Good to hear they are covering that too. For mine, doing that for a FIRST IP is a good way to get you moving. The more things on your side, the better. And, if it works well, do it for your second too.

But you are right – if the deal is good, it should stand alone even in a bad market. And yes, cashflow is King !!

Playing devil’s advocate…[Read more]

Hi Steven,
One point not mentioned (probably wisely, as it is not a “given” on any particular day, week, or year) is the trend in the area of purchase. e.g. If the Property Clock is showing between 7 and 10 o’clock, then there is a good chance that you will be the beneficiary of some equity lifts simply by holding property in an area where…[Read more]

With those flips, I think the way you do them is important (and I haven’t done any at all, so I am flapping my gums here, but other members might be able to step in…..)

e.g. I think it can work out if one takes out an option, then onsells that option to someone else. In that way, you never do take possession of the property, so you don’t…[Read more]

Hmm, the confusing part I see (or read), Steven, is that you don’t have time to find/buy/research a property in Australia, even if using a Buyers Agent for $6k or so.

But if you pay them $28k, then you will need to spend 6 months learning about THEIR o’seas market (a purchaseable option?), and untold time researching their deal, checking out…[Read more]

Hi Rachel,
Sounds like you have them sussed – if it is simply lack of experience on the part of the PM, then that can be overcome (but only if their Manager gives a stuff). i.e. Is there anyone more senior who can guide the current PM? Maybe you are going to flick them anyway, but it would be good to share your concerns with the Manager (if…[Read more]

OK, I just went Googling and found that Robert Kiyosaki has some involvement with this group (might be name only – not sure), and that it is International, not Australian. So yes, I know the name, but only by association though.

Suddenly, I have a host more questions about them, and am a lot more wary too. Not because of the Kiyosaki name,…[Read more]

I hadn’t heard of them, so thanks for sharing. How did you find them, Steven? Or did they call you? Certainly sounds expensive to me, but then, if they are providing value …..

Obvious questions that arise (to me) would be to discover how much they gain from each property you buy through them – I am always just a wee bit more suss when…[Read more]

Hi Steven,

That was a really good lesson – I’m impressed. Thanks for sharing it with us, Steven. The presenter obviously has quite some experience in these matters.

Does the weekend course also include any ongoing mentoring from him or one of the mentors? Or was that a purchaseable option at the tail of the seminar?

Benny

Hi Rachel,
Even as I was reading your post, I was wondering about the integrity of your Property Manager.

… and she tends to side with the tenants, or in some cases has gone ahead and authorised items that I’ve said no to.

If you don’t already have such in place, DO set a maximum repair cost the PM can spend without calling you to affirm a…[Read more]

Hi Rachel,
Even as I was reading your post, I was wondering about the integrity of your Property Manager.

… and she tends to side with the tenants, or in some cases has gone ahead and authorised items that I’ve said no to.

If you don’t already have such in place, DO set a maximum limit of costs the PM can spend before calling you to a…[Read more]

Hi Steven,
Interesting points made there, and so many of them make sense. I wanted to comment on this bit though:-

For example, my investment property, I paid $11000 for the initial deposit, and I get $360 rental return, so that’s $1560 per month, so my monthly ROI against the cash (we haven’t even though of stamp duty and the rest of the cra…

[Read more]

Hi Steven,
Interesting poitns made there, and so many of them make sense. I wanted to comment on this bit though:-

For example, my investment property, I paid $11000 for the initial deposit, and I get $360 rental return, so that’s $1560 per month, so my monthly ROI against the cash (we haven’t even though of stamp duty and the rest of the cra…

[Read more]

Hi Diceman,
I can see the benefit of using the higher interest loan if it allows you to “settle quickly” in return for a nice discount on the purchase price. But if there is no immediate benefit for you, take the time needed to set up the better loan right off.

As always, if not meeting them on price, give a bit on terms. Or, if meeting…[Read more]

Hi Greg,

I honestly thought that with the high-turnover for properties in the area (Slacks Creek, QLD; average days on market ~20 days), that this would be a relatively easy process but have been proven wrong as my agent has had only a handful of potential buyers through the property, and only one low-ball offer made (which I rejected as it was…

[Read more]

Thanks for that Terryw – probably little to worry about then if a lender goes belly up?

Benny

Hi again,

As a lender do Latrobe have a history of stability?

I can’t comment as a customer of Latrobe, but maybe an early “Aha moment” from a seminar can help. The presenter was answering a similar question from the audience. The question went something like “How do I know that a lender isn’t going to go belly-up?” The presenter replied…[Read more]

Hi Steven,
I applaud that you are keeping an open mind, and are “taking a look” at other options. Certainly, if this person has an “in” to distressed sales, that might have some merit and benefit for you. but hey, as always, it is Buyer Beware (caveat emptor).

I tend to agree with the others who are guiding you away from accountants…[Read more]

Hi Steven,
I applaud that you are keeping an open mind, and are “taking a look” at other options. Certainly, if this person has an “in” to distressed sales, that might have some merit and benefit for you. but hey, as always, it is Buyer Beware (caveat emptor).

I tend to agree with the others who are guiding you away from apartments and…[Read more]

Hi Steven,
I applaud that you are keeping an open mind, and are “taking a look” at other options. Certainly, if this person has an “in” to distressed sales, that might have some merit and benefit for you. but hey, as always, it is Buyer Beware (caveat emptor).

I tend to agree with the others who are guiding you away from student accom. But…[Read more]

Hi Brizziegirl,

Watch out that the new lender DOESN’T x-coll the two mortgages !! That is not a good situation to get into in most cases. Check with your MB about that.

BTW, for those reading who aren’t aware of “x-coll”, I’m referring to “cross-collateralising the properties on a single mortgage”. It can seem to be worthwhile in some…[Read more]