Hmmmm,

Is this being a bit cheeky? []

Written on the Masters Tapes as clear as day are the words ‘Not For Resale’, which IMHO also includes bartering on a non-cash swap.

In the end I can’t nor will I police it, but this seems like scarcity rather than abundance to me.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I’m not sure what Rick’s product says on the matter but I strongly advocate 100% disclosure.

It makes no sense to build an empire on foundations of anything else than total honesty.

Sure, it might be harder to get deals across the line… but it is peace of mind that what you are doing has been properly set up.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I had a similar probelm when I began.

We set up a new company to separate our accounting buisness from our investing activities.

It wasn’t easy, but the way around the problem was for us to go personal guarantees for the loan, thus lending our credit history to that of the new company.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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quote:

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You are as naive as the rest of the people in this forum.

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This insult to the forum is not justified and is out of order. [!]

If you do not concur with the posts then you have every right to disagree in a constructive manner. But no name calling or mud slinging is allowed.

I wouldn’t consider a $30,000 property renting at $100 per week a dud. Even if interest rates went up 2% it will be +ve cashflow.

I once went around telling people that you’ll never get capital growth in the country. How wrong was I!

Then I actually started investing (rather than telling people how to invest) and low and behold, my cheap country properties that I bought for $44,000 are now worth $80,000+.

Everyone, including Kerry Packer, needs to start somewhere. Sure, Australia’s richest man can afford to buy mansions, but this would be a terrible place for a beginning investor to begin.

When the market begins to soften, the worst hit will be the higher priced property – both from a tenant and a cap. growth perspective.

It is wise to buy a quality property but price alone make it a dud or a palace.

Finally, those with alternate views… let’s hear them! If there is a better strategy out there then share the word.

It’s easier to rip down than it is to build.

Bye

Steve McKnight

P.S. For what it’s worth, my empire is built on the basis of buying positive cashflow property to the extent of building sufficient passive income to achieve financial freedom. I’ve bought cheap properties, which is all I could afford at the beginning, and I’m yet to ever lose money. I can testify that this is an effective strategy with more experience in the trenches than the vast majority of property investors.

It is OK to be sceptical, but if you close your mind to opportunities then you are the poorer for it.

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Remember that success comes from doing things differently.
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Hi,

Thanks for your post and welcome to the forum.

For websites… check out the Web Links area.

For books… do a search on the forum as this topic has been raised before. Maybe it would be a good idea if we added a ‘recommended reading’ area.

Cheers,

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

The great thing about this forum is that people are welcome to have and express alternative opinions.

If you can’t find any +ve cashflow propertiers then no problems… no one is forcing you to invest that way.

For me though, I can continue to find and buy a range of properties and to date my strategy has worked well.

As the market changes I expect that my strategy will need to change too. I am mindful of what mught happen in the future and I agree that the boom capital gains periods are coming to an end, but my I invest for cashflow not capital gains.

This is my strategy, which is right for me. You need your own strategy for you conditions and circumstance.

Bye

Steve McKnight

Hi,

Welcome to the forum!

One value is for positive cashflow and the other value is for bank lending purposes (ie. it has to do with acceptable bank risk vs. cashflow returns)

Bye

Steve McKnight

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Hi,

I’m saying the actual cashflow you receive is $20,000, but the amount of income that needs to be distributed to beneficiaries is only $10,000.

Bye

Steve McKnight

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Hi,

Don’t just limit yourself to Sydney… good accountants are so hard to find, I’d be willing to go interstate to find one if I couldn’t source one locally.

Bye

Steve McKnight

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Remember that success comes from doing things differently.
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Hi,

I think that you have missed the wider picture of how to create positive cashflow returns and I certainly feel that you have misapplied the ’11 Second Solution’.

From my experience finding a deal that would be wildly cashflow positive based on ring real estate agents and applying the 11 sec solution is a gross under-exageration of what’s needed to be truly successful.

The purpose of the 11 sec solution is to find an area to invest in… the next job is to find properties that lend themselves to falling within a parameter of problems that you are able to solve.

The buy and hold technique is just one of many ways you can use to get +ve cashflow… it is certainly not the only way.

Be very careful not to adopt an attitude of “I can’t do it, so the whole idea must be flawed.” This is not true at all. I continue to attract and invest in +ve cashflow properties, and I know that many other people do too.

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Ok we have finally found a unit that a tenant can afford, but the only problem is that you now live 250km away from you investment, it is old and in need of constant repair, the capital growth in the small hamlet is bearly keeping up with CPI.

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Saying this suggests that the outcome you want is confused. Do you want cashflow or capital gains? If it is old and in need of constant repair then you need to factor that into the deal. if the numbers and the risk:reward ratio don’t work out… don’t buy the deal.

For example, yesterday I told a friend about a house for sale in his area for $30,000. Only problem was that it was pretty much in the middle of nowhere… but it was a potential opportunity.

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You have been investing since 1985 which means that you should have 7 or 8 properties ( buying 1 every 2 to 3 years).

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To whom is this directed? I began investing in May 1999.

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Now when i retire the last thing i want to be doing is having to repaint,repair,worry about the idiot who hasnt paid rent for two months and could be causing thousands of dollars damage because its not his property and if you havent had any trouble yet like this, you are very lucky.

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Hmmm… this is scarcity talk as you seem to be focusing on fear and the worst case scenario. If this is your paradigm then you could get tenant insurance for potential damage. I have not had any such trouble and I don’t regard it as luck.

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I would like to here from people who have cash positve investments to put their case forward on how we can rent a 250k,130k and a 75 property using the 11 sec rule

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Well, I have properties at, above and below these values that are all +ve cashflow and exceed the 11 sec solution.

I think that Stuart O’Neil has great advice… he says Tenants don’t rent houses people do! If you do not like dealing with people…buy shares! Property is a peoples game.

Finally, I’d like to finish on a positive… despite your bias that you don’t seem to think it can be done, you at least remain open to the possibility that you might stand corrected. To this end you should be encouraged for having the conviction to write down your concerns.

Regards,

Steve McKnight

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Remember that success comes from doing things differently.
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