Hi guys,
My journal started out appallingly , I havent had to write anything inolving my thoughts since highschool. It started off as afew lines of jilted thoughts, but now it has also turned into a novel.
I try to read it every day, and its amazing how much I can reflect on what I’ve written and then take appropriate action. I’ve already changed so many of the things I’m doing becuase of it.
I’ve also started a property scrap book on Stuart’s advice and I’m also finding that a great help in tracking my thoughts on properties I look at and news that affects my investing.

Best wishes
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Good on you youngie. I wish I’d had the knowledge to do the same at your age!
I did however invest in my parents house at 22 but it took me 6 years to find an investment strategy that I felt I could make work. Now I’m going hammer and tongs and not looking back.
I’m constantly amazed by how much I’m learning every day, I can tell you that after your first IP it will only get easier for you.

Best of luck,
Scott S

P.S. Let us know how you go.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Fullout
Ive had the same thing happen to me, so I may be able to help you not sure as yet but will enquire for you.
Dont go getting rejected just yet.[]
Email me at[email protected]and I’ll see what I can arrange.

Regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Hi Kristoffer,
this is an idea that I’ve been tossing over for some time.
While I’m not in a position to buy many properties at present, I am spending heaps of time out researching different areas, to gain a feel for those areas, and an appreciation of whats good or poor value in that market.
This will mean that come time to buy I’m fully prepared. However in the short term this is a costly process.
It would be of immense help to me if I could pass on some of the properties that I view(I look at 20+ most weekends)for a small commission or a spotters fee of some sort.
My main hesitation has been the legality of doing this as I’m not sure if it’s legal without a real estate license.
So if you or anyone else for that matter is interested, feel free to email at [email protected] to disscuss it further. I’m sure we can work something out.

Regards,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Michael,
sorry, but after hearing Stuart O’Neill’s talk at the APIM seminar I have to dissagree(previously I would have agreed 100%).
No one likes a legal battle and therefore if a property has appreciated (chances are a vacant block will) they are unlikely to take any actoin other than to sell it off at a higher price.
The chances of not selling are remote, and worst case high interest over a short period is n’t going to sting that much.
I cant offer much advice on delayed settlement, as I’m pretty green myself but I have found jumping in with both feet and having everything go wrong is a great way to learn VERY fast.
I personally go ahead with the deal, but don’t mistake it for positive cash flow, because it’s not. profit and cashflow are two very different things! It does sound like it should be very profitable.
Remember land is the appreciating asset houses are the part that depreciate. The ot
hers are right it’s a big step as your first deal but what a step if it pays off!

Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Hi Soosh,
It was great to finally meet you on the weekend.
Ive been a bit of a scardy cat all my life, not in the sense of physical things like heights or speed, but of a less tangible thing, I think its failure, but it includes rejection and other issues that I guess are all forms of failure.
In the past six or so month Ive been looking at what Ive done to acheive my long term goals in life. The answer was very little because 9 times out of 10 I wouldn’t give it a go cause I was scared of failing . As a result I’ve slaved away 10 years of my life and not acheived many of the things I know I could have acheived.
So as a result of much thought Ive decided my greatest fear is fear itself, as it is what is stopping me from acheiving my goals.
Its probably very simmilar to AD’s fear and many other peoples as well, but theres no way I’m going to be mediocre (to pinch AD’s word) because I feared the concequences of the road to glory.
As a result of this resolution not to be afraid you’ll be seeing a lot more of me on these forum boards, as previously I’ve been scared to comment, unless i got really brave or mad![]

Best wishes to all’
Scott S[8D]

P.S. Soosh I’ll be in touch about the FHOG when I get the info for you.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

creative,
my understanding of the stiuation is that you can claim interest payments on any IP. Therefore when your current residence becomes an IP, you can claim any interest payable on the amount owing on that property. It might also be an idea to sell the property to a company or trust that you comtroll, thus allowing you to claim interest on up to 100% of the value of the hous ewhile using the money to finance your new home.
Yes you would have to pay stamp duty and capital gains tax, but it’s a matter of weighing up the pros and cons. Like reduced interest payment on your new home and tax savings. This is probably only a good idea if you have very good equity in your current home.
This is only an idea that I’m thinking of using myself, so get some advice first but if the situation is right it might work for you.

Regards ,
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

willi,
I used that exact stratergy on a property that I have recently purchased.
I paid the vendors asking price, which was more than I felt the property was worth in it’s present condition, knowing that once renovated it would rent easily and give exelent returns. So I made a long settlement , low deposit and access prior to settlement, conditions of the contract.
This means that from day one the property will be in a rentable condition, and because of the low deposit I have the cash to renovate it before my finance comes through(a win for me). Furthermore the vendor gets his asking price and doesn’t have to worry about making the property saleable(a win for him). Thus I’ve created a win/win outcome and have myself a high returning freshly renovated I/P that should be low maintainance for quite some time.
I’m still learing, but this technique seems to have worked very well(only time will tell,as we dont settle for another 4 weeks), so a big thanks to Steve and every one here for showing me the way so far!
Warmest regards,
Scott.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Quentin
Please dont mistake the reasons for my questions.
their purpose was for me (and others) to understand where your at in your investing career. your obviously doing well from your investments, so your methods have worked for you.
I did not in any way intend to offend or belittle you, only to establish your credibility, which I have done (maybe not in the most diplomatic way[]).
As for myself i first want to replace my income then generate wealth. I feel (my opinion only) that positively geared properties are the way to do this, mind you they (as others have stated ) must be well selected not just cheap dumps in hick towns.
I have not ever wasted my time looking in small towns only regional centres with good infrastructures. Yet I consistantly find properties that are within the criteria of the 11 sec rule.
My income will not allow me to purchase many negative cashflow properties and i dont want to wait to cash in on the capital gains, yet a couple of banks have said that as long as the properties return higher than about 7.5% they would fund infinite properties as long as there was diversity in them (ie not all in one area).
If anyone can tell me of a better way im happy to listen, then check out the theory as i did with Steve’s ideas. Untill then i’ll continue to do what im doing.
regards
Scott S

PS: thanks for the advice on IO loans i wll check it out with my accountant. My goal is to own the properties so i will have to make payments off the principal as well. If what you say is right that would be a better way.

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon

Hi Dave
Ive just put in my first two offers ever!
I taked to the agents about the vendor and their needs, eg how motivated they were. then from the info gathered submitted offers in writting.
one was close to asking price with a low deposit and long terms, because the owner is in no hurry to sell. the other was a fair way below asking price with standard terms, because it needs a fair bit of work.
the first offer has been tentitively accepted(i will know on monday). the other is likely to be rejeceted according to the agent but well see on monday, i have a little bit of room in that one but my gut feeling is that the vendor wants out so will move on price.
hope that this gives you some insight , its a better way than insulting people by lowballing their properties.
best of luck
Scott S

“Aim for the stars and you’ll shoot the top of the telegraph pole. Aim for the top of the telegraph pole and you’ll shoot yourself in the foot!”
-anon