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Hi Trevor,
I wanted to start by saying “Good for you for using a spreadsheet to start tracking this”. For me, I found it helped me to learn Excel from scratch, while also allowing me to finetune my thinking re my early Real Estate days as I went along. Each time I met another investor, or went to a seminar, read a book, etc – it all helped me to revise my thinking and thus make adjustments to my spreadsheet(s). In all, it was the learnings from that time that gave me confidence to take the first step and buy my first IP. So, go for it.
To your spreadsheet, it appears basically good to me. One point I’d suggest is that whatever equity you draw from another property should be considered to be the “cash” you put into the new one. That is because you are taking something of value to give you your Deposit. So (example) if you took $150k to be Deposit and Costs for a new IP, I would put that amount as my “cash down”.
Of course, the very act of borrowing to get that deposit also adds some extra Loan Interest into the equation, and in that case, I would include that loan cost as part of your total borrowings too. So you’d be paying interest on an IO loan for the bulk of the purchase, and also Interest on the Deposit/Costs Loan too. i.e. in effect your mortgage will be for like a 100% loan (maybe even 105%). That will make a huge difference to your monthly bottom line – but it needs to be considered in my opinion.
Other thoughts – I saw no line item for Insurances. Can be substantial depending on what you buy. I also noted some of your examples had no Body Corp, so you are obviously looking at houses as well as apartments or plexes. Were these actual examples, or simply a bunch of made-up figures? The reason I ask the latter, is that there appears to be a HUGE range of diverse options – so I’m leaning to “made-up numbers”. Am I right? If not, no worries, as (like I said before) it was my PLAYING with my initial spreadsheet number that gave me a base to grow from. So, keep it up.
I’m not a full bottle on NOI, ROI, etc so I’ll leave that to others – but I can say that Steve’s STEPS program goes VERY deeply into these, as it takes you through the Due Diligence path from beginning to end of a purchase, including all of the expenses and the various acronyms that go with it all, and (most importantly) how they interact to show you the TRUTH about a property based on its numbers.
Come back if you have more questions,
Benny
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This reply was modified 4 years, 2 months ago by
Benny.
Hi Freedom,
The links to the topics are not clickable. ? let me know If I am missing something.
You are quite right – the Index references are not clickable (maybe one day when I have some spare time….. ;) so use the Index much as you would in a book. i.e. You look for a chapter title that sounds like what you want, then look for a page #, then look for the page within the book. In this case, use the date of an interesting post as your reference – then scroll on through until you reach that date (and of course, it might be on another page, so select the correct page before you scroll).
Look for the Index on page 1 – (or click link below) :-
Read down in that first post to get to the Index. Once there, note the item you wish to check out, log the date, then scroll down to find that date. It might be on page 2 or 3, so click the page button accordingly.
NOTE – the boxes that allow you to change the page you are on appear at the very top of any page, so, after recording the date of a post you want to access, and noting what page # it is on, scroll right to the top of the page. Once at the top, at right you will see 3 small boxes with numbers 1, 2, and 3 in then. These are the pages mentioned in the Index. You will be on page 1 when you read the Index. Select which page # you need to get to the report you want. An alternative is to scroll down just past the last post on each page – again at right you will see the 3 boxes that show the page #. These are seen just above the “Reply” box near the bottom of each page.
Or, simply scroll through and read them all – there is a host of useful info hidden within these replies….. And thanks for your question,
Benny
In an attempt to use “what’s out there” (i.e. you can check it out for yourself) I dug around in a pile of “climate change facts” as ranked by Google and found something that I think is – a. balanced, b. fair, c. easy to take in, and d. providing an alternate view to the current alarmism around the climate.
https://www.prageru.com/playlist/what-science-reveals-about-climate-change/
It is a sequence of 22 separate “mini-seminars” that tackle several claims made and seeks to shed light on each from a different perspective. If you don’t have an hour spare, please take just 10 minutes to view the following two linked offerings from their list of 22 videos.
The fourteenth one is titled “What they haven’t told you about climate change” –
and the nineteenth is “The truth about CO2” – https://www.prageru.com/video/the-truth-about-co2?playlist=what-science-reveals-about-climate-change
There are twenty other videos to view (each about 5 minutes) if you find you appreciated the content – the above two I thought were a good place to start. A comment I heard in one of these two videos that stood out was this:-
“This does not mean that climate change is not an issue, but exaggerating the threat does concentrate our resources in the wrong areas.”
So you see, this group are not denying anything, but instead are focussing on a common-sense approach – providing far more light and far less heat on the subject than many others do.
Over to you though. What did you think?
Benny
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This reply was modified 2 years, 6 months ago by Benny. Reason: Adding links to accommodate changes at the source
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This reply was modified 4 years, 2 months ago by
