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  • Profile photo of Steve McKnightSteve McKnight
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    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hey F2S,

    Thanks for your post. By definition a mania exists when crazy things are said without any realistic basis.

    Manias are a normal part of the investing cycle, but they cannot be sustained.

    In recent times, manias haven’t been too hard to find… the internet stock mania, the property mania, those metal scooters… etc.

    In particular, I remember looking for a home to live in in 2003. The market was white hot still, and as we looked at one property in particular, the agent said something similar to you – that the land would be worth $1m in the next five years!

    Well, the mania is over and the same house just sold for less than it did back in 2003.

    Manias can be very profitable, provided you manage the hype with some investing commonsense. For example, don’t borrow more than you can afford to repay, and don’t punch outside your investing weight (do deals you know nothing about).

    No one knows when a mania will end, but it always does – sooner or later.

    In short – make hay while the sun shines, but don’t bet the lot on a risky proposition.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi NellandTony,

    Thanks for your post.

    I have a couple of points to make…

    1. Are you buying the house next door for an investment, or as something you may want to extend on in the future? If it is an investment, then it is a matter of return and maximising your money. If it is a lifestyle decision, then that is different and it comes down to affordability.

    2. Whatever the decision, the two areas that you should check out thoroughly are:

    > The physical property: What condition is it in, especially in the area where you can’t easily see (electrical, plumbing, floor, stumps, roof). I suggest you pay an inspector to do this for you.

    > The numbers: You have to be aware of the financial implications of your decision. The four questions are: how much down, how much back, how much time and how much risk.

    3. If you are investing, what is your plan or strategy for the property? That is, how are you going to make money?

    As for buying privately, I can’t see the issue here, provided you can negotiate price and or sale terms that meet your requirements. I would say that someone who sells privately usually does so to save a few $$$$, so, you may find it difficult to negotiate on price.

    Still, no harm in trying [exhappy]

    Let me know how you get on.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi ToothKnight,

    First up, are you looking for money partners, or joint venture partners.

    I know of some people who have tried both approaches in a LO situation, and they tell me they would never go down the JV partner road again as it was too complicated.

    They felt is was better to offer a set % interest rate, and to make it an attractive one.

    Finding money partners can be tricky, as, if you don’t have a reputation then it will be hard to gain the esteem / trust.

    Therefore, if this is the case, you need to leverage off the reputation of someone who knows you. That is, you need to be ‘introduced’ rather than cold-calling.

    Therefore, often a better reception is gained by going to accountants and lawyers and seeing if they have any clients who may be interested.

    I would avoid using family and friends if at all possible. This lacks sustainability and compromises a personal relationship.

    So, as a first step, approach your accountant and see if they know anyone. Alternatively, you could ask a lawyer if they offer second mortgage funding, or you could shop around with mortgage brokers.

    I hope you find what you are looking for.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Simon,

    Thanks for your input. I hadn’t thought of the resale problems (i.e. you limit your market to only investors – and even on that, those investors may choose another DHA property first), so that is an excellent point.

    So, would you recommend this kind of property as an investment?

    Also, do you think that DHA manages the property well enough to justify their large commissions?

    And finally, if you were thinking about buying such a property, what are some practical traps you have seen to avoid?

    Thanks,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Cataldop,

    You make some good points. I think you are able to sell the property once the lease expires, the only problem is that the lease may run for 10 years with options to renew.

    Your point about limited opportunity to add value is well made.

    Perhaps one of the attractive reasons for the REIT though is the potential attractiveness for Super Funds.

    Super Funds are not able to borrow money, so real estate has traditionally had little appeal (as there is no leverage). Investing in a REIT can potentially overcome this as you can gain an exposure to real estate without having to buy the entire property.

    For example, you could have an exposure to real estate by holding, say, 10,000 $1 units. It would be hard to find a $10,000 house.

    Thanks for your post.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    G’day GR,

    Thanks for your input.

    I’m not sure that Westpac would be funding it in the long-term. I would imagine they would in the short term, but once the units were purchased in the REIT, I would have thought the ‘equity’ would have been used to retire some or all of the debt.

    It is more of an investing vehicle, and there are obvious cross synergies plus first mover advantages for Westpac.

    You are right though, at a 6%ish gross return, the only way these things could be cashflow positive is on the basis of low or no debt. This being the case, the cash-on-cash return on the investment is unlikely to be greatly attractive.

