[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 7, 2004 - 11:59 am

Hi,

Not sure how to fix this.

I use the mouse and then right click copy and then right click in Word and select paste.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 7, 2004 - 9:43 am

Hi,

I’ve moved your post to the property forum as it is more appropriate there.

Another ad? How about a comment from a happy customer? *sigh* It’s not too hard to spot the cynics.

Anyway, DRB – thanks for your post and I’m delighted you enjoyed the book and other resources.

What I suggest you do is look for properties that have problems which you ave the power to fix. At first glance they may not meet the 11 sec solution, but with further investigation you may find the diamond in the rough. The deals with problems aren’t usually advertised, but they’re out there… they must be because the NSW guys from the MAP program keep telling me that they’re out there.

Wishing you the best of success.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 7, 2004 - 9:38 am

Hi Melbear is right…

Unless the rate is fixed, any increase or decrease is passed on to the client so that my margin is always +2%.

I’m not sure I understand the second part, but the flow of money from the eg on page 315 would be:

1. We pay initial deposit (which was 10% in those days) at time of signing: $4,950

2. We pay difference bewteen what the bank will lend us (80%) + closing costs – initial deposit: $4,950 + $7,102 = $12,052.

In summary, we need a total of $4,950 + $12,052 = $17,002 to complete our purchase.

Then once we are the owners we receive Mrs G.’s $6,500, meaning our cash invested in the deal once it is sold on terms is ($17,002 – $6,500)=$10,502

Hope this is clearer.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 9:12 am

Hi,

(post moved)

Because you don’t know what you don’t know… and what you don’t know more than likely will cost you money!

If you can’t do it, then you need to pay someone to do the due diligence on your behalf.

I wouldn’t recommend buying sight-unseen until you have a system developed and a reputation of success based on previous actual experience.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 9:06 am

Ah Rebecca,

While not try and articulate a productive answer rather hint at something fishy going on…???…

Still, to give you some idea of the progress, at last count the group had bought $6m+ of real estate in four months. That figure is rising all the time…

From memory, the 12 months started at the beginning of August 2003.

As I have said to the odd critic, before making a judgement call let’s wait for the results to come in.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 8:58 am

Hi,

Thanks for the feedback. I’m thrilled and delighted I’ve been a guide on your financial journey.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 8:51 am

Hi Peterhen,

(post moved to the property forum)

You make a good and valid point. Yet, for the professional investor, if s/he had to be forced into saving then there would be little chance of long-term success.

I have met plently of people who have had major money problems… and almost all have had a spending problem rather than an earning problem. This is why the first major chapter of the book is devoted to money habits/management.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 8:39 am

Hi,

(post moved to PropertyPlus)

Welcome to the community and thanks for posting.

Despite what many people think, I’m not against the idea of negative gearing… I just think that it’s a strategy that only works when the market is rising.

Karen, in your case the lesson to learn here is that you went into the property without your investing eyes wide open, and seemingly without and structured plan.

As such, your investment is largely out of your control as you need to rely on the market to continue to rise, which can be very frustrating.

Using your figures, $240 * 18 months = $4320, yet your property is only worth +10,000 more than what you paid (nett) – and your sales price is before selling costs.

Only you can decide whether to sell or not, but your decision needs to be planned rather than a knee-jerk response.

What I’d do is set a benchmark return I want to get, and if, after a few months, this cannot be achieved and does not look likely, then it might be time to cut your losses and start again.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 8:31 am

Hi,

Moved your post to the property forum…

No it’s still called land tax. Council rates cover garbage collection, local roads, parks etc.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 4, 2004 - 8:29 am

Rebecca,

You can debate the morals, but what you don’t seem to see is that the majority of the forum here don’t agree with your take on things, and when they do try to engage you in making their point known, you start hurling abuse which needs to be moderated.

So, as I see it, you have added little to the discussion of late other than name calling and criticism that is anthing but constructive.

Please, if you can’t find something to advance the discussion then refrain from posting.

The art to winning people over to your cause is not to hit them with a sledgehammer.

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 11:39 am

Hi,

Inventive title… but I’ve moved your post to this forum as it is better situated here.

Back to Yr 12 Legal Studies… I thought the constitution failed to grant power to make laws pertaining to property to the federal government.

