Hi there,
I’ve read Steve’s 0-130 book and is raring to start somewhere. Without the 11-sec rule (since it is next to impossible to find an IP that fits it), i’m lost in the sense that I don’t know how to determine whether a property is over or even undervalued.
I don’t have much capital at the moment but I’ll like to start somewhere.
Anyone have any clues or have something to say to me?
P.S I’m considering going for next year’s Masterclass in Brissie.
Welcome aboard.
I’m much in the same boat as yourself. Just finished reading the book. We obviously are keen to start, but how to make a start is the question that needs answered.
I have began to bury myself in everything ‘PI’ related. Each topic and subject I read, I find I am learning and getting closer to the required knowledge to make the right choice as to what to do next.
Make a list of what you know about ‘PI’. Write down everything you know. Then make a list of everything you are not 100% sure of. These areas are the areas that you need to take action in. You will find as you start to tick them off, your understanding of the ‘how’ to invest becomes clearer.
Good luck in your future I wish you all the success in the world.
P.S. Have never done the masterclass. However, it seems to get good reviews on here. Just mixing with like minded people can be a positive outcome on your future. I remember my Gran saying much the same when I was a kid, ‘cept she said “you lay down with dogs and you’ll get fleas” I like to think to think a 21st century version would be more like “rub shoulders with successful people and success will rub off on you”.
Maybe both of you should team up together.
If you don’t have that much capital, I perceive that you will have much trouble and headache trying to purchase your 1st property…but anything is possible.
Do you have a full-time job? How much capital do you have? Do you have any equity or security you can put up? Do you know a money partner?
To see if a property is over or undervalued, simply get a valuer evaluate it. Then check with the local real-estate agents on the prices of surrounding properties of similar atatus…then check through he agents, councils and on the Net what the median price is for properties in that area.
There are still many properties taht meet the 11 second guide.
Regards,
Geo.I’ve found a way to help you save and earn whilst not selling or delivering any product. If interested, drop me an email or PM me to find out how
Fiit, thanks for your opinions. Perhaps you like to share what you have found out about PI so far? And I totally agree with you on what you said. It is the environment that you’re in that is very important and that will shape/influence the way you are.
Geo, check your PM.
Anyone have any comments?
Hi FireCeaser,
Nice forum name [biggrin] I assume it relates to the quote “Render unto Ceasar etc…”
I digress, I can appreciate where you’re coming from, was there myself 6-months ago and I remember thinking ‘Gee I really don’t have a lot of money to splash around on courses, property valuations’ etc.
But case in point, one of the best investments I ever made was a $200 pest inspection on a duplex in Mt Isa… They found termites and so I pulled out of the deal.
I had signed up at $120K and when the termites were discovered the owner took it off the market to address the problem… I now notice it is back on the market at $140K I assume that the vendor is trying to recover his repair costs.
So now the first thing I do is get the pest report in as it is the cheapest of all to do, if it is satisfactory then I get the building report done and finally if needed an electrical inspection (older homes).
Hope this little bit of the jigsaw helps you see the bigger picture.
Cheers, Nobleone.
[xmas]
“Making mistakes is just another another tool for learning.”
Guys,
Welcome!
Nobleone, I like the post…[biggrin]
But seriously, if you’re looking for the big “secret” of how to invest smartly following Steve’s approach then you’ll be in for a long ride. The big secret really is that there is no “one big secret”, but a lot of small techniques and tips for making more informed and wise investment decisions.
There are a lot more wiser heads in this forum than me, but I might share a few of my little pearls of wisdom for a newbie or two:
1.) Think twice, act once (a bit like measure twice and cut once): i.e. Don’t jump until you’ve done your homework and know it is a good investment.
2.) Do your homework [biggrin]. You’ve now read Steve’s first book which is a great read, but it is just the beginning of a long journey of learning. I would recommend you read Steve’s second book, and maybe some others like Peter Spann and Jan Somers.
3.) Make a plan. This seems obviuous, but have you decided what sort of property(ies) you want, how much you are willing to invest, how much you want to make, by when etc etc. Until you have the raw bones of a plan you won’t know how to flesh it out with a specific property approach.
4.) Execute the plan. Once you’ve got the plan in place post it on this forum. The forumites will be much happier responding to specific “How to” questions around your well researched plan. Don’t get me wrong, your first post is a good one, it shows your head is in the right place and your thinking investments!
But above all else, just sit back and enjoy the ride. Read every thread in this forum. Check back regularly and just ride that “Active topics” link under Forum Boards. There’s no burning platform to jump right now due to current RE market dynamics so this is a GREAT TIME to be learning as much as you can.
Again, welcome!
Cheers,
Michael.FireCeasar,
I agree 100% with what Michael just said… Don’t rush into the current market without doing your homework… TWICE.
Cheers, Nobleone [xmas]
“Making mistakes is just another another tool for learning.”
Michael and NobleOne, thanks for your contributions.
And what do you guys essentially mean when you say “do your homework twice”? (Assuming I’m already pretty confident and sure about some deal)
FireCaeser,
The market conditions have changed since Steve wrote his first book. I think even he would now advocate caution before applying some of the principles outlined in that book. His second book (see links in my first post above) is more up to the minute, and might be a prudent read before you progress down a particular investment path.
Read the “Investor Strategies” section on the left hand side of the forum here. It will explain the fundamental differences between a “buy and hold” and a “+ve cash flow” approach to real estate investment.
Before you act you should be aware of the pros and cons of each approach and then select the one that best suits your personal circumstances. Once you understand this you can then formulate a plan and ask for assistance from the forumites in executing your plan.
Please give us an idea of your personal circumstances and your justification for selecting the investment plan you have as a first step. We can then discuss the wisdom of your approach and then aid you in its execution.
Cheers,
Michael.
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