Forum Replies Created
Hi again Ridi
In case you haven’t already been “adviced out”, I thought I’d copy another post I put on a recent forum to Immortality, a keen property investor like yourself.
Lucifer ALWAYS gives good advice, so listen to him too, okay? (come on Lucifer, show Ridi your funny bone [biggrin][cap])
Cheers
GregOriginally posted by yack:
Make sure you also read Peter Spann and Jan Somers to get a well rounded view on property investing.Hi Immortality
As you’re obviously DEVOURING and LOVING stacks of books, my tip is to spend approx $2,000 to set up your legal and tax structure asap (ie., don’t make the mistake many of us on the forum made when we started out of skipping the 2 most crucial steps: 1. Goal writing and 2. Getting your structure right, namely set up your Family Trust).Note in the beginning of 130 properties, Steve and Dave wrote out their goals and set up their structure, and only then did they “go for it”.
The absolute “must reads” are Steve McKnight, Rick Otten, Peter Spann, Jan Somers and Dale Gatherum-Goss’s “Trust Magic”. There are a few books out there on trusts, ALL of them totally mind boggling EXCEPT Dale’s books. I paid a discounted $168 for both his books (Trust Magic and Tax Battles), and they both have pride of place on my PI bookshelves, alongside Steve’s Wrap Pack and Rick Otten’s Wrap Pack.
If I had my chance to start from scratch again, my wife and I would JOINTLY:
1. Stop pinching pennies and set aside around $5000 – $10,000 for our self education RIGHT AT THE OUTSET (ie., where you are now).2. I strongly encourage you to go to Rick Otten’s http://www.webuyhouses.com. Click on EVERY link, download all his raves, read them exhaustively and get yourself off to one of his “Boot Camps” asap (Rick’s an aussie, despite the Boot Camp jargon). He’s awesome (and in case you were wondering, I have no connection with either Steve or Rick except as one of their many highly satisfied clients).
3. AFTER attending the Boot Camp, value your relationship further by jointly WRITING DOWN your Goal Statement (see Steve’s book, and pay $695 to buy Steve’s Wrap Pack: 3 months ago it cost $2,195: BARGAIN!). My JV partner and I are going through this Goal Setting exercise right now. Not many do it, yet ALL the guru’s urge you to do it. If you’re REALLY serious about amassing an awesome portfolio, DO IT!
4. Do not pass Go, do not collect $200 until you have completely fulfilled Steps 1 – 3 above
5. Carefully check out the distinction between a Hybrid and Discretionary trusts re which one allows you to offset -CF income as well as +CF income
6. Check that your accountant (and Mortgage Broker, by the way) is what forumites call “+CF savvy”. Not many are, and it is CRUCIAL you get an accountant + mortgage broker who GENUINELY fits this description. The mortgage broker should also be able to source “full disclosure wrap finance” at the drop of a hat. If your broker can’t do this, or asks dumbly “What do you mean?”, get the hell outta there fast.
If you’re married or in a strong relationship, the “togetherness” aspect of both of you going along this exciting journey together is important. It really helps if you are of one mind, united in your determination. My wife and I, plus our 20 year old son, set aside 3 nights a week to JOINTLY study Steve’s Wrap Pack, listen to the CD’s, and take personal notes. We started with 1/2 an hours private reading time for each chapter, then switch on the CD, and take personal notes.
Hope this helps
GregOriginally posted by Lucifer_au:
Also what experience in property do you have? When I talk to potential investors I show them deals I have done (with figures – CoCR), how I have tried to limit their downside, I also show them potential deals I’ve got lined up or ones that I had to pass up. You also need to know how to structure the deal properly (with legal contracts). If you can’t show them the above – you shouldn’t be raising funds. You esp. shouldn’t be raising funds if you can’t detail the upside of property either. Rgds.
Lucifer_auHi Lucifer
I found your post so good I copied it to my “Forum Gems” Word file to remind me to check out the Van Tharp fellow you mention. But hey, give poor Ridi a break, mate. She says she’s just a P Plater:
“Firstly just like to say how much I enjoy this forum I’m just a P plater investor (very passionate one)”…and I know you probably didn’t intend coming across like a hard nailed professional who tells it like it is, but we all have to start out somewhere, right? From your always excellent posts, I know you better than that. Don’t frighten her away, okay?
