Did anyone else catch Steve and Margaret Lomas on ABC radio last night? It went for about an hour and there were a couple of classic moments where Steve and Margaret ‘very politely’ discussed the differences each others strategies.
I wished I had a pen and paper handy as there was some really good discussions about the market cycle and other questions raised, but for those that missed it I do remember a couple of points out of it that may be interesting:
1. Steve has bought 25 properties in the last 5 days! Oh my gawd…
2. Steve is lazy! [
] (sorry Steve – just repeating what you said!) and ‘outsources’ as much of property investing that he can. He uses property managers and the average management fee is 5-8% across his portfolio.3. There was some discussion on interest rate risk should interest rates rise and Steve said that he would look to lock in more fixed term rates if interest rates start to rise, so as to manage this risk (I think he said he would be concerned if they got to about 9% in terms of his own overall pos. cashflow position). He also mentioned his strategy of using cashflow to repay debt as fast as he can, as another way of reducing interest rate risk (less debt means less interest).
4. Margaret then mentioned that if you look at the numbers there is actually little benefit in repaying a mortgage in less than 10 years (say 6 years) as you don’t actually save all that much interest overall – and you would be better off using the surplus cashflow to invest for a few years (and gear into shares for instance) – gives more diversification and better overall return. Interesting… Its a difficult one to analyse as there are so many variables – not something I had thought of myself…
As I said, there was a lot more info discussed – did anyone else listen in?
Tas [
]Damn,
I missed it. Know anywhere we xcan get lke transcript
Vluu
here is the skeptic in me
steve if youve just bought 25 properties in 5 days
why did it take you 3.5 years to buy 130.throwing around numbers like that is irresponsible and seems to be perfectly time with your book launch.
how about some clarification
– were they positive cashflow
– how come no one else on the forum can find them
– were they in australia??regards
http://www.abc.net.au/nightlife/
Tuesday 12th August PROPERTY
Steve McKnight ‘From 0 to 130 Properties in 3.5 Years’
Margaret Lomas ‘Make Your Money Last as Long as You Do’
http://www.wrightbooks.com.auAustralians sure do love property.
And if owning the quarter acre block is a dream… then owning an entire property portfolio must surely be a fantasy.
Not according to tonight’s guests – who’ve amassed over 100 properties from scratch.
Put their secrets to the test tonight – with a property edition of Tuesday night money.Lawry: Can’t find the transcript.
Hi there,
Unfortunately, ABC Nightlife are not going to publish the transcript at this stage(or so they told me), they suggested buying the tape ($35) or buying the books by Lomas and by Steve.
They did have another transcript (edited of course) on property (some consalation ha []) at http://www.abc.net.au/insidebusiness/content/2003/s921028.htm
but not our Steve! []
We can’t win them all…
Better Luck next time and maybe we’ll have a bulletin board to list all upcoming events.
Cheerio
Sooshie []“small steps make the journey” (SAS)
Hi,
Just arrived back from Sydney after the radio interviews with ABC and 2GB. It was certainly a very big experience which I really enjoyed.
You should have seen the phone lines light up last night… amazing. When I left at 11pm there was still a full board!!!
Anyway, to answer the sceptic(s)…
It’s a fact that in the last two months Dave and I have acquired around 60 more dwellings, all positive cashflow. The way we have financied these is we have sold some of our blocks of units for a good profit and then reinvested the proceeds buying cheaper houses on higher yields.
I think that the example I gave on radio this afternoon best sums it up…
If you bought a $30,000 car and then a year later someone came and offered you $60,000… would you take it?
Yes – especially if you could go back and buy another $30,000 car!
Well, that’s what has happened with our property too. For us and our goal, now is a good time to sell the higher priced stuff and redirect efforts back to the grass roots housing.
As for the area… I have now made it a policy not to discuss where I own property as I can influence the market. But I will say this… what difference does it make whether the property is in Vietnam or Vermont?
What’s needed is to turn your investing into a system and then the location isn’t as important as the person.
As to why other people can’t find the deals… I can’t explain why. They’re out there…
Happy hunting,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
well done steve,
i’m with you on selling your appreciated stock and rebuying at a lower entry point.is it possible to get the transcript available or an audio we can download off this forum.
love to compare where you are buying but understand fully what you are saying, i’ve purchased 4 (yes only 4, but then i only own 20) properties in the past 5 weeks. i believe the deals are out there but its not like the good old days when the ministry of housing were selling Elizabeth in SA for 21k and Morwell and Moe for 20K, But i decided to be a bit more imaginative, and there are still buys out there, I think my criteria is even more strict than the 11 second rule. Anyway better get off this forum your book arrived yesterday better get into it.
westan (i’ve got 2 copies i to lend out to friends)tks steve, just checking if you were listening
[]– good to get some clarification.
i was just worried that people would get the impression that they to can go out and buy 25 properties in 4 days right from the start using the system in your book. wch is not the case.
cheers
by the way, interesting comment
‘vietnam or vermont’
lots of +ve cashflow properties in south east asia
which i can vouch for personally having lived there for a few years.looks like this thing is spreading
Hi all,
Interesting that steve made the decision to sell his high end.
I canremember reading in one of my books that there are only two reasons to sell any asset.
Firstly you are offered an obscene amount of money to sell well over valuation and secondly when you urgently have to reduce some debt.I would rather be in the first position, steve and dave were smart enoughto realize that you don’t have to hold all assets for ever[
]
] (sorry Steve – just repeating what you said!) and ‘outsources’ as much of property investing that he can. He uses property managers and the average management fee is 5-8% across his portfolio.
]) at 
]
]
]The topic ‘Steve on ABC radio last night’ is closed to new replies.
