Forum Replies Created
I second everything Adrian has just said. I personally loved hearing Lisa McKinnes-Smith speaking again as there’s plenty of things I can change about how I talk to people.
Already looking forward to next years event in Melbourne.
Dwight
Cashflow Positive Investor
I did use a buyers agent about 5 years ago in Sydney. Being from Melbourne it was good to have eyes on the ground. All we were looking for was a unit close to the city that had potential for capital gain.
We didn’t have expertise in the area so we went the BA route. To be honest I was expecting to be ripped off, but the guy was pretty spot on with his property selections and in tune with what we were looking for.
We were able to put in an offer on a unit that hadn’t been advertised or shown yet. It was pretty grotty so we were able to get it below fair value for a comparable unit (IMO). We did a cosmentic reno and sold about 12 months later for profit.
So I’d say it may work for you if it’s interstate and you’re clear what you’re looking for.
The BA we used was Gavin McPherson from Oasis Property. Google is your friend. I have no affiliation with him but I would recommend to anyone in a similar situation to me.
Cheers,
Dwight.
Dwight
Cashflow Positive Investor
How much do you want the house? What are you prepared to pay for it?
After you’ve worked this out you can take the emotion out of it.
If its a buyers market leave your offer and walk away. There will always be aanother property even if it doesnt look like it right now.
Best wishes,
Dwight
Dwight
Cashflow Positive Investor
I have myself recently purchased a unit that was company title.
As there are possible restrictions on use etc it does lower the price when compared to properties that are strata titled. So I don’t think it’s necessarily a win that it “appears” to be below market value.
As Mick advises double check the company by laws to see if there’s anything there that would be a deal breaker for you. Be aware that the property will be less desirable to any further purchasers so don’t go chasing quick capital gain, you may not get it.
The property I purchased was quite cheap and generates positive cashflow so I’m under no pressure to sell as it pays for itself. Bear this in mind if your situation could change and you needed to move the property on.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
Jamie is right AVS.
A lot gets down to your own personality and how aggressive an investor you are. You’re clearly coming from a position of strength.
They key is not to put your money where you can’t get at it again when you want it. I personally like to put my money in on offset account so I retain control over it and put in as little deposit as I can get away with. This allows me greater flexibility down the track.I also prefer long term P&I loans, because this suits the personality of my wife! It all depends on the mix of your circumstances.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
I love painting when I can. It’s mainly for the emotional investment and getting my hands dirty. It always takes longer than you think it ought to. I’d pretty much back my quality over a yellow-pages job.
But once you’ve finished the job, you say ‘Never again!’ At least until next time…
Dwight
Cashflow Positive Investor
I’m not a mortgage expert, there are others much more qualified who might give some specific advice.
I have however found myself in the past in a situation where I wanted to take advantage of my ‘current’ good income and debt serviceability.
I decided to target positive cashflow and planned to hold long term. With that in mind I borrowed as much as I could from the bank and set up a long term P&I loan. My reasoning was set and forget. As long as I kept up the payments there would be little pushback from the lender.My circumstances might change in the future, but for now this strategy is paying off and I have properties more than covering the repayments so all is well.That’s just what I did and why. You need your own why, your own goal and get some professional advice along the way.
Best of luck,
Dwight.
Dwight
Cashflow Positive Investor
I’ve borrowed from my parents in the past. In fact I currently have a loan from one parent and I’m paying market interest. So to me it’s a win-win. I get access to a little more than the bank will lend me and they get a little more interest than term deposit.
I had a written loan agreement drawn up first and this is the very minimum to ensure that there is an element of recourse should things not go to plan.
It’s also bst to discuss the term of the loan and what you will do if things go pear shaped. Better to talk about it now and make a clear decidsion as to how to proceed. If you wait till there is an issue it will get mighty messy.
If you don’t need the money and the bank is willing to lend to you then yo DO have to considerwhther you’r emissing out on an opportunity to develop a business relationship there.
That’s not my area so I won’t comment, but I think that’s what you’re asking.
Anyway, best of luck.
Dwight
Dwight
Cashflow Positive Investor
I play indoor cricket. It’s great because everyone gets a go, not like the schoolyard days. Even though I bowl pies you don;t have to go fetch because of the net.
Dwight
Dwight
Cashflow Positive Investor
Sorry mba,
for some reason I thought it was your property.
I don’t know about Kempsey as an area or what yields are generally.
I can say that are the kinds of number that I’ve found and would lead me to consider the property as having good potential as a CF+ deal.
