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

April 20, 2003 - 11:50 pm

Hi Quasi,

Yes – congrats on your marriage… the most important partnership of all.

Some quick advice… many people work at a job, work at investing, even work at sport. Yet when it comes to marriage, people don’t think that their marriage needs the same amount of work or attention.

At the moment my wife and I are working through a couple of excellent books on marriage…

“His Needs, Her Needs”
“Fit To Be Tied”

Let me know ([email protected])if you’d like me to send them to you as a wedding present.

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]

April 16, 2003 - 7:35 am

Hi,

OK… the contest is now over with a few surprising results.

As I don’t want to let the title out of the bag just yet, the winner will need to wait a few more weeks before receiving his/her prize.

Thanks to everyone who contributes… there were some fantastic ideas.

[]

Steve McKnight

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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]

April 14, 2003 - 10:37 pm

Hi,

I don’t think that there’s a rule of thumb to apply here. Try to negotiate the best discount you can that still results in a win-win outcome.

Sorry to be vague.

Based on the deal that you mention, I think you understand that if it makes money then trying to save a few sents may cost you thousands if you miss out.

Just be careful with the rebate clause that it is properly documented in the contract.

Bye,

Steve McKnight

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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]

April 14, 2003 - 10:34 pm

Hi,

Why wouldn’t you invest for BOTH capital gains and income returns?

The discussion here seems to be you either get one or the other…

My experience is that it is possible to get both.

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

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

April 14, 2003 - 10:31 pm

Hi,

Yep – I’ll add this to the list of ‘wants’ when the site undergos it’s next upgrade – which will be in the next few months.

Bye,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

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

April 14, 2003 - 10:29 pm

Hi,

If all you did was make money, then you’d have to make money.

The question then (in my mind) is does this investment make money from day one.

Crunch the numbers and I expect that it won’t, which is why you’ll receive tax benefits (ie. write off the loss).

Bye,

Steve McKnight

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Remember that success comes from doing things differently.
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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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[Steve McKnightKeymaster@stevemcknightJoin Date: 2001Post Count: 1,763]

April 14, 2003 - 7:28 am

[]

It’s nice to receive positive feedback.

Steve McKnight

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

April 14, 2003 - 4:24 am

Hi,

Andrew asked me before making this post and I was happy to help him out.

Please direct your questions to his e-mail account.

Bye,

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

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

April 13, 2003 - 11:54 pm

Hi,

Thanks for answering this post.

Yep – what I wrote for NineMsn covers the issue nicely.

Low ball offers create a lose-lose-win outcome…

The vendor loses (low price)
The agent loses (low commission and unhappy client)
The buyer wins (low price)

If that’s the way you want to invest then fine… but good luck as if you get a deal over the line it will be through luck and you won’t be building a network of contacts.

Seek to do win-win deals and you won’t find the going as tough over the long-term.

Remember that you invest time and money when looking for deals. Money can be replaced… time can’t.

Bye,

Steve McKnight

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

Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

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

April 13, 2003 - 11:50 pm

Well Said.

Let’s move on…

Steve McKnight

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Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Success comes from doing things differently

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

April 13, 2003 - 11:48 pm

Hi Andy,

Yes – I do what you have suggested for finding wrap leads.

In the first instance, I run classified ads to attract leads and then once filtered I qualify them to buy property up to a pre-determined level.

quote:

---

If one could make an offer on the property subject to the tenant-buyer going through with the lease option or wrap, it would remove a lot of doubt and risk as to whether one was going to have any vacancy between date of settlement and beginning of Tenant-buyer’s lease.

---

Hmmm- it might be difficult to do this as (in Victoria anyway) the Sale of Land Act does not permit you selling a property before you own it.

I’m also concerned that a subject-to clause of this magnitude would be difficult to negotiate.

What I do is buy the property and try to have my buyer remain interested in the deal. The best way has been to get them to pay an pre-application fee (of say $1,000) that comes off their purchase price (or deposit) when they go through with the deal.

If they don’t then they lose the $1,000.

Other non-financial incentives such as getting them to move in asap and keeping in contact with them about the status of the purchase are important too.

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]

April 13, 2003 - 11:40 pm

Hi,

My input is:

quote:

---

Steve’s 6th Law Of Property Investing Success: Understand The Difference Between Fact And Opinion

---

Maybe the real estate bubble will burst, and maybe it won’t, but until it does… the only thing we can go on is opinion.

Now I can quote facts (since REIA data began in the 1980’s) for every major market in Australia and can say that while there has been periods of negative growth, there has never been a collapse.

But to be fair, there has also not been a boom like we’ve ever seen before either.

Since we can’t invest tomorrow or yesterday, all we can do is invest today.

As such we all need to come up with our own opinion use it invest or stay out of the market as you see fit.

Sure, be guided by other people (like me), but don’t make the mistake of confusing my (or anyone elses) opinion for a fact.

[]

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]

April 13, 2003 - 11:32 pm

Well said Jason.

There is some thought that the way around ‘double stamp duty’ is to buy an option over the property rather than the property itself.

