[JustinMember@justinJoin Date: 2003Post Count: 18]

September 5, 2003 - 9:26 am

Congratulations Terry,
Its been great reading your posts on this forum and others. Thanks for giving so much help to all of us.
Cheers,
Justin

[JustinMember@justinJoin Date: 2003Post Count: 18]

September 5, 2003 - 9:14 am

Again!

Steve sure is a busy little beaver….

Thanks Tass

Justin

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 29, 2003 - 7:54 am

Hi Jackie,

There are many ways you can look for cashflow +ve properties, and they exist everywhere, it just depends on what strategy you use as to whether or not you can make money out of them straight away. For example, if you condidered providing vendor finance (eg wraps or lease options) you would have no problems. Its definitely harder to find +ve cashflow properties as rentals, but it depends on how and where you look. Try RE Agents, the Internet, Newspapers, Personal Fliers, Knock On Doors, Investment Groups (like this one) etc etc.
As for rising interest rates, hopefully it happens slowly, rents increase, and you’ve paid off some extra on your mortgage, then you’ll be ok. Worst case scenario is prices have risen a little and you can sell, no problem.

Hope this helps a little,
Cheers,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 29, 2003 - 7:42 am

Hi Guys,
I know a great way to save the dollars…

go and live with your parents….
They’d love to have you around, and no mortgage, bills etc etc
hahahaha!

just kidding []

Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 25, 2003 - 1:45 am

I agree with M Wombat, if this deal is as good as you say it is then find a way to get a win-win situation. Like the experts say “Its all about people”, find out how both you and the vendor can resolve the termite issue such that your both happy. If you ask, the vendor might even offer to pay for some or all of the costs of repair. You never know what can happen until you try!
Best of luck,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 18, 2003 - 3:12 am

Hiya Boothy,

I think you have to decide what you want out of the properties. If your chasing good capital gains then maybe north is better, however if your after neutral or positive geared properties then maybe Armadale is better. There are many different strategies and each one works differently with every property. Once you work out what you want out of your investing it is much easier to decide which strategy, and which property, suits you.
After saying all that I agree with David. North is the better option. A good home in a good area will always perform better in the long run, just make sure you do your due diligence. Know what your getting into and have a strategy to get out if you need to.

Good luck,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 17, 2003 - 2:05 am

Hiya Mickeydrippin,

Sounds like your ready to jump into the investing game, thats excellent. Firstly though you need to work out what you want to achieve from your investing. That is, do you want to obtain immediate passive income, capital appreciation or tax reduction etc. Then you can work out what is the best strategy to achieve those goals. Like Minimogul said, there are many different strategies. You need to find the strategy to suit the properties you find, and the properties to suit the strategies you are comfortable with.
For your $320K units are they able to be renovated cheaply to improve the value, maybe you could sell them again, or increase the rent??
There are positive cashflow properties in every area, have fun finding them.

Best Wishes,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

July 1, 2003 - 3:42 am

Sounds to me like you’ve got it all worked out. If you can use the extra cash more effectively over the next 5 years then go for it. However are there any fees associated with converting the loan from I/O to P&I and will that eat into any benefits?

Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 30, 2003 - 2:17 am

Hiya 2day,

Using a trust with a corporate trustee gives you multiple benefits. If your going to continue to purchase more IPs then you should use one to:
a. minimize your tax by income splitting to those in the family with the lowest income tax rate,
b. protect your assets if you or a family member are sued,
c. control the IPs without actually owning them.
Once the Trustee (usually a company of which your a director) decides to distribute profits (or losses), the beneficiary receiving them can do whatever they like with that profit (or loss), its passive income and theirs to spend, save or reinvest as they see fit. Of course they do have to pay tax on the amount distributed at their current tax rate.
Please check all this with a professional before you get started.

Hope this helps,
Cheers,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 29, 2003 - 9:18 am

Cheers,

I really should open my eyes a bit wider before I post questions!!!

