Hello Everyone!

Hi Shane,
welcome,
what are your thoughts on the book?

hi smj, am interested in reading the book but feel that it might just confuse me and really cement my relative poverty..does the book have any advice on purchasing property when you have debts??

shane mickey jay wrote:

Thanks for the welcome Marc.

At the moment i'm just under half way through the book.

Chapter 11 "The positive Cashflow Model For Property Success" (I'm excited to read this part, hence why i left it for when i'm fresh and can suck in all the information from this chapter.)

So far i have been very impressed with all that i have read. It's given me an insight on alot of things that i had no clue of before reading.

To be honest, when i got the book, i thought "hmm maybe i wont undretstand anything i'm reading" after all, i have no exp or any knowledge of anything in the industry. However, i thought to myself that i had to start somewhere if it was something i was passionate about and really keen on learning.

The book right off the bat put me at ease and as steve explained that you didn't need to know the ins and outs of porperty inverstment and taxation.

I love the detail of the book, the easy to ready style Steve writes in relating it all to Steves Exp really helps me to understand what's going on and where he's coming from.  The blunt truths, the humble beginings and the statistics are all really useful.

So all in all at the half way mark i'm very pleased.

I feel that after reading some areas my brain was stretched and i don't fully understand ALL concepts but i guess that's only natural and i will pick that up the more i read and the more i get to know the industry a little better.

Keen to put Steves words into action in the next 6 – 8 months. (hopefully sooner)

You read the book Marc? What did you think of it? Also i'm yet to read the 1,000,000 in Popertry in On Year.

I read the book several years ago and loved it. Still have it stored away back in Aus.
With all due respect to Steve, I think the book is outdated in today's market.
It is very hard to buy really cheap positive cashflow properties in an area with decent cap growth. You can still buy the really cheap properties (less than $100k) but the areas are a bit crappy.

Keep reading it, and read as many others you can find and get a good well rounded knowledge of what's involved.

Look at these authors as well for property stuff;

Noel Whittaker,
Margaret Lomas
Jan Somers
Monique Wakelin
Michael Yardney
John Fitzgerald
Neil Jenman
Terry Ryder
Peter Spann

Also, read these for mindset and general investor thinking;

Robert Kiyosaki (he has about 5-6 books)
John Burley
Dolf De Roos
"Think and Grow Rich"
"The Millionaire Next Door"
"The Richest Man in Babylon"

I'd also suggest signing up for as many free property investing newsletters as you can – yes, they contain marketing material, but they also do contain useful information, or even if they contain information you disagree with, it forces you to clarify your reasoning for your opinions.

I like the ones by Residex, Metropole, Investors Direct, realestate.com.au… and I've probably forgotten some! Oh yes, and http://www.dymphnaboholt.com

Warmest regards,

Tracey

Hey team,

Thanks for the comments about the book. There's no doubt that property prices have moved higher since the 0 to 130 was released.  I accept that some will view it as outdated, however I continue to use the same theories to make good profits today.

It is fair to say that residential +ve cashflow properties are now very hard to find. I recommend people interested in this approach look to commercial property where tenants generally pay outgoings, and as such, the cashflow outcome is better than residential (where the landlord pays outgoings).

I hope to write a free report soon titled 'Where Have All The Positive Cashflow Properties Gone?'. Keep an eye out for it as it will be available in the months ahead.

Enjoy the rest of the book. It is wise to read widely, but your plan of attack will need to be made based on which approach will get you to your goals the fastest and with the least risk.

Cheers,

Steve, Isn't commercial property riskier?  L

I don't think it's fair to say that commercial property is inherently riskier; it's all a matter of what you're comfortable with. Education and preparation can ameliorate risk!

If you have commercial property with a long-term lease in place, I'd argue it's a less risky investment than residential, and more straightforward. It's much more "set and forget" than residential, because leases are usually written such that the commercial tenant does all maintenance and pays all outgoings – it's really quite simple.

The main potential pitfall of commercial property is that if it becomes vacant, there's a possibility that it will remain vacant for quite some time, as commercial properties and commercial tenants are much more varied than with residential, so you have to find a tenant who's exactly the right fit for your property. The risk of vacancy can be mitigated somewhat by doing your research about the supply and demand in the area, future developments, checking out the lease, keeping tenants happy, etc.

So if you absolutely need every rental payment coming in to save yourself, then perhaps a commercial property that's vacant or on a month-to-month lease isn't for you. But commercial property can be a valuable addition to a diverse portfolio, where the risk can be spread between a number of properties.

The other big issue with commercial property, for me (who likes to be aggressive and have maximum exposure), is that LVRs aren't as high, so I can't spread my equity as thinly as I'd like.

Sometimes you can "pull a trick" like I did recently where I borrowed on a residential basis on max LVR and converted the property to a commercial usage, and then refinanced on a commercial basis. Even though my LVR wasn't as high on a commercial basis, because the yield was so huge relative to the residential purchase price (ie over 20%), I was still able to access more equity at 85% of commercial value than at 100% of residential value.

Best wishes, Tracey

You've made some good points about commercial property, Thanks Tracey

Hi to everyone also.

My Christmas present to myself this year was both the 0 to 130 properties book as well as an investment property. I managed to do both.

I like some of the other people here, have only read half the book. So far it is all written in such a way that I say to myself, "why didn't I realise all this?", however I also do agree with people who mentioned that the positive cashflow properties are hard to find.

While looking for my property, I realised that I either get a real dive or I focus on something that I can negative gear. So I went for the negative gear. Now that I have read a lot from Steve McKnight, I realise that I may not be able to build a large empire of property with this system.

As per his suggestion in this forum, I will begin looking for commercial property.

I would love to hear from anyone who has been looking for positive cashflow property recently and how successful they have been.

Cheers

Mark

To add to the books to read, I'd recommend "How to achieve Wealth for Life through Property Investing" by Melvin and Chan.  I was given it as a Christmas present.  It's a cracker of a book, easy to read and fairly cheap I was told.