I would always get to know the area, physically, at the street level before I purchased.
You can always put in an offer to secure purchase with a ‘due diligence’ clause – something like “The property must meet the buyers expectations in every way etc etc’
I would seek the local (state level) solicitors advice to get it right, but the principal is that you can crunch the numbbers and put in an ofer that suits you. THEN if you get an acceptance you can spend time and effort to verify your assumptions.Cheers,
Dwight
Dwight
Cashflow Positive Investor
The great thing is that you’re thinking about how to do it and seking advice before you take the next step.
You’d be best off to seek out a mortgage broker to get an opnion as to any borrowing power.What you buy is dependent upon what goals you have. The property is only a vehicle to get you to where you want to go.
Do you want chunks of gain or slow and setady cashflow? That’s for you to decide.Cheers,
Dwight
Dwight
Cashflow Positive Investor
Is this a property you’re offering for sale?
I’m not sure if the forum’s quite the right spot, but good luck.Dwight
Cashflow Positive Investor
I reckon Nigel is on the money there. You have to be prepared to do your research and find the right property.
And you need to have it structurally inspected. There’s nothing worse than having to repair thing that really add no value to the property, like electrical and plumbing.
Everyone expects these to be in safe working order, so ‘fixing’ them is not really ‘adding’ any value. It’s better to spend a little in the short term to weed out problems, or at least quantify your possible repairs and negotiate a better entry price.My rentals are currently in NZ and QLD. I’m from Melbourne so it’s important to have a team on the ground you can trust: property manager, bank manger (if OS), building inspector etc to really complete your due diligence.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
I have personally invested in the fund and am happy with the performance to date.
I have no affiliation other than as an investor. It’s a great way to get exposed to the US market without the hassles involved in doing it directly.
My personal belief is that the fund is now bedded in and is very likely to start returning some very good results.
I wouldn’t put ALL my savings into it, but it’s a great set and forget strategy to put a chunk of your hard earned savings into unless you’ve got a better track record and better idea than Steve. I don’t!Cheers,
Dwight
Dwight
Cashflow Positive Investor
I have seen both side of this situation.
The question is: what are you going to do when there are problems like late rental, issues with repairs?
Whilst it all sounds hunky dory in theory, it’s actually pretty hard to do when you live near to or are well known to the tenant.My Mum has been self managing her rental next door and I couldn’t think of anything worse. There’s so much emotional angst when the rent is late and “favours” like doing chores are offered in kind. How do you deal with these things?
I wouldn’t do it myself and would alway advise people to really think hard.
Best of luck,
Dwight
Dwight
Cashflow Positive Investor
I nearly invested in something similar about 12 months ago as I was looking for positive cashflow.
In the end I passed on it and went for something else because I realised I wanted more control over the investment.In my example the numbers look OK on paper, but I was really relying on someone else to manage their investment, so I could then collect on mine.
It’s up to you how you want to move forward but It wasn’t as if there was a hidden catch, more of a decision I didn’t want to get caught up in the “managed” property investment arena.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
Is Don is good!
You need to begin with the end in mind. I hold 8 +CF properties right now and the plan is to sell them if and when the yield drops from the current 9-10% to less than 7%.
Nigel is also right. I don’t think a 6% return is really going to be positive cashlow in the medium to long term.
Best of luck,
Dwight
Dwight
Cashflow Positive Investor
Highly encourage you to take the plunge bigkev as I have done it myself in the past and found it to pay off for me.
If anyone else has the same idea as kev it makes great sense to partner together to get an outcome.Best of luck,
Dwight
Dwight
Cashflow Positive Investor
Hi,
I can also heartily recommend Results Mentoring. If you are serious you need to invest in yourself and doing this program will help you reach your goals.
It worked for me because I was ready and had resources to work with, so it just bridged the gap between doing a deal and doing a “good” deal. I know other members who are more aggressive and can start with a lower base of capital or income than me and still get bigger results. It all depends on your personality and what you bring to the table.
Cheers,
Dwight
Dwight
Cashflow Positive Investor
I know in my own personal case I found it easier to go back to the well when my properties were producing more cash than the interest payments. So, what can you do – target the highest yielding proprties which will make it easier to accelerate you portfolio growth down the track.
It all gets down to your own personal goals. My goal is to go for multiple cashflow positive – (albeit not big money) properties rather than 1 or 2 that might give me a chunk of capital growth.
Good luck,
Dwight
Dwight
Cashflow Positive Investor
