[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 30, 2004 - 11:47 am

Waz,

Yes you can do it. I do it.

There’s some good discussions both here and at Somersoft on the topic if you do a search.

It’s like any other IP….you can even furnish it

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

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July 30, 2004 - 11:44 am

Generally used in commercial & industrial leases VERY uncommon in residential.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 30, 2004 - 12:52 am

Yack – wrong question.

The question you should be asking is:

How do I stop being Joe Average and become as knowledgeable as these people?

The only one limiting you is yourself!

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 30, 2004 - 12:50 am

Buzz, words, buzz words, buzz words.

Call a spade a spade.

Buzz words are traditionally used to conceal & coerce, not to explain and teach.

Every profession uses them to raise the barriers to entry.

There seems to be a lack of understanding on what it was that Steve meant by the use of these phrases.

I hope he posts & clarifies what he means by ‘Velocity of Money’ and ‘Multiplication by Division’ for everyone.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 30, 2004 - 12:44 am

Squash,

What do you mean by due diligence?

Just put in what you mean, ie: building inspection, pest inspection, subject to finanace – whatever.

Price – you can offer whatever you like. They can ask for whatever they like. The first no isn’t the end of a deal, it’s the start of negotiations.

Remember – If you let the REA set the rules of the game, as a buyer you’ll always lose. Change the game.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 11:49 am

The Brisbane Investor Group meets regularly.

They make announcements in Meetings in the Somersoft forum.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 6:15 am

Good one Dave,

Something that no-one has mentioned is actually INCREASING the price.

That’s often a way to differentiate…people will rationale their own value.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 6:10 am

If you wanted to distort it as a guru watch phrase I guess there’s two ways I could see it used:

1) Deal flow….gotta keep turning over deals to keep increasing returns. In this case velocity of deals/Deal Velocity is more appropriate – hmm good book title

2) Financial Leverage – don’t leave money (equity) tied up & inactive as it’s not generating a greater return for you (which is closest to the actual meaning anyway). Equity in a property increases slowest if you’re not leveraging it. On this basis the perfect scenario for maximum velocity is 100% lends for maximum leverage…actually if you can go even higher (150%, 200%, 500%, 10,000%) you’ll go even faster. Of course you have to make sure that you don’t get caught by the debts before you make the profits!!!

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 6:02 am

Originally posted by westan:

Gee i hate to admitt it but i have to agree with Yack how can you turn 10k in the stock market into 500K in 7 years, it is IMPOSSIBLE, unless you take a huge risk, those that take this risk will lose everything more often than they make 500K or even 50k for that matter.

It’s impossible to buy 130 properties in 3.5 years as well – just ask the average person on the street [cap]

What is and isn’t imossible is defined more by peoples’ beliefs than reality.

Who’d believe people could fly? Could run fast enough to break the 4 minute mile? Could reach the moon from a standing start in less than 10 years? Would watch reality TV programs? Or want to eat icecream with oysters, plum jam & olives (that’s a pregnancy story)?

ATM I’m sitting on one stock investment that has done 1/3 as well as that ‘impossible’ level – but it only took six months, so I’ve got a bit more time before the ‘impossible’ timer is up. Give me another 6.5 years & I’ll let you know.

Some people in this thread have said that they feel shares are too hard……many of the share traders I know feel the same way about property.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 5:52 am

Yack,

Actually Velocity of the Money Supply is an economic term that’s been in used for a very long time.

Here’s the actual definition for you: http://www.wordiq.com/definition/Income_velocity_of_money

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 5:51 am

Originally posted by kay henry:

Leigh, there will always be people telling others are unprofessional, amateurs, whatever… because people do different things than they do [baaa]

tsk, tsk Kaye – you need to watch those snide asides, someone could take them personally & it would just not be right for a moderator to tarnish the reputation of this forum by starting flame wars [biggrin]

Dunno where you got professional vs amateur from anyway…remember, the Titanic was built by professionals [blink] – most property investors are amateurs, such as yourself Kay, so you shouldn’t be putting them down.

Leigh,

Freebies on apartments aren’t free. They represent a cost to you. If you’re buying a $7,000 plasma screen & throwing it in, make sure you buy it for half that price or less – otherwise you’d do better by dropping the price by $5K.

Making your apartment stand out in my experience (having done this a fair few times over the years) can be done by making it different.

