Gday
Im new here. Just finished reading Steve's book "From 0 to 130 Properties in 3.5 Years".
I totally agree with what he says, its basically common sense, i can see the math bla bla, but the critical thing i notice he does not get into is HOW to find these types of properties, he goes on about it through the whole book and from googling him and his products i see thats his whole philosophy "Buy properties where your cash flow IN from rent is more then your cash flow out on loan repayment and other fees" yet he does not outline his system for finding these properties, finding the properties is the key.
..Sure, he mentions on just over 2 pages in the book somwhere near the end his strategies which basically contain; using the internet, reading the paper, window shopping and asking locals. BUt i dont buy into that, i've been looking through the real estate windows in my suburb for a long time each night when i walk my dog, plus i have been religiously looking at real estate website.
Sorry Steve, i dont buy it mate! You get a call from agents the minute they get the green light to sell and you know it. You are what real estate agents refer to as a 'cash cow' they know what you want and they give it to you. Why this is not admitted i dont know, because there is certainly nothing wrong with it, i just dont understand why you dont write a book about networking with real estate agents and how to make them eat of your hand like little BI*CHs
Not having a go at Steve at all, im sure hes a great guy, and like all of us he's probably keeping his golden secret as close to his chest as he can. Im of the opinion that all BIG real estate millionaire's have a huge network of realtors which give them the 'first go' at securing a deal the moment the owner wants to sell.
So how do they do it?
How do you do it Steve?
The book is outdated
and the teory is outdated
but people who tried it 10-15 years ago might agree with his teory.
Not now especially post GFCgod_of_money wrote:The book is outdated
and the teory is outdated
but people who tried it 10-15 years ago might agree with his teory.
Not now especially post GFCSo why u on this forum then?
You can apply the formula in the revised edition which does give you the yield. If the yield is high bingo. Hence the revised edition.
And yes these properties are not just floating in the air for people to pluck, we would all be really rich (nice but ain't happenin). You need to look in different areas. Where I rent you would NEVER EVER EVER find a CF+ property. But plenty of regional areas with decent populations and industries hey presto, found one. These properties are not pretty mansions by the sea. These properties are not places YOU would like to live in. But they are where people will rent and what people will rent. (And I'll skip the regional blah blah, risk, blah blah lack of CG spiel thanks) I've tried getting my name on realtors "lists" but hey maybe I'm just not that rich! Then again I might be "unknown person no 20" rather than "person who buys most of the time"
Go shopping, somewhere that is other than past the local window, because if you don't seriously shop you wont buy anything. I don't go grocery shopping hoping that someone will sell me the cheapest, tastiest bread, and then complain when it isn't in the first shop I go in. Shop around.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Mejust as an example have a look at moranbah, mining town in qld. you can get a property for under 300k and get a return of around $590…thats a pretty good positive return in my books…..so they do exist
AndreiR wrote:god_of_money wrote:The book is outdated
and the teory is outdated
but people who tried it 10-15 years ago might agree with his teory.
Not now especially post GFCSo why u on this forum then?
so what???
DWolfe wrote:You can apply the formula in the revised edition which does give you the yield. If the yield is high bingo. Hence the revised edition.And yes these properties are not just floating in the air for people to pluck, we would all be really rich (nice but ain't happenin). You need to look in different areas. Where I rent you would NEVER EVER EVER find a CF+ property. But plenty of regional areas with decent populations and industries hey presto, found one. These properties are not pretty mansions by the sea. These properties are not places YOU would like to live in. But they are where people will rent and what people will rent. (And I'll skip the regional blah blah, risk, blah blah lack of CG spiel thanks) I've tried getting my name on realtors "lists" but hey maybe I'm just not that rich! Then again I might be "unknown person no 20" rather than "person who buys most of the time"
Go shopping, somewhere that is other than past the local window, because if you don't seriously shop you wont buy anything. I don't go grocery shopping hoping that someone will sell me the cheapest, tastiest bread, and then complain when it isn't in the first shop I go in. Shop around.
D
It is always a trade off buying in the small rural town versus inner west of Sydney.
You can always find CF+ in the regional or rural town.. but there are risks associated with them.god_of_money wrote:It is always a trade off buying in the small rural town versus inner west of Sydney.
You can always find CF+ in the regional or rural town.. but there are risks associated with them.I'm assuming the risks would be in relation to potential longer vacancy periods?
Allow me to stand before you and scream at the top of my lungs for a moment.
I KNOW WHERE TO FIND CASHFLOW POSITIVE PROPERTIES! Is noone paying attention to me? Am I invisible? Wait… let me just check my breath on a window… am I dead and I just don't know it? Let me try again. I KNOW WHERE TO FIND CASHFLOW POSITIVE PROPERTIES!!!!
Let me just give you a background on me for a second here people.
I agree with andrier. I read Steve's book, was crazy inspired to go and buy hundreds and hundreds of cashflow positive properties, and then realised, crap… where are they?
