Yes SIS,

The money is made, not in finding the problem, but in crafting the win-win solution.

Most astute pick up.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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…cough, splutter, curse as Steve spills his cocktail all over the pool sunlounge.

Shhhh… people think I actually own property. Nah, that’s just a sidetrack… the smart money is in bluegums [] and those scratchy lotto things.

[]

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

(I’ve moved your post to its proper spot.)

Not can you or can’t you, but how can you?

Your problem won’t be buying property, but rather securing finance. No bank I know will lend to a minor.

So, some ideas…

1. Buy on a long settlement so that you tie up a deal today (subject to it meeting your requirements), but it does not settle ’till you’re 18. Of course, you’ll need to qualify for finance at that point.

2. Find deals and get a money partner. Go 50:50 on the profits/losses.

3. Buy in your parent’s name in trust for you until you turn 18. This might be a little more complicated, so see a lawyer.

4. Sell deals to earn cash so that when you turn 18 you can hit the financial road running.

…there’s lots more you can do, but finding solutions to your problems is your responsibility and will define (or not) your ultimate success.

I echo the sentiments that it is great you are thinking about these issues – but so was someone else I know who was ultra keen and progressing vey well at age 17, yet to date he’s not been able to translate his good intentions and steady school days endeavours into investing success.

Maybe you can… best to give it a try at the shallow end of the investing pool and see.

Good luck!

Steve McKnight

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Remember that success comes from doing things differently.
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Festive Greetings,

Mel is right about foreclosures. Unless you get to the vendor before the foreclosure, banks are:

1. Unable to release private details due to privacy laws; and
2. Must take the property to auction so that there is no implied funny business.

It is the same in NZ, however it is possible to broker a mass buy-out privately and do the occasional foreclosure pick up.

I think the same will occur here too as the market turns and auction clearance rates fall… you’ll be able to negotiate a great deal after auction if the property doesn’t sell.

In the States, people run classified ads asking people in financial trouble to call them because they buy houses fast and pay cash. Perhaps this market will develop here in Oz???

As for opportunities, who can tell? I just suspect there’ll be more problems calling for people with solutions.

Cheers,

Steve McKnight

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

Hi,

I’ve just changed the topic and moved this to a spot where more people may read it.

Bye,

Steve McKnight

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

Hi,

I’m all for blocks of units as it’s great to be in control of the body corporate. Surely the same logic applies that if it makes sense to own one – it makes sense to own the whole block.

There are problems too though… finance is a big one. Most lenders will tell you it’s a commercial deal and will proceed to either say ‘no’ or maybe limit your borrowing to 70%. This being the case, it can be capital intensive.

Also, with more dwellings, the maintenance is usually more of an issue too.

Finally, when it comes time to sell, you may find your market fewer in number as you really need to find another investor who’s willing to pay your price.

Still, I like the idea of owning blocks – provide the investing fundamentals are dealth with and the project makes the required return on my investment.

Good post and great question!

Cheers,

Steve McKnight

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

Thanks for your post and welcome to the community!

Glad you liked the book []

One possible suggestion is to call several accountants in your area. The old-fashioned types still have a bookkeeping service (of varying sorts and ability) that you might find helpful.

Good luck and certainly make a post if you find someone of good ability.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Let’s allow this post to find its place in the archives. No more replies please.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Call me old-fashioned, but this is a question you’d want to have answered before you bought, right?

What if you can’t develop and instead you’re left with the property and it’s -ve cashflow?

My advice:

1. Go to the council asap and work out what’s possible.

2. Compare that with what’s financially feasible.

3. Understand that professional investors don’t invest in a manner where there is so much uncertainty. Work out your plan, finance etc. as without a plan your success is more a matter of chance than choice.

It may not be too late to salvage the situation… but get active quick or risk doing your dough.

Good luck.!

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

The key is to find reasons why/how it will rather than be resolved that it won’t.

The idea is that, provided (1) you had access to unlimited finance, (2) you could meet the cost of additional borrowing from profits, and (3) the properties were +ve cashflow, you could continue to buy because you’d always be making profits.

The problem is that more debt means higher risk.

Hope this has helped to clarify the issue.

Cheers,

Steve McKnight

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