Forum Replies Created
- Originally posted by wanting more:
We have just purchased our first IP just six weeks ago. We have painted throughout, complete new bathroom, new – (well excellent secondhand kitchen), carpets cleaned, garden done etc..We are doing it all now to build up the equity so we can buy another IP ASAP…Being very new to this and on a very limited income and doing all the work ourselves I hope this is the right way for us ????
Hi Wanting More
My tip is a trip to your local bookstore. Ask them to get Peter Spann’s book “$10 Million Property Portfolio in 10 years” My local Angus and Robertson had to get it out of their storeroom.
Spann is brilliant at doing renos, plus explaining the philosophy behind it. I LOVED his chapter on how to use readily available Median price and average rental income data to decide:
1. Precisely which suburbs to buy in
2. The precise point in the cycle to buy in which suburbs and WHY.The maths is dead easy, and warrants learning by heart. I’ve even refined it into my personal little mnemonic. I call it my “212” trick. You’ll work it out once you’ve read Spann. Remember: 212
So my basic tip is to keep forging ahead, doing more and more reading. Don’t begrudge spending a bit of money to buy the statistical data. It’ll pay off bigtime after Spann’s taught you how to read and APPLY it (ie., KNOWLEDGE APPLIED). Very, very well done. Now all you need is a proven, practical investing philosophy to inform and accelerate your future investments.
Cheers
GregOriginally posted by Greg F:My private banker at Suncorp told me yesterday they can do it provided:
1. The property is within 25 kms of a Suncorp branch (are Suncorp in an alliance with St George?)
2. It was less than 10 hectares.
We qualify under the 1st but not the 2nd condition.Hi again
Forgot to tell you another Mortgage Broker asked me whether services such as electricity, phone, water were attached or not. Apparently very important details when banks and Mortgage Insurers look at LVR’s (your block obviously has these given you’ve got your house on it).
Have you searched this forum’s archives? I’m sure your question must have been asked and answered before.
Let us know how you go, won’t you.
Cheers
GregHi Life Ex
My JV partner and I are in the same boat as you trying to get better than 70% LVR in country Qld. My private banker at Suncorp told me yesterday they can do it provided:
1. The property is within 25 kms of a Suncorp branch (are Suncorp in an alliance with St George?)
2. It was less than 10 hectares.We qualify under the 1st but not the 2nd condition. From her comments, I gather the problem is Mortgage Insurance. She’s REALLY keen to keep our business, and said:
“Greg, if you’re happy paying Mortgage Insurance I’ll make a few enquiries and see if I can swing a lower LVR”I’ll keep you posted when she replies.
Cheers
GregIt is a a gift to get insight from a life threatening situation. Nothing like a degenerative incureable disease to get the focus sharp and pointed.
I often see people living like there is no tomorrow, I live like I only have today. There is a major difference between the two.
I want to be rich enough to reach two personal goals before December 1, 2010. I have them on my PC wallpaper so I see it multiple times a day. One is to have enough to build the house we have designed in a place we want to live (probably 3-400K worth all up). The other is to leave working for someone else because I no longer have to. (earning over 100k a year)
Business goals are every 6 months and not dependent on wealth
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I know I can, I know I can
If paulusi is who I think she is then I think that’s right bennido. Taking a position in the market may mean a change in strategy. If values going sideways looks like a long term propostition then having “lazy” cash in buy and hold properties may not be the way those who want to run their investing as a business, want to do business.
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I know I can, I know I can
Originally posted by JLtarra:Adding them to the shopping cart is no drama, the next stage is.
Actually buying them. Also to reduce the quantaties in my shopping cart.John
Ok To reduce items have a look at this URL
http://www.ReallyLongURL.com/shopping.JPG and note that circled button at the bottom. Update quantities will work by you changing the number in the QTY box from 6 to 3 (example) and then clicking on the update quantites button.To buy is a matter of clicking on the “checkout” button to the left 2 buttons of the “update quantites” button…that will take you to the “checkout” to pay
______________________
I know I can, I know I can
Hi there,
I have bought a number of residex reports and find them quite useful, too much information is never enough!
Cheers,
BrookeWeeeeeeeeeeelllllll I don’t know about all of this race stuff.
