Forum Replies Created
Hi labinnsw,
Welcome to the forum!
1. After I do the 11 second solution on the property, how much information should I try to get from the agent before paying them a visit to carry out further due diligence?A good idea would be to list out all the assumptions behind the deal and then seek information about whether or not they are valid.
On a broad level, assumptions relate to:
A. The quality and security of the income stream (quality of tenant, vacancy, realistic rent etc.)
B. The quality and security of the property (budgeted costs <rates, repairs, insurance etc.> structural issues, illegal works, zoning etc.)
C. The quality and security of your finance (can you get finance, and if yes on what terms)
I note that you have ordered BuyerBeware… be sure then to use the Financial Analysis template to crunch the numbers.
2. When I am satisfied that a property would be a good investment what do I say to the agent?How about…
“I’d like to submit an offer on this property please. I offer $XXX,XXXX with a $YY,YYY deposit and the balance in XX days. Also, my offer is subject to the following conditions: <insert conditions>.”
Some agents will want the offer in writing or maybe even will give you a contact to sign. Just make sure that you leave yourself an out clause should you change your mind. If you are new to this then you can make a clause “subject to the my solicitor’s approval of the contract”
Again, use the info in BuyerBeware to craft an offer that is a win for all involved.
3. How do I go about getting paid for spotting?Well, I’d imagine that you’d need two things:
A. A deal which you can onsell; and
B. A list of investors who would like to buy the deal from you.If you can match up these requirements then you should be able to write some business.
4. Any spotters handbook/manual available?Good question. As far as I know such a resource does not yet exist. Perhaps look abroad to the US as their bird-dog market is more developed.
5. Anyone interested in NSW properties and have any particular types of properties they would like me to keep an eye out for?Nope – not from me. Just be careful with this line of thought as advertising is not permitted on the forum body, just in the signature at the bottom of posts.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi
Derek has provided some great information re: problem with getting finance depending on size.
I’d just add to watch out for the body corporate fees attached to the building. On that, it would pay to understand the body corporate structure and what your rights and responsibilities are.
For example, looking after the common property (landscaping etc) can add up over time and, in some cases, the costs can be very hefty.
Just make sure you complete a thorough due diligence so you know what you are getting yourself in for.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
In our office we use WAMM from the guys at http://www.darlop.com
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Another one…
LIM = Land Information Memoranda
There is not really a term in Aus for the same. In some States some of the info on a LIM must be disclosed in a contract (e.g. building permits in a Sec 32 for property sold in Vic.)
See here for more information / discussion on LIMS.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
When Dave and I went over for the first time we stayed just under a week.
We hired a car and drove a long, long way. Just on that, travel times in NZ are a lot longer than in Aus for two reasons:
1. Generally, the roads are not as good or well maintained; and
2. There are far more hills and corners which cuts down your top speed.
Really though, your length of time on the ground will depend on what you want to achieve. I would definitely have a plan (however sketchy) and try to do some research on the Internet about various towns and areas before going over.
Remember that regional NZ is not as populated as here, and that there are many smaller communities (7,000 to 13,000) with further satellite and feeder towns.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I could write an answer several pages long. Now that there is a dedicated forum, I suggest you post more specific questions that can receive a more accurate and detailed answer.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
It is not illegal, but from discussions I have had with NZ solicitors it is viewed very dispassionately, even more so than in Australia.
It sounds like there have been all sorts of unusual terms included in contracts that limit a purchaser’s equity and waters down their rights to next to nothing.
Despite what the scaremongers might have you believe, vendor finance in Australia is well regulated within the confines of the UCCC and stated based Fair Trading Laws (as well as State based property law too).
I’m not sure the same level of protection is available across the Tasman.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I think it is a political decision more than anything else. As I understand it the left has been talking about introducing it for some years now but as yet it has come to nothing.
What do you think would happen if it was to introduce CGT though?
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
In terms of legitimate charities, a good friend of mine works in the aid industry and made me aware of the following link:
http://www.acfid.asn.au/campaigns/asiaearthquake.htm#appeals
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I have removed the ability to post images (the
tag) as a result of some questionable applications of the feature.
The tag still works for linking etc.
I may re-open the images once the forum policy has been updated.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Personally, I’ll be supporting Unicef and their endeavour to help those children disadvantaged by this terrible disaster.
There are many worthy causes, hwoever, Unicef only take 7% of the donation for admin. This is a more than reasonable amount.
Not wanting to sound heartless, but I’m a little cautious of the Australian Red Cross after the Bali problem with funds going, well, astray from the intended donantion purpose. Hopefully they have learned.
On a different note – it’s good to be an Australian when you see the effort contributed to help a mate.
Also, welcome back Richmond… hope you had a peaceful time away.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I had lunch today with some people who have been to a one or two of my seminars now and who I have said would informally mentor them (they’ve demonstrated their commitment…).
