The great Gatsby…

You crack me up! []

Blessings brother,

– Steve

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The day is what you make of it! Now go lift weights [wink4]
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Hi,

Yep – this has been discussed in some detail at various times.

I guess Rick and I discuss the same issue from different perspectives. Ultimately you need to weigh up which you prefer for the asking price.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi again,

My point about financial burden is more of an accountability to do the most with it that I can rather than squander it.

Good passages (Matthew 6:19-24):

19″Do not store up for yourselves treasures on earth, where moth and rust destroy, and where thieves break in and steal. 20But store up for yourselves treasures in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. 21For where your treasure is, there your heart will be also.

22″The eye is the lamp of the body. If your eyes are good, your whole body will be full of light. 23But if your eyes are bad, your whole body will be full of darkness. If then the light within you is darkness, how great is that darkness!

24″No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.

The burden I talk of is to remain wealthy and humble before God, at the same time as being accountable for the blessings he has provided (i.e. parable of the talents).

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Pleased you enjoyed the book and thanks for your post.

Re: the 2.25% figure used.. it’s just a reference point as such, taking into account the overall fee and dividing it by the total sales price. Naturally, some commissions will be higher and lower.

Perhaps just remember that commissions are negotiable [wink4]

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I’ll get Brent to look into it and get in touch with you asap.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

On the topic of valuations…

At one point Dave and I had purchased about six houses in close proximity of each other.

When we bought another one we asked the financier for a copy of how the valuation report, which just happened to list, under the heading of recent sales, the six other properties we’d just bought!

Overall, it’s wise to remember that a valuation report is just someone’s best guess, and that ultimately it is the market who decides what a house is worth. That’s why it’s wise to pay attention to market forces that impact sentiment as well as general affordability.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

The message I believe Peter is trying to give, and it is one that I agree with, is to make good use of r/e equity to maximise profitability.

It’s the principle of ‘velocity of money’, in that you want to increase the compounding effect of your returns to maximise wealth creation.

In your example, provided your COCR is more than the cost of finance then you will be better off as you essentialy get ‘money for nothing’ as far as a cost of funds perspective goes.

Of course, there is always the risk of financial loss. Specifically, in respect to listed property trusts, just make sure that the returns are not annualised or averaged across 5 or 10 years. Like everything, you need to live through the bad years to profit from the good ones.

A point you don’t seem to have considered in your scenario analysis is the effort to payback ratio. For example, the listed property trust option is a lot less effort than a subdivision, although each have different risks.

Ultimately, you need to make your own investment decision for your situation that reflects your skill and risk profile.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I try to read my bible regularly, and a passage I came across today was:

I don’t profess to be in the same ‘wealth tier’ as Peter, however from my perspective, and increasingly more so, I sense the extra burden of being financially well off.

Perhaps surprisingly, I only reached this insight recently and after I have enjoyed some degree of success.

From a personal perspective, and being a Christian, I believe there is enough scripture to emphasise the importance of using the wealth one is blessed with an eternal perspective in mind.

It’s no sin to be wealthy, but the use of that wealth can be dangerous to the soul. Some insight can be found in many places in Matthew. A passage I try to follwo is Tim 6:17

One final thing that one of the Mappers said to me which I really like

Just adding my 2 cents about my personal situation.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

Thanks for your comments about the book and I’m pleased you are liking it so far.

You are right about comfort zones – but don’t think I am immune from the lapsing of drive from time to time.

Still, what I find keeps me going is outlined in the upcoming chapters, namely a passion and a purpose.

Practically though, having Dave around to keep me accountable is very useful from a business sense, and Julie keeps me aware of when my work:home balance is out of wack.

Overall though, I think Tiffany (one of the Mappers) said it best with the following comment…

Let me know your thoughts as you keep reading though [biggrin]

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

While I’m no legal expert… solicitors for all parties would meet in a room and shuffle paper.

I’d imagine that your purchase is settled first (i.e. necessary docs executed), and then once this happens then the legals over your sale are handled.

Really though, it’s just a matter of due process that is all handled by your legal eagle(s).

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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