That’s only speculation and certainly not what is purported in the hype on TV etc.
[/quote]
OK, even though at the moment, it is yesterdays news, IT IS ALSO TOMORROWS NEWS IN ADVANCE!!!
Its all about cycles and getting active at the bottom of the cycle.
Will those +ve geared properties pop up close to town in the future. You betcha they will. Just gotta wait; and armed with the knowledge attained through the likes of Steve today; you will recognize them for what they are, a golden opportunity.
Cheers
http://netvantage.netfirms.com
[/quote]There were a few areas i questioned about steves book and as im from the uk not all of it applied to me. One thing that did poke out was that you have to be creative and make a deal work for you. I think the time steve entered into the market is the main reason for his success, but there is no reason you can not make it work for you in the same way. If you follow this book word for word you are going to find it very hard going, not impossible though. I think you really have to look further afield and even in a booming market there is still opportunity.
[
] hi guys, i am still a mewbie and know nothing, however no matter how hard it is to stick to the 11 second rule i know that in 10 years time there will be people in all areas that will wish they could have bought in 2003!!!![]Hi Martin
re:
your post. i.e. “get real!….. I challenge Steve to show me one property that satisfies the 11-second solution in Melbourne or a country location that has the kind of attributes Steve recommends ……….”Ever since I started investing (with Steve’s method) I have been bombarded with people saying ‘that can’t be done’, ‘it won’t work’, blah blah blah.
meanwhile i’ve been quietly going off and doing it. bought 3 this year so far (minimum 20 percent yields) and about to purchase number 4.
So what does that prove? That it’s *impossible* for the people that say it’s impossible (you) and *possible* for those who not only think it is, but look for and find deals, then buy them. (me).
So all you have to change is your mindset!!!! otherwise your opinion ‘it’s impossible’ will remain true for you.
cheers-
MiniHi everyone, I use a similar method to steve and have 43 IPs, – I bought my first in 2000 and only bought 1 that year.
Steves basic system is good but there re several problems I found in the book. One is that he uses best case numbers, not realistic numbers.
For example I have 8 property managers and they all charge more than 8% management fees. Steve uses 5% I think for his calculations.
He also uses cashflow of $30 – $50 per property, but at the end of the year I’m lucky if I get $30 for an average property, – $20 is a more realistic for most investors, although I do have a few that give me particularly high cashflow.
I think that giving movie tickets away eats into the cashflow too much.Coincidently I use a similar rule to the 11 second rule, but I use it backwards, – I double the purchase price in thousands and if the rent is lower I just discard it as it is still not good enough for me – if it is higher I work out the yield, then if that is hiogh enough I analyse in detail.
I also started in an easy market like Steve (mine was Elizabeth SA), but now it is extremely difficult to find good cashflow properties, and I think that for the average person, it would prove too difficult.
I also fine tune my methods differently to Steve and this gives me an edge. My criteria are even harder to match than steves.
I suspect that by using wraps and money from seminars, he has boosted his purchasing power, although he does admit this. We cant all do seminars, and they are not passive income. For South Australians like my self wraps are illegal, and lease options are not as lucrative.
Note that in his calculations he omits the extra interest paid when you use equity in another property to secure it, and in one calculation, money is created out of thin air as the calculation moves from one page to the next (dyslexic maybe).
The other gripe I have is the title seems a bit misleading – 130 properties were apparently aquired by two couples.
Besides all that, I enjoyed the book and even if you follow his methods you should be much better off than by negative gearing.
John Fowler (0414 602903) [email protected]
martinw,
I have just purchased 4 very cashflow positive properties this month and 2 last month.
There is lots of money to be made, even in this market, all you have to do is get off your bottom and find them.
5 out of the 6 were under $60,000.
I think I have just blown your theory to bits, that positive cashflow properties aren’t out there.
Del
I was happy to pay $30 for the book. Knowledge is power.
So its yesterdays news. The principles still apply. There will be other booms. Personally, I had no plans to buy property anyway, I just wanted someone to teach me the ins & outs of positive gearing. I read the book substituting every property word for the equivalent sharemarket word.
