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Engelo 10,
Do you live at home with parents or do you live in your own home….. I think no one has brought up this point?
Mate once you move out your going to need a bit more just to pay the bills, debt, food and other expenses.
As for a big rescession mate where 100% heading in that direction. We organise all the importing for alot of the big giants and there about 60% down from last year.
Also engelo have a look at real estate.com and look at rent prices over the next 6 month there all heading down.
Jpcashflow | JP Financial Group
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Hi all
I love active topics. Engelo mate im glad to see you having a crack. Im 27 and have done very well from property. I bought a small business and every one said nah its to risky or bad timing. Im working very hard to keep my business going in fact I work some where else and my fiance runs the store. If you do some thing wrong or the property values go down who cares. Your giving it a shot and that counts.
You only fail if you don’t try.
But I must agree you might of bought the property under 20k market value but if you bought it for that much then that’s what the house is worth. There are alot of empty properties and rent has dropped a bit as well.
Just keep in mind rates, insurance, elec and gas water and cost of maintance have been going upBtw keep it up
Jpcashflow | JP Financial Group
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Hi Guys,
Maybe Terry you can provide a opinion on this:
Current Situation:
Home Loan: $109,000K = $645.00 per Month in RepaymentBussiness Loan – Two Splits Loan
1) 285K – Intrest Only – $2000.00 Per Month
2) 275K – P & I – $4000.00 Per MonthSecurity: Using My Home Loan – 109K valued at 410k
Parents Home: Loan 158K valued at 360KCould this be done Instead:
Sell the home where living in: But sell it to another company? for example for 385K
With the profits pay of the Bussiness Loan of 275K – Save 4k a month in repaymentsHome loan would be 385K but repayments would be less?
Could this be done??Could this be Done:
Jpcashflow | JP Financial Group
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Hi nice post
I used to work in real estate and I did very well to. To be honest every area and market conditins require an agent to sell the home differently. The way I value homes is by doing to things. I show the vendor what has been sold in the last three months in the area by every agent and also show what we have sold in the last three months to.
For example if I feel that vendor home was worth between 350 to 380 I would market the home for 395 to start with
If you get no response then you have to be honest with the vendor and tell them straight out.But I agree with you always try higher price I’ve sold plenty of homes for higher prices.Jpcashflow | JP Financial Group
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Hi terry you are right!!!
I work 35 hoours a week and i get all my expenses paid for plus a pretty good wage. After i sell my bussiness im going to focus on investing again.Well il keep use guys posted on how we go with selling the shop they say tatts store usualy take up to 6 months to sell.
Jpcashflow | JP Financial Group
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Hi Guys,
The last couple of nights have been great. I had sat down for a few hours and planned a exit strategy and bussiness plan.
I think i got a bit anxious becasue its my first bussiness. The bank said your not going down you just need to manage the cash flow better.So we have done a few things to make our overall cash flow better
Personal cash flow: We have cut down some expenses – And we are getting married in 6 weeks even though we are having a small wedding we have also cut more things.
Are overall cash flow for home is great.The shop: We have cut some cost down – Also we know what our budget is per day so any extra profit per day will go towards the loan.
We also have our shop on the market so as long as we can pay the loan and other things back wll move on.
Its been hard on me and my wife a bit of tears here and there but at 27 im very proud of what i have done. After we sell the store i think 1 year off from investing and just focus on the career.
Cant wait to the future
CheersJpcashflow | JP Financial Group
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Hi Terry,
At 27 i am being tested. I have learnt alot in the last year in owning a bussiness. There is no equity in the bussiness becasue we have only had it for one year.
Our Home is being used for secuirty and we are trading as a company under a trust.
what do you mean by should be very careful now that you do not commit any illegal acts such as trading while insolventIts hard to imagine that banks are meant to be partners and when things get tight they bail on you.
We have the bussiness on the market but we feel like giving the shop to the bank and say here ya go if its that easy then do it.You have any advice???
Jpcashflow | JP Financial Group
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xdrew wrote:With loans … its a market and you gotta remember that.Someone offers .. and someone accepts. People tend to think the banks are the only people offering money.
A couple of my recent deals are boring on paper but exciting in fact. I went around the student units in melbourne (you know the 'unsaleable' ones) and just ticked the ones who now say VENDOR FINANCE. And i went around creating a series of deals gearing these places at close enough to 8%.
It means my responsibility now lies in servicing the loan with the VENDOR and not the bank. It means i'm getting approvals. And it means the loans are geared on OPM. And thats how you make money.
Will the properties be hard to sell in the future? Yes .. but not impossible. Will they increase in price? WHO CARES. I'm almost guaranteed that the income from them will increase over a number of years .. and that will validate my deal.
