Im 26 i have my first property still owing an ammount of $274,000 have an equity of about $50,000. Joint income with my brother is 100k a year im pretty much using his name only for the banks so they will loan me if you get what i mean. Im going to take a loan out of about $350,000, to buy my second investment, then a few years after when the equity goes up, i will purchase agian couple yrs after again and so forth, in 10 years im looking to have about 7-8 houses. The only problem is which area to start could be anywhere in australia, somewhere where ill be getting close to 10% per annum, I know a bloke that says he can guarantee to find hot spots for me and choose the houses aswell using this method that is very strict, I MEAN strict as in side of the street type of people in the area age, lifestyle, transport, industries around the area, he pretty much looks at what they eat for breakfast lunch and dinner to determine!!! He recons he can gurantee 10% per annum return ATLEAST!, the prob is his Fee is $45,000, he says he will do all the paper work from the bank, solicitors, purchase of the property , looking after the property, rental tentants, insurance Etc. He works with around 8 people, who have been in the investing industry for a long time now. He says one of his people even rubs shoulders with the councils to determine plans for the suburb etc.
I want to try do this on my own but he says if i pick the wrong spots or property the returns wont be enough to purchase my 3rd house 3 years after my second and so forth…. Which i dont really believe. Even 8% per annum should gain enough equity in 3 yrs for my second loan correct?
Im also single and not looking to marry in the next 4 years, i have no expenses im living at my parents home, so im hoping to be out of pocket for a small ammout untill i get more properties and they start to pay for themselves, and im hoping to living of the equities in 10 years. Pretty much once i hit 10 years i will sell the 1st house i bought and by again, So ill sell from th back and buy from the front, and just keep going.
Any advise from experinced investors?
$45,000 is a lot of money. Would you be better off putting that towards a deposit?
No-one can guarantee a 10% return. It sounds like b-s to me, but I'm pretty cynical about these type of 'arrangements' that require large up-front payments. I'd be doing my own research, and putting the 45 large towards a new IP.
Just my 2 cents.
Dan42 wrote:$45,000 is a lot of money. Would you be better off putting that towards a deposit?No-one can guarantee a 10% return. It sounds like b-s to me, but I'm pretty cynical about these type of 'arrangements' that require large up-front payments. I'd be doing my own research, and putting the 45 large towards a new IP.
Just my 2 cents.
Thanks Any advise is good advise… The more i learn the better things get… Yeh the plan was to give the 45,000 once the loan is approved. I am also wary of this, 45,000 the plan was the 45,000 would be made back in the equity over the years so it wouldnt technically be out of my pocket, But still cash is cash. The plan is all the investment propertys would be set up as interest only payments so the rent plus a little from my end will cover the loan ammount the trick was just to hold the properties to gain equity over the years. Eventually they will all pay for themselves no need for my 2 cents extra to cover them. But another catch is EACH house i get them to choose will incur a 45,000 fee.
RUNNNNNNNNNNNNNNN
god_of_money wrote:RUNNNNNNNNNNNNNNN
Yeh i thought so! But what do you think of the plan? "as in" me doing the research on the property and using that system?
The advice you have received on here is sound. Please, please do not give your 45,000 to this guy. This sounds like a serious scam. Build your own network with Solicitors, buyers agents, building inspectors, mortgage brokers etc on your own or with tips from people that will offer this info for free. Im in Sydney and can pass on the details of all my contacts for only $44,000 (just kidding). If interested I can give these. Maybe im tight, but I wouldn’t spend over $50 getting help off someone, when anything they can teach you is able to be obtained from good forums for free and/or some of the better real estate books out there (recommend Millionaire Property Investor or Real Estate Investing for dummies). Put the $45k towards your first deposit once you have done some research about areas.
Ambosh Thanks for that i will message you, it would be good to get some contacts
Ambosh my email is [email protected] could you please forward some contacts or reccomendations. Your a champ!
Rather than email, Its good to list info on the site so others can benefit. Other people will have recommendations to, but for me personally. The below have always been fantastic. Ive sent others to these guys and had good reports. Solicitor: Paul Scara Property lawyers in Newtown. Not the cheapest but extremely thorough. Worth it. Building inspector: Matt from Aussie Building inspectors. Very good builders. We have used these guys on other purchases since and are very happy with them. Mortgage broker: Neil Williams. Based at Padstow and Chipping Norton but will come to you and manages the whole loan process (chasing banks for loan docs, signatures, arranging the refund for your first home owners grant etc). Finds the best loan that suits your circumstances. Fyi, it was with CBA. Free to use them – banks pay the brokers. Insurance: Home and contents insurance with Allianz Up to you about the buyers agent. If your new it might be worth it, but suggest that knowing your market is a worthwhile substitute to getting one of them…
Thanks ambosh
Thanks ambosh
I like Archicentre
They can give you some advice to improve the property with small cost..i smell a scam.do noy pay or sign anything.keep the mioney and do it yourself.if you make a mistake you will learn.give me 45000 and i will tell you the moon is made of cheese if that is what you want to hear.buy well positioned property and IN THE LONG RUN 10 -15 YEARS you MAY see an average of 10%.by the way if its so easy why isnt he investing and cleaning up himself?????????????/
What a scam $45k
RUN right after you have punched him in the nose.LOLOk this is the deal i just rang him and he said he will give me a special deal cause of my circumstances he says they will right up a contract that i only pay $8500 at first and then in 3 years i pay him the rest once i see the growth the house is making, Another thing he says and is 100% about is… He states that my out of pocket expense will be $69 from year 1 – 3.5 years. Then if i decide to buy another house at that point of time it will go up to $104 Until year 5, then another house $139 untill year 6 then another house at yr 7 will cost me $88, at year 8 if i buy another it will cost me $0. OUT OF POCKET ANNNND waiitttt theres moreee. HE SAYS its LOCKED!!! yess LOCKEDDDDDDDDDDD at those prices NO MATTER HOW HIGH THE INTEREST RATES GO UP!!! ORRRR EVEN IF THERES NO TENANT IN THE HOUSE FOR MORE THEN 6-8 WEEKS!!! NOT USING THE HOUSE INSURANCE THINGY.. WTFFF!!! HIS NAME IS PETER from GEN X LIFESTYLE SOLUTIONS. 9567 0833 If anyone is game enough to have a phone battle or even go in and see what his talking about.
