Gillian,

I’d work out some budget numbers that start with how much money you plan to make and then work backwards.

This will reveal the amount of cash you can spend to acquire the home to begin with.

Avoid, at all costs, being swept up with the potential to make a lot of money.

Look at what is happening around the area where you want to invest and see what other developers are doing and also see how easily renovated / new sub-divided properties are selling.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Nathan,

Thanks for your post and welcome to the PropertyInvesting.com community.

In respect of tips for beginning I certainly want to encourage you to continue working on clearing up any past financial glitches.

The essence of successful property investing begins with successful personal finance management.

In this respect I’d spend some time analysing what went wrong and in doing so trying to identify the specific mistakes you made. Once you know this then you can avoid making the same error in the future.

I have not read either of the resources you mentiond, although I feel it is wise to read widely to educate yourself about the different investment possibilities.

It seems you have taken lease options as a chosen strategy. OK, that’s a good place to start. The next thing is you need to put a deal together. I’d imagine the product you purchased outlines this?

Mentoring? Sure… post your questions here and I’ll certainly lend my experience to your problems.

I’ll even give you some homework to begin with… I want you to find an area within an hour where you live that would provide a positive cashflow outcome.

Might I suggest that you look for properties priced $90,000 and less… and where you could seek a rent return of say $150 per week plus. This is outside the 11 Sec. solution, but it will be a good starting point for you.

Might I also suggest two more resources… if you haven’t already done so, invest the $25 odd dollars for Fast Track.

Also, check out the outline of the different investing strategies, beginning with Lease Options.

Thanks again for your post and for having the courage to make a start.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Welcome to the land of Oz!

You ask:

quote:

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Does the non paying scenario tend to happen a lot?

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Well, in my opinion if it happens once then it happens too often.

As such I take the approach that it is best to carefully pre-qualify the lead before entering into an agreement.

I wouldn’t call the process of getting a defaulter out of a property easy, still, if you can work through the issue still looking to create a win-win outcome then it can happen with a minimum of fuss.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I don’t have much experience with getting developments financed from scratch.

However, some general advice is to approach the lender in advance and ask them what sort of information they require and then shape that into a professional submission.

Remember that a bank wants to eliminate risk, so from their perspective they will want to know what happens if you default. They wouldn’t want to be left with a partially completed site.

As such, finance for developments is usually offered on a progress payment basis depending on the % of completion, rather than 100% up front.

Accordingly, you need to specify how you require the payments and I’d imagine providing this request in some kind of budget form would be appropriate.

Remember that the best person to ask is the lender.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Try:

http://www.propertyvalue.com.au/postcode_profile.php?cB=3e12d95e6ec3d&affiliate=1

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi AD,

Thanks for your post! Happy New Year to you too – and indeed to all the forum posters and readers.

I’ll be in contact when I get back from Mackay re: the Brisbane investors group and I’ll look to come up in say late March / early April.

As for my goals… $20m more property by 1/1/2004!

As my primary school’s motto said… “Aim High”

Best regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi George,

Welcome to the PropertyInvesting.com community and thank-you for your post.

While the investment you outlined in your post would not be something that I would buy (as it is likely to be negative cashflow…), I nevertheless feel that being in the game makes you well placed to go on to investing success.

Nobody scored the winning goal by sitting on the sub bench…

But don’t stop at one!!! Take what you have learned from this site and your existing investment and go on to acquire another 40 in 2003. []

Remember to post your questions here and I look forward to seeing more from you on the forum.

Bye

Steve McKnight

P.S. Why not post what you have learned from your first investment?

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Remember that success comes from doing things differently.
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Hi,

You ask:

quote:

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what is the best lender for wraps now that ANZ are much more difficult to use?(they did not accept me) – eg int rates and get in / get out fees included…

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Sadly, the process of seeking finance for wraps is never easy and is more often than not a case of trial and error.

I believe it is best to network with mortgage brokers and tap into their network to find a willing lender.

The people that we use are not generally open to the public since we get wholesale treatment as we own so much r/e.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi Nick,

The three most popular US forums seem to be:

1. Robert Kiyosaki’s site: http://www.richdad.com
2. Creative Real Estate: http://www.creonline.com/
3. John Burley’s site: http://mastermindforum.com/phorum/list.php3?f=2

I must admit that I am not a fan of John Burley’s site since the policy adopted is one of heavy censorship.

Still, if you pick up one new piece of information that makes money then it’s worth the time to wade through all the “acceptable spam” posts which cater for big egos.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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David,

There will be two legal documents in a 2nd mortgage.

The first will be the normal sale of land agreement.

The second will be the 2nd mortgage agreement.

Re: the issue of being left high and dry… I would either include a clause in the sale of land agreement saying that if the seller pulls out then s/he must pay all legal costs for both parties.

Or, if this is not the appropriate leagl form (that is, procedure) – then draw up another agreement that outlines the intent.

If you are worried about collecting the money then ask for the funds to be held in Trust by a solicitor as a sign of good faith.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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