Aussie said
“if you think there is nothing wrong with a system whereby millions of dollars of assets can be purchased based on a subjective and manipluated notion of ‘valuation’ then i suggest you think again”All Spann is saying is do your homework on valuations to make it easier for valuers. Valuers are professionals and need to justify their valuations. All your doing is making it easier for the valuer to get a valuation you like.
I know now equity is just paper funds. I have heaps of equity and neutral servicibilty. I expect prices to fall further. So I am waiting to purchase a few years down the track.
yack – what does it say about the valuations industry that ‘I’ have to make there job easier for them. i thought they were the experts!!!!!!!
lets be honest that making things EASIER for the valuers is another wayt of saying ‘get the best valuation possible’. Also let the valuer know who butters his bread….so if you have enough power, and the valuers next holiday is riding on it…you have a licence to print money or equity which is the same thing….
dubious indeed. henry kayes empire was built on this…
im not having a go at the baisc strategy of buying cheap, adding value, making a margin and doing something with the margin. its the shortcuts that worry me….its the shortcuts he advocates, with his wealthy friend to prove the point, and the agent lady whos s…t doesnt stink, that causes concern.
no stories like that in steves book. plus all steves characters are so real they wrote half the book themselves. no stories ending with ‘betty and barry – wollongong’.
ive been ringing every betty and barry from wollongong to try and get varification of there stories without any luck sofar. ill let you know how i go.
Aussierogue,
I’ve got to agree that Peter Spann’s books are a little bit simplistic??? I posted a concern that I’d like to read some more mechanics and not mantra and was directed to Peter Spann so I’m a little surprised to find it so fluffy. His books do read a little bit like Kiyosaki which was a bit hard to take for me. They’re all a little bit patronising and condescending with fake characters invented to make the message more palatable. I actually don’t want to read about other people’s success or personal life-journey anecdotes. Just give me the facts! I’d like a step by step how-to guide with a few case studies and no mythical mentors.
But, I don’t disregard the message just because I don’t like the style of the messenger.
I haven’t read Steve’s books but a flick through shows they look really solid. But, my personal approach is more aligned to neutral/-ve gearing.
Why do these guys always have to wrap their information in so much cotton wool and feel-good rubbish? If I want fiction I’ll read Tolkien, this is business and I want a text book.
Cheers,
Michael.hi michael. i agree with you totally – i too learnt alot from his book and must admit its very motivating.
ther reason im having a go is that some on the forum have been comparing Spanns methods to Steves methods, and sofar the debate has been very one sided. surprisingly so…
cheers
I have referred to the Peter Spann Book alot in my posts.
I agree with his strategy v the steve mcknight approach.
I believe (and its only me) Steves success was a product of the property cycle that he invested. He bought regional properties that had not increased in value for years. As the yield was good he was able to purchase many properties. Then capital growth rippled from the cities to the regional areas and he was able to take advantage of that. Its the capital growth that has made him successful.
Peter Spann is growth oriented. Buy quality undervalued surburban properties that require a renovation. Renovate them for some sweat equity. Rents will increase and your servicibility will improve. Over time they increase in value and rents thereby they become neutral. Jan Somers also advocates this.
If your investing in property would you rather regional or properties in a major city.
I would rather have $50k growth on $1m of surburban property than $25k positive cash flow on regional properties.
If you give it a long term perspective the Peter Spann strategy is better.
Yack,
to add my 2 cents to this :
Rural areas – Do have growth, if you are careful / good at the time you buy…
Valuations – yes, we would have thought that as they were the “experts” they would earn their keep and do some homework….. BUT, as we have found recently, on many occassions they don’t even bother to LOOK at the property !! or at best do a drive by…….
Comparing Steve & Peter’s strategies is like comparing apples and oranges…. sure they are both fruits, but the taste is different !!! [blush2]
We are presently doing a mixture of both, and that is doing us nicely… wraps and/or cashflow are nice, but there is substantially more in building/creating equity… it depends on your goals I guess…. We now have the cashflow…..what we want now, is to build capital / equity……
Cheers
Scott
You may know the cost of everything…. but what about the value ????
Peter Spann had to have a backer,to do as his book saids.I tried to do the same years ago. The banks all knock the scheme back. You can do it two or three times, but that’s it.
You must remember, that Peter Spann also users his follower’s money to assist his cause.
He invites them to form partnerships and he even has managed funds and share portfolios,to create money making avenues. This of course comes at a cost,to his supporters.bruham.
Pelican
I agree with your comments.
Bruham
I am not sure what your getting at. But Spann does acknowledge that you do need to generate other income to keep going and there will be times when you need to wait for market growth so your rents etc go up before you can make your next purchase.
Like Steve I suppose Spann does have other avenues of generating an income.
Bruham,
I think you will find on Peter’s postings here and on somersoft forums. He mentiond openly that Shares / options etc, provides him with income and added $$$ for more properties…..
So, he’s advocating alternate income sources to build an empire….
Fair enough….
It’s been interesting to note that there has been no question of Steve about his multiple changes in direction….. e.g. wraps etc..
On the other side of that comment though, I guess in today’s climate we have to be flexible to be able to adapt…..
You may know the cost of everything…. but what about the value ????
Bruham,
With much respect – forget what my moniker may tell you – I am far from simple and can tell the difference between non-fiction and fairy tales. I write both for a living and that’s how I afford my investments.
But for someone who grew up with little or no financial education Kyosaki was a good place to start – Peter Spann also has a rich friend as do I and many others – who cares as long as you learned something right?
P
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