Forum Replies Created
Peter,
I have been following your posts and reading your book with great interest particularly around property trusts to create cashflow from equity and thus enabling more equity to be created and more cashflow and so on.
You are gradually putting the jigsaw together for me about the cashflow solution.
This current thread and your last post appear to be arriving at the same point as a thread I started under the getting creative heading called “Cashflow from equity/gurus please”.
If it is appropriate could you take a look and comment please .
I think there will be a lot of interested people in this topic.
Cheers,
GregI have been trying to find out through another post of mine about any successes from people using mentoring courses or support systems such as offered by Jason Whitton or ESC as his business is called .It appears difficult to judge the results from any of theses people as no answers have come from anyone with first hand experience .
Good luck trying to find out.
cheers,
GregThanks for a great response everyone .Great info for further research into this idea.
Freedom Finder if you read again my no 2 strategy I have factored in the $150 k from elseware and covered the cost with my rent .Which will leave aprox $350 k equity in the deal .
So if I can extract a reasonable cashflow out of the equity will enable me to live and do more the same.
Derek it sounds like you may have an insight into what I am looking to do.
I will send you a PM.
Any more info would be great as I intend find out the facts before acting .
Cheers ,
GregThanks Calvin ,
I don’t think I would be a pioneer .I’m sure this has been done before. I’m just hoping to hear from someone who has done it.
Basically my concept is that creating equity is easy if you can cashflow it . and perhaps creating cashflow is easy if you can create equity.
eg borrow to create equity through improvement or building then borrow the new equity increase it with a margin loan and invested at a higher rate than borrowing cost gives you the cashflow to hold without finding a tenant or in addition to rent depending on the figures.
Cheers,
GregHi Lucifer,
Probably depends on your definition of retired.
According to the Govt I’ve got a couple of decades to go but I haven’t had a real job since 1995.
I am interested to hear more about the mentoring you mentioned .Cheers,
GregThanks for your replies Kay &Wez.
Kay I am not talking about a private mentor though that could be an amazing situation if it was available.
If you read back through my posts I have named the companies I have in mind that I am aware of and I am asking what people think of their mentoring services and I am asking for responses from those who have actually been involved .
We are taught to do due diligence on everything we do so it makes sense to ask about peoples experience in this area.
I guess it is pretty clear that no one reading this forum has any such experience or at least is not prepared to offer it.
Maybe the gurus could comment as none of their graduates appear able or willing.
I think I will go ask on Somersoft.
Thanks again for your response Kay .
GregThanks Terry ,
I dont recall seeing an actual figure for the margin loan in Peter’s book , however I was under the impression somehow from figures i saw somewhere that he was possibly doing it at 100%.
I dont see why I cant use the equity in this situation to make the development self funding.
You might have seen I have asked in other posts about results from being attached to the various Gurus who offer mentoring /support services.
These are the sort of things I am hoping to get help on as like you I am making guesses and assumptions whilst searching for the whole picture.
Surely someone has been under the guidance of a guru.
Are they all sworn to secrecy ? Or have they passed us by and have no interest in forums ?
I’ll keep asking .
Cheers,
GregThanks Wes and Trisha for your replies.
Your thoughts are very similar to mine.
There hasn’t been any replies of actual experience of using a mentor as I have asked.
Everyone seems to want to know what I expect of a mentor.
I have just done a detailed list of my expectations from a mentor but it disapeared in cyber space and now I’m short of time so a short version follows .
I think a good mentor (being a proven successful person/company) would have access to competent professionals for accounting /financial planning /legals rather than me finding out too late that I had chosen the wrong advice(benefit of hindsight).I would expect through a process of analysis of current position ,current knowledge and investing objectives and plans to be able to come up with an investing/financial plan to be implemented monitored and supported with the assistance of the mentor .
Hopefully therefore avoiding the pitfalls of being new to a strategy and hopefully speeding up the process with a greater degree of safety and success.
What am I trying to achieve.
1 Speed up the whole process.
2 generate extra cashflow from equity to fund further aquisitions and remove the need for a day job.(through cash generating investments not neccessarily property)
3 create equity from building projects and subdivisions possibly recycling the equity into cash generating investments possibly at time of initial funding to help cashflow holding costs and negative gearing
4 possibly use equity to create a covered call cash generating system to fund income and further aquisitions.
5 buy and holds renovations ongoing.
I have done lots of calculations on these strategies based on my current knowledge and experience and it looks good .
I am very aware that it is hard to ask about what you dont know about so I think a mentor who has been down the path before me could be a good investment.