There are many ways this can be done.

Get in a (professional) colour consultant & work out a colour scheme that makes yours more upmarket. Change the handles & benchtops. Put in some snazzy furniture on rental for the open days.

Giving away free stuff isn’t original or different, it’s the same boring idea that’s done by retailers like Harvey Norman.

Get attention by making the apartment attentionworthy!

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 5:40 am

Sebastian,

I would say that this friend should have some VERY strong words with her mother.

From the way you have written the post, it appears the mother was stealing from her daughter & has now potentially hurt her daughter’s financial future in the short term.

The mother did commit both theft and fraud. She stole the card & then used it fraudulently.

If the police were involved, the credit mark could quickly be moved to the appropriate person’s file – however I’m sure she’d feel terrible about involving them in this matter.

A stat dec & the passport reference may clear it up, but it will certainly highlight the fraud. Be cautious that your friend is not considered an accessory to the matter.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 3:17 am

Leigh,

We alway throw in plenty of extras when selling a place.

All the properties we sell feature taps, towel racks & glass in the windows. We also provide door handles as appropriate and all our rooms come with four walls.

If the purchaser wants something special, like a Plasma TV, we give them the address of the local Good Guys.

And if they want a holiday, we make them aware that they’re buying a new property, it’s just like going on holidays for the first few weeks.

If you can’t sell a place by reducing the price, you clearly haven’t reduced it far enough

Something you can think about is renting furnishings & plants to improve the appeal – however balance this against the cost of doing so.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 29, 2004 - 2:34 am

Sounds like the same discussion as held over Australian interest rate rises over the last year…..

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 11:11 pm

Oil may be at $43, but in real terms is only around 50% of the level during oil price shock times.

Lots of blue sky there still.

Stay a bear Wayne, we need people like you to buy from.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 11:04 pm

Westan,

On the basis of your post it sounds like you’re a PROPERTY investor under my definition.

An informed investor in any area should do well. It’s simply about where you choose to be informed.

If you focus on property (or indeed on any other investment class) & don’t inform yourself about te other investment options how do you know if you’re choosing the best vehicle for your investment goals?

Choosing to be blind to different investments doesn’t make you a more successful investor – it makes you less successful.

If you look at the most successful investors, very few are property specialists. They virtually all focus on being investment specialists – knowing how to use a dollar to make two, regardless of the asset.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 11:00 pm

Elika,

Trusts can be used for negative gearing purposes. That’s what hybrid unit trusts are for.

I would NEVER distribute from a trust to a company.

You have to be earning a relatively high level of income before income tax goes over 30% of your total income.

Companies get taxed 30% on every dollar. So unless your income is very high & you’re not using various paper losses to reduce the distribution amounts from the trust, you’re better off in most cases not distributing to a company from a trust. You’re better off distributing to humans.

Trusts let you divide the income between beneficiaries – your partner, kids, parents, etc….reducing tax & making them a useful estate planning tool.

Trusts aren’t only for tax purposes – in fact it’s one of their minor uses. They are also very useful for risk mitigation.

Using a Trust you can silo assets in vehicles that are very hard to sue (best to use a corporate trustee).

This preserves your assets should you get personally sued for any reason.

It also helps in bankrupcy matters.

Read Dale’s book and you’ll get a far better understanding of the types & uses of trusts. Then ask any questions that remain.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 2:30 pm

I’m with g7.

If you’ve heard buzz, you’ve missed the best deals.

Don’t be part of the herd – do your own research, all the info you need is easily available.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 2:28 pm

I can’t say that any form of investing has ever left me amazingly scared.

I reckon that NOT investing is much scarier, I just don’t know how people can feel comfortable with that big a risk!

(my first time jumping out of a plane was pretty scary though)

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut

[AceyduceyParticipant@aceyduceyJoin Date: 2003Post Count: 651]

July 28, 2004 - 2:21 pm

Originally posted by elika7264:

so you are an interest and principle person. I thought I was a dying breed.

Here’s another P & I person: http://www.somersoft.com/forums/showthread.php?s=&threadid=8756

She posts in PI every now & then too.

P & I is a good approach to build equity in high cashflow/low CG properties. We’re not using it ATM ourselves though.

Cheers,

Aceyducey

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In theory, there is no difference between theory and practice. But, in practice, there is.

– Jan L.A. van de Snepscheut