Ridi, for my money, I loved your post. My advice? Keep reading, don’t skimp on spending money on seminars and you too will one day soon have the track record as a professional investor that Lucifer and many others on this forum have. Go for it, girl!!
Cheers
Gregsorry guy’s… the ATO’s site isn’t the easiest to get arround (maybe it’s more because of the content…?)
May be a point mentioning to your account though?
oh I agree entirely, but I interpreted the point wasn’t so much about ‘Balarat’ being the place to invest – rather Balarat represented the right oppurtunities at that point in time.
Depending again on you particular strategy..
hence – it’s not realy about location – more about problem solving
I was sort of getting the impression from Steve’s books – that the whole point was NOT about location?
Rather, the deals are everywhere just as long as you looked for them..
(heh – easy for me to say though I guess… just starting out [blush2][blush2]
I was under the impresion that CGT was now calculated over a 7 year period?
eg. you were no longer entilited to an exemption for 12mths occupancy as PPoR.
hmm.. I’m trying to find it on the ATO site now [blink]
Tam,
If I had asked for peoples opinions on whether they thought I should buy the home first, find a customer first etc etc, I could appreciate some of the the comments made. I at no time did this, I simply wanted a simple answer to a simple question ‘Who should I get to show the home?’ This question has been answered by Sue, PK and Paul who all offered a solution and I thank them for that. All others who have replied have at no time attempted to answer the question, just told me their opinion that I’m not doing it the way they do it, therefore I am doing it the wrong way and can expect to have problems. Whilst I can appreciate constructive criticism, I cannot appreciate people suggesting that my way is the wrong way just because they don’t do it like that. Imagine how boring the world would be if we all did everything the same way!!! Im doing it the way John Burley teaches how to do it and he has done by far and many more wraps than anyone on this site! And having just bought our 8th property in 6 months and making a substancial profit, we must be doing something right. Our way is right for us! But… as I’ve said in previous posts, this is not even the topic at hand! It was a very simple question that required a very simple answer not long winded debates on who’s right and wrong. And please point out to me exactly where I asked for applaud on what a great job I’m doing? Get real! You are just soooo far off the topic at hand that its really not worthwhile replying anymore. So I’m going to sign off from this forum, never to return, debate closed, thanks for coming, lights out, have a good day.
Brooke ‘the shortest answer is doing’ D
Jo,
Thanks for your concern, however I don’t have a ‘dilemma’ and Im not in a ‘bind’ as you so graciously put it. What I have is a very nice 3 bedroom home with a garage that I can either 1. Keep as a buy and hold as its cash flow positive, 2. Sell it under vendor finance or 3. Flip it for quick cash as I got it valued $45,000 more than I paid for it 8 days ago! I would like to wrap it as that was my original plan, however my exit strategies are all equally viable. So no, it isn’t a problem to ‘keep the buggie’. If thats the worst case scenario, then hey, I’m laughing. And I don’t drink milk so there’s no chance of me spilling any…
‘Don’t find fault. Find a remedy’ – Henry Ford
1863 – 1947Cheers!
BrookeDerek,
Yes I did ask for feedback – regarding my question ‘who should show the home’? I didn’t ask for opinions on whether what I’m doing is right or wrong! I am very happy with my decision to buy the home now and sell it later just like countless other wrappers do including John Burley. This is my race to run, my choice to make and I am more than happy with it. AND I never asked for any opinion on this! What I asked for were ideas on the questions asked and people like Sue, PK and Paul were kind enough to offer some food for thought. That was all I was asking for – End of story! I certainly didn’t ask for a debate on peoples opinions as to the right and wrong way to do things. If you have no constructive comment on the question asked, then please, don’t say anything, its that simple.
‘Nothing would be done at all if a man waited until he could do it so well that no one could find fault with it’ – Cardinal John Henry Newman 1801 – 1890Cheers,
BrookeOriginally posted by yack:Make sure you also read Peter Spann and Jan Somers to get a well rounded view on property investing.
Hi Immortality
As you’re obviously DEVOURING [bike2] and LOVING stacks of books, my tip is to spend approx $2,000 to set up your legal and tax structure asap (ie., don’t make the mistake many of us on the forum made when we started out of skipping the 2 most crucial steps: 1. Goal writing and 2. Getting your structure right, namely set up your Family Trust).
Note in the beginning of 130 properties, Steve and Dave wrote out their goals and set up their structure, and only then did they “go for it”.
