Questions…

Hi Anita,

Thanks for your post and welcome to the community!

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1. In whose name did you buy the properties?

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In the name of the entity which we set up to contropl our property investments. I believe that owning assets in your own name is not the best idea as you can be sued and the lot is on the line. Instead Dave and I created a structure where we control our wealth without owning it in our own names.

In fact, to explain this concept further required me to create a product on the issue. It’s called Wealth Guardian.

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2. Did you have to get financing done for each property separately? Did you choose one bank & stick to it for all property financing? Did you have to take a bank in the same city where you bought properties or a bank in Melbourne dealt with all your financing? Could you please tell me more about this financing aspect?

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At the start we sought finance on a property by property basis. Later, we managed to obtain a block of funding. Thesedays, we’re lucky in that we have a track record and have banks that are willing to be more flexible and continue to lend, provided we continue to show good results.

We have only ever borrowed 80%, and all loans (except commercial) are on 25 year P&I terms. I think it is necessary, once you get into debt, to also have a plan to get out of debt too.

In the course of our investing we have used a multitude of lenders. I don’t discriminate… if someone wants to lend me money I’m open to the idea! []

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3. Did you take an interest only loan or principal & interest loan for properties?

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With the exception of commercial loans, where the term is usually 10 years and to do P&I would mean -ve cashflow, our loans are P&I. I wrote about this recently in a newsletter. Check the back issues.

Hope you enjoyed the book and look forward to seeing more of you on the forums.

Bye for now.

Steve McKnight

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Remember that success comes from doing things differently.
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