    As such, on the face of it, the value of the investment would be from growth.

    Still, the prospectus of the REIT would make very interesting reading.

    Cheers,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Andrew,

    The idea behind the 11 Sec Solution is that a 10.4% gross return should be high enough so as to leave you with some net positive cashflow after property expenses have been deducted.

    There is no guarantee though, particularly if there is more than 80% borrowing.

    As far as the maths goes, it has been well explained in this post.

    Cheers,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    Just a quick comment about the pursuit of wealth creation… bring it back to what Jesus said, in that you can only serve one master.

    If money is your master then you have the wrong focus, as it is an idol. God wants to be #1.

    There is nothing wrong with seeking to acquire wealth, indeed, many of those featured in the bible were wealthy – from David right the way through those who supported the early missions (as written in the book of Acts).

    Search your heart, pray for wisdom, and ask God to show you what you are doing wrong.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    Your feedback is noted, but having gone this far now, there is no turning back!

    The look and feel is only a small fraction of what we have done. Many mods have happened behind the scenes, and many more continue to happen on a daily basis.

    Still… no doubt it will be back to the drawing board in 12 to 18 months with a new site look and feel.

    To answer specific questions:

    1. RESULTS forums: These are being migrated to a new site and won’t be a pain for much longer.

    2. The General Forum is now ‘Everything Else’. The idea was to get people to post the right question in the right area.

    Regards,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    Yes, I have seen it as a friend lent it to me to watch.

    For the main part it contained some very interesting ideas, and some alternative ways to view things.

    Where I thought it fell over was with the woman who looked liked Zsa Zsa Gabor. In the end credits, her qualifications was that she ran her own elightenment school, or something. Oh, Please!!!

    For me, I have a strong Christian faith, so I don’t subscribe to some of the scientific theories. What it does seem, is that the more we know, the more we find that there is a fabric and a structure well beyond our comprehension.

    I love the thought of time travel, and often wonder about fate. To this extent, the movie was worthwhile viewing.

    Remember to watch out of the persuasive use of music and visual effect to get an uncertain point across. TV, and Hollywood, are powerful mediums.

    For those seeking what’s beyond the obvious, I’d recommend joining a bible study group and looking into what’s written there. That’s what I did when I realised there was more to life than money and property investing.

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Great post Mini.

    I see that a change in landscape has increased the length of your posts! Must be that excellent view [exhappy].

    Shape-O is the complicated investors tool that you mention.

    See ya,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Brisbane 04,

    Thanks for your post.

    You raise a good point for discussion, however, I’ll need a little time to provide a thoughtful answer. How about I use your post as the theme for my upcoming newsletter due for release between Xmas and New Year.

    Having said that, in quick general terms, Dave and I continue to use all the strategies outlined in Book 1 and Book 2, however the context of their application has changed with the evolving market. That is, we buy problems and we sell solutions, in various markets, around the world.

    Have a Merry Christmas! [santa2]

    Cheers,

    – Steve McKnight

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    There are changes afoot as we go through and make upgrades.

    Hopefully you have noticed the font size increase, and also less clutter in the RH menu.

    Further improvements are happening behind the scenes and I hope to have things completely ironed out soon.

    As for speed issues, if I can make a recommendation… If you use Internet Explorer then you may find your speed increased if you clear your cache.

    You do this by:

    Step One: Select the ‘Tools’ menu from the menu bar.

    Step Two: Select ‘Internet Options’ from the drop down box.

    Step Three: Select ‘Delete Files’ from the ‘Temporary Internet Files’ section (middle of the window).

    Step Four: Click ‘OK’

    This erases all the temporary files such as cookies, and it may make your computer run faster – especially on this site given the recent change over.

    Stay tuned for more updates as major changes are made.

    Thanks for your continued support and keep the feedback coming please.

    Bye!

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi again,

    The breadcrumb issue is on the agenda to fix… something happened in the roll out that stuffed it up.

    In regards to the RESULTS folder… you now have the option of collapsing that forum so that you don’t need to see any of the posts that are in it.

    We do not have the functionality to only show it if you are a RESULTS member.

    You should still be able to subscribe to topics. I’ll take a look into it.

    Keep the suggestions coming please.

    Regards,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    I agree that there are formatting issues that need to be addressed, especially the font size and readability of text.

    Please keep you suggestions coming.

