Forum Replies Created
- Originally posted by WallFlower:
Hasn’t this topic been covered before!!![comp]Hi Wallflower
If this topic’s been covered before, do you have a link? If so, and you can provide it, I’d love to read lots of people’s comments.
Myself, I’m with Cameron. My wife and I did the slow -ve gear way for 16 /17 years [axe][axe][axe] then got into more avid reading / networking / Wrap Kits (both Steve and Rick’s) etc. etc [bike2][biker][bike2][bandana][bike2][biker][bike2][bandana] and am now into land subdivision / house and land packages.
As you can see, I love the bike logo too (symbol of the fast track!)
Cheers
GregOriginally posted by southboy:
I live in gippsland, Vic so if anyone already knows of a good ACC and solicitor for IP in Gippy or Melbourne please let me know!Hi Southboy
Did anyone PM you, or have you been left high and dry without any advice????
If you want to PM me, I’m happy to make a private recommendation of a wrap / +CF savvy / “land – property development savvy” Melbourne accountant who has helped us become more rigorous and professional.
Cheers
GregOriginally posted by FW:I think landlord’s insurance is probably essential when you’re starting out…. So yes, I do think your perspective changes with the size of your portfolio. However one thing is a must – I ALWAYS have building insurance, with an extremely good public liability cover.Felicity
Hi Felicity and Derek
BRILLIANTLY summed up, friends.
Thank ALL of you for refining my comments with really sound advice for the newbies as well as the old pros.
Cheers
GregOriginally posted by Cousinwooly:
Is it posible that what steve states in his book is grossly out of date allreadyHi Cousinwooly
One of the main lessons I’ve learnt in my journey to date is the wisdom in Steve’s byline: “Success comes from doing things differently.” REALLY chew on that one.
OF COURSE the market moves, twists, flexes and turns. The trick is to find those TIMELESS principles and strategies, never let “analysis paralysis” consume you, and just “do it”.
Cheers
GregOriginally posted by Prodigee:
Just go and ask Eddie Maguire for some assistance.I’m with you, Prodigee. After raising a family on a teacher’s wage, $1 Million/year is my cuppa tea [cap]
Cheers
GregHi
Peter Spann lists 3 of Somers books in “$10 Million Property in 10 Years” (p264). He gives 1 star to her two most recent ones, but 2 stars (his top mark) for her first: “Building Wealth Through Investment Property” (1992). It’s a really good starting point, but I worked through all three to get more depth.
Cheers
GregOriginally posted by zen:Cases where property prices fall by as much as 60% has hapenned in few places like HongKong and Singapore(30-40%). They were over inflated to start with and had very bad economic condition for many years. I think if the economy remain bouyant and interest rate remain stable we might not even see a further drop than current prices. But I still think the prices will be flat the next couple of years. You need a recession and high interest rate for median prices to drop 30%. Basically as long as people have money ie good economy and low interest rate they won’t be desperate to sell. To drop 30% of your asking price is desperate.
Originally posted by Greg F:What do others think? I’d love to hear from many of the long term, highly experienced landlords on this forum. Greg
Hi Guys ‘n Gals
May I repeat my earlier request for investors with REALLY LARGE RENTAL portfolios [toff](much bigger than our relatively modest portfolio) to give us your experiences, advice etc re landlord’s insurance?
I’d love to hear others either refute or support our relatively +ve experiences as landlords, leading us to look at Landlord’s Insurance with a somewhat jaundiced eye. [curtain][smarty][sneaky]
Cheers
GregOriginally posted by GreatPig:Discretionary trusts are generally favoured for property investors because of the asset protection and tax advantages they provide.
Am I right in saying that the asset protection comes not from the Discretionary trust but from having a corporate trusee for that trust?
______________________
I know I can, I know I can
Originally posted by Erika:Hi All
Just a quick question Greg, Do you have any type of insurance like car, building etc or is it just landlord insurance you dont have. Do you have contents insurance? ErikaHi Erica
Good question. We’re not anti-insurance, and have a whole battery of insurances in place, just no landlords insurance (i.e., no rent insurance, no malicious damage).
Over 20 years we’ve consciously developed the attitude of seasoned, FEARLESS investors who take all reasonable precautions via rigorous due diligence, and then act. When we were new at this game, we WORRIED:
1. What if interest rates rise?
2. What if we have long term, chronic vacancies?
3. What if tenants trash our place?
4. What if tenants don’t pay rent?The answers:
Question 1: Interest rates will always rise AND fall, just keep a comfortable buffer and don’t over-commit
Question 2: We enjoy over 99% long term occupancy rates by following 3 simple rules:
a) In the good times, charge market rents
b) In tough times, reduce our rents 10% – 15% below market to ensure we’ve ALWAYS got quality tenants
c) Never self-manage. Good property managers are worth their weight in gold.
