Forum Replies Created
Reeco,
I'm a little confused about some of you comments and the research you have put into them.
Firstly yes the course may cost $7k, 5K etc and if you are skeptical don't join. You asked for a blue collar Gen Y to write and I am exactly that. I joined Results in 07 and I'm now in the graduate course and both were worth every dollar we have invested. We have completed around 4 property transactions in around 18months.
You mentioned that you should get some money back if you don't make any, why? On the other hand Steve does not ask for a portion of your profits if you make them during the course?
Secondly you said that positive cash flow properties do no exist anymore? Speaking from experience I disagree. As Steve has mentioned you have to solve a problem to create positive cash flow property, you can't just open the newspaper and have them pop out at you.
After joining the RP3 we found a property valued at 110k. We fully furnished this property (with all furnishing we already had) and rented it out to contractors for 300.00 per week. This brought us in a small but regular cash flow every week. That for us was proof that positive cash flow properties are out there but you have to create them.
Erin
Hi guys
the auction clearance rates came out for adelaide today and they were below 50% for the weekend just gone so it is really starting to slow, almost stall at the moment
Cheers
NickHi Everyone
Just playing devil's advocate for a bit.
In the areas that i specialize, the house prices have gone up by about 30% in the last year.
With that and interest rates lifting to some where near 10% in the next 12 months, how is everyone going to find +ve CF properties.what are your strategies for producing these properties?
Reno's, Vendor finance, Development, Commercial property
Just some food for thought
Nick
I didn't want to post anything but….
How about giving tradesman a little bit of respect yes its not brain surgery. Its more important as Markkay just said. We are licenced for a reason.
Your house has an electrical fire – your child (or tenant) electrocutes themselves
Your main sewer line has back-fall and wasn't laid correctly so it breaks and all your sewerage is in your front lawn.
Your roof leaksAll because we wanted to pay a little less so the tradesman had to cut corners. Wouldn't you want it done correctly
People don't understand what the four years involves
– In total 1 yrs study at trade school
– 3years on the job training at below minimum wage which is where you put your schooling into practice and learn from other tradesmen
I'm sorry but trying to cram that into 1 year would just be negligent,Finally
Create a relation ship with your tradesmen, they are people, pay them on time show them respect and they will look after you.( maybe a beer or 2 wouldn't hurt either ) And they can become a very important member of your investing team
Thanks
Nicko
HI Matty
I am taking part in the results programme at the moment it has been fantastic.
A couple of things i can suggest are
Think about why you want to invest in property
Read Steve's books ( you take so much more info in if you already have your mind around where the property investing crew are coming from )
Keep posting on this site and using the forums to bounce ideas of other investors.
Other than that just keep researching and involved in the marketThe best advice that i got at the first results BBQ we went to was
NO MATTER HOW MUNDAIN THE TASK SEAMS TO BE, DO IT THERE IS METHOD IN THE MADNESS
Personally it has changed our view on investing in property and made us more sophisticated investors with certain techniques that help us invest
Hope that helps
Nicko & Erin
Be ready to be inspired
Glen
positive cash flow properties are out there in the market they just very rarely adhere to the 11 second rule. you should read steve's next couple of books to explain this in more detail. but you have got to manufacture them. eg add perceived value live turn a two bedroom into a 3 bedroom to increase the rental yield.
Hi everyone
I know its been a while since this topic was active, but the beauty of this forum is that we have just found a property with a pool we want to sub-divide and build. i remembered this from about 3 months ago.Can you build over a pool that you have filled in?
does the soil cave to be tested etc?
Thanks for any help
Nicko
HI Dave
I have just been to a seminar that property investing ran with Martin Ayles.
The basic theme with commercial property is that the rent is everything.
-When it comes to lending off banks the better the tenant (eg. mc donalds v’s a fish n chip shop) the easier it is to get financetheir advice was get a tenant before you go to far down the track of buying
hope this helps
Nick
hi propertypower
I’m looking at a block of four units.
does this void the strata if i own all four of them?
What do you mean by lower LVR
Cheers
Nickooh
I thought that if a trust generates income then it gets assessed like a person.
eg if the trust can service the loan with its passive income from other IP’s
is this true or do you have to go guarantor for every loan that your trust applies for
Nicko
Terry
thanks heaps for all your help not just in this situation. its great to have such a good pool of info to bounce things off
we have a friend that works in the ATO who actually suggested it to us and he is looking into in closer detail at the moment and wasn’t sure if he was pulling our leg or not.
because it has been our PPOR for the last couple of years the mortgage is quiet low and would actually be +ve geared. it would create another form of income for the trust so it can stand on its own when it comes to borrowing etc
Thanks
Nicko
Hi everyone
slightly [offtopic]
Just wondering if any body new the minimum size for a block of land or where i can find the info on sub-division sizes and so on in the onkaparinga council e.g. Christies, port noarlunga etc.
Thanks
Nicko
thanks Qld 007
overall we have a positive portfolio but some IP’s are running at a loss and some are +ve
we were looking at setting up a family trust because we are heading in the +ve direction.
we are also looking to start up a partnership with another couple doing minor property development, will we have to set up a different trust for the partnership or can this still come under the family trust
Thanks for your help
its good to go to the accountant with some sort of an idea rather than going in blind.
thanks again
Nicko
Hi everyone just a quick question
if a HDT = Hybrid Discretionary Trust
does that mean that DT = Discretionary Trust
what are the major differences between the two
pretty basic but just learning
thanks
Nicko
Thanks for the advice
we thought it was a great deal with no application fees.
yes we are Xed and worried about it as well.looks like we’ll be trying a new broker which we have thought alot about since the last IP
Thanks again
Nicko
Hi csi
in my posting the thing i was trying to get across was that the only way i think you can go full time was when you substitute your income with a passive income.
i suggest reading such books as rich dad poor dad and steve’s first book (0- 136 properties i think ) they out line what it means to become finacially independent and opened my eyes a fair bit
hi alto 55
stay away from christies beach!!!
I live here i want them all to my self .
just jokes it is great over here we own 2 IP’s in christies beach and there is a fair bit going on. just down the road someone has bought 2 blocks side by side and built 5, 3 br town houses.
rental return isn’t the greatest but we all have our little tricks.
do your research as always
its about 30 min from the heart of adelaide and at its furthest point 2 mins from the beach
Nicko
hi browny
my partner and i have done almost the exact same thing as you. We bought a house for $110,000, in total spent $1500 and in total approx 1 week doing minor reno (paint etc.)
we are lucky that i was a painter and now i am on my 2nd trade( plumbing ) i know a lot of guys in trades and it is amazing how far a bbq and some beers will go.
sorry to digress
Now we rent the same house for double what the mortgage is. This is starting to replace our income with passive income, which we hope to generate enough to enable us not quit, but cut back our time we have to be employed by other people.
Just remember beers and bbq’s is great but it all cant be going in one direction other wise your mates will get a bit over it. help each other out, Whats the use of having all this free time later on down the track if all your friends are still stuck at work
Isn’t SA great !
Nicko
hi markat
I agree the market is really strong at the moment, just the other day there was an article in the paper saying auction rates were up around 80%.
we have managed to get some positive properties around adelaide you just have to be creative with what you are offering the market and do you research.
Think out side the box they are therehi
yeah we have bought a IP close to a mine it is doing really well
we are now looking closely at the CBD and the beach side suburbs cause they are starting to thrive
Nick
