Forum Replies Created
Hi jnaumovski,
I read that book 15 months ago and his other book also…now Steve puchased 200+ properties in the US, so I follow him and bought 3 properties (..after attending few seminars from his.) but that's another story.
You have a plan BUT my problem with it is you don't have a goal.
Before, you start implementing your plan, you have to be CRYSTAL clear what you wanted to achieve through investing in real estate? Again, I ask you this question what is your GOAL in mind? Once you have defined your goal, everything else will be easy.
My advise is to start with the END in mind…see in your mind's eye your finished goal, then it will be down hill from there.
Only you can answer that question. Get back to us and post your goal here and we can start leading you to the right direction.
Cheers
As you access and used up your home equity, naturally, your mortgage payment will also rise, unless you turned your home from PPOR into IP, nothing you can claim from the tax man hence choose your strategy wisely (e.g., positive geared cash flow or positive cashflow or negative geared), because it could affect your cashflow….investment is all about cash flow from my perspective anyway.
Glad I can help….you can easily sort out the good one from the not so good one through regorious interview. Take your time…… just as you would take your time hiring an employee in your business.,………….. and good luck selecting the right one
You can try calling three different real estate agent in Canterbury LGA and ask for their property managers….interview them then go from there.
crusty wrote:DHCP wrote:they wanted more money as they had a higher offer. .
Learn from investors who've gone before us…deal with motivated seller only. I've used that strategy to all my purchases and it worked all the time. So what's a motivated vendor? Seller that is going through divorce, move to different state quickly or overseas for job, financially distress etc., etc., etc.,
They wanted more money because, you dealt with NON motivated vendor – you broke the basic rule.
Guess what? They GAZUMPED You !!!! Learned your lesson?
@richard, i'm more referring to the valuation of the property by the Bank…typically, lenders will lend you 80-90 percent of their valuation of the property, in their own mind, that's how much the value of the propety….but of course, the market will might have a higher value…….you know from your prefession, Banks are conservative in valuation and in lending.
@terry, you're rigth, the vendor can do anthing but if they are desparate (BTW i only buy from desparate vendors), they are happy to obliged. I never buy any property if the vendor is not motivated from experience very easy to deal with motivated seller.
If you tell the vendor to take it out of the market while you are under contract it will prevent you from getting gazump..that's how I bought several properties.
Terryw wrote:To prevent gazumping you would need to enter into a contract. And to avoid paying stamp duty twice you would also need to have the entity established before entering contract in most states, inclduing, I think WA.
So becareful in following this advice.
[/quote]You have to read between the line……..once the offer is accepted (e.g., either in writing or verbal), get a copy of the contract then forward it to your solicitor. Again read between the line…..structure it well (e.g., place the property under a trust not personal name).
For Christ sake, the guy need some valuable advice, all you monkeys telling him WHAT NOT TO DO instead of WHAT TO DO…
He wouldn't be posting here if he didn't need a help….get it!!!!
ANZ, ING etc are some of the lenders that will lend up to 90% of the market value of the property… in Bull market Lenders will lend up to 95% of the value of the property, in Bear market, they are more cautious…
Before anyone gazump you, put an offer on the property preferrably put a small deposit and if accepted, get them to take the property out of the market before it disappears out of your sight.
Then, do your due dilligence (e.g. building inspection, pest control etc). Also, talk to your silicitor to put the property under a trust name for asset protection…. structure it well. Then, speak to your mortgage broker if you have already pre approved mortgage by a bank….and see what's your LVR from your lender. Some Lenders can loan you up to 90% of the value of the property.
Is this your first IP? If yes, then you won't be able to claim any of the cost. If you already have some IP, yes you can claim these costs as part of running costs of the properties.
The four Big Banks here in Australia had started closing down their Branches 8 years ago……
One Bank here ING Direct (not sure if you call it a bank because it doesn't have an office)….all transactions are done online (e.g., opening Every Day saving online, BPAY online so on and so forth).
Foreigh investors investing the US should not complain because that how it is in the US. You just got to accept the reality….Americans are used to it, foreign investors should adopt to it. IF You don't like it, sell your bloody investment properties and move out of the country and head back down under…..problem solved.
There are so much money to be made in investing and ZERO in complaining……STOP bloody whinging and get on with the investing.!!!!!!!!!!!!!!!!!!!
No offence to anyone….Happy New Year.
[/quote]FYI my wife has paid all our bills online for years as.To be honest I can not recall the last time I stepped into a bank years….I only go to my mail box when it looks like it is loaded and stuff falling out. Every thing is done electronically …..
Alex
[/quote]America can send droid into Jupiter to witnessed astroid impact into the big plant, it can send man in the moon and send robots into Mar., therefore US can Electronicalise its Banking system if she chooses.
