Forum Replies Created
Argyle610
It’s great how you can become such an “expert” in Steve & Dave’s business, simply from reading their book!
You obviously have it all worked out.
The only thing, you are quite incorrect.[
]Del
Hi Richmond,
We also settle on a couple this week. A block of 5 units, and also a house. All +ve cashflow.
It is hard finding em at the moment though, so we’ve decided to go down a side road for a while, and today we made arrangements to subdivide a block of 4 units and sell em off one by one, possibly by vendor finance. The subdivision should take about 4 months apparently.
We are still looking though, and we’re off this weekend for a 400km DRIVE !! Who knows!
MICHAEL & KAYE,
Congratulations on your lifestyle change. You will love the change away from the city. We couldn’t move back to the ‘burbs now. We have an asparagus farm down the road, and we live on a 20 acre hobby farm with a few horses, sheep, galahs, cats, dogs & 2 kids. Life is fun!!![8D]
Best of luck everyone,[
]Will & Del
Hi Madeinoz,
I don’t think so. Wouldn’t it make more sense to make your offer “Subject to a Valuation of the Property”, and “Subject to Finance”.
Otherwise you would risk losing the ppty to someone else. There is a lot of competition out there.[
]Good luck,
DelHi Richmond & Mini & Gang,
Richmond, you’re on. We’ll be tied up with our farm until Xmas, but then it’ll be full steam ahead with more reno’s. An extra pair of hands would be great. It’s very satisfying work, but heaps of fun.
Mini, to get a property at a great price, you have to find someone elses problem, (UGLY DUCKLING) and then find a solution, (TURN IT INTO A SWAN) don’t you agree??
Have a great day all, and NEVER GIVE UP.[
]Del
Hi Beancounter & others,
Yes, finding properties that meet the 11 second solution is VERY DIFFICULT at the moment.
There are A LOT of properties out there that ALMOST meet the 11 second solution.
Why not do a quick reno? You don’t have do go to the same extent as on “The Block”. Perhaps just a quick paint, new floor coverings & tidy the garden etc. and you can sometimes bring the rent up $30-$40 per week.
It’s not that hard to find them if you are serious.
Native_Metal,
I’ll try to answer your question for Steve, co’s I know how busy he is at the moment.
It definately is getting harder, however, there will always be opportunities. You have to be ready to TAKE ACTION, and perhaps when interest rates increase a bit, there may be LOTS OF OPPORTUNITIES that arise, from people who can no longer service their loans etc… You will then be in a more bargaining position. BUY AT THE RIGHT PRICE. Don’t give up. Real Estate comes & goes in cycles. Just be prepared to try different areas and approaches to find that property.
Good luck[
]Del
Hi Davide,
Are you buying this with the strategy of capital gains or positive cashflow?
Using the “11 second solution” this ppty is far from a good return:
rent div by 2 = $147.50
$147.50 x 1000 = $147,500
annual rent = $15,340
Therefore, I probably wouldn’t pay any more that about $150,000 as I buy for cashflow.
If you are buying for capital gain, then this is a different story, and it just might be a “diamond in the rough”.
As far as the age of it goes, as long as you add into your sums around 5% of annual rent, for maintenance costs, and if it still fits your criteria when you include management fees, vacancies etc, then go for it.
Good luck,[
]Del
“The only failure is the failure to participate”.
“There is no traffic jam on the extra mile”!!
“There are no shortcuts to any place worth going”.
Del [
]Hi vluu27,
I suggest that you do a “search” on:
Insurance, (in general)
Property insurance, or landlord insurance.Happy reading,[
]Del
Hi Spanner,
A personal favourite of mine (and other forumites) would be “Property Secrets Revealed”. It gives good comparisons between -ve geared and +ve geared property. It is 4 CD’s with a folder to answer questions etc… It’s a great starting point for someone, but with enough info to teach you stuff. Excellent value for money. [
]Wrap Secrets Revealed is currently out of stock until some time in September I believe. It is of course about wrapping properties, vendor finance. I went to the last wrap seminar, which was excellent, and I believe this will be even better, with heaps of info. The audio of the wrap seminar will become a part of the Wrap Secrets Revealed. This I probably wouldn’t go out and buy as as starting point for a beginner. [
]Hope I have helped.
Good luck,
Del
Garfield,
That’s something that only you can really answer.
If you buy a second hand car, would you buy it sight unseen, even if it had an RACV tenst done on it – probably not. A house will probably cost a lot more than any second hand car would.
Due diligence is very important. A house we looked at a few months looked like a bargain. Good condition, however it was next door to a demolition yard, stacked so high with dead car parts and junk. You’d never get a decent tenant living there.
Many people do buy with only a pest and building inspection, and that is fine. I have inspected all of ours so far, but that rule is not set in concrete. When I can build up a good relationship with a RE Agent, I probably would.
I like to see the inside for myself, so that I can remember the layout etc, so that down the track I know what the tenant may be needing i.e. sun blinds, air conditioner, security door etc…
Hope I have helped.[
]Del
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