- Originally posted by markpatrick:
While I don`t think all seminars are scams I can`t see how they justify what they charge for one, two or three days posturing/lecturing.
They would have to PAY ME $3000 to sit there for this period of time and listen to so called experts.
I have been studying R/E for 20 yrs and while not investing heavily till the last few years much of the stuff when thought through is smoke and mirrors, or less than ethical for many and virtually unattainable for most imo.
If these guys make so much money in R/E why do they run seminars and sell books?, or why charge so much if you are trying to help people, I don`t buy that one.
You can be rich you can be successful, whether seminars will help you is debatable but one thing is for sure if you think it`s easy to start from nil in R/E and become financially free you are dreaming or being mislead.[buz2]gr, thanks for reminding me of the original point of the post. I think we all got off track there (the entertaining side topic notwithstanding).
[anxious]
Bob
The idea of living on equity sheets home a bit more if you have properties with high capital gains year in year out and very low rental yields. There are some areas in Sydney with this type of capital/income mix.
Living on equity is possible with even a small portffolio (as long as the properties have consistently high capital growth).
There is a living on equity calculator posted on Somersoft forums by James Gatherum-Goss. The calculator does the actuarial work for you.
Go to 8th post in this thread
http://www.somersoft.com/forums/showthread.php?t=21834&page=1Cheers Ajax
I am amazed as to the responses that this post has received in relation to property development and seminars on the subject. There are some very harsh comments, all of which are more than likely unjustified. I don't know Mike Yardney, nor have I attended his seminars but if you think spending $3500 on comprehensive information on prop development is a waste of money then you shouldn't even contemplate property development. You will spend at least that much getting a lawyer to read through a JV document should you end up performing a development with partners.
My intention here is not to be read to previous posts but to make you must realise that property development entails many risks and requires a lot of knowledge of many factors to aim to control the problems that arise during a development. You can read books and get advice from individuals in forums but you will only learn by actually doing it. I would highly recommend anybody contemplating becoming involved in a development to undertake the services of a business such as Metropole's. You will be able to learn a lot from the process and see how problems are managed. And if you want to undertake a development of more than three units or villas for the first time I doubt there will be any bank in Australia that will lend you the money unless you have a 50% deposit. Banks want equity plus project experience before they lend.
When done properly property development will provide you with IP's at wholesale prices, giving you instant equity or a cash gain at sale. If the market falls during the timeframe of a development it will assist in buffering your negative equity or possible allow you to break even. Just remember that no one can guarantee the success of a development due to so many external factors and influences. You make a decision on the path you wish to follow and take responsibility for it.
In response to the previous thread, there is an Equity Harvesting spreadsheet on chapter 12 of the ProDev Network website (under the Investors link). Have a read and follow the spreadsheets through to see what the power of compound growth can do!
Hi Brad,
You have the term EQUITY HARVESTING as a trademark on your site?
Thanks for the link to your site, having a browse now
Equity Harvesting Google results:
Hi Brad, I'm hoping to start on a project of 8-12 townhouses in about 3 years time on a block I already have. My bank manager said to give him a call when I'm ready, finance won't be a problem, and I'll have to sell them off-the-plan. I would like to sell 1/2 and keep the rest. Using your spreadsheet I worked out it can be done. Do you think selling off-the-plan is a good option, I'm not that keen on the idea of a JV. Regards, Linda
By the way, I attended a Seminar on Friday at The Property Expo where Michael Yardney was a speaker. I think his advice was good and he was an honest character.
redwing wrote:Hi Brad,You have the term EQUITY HARVESTING as a trademark on your site?
Thanks for the link to your site, having a browse now
Equity Harvesting Google results:
Hi Redwing – yes I do have a chapter under the Investors section of ProDev dedicated to Equity Harvesting and there is a spreadsheet available to download to enter your portfolio info into and see how the results may affect your borrowing capacity. I placed a TM symbol next to the name with the intention of trademarking the name, not realising how many others are actually using it!! I think I will need to rename it to make it slightly different (aka – catchy
) I put up the harvesting concept to many users of another forum about 5-6 years ago and about 90% of them shot me down in flames with their comments. How shortsighted they were!Cheers
Brad Samers
ProDev Network
http://www.prodev.com.aumillions wrote:Hi Brad, I'm hoping to start on a project of 8-12 townhouses in about 3 years time on a block I already have. My bank manager said to give him a call when I'm ready, finance won't be a problem, and I'll have to sell them off-the-plan. I would like to sell 1/2 and keep the rest. Using your spreadsheet I worked out it can be done. Do you think selling off-the-plan is a good option, I'm not that keen on the idea of a JV. Regards, LindaHi Linda,
Why 8-12 t/houses? Are you saying that the sites size, zoning and plot ratio will allow you to have 12 t/houses, but 8 larger ones will possibly be a more viable solution? You say you aren't that keen on a JV but to maximise your return it may end up being the best way to go should you not be able to raise enough capital to fund the entire project.
In regards to selling half of the t/houses off-the-plan, you will more than likely find that the lender will make it a condition that you have to sell a certain percentage (probably 50%) off-the-plan in order to gain complete funding of the project, unless you have plenty of equity in the site and/or elsewhere. You may choose to sell everything off-the-plan but you then stand to loose out on any potential growth of the properties during the projects construction. You also have no buffer should you end up having a large blow out on building/marketing costs during the construction phase. You need to be confident of the market and use reliable builders to give your project every chance of success. This is where a JV using an experienced developer/builder is worthwhile.
millions wrote:By the way, I attended a Seminar on Friday at The Property Expo where Michael Yardney was a speaker. I think his advice was good and he was an honest character.I was there on Friday also Linda and thought Michael presented well. He is a wealth of knowledge.
Hi Brad, the zoning hasn't changed yet, the Town Planner at the local council suggested 12 – 16 townhouses. I'm being conservative until the zoning changes. Linda
Hi, yes, there are people who have done it & yes, even at 80%LVR, they're still slightly -ve.
This is what I did & receiving plenty of put downs from family & friends.
Purchased property cost $260K + $30K other costs.
2 years on, 4 houses almost at completion. Total costs inclusive interest = $920000 i.e each house cost $240K
The value is around $300000 each. Expected rental $280 – $300 pw
I think everyone can do the sums from here on.
I do have a massive problem. I have about $150-180K of equity but a large loan.
For those interested, this is my 1st project which I jumped into without knowing anything. I wasn't even aware of this forum when I bought it. The original costing was around $200k to build each house. Note the $40K extra making it $120K in total that I have to find from somewhere?
Believe Michael Yardney, the risks are substantial & if I had known of them, nothing would induce me to start.
But like the fire walk, I'm already walking on fire what can I do but walk if possible run to the end?
If anyone can help me with funding, I'd love to hear from you,
good luck to everyone,
Kum Yun
) I put up the harvesting concept to many users of another forum about 5-6 years ago and about 90% of them shot me down in flames with their comments. How shortsighted they were!
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