My advice would be to read read read (and perhaps listen as well)
I started with Margarat Lomas’s “making your money last as long as you do”.
Then Steves 130 properties book.
Then the 1mil in one year book (came with fasttrack2 on cd)
and just this week I read Rich Dad Poor Dad.In just a few days I’ve realised that spending money on computer games and music and other depreciating things (like expensive Italian Motorbikes) is a poor option compared to putting extra into paying down my 25k of personal debt.
My attitude has totally changed from enjoying the present at the expense of the future to saving now so I can enjoy my future.
Originally posted by SteveMcKnight:Hi,
I thought I’d start up a thread that summarises the collective knowledge of this vast forum.
Don’t worry so much about the theory, perhaps post a personal experience about an aspect to property investing that you wish you knew about prior to beginning.
Here’s an example to get us started:
That you don’t need to know it all.
When I lack experience, most of my confidence comes from me trying to understand a topic inside out.
However, when it comes to investing, while a solid education in the basics is very, very important, the best way to learn is in the field.
This is because experience adds a context to the information you will learn by reading books, going to seminars etc.
So, my tip would be to be at ease with your investing by looking at it as a journey – whereas trying to know everything upfront will only end in confusion.
In summary, the better way to learn is ‘experience before education’… that is – gain a little bit of experience and then match it with a little bit of education in order to support your learning experience.
My investing journey leads me to believe that there will always be more to learn.
Please, post your own tip or insight and let’s build a really useful database of experiences.
Regards,
Steve McKnight
My biggest learning curve in investing has been fear of making a serious mistake and procrastination.
However I have learned that both are necessary tools to help you move forward not hold you back. I have made lots of mistakes and lots of good decisions in investing.But the experience has been priceless.
I am about to embark on another investment adventure, and its exciting.
How did I overcome most of the fear and procrastination by talking about my plans to the right people who could help me. (PS That took a long time to learn)
Kind regards
Marianne
Marianne Wallis
Appologies if they have already been covered:
-Don’t forget to spend time with your family, it’ easy to get carried away.
-Research, research and research.
– The more you learn, the more you will realise how much MORE there is to learn.
-Ugly ducklings are goldmines – less competition and easier to get bargains. Focus on ones that are structuraly sound and cosmetically challenged.
-Listen to friends and relatives but filter out the fear – you may still pick up something you haven’t considered but don’t let THEIR fear stop you acting on a well researched idea.
-Land appreciates, houses do not (generally, unless a major cost of construction rise is underway, ie inflation).
-Don’t be afraid to make low offers.
– set monetary limits and STICK to them – don’t get emotionally involved unless it is your PPOR and even then set limits.
– If your time constrained, and are going to look in person in an area, line up lots of houses to look at and hopefully find several to buy and go after them in order of preference. Can save heaps of time going back to find others if you can’t get the first deal your after.
-Do your calculations – personally made a mistake that cost me 000’s in tax because I was buying for gains and not considering rental yield several years ago.
– Remember, even though you can build relationships, agents work for the VENDOR.Money doesn’t buy happiness, but it sure as hell mitigates the a lot of things that make you miserable.
I wish I had more to share, but for what it’s worth…
Your best learning is done while listening. So while it is important to ask questions, it is more important to seek answers.
My advise is to speak to everyone, you’ll be surprised where wisdom can come from.
I would also say that not investing is sometimes as financially benefitial as investing as education and due diligence is investing in time and sometimes without the use of money.AXJ
One thing that has caught me out on two occassions is “wet areas” i.e. bathrooms, laundries, kitchens.
Always throughly inspect these areas as they mean money, this could include crawling under the house to see if there are any water stains or damamge, walls backing on to the bathroom i.e. wardrobes, getting in to attics. We all know things can be fixed but the cost of doing it can be taken off the price. Tiles can be misleading if they have been applied incorrectly, one place I looked at they were stuck with silicon and the house was only 2 years old, the silicon had come away and in the vanity was water damage from water getting in behind the tiles – be vigilant in these areas. If you are doin renos in these sorts of areas make sure there are no shortcuts taken otherwise they will come back to haunt….
