf de Roos tells about buying office buildings for millions, at a discount of millions! He says because there are less buyers the further up the market you go, the deals get better and better.
cheers-
Minijust random soundbites from this thread –
“close to impossible”
“going to dry up”
“bubble bursting”
“investors are going to be burned”
” maybe we have missed the boat”
“may be a pipe dream”
(limiting beliefs, fear, lack, inactivity, stuck, not thinking)
“think beyond this and look at other methods”
“look far and wide”
” find and review info on 30/40 properties per month”
“do some research”
“Put in some more work, lots of it, and you’ll get some rewards.”
“there will always be opportunities”
“try different areas and approaches “
“You have to be ready to TAKE ACTION”
“after a days worth of driving I now have three properties all +ve geared under 50K”
……………..
‘unlimited’ beliefs, action, abundance, thinking, activity
Hi Robert,
>If we tried full DD before signing a conditional contract in Oz >at the moment, we wouldn’t even get the paperwork out of >the file before someone else had a contract on it.
congratulations, you’ve just identified a limiting belief
My whole family were skeptics. And my Dad is a chartered accountant!! This was only last Christmas. you are ready to start putting your money where your mouth is only when you have an answer to every ‘what if’ anyone throws at you, and you can totally explain the numbers to anyone – that’s when you know what you’re doing.
Rushing in to something in a panic and then being burned when it goes wrong and always seeking the ‘get rich scheme’ is what John Burley describes in his book as one of the levels of investor that’s one the way to becoming a clued-up ‘automatic investor’ – read his book ‘money secrets of the rich’.!!!!!!!!!!!!!
I just bought a fibro house, that didn’t look like it – it looks like that wide weather board that a lot of new units are built of these days. When i found out I thought ‘EEK!!” and asked the lawyer and the builder’s report guy should i be concerned.
‘it’s only a concern if you want to reclad the house’. ‘Will I want to reclad the house in the next 20 years?’ ‘probably not, that stuff lasts for donkey’s’ was the answer. it’s even OK to repair it, the repairs are just stuck over the top with a non-asbestos modern equivalent.Worth checking though if the local council has any laws such as ‘all asbestos must be removed by the year 2010’ or something..
cheers-
MiniFresh from a seminar, I asked my accountant (who also lucklily is a rental property investor himself) about it – he says once you get to the point where the trust/company stucture is going to save you more than the cost of setting up and maintaining them, then it’s worth it.
i.e. when it’s cashflow positive!!Of course for the asset protection benefit, only you can say whether it’s worth doing for that reason and your own piece of mind, however for me insurance cuts it for me as ‘asset protection’ at this stage.
cheers-
MiniHi there,
I agree that if you can turn an ugly duckling into a swan you can make money. And that you can get the ducklings for a song if they don’t appeal to the market – i.e. if the first homeowners aren’t biting then there’s 92 of the competition knocked out!!!
Are my places ugly ducklings? I don’t know. Maybe not.
Possibly just ordinary. Plain. Neglected or run down rather than ugly, as such. I never set out to buy ugly ducklings or do renovations – I’m a ‘punter’ as well as a landlord – however the places needed them. i.e. the one described as ‘reasonable’ by the agent was the dump, the and one called ‘tidy’ was reasonable, and the one called ‘immaculate’ was very tidy, but in a very granny style. So I basically either needed to spend more/go up a price-range per house, or else bite the bullet and buy cheap but fix them up. Also when you went up the market a bit you didn’t necessarily get proportionately more rent. However the type of tenant you attracted was better, maybe.Even my ‘immaculate’ granny house – one day that beige stripe wallpaper, orange glass lampshades, and brown-fleck carpet just has to go. do you know the look i’m describing? 30’s i think. But because it’s rented as is and was quite ‘genteel’ I didn’t feel I had to reno it just yet.
cheers-
Minihey christian
drop me your email and I’ll answer you privatelycheers-
MiniHi Richmond,
“I was talking to an agent today that had some good deals that he approached me with cos he knows I’m not a tyre kicker.”
!!!!!!!! we need to talk!!
hey I’m coming down to melbourne for a couple of days, you wanna have coffee???
cheers-
MiniHi all,
>If I read you right, you’ll give them a 4-5% deposit when >contracts are exchanged after doing your due dilligence, you >may borrow the 80% from a lender and you may have the >other 15% cash or invested ready to pay at settlement.
>Is that a plausible senarioHi there, the actual time-frame is 1) contracts are exchanged and signed for the negotiated price subject to due diligence
2) due diligence, for which I allow ten days. I did it five for my first property, and was stressing when I didn’t have the builder’s report back at 7pm the night before it went unconditional….I got it by 8pm, however i learned that it’s better to have twice that time!! 3) i decide if i want to pull out or go ahead, and contract goes unconditional on the 10th day, which is when the 4-5 percent deposit is due.