Once the banks say no .. you have a stack of other possible options. Think creative .. and negotiate. Often if you have the capability to make a property work and the vendor cant .. he'll allow work to be done pre-settlement. If you have equity to 50% there are solicitor's funds.
Dont just write out a deal on paper and discount it because the banks say no. In my early years of investing I kept getting knocked back because my income was considered 'too low'. The fact that my rentals were enormous and geared to a point that created a small income on paper .. well .. the banks really couldnt care less. They were looking for their 'facts'. And I was looking to minimise on taxable income.
Work the deal. Think the deal. Write up your options on paper BEFORE you approach a bank.
And dont rely on luck. Rely on creating your own luck.
Hi Xdrew are you based in Melbourne???
You have some great post.Cheers
JohannJpcashflow | JP Financial Group
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Hi Guys,
This is such a common issue at the moment. I work full time and my wife owns a small bussiness as well. We dont have much debt but banks have tighten up 100% i think some times its a good thing.
If the banks are ledning money ask why? and then fix it….
Good luck
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Hey guys
We have all made losses. Its not easy no one said it is. But in bussiness we cant always win. Investing is not just for people who want to win. Its about learning.
If your painting a room and you fall of ladder what do you do? You get back on the ladder and start painting again.
Turn this loss into a lesson and turn this lesson into making money in another venture.Cheers
JoahnnJpcashflow | JP Financial Group
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Hi Sam,
This is a very common problem. I had the same problems with a property i had in Melbourne. I worked in real estate and last year i started to notice the market really slowing down so i sold and just broke even.
There are alot of homes out there on the market and alot of homes out there to be rented. What can you do!!1) Take your home of the market for one month – You have to make a firm descion on your either going to sell it or rent it.
2) Doing both will confuse any buyers out there
3) Go with a new agent and cut your losses. In life we make and we loose money but more importantly its the lessons we learn from it.Im in the same boat again with a bussiness we own. My wife runs the shop and we have it on the market there is plenty of buyers out there but not much banks willing to lend.
The market place is going through a tuff time but stick to your guns for some reason in Australia we tend to worry about Money to much. We loose focus on everyhthing else.
Worry more about learning and results will come.
If you need anything please PM me.
Cheers
Jpcashflow | JP Financial Group
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Hi Everyone, I used to work in real estate and I remember for a good couple of years the demand was very high and supply was very low. It’s true that a lot of the buyers where Mum and Dad investors who got caught up in wealth creation “etc”.
Why has the market slowed down? This is just my opinion I am no expert. 1) Price of homes are still overvalued 2) A lot of people cannot get loan t o service the homes because of high cost of living and other factors3) There are so many homes for lease that its not even funny. I sold a house to a guy in a great located two years ago I bumped into him last week and he said his house has been for rent for a while and even at a very affordable rate he still can’t get it leased out. 4) A lot of people are loosing their jobs and business have slowed down a lot Everyone looks at things different. I own a business and work full time some where else but my goals have changed so much in the last year or two. I went from being a person who wanted to own so much property to a person who want to pay off one home (Which is almost done) and invest in other investment that may get me greater returns. If I see a property for a good price would I buy it? I wouldn’t even dare. Why? Unless it provides me with a positive cash flow im not going to use my money just to have another home.Jpcashflow | JP Financial Group
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Hi
I have looked at this before. The only thing that stoped me moving foward was that all the banks have therw own atms and peoole always.want to use atms from the bank to avoid fees. So not a good option plus there is no capital growthJpcashflow | JP Financial Group
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colinnewland wrote:Can you add value to the business? Reduce the floor space you need and rent out the remainder.Refinance the loan to an interest only loan; that will reduce your monthly payments by about $2,000/Mth. = cash out reduction of 25%…not to be sneased at. This will also make it more attractive to a buyer if the business cash flow is reduced. Reduce other costs as much as possible. This will also make it more attractive to the banks to provide finance to a new buyer.Once you have removed the business debt, look at using the equity in your home plus the 'profit' from the sal of your business to really devote your time into property investing. I am sure thatyou can easily replace the $45K/Yr with 1-2 small reno deals.
You need to set yourself up as if you have already lost your $65K/Yr job.
