Forum Replies Created
Hello,
Just to balance out the doom and gloom:
http://www.usatoday.com/money/perfi/general/story/2012-07-21/reits-rebound/56389776/1
"Real estate funds have posted an average annualized return of 33% over the last three years, according to Morningstar. That's the top performance among the fund categories it tracks. Year-to-date, the funds are up nearly 17%. That's about double the average return for diversified stock funds."
The risks, and benefits, of investing in the Fund I have set up are outlined in the PDS which you can download from: http://www.PassiveIncomeFund.com
As to Steve making 'a couple of good calls'… it is true that past performance is not a guarantee of future performance, but those two accurate calls made significant amounts of money and times when the doomsdayers were running rampant.
The reasons why I think the US commercial market right now is the most exciting opportunity I have seen are outlined in videos that can be accessed at: http://passiveincomefund.com/video-webinars.html
– Steve
(Now because what I say is regulated, I need to include the required warnings)
General advice warning: Past performance is not a guarantee of future performance. No earnings estimates are made. This information is of a general nature only and does not take into account your objectives, financial situation or needs. You should consider the Product Disclosure Statement issued by Plantation Capital Limited ACN 133 678 029 AFSL 339481 in deciding whether to acquire an interest in the Passive Income (USA Commercial Property) Fund. You can download a copy at the following website http://www.passiveincomefund.com. PropertyInvesting.com Pty Ltd is an authorised representative of Plantation Capital Limited ABN 98 096 059 353, AFSL 339481. PropertyInvesting.com Pty Ltd's authorised representative number is 423856.
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Freckle,
Out of interest, had you read the Product Disclosure Statement prior to making these comments?
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi there,
Tell your mother in law I'm sorry she feels she wasted her money buying the book. She could recoup some of the cost by selling it on eBay. After all, there's not much point having it collect dust on her shelf, and someone else might be able to pick up some great tips in it.
The book was never about buying 130 properties in 3.5 years (although that is what I did), it was about the myths associated with property investing which is seeing people acquire under-perfoming property. I still see this happening as much, if not more, than when I wrote the book 8 years ago. It was also designed to show people how to use cash and cash flow real estate to become financially free. Clearly others could do it too as I regularly meet and receive thanks from people who have made significant amounts of wealth from following the techniques I have written about.
In regards to positive cash flow property… now is actually as good a time as any to acquire them because interest rates are sub 6%. Just remember that as rates go up again, then +ve will turn to neutral and eventually -ve.
Finally, please be so kind as to also let your mother in law know:
- Every cent of all royalties made from my books went to charity – over $1m and counting; and
- My property portfolio is generating just on $20k per month +ve cash flow now; and
- I don't do many seminars any more, but I still get bombarded with requests to help; and
- This website, which helps tens of thousands of investors and is free, is paid for entirely from my pocket.
I'm not looking for a Christmas or thank you card, just some respect and recognition for single handedly assisting a generation of Aussie investors wake up from the myth of negatively geared property.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey mate…
Congrats on your first post.
Don't be shy though, make another one!
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
I'm trying to contain my anger… trying… trying hard!
So, you went to an adviser to talk about real estate, eh? Seems smart, except how much direct property experience has this adviser had? How many city or regional properties have the bought? How wealthy are they? How did they build their wealth?
To be fair, people can only advise out of:
1. What they've heard (studied)
2. What they've seen (experienced)
Now, I don't know about you, but I think there is a lot of danger (of getting misinformation) by getting advice from people who think they know it based on what they've heard (from another source). I'd much prefer to learn from someone who had experience.
So, let me advise you (for free) based on my experience:
1. Regional properties DO appreciate in value, often at higher % amounts than city areas
2. Regional properties DO have higher returns than comparable city properties because rents are higher compared to values
3. Owning a city property, which is negatively geared, might (and I mean might) be a good strategy in a market that is appreciating, but won't earn you a cent when prices are flat or down
4. Every negatively geared city property you own means you need your job more
5. Sure, you are going to need maybe 15 +ve cashflow regional properties do be financially free, but how many -ve cash flow properties do you need? Trick question… you can't because they are -ve cash flow
I could go on and on and on and on… and I did (in the books I wrote). So, perhaps I'll just point you to the books I wrote to give you encouragement and helpful hints about how to build your portfolio.
Okay… I'm off to book an appointment with an anger management therapist.
– Steve
P.S. BEWARE THE DREAM STEALERS!
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey there,
Remember that when thinking about your investment, you need to consider both the entry (purchase) and exit (sale).
It seems you have some answers about the entry (ie. purchase price), but what about the exit? Is there a guaranteed sale back to the organisation selling to you? What kind of after-market / second hand market is there? What discounts are normal?