/Samantha Stevens VoiceThe assumption there is you are in competition with something/someone, and although I am heading in a particualr direction there is nothing but goals along the way. Signposts that I am on the right road if you will. How fast or slow I go is mostly up to how well prepared I am. There will be hills and stones in my shoes, but I can predict those to a certain degree, and be ready.
You know the elite athletes that run the 100 metres will usually take only one breath for most of the race. Their eyes are fixed on that finish line. I used to compete myself in long distance races, and just because they are longer doesn’t mean your field of vision widens. It narrows to a point and stays that way for klm after klm. Nope that’s not for me in this life.
I would rather be the traveller gazing about and living as I go.
Hmm is it wrong to mix philosophy with business?
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I know I can, I know I can
Originally posted by Lucifer_au:
ROFL!!!! Now he will never come back!!!!
Excellent! Rgds. Lucifer_auOkay Lucifer…
…you got me on that one. What the hell is ROFL???? You’re not the Minister of Education, are you?Awaiting your decoding with bated breath. [biggrin]
Cheers
GregOriginally posted by cbarlow:Hi Greg. Sorry for not getting back to you sooner but my computer is on the brink of crashing and I’m using a computer at school.
Don’t worry, the technical jargon doesn’t bother me. I am pretty sure I understood everything you mentioned(I think).Hi Chris
If I didn’t scare you off last time, then BE AFRAID, because yes (your worse nightmares have come true) I’m a school teacher!!
So pretty please with a jellybean on top, concentrate on your exams and then GO FOR IT. Good luck with your PI RESEARCH, SAVINGA AND action. Spend some money to link with Rick Otten, maybe if you become a spotter he’ll give you a discount to come to his Boot Camp!!
Cheers again
Hi again
Try going to Rick Otten’s website
It’s a great read. Follow all the links, and also go to his other websites eg.
The really good news for a Grade 12 student who wants to get into property is that Rick will pay you (I think around $685) for sending him a few photos of properties in your local area which fit his description (ie, a spotters fee).
A great way for an unemployed student to:
a) Make a few easy bucks
b) Get to know one of the few PI gurus who is WIDELY RESPECTED on this forum
c) Get some “on the ground training” re looking at deals in creative ways (including NO MONEY DOWN DEALS!!)Cheers
GregHi again Chris
I hope we didn’t scare you off by getting technical on your simple request. Don’t you DARE get intimidated just because we happen to know what we’re talking about. That’s the whole point of this forum. We NETWORK with other movers and shakers, and NO AGE OR INCOME is too young or too little to get into property.
On my part, I got technical out of respect and admiration for you and your intelligence in knowing that a $69,000 marina returning $220 per week is a great return. I assumed you’d read Steve McKnight’s books. What other PI books have you read?
Whatever you do with this particular marina deal, don’t EVER give up on your voracious PI reading habit, nor your weekly savings habit. You’ve started out on this journey much younger than most, and you’d be amazed what a 17 year old school kid with NO JOB, NO MONEY can achieve if you have enough drive, determination and the guts to network with people who are really “doing it, not just talking about doing it”.
Post a reply, okay?
Cheers
GregOriginally posted by cbarlow:Hi. My name is Chris and I am 17. I am interested in property investing but am not yet working and am still in school.
Hi Chris
Congratulations to a really turned on 17 year old!! I predict you will go very, very far as long as you keep doing your research, ask ther right questions, read stacks of books, and get yourself to a couple of recommended seminars.
Re your question on the marina, you need to find a Mortgage Broker experienced in finding finance for Marina Berths (maybe you could try running a small advert in the boat trading magazine, or for a quicker response PM a few of the +Cash Flow savvy brokers on this forum).
6 months ago I tried to source finance on a serviced apartment near a Marina in Mandurah, WA (a bit like Noosa Beach here in Qld). The resort was 100m from the marina and gave brilliant returns (comfortably met the 11 second formula). The bad news was that financing it was virtually impossible. Most banks wouldn’t touch it at all, or were only happy offering 50% -60% LVR (Loan Value Ratio, a simple rule of thumb banks use to tell you how much they’re prepared to lend you on any property).
A great website I’ve saved to my Favourites re LVR’s in different locations around Australia, go to:
http://www.pmigroup.com.au/LocationWizard.asp?This site probably won’t help you much in this specific instance, but is a MUST for your future “due diligence” research on every deal you do in the future.
