What better place to ASK.
Marc is 34, has got one very NOT cash flow property in syd, and one cash flow property in a country town, these are in a trust, of which i had nothing do with, just signiture on account That’s not my problem, my propblem is that I have always let my partner do everything and as such am not involved with the how or where’s I let him do everything(lucky me) but now I want to move forward on my own, at lest start to understand property .Yes finally after waiting and waiting and wanting to get started I’ve decided that it would be nice to start. Obviously reading Steve’s latest book was-IS the catalist to take my finger out, only thing is I lack the courage to start. As I am not good with numbers, contracts mean nothing to me as it’s just words, and the idea of starting is easier than starting, and I’m not scared of making mistakes, I asure you, I just keep throwing money away, so now I have to start from scratch, I live in sydney and I really want someone local-Nth Shore would be great, to guide me and let me learn from what they are doing. YES I want a MENTOR. I am not lazy as my business is living proof of that, I am not scared to try something new, as I’ve taken the plug many times and given lots of things the go, but I now know that property (positive) ones will suit me. I have found many properties today that show me that. Obviously I’m not wanting someone to show me where, but the HOW, how to do due diligence how to negotate, how to structer or see the big picture. I me you will find a very willing student and someone thirsty for knowledge. I won’t go into the why I am at this corner of my life, but I am ready to move on. Any Ideas or help or what ever will be wormly welcomed.Marc Hamilton-Jessop
Why dont you start with your partner?
“how to do due diligence”
Ooh, I’m pretty good at that. So my method is…for the town, use the internet to find stats on growth, business, etc or buy the data you need – you can even buy an analysis of a postcode, or prices of recent sales in the same street, etc.
know what prices are doing now, what they did recently, for the last 1, 5, 10 years, then you can make your predictions on what you might think they might do in the future. for example you might find out a big factory is going in down the road and creating 1400 jobs. so… just find out all that kind of stuff. or conversely if a major employer is laying off or closing or just closed etc. get a good picture of the place’s prospects for the future.next the tenant, rental demand in the area, rentability and appeal of the property etc – spend the day on the phone and ring up every rental manager in the area and suss them out. how many do they manage, what’s the street like, how many vacant, prices, demand, just get them talking and ask lots of questions and keep thanking them loads. etc.
numbers- not so bad. use a calculator…it;s basically just how much does it earn per year minus how much does it cost per year. steve’s product buyer beware has detailed worksheets you can fill in with a calculator so you don’t miss anything and can analyse each deal. honestly if you do it the slow painful way for a few times you’ll soon be able to do it in your head!
Do the numbers on the best case and the worst, and the difference between the two numbers is what you’d have to pay in if things went horribly wrong.
analyse a few different deals, i.e. different deals all over Aus. the more you analyse the more you’ll get the hang of it.
can’t think of anything else right now other than GET A BUILDER’s report about the structure, which will fill in a whole load of gaps.
joy to the world
You must be logged in to reply to this topic. If you don't have an account, you can register here.