But, the layer of beurocratics that are the challenges that she needs to over come….simply its sheer market size.
Hello All,
I've been in the IT industry for a decade and guess what's the industry standard for Networking, Systems, Database, Financial Applications etc., all are American products.
It is not so much the 9/11 that stop America from advancing its Banking Electronic system (mind you, The Banking Corporations that started the whole 2008 GFC because of their very complex derivative tools but that's another story), it is more of its market size, complexi rules and regulations and passing of legislation to embrace Electronic system.
If you standardise the US Banking Electronic system, how many Banks that need to comply? Could be Thousands or even Ten of 1000s. From an IT perspective, that is a collasal understaking.
You will need a lot of web page designers, web developers, IT securities engineers etc.., to implement such massive understaking. US has the infrascture but the greatest challenge probably to legislatise the Electronic Banking system (those people in the Congress) then making it law.
Here in Australia we only have 4 major Big banks and probably 80-90 per cent of the population banked with them, hence these 4 big banks monoolised the market…hence if they opted to go Electronic system, everyone else MUST follow….the little players don't have the options.
For our American colleagues, FYI, the following are done here Electronically (i.e., Direct Debit into/from your Bank Account)
Salary payment
Car payment
Mortgage payment
Chilcard payment
Tax rebate (option to receive cheques)
BPAY (electronic bill payment)
Phone Banking
Credit car payment
Bank To Bank transfer (Electroni Funds Transfer)
etc., etc., etc.,Note: There are still companies here that used cheques to pay their accounts, but majority of payments are done Electronically.
In summary, the size of the US Banking system and its complexity and passing of legistations are the GREATEST challenges of America to over come and that could take years before we see American goes Electronic system.
Thanks
There should be few agents (e.g., L J Hooke; Professionals etc) your area that can help you with managing your property. Try contacting three different agents, ask for their property managers.
Hiring property manager to manage your IP is like hiring an employee: Ask for the following questions:
How many properties in your books that are vacant (e.g. 2 % vacancy rate is good)
How many properties per PM handles (e.g under 100 properties per PM is good metric, above 100 is probably the PM is overworked)
How many years of experience the PM been in his or her role (e.g., 5 yrs experienced is a good metric)
Qualification
Backup PM if he/or she is on holiday etcAgain, asking the right questions are critical when hiring your PM.
I recommend you buy the below book by Rachel Barnes & Geoff Doidge. Excellent book on how to manage your IP.
Managing Your Investment Property
Goodluck
jayhinrichs wrote:worldinvestor wrote:CheevesFinancial wrote:Exactly! It's psychological warfare. Keep in mind, these thiefs are not smart. They have the education of a 10 year old. All they know how to do is roll up at night, sneak and snatch. They have found ways around cages. However, cages are working in our area for some. I just chose a cheaper alternative which has worked very well so far.Alex: I know for sure we can't put our systems on the roof.. Raising it a few feet won't help..at least in my area. Then what's that look like? It looks weird. To you, who cares because the system is safe.. To future buyers, it may look a little off…only my opinion. I'm telling you…try these cameras!!
In Australia some people use evap airconditioning, placed on roofs and come in various colours to match the roof and are strategically placed at the back of the house.
Where I live in Western Australia it is not uncommon to see these and I guess we don't give it a second thought as to whether they look ugly or not.http://www.aussieair.com.au/evaporative.shtml
WI
Most commercial properties will have them on the roof as well. I am sure they can be retrofitted to the roof. Not sure its worth it or not.
Depending on the area though we do not bring in anything that can be stolen until the tenant moves in it all happens in that one day. appliances condensers. hot water heater. etc etc.
And when a house is going to sit vacant for a while again depending on which area and market we will go pull the Unit store it then put it back in when tenant moves in, Kind of beat the theiving Bstds to the punch as it were.
Hi Jay,
You know WHAT? You gave me the answer to one of my concerns about the property that I'm about to get it rehab.
I have to buy the following brand new appliances and once the property is all rehabbed etc., I'll just tell the guys to install these appliances while the tenant is moving into the property otherwise, mine as well give my money away to those bastards thieves
Dishwasher
Fridge
Condenser
Hot Water HeaterYou're right, all these appliances can be installed in one given day.
Thanks mate.
As a buyer's agent, a good way to start your market research here in this forum?
Good home Alex. Do you have the finished video footage of this property? i'm interested how the rehab turned out for $15K…I'm sure it brought the inside after rehab looks almost brand new?
I think these companies have their own US Realtors either paid by commission or some sort of pay arrangement. The US Realtors will negotiate the deal with the Bank's agent. These Aussie companies only bring foreign investors in the US, the deals are done by their own Realtors, Attorney, Building Inspectors etc., that what's I've experienced thus far using Buyer's agent.