[]

Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 29, 2003 - 9:12 am

Hiya Richmond,
I guess what I got out of it the most was the differences between the city and the country, and just a general lesson in experience, since I’m still a novice.
There are VERY cheap properties ($40-$50K) on government leased land available, however after 2014 the lease is up. The only information I could get, having not yet contacted the council, was that if they decide they want the land back it is up to the owner to remove the property. At the moment though the rents for this land would provide positive cashflow.
Also there are cheap ($65-$75K) properties around that rent for $125 to $135 per week when in good condition. Almost positive but not quite unless you put in a big deposit. My feeling was that these would be great for WRAPS or lease-options, but thats not my thing as yet.
Prices have not jumped in Geraldton at all in the last 3 years according the agents I talked to, and apperently it takes 1 to 3 months to sell most properties.
There is a new mariner being built as we speak though I got the feeling that its not going to be finished anytime soon. This may attract more people to the town.
My opinion is that its a great sea-side town with plenty of potential, but its not being realised just yet. As Stuart the Guerilla Negotiator says, If its near the water, on the water, or can see the water, it will be worth something one day.
If I was into vendor financing I would advertise for clients up there first and then find the properties second, as there’s no rush on them up there yet.
Can’t believe I just wrote so much []
Hope it helps mate,

Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 28, 2003 - 1:23 pm

G’day Andrew,

Hope you have a succesful journey and come back with an armload of great deals. Su and I just spent a night 4hrs north of Perth in a place called Geraldton. It was a great experience and a real eye-opener.
Keep on chasing hard mate.
Cheers,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 22, 2003 - 3:10 pm

Hey Hey Choc,

bout time you got in here [] I’m glad I’ve spurred you back into action, now I only hope I can come up with the goods myself. As you can see everyone on the forum is very helpful, this is a great place to gain invaluable free advice and ‘meet’ some great people.
FYI I have been clocking up the miles in Su’s car looking at houses this last week, 10 today (Sunday) alone, and giving my gob some exercise chatting to many, many agents. My radar is up and I’m getting more confident with every home I walk into. Might even have a hot lead on a yet to be advertised triplex block, cross your fingers []
Anyway, congrats on jumping in here, now only one little step more… I’ll race ya,
well only if there’s a profit right!

Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 22, 2003 - 2:49 pm

Jay Cee,

There are loads of people out there with money to invest and no time to do anything about it. Once you have proved to yourself that you can vendor finance successfully then why not advertise for investment partners. Just like family and friends, these ‘silent’ partners can provide much needed assistance and can benefit nicely themselves. Of course you need to ensure everything is professional and legally bound.

Just an idea,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 19, 2003 - 3:00 pm

Hiya Ken,
Cookie is right, nothing can give you an idea about an area other than actually going there yourself and talking to the local agents etc. The cost of travelling (time and/or money) will be repayed by the increase in knowledge you have about the area. Do your research, set up some meetings, then keep in regular contact. If the agents never hear from you again they won’t ring you when something new comes up. Persistence and patience pay off.
Hope this helps,
Regards,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 19, 2003 - 2:45 pm

Hiya Jumbuck,

I don’t think you should be so worried about deflation, it may happen, it may not. What is more important is that you are using the right strategy at the right time. If you were receiving positive cashflow from a rental property would deflation matter that much? Or if you were wrapping a property would it matter? There are many real estate strategies you can use in any type of market. Find one that both suits you and the market and have a go.

Best of luck,
Justin x

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 5, 2003 - 2:04 pm

Hiya Steve,
I think like many tables our group floundered early on in the game by wandering around without a plan. But we soon got our act together and realised what our prospective tenants/buyers wanted, and then jumped in line to buy a house……. and never got any further.
We all had lots of fun though, and I know I personally learnt alot, both from our initial inaction and also simply by watching others as they questioned, bargained and listened to the different role players.
Thanks to you and the team for an awesome weekend!

[JustinMember@justinJoin Date: 2003Post Count: 18]

June 5, 2003 - 1:49 pm

Hi Sebastian,
Count me in also. To answer Andrew, I think we each make ourselves successful, however with a group of like-minded friends helping we have the power to achieve great things. Simply by sharing ideas and experiences we all grow.
I was one of the lucky Perth people able to attend the seminar and it was fantastic! I met Traceyimb there (Hi Tracey) and one of the most important things I learnt was the need for contacts/friends/investors. These people can guide us, warn us, assist us, and we can do the same for them. In the process everybody benefits. Setting up a Perth investors group is a definite goer.