Hi,

The reason why I rent is because in order to get to my goal by the chosen date I need to have my capital working in my investing deals rather than tied up in a home.

E.g.

If I bout a home for $300k on a 80% LVR, then $60k + closing costs is tied up at a 0% Cash on Cash Return (although I may get cap. gains).

However, by using wraps and…[Read more]

Hi Rachel,

Thanks for your post.

Re: buying contracts… I’d be very careful doing this as IMHO a contract is important, but in reality it’s only used in the worst case scenario (ie. a lose-lose outcome).

Personally I’d be plugging into a system rather than a contract. Using a system will allow you to mitigate risks before they become…[Read more]

Hi,

In a lease option there is no access to the FHOG as there is an option to buy, but no cotract to buy (as there is in a wrap).

Accordingly the investor aims to recoup some of the necessary cash down in the form of an option fee.

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi,

Agreed that the LVR is 90% and as such mortgage insurance should be included. I will arrange for the example to reflect an 80% LVR. Check it back tomorrow and it should have changed.

Re: comment about FHOG, again, correct. However it is up to the investor to find / use / qualify a client who can qualify for the grant.

If no grant can be…[Read more]

Hi Jerry,

May I suggest that a great place to network with other Melbourne wrapees is at the regular meetings organised by the Wraps & Vendor Finance Association.

Their website is near the top of the weblinks page.

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Insider,

You raise a couple of interesting points here.

First, most LVRs are based on the bank valuation, which in my experience is generally the lower of independent valuation or cost.

This being the case, even if you negotiate a discount, the LVR will still be based on cost. The few times this has not been the case is outlined…[Read more]

Sooshie,

Now that this site is live I plan to re-acquaint myself with Julie and spend more time sniffing the roses.

Until early next year when Dave and I have just set our 2003 goal to be to acquire another $20m of real estate.

Look out!

Bye,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Mike,

That’s not a “na, na, na-na-na” post is it? []

Seriously, thanks for the timely reminder (once again) that +ve cashflow properties can be found if you go and look.

I wonder how many people are wondering where Mike lives?

Well, it doesn’t really matter because +ve cashflow properties exist everywhere when you match the right solution…[Read more]

Greetings!

I guess the good news is that Paul and I are working on a joint product that outlines the issue of structuring in more detail.

The notes are 55+ pages of notes are finished but we are still finalising the audio. I expect the product to be ready in early 2003.

Big Ads… you’re not a closet accountant are you? []

As for the hybrid…[Read more]

Hi Brett,

I’m in a recording studio tomorrow with my business partner Dave to tak about how we got started in property… without a lot of money and not being able to qualify for bank finance (self-employed).

It will be the entry level product for the new website… stay tuned for more info in the upcoming weeks.

However, in the meantime, the…[Read more]

Hi,

Thanks for your encouraging post.

At 8:41pm I’m feeling like I’m back working in my accounting career as I busily (with my trusty team of Alister, Brent and Eugene) continue to build the new PropertyInvesting.com website.

Nevertheless, reading your post has provided the inspiration to keep going for a few more hours.

You’re right about the…[Read more]

Hi Aaron,

Have checked all my e-mail boxes and I’m sorry to report that I do not have it.

Please send it direct to me at steve@propertyinvesting.com and I’ll get to it as a matter of priority.

Regards,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Bruce,

Thanks for your post and welcome to the PropertyInvesting.com community.

Some comments that I’d make are:

1. Understand the market. Before getting down to business make sure you ring around several r/e firms to gauge what the high and low range is for commissions.

2. Consider the true cost. All agents I know also charge on-costs in…[Read more]

Craig,

There was a similar post to this only a few weeks ago with a lot of replies.

Have a search and see what you can find.

Cheers,

Steve McKnight

**********
Remember that success comes from doing things differently.
**********

Hi Wayne,

I’ve read the posts here and agree totally with what’s written.

I’d add that in property the way to make money is to match a problem with a solution.

In your case you’d want to make sure that your client could afford the repayments based on a win-win financial model.

If this is a problem then maybe you could lease-option it to…[Read more]

Hi David,

You ask…

quote:
Can one purchase multiple cash flow positive properties given that I am only earning a low income.

The answer is not can I, but how can I.

You can do anything when you start to focus on the solution rather than the problem.

You also ask…

quote:
for example you have registered a company how does on obtain finance…

[Read more]

Hi Sooshie…

From where I stood I thought that the Sydney seminar was fantastic… and quite different from the Melbourne one too. Different crowd… different dynamics… different focus.

All was going well until I was hit with a migraine on the Saturday morning []. Luckily I was spared a real nasty version and was only K.O’ed for about 4…[Read more]

Hi David,

Some books that I can recommend are:

1. Most of Kiyosaki’s material
2. John Burley’s “Money Secrets of the Rich”
3. Clason’s “The Richest Man in Babylon”
4. “Confessions of a Real Estate Agent” – Terry Ryder
5. “Fast Cash with Quick Turn Real Estate” – Ron LeGrand
6. “Nothing Down for the 90’s” – Robert Allen
7. “Creating Wealth” -…[Read more]

Lance,

I was in the hotel room after the seminar reading the feedback forms and read with interest that one of the insights you wrote was that you wanted to broaden your strategy from just wraps and also purchase some buy and hold.

Well, no one can call you a tyre kicker! And I’d have to say that your place in “one of the fifteen” has been…[Read more]

Hi,

I regard John’s material on general investing to be very good. However I’d be spending $30 on his book before attending his $3,000 seminar.

Flea- I’m going to think about your proposal for a few days and then get back to you. I can certainly see the need for the facility… I just want to make sure I protect the integrity of the forum and…[Read more]