Forum Replies Created
If you can get an adequate postive cashflow from the property then in my book its fine. You basically have to set your own objectives when it comes to investing.
If you consider that term deposits don’t give capital growth just interest (cashflow) it is a simlar senario.…Beware of the dreamtakers…
BTW – I was part of the MAP Program and am more than happy to answer and questions/comments you may have – Happy Investing…
So to be clear – do the invoices say $300 p/w from rent and he is only getting $1100 into his bank account? or do the invoices state only $1100 rent?
…Beware of the dreamtakers…
BTW – I was part of the MAP Program and am more than happy to answer and questions/comments you may have – Happy Investing…
Morning,
1)this expression – “have the property revalued, and then look at redraw or refinance to gain access to equity”…So the question is how does refinancing gain access to equity, or even redraw? any examples given will be much appreciatedThe way refinancing gives you access to equity is by taking a new loan against the property at a higher LVR (loan to value ratio) – So using your example of owning a property valued @ $400k (with a current mortgage of $80k) your current equity is $320K. If you refinance the property and take a 50% Loan this will give you access to an additional $120k of funds – $200k (50% of value) less the $80k you currently owe.
This is also refered to redrawing as you are redrawing anohter $120K out of the propertties value.So what you could do is take this additional $120k and use it for down payments on IP’s.
Be careful that you do not leverage yourself too much and get in a position where you can’t make the loan repayments. But you are exactly right saying “the rental covers both IP and home repayments?“
Best of Luck
Pete
…Beware of the dreamtakers…
BTW – I was part of the MAP Program and am more than happy to answer and questions/comments you may have – Happy Investing…
My advice would be to atleast put it subject ‘to approval of building report’ and get an independent report done.
Cheers,
Pete
…Beware of the dreamtakers…
Hi All,
Basically, ‘birsdoging’ is taking a payment/finders-fee for finding a property for someone else.
There are a couple ways you can ‘birddog’.
1. Simply put the property under contract with a ‘and/or nominee’ clause and then flip the contract/property to the person who is interested in taking it off your hands.
2. Find a property and get the purchaser to pay to $X if they proceed and purchase the property directly.
I am not sure why you would need to be licenced though – Qlds007, can you give more detail?
I have been away from the forums for some time and ma just getting back in volved so apologies Qlds007 if this question has previousl been answered.So basically, all that is required based on my understanding is a property that you have found, and someone who is willing to pay you a fee to find out about.
Cheers….
Pete
…Beware of the dreamtakers…
Josh,
A basic example could be:
OFFER TO PURCHASE REAL ESTATE
Purchaser’s Details: Name, Address, Phone
Property Details: Address of Property
Offer Amount: $150,000
Terms: Deposit of $3,000 + balance in 120 days
Subject to:
a/ solicitor reviewing the contract to the purcahser’s satisfaction
b/ finance approved in 14 days
c/ builder’s report to the purchaser’s satisfactionOffer Expiration: Close of business Friday 3rd March
Signed Your NameMake sure it is in writing, that way you look like you know what you are doing and there will be no confusion.
Cheers
Pete
…Beware of the dreamtakers…
FireCaeaer,
I have heard of this stratergy working in a number of circumstances and can create a fantastic return.
… my only ‘concern’ is that the market is still ‘viewed’ a sellers market and until it dramatically shifts, the power of buyers to be able to be creative like you suggest is limited.
This doesn’t mean that there are no motivated buyers out there – there always is.
The possibility is only really limited to your persistence and creativity.
The more questions you ask the sooner you will get a deal.
Best of Luck
Willi
…Beware of the dreamtakers…
Congrats Regan – You are in a great position for your age.
My thoughts would be:
1. Find somewhere close to you to invest so you can ‘keep an eye on it’(New Zealand is great for +CF at the moment)
2. Do the numbers – basically look at as many places you can find and do the numbers of each.Its not a scary as you might think. If you find a place, post the numbers (price/rental level/rates etc) on the forum and let members respond to that…
Best of Luck
Willi
…Beware of the dreamtakers…
One of Trumps companies – the one listed on the NYSE (stock exchange) – Trump Hotels and Casinos (which owns his Atlantic City Casinos) – has filed for Chapter 11 which is the step before bankruptcy. Basically the company has gone ‘on hold’ while they negotiate with creditors as they owe a lot of money on bonds they had issued.
In regards to TRUMP himself he only owns 25% of this company and they holding only equates to about 15% (as far as I heard) of his net worth, thus hasn’t effected him much at all.
Also the Chicago development that Bill is controlling is privately held by Trump and not associated with the listed company that is in trouble..
…Beware of the dreamtakers…
A simple way to look at it is – If at the end of the financial year the individual property as added to the lining of your pocikets by more then $1 then its +ve but if you have had to fork out more then $1, on top of the rental income, to help pay for the place its -ve
Pete
…Beware of the dreamtakers…
THERE OUT THERE……..
Well I just picked up a 2-bedroom property YESTURDAY in Victoria for $47,000 with a current rental level of $90 p/week and once I add a little paint and carpet it should hit close to $100
Stay positive they are there….
Pete
…Beware of the dreamtakers…
Try a mortgage broker… let them do all the dirty work…
Also look at NO or LOW DOC loans….
Pete
…Beware of the dreamtakers…
Also be careful as the higher the LVR the higher the mortgage, and thus the higher the repayments….
Make sure you go over the numbers…
Good Luck
Pete…Beware of the dreamtakers…
Basically all the 11 second solution provdides is a 10.4% yeild. It is simply a filtering tool…
Pete
…Beware of the dreamtakers…
aussierogue – totally agree
…Beware of the dreamtakers…
I think JB is great on the basics – and getting your personals in order…
But when it comes to actively investing in R.E. etc his Blue Print For Success package covers this rather the his Automatic Wealth seminar…
So if you need get your basic financials in order definetly do Automatic Wealth without hesitation but if you are after nuts and bolts I think there is better use for your $$$
Pete
…Beware of the dreamtakers…
Also visit
I think this is Tony… not sure though…don’t qoute me
Pete
…Beware of the dreamtakers…
visit…
http://www.users.pipeline.com.au/rsp
Richard of Red Square Properties, is currently doing lease/options in OZ. He might be able to help you there…
Pete
…Beware of the dreamtakers…
Howdee….
1.Steve’s WRAP pack is purely on WRAPS. It is currently undertaking ‘renovations’ and will be back on the market in a month or so I believe.
2. Any solicitor should be able ot draw up a lease/option for you
3. There is a thing called ‘The Australian Lease Option Handbook’ floating around, but I can’t remember where to get it…sorry
Pete
…Beware of the dreamtakers…
Start the fun game of searching….
The steps I suggest are:
1. Jump online looking for high yeilding areas.
2. Then ring the agents and act as tennant looking for a place to rent. If they say there is no homes avalibale maybe there is opportunity therePete
…Beware of the dreamtakers…