So, a theoretical case study might be:

Jason finds a property in the market for $100,000. Looking for a win-win outcome he creates a call option to buy the property at $110,000 with an exercise date 6 months in advance.

The real estate market is booming (or the house increases in value for some other reason) and in five and a half months time the property is now worth $130,000.

Jason’s two choices are:

1. Exercise the option and buy for $110,000, then seek financing based on $130,000. 80% lend on $110,000 ia $88,000. 80% lend on $130,000 is $104,000 – so buy doing this Jason has less cash in the deal.

2. Sell the option for between $110k and $130k and pocket the difference.

There are a few concerns I have with this though…

1. This idea a bit of a legal minefield and I don’t know that anyone has successfully navigated it yet.

2. You may need a real estate agent’s licence to profit from property when you are not the owner.

3. There is no CGT 50% discount as you have held the property <12 months… as such, a large chunk of your profit may be subject to tax.

Please note, having never completed a flip… all I can offer is theory.

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]

April 13, 2003 - 11:23 pm

Hi Mouse1,

Thanks for your post and welcome to the forum.

By pooling your equity and resources you certainly have access to more money than as individuals.

To ensure that you can secure finance after you have maxed out, it’s essential that you have an effective accounting/tax structure.

At this point, provided that all the debt is in one entity (and not your individual names), once you’ve maxed out then just replicate the structure (ie. set up a new entity).

It’s expensive in accounting fees, but that’s the way that Dave and I have been able to secure ongoing finance.

Have a wonderful day,

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]

April 13, 2003 - 2:49 am

Hi,

Let me point out that this is not a ‘wild west’ forum. It is a moderated forum.

As such, ANY post by ANY member that is deemed to be in voliation (in the moderator’s opinion) of the forum rules will be either edited or removed.

So, Paul (or Tails, or whoever) when you make a post that is defamatory then it will be deleted. If you persist with doing this then, just like last time, you will be banned from making any contribution.

However, unlike last time, should you be banned again, then it will be permanently.

No one objects to an alternative viewpoint that is expressed respectfully.

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]

April 13, 2003 - 2:35 am

Hi,

Late last year a friend of mine, unfortunately, had a miscarriage and needed to see an obstetrician to make sure that everything was ok.

She was only with the obstetrician for about ten minutes, who did an examination – found that nature seemed to be running its course, but ordered blood tests just to be sure.

When my friend went up to pay the fee was $130.

Was this too much, well, there’s two ways to look at it…

1. This guy drives a nice car and lives a good lifestyle… so maybe it is too much.

2. This guy has been to school most of his life, does a specialised job, is needed in an emergency, is on call 24 hours a day and is constant threat of being sued. $130 sounds like a bargain!

The lesson in this is the perceived value depends on:

A. How badly you feel you need the service; and

B. The level of expertise you feel like you are paying for.

If you feel that $2,195 is too much then that is your opinion. To me though, if I paid $2,195 and then recouped this 100 times over in the course of my property investing then it would be a bargain.

On the other hand, I wouldn’t pay $2,195 to go to a share seminar because my focus is property.

So, the real question is this…

If you plan to do nothing then I agree with you that $2,195 seems expensive.

But if what you learn at the seminar allows you to go on and own $2m+ in investment property, then $2,195 represents just 0.11% of this total, which makes it a bargain.

When it’s all said and done though, the only way to determine whether you receive value for money is to complete the seminar, as until then, all you can do is speculate.

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]

April 12, 2003 - 3:37 am

Hi,

Let me say a couple of things…

1. I’m more than prepared for you to have your say, BUT, it must be said in a respectful manner and when you make a statement I think it’s reasonable for you to substantiate it with evidence. If not, then you leave no option but to edit or delete your post as per the terms and conditions outlined when you signed on.

2. The book does contain information on wraps, but it is not a wrap book. It is a book about property investing in general.

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]

April 7, 2003 - 11:22 pm

Hi,

I should also add that I want to steer away from the word ‘secret(s)’.

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]

April 7, 2003 - 10:37 pm

Hi Susiemac,

Thanks for your feedback. I wanted to mention that Jules doesn’t have to work but couldn’t articulate a way to say it that didn’t sound cocky.

If it’s ok then I’d love to use what you wrote.

(Are you also putting your hand up for the proofing job? [])

Thanks to everyone that’s provided feedback to date. It is much appreciated [].

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]

April 7, 2003 - 6:48 am

Hi,

Settlement occurs the day the property title transfers into your name.

The time between signing the contract and title transferring into your name is known as the settlement period.

Settlement is not an exciting process – just a bunch of solicitors and other representatives swapping legal documents and cheques.

You’ll receive a settlement statement of adjustments which outlines how the total proceeds have been divvied up, together will a bill from your legal representative.

Once your name is on the title… congratulations! You’re the official owner of the property.

quote:

---

and if i get a 3-6 month settlement agreement, does that mean i don’t have to start paying my mortgage, and will the seller hold the property for 6 months?

---

Yep. That’s right. Your lender will cough up the funds on the day of settlement, which will be the first day of your loan and when your interest begins.

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