[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 10:32 am

Hi all

I think the quote muppet provided by Andrew King has some validity. He says to work out what yield you are looking for, and then apply that to work out the price you are willing to pay.

Fair enough. Steve McKnight maintains the 11 Sec Solution is a ‘filter’. He uses it to indicate what properties in all likelihood will be positive cashflow. Some will drop out when high body corp fees etc. are factored in. Some other properties that don’t quite mee the 11 ss could make it due to lower costs.

It’s just the way you look at it. We can try and discredit others ideas, but why not take them on board and as Joseph McLendon III (a Tony Robbins trainer – really top guy) says, instead of saying ‘I don’t think so!’, say ‘I don…. hmmmmm, something to think about!’

cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 10:19 am

Noting that the costs above suggest you need an income of at least $2000 to cover fees, surely even if you only had $10000 invested which earns 21% you come out in front. Which is still better than commercial funds which are negative, plus fees.
We started with $30000, and only made $3000 in 6 months, but will be making 30% return on our cash for this year, with a possibility of more. This easily covers costs, and keeps the fund building purely through earnings, let alone any contributions we decide to make.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 9:54 am

Hi guys

I think what we’re seeing here is just a different ‘niche’ – sick of hearing that word actually – that George is following. Obviously very successfully too. The “Bank of Mum and Dad” helped me with my first deal (bummer it was a two tier marketing spiel for QLD, but i learnt heaps down the track!). Without them I would probably be trying to be a ‘career’ public servant rather than thinking how I can earn enough income to never work again.

With George’s ‘excess’ cash he can afford to buy lots of -ve cashflow properties that give him more growth. Heck, I reckon 2 mil would set me up for life with the knowledge I have, and the deal i am currently looking at for a 30% return on my cash.

Let’s not criticise, but learn the different ways of doing things. i know that this forum was set up by Steve, who advocates positive cash flow, but it is not the only way to make it investing in property.

I say, way to go George! Someome to learn from, but also please understand that you could learn from others. No one way is the best way.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 9:41 am

Hi lynnem

Not a bad strategy, but the ATO will look at it as a business if you do it too often. I would recommend – if you are doing it with a partner, alternating name on title for each one that you do. This may then mean that there is one in your personal name every couple of years, and doesn’t ring as many alarm bells.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 9:26 am

Hey Globetrotter

That one’s easy. You don’t offer your buyer a 25 year fixed term. The best (should I say only?) way to do it would be to have their term mirror yours. If they want variable, you have variable. If they want fixed for up to 10 years, you fix yours for the same length.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 8:39 am

I looked into subway, and it’s not all that much to start up. $79-210K. If you go to the website it’s got all the info you need. I assume (I haven’t looked at it in a while) it would be http://www.subway.com

I then wanted to buy an up and running subway at about $500K, but I thought that I would not run around and do 10 different strategies, that I would just let lag catch up, and buy some more +ve cashflow properties so that I can quit work and invest full time.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 8:17 am

B. Deros, you might be confusing the joint tenants with tenants in common. Joint tenants is where each party has an equal share. ie if there are two it’s 50/50. If there are three, its 33.3/33.3/33.3 etc.
Tenants in common can say one party 1%, the other party 99% if that’s the way you want to do it. I do not believe that banks care about the percentages though – they want as many people and as much security as they can – it’s all about minimising their risk.

Alf
I did not notice your second posting earlier where you asked about multiple owners and only one of them getting the rent. Check with your accountant/solicitor, but I believe there is a way of doing this. It involves a trust (I think a ‘hybrid trust’), where you can say the income goes to this person/s, or this class of ownership, and the capital goes to this person/s, or class of ownership.

Hope this helps.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 8:04 am

Hey Bear

One strategy I have learnt that maximises your cash, and lets you stay in the same house is this:

Sell your house to an investor, with a (say) 5 year lease, with options for yourself to have further leases – also giving you the ‘get out clauses’ but not the landlord. Find somebody who wants to negative gear – or just sell ‘with tenant’. Some people (including re agents) think that just because there is a tenant in place it is a great deal.

With the cash you get, you could even prepay a year’s worth of rent, and then invest the rest of the money so that it can earn you the next years worth of rent, and of course improve your position financially.

On the second mortgage investments, we’re actually looking at ones at the moment that give a 30% per annum return. We are doing serious amounts of due diligence, including getting adequate security to cover our capital. I think that’s the key in any investment like that. Make sure you know who you are dealing with, and that they have adequate assets to back up their guarantees outside of the project you are investing in.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 7:41 am

Hey muppet/Arty

Unless Arty gets a move on he’s going to lose you $100 muppet. I see that Sooshie is up to around 800! Unless as an admin type she is not included in your competition.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 5, 2003 - 12:52 am

Hi muppet

Rotten Zac dog got the chop along with my poor little Jackie dog almost as soon as the little puppies went to good homes! I was in Fiji at the time of the dastardly deed, having left behind a pair of pants for my little one to wear for a couple of reasons – including rotten Zac!!