Can someone out there please try and mimic this system what in the HELL IS HE TALKING ABOUT? he says he has setup up systems like this with the bank with his own investments and many other peoples.. This is for a house worth 350,000 – 380,000. PLEASE SOMEONE TELL ME THERE IS A TRICK OUT THERE IM NOT SEEING.
He says i have to come to 1 more seminar and he will show me how to do it, i can either walk away and try do it on my own or he will do it (he will do it meaning 45k in the long run). This last seminar will cost $400.
He wont say much over the phone, I said to him "So what your saying is i go in there for the final seminar and i want to do this on my own you will show me? He says yes. And he also explained the WHOLE story about the artical against them, it was abit complicated and said the media hyped it all up and he also stated that same guy has written things against westpac Ramz etc etc. And the couple the article says that they didnt get there money back was not true theey got it all back bar $8500 due to them doing all the work for them.
PLEASE SOMEONE TELL ME THERE IS A TRICK OUT THERE IM NOT SEEING.
AndrewH, there sure is a trick and that is that he wants your $8,500 and then he will run.
Why pay someone else when you can save that money and buy your own deals and if you can't find a good deal then go to someone like metropole.com.au and I am sure they won't charge you any where near this amount and they have been around a long time and I am sure they will be around alot longer
Anyone who tells you 'give your money to me and I'll do the rest for you' or 'I can 100% guarantee your return' is pretty much a scam.
AndrewH, in your investment journey you will see plenty of people like this one. They are pretty easy to be identified once you get enough investment education. my advice: build your network, read more books, go to real educational seminars (like steve and dymphna) and do the deals yourself.
good luck with your 10 year retirement plan!Hi Andrew.
I think it would be really beneficial if you read some quality literature to see what others have done to create a successful real estate portfolio. Personally I like Margaret Lomas, but there are lots of others, all good and a book only costs $25! Many are in the local library.
From my experience, it is a matter of buying things you can afford, in areas people want to live. If you can do some work to improve properties that are a little tired, you can add instant equity in many cases. You may also be able to buy something that is subdividable, e.g. a corner or 'header' (rear) block which can be sold to reduce your debt or to build on. Or you might be able to strata title something that is on one title. If you are not sure where to buy, it is good to look at areas that are alongside pricier suburbs, as they often go up also in due course. If you want to buy in other states or country areas you need to do your own research and ensure that there are plenty of sources of work for tenants (reasons for them to live there) and that rental vacancies are not high, e.g. there is good demand for your property. Local property managers can help you with free advice.
It can be very interesting to hear what property advisers say, e.g. 'the investors club' but ultimately you can gain the confidence to do things yourself, armed with the knowledge that you are cutting out the middle man. I think this forum could be your best friend! PS. There are also free articles and statistics on specific locations via Doman and Realestate.com
Good luck,
G
AndrewH wrote:he says he will do all the paper work from the bank, solicitors, purchase of the property , looking after the property, rental tentants, insurance Etc. He works with around 8 people, who have been in the investing industry for a long time now. He says one of his people even rubs shoulders with the councils to determine plans for the suburb etc.
I don’t believe in paying someone to do something that you can easily do yourself.
1. There is no paperwork to do from the banks – loan documents come as a set prepared by the bank or its lawyers. You simply read, sign and return.
2. If you need a lawyer or conveyancer to assist you, pick up a phone or send an email and deal with them directly. This will save heaps of time compared with a third party constantly running back and forth between you and the lawyers. The more the lawyers are on the phone, the more they’ll charge.
3. As for purchasing the property, you sign the contract and then it goes to your bank and lawyer. Nothing else.
4. Looking after the property – this isn’t rocket science. If you can pay your own bills and fix the odd broken thing in the place you live, you can certainly manage your own investment property and save thousands on property management fees. Services like Rentwise make it easy for DIY property managers.
5. Getting tenants – use a real estate agent and pay them no more than two weeks’ worth of rent + $100 for internet advertising. All they’re doing is opening the door for 15 minutes and making a few phone calls to check applicants’ references.
6. Insurance – no need to pay more than $200 a year for landlord’s insurance. Try Lumley or EBM or contact an insurance broker like Whitbread.
The line about influence at Council is nonsense. With anti-corruption commissions and intense media attention, the days of undue influence and mates rate at local Councils are long gone.
I'll do it for $35K.
Just kidding, don't give this guy your cash, total Scam
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