Question 3: We take a calculated risk on it
Question 4: We take a calculated risk on itSo far, it’s paying off.
Cheers
GregOriginally posted by patrickraj:
Hi folks, Can anyone recommend me a decent accountant in Brisbane please?? regards, Patrick RajHi Patrick
For my money, you won’t do better than Julia at Bantacs. I’ve never met her, nor do I have any connection whatsoever with her, but based on the quality of her posts on this forum my JV partner and I will be asking her to look after the paperwork on our Trust’s land subdivisions. Julia is eminently respected here.
Cheers
GregOriginally posted by kp:Regarding the premium for a portfolio of 20 IPs’…. surely you would be in a good poition to negotiate a discount on a bulk policy ? Hell!! you could almosy underwrite it yourself and start up your own insurance company !! Cheers, Kevin.
Hi Jo and all…
And kp… Long time no speak! [clown][bandana][bike2]
What you said about setting up your own insurance company is precisely what I was getting at once you own an impressive portfolio.[cowboy]
Jo, I’ve never actually crunched the numbers on my 16 properties, but I KNOW I’m way ahead. Please note:
1. Eight of my “16 properties” are 2 blocks of 4 non-strata units. Because they represent 15 incomes (1 property = PPOR), and my property managers still deal with 15 tenants, I see my 15 tenants as 15 separate assets.
2. I have no intention of stopping at 16 properties now I’m starting to experience the “snowball effect” [hairy2] A few hundred IP’s over the next few years is more my style! Some of us might even consider setting up an insurance company for all the people on this forum. [gossip] kp sounds interested… Waddya reckon, mate? Any other takers?Does anyone know a reasonably accurate price for landlord’s insurance on a block of 4 units?
And the 2 bad stories I mentioned I’ve had over the past 20 years? One of them is happening right now. My property manager is going through the tribunal etc on my behalf, but in the end it’ll probably end up only costing me around $1500 (tenants have domestic violence issues, husband flew into rage and put his fist or head through my gyprock wall etc etc and is behind in rent). Even so, I have no intention signing up for landlord’s insurance.
Great response so far guys and gals, but there are a heck of a lot of wise, experienced heads on this forum who DO have 200 – 300 properties right now who haven’t thrown their two bob’s worth in yet. I for one would love to hear your thoughts.
Cheers
GregOriginally posted by Monopoly:Hi Greg, …I finally managed to have evicted, but not before they took it upon themselves to leave me a parting gift…by totally trashing the property, and I mean REALLY TRASHING it!!! To the tune of 11k and whats worse, if that wasn’t bad enough, the next day they came back and finished the job…torching it to the ground; it was a total write off!!! [bawl]
…just remember, don’t bitch about it later when (and if) tragedy strikes!!! Remember too that you are playing russian roulette, and that the larger the portfolio the greater the risk exposure which in turn can leave you with more than your ass out in the cold if the weather changes!! [eh]
Hi again Jo
Brrrrrrrr…… Ass out in the cold? And the weather changes? Love your metaphors. I get the picture (more than you probably realise).
Did you see the movie “The Race”? When the family of four escaped the neo-Nazis in Barbie’s Museum (ie., Klaus Barbie, the Nazi, not the Mattel Barbie) by driving Adolp Hitler’s Mercedes down the highway chased by a throng of vengeful “Dikes on Bokes”? ROFL!! LOL!! (see, I can do it!) I’m thinking of a few scenes before those comedy classics, when the father made his daughter stick her backside out the back window to go to the toilet? Ass out in the cold indeed…. Very, very funny. [cap] [blush2]
IMO? SANF? [blink] Help me out, will you Jo? I get ROFL, OPM etc but SANF and IMO leave me with that not-so-cute, “thank God his mother loves him” quizzical expression on my face (ie, DNC = Do Not Comprehend). I’ll get with the program one of these days!!
Boy, that’s some horror story!! 18 years old, and they TORCHED IT? MONGRELS!! Did the cops get them? Any prosecution? Or did they escape your vengence with some lame excuse? My mum had a similar story, but again, the real exception to her whole investing story.
I love your comment:
” …just remember, don’t bitch about it later when (and if) tragedy strikes!!! Remember too that you are playing russian roulette….”Maybe I’m just lucky with only 2 negative stories in 20 years (and these were mild compared to yours, only about $1500 – $2000 each = $4,000 over 20 years = bulk savings).
