Can you help?

hi spi
like your style but you didn’t put the date or the link

here to help

Hey Steve,

Can you please give a quick explanation about how you convinvce banks to offer more loans.
Consider a person who has 3 positively geared properties, but they are having trouble finding a lending institution to finance a fourth.
What is the best way to convince a bank that this person is not “maxed out”?
Thanks alot for sharing your knowledge,
Tom.

Two of my friends have raised the issue of the falling birth rate in Australia and the impact that may have on the population and subsequent demand for residential property in 20 or so years time.
My position was that if you are watching the market closely you could downsize or restructure your portfolio to manage the risk of vacancy or that the market will adjust and we may end up with a larger market of tennants as the market situation might enable more single people to move out on their own. All the same, I look at the massive number of new houses being built and wonder if we might end up with an oversupply in the not too distant future.
I would welcome your thoughts.

Sharon

sebaker

Robin

there is plenty of info on this website but I believe “Investment Detector” is a good product that will give out a simple to understand summmary for all prospective properties that you are interested in.

Cheers
John

Dreaming about financial freedom is all about taking some action TODAY. I am building my own successfully PART TIME business whilst still working in a Bank. If you want to know more, PM or email ME.

Hi Steve,
I’v just finished reading your second book $1000 000 of property in 1 year, and I’m interested in when and where your next mass meeting is please.. PS the books were fantastic you have loads of useful info in both your books.

I don’t know if this will help you come up with a topic but I had my first attempt at doing what you suggest in your books and here is my experience. I managed to get an investor to put up the funds, purchased a 3 bedroom brick veneer for $282,500 in Seddon in VIC, renovated it for $35,000 and put it back on the market. Had one offer at $350k before auction which we did not accept but have not been able to get anymore since, including no bids at auction. We wanted $360-370k for it. I have read all your books including many other authors, thought I knew everything I needed to know before getting started. According to my assessment of the area I should have been able to get my asking price. All other places in Seddon are selling like hot cakes. Seddon’s median house price growth in the last 12 months has been 12-13%, so I have chosen the right area. Buyers are very complimentary about the house to the agent, and the only negative feedback the agent is getting is that the living areas are a bit small. I am puzzled by this as although they are not large they are not too small either. The only thing I can think of after several discussions with the agent is that I have underestimated buyers requirements for indoor/outdoor living i.e. the living areas don’t adjoin an outdoor entertaining space, the garage doubles as an outdoor entertaining space but is not directly connected to the living areas.

So, in actual practice, making a profit for the novice is not that easy. I chose the right suburb, street, house, investor to work with, had good tradespeople-was able to turn the project around in 8 weeks, had what I considered a good agent and perhaps the only mistake I’ve made is perhaps have chosen a house with the wrong layout – and now cannot find a buyer. I feel like it’s really hard, as I’ve put in so much effort, got most areas right but perhaps just one wrong which has had such enormous repercussions.

Hi Steve,

I have just finished reading 0 to 130 Properties in 3.5 Years. It was a good read and you certainly write in a way that is plainer to understand than most. Your advice on money handling is very clear and contains the same wisdom of “The Richest Man in Babylon” by George S. Clason (a must read on the human nature of Money handling).

My focus will be on the “currently facing” point of your request:

1 – Properties do not seem available in the rules you have outlined in developing a “Positive Cash Flow” investment. Balarat has properties worth Circa $150,000 with rents Circa $170. The figures in your book seem to be outdated (actually cross pollenated – 1990 house prices with 2002 rent returns??). What is the current situation in evaluating a house to be purchased for Positive Cash Flow as of the end of 2005 and beginning of 2006? Do you have any examples that meet your 11 second rule guidlines?

2 – The Aticle in the Age “domain.com” points out Australia’s status in House prices being over inflated by 52% compared to World standards – read:

http://www.domain.com.au/Public/Article.aspx?index=PropertyNews&id=1133829632402

How does this fit into the world of property investing for Australia?

I am in a really strong position to invest and am looking for a safe (though in reality nothing is truly safe, but that we must be diligent in understanding and thus minimising risks as best we can, just as you have written).

I look forward to reading your information in the near future

Yours Sincerely
VPSCOM

Victor P. Segnan

In order of importatnce:
1. Explosive Growth
2. Meteoric Growth
3. Incredible wealth.
Little help?
But seriously, I can see how to make money, and I am making money. I just want to know where the accelerator is and how do I flatten it.

Hello Steve,

I am responding to a few of the replies I have seen below about people wanting to invest outside of Australia and New Zealand.
I work here in the USA for a national company that has both residential and commercial properties that are available for foreign investors. A particular type of property I think people would find very interesting are properties called Tennant in Common or TIC properties. These are Class A properties such as shopping centers, multi family complexes etc that are 90% leased and above with top name clients. They work like this:

The key to TIC investments is fractional ownership. A group of investors is organized, or “sponsored,” under a TIC structure and the group is then able to acquire a large commercial property.
TIC investments are ideal for sophisticated investors tired of personal day-to-day property management, but still attracted to the benefits of real estate ownership. TIC investments share the full tax and wealth preservation benefits of sole-owned real estate, typically offer the same or better cash flow, and eliminate the headaches of day-to-day management. They also provide long-term investment appreciation potential.
TIC investors are directly on title to the property and are allowed to sell their interests to other TIC investors and to buyers outside of their TIC agreement. TIC agreements include other aspects of the IRS guidelines and allow all participants to benefit from a structured operational agreement.

Each co-owner has the same rights as an individual owner.
Fee-simple deed at closing
Title insurance coverage
Pro-rata share of all net monthly income, tax benefits, and appreciation.
Deferred capital gains taxes
Investments can be made to fit exact dollar amount exchange requirements.
Third-party property and asset management with reporting responsibilities to each co-owner, but without day-to-day hassles.
TIC participants typically receive monthly distribution checks and a full property operating statement each year, net to their fractional interest.
TIC ownership makes it economically feasible to acquire an ownership interest in multiple properties and decrease risk through diversification.

These properties are highly liquid and with high yields as they have almost full income producing clients already signed up.
They are also owned by large fortune 500 US companies so are fully protected and with solid named companies..no fly by nights.

Anyone interested to explore this further can contact me at

Sheyla Aslan
email: [email protected]
USA (Texas) 512 426-8852

Thanks !

Sheyla Aslan-Commercial Real Estate
[email protected]
512 426-8852

Hi Steve,
I am always seeking info about realestate and to this end your forum and newsletters are greatly apreciated.
I am always looking at smarter ways to make my dollars work in the real estate arena. A particular interest is the movement of rural median housing prices in the rural areas. Orange NSW is an area I have been investing in recently, however I relaise that the newsletter has to cover a broad range of people and areas. In general any information about the external environment of real estate is of great interest to me. keep up the good work you have been doing with the Newsletters.
Regards,
Dvid Henderson.

dejej