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?

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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!?

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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.?

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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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Hi,

My way of thinking is simply:

Only invest in things that make money!

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Yep – see:

http://www.PropertyInvesting.com/bonuschapter

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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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

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Remember that success comes from doing things differently.
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