I now educate share investors how to positively gear share portfolios. Yes, it is too late for property. But shares are just beginning…….
Crashy,
I admit to being ignorant when it comes to shares.[
]Do a lot of people positively gear shares?
Sounds like a good niche market.
Good luck,
Del
No, most people have never thought about positively gearing shares. Interest rates are usually too high and dividend yields too low. The current economic climate provides a rare opportunity. Dividends now provide the best income of any investment class, including bonds and property.
It is currently possible to borrow funds at 5.75% and invest in shares paying 7-8% in dividends. Thats the simple strategy, but there are many more.Dont you wish you had positively geared property 3-4 years ago? Thats what people will be saying about shares in 4 years….
Crashy,
I looked at the website. Is that really you?
You have been a busy boy. Congratulations on thinking outside the square.[8D]
Good luck,
Del
I have just been reading another site at this location and apparently there are cash flow properties available at Cobar.Do your research. Steves book is fantastic.
The first night I did some research online for +ve cashflow IP’s (just last week), I found about 10 that met Steve McKnight’s 11 second rule just in one of our large country towns here in SA.
Don’t know where the critics are looking…. hmmmmm
The only criticism I had with Steve’s book was that I thought his annual property maintenance budget was a bit too low ($200 p.a.). But that’s only a minor point.
I prefer to budget for $1-2k. For example a dead hot water service could easily set you back $1,000 including installation. And what about repairs if your tenants cause a bit more than the usual wear & tear, or leave the place & yard messy.
Basically, as I see it, Steve’s recommendations really only work best if you treat the your property investments like a business, not a hobby.
By that I mean, not just settling for 1 or 2 or 3 IP’s. But acquiring 10, 20 , 50 or 100 IP’s over the course of your IP activities.
Then you are in a real position to build a good team, have a streamlined system & support crew, and get the best deals for maintenance items, loans, property management etc. And of course reap the big rewards!!!
The project building company I’m subcontracted to have a support crew of about 30 full time staff, 10 sub contracted sales consultants, 100’s of sub contracted trades people, heaps of suppliers, builds 600 homes per year & (I guess) a turnover of $60m pa.(and although a small % imagine what the net profit would be like…)
All this privately owned & run by a couple in their 40’s who bought the company 16 years ago when it was doing 16 homes pa.
With good strategies, hard work, good systems, support & suppliers they made it work. So you & I too could do this in property investing.
Sure look at everything with a critical eye (there are still a few con men out there), but don’t get hung up on a few minor details.
Thank God that Steve & other property investors he has introduced (like in “Tales in the Trenches”) have bothered to reveal the ins & outs of their strategies.
Forget the nay-sayers that do nothing….
Create WIN-WIN solutions to problems (in fact, look for problems, then create solutions for them).
And go out an’ get ’em!!!
Cheers,
David Paxton
New Homes Consultant
Sterling Homes
0412 853 395Hey Steve, do you read these???
I want to know how many properties Steve has now, since he wrote the book. I think he said 160 at one time on TV. I had an idea he was nearing 200, but may be wrong. Is he still able to continue as before?? The proof of the pudding etc etc.
Why are there so many people here who are wasting their time by saying “It’s too hard”?
I bought Steve’s book as I knew nothing about buying properties, and didn’t realise there was another “method” apart from negative gearing.
I don’t think Steve’s book has taught me everything I need to know, but it has given me a LOT of useful information, and I’m able to work out what I need to research.
It’s a brilliant starting point. If you expected 135 properties to fall into your lap when you finished reading it, then maybe you’re being just a little unrealistic.
I don’t normally post, as I’m only starting on my journey……but being overly critical is getting mundane.
Looking forward to the seminar…..
Cheers
DougHave handcuffs….will travel.
] hi guys, i am still a mewbie and know nothing, however no matter how hard it is to stick to the 11 second rule i know that in 10 years time there will be people in all areas that will wish they could have bought in 2003!!!
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