The absolute “must reads” are Steve McKnight, Rick Otten, Peter Spann, Jan Somers and Dale Gatherum-Goss’s “Trust Magic”. There are a few books out there on trusts, ALL of them totally mind boggling EXCEPT Dale’s books. I paid a discounted $168 for both his books (Trust Magic and Tax Battles), and they both have pride of place on my PI bookshelves, alongside Steve’s Wrap Pack and Rick Otten’s Wrap Pack.
I currently have 16 +CF properties (still growing), and am just Joint Venturing into our first 32 block land subdivision.
If I had my chance to start from scratch again, my wife and I would JOINTLY:
1. Stop pinching pennies and set aside around $5000 – $10,000 for our self education RIGHT AT THE OUTSET (ie., where you both are now).2. I strongly encourage you to go to Rick Otten’s http://www.webuyhouses.com. Click on EVERY link, download all his raves, read them exhaustively and get yourself off to one of his “Boot Camps” asap (Rick’s an aussie, despite the Boot Camp jargon). He’s awesome (and in case you were wondering, I have no connection with either Steve or Rick except as one of their many highly satisfied clients).
3. AFTER attending the Boot Camp, value your relationship further by jointly WRITING DOWN your Goal Statement (see Steve’s book, and pay $695 to buy Steve’s Wrap Pack: 3 months ago it cost $2,195: BARGAIN!). My JV partner and I are going through this Goal Setting exercise right now. Not many do it, yet ALL the guru’s urge you to do it. If you’re REALLY serious about amassing an awesome portfolio, DO IT!
4. Do not pass Go, do not collect $200 until you have completely fulfilled Steps 1 – 3 above
5. Carefully check out the distinction between a Hybrid and Discretionary trusts re which one allows you to offset -CF income as well as +CF income
6. Check that your accountant (and Mortgage Broker, by the way) is what forumites call “+CF savvy”. Not many are, and it is CRUCIAL you get an accountant + mortgage broker who GENUINELY fits this description. The mortgage broker should also be able to source “full disclosure wrap finance” at the drop of a hat. If your broker can’t do this, or asks dumbly “What do you mean?”, get the hell outta there fast.
If you’re married or in a strong relationship, the “togetherness” aspect of both of you going along this exciting journey together is important. It really helps if you are of one mind, united in your determination. My wife and I, plus our 20 year old son, set aside 3 nights a week to JOINTLY study Steve’s Wrap Pack, listen to the CD’s, and take personal notes. We started with 1/2 an hours private reading time for each chapter, then switch on the CD, and take personal notes.
Hope this helps
GregHi Richard,
Thanks for the feedback. I have completed a number of wraps in the past year and have always done what you mentioned, finding the purchasers first then the home. This works ok however I like to keep my options open. Having attended numerous courses on the subject we decided to do what everyone else does (and what we have paid alot of money to be taught!) and try this one out by buying the property first and marketing it. I paid $135,000 for the home and the current owners are happy to rent it back for $195 per week, pretty much covering our repayments. In addition I have a 10 week settlement in which time to find a buyer and I am really confident of doing so as we have run some ‘dummy’ ads and now have a list of people who are interested. But even if I can’t move the property for some months it will be rented at a great return anyway.
Anyway all of this is totally off my original question!! It was simply ‘who do i get to show them the home’? As I don’t live in the town is it worth my while to drive down there for a day, meet the potiential purchasers and show them the home or ask someone else to do it such as the agent who sold me the home?
I’ve now decided that I will show the home myself as it is much nicer to do business with people face to face rather than over the phone and I won’t be leaving my destiny up to an agent I barely know!
But anyway we’ll see how we go with this one and continue with which ever method suits us better. I always like to keep my options open. I’m super confident that we will move it before it settles and if not, well we’ll just be landlords for a few months!Cheers,
Brooke
‘Behind every success is a courageous decision’Hi Derek,
I totally disagree. I believe that doing something is alot better than doing nothing and if we all tried to have every answer to our many questions crystal clear before we started then I doubt we’d start at all!
I simply asked for ideas on what other people do. Of course I had considered my options before I bought the home HOWEVER it is always helpful to see how others do it and maybe they have better ideas than me (such as Paul who replied – thank you Paul). I am quite prepared to go there and have an open house myself and show the home, ask the real estate agent to show the home or ask a friend that I have in that town to show the home. I will also now consider Pauls idea of letting them show themselves through. Plus I have a 10 week settlement to work out the best way of doing it!