Why are the banks so reluctant to finance serviced apartments (and I imagine it’s the same with marina berths)? Because usually a management company stands between the bank and yourself as owner. If you default, it’s much harder for your bank to enforce a Mortagees Auction on you to get their money back. Banks are used to having ABSOLUTE POWER over you and me, and won’t brook any dilution of their control. Hence they steer clear of financing serviced apartments (not sure if this applies to marina berths)
If you have cash, you may be able to turn this to your advantage in your negotiations with the berth’s owner (they’re often so desperate to sell, they’re quite happy to leave 20%-30% as a 2nd Mortgage carry-back into the deal. This helps you make up the cash shortfall if the bank will only lend you around 50% -60%
If it’s any help, I did find a WA broker who was able to get me 80% LVR with a local credit union who was comfortable lending on units in their local marina because it was a significant local landmark. PM me and I can send you his details. He’s good value to talk to, regardless.
Cheers
GregOriginally posted by Greg F: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
Hi again,
I assume you’ve been exhaustively studying the other trust thread on the forum board now, with the brilliant suggested sites:
http://www.strategicwealthmanagement.com.au/e2content.asp?Request=Structure.Structurehttp://www.sjq.com.au/sjq/site.cfm
Happy reading
GregOriginally posted by elika7264:
Why not purchase a copy of Dale Gatherum-Goss’s book “Trust Magic”. That might answer a number of questions. The book can be purchased via his web site. Regards, HelenHi Phil and Kate
Ditto on Helen’s advice re buying Dale G-G’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 (soon) 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 advise BOTH of 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.
I stress the “togetherness” aspect of both of you going along this exciting journey together. 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 start 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 Pelicaninvestments:It is still achievable, but it is not an easy path to go down…. we’re at 37 after 14 months……You should also read Peter Spann’s 2 books….. very good, and, there is also a good strategy in there to help you on your way, called LEAPFROGGING…..Cheers Scott
Hi Scott
A few quick questions:
1. Peter Spann’s books: what are their titles?
2. Where can we buy them?And 37 properties in 14 months. AWESOME, BLOODY BRILLIANT! Congratulations. Four more quick questions:
1. Did you achieve 37 in 14 months solo, or in a JV like Steve and Dave (ie., 130 properties = 65 for Steve, 65 for Dave)?
2. Did you use OPM (Other Peoples Money)?
3. Did you “hit the wall” when you ran out of 20% cash deposits?
4. If so, how did you overcome this mini-glitch of an abstacle?Cheers
GregOriginally posted by redwing:KP..are you out there?
Ausprop?
Hi Redwing
KP and Ausprop are out there. Why don’t you just look for their latest posting and click on their PM button (if you haven’t already done so)? [cap][biggrin][blush2][cigar]
Cheers
Greg FHi Chris
I suggest you start by:
1. Buy Steve’s Wrap Pack (was $2,195 a few months ago, BUT NOW ONLY $695…BARGAIN!)2. Go to Rick Otten’s http://www.webuyhouses.com
http://www.rent2buy.com3. Get yourself to one of Rick’s “Boot Camps” asap. The money “invested” is really invested.
Do these 2 things, and you won’t ever look back with regrets.
Cheers
GregOriginally posted by jman:Hi all,
If anyone is looking to buy I am selling a ****************ADVERTISING***************Hi Guys
Guess if anyone is really interested, all they really have to do is PM jman (who is jman?). Might be worth it.
Cheers
GregOriginally posted by Pelicaninvestments:Sorry folks, but didn’t the OP ask for mentoring ???
Not a sales pitch !!!!
Josh, If you’d like to email me, I’m happy to help out….. currently doing deal #37…….Hi Pelican
Hope I haven’t put your nose out of joint with my post. I’ve never met Joe Scarcella, and have no connection with him whatsoever. In fact, I’ve only just read his info pack myself.
Just reporting how impressed I am with his services, and the recommendation another respected forumite told me Rick Otten gave Joe from the podium at his latest boot camp.
Pelican, if I may be allowed an overture of my own, [blush2] would you mind if I emailed you for advice on my wraps?
Cheers
GregYou may know the cost of everything…. but what about the value ????
