Forum Replies Created
I agree with Kiwi and Robert.
It seems that you have the deposit and only saw one property.
I certainly will not buy the first one I see. Falling in love is cost in this game.
There are books in the ecconomics section in your local library, go there and read some. They are free. And then you will understand what Kiwi and Rob are talking about.
I started with the 100:10:3:1 rule. Yea, I did went out to see properties. I was amazed how much I learn after I saw the first 50, and put in 3 offers. I finally bought one when I saw the 73th. It was a two BRM unit. The living room was big. I bought it, partition the living room for another BRM, painted the whole unite, change the carpet, and then rent it. You bet that it is a cash flow positive. Yes, it is.
Peter Spann said that Knowledge applied is wealth.
We always have students who just finish university knocking on our door, and said they want to apply for a job as system design. I am sure they are knowledgeable, but we never offer them a job. Why? If you can answer the question, you sure know what to do next, right?
Some people rank seeing the bank manager is second to public speaking.
I would suggest that you go to see a few banks, and tell them what you want to do. They will treat you well.
Your equity is a very good security to them, and you are going to buy positive cash flow. They are more than happy to lend to it. I can see them knocking your door already.
I do not disagree with Robert.
Everyone one needs something to start with.
I do think Pat V will learn a lot as he/she progresses. E.G how to inspect the property, how to negotiate with the vendor or REA, what clauses to put in, how much the property is really worth etc.
Making offers on 10 does not lose your credibility. I know some old dogs in the business, they continue to buy lower than you can image. Does everybody know these old dogs around around? Oh, you bet! But they continue to out perform the new kids on the block.
The Chinese says ” It is still the old ginger tastes hotter “
Yes!You have found gold.
The 11 second solution gives 10.4% that is based on 52 weeks rent per year. What is the fixed interest rate today?
Do remember to negotiate! Get the price down!
It is possible to get 100% finance.
You can ask the vendor to finance 20% too.
I personally think that you can borrow some books from you local library, and then learn it by doing it.
I started with the 100:10:3:1 rule. That is simple enough to follow. Go to see 100 properties, make offer on 10, arrange finance on three, and you will buy one.
If you can afford $25 per week, make it work for you.
Books are just books, you really need to apply what you have learned.
I have friends who have spent thousands of dollars on seminars and software. But they cannot found those properties that meet their criterias. They have seen 20 properties, and are frustrating now, and are about to give up.
I learned it by actually doing it.
The first lesson that I learned was to be patient, be prepared to walk away from a deal.
Everything goes in cycles. The same applies to property. A newbie always thinks today is the best day. There will no be another deal if I miss this one.
This is not necessary the best one. If you don’t buy this one, you miss out only this one. The market is huge out there. You sure will find another deal.
If a deal is just good enough, that means not good. We should always look for a blue sky deal.
By the way, if the REA does not sell, he/she does not get paid. I negotiated one deal three months ago. The REA was prepared to pay me back part of her commission. SSSH, don’t tell anyone.
Oh, you were not prepared to walk away at the begining. This is what got you sign the contract.
The REA always has some story to tell. Hell with it. They don’t get paid if they don’t sell.
I saw a property last weekend. The REA told me that the vendors’ father passed died. They need to money to buy a unit for the mother to live in. I said to the REA that they are very nice people who care for their parents. I am so touched. OK, let’s get on with the numbers.
I inspected the property, and then made an offer. The REA said my offer was too low, they will not accept it. There will be another offer coming in in the afternoon. I told him if he thinks I was wasting his time, I would walk out the door at once. He shutup, and wrote everything down in the contract.
By the way, he did ask me to sign a declaration to acknowledge there is more than one offer.