    Regards,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    A further tip…

    I read your newsletter with great interest, not only because I have an interest in real estate, but as a licenced Plumber for 46 years and also a licenced waterproofer, I thought I would advise you of a plumbing tip not mentioned in your reports 1&2.

    Probably the most infuriating occurance for new home or unit buyers, is water hammer.

    The cost sometimes is large to eradicate and when I do inspections for myself or for others,all it requires is sharp twist on and off quickly and it will announce itself.

    Regards Brian

    Cheers,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Del,

    Nice touch. Thanks.

    How long until the big shift?

    Bye,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi,

    Rick Otton used to sell them a few years back. Seems he still does (click link).

    Regards,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Leo,

    All I can say is that I’m sorry you don’t believe what I have written when it was a true account of what happened.

    Best wishes,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Hi Leo,

    Actually, I think it’s important to set the record straight.

    The promise made to the TT viewers (which is verified from the transcript of the TT stories) was as follows:

    1. That the chosen TT viewers would receive a selection of product that I had produced;

    2. That they would receive a ticket to a seminar that I was running at the time;

    3. That they would receive my email address, and phone number, which they could use to contact me one-to-one, for a period of 12 months.

    These items were provided in good faith. I made no financial guarantees (such as becoming millionaires). I did say that, provided they were committed and dedicated, I thought I could help them to be build a better financial future (in generic terms).

    Where confusion arose was with the difference between what I was providing the TT viewers (I think the TT producers called this their ‘Millionaire Challenge’), compared with what the people in my structured mentoring program (i.e. the MAP <where the goal was to acquire $1m worth of r/e in 12 months>) were receiving.

    The two ‘streams’ of people arose because Ch7 approached me to include some of their viewers in the MAP. However, because the MAP had already started a few months earlier, and because several people who applied and had followed the application process had missed out, I didn’t think it would be appropriate to include new people based on being TT viewers alone.

    I felt that doing so would be unfair to those that missed out and would also damage the trust that had built up in the MAP group over the first several months. Accordingly, I declined to include more people and instead offered what is outlined above to the TT viewers selected.

    The ABC article that you mention is not accurate, and I wrote to them about this. However, they did not see fit to correct their errors. I didn’t actually provided Media Watch with any comment or statement – and, as I understand it, neither did any of the TT viewers.

    What the ABC did do was inappropriately hound the TT viewers to the point of personal intrusion. When no ‘dirt’ was found, they editorialised their comment.

    With this in mind, have another read of the story and look out for:

    1. Comments taken from the TT stories. These are one line grabs over several stories, and, of most note, they left out what I promised to provide the TT viewers with.

    2. Review the misquotes taken from me as they were taken out of context… they were from another conversation altogether with another person! (see below).

    3. Review their editorial comments that are used to plug the gaps and paint the least flattering picture possible.

    The quotes attributed to me come from a taped phone conversation that I had with Neil Jenman and were taken out of context. Neil ‘leaked’ these comments to Media Watch as part of his campaign to discredit me, and, then, as seems his want, wrote an editorial article on his website quoting the Media Watch story as evidence to suit his purposes.

    Interestingly, this type of journalism (from Neil and from the ABC) is exactly the same sensationalism for which they criticise me and Ch7.

    As for being ‘lucky’ to escape prosecution. I feel that I always answered questions put to me, from both TT, from the ABC, from Neil, and from others with complete honestly. It is the context to how my answers have been portrayed where the problem lies.

    Now, to answer your question….

    My interaction with the three TT viewers following the story was as follows:

    1. Having received the product and seminar ticket, one group decided to travel overseas and did not take up the email/phone option.

    2. Another group received the product, seminar ticket and then, a few months down the track, suffered a health set-back and wanted to change focus. I told them that they could contact me at any time and I’d be there to help.

    3. The third group received the product, ticket and we met regularly over 12 months as I helped them with various business interests they had.

    The ABC story mentioned that they told Media Watch that they had ‘got nowhere’. I doubt this was true, as, in the very least, all the viewers received the promised product, the seminar ticket(s), and were provided access to me for them to use as they wanted.

    When you take out all the hype and name calling, what you’re left with is my promise to the TT viewers which, as outlined above, was faithfully met.

    Regards,

    Steve McKnight

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

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

Viewing 20 posts - 501 through 520 (of 1,712 total)