As lunch finished I said to them that I would hold them accountable to what they said they wanted to achieve.
I suggest that meeting up with other like-minded people is a good way to:
1. Announce your goals
2. Be held accountable to them
3. Be supported during the tough timesAs for frequency of meetings etc. – I’d say whatever was needed to get the result you desire.
As for a format – at the beginning of each MAP the Mappers had to announce to the group:
*This is what I have done…
*This is what I am doing…
*This is what I will do…Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I’m sure there are a lot of ideas, but, at the risk of being a nay-sayer, who’s going to fund the $100,000+ needed to set up and staff this enterprise?
Sadly, problems will persist because it will be the minority (as it is now) who, not being interested in membership, would continue to give the industry a bad name with some questionable investing.
There is a solution out there… somewhere… perhaps the government could pass a law that requires people who do more than XX vendor finance deals per annum to be members, and to be a member you must adhere to the code of conduct etc.
Having said that… the UCCC exists to protect the rights of the borrower, so VF deals that comply are already perhaps appropriately regulated.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Michael may be many things to many people, but from my experience he is as far away from the evil face of wrapping as was the article in the SMH was accurate.
As for the VFA, in its current form it does seem to have run its course. I have remained at a distance, indeed passed over the presidency, due to a possible perceived lack of independence given that I sell a wrap product.
I did not have a lot to do with Michael in his time as president, but, based on previous encounters over the past five years, I suspect he discharged his obligations with distinction.
From where I stand, the slander on his name, given it was based on falsehoods, was most improper. Nothing short of a public apology is deserved, however, suspecting who is behind these dubious dealings, I won’t be holding my breath.
I live in hope that the unrighteous will, at the appointed time, be properly judged.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Julia,
The words are based on a template, and as such, should you feel so strongly as to want to remove them for fear of then being incorrectly perceived as an endorsement, then that would be the best course of action.
I will also make it a point in the near furture to change the terms and conditions of the site to indicate that the ‘green dashed underlining’ of words is not an endorsement but merely a form of indirect advertising. I will also add the word ‘advertisment’ to the top line of mouse over box so there is no misunderstanding.
I hope this is satisfactory.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Point taken… the idea is to balance advertising to recoup the cost of running the site with a non-invasive way of linking to products.
I’ll play around with the options in the new year and see if I can strike a more happy medium.
As for being unethical… the posts are not being edited, just certain words highlighted.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Judanne,
The newsletter talks about no and low down deals.
You can change the numbers so that there is no deposit needed if that is what is negotiated with the vendor.
Having said that, Part Two (next month) outlines more about using external (ex-deal) OPM to bridge the gap.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
As promised, here is how the wrap figures are ‘crunched’:
Based on:
Purchase Price: $100,000
Deposit: $10,000
Vendor Finance: $90,000
Interest Rate: 9% per annum, or 0.001730769 per week
Term: 1300 weeks (25 years)
Payment at end of period
(solve for) PMT = $193.51Loan Schedule:
