[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

May 22, 2009 - 3:07 am

Hi,

I have a question about purchaing commerical properties though SMSF.
We are in the process of setting up our SMSF and are looking to purchase a commercial property which our company will rent from.  We have enough cash to purchase this property outright.  My understanding is that if we needed a loan to fund a property then we need to set up a bare trust.  My question is whether I am allowed to use the equity in this first fully finded property to purchase a second propert which we'll need a loan for? Secondly, if we can use the equity, whether it is best to set up the bare trust now to purchase the fully funded property rather than purchasing it under the fund name?

Thanks!

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

January 10, 2009 - 9:15 am

This hasn't much to do with property investing but we have a fairly complex trust structure for our busines and one thing I didn't realise until I put in our first bus tax return is that any money you make in the trust has to be distributed to you personally and that means that it increased my personal taxable income for the year. ie. more tax   Anyway, it' s not a big deal but may be worth investigating this when you are setting everything up so that you can distribute any income you make without increasing your personal tax.  There are many trust structures though.

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

January 10, 2009 - 9:03 am

I run my own business and i think the easiest thing to do that doesn't cost a lot of money and most businesses fail to do is to look at what your competitors are offering and offer the same things they are and make this the basica minimal of your business.  However, make the most important thing you are offering something that no-one else is.  I look at what they are not offering and see if it fits into my business model and how much it would cost me to promote this and make sure that everything I do, from how I decorate my shop to training my staff, our mission statement, marketing, what I say on my website, etc,  are all consistent with this one thing that I am offering the others are not.  It does take more time to build up the PR and word of mouth but I think it's worth it as after a period of time, you are no longer competing with your competitiors!  I like to think I don't have competitors because what they offer is one thing but what I give my customers is of a totally different level so when they want what I'm offering, my business is the only one to call.

Sorry that it's a bit abstruct… when I first read about this in marketing books, I understood it conceptually but it has taken a while to fully "get" it but I'm glad I stuck to my guns as crazy as everyone else in my business thinks I was, it's paying off for everyone. I think it's ok to be creative and go against the grain in business, in fact, I think it is crucial.  Don't copy what your competitors are doing, do what they do but make this an unsaid minimum, you must do what they are NOT doing.  I've stopped having to spend money advertising as the majority of my customers are referred by other customers!  I've only been in business for less than 2 years.  The only advertising are token so the public don't forget me whilst they are being drowned by expensive desperate attempts by my "competitors".  You must take time to do the thinking of this one goal/mission before getting too carried away with writing your website and having it end up like everyone elses.

I agree word of mouth is the most important thing but you must remind your customer to refer or they forget!  If you are passionate about what you do, don't be shy voicing it even if it's cringe worthy, most customers appreciate that you are honest and passionate.

What can your real estate agency website offer that others do not?  Off the top of my head, as I search property websites all the time, I would say maybe independent advice on investing.  Maybe you could provide a link or have a specialist hooked up live to answer property questions and advertise this.  Make sure that you add to your mailing list through your website, a good way of doing this is to provide free info guides but make it that the reader has to leave their details or join your mailing list, etc.  Spend time designing and putting a section on your website that actaully helps people without immediate financial gains for you or your company, ask them to bookmark that page and make this your most important section of your website, and this will keep people coming back and even referring it to friends.

Also I use magicdust.com.au – they are a website design company and i love it cause they produce a professional looking website but I can upload my content at any time I want.  I don't have to wait around playing phone hockey with some graphic designer which I don't have time for (too much passionate mission statements to think about ) .  They are reasonably priced as well.

Good luck!

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

January 10, 2009 - 8:39 am

Hello Chris,

Thanks for your post – we are looking at investing in a commercial property and this will be the first time we are looking at purchasing a property.  It's relatively low risk for us as the property has a potential tenant already and also we are looking at renovating the existing flat attached to rent to our own business so at least one third of the tenancy is guaranteed, so to speak.   I am interested in the hidden costs that you mentioned and would appreciate you going into more detail so I can do a bit more research.  The building is heritage listed and based in tasmania.

Would apprecaite any inputs you might have!

Regards,
Heidi

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

June 16, 2004 - 1:08 am

Hi,
I found that the best way of staying focused on the task is if I can summarise the essentail points of each topic onto one A4 sheet!! This way it is a bit of a “challenge” becasue I acutally have to understand what I’m studying and I stay interested in the topic and not get distracted. Also, it is easy to memorize A4 sheets but seeing as you had to really understand the topic before you can summarise it on limited space, it’s actually not that big a task to remember it. The bonus is when you are in the exams, most questions are aimed at the speciifc topics covered in the course, you can just reporduce your A4 diagrams/flowcharts and get pretty much full marks. Go to a library so there are no snack/TV/internet chat breaks… if you have to stay home…try some crazy Mozart music…apparently it helps with neural firing?!
Good luck!
BusyBee

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

April 19, 2004 - 6:49 am

Hi Marianne,
I’m fairly new to this game as well. I was so excited after reading Steve’s book and then started searching with no sucess. But in the last couple of weeks have started to find some properties that are “closer” to the rule. I agree with the others that they are out there but I guess you just have to go through the “journey” of learning where and how to look. Good luck. I’m still at it!!
BusyBee

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

April 14, 2004 - 6:02 am

Hi Pisces,
Like you, I have many dreams and goals. I work full time at one career but have about 3 others I want to achieve. I don’t think there is such a thing as being too busy. I know friends of mine that work less than half the hours I do and somehow manage to do a lot less than me and then complain about not having eough time to do the things they really want to do! I think sometimes the less time you have, the more efficiently you need to manage it and so you end up achieving more.

Maybe as well as setting your goals, you could try setting a timeline. I find that if I say to myself “by the end of this month, I would like to have done…. in this area of my life” I tend to be motivated and stick to it. And, just take it little steps at a time. Then before you know it, you’ve done more than you thoguth was possible to being with.

I also find that surrounding myself with people that pushes me to be better to be helpful. When I see my freinds working hard to achieve their dreams it motivates me to cathc up with them!

Good luck!
BusyBee

[BusyBeeParticipant@busybeeJoin Date: 2004Post Count: 8]

March 18, 2004 - 2:52 am

Hi Tycoon,
My partner and I have also recently read the book and are starting to look for these properties. We are having trouble finding them too but believe that they are out there. If nothign else, at least the book has gotten us off our butts and made us both have a serious think about our financial future and quest for freedom!! Good luck! Heidi