All Topics / Creative Investing / Starting out- what to do first?

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  • Profile photo of BecandJoBecandJo
    Participant
    @becandjo
    Join Date: 2004
    Post Count: 6

    Hi guys,

    even though I have been in the Real Estate game with my partner for a while I find it hard deciding what to do first with my own money.
    I have been in regular employment long enough now to be able to get a mortgage and have saved $18000 over the last 2 years.

    So this is where i start out:
    Borrowing capacity: $165000
    Savings: $18000

    I know i could buy something and hang onto it for a while but i want ot get moving and make money! So these are the options I can see:

    1. Buy a property in WA that is positively cashflowed and hang onto that. I would still be able to borrow from the bank, but most of my savings would be gone and I’d have tos ave again for at least a year or find a money partner for other deals that I don’t want to hang onto. RISK: at the end of the lease it might be hard to find a tenant as vacancy is as high as 16% in some of the areas with positiv cashflow properties.

    2. Find a house to renovate and onsell (I have been doing that with my partner in the hunter valley/nsw, however he is not available now) I would have to do it all with tradespeople and i have been running the numbers and it just doesn’t stack up – VERY INTERESTED TO HEAR FROM ANYONE WITH EXEPRIENCE OTHERWISE

    3. Make lots and lots of offers to find a house that i can lease option from someone and then find someone who wants to lease options it from me. With this option i wouldhave no money in the deal which sounds appealing but as you know it’s much harder to find people who are willing to do this.

    4. If I do option one, or anything where i’d hang onto the propertym then to keep going wit hbuying property, I woul have to get the owner to carry back the deposit so that i just have to come up with the purchasing costs…

    Any insight or advice is much appreciated!

    Regards Bec

    Profile photo of pipelinebuilderpipelinebuilder
    Member
    @pipelinebuilder
    Join Date: 2005
    Post Count: 48

    Invest in a systemised business so you can get enough passive income to invest in property.

    Profile photo of BecandJoBecandJo
    Participant
    @becandjo
    Join Date: 2004
    Post Count: 6

    Thanks Pipeline builder,

    coould you expand on that?
    Regards Bec

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Bec

    You dont have to spend a fortune to find a good +cash flow property.

    A client of mine has just gone to contract on a house in Boulder WA leased until 2008 showing 8.2% Gross Return and we are arranging a 100% IP finance.

    All he is coming up with is the acquisition costs.

    Even if you don’t qualify for 100% loan then 95% plus some of the Bank costs would mean very little cash input.

    Richard Taylor
    Residential & Commercial Finance Broker
    **NODOC loans from 6.89%**
    Licensed Financial Planner
    http://www.yourstatefinance.com
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

Viewing 4 posts - 1 through 4 (of 4 total)

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