These numbers are from a simple spreadsheet that solves for PMT (finance function) and then plugs that figure back into a loan amortisation schedule.
#, Payment, Principal, Interest, Balance
0 0 0 0 $90,000.00
1 -$193.51 $155.77 -$37.74 $89,962.26
2 -$193.51 $155.70 -$37.81 $89,924.45
3 -$193.51 $155.64 -$37.87 $89,886.57
4 -$193.51 $155.57 -$37.94 $89,848.63
5 -$193.51 $155.51 -$38.01 $89,810.63
6 -$193.51 $155.44 -$38.07 $89,772.56
7 -$193.51 $155.38 -$38.14 $89,734.42
8 -$193.51 $155.31 -$38.20 $89,696.22
9 -$193.51 $155.24 -$38.27 $89,657.95
10 -$193.51 $155.18 -$38.34 $89,619.61
11 -$193.51 $155.11 -$38.40 $89,581.21
12 -$193.51 $155.04 -$38.47 $89,542.74
13 -$193.51 $154.98 -$38.53 $89,504.21
14 -$193.51 $154.91 -$38.60 $89,465.61
15 -$193.51 $154.84 -$38.67 $89,426.94
16 -$193.51 $154.78 -$38.74 $89,388.20
17 -$193.51 $154.71 -$38.80 $89,349.40
18 -$193.51 $154.64 -$38.87 $89,310.53
19 -$193.51 $154.58 -$38.94 $89,271.59
20 -$193.51 $154.51 -$39.00 $89,232.59
21 -$193.51 $154.44 -$39.07 $89,193.52
22 -$193.51 $154.37 -$39.14 $89,154.38
23 -$193.51 $154.31 -$39.21 $89,115.17
24 -$193.51 $154.24 -$39.27 $89,075.90
25 -$193.51 $154.17 -$39.34 $89,036.55
26 -$193.51 $154.10 -$39.41 $88,997.14
27 -$193.51 $154.03 -$39.48 $88,957.66
28 -$193.51 $153.97 -$39.55 $88,918.11
29 -$193.51 $153.90 -$39.62 $88,878.50
30 -$193.51 $153.83 -$39.68 $88,838.81
31 -$193.51 $153.76 -$39.75 $88,799.06
32 -$193.51 $153.69 -$39.82 $88,759.24
33 -$193.51 $153.62 -$39.89 $88,719.35
34 -$193.51 $153.55 -$39.96 $88,679.39
35 -$193.51 $153.48 -$40.03 $88,639.36
36 -$193.51 $153.41 -$40.10 $88,599.26
37 -$193.51 $153.34 -$40.17 $88,559.09
38 -$193.51 $153.28 -$40.24 $88,518.86
39 -$193.51 $153.21 -$40.31 $88,478.55
40 -$193.51 $153.14 -$40.38 $88,438.17
41 -$193.51 $153.07 -$40.45 $88,397.72
42 -$193.51 $153.00 -$40.52 $88,357.21
43 -$193.51 $152.93 -$40.59 $88,316.62
44 -$193.51 $152.86 -$40.66 $88,275.96
45 -$193.51 $152.79 -$40.73 $88,235.24
46 -$193.51 $152.71 -$40.80 $88,194.44
47 -$193.51 $152.64 -$40.87 $88,153.57
48 -$193.51 $152.57 -$40.94 $88,112.63
49 -$193.51 $152.50 -$41.01 $88,071.62
50 -$193.51 $152.43 -$41.08 $88,030.54
51 -$193.51 $152.36 -$41.15 $87,989.39
52 -$193.51 $152.29 -$41.22 $87,948.16
53 -$193.51 $152.22 -$41.29 $87,906.87
54 -$193.51 $152.15 -$41.37 $87,865.50
55 -$193.51 $152.07 -$41.44 $87,824.07
56 -$193.51 $152.00 -$41.51 $87,782.56
57 -$193.51 $151.93 -$41.58 $87,740.98
58 -$193.51 $151.86 -$41.65 $87,699.32
59 -$193.51 $151.79 -$41.73 $87,657.60
60 -$193.51 $151.72 -$41.80 $87,615.80
61 -$193.51 $151.64 -$41.87 $87,573.93
62 -$193.51 $151.57 -$41.94 $87,531.99
63 -$193.51 $151.50 -$42.02 $87,489.97
64 -$193.51 $151.42 -$42.09 $87,447.88
65 -$193.51 $151.35 -$42.16 $87,405.72
66 -$193.51 $151.28 -$42.23 $87,363.49
67 -$193.51 $151.21 -$42.31 $87,321.18
68 -$193.51 $151.13 -$42.38 $87,278.80
69 -$193.51 $151.06 -$42.45 $87,236.35
70 -$193.51 $150.99 -$42.53 $87,193.82
71 -$193.51 $150.91 -$42.60 $87,151.22
72 -$193.51 $150.84 -$42.67 $87,108.55
73 -$193.51 $150.76 -$42.75 $87,065.80
74 -$193.51 $150.69 -$42.82 $87,022.98
75 -$193.51 $150.62 -$42.90 $86,980.08
76 -$193.51 $150.54 -$42.97 $86,937.11
77 -$193.51 $150.47 -$43.04 $86,894.07
78 -$193.51 $150.39 -$43.12 $86,850.95
79 -$193.51 $150.32 -$43.19 $86,807.75
80 -$193.51 $150.24 -$43.27 $86,764.49
81 -$193.51 $150.17 -$43.34 $86,721.14
82 -$193.51 $150.09 -$43.42 $86,677.72
83 -$193.51 $150.02 -$43.49 $86,634.23
84 -$193.51 $149.94 -$43.57 $86,590.66
85 -$193.51 $149.87 -$43.64 $86,547.02
86 -$193.51 $149.79 -$43.72 $86,503.30
87 -$193.51 $149.72 -$43.80 $86,459.50
88 -$193.51 $149.64 -$43.87 $86,415.63
89 -$193.51 $149.57 -$43.95 $86,371.68
90 -$193.51 $149.49 -$44.02 $86,327.66
91 -$193.51 $149.41 -$44.10 $86,283.56
92 -$193.51 $149.34 -$44.18 $86,239.39
93 -$193.51 $149.26 -$44.25 $86,195.13
94 -$193.51 $149.18 -$44.33 $86,150.80
95 -$193.51 $149.11 -$44.41 $86,106.40
96 -$193.51 $149.03 -$44.48 $86,061.92
