[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

July 4, 2008 - 1:49 am

Scamp wrote:

A flip… in this market. Please don't resort to crime after you go bankrupt.

Scamp my theory is that you are actually a very unsuccessful property investor who is envious of other peoples ambition, posing as a knowledgeable investor  If i am mistaken and you are actually trying to give genuine advice why don't you use a little more tact than your comments above.

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

June 24, 2008 - 11:14 am

 Hi Tylee,

What is your email address?

Kind Regards,

David Ball

[email protected]

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

June 24, 2008 - 6:46 am

Hi Tylee,

Whoever exercises the call option is liable for stamp duty. You can assign the option to the end purchaser, they exercise the option and pay the stamp duty, with the 20k spread in your example being an assignment fee. This fee is ordinary income as per the ATO and not statutory income (i.e. Capital Gains).

Regards,

David

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 30, 2008 - 8:14 am

Hey Will,

I'm 20 as well and have been doing my own research for the past 8 months or so. I just wanted to raise the point that there are some absolutely fantastic real estate investment strategies out there some of which you don't need a huge deposit sitting in the bank. Don't think that the only way to invest in property is buying a house, putting in a tenant and waiting for the capital gains. Click on the 'investor HQ' tab at the top of this page and check out some strategies like wraps and lease options for cash flow and flips for quick cash. These creative strategies work perfectly with bringing in money partners to put up funds for a slice of your deal (no money down doesnt mean no money down – it means none of your money down). These techniques allign perfectly with young people who are looking for significant results as long as they are willing to put in significant effort and always ask how they can serve others.

Good point about not getting disheartened when 'professionals' look at you funny and don't take you seriously. Those who can't recognize enthusiam, drive and motivation from a young champion aren't the types of people you want to be hanging around with. Don't forget they are commonly wage earners and aren't searching for more like you are. Be really careful who you take advise from – only take advice from people who are genuinly interested in helping you and those who are successful mentally and financially. When you've done your research and you know what your talking about they'll shutup and realise your the real deal. 

Finally, realise that you won't make any money or create any wealth if you don't deserve it. Its SO easy to sit on an internet forum, to read a magazine, to send emails, to make business cards and flyers, to read books and listen to tapes. Don't get me wrong they are all essential but don't kid yourself that your a property investor when you are only deluding yourself. Depending on what your investment strategy is, you will only make money when you make written offers and speak to money partners – there's no other way. Looking at houses won't put cheques in your account, neither will reading books. Invest in your education but make sure you get out there into the real world and hit your key result areas (i.e. offers) again and again and again and then you will succeed. One of the quotes in Steve Mcknights articles posted on this site said his school motto was 'Spectemur Agendo' – latin for 'By their deeds they shall be known' – how fantastic is that?? Be known as a doer and not a talker like the rest of the world. 

Goodluck champion,

David 

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 25, 2008 - 10:32 am

Thanks Daniel you've been really, really helpful! Shame you don't receive commissions from the website, the buyer beware package looks like a must have.

Thanks again

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 25, 2008 - 10:04 am

Jaffasoft wrote:

OK, well what's your worst case senario risk here? How much time and money do you stand to loose here if you can not sell the property.

And good point about the 'get out clause' absolutely make sure you have a water proof one if you we're to go ahead with it!

Ok worst case scenario is that i couldn't place it with a buyer. Usually i would stand to loose my deposit, but since it's not required, i won't offer them one. I would spend a few hundred dollars on grassroots marketing and advertising (newspapers, flyers, signage), another few hundred dollars on legal and a whole bunch of my time running around like crazy putting the deal together… BUT im getting ahead of myself.
 
If i was going to make an offer it would be $750 – $800k (75-80% of market), 90 day settlement subject to finance and approval of business partner…The chances of the offer getting accepted are laughable but you gotta be in it to win it am i right? The worst that can happen is they say no.

….And now to expose my exact stock of accumulated real estate investing experience to the wider community…. How exactly do i go about submitting a written offer as i have never done it before? Do i give it to the vendors or is it protocol to approach an agent to act on my behalf?

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 25, 2008 - 9:20 am

bardon wrote:

Its only an opportunity if you were getting it below market value and that is not on offer at the moment.

Hi Bardon,

What would you do in this situation? I realise that it's naive to think that the vendors would definately accept any below market offers that i made… Chances are they won't. What i'm trying to ascertain is whether or not this community thinks it would be worth my while making an offer and if so how would i go about it?

Regards 

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 25, 2008 - 9:11 am

Hi Daniel,

Thanks for your comments. I agree that the situation would be prime if we were talking about a $300,000 house in Suburban Sydney where the chances of a quick on-sell are much higher. I literally would not have to money to be stuck in the same boat as the vendor. If i couldn't find a purchaser to assign to within settlement period i would have to bail out using a clause or just not exercise the option if i went down the option road.