My Jacko dog has loooooong legs. She can jump fences that are 1.8m high!! She’s also terrified of thunder and lightning, so the second there is any, she’s over the fence and away!! Luckily she is also OBSESSED with a tennis ball, so all you have to do is walk out into the road where she can see you, and bounce it, and she comes running. This also worked with the little ones when she ran away (although we did not bounce them!![]).

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 4, 2003 - 12:00 pm

Hi alf

In the past I have purchased as tenants in common. This makes it really hard if one wants to sell, but the other wants to keep the property etc. If one were to buy the other out, all mortgages, title deeds etc. would have to be redone, not to mention the stamp duty.

In the future when I buy properties with others, I will set up a unit trust that will own the property. We can then have as many units as we like, and have flexibility in who gets the loan. Could be individuals, or the Company if that is the trustee etc. Then, if somebody wanted to sell their share in the property, they would just sell the share in the trust. I believe there is still stamp duty payable (check with accountant), but it saves all the other paperwork and hassles. Also, if there are two of you, you could maybe create even 50 or 100 shares in the place, and only sell off that which gives you the money you required.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 4, 2003 - 11:07 am

A spider in my car has almost caused me to drive off the road on more than one occasion[]. It involved a lot of jumping around madly waving at it to get out. Then when it vanished I wasn’t keen on getting back in!

Past pets – we used to have a rat, his name was Aussie. Or Ozzie. Not sure which. After mum initially freaked out, she was the one that spent the most time with him. He was very friendly, but did smell!

We’ve always had dogs. Used to have chihuahuas (spelling?) – little rat dogs. Then we ‘graduated’ to Jack Russells.

At our house we have Jackie, Susie, Little Cheeky, and Zac. We also have a little staffi called Chloe.
My sister has Tasha and Rhea.
My brother has Loki and a kelpie called Kelly – RSPCA dog.
My boyfirend has Sophie, Obi, Spotless (Spotty for short) and Sleepy.
My aunt has Scamper and Dina.
My sister’s outlaws have Aggie.
Lots of them are all related. My poor baby Jackie had six puppies – thanks to my brother’s rotten dog Zac[].
Little Cheeky, Spotty and Sleepy were the only ones that Mum would let us keep.
I wanted to buy a farm and go live there with my girl and her babies, but [xx(] didn’t have the money!

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 4, 2003 - 10:47 am

McLeod’s daughters! Other than that don’t watch much telly. Used to watch anything, but now…. lots of reading, and trying to keep up with this forum!

Apparently there aren’t many episodes of the Goodies left! Somebody trashed the BBC’s copies[!], and the biggest collection (though not all of them) is the ABC’s collection.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

October 2, 2003 - 11:56 am

Hi guys

I bought the game about two weeks ago (well, I rec’d it then anyway). Now it seems that I’m either catching up on this forum, or playing the game.

You can play as a single player against up to four computer players. You can also play up to 5 individual people (they call it hot-seat multi player – ie you take turns in front of the computer to have your turn). It’s a max of 5 players, with any mix of humans or computer players.

I’ve not played online, but there is an option in the egame to connect and play against others – using the game you have. As I said, not sure how that works.

It’s good to play though – much much faster than all that erasing and adding up you do on the board game.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

September 27, 2003 - 4:12 am

Hi

Public servant of 10 years with Defence in Canberra[:0)]. Currently on stress leave as they would not let me use my Rec Leave. Also running vending machine business, and managing 14 IPs (selling two this week). Were reasonably positive until latest purchases which have had great growth, but at the expense of income return.
Looking to replace income by purchasing +ve IPs, and become a mortgage broker. Would like to be my only client as that would mean I’m buying lots of places, and earning an income as well.

Cheers
Mel

[melbearMember@melbearJoin Date: 2003Post Count: 2,429]

September 15, 2003 - 7:55 am

Hi all

Just in case you don’t know – stamp duty is tax deductible when you pay it in Canberra. [] This is due to the leasehold. From memory we have not had any leases come up for renewal yet, but I would really be interested to see what would happen if the government decided to charge a hefty (rather than a nominal) fee for a new lease.

I have not done any ACT wraps, but I do know that there are people out there doing it. Prices have risen quite substantially in the last three years, so it’s just about impossible to get a house for under $250K which has taken the gloss off the options somewhat.

Cheers
Mel