Hi JaJa,

I’m not sure if your were at yesterday’s seminar or not…

In any event, I’ve ready through approx a third of the feedback forms and there were a few comments where people mentioned that the content was straightforward.

On the other hand though, others mentioned that the ‘nuts and bolts’ detail that was presented about the system Dave and I used to buy real estate was the missing link of information that had not previously been explained in my books or seminars.

For my experience, the steps that appear simple or basic are often those investors ignore or forget which can undermine their profits.

I believe that the key to controlling and managing (from the investment rather than the property perspective) a multiple property portfolio involves a system that:

1. Removes emotion from the investing decision as emotion can cause investors to act irrationally.

2. Allows time-leverage. In short, time is an investors most important asset so in order to maximise it, investors need to delegate. The only way this can be done is via a system where the result is guided by internal controls derived from a knowledge of the process.

3. Uses templates to ensure accuracy, completeness and time management.

4. Allows an investor to focus on the small number of potential leads that do fall within a pre-defined search criteria, rather than the large number of leads that might be appropriate.

etc etc

So, all in all, the idea for the seminar was to share the nitty gritty detail of the system we use behind the way we find, qualify and buy property. In fact the beauty of that system is in its ease of application as, as someone wise once said, anything doable needs to be easily understandable.

While there are certainly risks to be mitigated, at a conceptual level there isn’t anything too difficult about the way we invest; we buy cheap houses that make money.

The system that supports this process therefore needs to:

1. Find appropriate potential houses
2. Qualify those potential houses so that we focus on quality houses that are most likely to deliver the investing outcome we desire
3. Control the buying process given that we often have multiple offers (20+) in progress

I hope this has helped provide more information about the seminar, it’s objectives and some of the content that was discussed.

Have a great day,

Steve McKnight

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Remember that success comes from doing things differently.
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Sounds like wise words to me, if only to complete the exercise as a worst-case scenario.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Tom1000000,

Actually, I feel that I have built enough wealth and certainly don’t want to hoard it.

My main goal in investing now is to continue to raise money to contribute into philanthropic activities which we have begun.

This all started when my books sold well, and now has become quite a focus.

Also, there is a certain amount of enjoyment that we get from investing. As such, we do it not because we have to, but because it is something we enjoy.

For example, does someone who loves their job quit when they attain financial independence? Or does simply the nature of the relationship become different as now they do it because they can rather than because they have to?

I also like sharing information about what works in property investing, and I feel that to do this with any credibility, I should remain an active investor.

As for how much is enough… I have rather large philanthropic dreams.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I think this topic has reached its logical conclusion. Issues with Neil Jenman should be taken up with him in person rather than posted here.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Let’s be sure to differentiate fact from opinion here.

FACT: The website is down.

OPINION: Why it happened

The victims here were those who went ahead with purchases on the basis that they could get the loan. To the extent that representations were made, I’m sure legal advice will be sought.

BTW, moderators of this are, of course, fully entitled to express their independent thoughts.

I thought this was a good post (no interest in no interest… lol). Let’s just keep the discussion away from personalities and focus on issues.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Darren and Kerri,

Thanks for your post.

Questions to ask property managers

I think there are two aspects that you want to find out about:

A. Experience: I have found the best property manager I have ever used wasn’t straight out of school, but was a ‘crusty’ lady who, after many years experience, had heard and seen every tenant trick in the book. Despite her awkward manner though, she had a very fair heart and was proactive in supporting good tenants through proper management of the property and the landlord. Experience is worth its weight in gold.

To find out what experience a rental manager brings to the table you just need to ask. Actually, it would be wise to interview them like you would a potential employee. You may also like to think up some case scenarios as a test to see what they would do.

For example, you might ask: “A tenant has fallen behind in their rent to the tune of three weeks. They promise that they will come in and pay in full at the end of the current week. What would you do in this situation?”

A good reply would cover two aspects:

1. The tenant shouldn’t be 3 weeks behind in the first place.

2. There needs to be some kind of payment plan (in writing) to catch up the arrears rather than hoping for a full payment.

3. At what point do eviction proceedings begin?

B. Cost

You also want to know how much the services are going to cost, and not just the ‘obvious’ expense of general management fee (usually a % of rent). Other fees to watch out for include letting fees, tribunal fees, inspection fees, statement fees etc. etc.

Special Conditions

Really, the sky is the limit here provided you do not contravene tenancy laws. Common special conditions include:

> Pets
> Noise
> When rent is to be paid (usually 7 days in advance)
> Need to have carpets cleaned
> Persons (not on the lease) that are able to reside in the property
> Costs to be paid for early termination of the lease (such as advertising etc.)
> Agreed rental increases

If anyone usues other special conditions or has other comments then please reply to this post as it is an excellent discussion starter.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Yes, I have heard this doen before and it has been very profitable for those concerned.

It is not getting paid to do nothing though, as you receive for fee for managing (i.e. increasing the profitability) of the property.

Conceptually, it’s like a rental management agency paying for the right to receive the income over a set period of time. Now, this does not happen for a house on a single-holding basis, but if you have (say) 20 units each owned by an individual then someone will need to ‘manage’ them for the group.

As for value… something is only worth what someone else is willing to pay for it!

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Rob – in the right frame of mind, you really are a tremendous asset to this forum so thanks for your contribution.

JF, like any investment you ought not evaluate your decision against opinions so much as you should against your own pre-determined minimum ROI.

That is, Rob has warned you that the market may be uncertain, and on the other hand Brahms is more bullish. Both may be right, but in your case, how do you know what to do?

My suggestion for you would be:

1. Go back now and look at how much profit you may have made based on actually receiving 75% of similar prices (call this a conservative reality check)

2. Set a minimum required ROI for each property you own

3. Take the time to work out if your current plan is sustainable. E.g. how much debt do you have and how does this impact on your ability to borrow more? Also, are you in a heavily growth-bias strategy in a market that may have moved into a different phase.

4. Can you earn better returns elsewhere, in which case should you hold, buy more or sell?

Finding answers to these questions will help you think through what to do next.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi LKGK-88,

Finding properties that meet the 11 Second solution in their own right was never easy in the first place, but is even more difficult today given the property boom.

Instead of trying to buy the deal though, thesedays I try to make it by adding value and by thinking differently. This was certainly the approach I encouraged in the MAP, and you can read for yourself the approach that the mentorees took in my second book.

See this page if you would like more info on the 11 Second Solution: https://www.propertyinvesting.com/11secondsolution.html

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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