Well done on buying a positive cashflow property!  Not easy to do.I assume your other properties are negatively geared?If so, I think you are saying you plan to sell your fantastically performing property, to fund your losses from the poorly performing properties.WHY WOULD YOU DO THAT!(Sorry for shouting!)Wouldn't logic dictate you'd be better to…[Read more]

Hi Hankie Rich,My education connections were in Florida, so that's where we set up our LLC.However we're buying property in Phoenix, with our Florida LLC.We frequently visit family on the western side of USA so preferred to invest where it's convenient for us. Question for Jurgen: How much do you pay a year, getting taxes done for many different…[Read more]

Can I just point out, that if you have set up your LLC in a non-disclosure state, and then want to borrow hard money, you will reacha dead end.I have been accepted for a hard money loan (Florida LLC), but had friends knocked back because they have a Wyoming LLC.

Hi Dragonflyz,Yes, there are many different opinions out there. And different goals. And different strategies to get to the same goals.It can be confusing. Maybe the wosrt outcome is to fall into "analysis paralysis" and never do anything.And maybe the next worst is to believe everything we see and fall for anything.Most of us learn more as we go…[Read more]

Hi Dragonflyz,I can see that you are trying to prepare yourselves for a good financial future.Good on you!There is so much to learn, and a "small" hiccup can be quite costly  eg if your property doesn't have any capital gain for a few years, why bother?From my understanding, I think that depreciation claimed may have to be repaid if when sold, t…[Read more]

I wasn't referring just to the first IP re you financing, just trying to demonstrate that negaitve gearing eventually will be self-limiting.Maybe you can reach IP3 within the next few months.But then your costs will start to add up.eg if all your properties cost you $8,600 pa out of your own pockets, that is after the rent. ie they make a loss…[Read more]

Hi Dragonflyz,From our experience in investing, banks are very conservative about lending especially on a promised bonus.From their worst case scenario, what if hubby loses his job etc.It depends what you're investing strategy is.From a rough estimate, I think your IP1 may cost you about $8,600pa out of your pocket, to cover your expenses.As far a…[Read more]

Hi Tobyson,We found during a mining lull, our property in Dysart with a pool wouldn't rent. Companies refused it.Solution: we got rid of the pool!If this property you're looking at already has a company lease though, I doubt they'll let it go at the end of the tenancy period unless they no longer need it.I wouldn't not buy it because of a…

Hey Property Investor 1,Thanks for this well-balanced viewpoint and the article.quickchick

Good subject, risk management.While I agree that it is a factor, on the other hand I would argue that if we are not prepared to stretch ourselves out of our comfort zone, we will not progress.If I only did things I was 100% sure were very low risk, I would never do anything. NOTHING is risk free, even government bonds! But even leaving money in…[Read more]

Hi Angel,

I appreciate your comments.

I agree that there is risk whatever you do. To me the worst risk of having money in the bank is inflation… eg $100,000 this year will not buy as much next year!

5 years is a long time, and I’m sure you will be in contact with your buyer and know in advance if they will want to extend the contract…[Read more]

Hi Angel,Thanks for sharing your story.It is encouraging to hear of your creative tactics to buy a big pricetag property with very little money down, and a built-in profit!I have been thinking through the deal,and have taken the liberty to analyse it (to the best of my knowledge.)RISK:I guess the risk in the deal is that by the end of the lease,…[Read more]

Hi Manoj,I appreciate your comments.I am sure you know more about super rules than I do. If I were to live solely off my super from age 55, I would be broke and on the pension at 67 for sure!ie. we don't have a lot!We have $60,000 net income from a pair of duplexes and a block of 7 units.(Which is a bit more than net of what I would earn working f…[Read more]

Interesting to hear where you are coming from, Manoj.You speak of buying property in a SMSF.I agree that that can be an effective way to make the most out of super. The problem with super is, that you can't reap the benefits until you reach 67 (or similar retirement age).And if we have another sharemarket dip before we have enough super to buy…[Read more]

Manoj, I have been reading your posts and have a few questions…You have just stated that "hopefully there will be no income after expenses and therefore no tax to pay".The whole point of the strategy this post is about, CF+ deals, is to make cashflow from our investments.In fact, with the unltimate goal of replacing our job income and freeing us…[Read more]

In other words, buy the property in the Trust in the first place! Or waste a lot of money,  in stamp duty and conveyancing.If you are putting in an offer  and need to set up a trust in a hurry, you can put your offer in as "Bill Smith and/or nominees".Trusts can be set up within about a week usually.If your property doesn't make you money, (ie cas…[Read more]

Just a word to all the cynics out there… I spent 3 months searching when I started looking, for CF+ properties.Quite frustrated at times.Decided I was looking for the wrong thing…. "a solution" and started changing my criteria.The question is, what could make a property CF+? Or, what could I do to make a property CF+?If you are looking for CF…[Read more]

Hi Chalkey.There is so much detail in  your question above….Congratulations on the success of your business.And it sounds like you intend to build a very nice home/office combo.A few thoughts from me, for what they're worth.1. Is the land zoned for combo business/residence? Council may not allow you to build this.I would ask this question f…[Read more]

If you plan to sell the house after 2 years, ask local agents and look around yourselves…Does a pool add to resell price in your area?(In most areas, I would think not. But if you are selling someone's "dream home" MAYBE a pool will add value. If it is expected in that market.)If you plan to rent, I wouldn't think of it!Sometimes we all make p…[Read more]

Try discussing it with your accountant before deciding whether to move in.May cost a couple of hundred bucks.May save up to tens of thousands.After your accountant"s advice, you'll be in a better position to decide which way to go.quickchick