Hi Steve,
I have just read your book and have formed a syndicate with three of my kids, my mum & dad, a brother and my wife & I.
This is six equal shares putting in an initial $6000 plus $125 per week each. I.E. $36000 initial cash plus $750 per week.
We have all read the book and are raring to go!!
Last night however I read one of your responses on another topic, to a young guy at home on $38000 PA. You advised him to start with two properties in the first year and to build from there.
This seems at odds with the strategy and title of your book. Are you saying that you have to have LOTS of money to make your strategey work or am I missing something.
Looking forward to your response and would also like your opinion on what our syndicate could realistically expect with the funds mentioned above.
Thanks,
Steve O’DonoghueHi Steve D
I am so impressed that so many of your family members were keen to be involved, ours think we are tossa’s that are going to fall flat on our fat a***s.
As for Steve’s response, I personally find it hard telling some people to just do it, because you don’t know the background or circumstances etc … and in this guys case I recall he was a young bloke on a low income without his own home or other property as a leverage point. I think Steve was being modest by not encouraging a young guy who may or may not have much financial nouce, you know the kind you get from those dumb mistakes we all make, to make a huge leap into something he might not be ready for or able to manage.
I always think horses for courses, and your group sound like they are in a different situation with many points of support, finance, and assistance. Look deeper into some situation and responses, I guess I understand you are waiting to find out what the catch is! And as soon as there might be one, doubt creeps in. Well take it from me a mother of a 2 year old, if you hadn’t worked it out I sell ENJO through party plan part time and my hubby and I are working on our portfolio, it is different to yours, the young guys and definately different to Steve’s but ultimately we all have the same goal financial freedom.
So my advice to your group is be sure you all have the same goal, expectations, enthusiasm, motivation and faith in each other. Set your goals by working out what you need to acheive and how you will acheive that.
Good luck to the amazing O’Donoghue 6[^]
Cheers
Leigh K[
]Carve your own path and lead the way …
Hi,
Well, it took Dave and I over six months to do our first few deals – and I was doing it more than part time but less than full time (let’s call it 3/4 time!).
In truth, your results can be better or worse than what I achieved based on the resources you want to allocate to getting the task done.
Best wishes,
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
Thanks for the encouragement Leigh
Thanks for the reply Steve. You mentioned that it alldepends on allocated resources as to how well we will go. As a group we have made a commitment, to have three people (myself, my son who works for me and my dad who is retired) actively working on sourcing new properties. An equivalent of one person full time is the goal. The financial commitment has already been made. I know it’s crystal ball gazing to an extent. But as agroup with them resources, can we expect to do similat to yourself and Dave??
Also, we would like to know if you are going to be doing any seminars in WA. All lined up and ready to attend if you do [8D]
Regards,
Steve OWOW! With a potential 6 incomes you should be able to do very well. I had trouble with the fact of how an ordinary person could do what Steve has done until I read he actually had 4 incomes (Dave, Steve and their wives) of which two (what I would imagine to be rather large incomes, being accountants) were purely dedicated to financing property. On top of that there was income from two internet based businesses (one of which is this one which was apparently started early on in 1999). Most couples would only have access to two incomes, so I would assume you could only manage a lot less than Steve, depending on how much time you can allocate to sourcing the properties and organising finance etc. Plus it would take you a fair bit longer between deals to save up the next deposit.
On top of that there is the question as to what you would be comfortable with. Steve has obviously done a lot of “wraps”, but if you are not comfortable with that it could take you longer again.Hi Stevod
Steve and Dave are a great inspiration to all of us however you have to set your own goals objectives and strategies.
130 properties producing an income of approx $200,000 PA is about $30 dollars/week per property.
We are aiming for a similar outcome but from possibly fewer properties.
Some people see things as they are and ask why? others see things that never were and say WHY NOT!
Regards
G’day Steve O’…
Congratulations on your team committment.
And the last word in that sentence is what it’s all about.Whilst my view is that the R/E Mkt. has peaked that is not to say that there are not opportunities to be had by some….who can committ to making it a fulltime occupation
I like the idea of your joint cashflow idea and of course splitting the workload 3 ways.
With 30+ years R/E and Finance behind me, my advice if you are interested, is to change what you buy. In other words improve what you have bought… that can be by way of renovate(if u can do it yourself or manage others)change title to Strata, change purpose clause if possible.
If you wish to change to strata from Company Title or from one type of purpose clause to another….simply offer to buy “subject to Council Approval”…This also gives you the added advantage of having a delayed settlement.
It doesn’t matter if you buy just one property or 130 propperties…or somewhere in between. Invest to the point that you can sleep at night and you will if you are within your comfort zone.
I suggest to you that your comfort zone will extend it’s boundaries as you do each deal. The market will always be there so you don’t have to try and do it in 5 minites.In particular todays market considering this latest Up cycle is already 7 years in the making.
I wish your team well.
Billfromoz
Bill O’Mara
steve od
you should go to the sydney or melbourne one….flights are relatively cheap these days aren’t they? I went down from syd to melbourne with my dad to the last APIM one and it was great.!
Specially more fun to go to it in a different city and stay in a hoey and eat out and stuff.cheers-
MiniHi Mini – I too enjoy going to different cities.
But if you stay a while all those hotels and meals really sap into the money tree.
Cheap backpackers near a supermarket, only one (substantial) meal out a day and BYO crockery/cultery for the other two worked for me.
And different libraries and bookshops to browse the PI books!
Peter
Congratulations to Steve on his fine book. With reference to the 11 second rule and the division factor of 2 – I find from my own experience that there are too many opportunities at that level and to narrow down the better investments I use a division factor of 3 or 4 – even 5 if you can get away with it. You can get where you are going just so much faster. Note that all my investments under this format are in rural New Zealand. So you make an initial good buy hence giving yourself Capital Gain at the start, then all you need be concerned about is the yield which is usually extremely favourable. People wanting to get ahead in a hurry, investment wise, could do well to study my theorem which I have found to work in practice.Good luck, Peter (Stamps)
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