To everyone else who replied I really value your input, it’s nice to know people out there are prepared to offer help rather than criticisms that certainly don’t solve the questions asked.Cheers,
BrookeHi Julia and Stephen
I saw this in Qld’s “Sunday Mail” last Sunday, mentioned it to my personal banker yesterday, and the ripples are only now starting to be felt.
Would this thread be better placed in the “Legal” rather than the “Resources” section? We need as many knowledgeable people as possible on board for this one. An extremely important, landmark decision. Got me worried.
Cheers
GregIt is illegal in Australia to send unsolicited email.
In Australia, spam is defined as ‘unsolicited commercial electronic messages’. New Australian legislation relating to spam – the Spam Act 2003 – came into effect on 10 April 2004.
http://www.aca.gov.au/consumer_info/spam/informationforbusiness.htm
______________________
I know I can, I know I can
Bet you get a few PMs just from asking that question.
______________________
I know I can, I know I can
Adding a quick 2c on the bosses time. In the push to “political correctness to the max” many seem to be feeling guilty that they have a bias. Bias is natural and should be seen as such as we would not be able to form an opinion. I like yellow more than I like blue, but I like blue more than I like red.
Having an irrational bias without looking at the reason for your bias (prejudice) is the bit we should be worried about. You may have been treated badly by a particular person of a particular nationality and that will make you wary of the next person of that nationality (I guess if you had been burned by a particular suburb or property type you would be the same). Keeping an open mind to the next person of that nationality or property in that suburb, in my mind, points to maturity.
In this country we can afford to be less prejucided in other countries I guess. Afetr all we don’t live with the fear of violence and war (mostly). Those that have will have been brought up to be insular and fearful of others will take longer to get to where we are….I try to be a good example of how I would like others to be.
______________________
I know I can, I know I can
I usually can correlate how open I have been to others and the universe by my carpark Karma. Get a good spot and I am grateful for being rewarded for my attitude. Can’t get a good one and I can instantly remember times I was not pleasant to others or thought uncharitable thoughts.
I guess some would put it down to their deity?
______________________
I know I can, I know I can
All humans are philosophers, to what degree depends on how open they are to learning from their experiences and then being able to express it to others. The best lessons I have learned have come from the worst experiences I have had. Strange but true.
I would say the same for the “top-level movers and shakers”. I bet none of them got to where they are without some major dips in the road that made them think about what they are doing. I also bet that none of them got to be successful by doing something they are bad at either.
Looking around at anyone I think is successful at what they do I can see they can be equated to an animal hunting. They have their territory (area of expertise) they know how things should smell and look (have an intimate knowledge of the market) and they know when to chase the deal and when it just isn’t worth it.
That is the level of knowledge I want to have. I am not sure if I have it instinctually. I don’t necessarily want to spend years learning it myself before I take a step towards my prey. That is why I am here as I can tag along with the successful hunters and learn from them (*warning bad pun*)so I can make a killing.
I don’t think you need to be a genius. I would think that when it comes to dealing with humans that a good EQ would be more useful. I have met many high IQ people that have little in the way of common sense. But the ability to learn and to extrapolate that learning into other areas so the “bad lesson” does not need to be learned over and over again, would be the most useful skill of all.
Lessons I have learned along the way have meant that I don’t just “exist” any more, I am taking an active role in my life. I have also learned that for me the accumulation of money, property etc isn’t important at all in the long run (yeah funny thing to say on a forum such as this). Yet that doesn’t mean that my passion to succeed in this area is ill founded. It is grounded in the belief that being a whole human means knowing that death comes to everyone and what you teach is infinately more important than what you have learned.
I better stop now [biggrin]
______________________
I know I can, I know I can
Hi Tyrone,
I recently purchased an ex Dept of Housing property to wrap and I havent had a problem. The home is in great condition and freshly renovated and the building report came back excellent. I think with any home you need to conduct your due diligence and you generally will pick the home up cheaper than normal because its ex Housing Commission. Just make sure that the rest of the homes in the street are ok and it isnt surrounded by Housing Commission homes or you may have trouble re selling it (if that is what you intend to do). Also just check with the police station there if they ever have trouble in the surrounding area, may give you an idea of whether it is worth buying or not.
Cheers,
BrookeGood for you!
remember procrastination is like masturbation, you are only F$%@ing yourself
______________________
I know I can, I know I can