Cheers,
Greg [buz2]Monopoly ,
I think there is a lot more to property investing than just property investing .It now appears to me that with the right mix of managed trusts and shares , covered calls etc that I could rapidly move ahead from where I am.
I am hoping to find someone who knows how to link all these in the correct balance of cashflow and capital growth inthe correct structures. I think I know the right people to do this through ,however it seems prudent to ask if anyone has any experience to share.
Cheers,
GregMaximus ,
You are correct.
There are many facets to investing .
I could just go it alone and hope I have covered all the bases or I could align myself with someone with far more experience so I have much more chance of getting the complete recipe .
I think a well run mentoring program will be able to provide information and support for the little obscure things that can be learned by trial and error but may cost big bucks for any mistakes.
Going back to my original request . I am asking those with experience of a mentoring program to comment on the value of the particular mentoring program.
I do appreciate that many people think they are capable of going it alone as I have already done quite successfully .
However I believe with the right guidance I can accelerate my success dramatically.
Cheers ,
Greg [buz2]Thanks Kay,
I appreciate your opinion.
I do the same and am basically self taught my whole life and done OK.
There are some very experienced people running these companies and I know you can learn a lot from their courses and books .
However I expect you could learn a lot more still from direct involvement in a mentoring or support system rather like Steve did with the group last year . As Steve does not run a mentoring course and these other companies do I would like the opinion of people who have done the mentoring courses as to the value of doing so . I would like to take my investing to a far higher level than I have and really move ahead as quick as I can.
Cheers,
GregHi Kay ,
I don’t see the problem.
I am not asking any of these companies to respond .
In fact I hope they don’t.
I want to hear from people who have used their systems not people who have been to their seminar and thought it was great.
If property Investing had a mentoring program I would think it prudent to ask for peoples experience of that too.
Have you used any mentoring program ?
Cheers ,
GregThank you for your reply Yack.
However you misunderstand what I am asking.
I do not need to know how to start .
I already own several properties .
I am talking about paying for a serious Mentoring system from a proven performer to take my investing to a far higher level.There are many traps for the uninitiated and I think it is prudent to seek the advice of those who have been there before rather than running off half cocked after going to a weekend seminar or reading a book.
I am not asking for someone to show me their bank balance.
I want to know from those who have used a mentoring company if it was worthwhile or not.
What company did they use and did it really help their bottom line.
A fair question I think on a forum about investing.
Could be classified as Due Dilligence .
In particular any of these offering mentoring programmes:
Freeman fox ,
Renovate for Profit ,
Property Millionaire,
Wealth Within ,
Richmastery/ESC,
Any others ?
Many thanks for the help.
Cheers,
Greg[buz2]Do your homework very thoroughly on the values.
There are several levels of commissions on each sale.
Cheers
GregI basically agree with Westans method of calculation except for the 20 % deposit part .
I gather Steve Mcnight calculates his pos cashflow after 20% deposit as well.
I believe you must add into the equation the cost of your 20% deposit as well .
No matter where it comes from it either costs you money or doesnt earn you money somewhere else once you have used it .
In Westans example I would be adding another say $650 to my cost calculation to cover this .
Without doing something to get a higher rent I would find it hard to see this as positive cashflow property.
Cheers,
GregChad ,
Nothing wrong with property .Got interested people but with low deposits available and banks blanket criteria on small properties is only about 60% LVR means I have to wait till I find a cashed up buyer or do part vendor finance.
holding cost plus possible extra cashflow from the bit I leave in makes me think it may be better to do this.
Cheers ,
GregWhile of course I can’t check your figures you are certainly on the right track in terms of interpreting my thinking on the matter. You may like to check out http://www.somersoft.com/forums/showthread.php?threadid=16897
for additional comments I have made on this topic there.
Thanks Peter,
I have read the whole thread from beginning to end. Very encouraging and rather humorous as well.I am looking forward to the next discusssion with your support staff.
Cheers,
GregThanks Peter,
I can’t find the thread by searching the number.
Is there another way or have I got the right number 16897.
Cheers,
GregPeter,
A question about holding costs.
I have been researching for some time now to work out who is best equipped to offer support in a mentoring role. I keep coming back to freeman fox.
Because of this I sent an e-mail and made a call to your support staff yesterday to clarify my thoughts about cashflow.
From the coversation yesterday I did some figuring this morning and worked out using the 100% equity I have thus accessing 80% of the values of each property placing funds in a managed fund and Using a margin of 70% I should be able to turn a loss making property into break even or positive overall in terms of the investment tied up.
I have just noticed similar comments from you in earlier posts.
Have I worked it out right and is that a correct understanding of your posts.
Cheers,
GregaGeo I only have one .someone made all that money years ago.
