I’ve just found this forum – I have been doing some reading on the topic and it’s certainly sparked my interest. There is such a great vibe of people sharing ideas and experiences.
I guess that I’m a bit overwhelmed by it at the moment. So many posters already have IPs, and so, I guess, have that to use as security for the next property.
I would like to hear of your story on how you got started?? Is it just a case of save and save until you have a 10% deposit? 20%? And then do you just play that waiting game until that one property has equity to secure another loan? This seems like the obvious answer.
Those of you who have purchased 2, 3, 10 properties in a year – how do you manage to get approval for those loans?
I guess if disciplined savings is what gets you to the starting point, then I can at least rest easy that I’m doing what I can.
Please share your stories on how it all started for you and give those of us for whom it still seems so far away a bit of inspiration.
Thanks!
Ditto
Hi all!
Yes please share your experiences with us!
Hi Guys,
I have been around this forum for a few months and I have learnt that their is more than one way to get started, you need some money to get started and it is preferable to have a permanant income when starting out, as the banks don’t like giving out Mortages without a steady income. I have learnt alot just looking around this website, if you look in the resources section you will find a wealth of information. The Fasttrack tape is excellent for beginners, I have purchased this one and found it to be a great starting point. Also try the search function at the top of the page to search for specific info this is very helpful.
Hope this helps
Have a great day []
BeckyInvest in People for a Prosperous Future!
Please, can anyone answer my question on’where to start’. Like Amateur I have just discovered this site and am overwhelmed with the information it offers and also the great attitude of people willing to share their advice, I am inspired. My question is this: if you don’t have any equity of your own or very little(that’s us!),can you use a family member’s equity (our parent’s- who are agreeable) to secure our first property?
Thanks for answering
Shelly[]Hey all.
I’ll take the plunge.Sheric…..yes you can use your parents equity if they are agreeable. Make sure you document it though and/or enter a Joint Venture agreement with them.
Where I started. I used some of the equity in our house to buy another property. This was the start of my buying. I then looked for another using more equity. I must admit there were times there where I was very maxed out and things were month to month on the bill paying but it was wortwhile.
I also came across deals when I was maxwed out and I used investors money. Sheri that could be your parents. Talk about your time frame for investing and the interest/share you are going to enter the deal with so there are no misconceptions. Be very clear.
I also wish I had sourced a good broker early who was able to stretch my money further tha the bank. Note here a good broker. There are many cowboys but few good ones. This site has a few people that seem willing to share and would be worth chattnig too. Along the way I was never shy to cash in a profit if it put me in a better position. If I pay tax…so be it. Money is money and profit is profit. I have a very actibve method of property investing which has seen me sell 5 houses last year and one for sale now. I believe in making mt money work for me. If I do not think I can get above 20% retuns on my money then I shy away from the deal. (eg. 10% yield and 10% cap growth).
Whatever you do don’t throw your job in and go Fulltime property investing as the bank will more than likely not touch you. Consider work a neccessary evil at present. Use it for deposit raising and loan approvals.
If you want to get somewhere fast remember there will be sacrifices. My family has not had a good holiday for nearly two years as I have been very busy doing property. On the flip side we will have a good holiday this year and our bank balance shows the rewards for the effort.
As to the practical of getting started I must admit to being rather driven. Never so much as to gisregard my family but still driven.
I started by reading everything I could get my hands on. I walked the streets looking at property and called agents all the time. On average when I started I would spend at least 40-50 hours a week (at least) “doing” property.
I imersed myself completely so that I could fasttrack. I talked to those on their way. Guys like Steve and Dave and others. I don’t mind standing on the shoulders of giants as the view is a whole lot better.Whatever you do make sure you crunch the numbers. It is easy to get Excited and carried away with opportunities but make sure they work for you. Don’t be convinced by anyone else about a deal make sure for yourself. If it means missing the chance of a lifetime…..guess what ….there will be another one along in a minute.
I truly believe that the chance of a lifetime happens at least once a month. Be there and be aware. Awareness comes from practice.
Hope this helps and provides some clarity for you guys. I was where you are not that long ago and I am nobody special so you can do it too.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Thanks AD (Andrew) for your reply,
I have taken your advice on board and will look into the equity issue further. My husband and I are primary producers and due to prolonged drought we are seriously considering purchasing off farm investments to enable us to meet our children’s education costs down the track.(Projected boarding school figures are $40000 each per yr x 5 yrs which is it out of the question from farm income!) When my husband raised the issue in general conversation with his parents, his mother said we could use the $120 000(inherited) equity she has in real estate in a regional city. She has no wish to do anything herself re: investing(‘too hard, ‘can’t be bothered’), we would have to do everything, however she has made the stipulation that she wants 50% of all profits. I realize that we would be getting a start from her generous offer of her equity but is 50% of all profits fair? If we were to not use that equity (and possibly not get a start), her investment would remain idle…
What is your opinion?
Many thanks, Shelly[?]Something for you to think about but 50% of something is better than 100% of nothing. If you can grow the equity then you might be able to do it solo.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Thanks for the replies.
I will definitely keep reading and keep saving and one day I’ll be starting my own property portfolio.
Cheers!
50/50 – you can’t get fairer than that!!
I’ve heard of quite a lot of partnerships where one half is the money partner and one is the time partner.
If I went into something with my folks I’d do the same – 50/50.cheers-
Mini
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