GJB68
Some excellent advice from Steve – a little theory, a little practical, then a little more theory, and so on..
In addition to that I’d suggest that you can’t learn less. As a newbie to investing I experienced some spectacular early success, tripling my net worth in 12 months. Then I got a little adventurous and wiped myself out, and I’ve spent the last 6 months digging myself out debt. Now I’m back to square one, I’m ready to get back in the game, and I feel a lot richer for the experience.
Best regards and happy investing to all.
Ben.
benjamin hodges
property investigator
0414 922 846Hello all,
I am not sure I am experienced enough to start offering tips in property investments.
One thing I have found to help me in the past is a little advice from Sara Hendersen: if the tunnel you are hurtling down goes all hazy and dark and you beging to lose your way, don’t come to a sqreaching holt and wait for somebody to turn on the light at the end of the tunnel! Stride down there and light the thing yourself!
Another uplifting thought I have found helpful at times is to never, never, give up. Sucess is JUST outside your grasp so stretch further and grab it!
Take steps in strides that best suit you and don’t forget to acknowledge yourself for your little sucesses as well as your bigger ones.
Keep smiling!
I think that will do for now.[biggrin]
DSVR
My offer, from personal experience when buying my first investment property, is to Just Do It. It was easy to let fear stop me and I am glad I pushed through it. I made a few mistakes, but I got lots more things right. The next time was so much easier.
Dale
Dale Fairbairn
Be constantly asking the question, “How will this get me to my goal”
Planning and deciding what is a good investment and what is not, becomes easy when you are clear on your goals. It gives you direction, clarity and motivation. Be clear on the goal first.
MarkyMark
I use the same real estate agent in each area the same solicitor for every deal. I tell the real estate agent how much money I have what return i am looking for He knows I am dealing only with him. i have also added a broker to my team who already has my financials and understands what i have done. It his job to find the best financial deal for me. all 3 advisers are in contact with each other they complete my deals while i work to fund the next deal. this year we have bought a commercial building, in the process of finalizing the sale of one house and have signed a contract for another i try to buy property that is either a straight investment or something I can use in a differant way. i have bought the last house to move into and also to run my professional office from to save paying a landlord office rent while paying off my mortgage.I try to buy realestate that can be utilzed for something else if something goes wrong. for instance the commercial building i have bought could also be used for a home based office or i could build a duplex there instead if the market changes I am not interested in living in a house debt free I would rather have 5 houses with debt
MerrianneOriginally posted by SteveMcKnight:Hi,
I thought I’d start up a thread that summarises the collective knowledge of this vast forum.
Don’t worry so much about the theory, perhaps post a personal experience about an aspect to property investing that you wish you knew about prior to beginning.
Here’s an example to get us started:
That you don’t need to know it all.
When I lack experience, most of my confidence comes from me trying to understand a topic inside out.
However, when it comes to investing, while a solid education in the basics is very, very important, the best way to learn is in the field.
This is because experience adds a context to the information you will learn by reading books, going to seminars etc.
So, my tip would be to be at ease with your investing by looking at it as a journey – whereas trying to know everything upfront will only end in confusion.
In summary, the better way to learn is ‘experience before education’… that is – gain a little bit of experience and then match it with a little bit of education in order to support your learning experience.
My investing journey leads me to believe that there will always be more to learn.
Please, post your own tip or insight and let’s build a really useful database of experiences.
Regards,
Steve McKnight
Hi Steve
In my experience you don’t have to be a high earner to invest in property just as long as you can cover the expenses. So do the maths, there are still bargains to be had! I was a single mum when I bought my investment property and I had never been in any one job for much more than a year. My work history has been very insecure but I now have 6 properties so it can be done. Once the equity flows it makes things easier for getting loans and you only need to be in employment for 6 months to qualify for a loan. The first investment is the hardest fearwise but I always thought if I get into difficulties then just sell – but I must say I have never looked back!
