I recently read ‘$1,000,000 of property in one year’ by Steve McKnight, which I did enjoy as it had the majority of the book devoted to the ‘why’ rather than the ‘how’,which is the sign of a good investing book.
Anyway, the figures for the MAP are given as thus:
Property acquired at cost : $10,461,515
Property acquired at est Market Value : $12,646,325
Est (gross) annual positive cashflow : $922,024
Number of deals bought : 86My question is pretty simple, either for those in the program or those familiar with it : does the annual positive cashflow (gross) mean the gross cashflow coming in from the properties excluding interest and other outgoings, or is that gross of interest and other outgoings.
If it is the second, (ie gross cashflow in before interest + outgoings) then does anyone know what the NET cashflow on the total portfolio was?
I guess it isn’t the net value because it is an average yield of about 9% across all properties would be what you would expect, but I’m prepared to be surprised if otherwise.
It makes a difference to me, because the gross and net figures mean the difference between having found financial freedom, and having started down the road – not to take anything away from the participants as the ones who finished did a very good job of it.
And does anyone know what has become of any of the participants? Have any gone on to kick even bigger goals?
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We all need somewhere to live – but do we all need a CBD apartment?
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