Forum Replies Created
Hey Quasimodo
I have just realised that you are located in Cananda (well it is hard to answer questions and be observant… [
])I have just been reading “nothing down for the 90’s” by Robert Allen.
From this & other books I understand that there are a considerably broader range of techniques available in the USA and Canada for creative financing with Vendors. That text might be a good place to start !
cheers
the B (or just plain old B, or even Bruce if you like [
])Stampeze
I agree with AD & Quasimodo. Positive cashflow feeds you (property is an asset), negative cashflow eats you (property is a liability).
There are, however, legitimate investing reasons to have a negative geared property, BUT, you must fully understand the downside risk of this. ie, you are absolutely dependant on a rising market to “cash you out”.
We are more into positive cashflow where we are not trying to predict the market, we have locked in our profit from day one.
keep asking questions !!
TTFN
the B [
]Hi all
Steve & Paul Harpers new product “Wealth Guardian” covers these issues in depth and is straight forward to understand.
It is a considerably expanded set of notes based on those presented at the last Masrters event.
Steve can probably shed a little more light on this [
]cheers
the B
Quasimodo
OPM (Other Peoples Money) in the form of…. Vendor finance !! [
]You need to negotiate with bank re second mortage (if Vendor loan is secured) as they may reduce the LVR to deal with it. We have been told no to LMI if we use a second mortgage, but, if it comes up we will ask again as the answers sometimes change given a little time and track record [
]cheerio
the bbb B
Qasimodo
we have similar experience to AD. Make agressive (not ridiculously low) offers and look for the win/win.
we also have agents givning us ‘first call’ now.
the B [
]Hi All
good preci’ jumbo.
Our reading of the market is that is is hot hot hot. We have been trying to buy property in Tas, but have been out bid many times by elusive “investors” [
]Seems to us that many people are just getting on the bandwagon and buying; irrespective of doing their due diligence.
Missed out on two a few weeks back where we were out bid by unconditional asking price plus X % offers. Know of an auction where the shell of a derelict house sold for nearly 2/3 the price of a fully renovated place next door !
I think that Jumbo’s call on building relationships with the market in its’ present state is a good one.
Joanne, try the Professionals office in Lton – Steve Eyles is very good. Also Deb Billing at Ray White. Professionals in Burnie – Gay Lyndon
the B [
]Hi all
a real winner for us has been adding an electrical inspection clause to our contracts.
I mentioned it in a post a few weeks back. Since then we have purchased some ex-commission places that looked great but had original 50’s wiring !
In all instances we have saved between $1,800 and $4,000 by negitiating for the Vendor to carry out all or part of the works.
the B [
]Hi Jumbo
our only contact is in Hobart:
WT Partnership
2/88 Bathurst Street
Hobart Tas. 7000
ph.03 6234 5466
fx.03 6231 1314Have not used them yet, but they came recommended, and sounded professional on phone.
Min sharge is a few $100. For smaller jobs charges are based on time.
cheerio
The B [
] r …… u …….c………e.Hi Sandi
Hilary and AD have pretty much said it all!
In summary:
1) Write it into the contract
2) Convince the Vendor’s solicitors that it is OK. We often put in a clause that says we want access after we have gone unconditional. This seems to satisfy most people.
3) Ensure that the contract goes ahead to completion (if it doesn’t, you must un-modify the property, and it is a little hard to un-paint a wall [])
4) Be prepared for them saying NO. Our experience has been that private vendors will allow it if it is put to them in a favourable manner, however, the director of housing and any mortgagee sellers will NOT!!cheers
The B r u c e [
]Dave T
another approach is to do works on the property during pre settlement and then have revalued as you have made substantial increaes to the security value of the property.
the B [
]Saskatoon
it is my understanding that once stamp duty is paid on a loan if you have it refinanced you are not liable for stamp duty a second time; as a loan on the security (the property) has already been stamped.
Anyone else have any clarity on this ??
the B [
]Hi all
1) If you are confident that the market is rising, go for a long settlement (at least 6 months) and hope that the market rises enough for you to get in at new valuation (hopefully closer to the magic 80%)
2) sign it up and on sell to another invstor, again requiring longer settlement
3) variation on 2) is to sign up with a long cooling off clause and then try to find some else to assign it to
4) get a long settlement and work in your J.o.b. to raise sufficient funds to lower the LVR required.
5) If the deal is looking good numbers wise, offer some friends a piece of the pie either based on a fixed % return on their investment or as equity partners (now there are a lot of issues in this baby, believe me [
])Mmm that’s all for now
cheers
the B person [
]Hey 4 walls
do you reckon that you can add, subtract and drive a calulator (though I guess that you could use an abacus if you are really into it [
])?When I attended the event I was impressed by the level of the notes. There are many fully worked examples and even better, places for you to work through stuff yourself while you are there, so as that you maximise your learning experience.
Don’t just take my word for it though, do a search on the forum for “Masters Event”, “Property Investing Masters” or something like that and see what other folks had to say [^].
cheers
the B personage [
]“problems come to us bearing gifts; we seek out problems because we need the gifts that they bear” – translated loosely from (I think) Richard Bach, Illusions.
Hey Leigh
great claculator, thanks for the link. I reckon that Sooshie will like this for her part of the site :o)
The B [
]Hi all
our experience is a lot like Anna’s, most of our friends are supportive but for many it really isn’t in their paradigm (nor does it need to be), even though they can see it working for us.
Mmmm, however, I have finally got to the point where I am not too shy to mention that we do a bit of property investing when we are asked what we “do” [
]the B
Hey Go Girl
whip out to the local book store and order a copy of John Burley’s (Australias) Money Secrets of the Rich, (thoughtfully marketed in a green and gold cover [
]).We found it invaluable in getting over the first hurdle of getting the dollars together.
It has some day by day practical things to do (many of which are not glamourous, but then you are learning about being your own financial master, not about being “glam” [
]) but it is a great way to learn to spend less than you earn !hoo roo
the B [
]
])
])
]) but it is a great way to learn to spend less than you earn !