Anita WAI don’t know this is Property investing advice, but it is investing advice!
For me it appears that my greatest mistakes are the most valuable things that occur in my investing journey.
I once loaned my then partner’s substantial amount of money (which was under a mortgage in his name only), to this day I have not seen a cent of this, his parents have made no plans to repay it. Ultimately I have written this money off and moved on. However I learnt a lot from this (make sure I am identified appropriately in the mortgage, loan on sensible business terms irrelevant of who you are loaning too, don’t help those that can help themselves….etc)
So look at your mistakes as lessons to learn from and life would be dull without them!
Cymber
My Tip would have to be ‘Do Not Give Up’ the only difference between you and successful investors is they kept looking. For every failed deal you experiance look at it as a posative as you are one step closer to a successful deal.
Hi all.
I decided to spend 15 minutes per week reading about finances. This grew to an hour or more and has become part of my daily routine.
Take time to smell the roses.
Each and every day write down your personal and finacial goal/s for the day.Read it aloud to yourself.
Take time…………………….
Look for a willing mentor to bounce ideas off.
Research,research,research then buy inside a time frame.
Have fun!
Regards,
peleTake time to smell the roses.
Life is a journey, a rollercoaster ride of highs and lows.
The key in any aspect of life is to remain focused, positive and believe in yourself because you never know when the next opportunity will present itself, and if we allow ourselves to get wrapped up in the low times our eyes may be shut to those opening doors.
After many learning experiences(aka failed attempts) of businesses, multilevel marketing, investing in my own inventions, I finally discovered property investment. For what seemed an eternity I read, attended seminars, lost money, but in all I took action and learnt from the setbacks. At 32, with wife and three kids, a dead end job and no savings an opportunity presented itself from a most unlikey source in the form of a joint venture. We’re now living in and renovating our first property with the goal of selling for profit, though after just finishing one of Steve’s books TODAY I’m thinking a WRAP may be the go.
So see everything as a learning experience and stay focused on your goals. Always take action and believe in yourself.
Cheers
Alex
A very nervous response – hoping this is not too basic!!
When you do your research, remember to factor in the time of settlement with rental vacancy cycles. If you are entering the cycle at a low – ripper , go for it and rent away. If you are entering in a higher point, take a lower rent to start, or do the reno, clean up, you have been putting off to attract the ideal tenant when you are finished and the cycle has come around again??!! (Something I did not figure on in my excitement to “get into the market”!!)
Tip two – learn from others mistakes!!! It is so much less painful – we don’t all have to be martyrs!
Hurroo!
Jenmy tip is to invest in smaller communities not to small but communities that are growing at a steady rate, i invested in a property in the mid north coast, within 4 years it has more than doubled in value and the rent im recieving more than covers the repayments on my loan,strata and rates.
jdavis
Jeez, us giving just one good tip…this could be dangerous.. Seriously, we got out of our “comfort zone”, the world doesn’t owe us anything, but we owe it to ourselves to get off our bums and have a go… We had a go in property because it for us, gives us maximum leverage on little contribution,… the bit of money we had went a long way to us getting 3 properties.[Working on more..]… we looked, listened, learned and acted….How did we go, not really one tip is it?
Sam
My first post but here goes.
Due to obtaining a different rental return from the selling agent (230 – 250 per week) from that which the Property Manager gave me two days AFTER my offer had been accepted (180 – 200 max), I had my application for finance redone and was no longer accepted. Fortunately I had a “subject to finmance” clause and was able to get out of the contract.
Lesson – get all estimates in wrting BEFORE putting in an offer
In future I will arrange a Property Manager BEFORE I do any offers and obtain a written Property manager estimate also before I put in an offer..
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