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 other strategies I can get >50% returns. Then when I reinvest my profits (as Dave and I do… I live on <$500 per month from my wife!) in order to compound my returns.

Sure, I could retire now and comfortably never work again… but I am not yet at my money goal.

So in the meantime I am trying to work a little less each month while also accelerating my earnings.

Hope this has helped.

Bye

Steve McKnight

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

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 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.
**********

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.
**********

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 issue… I think Dave said it best when he said “why pay for champagne when all you need is beer?”.

Do you need a structure like Kerry Packer if you’re not Kerry Packer, but really a Kerry Packer wantabe?

And I must admit that IMHO anyone mad enough to set up an offshore structure to avoid tax needs a serious kick up the investing pants.

Bye

Steve McKnight

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

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 taking action comment. Sadly many particiapnts have already allowed the momentum to pass and are back to trying to turn a profit from share trading, having given up on ever finding a +vely geared property (see the post about the 11 sec. solution).

But not you. Congratulations.

Sincerely,

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 addition to commission, either in the form of a marketing levy (for Jenman agents) or specific marketing / advertsing costs (for other agents). Be sure you know what you’re in for b4 you sign.

3. Exclusive listing agreements. You will be asked to sign an exclusive listing agreement that gives the agent sole responsibility for selling the property. I wouldn’t lock in for more than 45 days.

4. Price or service? Personally, I’m happy to pay more for service rather than going for the cheapest option. So what I’d be careful to observe and certainly find out information on is how the various agents plan to market your property. In other words… you want to know who is going set the best strategy to get you the best price.

5. Always Negotiate Everything is negotiable… and while you negotiate observe how your agent reacts / haggles since this is the way that they will act with potential buyers.

I hope this has helped Bruce… pls get back and tell me how you went.

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 them???

Hey… this is starting to sound like what we covered on the week-end [].

Have a great day and keep asking questions.

Bye

Steve McKnight

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

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 hours.

Still… I was quite lucky as I finished up my presentation just in time to spend nearly an hour in the toilets being sick.

But I was back for the afternoon session and by Sunday morning I had 2 days of energy to unleash.

Now as for your post… well I’d have to say that it is a pity to see fantastic heritage building’s fall to modern development, however I would also say that “investing” is a lot different to “owning”.

You also want to be careful about emotion when it comes to property investing. And besides… there are authorities at local, State and Federal government who are charged with the responsibility on ensuring appropriate development and retaining our history.

You ask:

quote:

---

Is it still worth doing from an investment point of view?

---

Well… I’d have to say (as always) that it depends on the numbers.

All property deals (rather than just wraps) can be win-win when done for the right reasons. It’s true that money is just one of a number of factors to consider when investing… BUT… it’s one of the bigger concerns.

Bye

Steve McKnight

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

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 cemented by your action.

It’s most rewarding to see participants take the information offered at the seminar and then use it to make money.

You’re right… action is the key. And this is just the start!

Congrats and thank-you for your feedback.

Bye

Steve McKnight

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

AND

If it’s meant to be, then it’s up to me!
**********