[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

June 21, 2011 - 11:19 pm

I think you may have got lucky. I have been part say of hundreds of purchases and every time we see a 12 – 48 month ol purchase its 50 – 100 k less than original vendor paid. I know liverpool well and 370,000 is too expensive. You can buy 2 older units with 300 pw rents or a house for that price. Furthermore 10 yrs time thats going to be old crappy unit just like the others also. Hope this helps and good luck. NB

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

June 21, 2011 - 5:37 am

I purchased a run down property in Muswellbrook earlier this year and did a renovation.

The market is strange, I can confirm I couldnt even find a room in a dodgy pub for lease whilst I was with my builders helping out. When it came to finding a tenant though the market retracted and there was a glut of furnished properties.

I see potential for this region, however take agents advices on furnish or unfurnished with all DD in place.

Goodluck!

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 31, 2011 - 3:22 am

My number is 0406886284 just text me and I will meet everyone wherever you all are….

Nathan.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 30, 2011 - 7:54 am

Thanks EV,

Jamie the 370z is going good! Got my CSHFLO plates on it now so even better

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 30, 2011 - 7:53 am

Hi bjsaust,

Jamie is right, I have built rapport with agents all around NSW and Australia over the lat 8 – 10 years and its a matter of building rapport and completing deals to get first bite of the cherry when stuff comes on the market.

I actually launched a product to help people find deals easier called Deal Finder to tap into my resources.

Other than this, I would suggest poundng the pavement talking with real estate agents and buy when the numbers stack up by being both below market value and with strong cashflow. If one is missing, then you must question whether the deal is right for your goals and understand how you are to benifit from acquiring it.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 30, 2011 - 12:47 am

mattnz wrote:

What are the chances you could be a speaker at the next one Nathan? Maybe have a chat with Steve McKnight. I think you could provide a good perspective on some of the opportunities out there that other speakers won't be covering.

Not sure, could have a chat with steve at some time to discuss that option.

Not sure how his arrangement works etc, I guess will see more on weekend.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 30, 2011 - 12:43 am

p.s.

The guy with the bull and bear avatar I LOVE IT! Classic!

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 30, 2011 - 12:42 am

Hi  Matt,

The way I see it, is the governement doesnt want crisis on their hands. The thing I see is that if the tide moves too far the other way they will prop it up. They dropped rates 4% and doubled the FHOG because america was in trouble…. If Australia ends up in trouble I am sure the gov will step in to prop it up.

Your right though people who buy silly properties hoping CG or mainly very highly negative geared to pray of CG can get wiped out overnight. This is why its important to have a solid portfolio which will help you out if the market could potentially turn to paste.

I havent read 7 pages of replies, however I am sure there is a match of how dare you say this, or that from all members, however there is evidence to support both sides of the market and its important to protect yourself in any market, whether its in summer months for the winter or in winter for the summer, at the end of the day there will be opportunities for both times and its a matter of farming for the best outcome at that time whilst remembering at the end of the day your still a farmer working the seasons.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 26, 2011 - 9:56 am

Thanks for the feedback everyone.

I took some videos for those who are interested.

http://www.youtube.com/binvested#p/a/u/0/luU-NJVHbYU
http://www.youtube.com/binvested#p/a/u/1/HhmZY7Vcc5M

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 14, 2011 - 8:26 am

Forgot;

13) Development site in Sydney 1/3 acre with ability for 3 storey walk up units.
Purchase price $410,000
Comparable sales $450,000
Rent $800

Forgot to mention this as it is my first JV deal.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 4, 2011 - 6:34 am

Thanks for the feedback everyone.

You cannot just stumble across 10% yields and the vendors dont know the value of what their property (product)  is worth when selling.

There are TWO must's when buying any property IMO and a further two which should always be taken on board.

1) Buying below market value. This is based on recent sales and others on the market. They must be identical comparions and between 10-20% below market.
2) The cashflow should support itself, or close to it, ideally putting money in your pocket.

The further two comments are
3) The property needs to have growth upside (ideally in metro states or regional populations with 10,000 + population)
4) The property should fit in line with your plans and be getting you closer to your end goal.

Nathan.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 4, 2011 - 4:42 am

Good stuff, I will be meeting a few forumites there also.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

May 2, 2011 - 6:07 am

larrytheinvestor wrote:

Hey I was just wondering do the banks actually lend you so much money.. for example: I buy house number 1 with a loan of $170K and its neutral geared. Will the banks actually lend me more money to buy another house even thought i already have $170k dept? Is there not a limit that they will lend to a single individual on a 50K p/a income? For house number five they will be lending to someone with over $500K of dept.. and a 50k income?

When you purchase properties if you purchase the correct properties with strong cashflow the bank actually sees this as a positive and includes the rent as income therefore your borrowing capacity increases.

So $50kpa and you buy $200k IP with $300pw ($15,6000pa) rent, new income is $$65,600 and debt $200k.

Hope this helps.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 29, 2011 - 8:36 am

8-10% in Sydney quiet regularly….

As for Nett worth, if I were to sell everything I would have $3.5mill.

This is not a plan of mine, the next goal is 100 buy and hold properties by 2015. These are nothing special, and nothing risky, buy with a 20% deposit in, and cf+ reval and make loan 100% within 3-6 months of initial purchase.

I hold close to $7mill worth of property $6.5mill present but with a few soon settlements will be $7.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 29, 2011 - 7:23 am

Hi Larry,

I use to have 5 or 6 titles unencumbered, however recently I took it back to the bank and got loans upon them.

When I left the workforce I did find it hard to obtain finances unemployed, so I pulled out a top up loan (equity) of around $200,000. I used this to buy damaged houses outright and fund their renovations. Cheapest houses were like $8,500 each but required $50,000 renovations.

One day I realised I was sitting on around $400,000 – $500,000 of deposits so I decided to get loans on these so I could use the funds elsewhere.

I always look @ the net worth rather then titles because at the end of the day if proeprties were to be sold how much would one have in the bank is the big question.

As far as IO periods, in 7 years rents go up, and cashflow does. I stack them so they dont all expire at once.

You can negotiate this at that point with the bank to extend it on a new term of this. I personally leave them to pay themselves down.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 26, 2011 - 9:49 am

Sorry I meant 34 buy n holds at 25. Damn iphone.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 26, 2011 - 8:45 am

This is a method similar to what i used starting out. I use same principals today buy larger scale, if i didnt use my strategy i wouldnt be sitting on 24 buy and holds at age 25. Everyone has different circimstances which will differ. I see many ways to build a portfolio. Conducting this method correctly will see one build a solid portfolio relatively risk free.

Hope this helps.
Nath.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 25, 2011 - 9:04 am

Hi Michael,

Yep after all this time would be great to catch up and meet you.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 25, 2011 - 12:01 am

Nah, only link was the one which got emailed to me but that was to enter my detail into. Check out the products page of this site or maybe email Steve or something.

Nath.

[Nathan BirchParticipant@nathan-birchJoin Date: 2004Post Count: 189]

April 24, 2011 - 2:29 am

Congrats Tony.

Steve they are out there. I am in sydney but not all familiar with victoria market. I purchase mainly in NSW and some in QLD also.

The crest those numbers are Sydney based for my regional purchases they are all in 10000 population towns and 100k give or take and 200pw or 10%

Hope this helps