4) settlement where the other 95 percent is due. Either the banks will lend you the rest , or you have to put some cash or equity loan in, or get vendor finance>Interesting statement you make saying you present your offer >THEN do you due diligence. How do you structure your >special condidtions to give you an out if you DD doesn’t come >up to scratch and you want out?
Under ‘conditions’ I have 1) subject to satisfactory LIM report (name in NZ for local council dossier info on land, i.e. claims, caveats, does it have mines? Is it earmarked for road widening? was there a building permit for that garage? that alteration? was there a permit for the free standing multi-fuel burner and is it code-compliant? (otherwise insurance won’t pay out if there’s fire cause by the illegal fireplace!! doh!! and you have to make it code-compliant after the fact, or rip it out!)
2) subject to satisfactory builder’s report (costs 300-400 bucks and you really know what you’re up for then!! Right down to age of hot water cylinder, and which taps are dripping, how many years roof will last…) especially especially important to me as I have been buying in another country – and haven’t seen the properties in person, apart from that the agent has sent me a bunch of pictures of every room inside and out. On that note once upon a time I looked in person at a zillion houses, and found one, had a builder’s report, and it came up a lemon. that’s when I realised i don’t need to look in person as I can’t tell anyway – and all that happened when I looked in person was got emotionally attached and ‘i really want this house!!!” and my negotiation skills went out the window. I feel a lot stronger negotiating on the phone at a distance – and then the RE agents don’t get to see that I look like bob marley’s white hippie cousin- cause I don’t LOOK like someone a RE agent would take seriously -but I sure can turn on Ms Serious and Professional Adding-this-to-her-portfolio Mature and Experience Investor Mogul voice. That’s just my little reasons as to why, and stuff.
3) subject to solicitor’s satisfaction with all terms and conditions (blah blah some legal thing that the lawyer puts in)
4) more clauses if there is an existing tenant (we want to get all the rental docs, etc etc etc evidence of bond lodgement, credit check,)
5) a clause if the land is leasehold, subject to solicitor viewing the land lease to his satisfaction
Never bought leasehold land yet, but have looked at it.
so I get many chances to pull out.
BTW the exact wording of the clauses is very important so don’t write your own, get your lawyer to do it.I have heard of people doing due diligence before they sign the contract, but I can’t imagine them getting a very good deal then – the vendor knows you want it!! I haggle the price first, sign, then do the due diligence. “I prefer to buy something with an existing tenant cause then you know it’s liveable, even before the builder’s report”. That was me six months ago, but that rule has been tossed out since, as funnily enough the two I bought empty were more liveable than the one with the tenant (who left the day after settlement anyway -doh!!) it was a dump! but I knew that though (throught the BR) which is why i got it for 16. And it’s come up amaaazing after the reno.
One more thing is that I find it much easier to not get emotionally attached if I haven’t seen the property. ‘fall in love with the numbers, not the house’ Kiyosaki says, and that’s been working for me. Also if i had to physically find time to look, I just couldn’t have bought three this year, as I also have a full-time life.!If the maintenance/fixing up costs are going to be high after you get your builder’s report you can then say ‘ill go unconditional on this if you drop the price 5K, as you can see from the builder’s report it’s gonna cost me ten to make it liveable’…..
Sometimes it works and sometimes it doesn’t, but you get to decide if you want to buy that property at that price in that condition, and if you don’t you can pull out (all without any deposit being paid.
cheers-
Miniyeh, re renos, if you want the bargain properties, they are often the yuckiest ones. Once I leverage my way up the food chain to buy ones that are totally good to go as is, I might leverage my time that way and stop doing renos, but as i am just starting out, I can maximise my $$$ better if I buy a place for cheap and fix it up rather than buy one that’s already been fixed up at a premium.
although one of the places I got was beautifully maintained by the owner occupiers, the other two have been rental properties for years, and basically have had no maintenance done for 15 years. And as far as time goes I’m a really busy person and can only spend a long weekend doing it. So for the first one my boyfriend and I painted for four days with two labourers helping, tradesmen did everything else. With the second one my boyfriend is doing it for 5 days with one labourer and a friend, tradesmen for everything except painting. Not spending a fortune like the block, everything second hand where possible (benchtops, basins) – new where necessary (bathroom seratone walls) – more of a ‘reno kings’ type renovation. Maybe a 5K renovation all up.
Makes a huge difference.cheers-
Minigood on you Kristine.
good on you Kristine.
good on you Kristine.
I think this one is the best
http://www.dolfderoos.com/html/software.htm
I think this is the second best
or look under ‘software’ at richmastery.com.au
I think PIA is the third best
That is of the ones I’ve seen or tried.I want I want I want REAP
cheers-
Mini
