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

November 1, 2003 - 4:19 am

Hi,

I’m sorry, but I don’t have a copy of the book handy (I’m at home), so I cam only answer generally:

quote:

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1. On page 67 there’s a table with a list of expenses. There are headings “to” and “put”. What are these – accounting terms? What do they mean?

---

My guess is that this is a solicitor’s statement? I’ll look it up when I get to work and provide a more accurate summary.

quote:

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2. What benefit is there (if any) in paying only the interest component of a loan? As far as I can tell, that means you would pay the interest, then next month you’d owe the same amount all over again – surely this isn’t a good wealth-building strategy – so I must be missing the point!?

---

There are two benefits:

1. Your cash return is higher as you don’t make principal repayments.

2. For commercial loans, where the term is usally a max of ten years, trying to make P & I repayments would be a huge strain.

I’ve talked about P & I vs. I/O loans in a recent newsletter – check your past editions.

quote:

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3. On page 69, the result is 9.3% cash on cash return… Isn’t this less than the 11 second solution?

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I’ll need to look this up, but my initial guess is Showmethemoney is right – the CoCR you quote is net, whereas the 11 Sec Solution works on a gross figure.

quote:

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4. Why is the 11 second solution set at 10.4% – why not 8%, 9%, or even 11% etc.?

---

Hmmmm – why does 2 + 2 = 4? It just does. The answer always results in a 10.4% return because of the execution of the equation.

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]

October 24, 2003 - 5:37 am

Hi Mini,

You wouldn’t believe it. I stayed up past my bedtime to watch you on the tellie the other night (actually, I was doing some work on the laptop and listening to the tellie).

Jules muted it during an ad break and left the sound off for about 5 mins. I went and turned it back on 5 mins later, only to learn that that’s when you did your bit []

Shucks.

I’ll have to wait ’till next year.

Did you have a hand in writing the lyrics or music for that song?

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]

October 20, 2003 - 6:07 am

Hi,

Hey – I’m all for incentives as my wife is due to go at any moment…

But in reality, I’d be worried that this might start a welfare mentality that more kids = more money and that this may have the opposite impact to what is wanted.

I would have thought that sponsored child care would be a better idea for those what want to work but have kiddlywinks to care for. That way, those with jobs can keep them.

Not sure what the social implications of this are long-term though.

My 2 cents is that the government will do:

A. Tax into superannuation reserves to fund Medicare and public sector debt; and

B. Raise the GST so that those on pensions pay more tax, even if they are not sick.

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]

October 20, 2003 - 1:32 am

Hi,

A long post…

My advice to anyone in a similiar circumstance is to follow the logic in Ch. 17.

1. You need a plan.
2. You need to work out what you want to sacrifice for a new opportunity.
3. You need to take action.

Positive cashflow properties exist when you know what to look out for and how to be creative in setting up a deal.

I save this specific information, which cost me hundres of thousands of dollars to acquire and finetune, for those who are willing to attend my seminar.

Have a wonderful day.

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]

October 20, 2003 - 1:27 am

Hi,

My way of thinking is simply:

Only invest in things that make money!

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]

October 20, 2003 - 1:22 am

Hi,

I guess there is only so much information that can fit in one book!

Yes – I use accounting structures that limit my liability. My structure is outlined in the WealthGuardian product (see: http://www.PropertyInvesting.com/resources)

However, for land tax purposes, this is largely irrelevant as common entities are grouped (except where you invest interstate).

Also, remember that land tax is on the land value only – not the total value of land + building.

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]

October 20, 2003 - 1:18 am

Yep – see:

http://www.PropertyInvesting.com/bonuschapter

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]

October 20, 2003 - 1:15 am

Hi,

The principal component of loan repayments is not deductible.

And the interest component is only deductible to the extent that the loan it attracts to was taken out for profitable investing purposes.

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]

October 17, 2003 - 11:15 pm

Hi,

You need to establish whether the tenant didn’t pay because s/he couldn’t, or because they did not want to.

If it’s the former and you want to retain the tenant, work with them through the financial difficulties and arrange a payment plan to catch up the arreas.

It it is the latter, organise for eviction throuhg the proper channels and seek for the bond to be claimed to offset rental arrears.

Finally, think about sacking your rental maager who, based on your post, seems to be inept both in helping you manage your investment and in staying on the tenant’s back chasing up rent owing.

I’d be asking the rental manager to share part of the loss, but I’d imagine you have little chance of having that occur.

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]

October 14, 2003 - 10:54 pm

Hi,

It’s sometimes necessary to move posts around into their proper forums.

Sorry for the confusion.

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]

October 14, 2003 - 10:44 pm

Hi,

Just remember that some of the best deals are the ones that are stale and no longer advertised on the internet.

Don’t make the mistake of believing all properties are advertised… they’re not!

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]

October 14, 2003 - 10:43 pm

Hi,

Sorry, I’m not aware of any, but I haven’t done the research.

Remember that location isn’t as important as finding problems, and problems exist at all price points in all markets.

Wishing you all the best,

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]

October 14, 2003 - 10:41 pm

Hi,

Don’t fret.

I’ll try to make it to Perth in early/mid 2004.

Information will be outlined via the newsletter.

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]

October 14, 2003 - 3:20 am

Hi Stuart,

In the article you mention property ‘gurus’.

So, which gurus are you referring to and did you contact him/her/them when researching your article?

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]

October 13, 2003 - 7:31 am

Hi,

I echo the voices of support and wish you nothing but the best.

Still, I don’t believe taking advice from a well meaning yet ill equipped investor forum board would be as worthwhile as seeking some specific professional help – perhaps initially a community social worker or maybe even lifeline.

Having said that, the easiest option isn’t often the best option. Think through things very carefully and never make a decision such as the one you are considering in the heat of the moment (or an argument).

Sincerely,

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]

October 10, 2003 - 4:39 am

Hi,

I did one recently… paid $23,500 for something rented at $90 per week.

And we did another 30 or so on similar figures…

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]

October 10, 2003 - 4:36 am

Hi,

Well, it took Dave and I over six months to do our first few deals – and I was doing it more than part time but less than full time (let’s call it 3/4 time!).

In truth, your results can be better or worse than what I achieved based on the resources you want to allocate to getting the task done.

Best wishes,

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]

October 10, 2003 - 12:28 am

Hi,

I just wanted to show that a gross salary needs to have super deducted from it to form a net salary, and then that income tax is levied on the net rather than the gross salary.

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]

October 10, 2003 - 12:23 am

Morning!

I’m very pleased you like the new forum categories.

Thanks for your suggestions too.

Actually, this is not the forum upgrade that I was planning. (hopefully) Soon we’ll be moving to a complete new forum software system that is more robust and has many more features.

With a site this big, it’s just a slow process that is inching forward.

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]

October 9, 2003 - 7:56 am

Hi,

Leigh, will you give me another Enjo glove if you can come as a helper?[]

Probably be about 150 or so people there… I’m allocating specific time for questions and a quite a portion of the material will be stuff I have never discussed at seminars before.

The market is changing rapidly and I want to get the message out there for all to profit from. There will be mystery speakers (for about an hour) at the Melbourne, Sydney and Brisbane events. I need this to give my voice a rest.

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