Heck, this IS quite a story. It’s definitely one to get some legal advice on, but being a cowboy, will you be able to recover and collect anything even if you get a judgement? Is there any kind of insurance you can claim on? Government building scheme?

– Steve

Hey Mark,

Thanks for the post. Wow. There was a bit in there!

Ive wanted to get involved in property ventures over the years but I cant borrow money because of my employment status and what most people at property seminars dont understand is that in order to play capitalism you need CAPITAL.

Very true! You need money to deploy – either yours (equity, savings) or someone else’s (JV, money partner, lender). Otherwise, the best way I know to create capital is to use the internet to monetise knowledge.

I have only one asset my apartment on the gold coast where I live with my family.

Hmmmm. This has me worried. Smart investors don’t use their homes as collateral unless absolutely necessary. It sounds like with a wife and young family, you need this home and you shouldn’t invest with assets and capital you can ill afford to lose.

You listed various options, but I am worried that options 1, 2 & 3 will be too capital intensive for you given you available cash and borrowing capacity. That said, perhaps scope some projects and see for yourself. As for tax liens, that boat has sailed – with the AUD lower and yielding assets in demand, the opportunity that was there re: tax liens in 2009 is not the same as the opportunity there in 2019.
Side note: you may find your ITIN has expired, or is about to, expire. They are only good for a finite period of time and have to be renewed.

It sounds to me that if you want to deploy your capital in real estate, then I would consider being someone else’s money or JV partner (noting what you said about not relating well, and hence the legal agreement will be important), or else buying in to some kind of listed / unlisted REIT structure.

All the best,

– Steve

Hi Jun,

It does sound like it is not a building defect, but rather improper waste being put down the sewer.

I suggest your friend get some legal advice, but as a starting point, if the blockage was caused on pipes in common property, then it would be a body corporate problem. If the blockage was in a unit’s premises, then it would be their problem. Ascertaining where the blockage occurred, and if possible who caused it, will help to work out who should compensate your friend for their damage.

Furthermore, does your friend have insurance? If so, I would be looking to see if I could make an insurance claim and leave it up to the insurer to seek recompense.

Finally, now it has happened once, what needs to happen in respect to maintenance and prevention to stop it happening again?

Bye,

– Steve

(And a point on due diligence for all – when buying a unit that is part of a complex, make sure you get a plumbing opinion on the impact of your unit if there is a blockage caused by a unit above or nearby).

Hey Donnie,

Yes, this will be a problem unless you are the owner. A builder would be my trade of choice.

I think the best way forward is to get the owner’s permission to do what you want to do once the property is unconditional. This is usually agreed as a special condition, but I would visit a lawyer to see if (and how) it can still be done now.

All the best,

– Steve

Hi Adrian,

Yes, may I recommend Daniel Gibbs – the gentleman you refer to who spoke at MMC last year.

His website is http://www.clinicmastery.com

I can unreservedly recommend Daniel.

Bye,

– Steve

G’day Ryan.

1/ If you purchase real estate with the intention of trading it then your profits are captured as ‘ordinary income’, rather than ‘capital gains income’. So if you buy a property with the aim of sub-dividing it and selling it, and you make a $100,000 in 15 months, then even though it is > 12 months, given your intention when purchasing it, the profit will needed to be added to your assessable income in its entirety as trading income. No CGT. The amount of tax you will pay will depend on the marginal tax rate applicable to the entity that purchased the property. Remember this: Be careful not to let the tax tail wag the investing dog.

2/ Having a job goes hand-in-hand with qualifying for a loan for investment purposes. This is the catch-22 of investing: you want to invest so you don’t need a job, but you need a job to qualify for a loan to buy an investment property. Managing the two is a reality for everyone. If you don’t have a job then you need to use private money lenders and/or JV partners.

Bye,

– Steve

• This reply was modified 6 years, 10 months ago by  Steve McKnight.

Hi Jeff,

It’s Spectrum Finance.

You are welcome to contact them via the webform at this link:
http://www.PropertyInvestingFinance.com

Unfortunately, I have received mixed feedback from those who have made loan enquiries with them. I am currently reviewing and reconsidering whether I continue to refer people to them.

Regards,

– Steve

I agree with Ben in principle, but in practice I think it is a moot point.

Experience shows that different people want different things out of life, and for some, following an investment pathway similar to what I describe in my books, etc. just isn’t of interest – at that time or circumstance in life, or at all.

Let’s not forget too that there are many pathways to the wealth creation summit.

Furthermore, not everyone who invests in real estate desires the same outcome, derived the same way. Consider the divergence in belief between negative and positive gearing.

Taking up Terry’s point then, in reality the opportunity is open to those who want to pursue it on an individual basis, which offers hope to those who want to make sacrifices and work hard to achieve a level of financial empowerment open to all, but sought in earnest by few.

Regards,

– Steve