I'm also worried about the diminishing number of people using 'pay for use' ATMs. Here's an article I came across this week which pricked my interest, and which I recommend you read. The core message is that people aren't as willing to spend the few bucks for convenience.
Food for thought…
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
This is an interesting post, and an unfortunate problem.
Terry raises a good point about legal recourse, which is if the buyer can't pay for the work, it's unlikely that you will be able to sue and get any money (they can't pay if they don't have money).
You've also mentioned that it will cost more than deposit to rectify the issues.
That being the case though, here's what I would be pushing for:
a) Know your legal rights
b) Exercise your legal rights (such as sung for performance)
c) Assuming that the sale does not go ahead though, rescind the contract and get the deposit (will the agent want their commission though?)
d) Rather than return the building back to its original condition, I'd be costing out how much to complete the work. It might be worthwhile talking to the guys doing the work now
e) Keep us in the loop so we can brainstorm with you
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Let's not be too hasty… what would you like to see changed or improved?
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi team,
Thanks again for your comments. Perhaps if you could post 'wish list' items you would like to see us change or incorporate then we will look to implement them.
Cheers,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Yeah, good point JacM.
Perhaps trotting off to see a mortgage broker about getting a non-recourse loan is worth the effort.
The LVR will be lower, but the peace of mind higher.
Then at least the issue of personal guarantees can be taken off the table (which the lender would otherwise probably want).
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
What can I say… I'm an addict!
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hmmmm,
I think you need to be careful about your intentions.
If you have a firm intention of living in it as a home then you probably have an obligation to disclose that to your lender since it sounds like they will be including rent in the calc (which you won't be receiving if you live in the property).
If it's just a possibility, perhaps it is different.
Of course, the point about making sure you can afford the repayments if interested rates rise (which they will, eventually) ought to be made.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
My local tip fees went up 40% when the CT started. Hard to see why… all the methane, perhaps?
In that case there should surely be a large bill for our nation's capital!
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi James,
It's not a seminar, but getting a copy of Chris Lang's "How Investing In Commercial Property Really Works" is a good start.
Chris runs seminars from time to time too. His website is:
Regards,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi,
Unless it is an opportunity to buy (rather than develop) a nras property as an investment, I'm not sure what the opportunity is.
Here is a quote from the government's website:
"How can investors participate in NRAS?
Interested investors need to apply to the Australian Government for an allocation of NRAS Incentives.
Investors at scale may apply for NRAS Incentives for individual projects, or partner with not for profit housing providers and property developers to build properties in different locations. Consortiums and non entity joint ventures are common models for NRAS projects.
Because NRAS aims to encourage large-scale investment in affordable housing, NRAS Incentives are unlikely to be suitable for small scale individual investors.
Instead, individuals who are interested in purchasing just one or two NRAS properties as an investment can become involved by approaching entities who are applying or already have a larger allocation of NRAS Incentives."
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi!
Okay, I'm a little confused…
You want to buy a property to live in (rather than rent, with the hope of getting some capital growth, is that right?
If so then you are like the majority of the population who buy a home and hope for some growth. Am I missing something?
How has the lender come to the conclusion that the property is an 'investment' rather than a 'home'.
Thanks,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hey Kezza111,
A good accountant would come in handy, and a lawyer too.
Accountant
A unit trust will probably be the structuring weapon of choice, as it gives each of you a fixed interest.
You can even have the units owned by a family trust if you want even more structuring options.
Each year you each get your share of the income and declare what you receive on your income tax returns.
Lawyer
You will also want to add in a good heads of agreement about how the property is going to be managed, valued, what happens if someone wants to sell, etc. All might be good now, but change is the one constant you can depend on.
I can't recommend highly enough the wisdom of 'finite period and finite outcome'… that is, nominate the time and money outcome you want coming in.
Sadly, when money is involved, even the closest friendships are often sorely tested.
Operational
From an operational perspective, you might want to consider paying interest on the money you each contribute which (aside from the purchase of units) will be treated as a loan. This keeps it fair.
All the best,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Appreciate the feedback, but make it as constructive as you can please.
For instance, giving ideas for what specific nav features you would like is much more helpful than just saying the old site was more nav friendly.
We have big plans, but we want to get the small things right first.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks for the tip Shahin.
The offer to join as a member goes once you have logged in.
We could remove the pic images once you are logged in too so that the information is higher on the page.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Okay… I see your point.
Do you have a preference for the post to run in sequential time order (with newer posts at the end), or for it to be a 'real time' conversation?
It's probably more logical for it to be sequential so if you want to check for the latest replies you just go to the end of the post, right?
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