Hi colin
i agree with you: we are in the procceas of restructing the loan
i really want to focua on property and also create a postive income
once we sold were only moving fowrad to greater.and better thingsJpcashflow | JP Financial Group
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I agree with both. We have put in the market but its been slow
any one want to buy it lol
Jpcashflow | JP Financial Group
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Email Me | Phone MeYour first port of call in finance :)
Hi George, Your not the only one out there who is experiencing this. My wife and I own a Tattslotto shop in Melbourne.We do a range of different things:· Dry Cleaning – Has slowed down· Cards – Been very busy· Tattslotto – Busy· Gifts and toys – Up and down like a yo yo· Jewelry – Very slow
Its so mixed I know the government blames the “ net” but I do sales and marketing for a freight forwarder and we do work for companies who own online retail business and there very quiet too. A lot of people simply don’t have the money to spend. Im only 27 but one thing is to always look at the positive. There are people out there who don’t even get to eat or Live. So at least where above water and in a recession there are always great opportunities to increase wealth. Good luck and if you ever need anything please feel free to email meJpcashflow | JP Financial Group
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Hi
I totally agree with you. I know people harp on about negative gearing "etc". But one thing my accountant has pointed out to me is that if you have to outlay $300 a week from your own pocket to manage to the property your not going to get the whole $300 a week back from your tax.
I think the aim of investing is to create cash flow not drain your cash.
Jpcashflow | JP Financial Group
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Hi Intrigue,
Hope you are on the right pathto getting your property.
Mate just had a look at what you have been saying very intresting. I used to be a real estate agent but i only did it to learn not as a career. The moral of this is that every time you buy a property you are either going to pay to much or you got it for a bargin. Thats not important i think whats important is what have you learned from this?
EG: Im 27 and bought my first IP on my 21st B day. I paid 185k for a home that was advertised 190k after i got it my freinds and family said oh you paid to much. 3 years later i sold it for 320k. i also bought a second IP later on that year. It was advertised for 260 to 280. So i paid 285. Why? I looked at the property from a long term view great location, full renovated, 900 sqaure yard etc.
3 years later its worth 450k valued from the bank not an agent. What did i learn this time? some thing different again.If you really want to get a property just get one and learn thats all you can do. The longer you wait the harder it becomes and if you never by one you will never learn.
If you need a hand on a property that you are getting please email me or private message you can i help you through the process.Cheers
JohannJpcashflow | JP Financial Group
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colinnewland wrote:You can write up your offer in the following term: …this offer is open until date/time OR a shorter period should I recieve acceptance for any other offer.
This allows you to submit several offers at the same time with the confidence that you will only be obliged to settle on the first offer accepted. Make sure that you also include the Date AND Time of acceptance in your written offer.
Just to make sure, you also withdraw all other offers via email before you recieve any other acptenaces: you do this at the same instance you get your first (and now only) acceptenace.
It also puts a 'little' pressure on the seller to make a decision.
Never be put off by any agent suggesting or refucing to immediately submit a written offer to the seller. They may 'suggest' that they will not be able to submit the offer until after normal work hours to the seller….thats BS in todays mobile phone/TXT/email world. If the agent does dont have immediate access to a seller I would be surprised.
You may also like to confirm with the agent as to how and when he will communicate with the seller. You may suggest that he phone the seller in your presence.Hi Colin,
Just looking at your above quote. Have you ever worked in real estate to make this judgement? <moderator: delete language>
1) It usualy takes more then one person to make a descion on what they will or not accept.
2) If you put pressure on the seller they will get defensive and they wont want to communicate with the agent
3) people are busy at work and a smart agent will always present the buyers offer in writing in person. Seeing a offer infront of them has a higher emitional value.
4) If a buyer says he or she is putting offers on other properties and needs a time back you will find that most agents will think that you are just looking for a bargin and really not 100% commited to buying this home.
5) if a buyer asked me to call the vendor infront of them i would say no becasue i dont submit offers over the phone and most important i handle all offers by person.Last or not least if a buyer does not submit a offer in writing or on a contract of sale then there is no offer to begin with.
Cheers
Jpcashflow | JP Financial Group
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Hi Tim,
I was working as a real estate agent for 3 years. I was top 60 sales person withing a network of 500.
I started at 24 years: First year i was earning 60k – Including retainer and commision
Second and 3rd year i earning 90 and then 110k.I was learnt in real estate was this;
1) The more you made the more expenses you had: My fuel bill every week was out of controll becasue i was listing so many houses i was also travelling alot in one area. Dry Cleaning for suits, phone bill etc
2) Overall i enjoyed it but where i work know i earn 80 a year + Car + phone for 40 hours a week in work. I love what i do more.
Even though i earn 20k less im able to save more becasue i have less expenses.So some times in life i believe its not how much u earn but what u do with your money.
The thing i love about the job was this though i love the property market and im a investor. it has helped me gain knoweldge and know in the future when i do buy more property i will be able to read the play better.
So for me the lessons where far worth more to me then a wage
Jpcashflow | JP Financial Group
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