I know it’s all about sleeping happily at night, but when I’m that far ahead, I figure one of these days I’ll be adding a horror story like Jo’s to my portfolio. And you’re right, if and when it finally happens, I’ll have no grounds for grumbling, it’s just that I figure even then I’m still way, way ahead.
Can I be cheeky and suggest that your maths is a bit skewed? I KNOW you’ve got more than one property in your portfolio Jo (congratulations!) Surely all of us have got to do our actuarial calculations like the insurers do (ie, over the long term, and across our whole portfolio). We can only beat them by doing it the same way they do, right?
How about including in your calculations all the money you would have saved over those same 23 years if you hadn’t paid Landlord’s Insurance on all your other properties.
For my money, it’s a bit like those smart cookies who don’t have to pay health insurance premiums because they’re so disciplined that each week /month they put aside the equivalent premium into a separate investment account over 20 – 40 years and save heaps (I’ve never had the discipline to do it, but I’ve sure enjoyed using the cashflow savings by not paying landlord’s insurance to buy more and more +CF properties) [buz2] [cigar].
What do others think? More importantly, how would everyone’s savings have stacked up ACROSS YOUR WHOLE PORTFOLIOS in the long term?
Cheers
GregOriginally posted by FW:Everybody who comes to property investing is at a different point in their life, with different dreams and goals. You have to look at what your most immediate goal is, and work out which property strategy will get you there the quickest.
My 7yo son summed it up best the other day – he’s seen both sides of the coin now – “mummy, I’m glad you have lots of houses that make us money, because I never want daddy to go back to a job again”.Hi Felicity
What a great story!!! I love your happy, [cap]optimistic, [biggrin] uplifting [bonjour]outlook. Newbies will be impressed (not to speak of we old timers).[buz2] Keep up the lovely posts
Cheers
GregOriginally posted by Mateka:Hello All,
I was wondering if anybody in the forums had any dealings with the people from We Buy Houses??
Hi Mateka
Check the current post “Joint Ventures to be or not to be?” where I have commented extensively re rick otton etc. The link is:
https://www.propertyinvesting.com/forum/topic/13904.html
Please note:
1. I have no link with Rick Otton except as one of his many happy customers
2. I’m well aware of his JV agreement. Although I’ve never done one with him, I would be very happy to proceed (it’s a very safe way to become a wrapper without all the hassle)
3. Rick is eminently respected on this forumCheers
GregOriginally posted by ridi:Mr greg f Thank you for the sweet comments and thanks for that extra infor…. I actually copied it one other time because it looked interesting. I’v been sponging good information on this forum it’s totally awesome[suave] EXELLENT ADVICE Greg but tell me … with finance so easy to get these days are wraps really really really in demand….I hope you say yes because I would love to take the Rick Otten boot camp ..he adds humour too.. which is good
Hi again Ridi
A few key points about wraps:
1. After dutifully preparing, studying, networking, linking etc, we’re almost ready to do our first wrap. This, however, is linked to a detailed 5 year plan currently being finalised with our JV partner involving many, many, many wraps (I’m just a school teacher, but I’m also an experienced investor currently getting into land sub-divisions).
2. Wraps will always be in demand. As house prices keep increasing, entry to the property market is fast getting out of reach of millions of aussies who desperately want their dream home. Wrappers provide a crucial service to this large group of people.
3. Wraps make you money REGARDLESS of the state of the market. With wraps, you can generate +CF in rising, falling, and static markets. Average people in average jobs need a way to keep buying lots of properties when servicability bites most property investors on the rear end.
4. Growth makes you rich, cashflow doesn’t. CASHFLOW FROM WRAPS ETC HELPS YOU SURVIVE, BUT NOT GET RICH. I copied this recent post from Terry @ Discover Home Loans into my “Golden Gem” MS Word file. Terry has a high profile on this forum. He’s an experienced wrapper lamenting the fact that he sold an excellent house (his PPOR?) in a rising market when he would have been better off holding onto it. I assume he’s still doing lots of wraps, especially as the market has now gone bellyup /static:
“Don’t do it! I sold a good home about 3 years ago to ‘wrap’. If i had held onto the bloody thing I would be rich now. Wraps only produce a low income for the risk and work involved and you don’t get much of the capital gains. Growth makes you rich, cashflow doesn’t. Cashflow helps you to survive, but not get rich. Terryw Discover Home Loans”It’s crucial that you get to your bookshop and read Peter Spann’s “$10 Million Property Portfolio in 10 Years”. You need a balanced perspective (+CF with -CF). Spann’s growth focused, and very scientific about it. I especially love the way he uses median prices to work out
a) Which suburbs he’s going to buy in and
b) What stage of the property market he buys into specific suburbs.Brilliant, inspired use of statistical data.
