Hi,

Thanks for your post and welcome to the forum.

For websites… check out the Web Links area.

For books… do a search on the forum as this topic has been raised before. Maybe it would be a good idea if we added a ‘recommended reading’ area.

Cheers,

Steve McKnight

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Hi,

The great thing about this forum is that people are welcome to have and express alternative opinions.

If you can’t find any +ve cashflow propertiers then no problems… no one is forcing you to invest that way.

For me though, I can continue to find and buy a range of properties and to date my strategy has worked well.

As the market changes I expect that my strategy will need to change too. I am mindful of what mught happen in the future and I agree that the boom capital gains periods are coming to an end, but my I invest for cashflow not capital gains.

This is my strategy, which is right for me. You need your own strategy for you conditions and circumstance.

Bye

Steve McKnight

Hi,

Welcome to the forum!

One value is for positive cashflow and the other value is for bank lending purposes (ie. it has to do with acceptable bank risk vs. cashflow returns)

Bye

Steve McKnight

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Hi,

I’m saying the actual cashflow you receive is $20,000, but the amount of income that needs to be distributed to beneficiaries is only $10,000.

Bye

Steve McKnight

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Hi,

Don’t just limit yourself to Sydney… good accountants are so hard to find, I’d be willing to go interstate to find one if I couldn’t source one locally.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I think that you have missed the wider picture of how to create positive cashflow returns and I certainly feel that you have misapplied the ’11 Second Solution’.

From my experience finding a deal that would be wildly cashflow positive based on ring real estate agents and applying the 11 sec solution is a gross under-exageration of what’s needed to be truly successful.

The purpose of the 11 sec solution is to find an area to invest in… the next job is to find properties that lend themselves to falling within a parameter of problems that you are able to solve.

The buy and hold technique is just one of many ways you can use to get +ve cashflow… it is certainly not the only way.

Be very careful not to adopt an attitude of “I can’t do it, so the whole idea must be flawed.” This is not true at all. I continue to attract and invest in +ve cashflow properties, and I know that many other people do too.

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Ok we have finally found a unit that a tenant can afford, but the only problem is that you now live 250km away from you investment, it is old and in need of constant repair, the capital growth in the small hamlet is bearly keeping up with CPI.

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Saying this suggests that the outcome you want is confused. Do you want cashflow or capital gains? If it is old and in need of constant repair then you need to factor that into the deal. if the numbers and the risk:reward ratio don’t work out… don’t buy the deal.

For example, yesterday I told a friend about a house for sale in his area for $30,000. Only problem was that it was pretty much in the middle of nowhere… but it was a potential opportunity.

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You have been investing since 1985 which means that you should have 7 or 8 properties ( buying 1 every 2 to 3 years).

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To whom is this directed? I began investing in May 1999.

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Now when i retire the last thing i want to be doing is having to repaint,repair,worry about the idiot who hasnt paid rent for two months and could be causing thousands of dollars damage because its not his property and if you havent had any trouble yet like this, you are very lucky.

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Hmmm… this is scarcity talk as you seem to be focusing on fear and the worst case scenario. If this is your paradigm then you could get tenant insurance for potential damage. I have not had any such trouble and I don’t regard it as luck.

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I would like to here from people who have cash positve investments to put their case forward on how we can rent a 250k,130k and a 75 property using the 11 sec rule

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Well, I have properties at, above and below these values that are all +ve cashflow and exceed the 11 sec solution.

I think that Stuart O’Neil has great advice… he says Tenants don’t rent houses people do! If you do not like dealing with people…buy shares! Property is a peoples game.

Finally, I’d like to finish on a positive… despite your bias that you don’t seem to think it can be done, you at least remain open to the possibility that you might stand corrected. To this end you should be encouraged for having the conviction to write down your concerns.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I’m in the modd to answer a few questions…

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1. When people say Market Value, e.g. “buy a property below Market value”, does this mean below the median price of the area? or have the property valued and buy it below that?

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Market value is generally an expression of an unquantifiable figure of what similar properties are being sold for in the current market. I doubt it has much to do with median house price data as this takes about 3 months to come out.

Market value is most often the ‘gut feeling value’ given as a response to the question “what are properties around here selling for?”

Of course, the market value can only be accurately after the property is sold, at which point it reflects what a buyer will pay and the value a seller will receive.

quote:

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2. Does anyone use a property manager? I need some advice on selecting one. What makes a good property manager?

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A good property manager is one that sees a problem before it occurs, then solves it in a way that is efficient both in terms of time and cost.

Trust is absolutely essential… and we feel our property manager looks after our assets like she would her own.

We don’t take the cheapest, since often paying peanuts attracts monkeys!

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Crunch the numbers further…

At first glance it meets the 11 sec solution, but what are the management fees, vacancies etc.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

There have been some excellent quality posts in reply to your request.

My thoughts are that you need to determine what your outcome is that you are trying to achieve from investing (ie. capital gains or cashflow).

Deciding this will enable you to focus on particualr types of property investments.

Then it’s a matter of finding them, which will require some effort.

If you haven’t already done so then I recommend the Fast Track tape that I recently completed with David (my business partner). In it we outline what we did when making a start, so you should find the information relevant.

Re: books, do you earn interest? If so then maybe you could argue you already invest and as such books etc. are just extrapolations of maximising your investing dollar. Don’t rely on this though… see your accountant.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Marcus,

Thanks for your post.

If you have interpreted anything I’ve said to cast doubt on Burley’s integrity then I assure you this was not the intention.

However, being an Australian site and dealing with Australian issues, I feel it is relevant to point out that an offer made on an international website calling for (directly or indirectly) Australian investors is treading on thin ice. Fact.

Re: your post about Joe Gutnick. You are right to say it was about defamation, however the High Court addressed the issue about publication on the ‘net too.

Final word – this site is not about mud slinging or cutting people off at the knees. It is designed to be a forum to discuss issues constructively.

Sincerely,

Steve McKnight

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Remember that success comes from doing things differently.
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