you can do a lease option to a client and they can claim rent asistance for themsleves by taking their lease to the appropriate govt department.

However, this may open you (and your client) up to attack by the authorities if they make a decision that the rental assistance monies were to be only for rent and not to assist in purchase.

One…[Read more]

we use excel to do all of our property analysis and day to day running (40-ish dwellings in all). We even use it to calculate P&I accounts for houses that are under Vendor Terms saoes (WRAP) contracts.

There are no real limitations to what Excel can be used for, but some of the more exotic things that you may wish to automate may…[Read more]

you will be welcome back provided that you conform to the forum rules that you agreed to when you joined this moderated list.

the B

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“Life is a Dance”

please refrain from making these sort of comments on the forum.

You have had your say, and have heard the majority response to your words.

Please respect the rules of the forum or you will be suspended

respectfully

the B

__________________
“Life is a Dance”

nice to meet you at the seminar.

If you would like to email your spreadsheet to <a href="brent@propertyinvesting.com” class=”bbcode_url”>brent@propertyinvesting.com he can pass it on to me and I will have a look over it for you too.

cheers

the B[]

__________________
“Life is a Dance”

MI = Mortgage Insurance
a.k.a. (also known as) LMI, or Lenders Mortgage Insurance.

It is the premium that you pay to insure your lender against you defaulting on the mortgage. If you default the mortage insurer pays your lender and then come after you!

Up to an LVR (loan to Value Ratio) of 80% the lenders usually self…[Read more]

could you please include a link to the self sell website, or some other contact details ?

cheerio

the B[]
ps: nice to finally meet you in person

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“Life is a Dance”

postcode search gives:

Postcode FINGAL BAY, NSW
2315

Postcode FINGAL HEAD, NSW
2487

Postcode FINGAL HEAD, QLD
2487

Postcode FINGAL, TAS
7214

Postcode FINGAL, VIC
3939

So it may be any one of those

the B person[]

__________________
“Life is a Dance”

You are correct on all assumptions.

It is great to be able to get access to the spare equity in your investments as their capital value rises, but you must consider the increased loan repayments as you described.

However, if you are putting equity into another investment / deal that generates even more interest than the cost of your…[Read more]

can you just clarify which state this town is in, how big it is (population), nearby industry, etc, etc ?

cheers

the B []

Wow am I tired !…..

What an awesome weekend. It was really great to put faces to names and talk with so many of you.

It is just great that so many people have already taken action too.

I vividly remember taking our first steps and being very very frightened not that long ago. Don’t let it slow you down though, just embrace it…[Read more]

why not find out who the banks panel valuer is and strike a deal where you get them to value the property? If purchase goes ahead they are paid by the bank through the normal channels, if it does not then YOU pay them.

The way you control the process.

It has worked for us many times….

cheers

the B []
“think laterally, it avoids the…[Read more]

We will soon have settled 40 properties and have recently employed an admin manager who is just awesomely organised.

With her help we are now cruising pretty nicely. It was a bit of a stretch getting to the appropriate size to make it happen, but given the chance to start from fresh I guess we would have looked for someone much much sooner…[Read more]

“Why divide by 2?” well I didn’t make up the rule but that is certainly a very easy number to remember (and do math in your head with !), so I think that simplicity was the driving force.

This rule is so you can very very quickly filter out properties taht are unlikely to give tyou the result that you need.

cheers

the B []

do a search on ‘structure’, ‘trust’, etc on the forum and read the posts.

There has been quite a discussion on the relative merits of different structuring formats over the last couple of months.

Whatever you read, AD’s advice is good. You must seek individual advice form your accountant and solicitor to determine the correct method for…[Read more]

just a bit more info for you…

The rationale behind having the loan on the PPOR paid off and making the payments on the investment properties minimal (even convert loans to Interest only if feasable) is that you can not claim a tax deduction for cost of finance on your PPOR.

As this comes from the angle of a negatively geared portfolio…[Read more]

Hey mate you aren’t being a dud!

Like I said before “keep asking questions”. The really nice thing about this community is the amount of help that everyone gives each other.

You know, I learn something new from people of all experience levels practically every time I log on. So I reckon that everyone has a very valuable…[Read more]

just remember:

If you have legally minimised all of your tax and you are still paying heaps, you must be earning an enormous amount !!

the B []

I think that you know it is a low ball offer if for a similar house / location / tenancy in the existing market you are comparatively very low in price.

However, irrespective of how low it is; if you have researched accurately the Vendor’s requirements, then a combination of price and terms that seems ‘low’ in comparison to other…[Read more]

do a serch for trusts in the forum and see what comes up.