I figured out pretty fast that If such a bargain existed, by the time it filtered through the real estate agents friends, family and inner circle business associates, I would never even SEE such a bargain. It would have been bought the day it was put up for sale by someone that was close to the agent. So I have taken the initiative.
I have very little interest in selling real estate, I have a lot of interest in buying it. If I want to buy the good stuff, then I have to be IN with the real estate agents. What a better way to do it, than to become one. I recently have taken a course, planted myself in a job and have started operating, as close as one could call it, to a buyers agent.
I specialise in educating people how to use their super to buy property, but then once that is set up, I also specialise in finding them a property that is suitable for them. When buying through super, it's not a viable option, and the banks don't want to play with you, UNLESS YOU FIND SOMETHING CASHFLOW POSITIVE. So it's my job to make sure I know where they are, and how to find them!
So, Andrier, if you were looking for "a real estate agent to eat out of your hand like a little b*tch", as you put it. Well… allow me to offer my services. If you think you're a cashcow that is serious about buying property, then bend me over and call me spanky. Let's talk. I can only afford so many deals at a time, I can't buy them all.
Two words. Dual Occupancy.
AndreiR wrote:Gdaymake them eat of your hand like little BI*CHs
Missed this choice tidbit the first time around………not appreciated.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeMy advise is do your homework, is the deal really positively geared? If you use equity to cover deposit and costs so no money out of pocket so to speak no matter what loan to value ratio you purchase you are still borrowing 100% to buy the property. In todays environment pos geared at 100% lend would be impossible. BUT there are some high rental return and as above dual occupancy investment properties for sure.. also I can put you on to a great report showing you where all the highest rental return properties would be located around the country. Give me a call or email me if you want the info.
Best Regards
Tony Born
Senior Mortgage Consultant
[email protected]
0407 617 141Gidday AndreiR.
Cashflow positive is the buzz word. If you delve deeper you will find other peoples problems are your profit!
Try mixing Steve ideas with a simple cost effecrive reno, bingo, raised the value, raise the rent. What looks average can be spruiced up to become +ve.I also have a house in Moranbah Qld. that has offered fantastic cashflow and have been up there over 18 months now. Have had wild fluctuations in rents from $575 to $700 to $1,000 a week rent, Now at $675 and have had 3 months vacancy just through Christmas!!!
Go in to rural with your eyes WIDE open!!
Duncan.
duncaz… you need to take into account of 3 months vancancy rent
AndreiR wrote:Not having a go at Steve at all, im sure hes a great guy, and like all of us he's probably keeping his golden secret as close to his chest as he can. Im of the opinion that all BIG real estate millionaire's have a huge network of realtors which give them the 'first go' at securing a deal the moment the owner wants to sell.
So how do they do it?
How do you do it Steve?
sorry,but if u think the real property millionaires and doing it via positive property your dreaming,they may start there to build cashflow in one or two or 5 or so,but then only use its equity and cashflow to develop/strata/sub divide/reno etc etc.
u make 100 bucks a week positive geared,times that by 40 to get a decent hi life income and ur getting somewhere,there is next to stuff all people with 40 homes or more.
look at john fitzgerald,he sells neg gearing like crazy,but what is he really doing? he is developing properties to sell to investors cos thats where the cash money is.and i learnt something from that,he and others sell u a product that takes 10 year to work,hence he is creating his own long term market for his developments to sell to.smart man,like others,so why be the customer makign 100 buvks per house when u can be the developer making 50k or a 100k per house???
or go to seminars and talk to people,u find people with 15 properties and they are now redoing the whole portfolio because its got them nowhere really,so where do they end up? they end up at development /strata/sub div/reno seminars to make actual cash.
i think if ur looking for pos geared then u need to be very lowly geared on them in current market or in a very volotile market like mining etc.
note- unfinanced outright property is a different story,if u can do that then go for it.
hope it all works our for ya.
Re mining towns, yes you can ride on the back of fast growth there depending on the town and mine location but you really need to know what you are doing and research the fundamentals pretty well. (naturally). Take Pine Creek NT for example 4 years ago you could buy a house for $25,000 and within 2 years they were selling at around $150k – $200k with th eGold Mine and Iron Ore mine going off. Then the Gold Mine suddenly closed shop and pulled out as the economy shifted and values suddenly plummeted… scary.
Regarding positive geared properties, traditionally pos geared were in low growth areas and neg gearing in strong growth areas, of course high rental return in a high growth area would be ideal.. unheard of in the past but they are actually out there at the moment, I’m buying one right now in Caboolture. A good investment with high rent return, high growth predicted due to solid fundamentals… They are out there.
Regards
Tony Born
Senior Mortgage Consultant
Member: FBAA, PIPA
Mb: 0407 617 141
Email: [email protected]
Ask me about a free Property Investor Toolbox
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