So if you use their 10% deposit to pay off your loan you will be left with
$238,000 debt
At 7.7% that is $18,326/yr in interest

If they assume a $306,000 loan at 8.7% that is $26,622/year

If you did interest only on both loans you could earn around $8,000/year

Looking at 30 yr loan

Your repayments – $441/week

Their repayments – $552/week

You…[Read more]

I haven’t exhauseted all my sources yet.

It is just frustrating because I am a smart investor who can find great deals, and I can get vendor finance so I don’t have to put up the 20% deposit, and the rent pays for everything. But it is so hard to find lending.

I am working on some business ideas to get my income up and that might help with the…[Read more]

I missed the show. Was it any good?

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cashflow Properties Are Just A Click Away

That sucks. I never realised people have this problem. But now that you mention it, it is so true.

Even an old house demands a lot of money because you want to make improvements and make it look nice.

If you HAVE to buy a fridge buy one off Ebay and spend a couple of hundred instead of a couple of thousand. There are ways to have your cake and…[Read more]

I would love to know more. Can you please explain more in this post.

We want to know things like

– What materials do you offer?
– How much cheaper are you than bunnings?
– Do you deliver Australia wide?

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cashflow Properties Are Just A Click Away

Thanks for the idea. I never thought of using Ebay as a way to source renovation materials.
I imagine this could be used for tiles, paint, florrboards lots of other things also.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cashflow Properties Are Just A Click Away

Hey,

Me and my wife earn a combined income of $40,000/year. We have set up a trust and a company and are currently in final negotiations of buying our first property.

I can’t give you legal financial advise, but here is my personal opinion.

You have to look at your investment strategy and whether trusts fit into that. Basically you buy…[Read more]

@ Stocko – You are definately in a great position to invest. Investing in negatively geared property will limit you, because at $60k/yr you can only afford so much negative gearing before you can’t afford any more.

Plus isn’t the point of owning property to increase your wealth so you can enjoy a better life? Have you thought about investing in…[Read more]

You just have to be careful with gearing your properties to the hilt. The main risk you then face is rising interest rates. It is hard to be positively cashflowed at 95% (possible but hard). How many interest rate rises can you handle before going negative? This would be something to look at.

Also, banks are still pretty tight with their lending.…[Read more]

I agree with thecrest, it all depends on your level of expertise. The fact that you own two properties shows that you are not a complete newbie when it comes to property investing.

If you goal is to generate a passive income from your property (which I suspect it is otherwise you would be on a different site) then why not draw on your equity to…[Read more]

Yeh I completely agree with Terry. It would be easy to draw out a 20% deposit if you currently have 90% equity and then get a new loan for the new property with a new bank. So if you default they won’t sell your house.

Are you looking to buy positive cashflow property or growth property?

Ryan McLean
http://CashFlowInvestor.com.au
Positive…[Read more]

We currently rent. Mainly because we don’t want to use up our borrowing capacity buying a property that will only cost us money every month.

Once our investments can fund it we will buy our own house. Although renting is cheaper than buying now, if you buy then in 10 years time (even after paying off nothing) owning will be way cheaper than…[Read more]

I plan to buy 3 positive CF properties this year with $0 in equity and earning a combined wage of $40,000/yr (me and my wife)

If you want to buy 5 more properties by Dec 2010 then you should check out http://CashFlowInvestor.com.au they are a property finding service and are way cheaper than property brokers.

What do you mean great post? This is a bit spammy I think.

What comments do you have about the gentleman? Are you asking for people’s opinions on the site or service?

Why is this such a great secret for the rest of us?

Sorry to be rude just trying to understand the point of this post

Ryan McLean
http://CashFlowInvestor.com.au

Wow this is a huge thread, it is almost not even worth posting.

I am about to buy a property with $0 down (a vendor finance deal), and subdivide it and sell the land. Then live off the proceeds from the land a keep the property. Technically this is not living off equity, but it is a good way to draw out cash to live off while still building your…[Read more]

Think about it this way.

If I have $20,000 I can buy one property for $100,000

If that property goes up to $200,000 then I can sell it.

I then have $120,000 and can buy 6 properties worth $100,000. This increase my rental growth and my capital growth because I am now receiving it on 6 properties not just one.

Your figures don’t make sense to me.

How much are you selling the house for? How much financing are you carrying back? What percentage are you charging? How quickly does the loan need to be paid off?

If I can get these figures then I can help you

Ryan McLean
CashFlowInvestor.com

If it said it on the contract that you signed then I don’t think you have much of a claim. $300/year for body corporate sounds ridiculously cheap…one of those too good to be true scenarios.

I think it is more a case of buyer beware than anything else. This is a good reason to avoid auctions as you can assess the contract before you have to sign…[Read more]

If i could subdivide then I would subdivide and sell off the land and use that money to reinvest in something else that is positive cashflow and would offset your losses on the current property. Or subdivide and sell both and then reinvest

I am proving you wrong. Me and my wife earn a combined income of $40k and are buying 2 properties this month with no money down. Better yet they are positive cashflow.

We use vendor financing to fund our properties and while this limits the properties we can invest in, it also maximizes our investing as we never have to save a deposit. If you…[Read more]