It seems criminal to let the opportunity sail on by – no money down, motivated, flexible vendors are music to a real estate investors ears…

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 25, 2008 - 8:01 am

charlie123 wrote:

Hi David,

Thank you very much for your reply!! Would it be possible  to set up a number of unit trusts  for different projects  with each containing  20  investors and still be able  to apply  the S708 section of the corporations act?

Best regards,

Charlie

Hey Charlie,

If you nominate a company (or more likely a series of different companies) to be the trustee of the unit trusts, my logic says that the company is still the entity raising the funds and the Corporations Act 2001 still holds.
 
At $600+ for each company and $250 for the trusts you should factor in the potential administrative/compliance nightmare. I'd check with your legal team before you register anything.

Regards,

David

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 23, 2008 - 9:41 am

Scamp wrote:

– Risk buying a double-mortgager : You will auction off the first mortgage, then you find out that in order to GET the property you need to pay off a SECOND mortgage. This can be especially painful.

As a last tip : Remember that people who are being foreclosed are by definition people without money. They have thus not done ANY maintenance to their house for the last 2 years at least. Usually the people being foreclosed are unreliable and irresponsible. You can thus expect the house to be in a very , very bad shape.

Hello Hayley,

I'm new to property but i just wanted to add my two cents regarding the above so your not scared off…I've been studying John Burley's materials who deals alot with Veterans Affairs Repos (i wish we had these in Australia!!)..

A) you can get a title search for about $12 dollars which will show you what type of liens/notes/mortgages/debts are on the title of the property… If you find a foreclosure, search its legal description (which you could get from public records i.e. council websites or RP data) for peice of mind…

who cares if the property is in complete disrepair.. I would love the opportunity to buy such a house in Sydney.. You mentioned creative investing i.e. thinking out of the box… One strategy ive studied is to control houses that are not in the state to be occupied, cut the grass, sweep the floor and sell it to a property investor who specialises in renovations and fix ups for a profit. If you can buy at 40-50 cents in the dollar because its in such bad shape, someone will buy that off you for 60-70 cents if you sell them the vision or idea. They may have the reno skill set that you dont… One investor i was listening to buys properties that were used as Crystal Meth labs, sorts them out and sells them at a 30 cent in the dollar profit.
 
If you look for reasons not to invest you'll find them. Scamp is the same person who said everyone who posts on this forum is 'not smart enough to do it anyway' and told everyone that if they want to be investors they should invest in economics study and purchase gold.

One of the most valuable things ive ever heard was from Think and Grow Rich and it says ''Opinions are the cheapest commodity in the world.  It is characteristic of people who have but a vaneer of knowledge to try and give the impression that they have much. "

Regards,

David

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 21, 2008 - 5:50 am

Hi Charlie,

If you have a look in the back of the Sydney Morning Herald every saturday under the 'Money wanted' section there is a whole list of people who place small ads advertising for investors similarly to what you described above.

Are you personally trying to raise funds under your own name or for a company that you control? If your fund raising under a company structure head to S708 (small scale offerings of securities) of the Corporations Act which states that there is a 20 investor ceiling as well as a $2 million cap. The section goes onto to include a list of exemptions for disclosure including sophisticated investors, offer through financial advisors,  professional investors.. If you comply with these requirments you don't need to lodge any disclosure with ASIC. Thats not to say your investors won't want a PDS for their own information anyway. 

Securities under the Act is taken to include shares in the company and debentures issued by the company. From your description above it sounds as if you would be issuing a debenture type security.

I knew company law would come into handy one day ha-ha.

Best of luck,

David

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 14, 2008 - 1:32 am

Northern Crest is the new name for Blue Chip Financial… I can't see into the future and im not a cynic by any means… All i know is that i bought BCF at $0.34 and after a huge trade debtor went bad and an extensive trading halt my shares are now worth $0.09 for an impressive 75% loss. Hopefully the only place 'they are going..downunder" is UP!!!

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 13, 2008 - 1:26 pm

Sorry Scott i don't quite understand. Wouldn't the vendor going into foreclosure mean that even if i did exercise my option they don't really have the capacity to give it to me – because the bank is now in control over what happens? 

On a side note, when they agree to give me the option, does that get put on the title? Does it have to be recorded in court / by a solicitor that they have done so?

Regards,
David

[davidcballMember@davidcballJoin Date: 2008Post Count: 19]

May 11, 2008 - 10:50 pm

Hi Paul,

For the new people (like me) what is a lockbox?

Regards,

David