97 -$193.51 $148.95 -$44.56 $86,017.36
98 -$193.51 $148.88 -$44.64 $85,972.72
99 -$193.51 $148.80 -$44.71 $85,928.01
100 -$193.51 $148.72 -$44.79 $85,883.22
101 -$193.51 $148.64 -$44.87 $85,838.35
102 -$193.51 $148.57 -$44.95 $85,793.40
103 -$193.51 $148.49 -$45.02 $85,748.38
104 -$193.51 $148.41 -$45.10 $85,703.27
105 -$193.51 $148.33 -$45.18 $85,658.09
106 -$193.51 $148.25 -$45.26 $85,612.84
107 -$193.51 $148.18 -$45.34 $85,567.50
108 -$193.51 $148.10 -$45.42 $85,522.08
109 -$193.51 $148.02 -$45.49 $85,476.59
110 -$193.51 $147.94 -$45.57 $85,431.02
111 -$193.51 $147.86 -$45.65 $85,385.37
112 -$193.51 $147.78 -$45.73 $85,339.64
113 -$193.51 $147.70 -$45.81 $85,293.83
114 -$193.51 $147.62 -$45.89 $85,247.94
115 -$193.51 $147.54 -$45.97 $85,201.97
116 -$193.51 $147.46 -$46.05 $85,155.92
117 -$193.51 $147.39 -$46.13 $85,109.79
118 -$193.51 $147.31 -$46.21 $85,063.59
119 -$193.51 $147.23 -$46.29 $85,017.30
120 -$193.51 $147.15 -$46.37 $84,970.93
121 -$193.51 $147.07 -$46.45 $84,924.48
122 -$193.51 $146.98 -$46.53 $84,877.96
123 -$193.51 $146.90 -$46.61 $84,831.35
124 -$193.51 $146.82 -$46.69 $84,784.66
125 -$193.51 $146.74 -$46.77 $84,737.89
126 -$193.51 $146.66 -$46.85 $84,691.04
127 -$193.51 $146.58 -$46.93 $84,644.11
128 -$193.51 $146.50 -$47.01 $84,597.09
129 -$193.51 $146.42 -$47.09 $84,550.00
130 -$193.51 $146.34 -$47.18 $84,502.82
131 -$193.51 $146.25 -$47.26 $84,455.56
132 -$193.51 $146.17 -$47.34 $84,408.22
133 -$193.51 $146.09 -$47.42 $84,360.80
134 -$193.51 $146.01 -$47.50 $84,313.30
135 -$193.51 $145.93 -$47.59 $84,265.71
136 -$193.51 $145.84 -$47.67 $84,218.04
137 -$193.51 $145.76 -$47.75 $84,170.29
138 -$193.51 $145.68 -$47.83 $84,122.46
139 -$193.51 $145.60 -$47.92 $84,074.54
140 -$193.51 $145.51 -$48.00 $84,026.55
141 -$193.51 $145.43 -$48.08 $83,978.46
142 -$193.51 $145.35 -$48.17 $83,930.30
143 -$193.51 $145.26 -$48.25 $83,882.05
144 -$193.51 $145.18 -$48.33 $83,833.72
145 -$193.51 $145.10 -$48.42 $83,785.30
146 -$193.51 $145.01 -$48.50 $83,736.80
147 -$193.51 $144.93 -$48.58 $83,688.22
148 -$193.51 $144.84 -$48.67 $83,639.55
149 -$193.51 $144.76 -$48.75 $83,590.80
150 -$193.51 $144.68 -$48.84 $83,541.96
151 -$193.51 $144.59 -$48.92 $83,493.04
152 -$193.51 $144.51 -$49.01 $83,444.03
153 -$193.51 $144.42 -$49.09 $83,394.94
154 -$193.51 $144.34 -$49.18 $83,345.77
155 -$193.51 $144.25 -$49.26 $83,296.51
156 -$193.51 $144.17 -$49.35 $83,247.16Payout at the end of year three = $83,247.16
The Lease-Option figure is calculated from a third-party spreadsheet, I am not sure how the figures are calculated.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Thanks for your replies.
I agree that a chat room would be a good addition, and is certainly on the cards.
Also on the drawing board is a new design for the site, including additional content and other resources.
Of course, this will take some time – perhaps a few months – but be patient as it will happen.
Also, please keep the suggestions coming in.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Rob,
You raise some interesting points, some of which I had also considered… especially the part about refinancing the wrap loan.
Should the wrapper have provided those extra funds, I would suggest that they have left themselves open for abuse. However, being aware of the people behind the deal, I doubt this is the case.
The story as presented on the website is quite vague, short on facts and very opinionated. I would like to know how much of the $135k needed to refinance related to the wrap loan payout, and how much related to the other capitalised debts.
As for the author of the article (who is not sourced), I suggest that they urgently seek the help of Mr Jenman, since Mr Jenman has said that he aspires to conduct research that is thorough and accurate – scarce editorial commodities that are sadly lacking in the current offering.
Please advise if you receive a reply.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