<<steve does some research>>

ooooh, look what I found, http://www.aph.gov.au/senate/general/constitution/par5cha1.htm – it’s the section of the constitution spelling out what rights the Federal Parliament has. See Mr Rhodes (my Yr 12 legal teacher), I did learn something!

As such, the SA government can pretty much do as it pleases in respect to its property laws.

In summing up, it’s the Constitution,
it’s Mabo, it’s justice, it’s law, it’s the vibe and — No, that’s it. … []

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 11:30 am

Hi Hissho,

quote:

---

just a further question: wouldn’t a vendor get upset if you went back to him and said “sorry mate, i just couldn’t get the finance.”?

---

Nope – happens all the time.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 11:14 am

Hi Karen,

The MAP is a private mentoring group that I’m running. It is not open to new people and I’m not replacing those that opt out. I doubt that I’ll run it again as it was a pilot program.

I’ll write more about this in the upcoming months.

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 11:00 am

Hi,

quote:

---

My problem is that I am looking for a lender that will provide a lvr of 80% and not the usual 70% for a commercial loan.

Any ideas as to where I might locate lenders or brokers that are specialists or flexible in this area regarding an 80%LVR for a commercial loan.

---

Hmmm – hard, but not entirely impossible. FYI all my commercial loans have been at 70%LVR, but I know people who have secured 80%.

I suggest trying one/several mortgage brokers and seeing what they can find.

Just a ‘heads-up’ it’s likely that the term will be a max of 10 years, so you’ll probably need to go interest only to achieve a +ve cashflow outcome. This being the case, be sure to allocate some of your cashflow profit to debt reduction, just keep it accumulated in an offset or other account.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 10:53 am

Hi,

What brand and model did you buy?

Perhaps come to terms with the PMT function on Microsoft Excel as a step to becoming familiar with the ‘time value of money’ variables.

A good site I found quickly was: http://www.rosilyn.com/page4.html

It’s bound to be tricky… but you should be able to give it a go via trial and error.

A good idea is to have all the variables and the solution and see if you can replicate the result.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 10:38 am

Hi mate,

Glad your enjoying the book. []

The reason why I put getting finance after signing a contract is, in my experience, the practice of almost all lenders.

They require a physical property, or more accurately a signed contract to purchase, before they can issue (final) approval for finance.

Pre-approvals are always subject to conditions, which basically says that final approval will depend on the specifics of the property being purchased (e.g. independent valuation, validation of income etc.)

Furthermore, I’ve heard of people obtaining pre-approval but later having the application rejected, so IMHO it’s better to have a signed contract with a subject to finance clause in your hand when you go shopping for a loan.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 2, 2004 - 10:33 am

Hi,

Just moved this to a more appropriate forum.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 1, 2004 - 9:24 am

Hi Julian,

Nice to hear from you all the way from NZ!

Very perceptive insights… my relationships with Dave and Julie are cornerstones to my success. Rencently I wrote somewhere that your spouse needs to be your #1 fan, not your #1 critic.

Yeah, more business relationships fail than succeed, I believe having common goals and being accountable is very, very important.

Re: too much emphasis on the evils of neg gearing… perhaps, but to explain how a concept works you need to attack its weak points. Too many people don’t understand, which is why I went into in in a lot of detail. Besides, it is a major point of differentiation between me and other property educators.

Re: vacancies, at the time of prelim analysis I allow for 4 weeks unless there are mitigating factors, in which case that base figure goes up or down.

Re: my emphasis… I’ll buy anything that makes money from day one []

Great to hear from you and hope to read more of your posts in the near future.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 1, 2004 - 9:19 am

Hi Andrew,

Thanks for your comments about the book and welcome to the community.

Some general figures I allow for are:

5% of purchase price for closing costs
4 weeks vacancy p/annum
8% mngt fees (unless otherwise known)
3 to 4 weeks rent for maintenance

Other costs vary too much to have general guidelines. You don’t want to make your financial analysis too general.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently

[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

January 1, 2004 - 9:16 am

Hi Jimmy,

P&I loans are calculated based on the annuity formula where PAYMENT is a variable of PRESENT VALUE (principal or loan balance), INTEREST (per compunding period) and TIME.

Excel does this with the PMT function.

Hope this helps.

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com

Success comes from doing things differently