Cheers
GregOriginally posted by noddies:Hi Steve 3556[biggrin]
The book “a guide to property values 2003” is available it may be ordered online and costs $59.95 as a cd or $39.95 as a book.The link ishttp://services.land.vic.gov.au/landchannel/content/guide
Regards Bryce Inglis
G’day Bryce
Awesome tip, mate. I hail from Qld, and have investing mates in WA, NSW, SA etc. Are there similar products available in those states? If so, can you provide the links (don’t want much, do I?) [biggrin]
I’m especially keen to get info/links re Qld median prices. Also, I imagine this CD gets updated every 12 months. Am I right there?
I imagine I’m not alone in asking you to “pretty please with a jellybean on top” help us out a tiny bit more. There will be a lot of investors here looking forward to your detailed reply on their state.
Thanks and cheers
GregOriginally posted by ajgebhard:
I take you point and the one of all the other CF+ advocates around here. “It’s just harder to find CF+ properties” but then it’s NOT possible to find these opportunities WHILE you are still working fulltime. Thus the praised Financial Independance is not possible with the CF+ strategy. Please, dear CF+ property investors tell me your experiences, prove me wrong and let me know if I’m wrong or too pessimistic.
Regards, JGHi JG
I don’t see you as pessimistic, mate. On the contrary, you present your thoughts with real intelligence and maturity. But may I respectfully suggest that you appear to be operating primarily from the traditional “Buy and Hold” mentality most of us (myself included)started out with as property investors.
The secret here is to realise that the more creative +CF strategies of wraps, lease options, flips etc help you become largely independent of property cycles (ie., with these techniques, you make money ON EVERY DEAL whether the market is rising, falling, or static).
A friend of mine read steve’s book, and said: “I got all excited, took a drive out in the country, and found that I couldn’t buy a single property that fitted the 11 sec formula, and figured McKnight made money because he got the timing right. So I stopped reading his book.”
When I probed further, he admitted he’d got so excited he’d only read HALF the book, and dismissed it without carefully studying the 2nd half which discusses wraps etc in more detail.
The moral? You’ve got to change your whole way of thinking before you really understand the secret of +CG property investing.
TIME appears to be one of your biggest problems. Many seasoned investors get around this by linking with like minded “go-ahead” investors who have both time and expertise on their side in a range of Joint Ventures (JV’s) and splitting the profits. PM me for more details, or go to Rick Otton’s website http://www.webuyhouses.com.au and download his standard JV agreement for $95 to give you a basic idea of how people on this forum get around your problem.
Lots of forumites strive for a happy blend of +ve CF (for income) and -ve CF (for capital growth). Read the highly respected Peter Spann for the perspective of a committed -ve CF advocate.
Myself, I like the notion of “buying wholesale, selling retail” and am venturing into sub-divisions with a JV partner.
There’s lots of ways to make money in EVERY property deal. Lots of us are doing it, but you’ve got to break out of the standard mindset. Your posts show you’ve got more than enough intelligence [buz2] to not only get my key point, but move ahead very fast indeed down this track once the penny drops in your mind.
Cheers and happy further reading [biggrin]
GregOriginally posted by steve3556:Hi All
Do any of you guys know if such reports are available direct from the Victorian Valuer General?
And hopefully cheaper than Residex?
Hi Steve
Why don’t you click the “Members” on the top LHS, go to Peter Spann and PM him directly so you can ask him where to get them?
I’ve just finished his book, and this Median price data suburb by suburb, plus how to interpret and USE IT was the part I loved most of all.
Let us know how you get on, okay?
Cheers
GregSteve (just finished 10 Mil in Ten Yrs)
Originally posted by timtam:http://www.webuyhouses.com.au Although, I’ve had a quick look and it seems to be a steer to another real estate perhaps? I dunno.. i’ll have another look and tell you if i’m wrong. Tam
Hi Muppet and Tam
You got me on that one, Muppet. I’ve never had any trouble getting onto it, so can’t figure. If you keep having trouble getting onto Rick Otton’s
http://www.webuyhouses.com.au , try some of his other sites:
http://www.rickotton.com
http://www.rent2buy.com
http://www.financiallyfree.com.au/rent-to-own.htmI always seem to misspell Otton (correct) with Otten (incorrect). Terrible, especially since I write Spelling books for a major publisher! (Shame!)
Cheers
Greg