There was a posting that I contributed too about a month back, but I just can’t remember excatly the book/s that we discussed…

the B []

I have just realised that you are located in Cananda (well it is hard to answer questions and be observant… [])

I have just been reading “nothing down for the 90’s” by Robert Allen.

From this & other books I understand that there are a considerably broader range of techniques available in the USA and Canada for creative…[Read more]

I agree with AD & Quasimodo. Positive cashflow feeds you (property is an asset), negative cashflow eats you (property is a liability).

There are, however, legitimate investing reasons to have a negative geared property, BUT, you must fully understand the downside risk of this. ie, you are absolutely dependant on a rising market to…[Read more]

SENSATIONAL call !!

the B

Steve & Paul Harpers new product “Wealth Guardian” covers these issues in depth and is straight forward to understand.

It is a considerably expanded set of notes based on those presented at the last Masrters event.

Steve can probably shed a little more light on this []

cheers

the B

OPM (Other Peoples Money) in the form of…. Vendor finance !! []

You need to negotiate with bank re second mortage (if Vendor loan is secured) as they may reduce the LVR to deal with it. We have been told no to LMI if we use a second mortgage, but, if it comes up we will ask again as the answers sometimes change given a little time…[Read more]

we have similar experience to AD. Make agressive (not ridiculously low) offers and look for the win/win.

we also have agents givning us ‘first call’ now.

the B []

good preci’ jumbo.

Our reading of the market is that is is hot hot hot. We have been trying to buy property in Tas, but have been out bid many times by elusive “investors” []

Seems to us that many people are just getting on the bandwagon and buying; irrespective of doing their due diligence.

Missed out on two a few weeks back where we…[Read more]

a real winner for us has been adding an electrical inspection clause to our contracts.

I mentioned it in a post a few weeks back. Since then we have purchased some ex-commission places that looked great but had original 50’s wiring !

In all instances we have saved between $1,800 and $4,000 by negitiating for the Vendor to carry out all…[Read more]

please tell us how you get on, and your impressions with their service.

B

our only contact is in Hobart:

WT Partnership
2/88 Bathurst Street
Hobart Tas. 7000
ph.03 6234 5466
fx.03 6231 1314

Have not used them yet, but they came recommended, and sounded professional on phone.

Min sharge is a few $100. For smaller jobs charges are based on time.

cheerio

The B [] r …… u …….c………e.

Hilary and AD have pretty much said it all!

In summary:
1) Write it into the contract
2) Convince the Vendor’s solicitors that it is OK. We often put in a clause that says we want access after we have gone unconditional. This seems to satisfy most people.
3) Ensure that the contract goes ahead to completion (if it doesn’t, you must…[Read more]

another approach is to do works on the property during pre settlement and then have revalued as you have made substantial increaes to the security value of the property.

the B []

it is my understanding that once stamp duty is paid on a loan if you have it refinanced you are not liable for stamp duty a second time; as a loan on the security (the property) has already been stamped.

Anyone else have any clarity on this ??

the B []

1) If you are confident that the market is rising, go for a long settlement (at least 6 months) and hope that the market rises enough for you to get in at new valuation (hopefully closer to the magic 80%)

2) sign it up and on sell to another invstor, again requiring longer settlement

3) variation on 2) is to sign up with a long cooling…[Read more]

do you reckon that you can add, subtract and drive a calulator (though I guess that you could use an abacus if you are really into it [])?

When I attended the event I was impressed by the level of the notes. There are many fully worked examples and even better, places for you to work through stuff yourself while you are there, so as…[Read more]

great claculator, thanks for the link. I reckon that Sooshie will like this for her part of the site :o)

The B []

our experience is a lot like Anna’s, most of our friends are supportive but for many it really isn’t in their paradigm (nor does it need to be), even though they can see it working for us.

Mmmm, however, I have finally got to the point where I am not too shy to mention that we do a bit of property investing when we are asked what we “do”…[Read more]

whip out to the local book store and order a copy of John Burley’s (Australias) Money Secrets of the Rich, (thoughtfully marketed in a green and gold cover []).

We found it invaluable in getting over the first hurdle of getting the dollars together.

It has some day by day practical things to do (many of which are not glamourous, but…[Read more]

how does this affect the Vendors tax position wrt CGT etc etc ??

the Bruce[8D]

cheerio

Bruce

I am with Mr Hedge in congratulating you 3 star man !!

Also, I whole-heartedly agree with your investing strategy. Why try and rip someone off ??

Good grief, there are a b’jillion (a very large number) of deals out there and they are all opportunities to create triple or even quadruple wins (Vendor, Purchaser, Agent & Tenant all walk away…[Read more]

ANZ are the lender in question, though I guess that you could probably negotiate that with most of the majors. I think that the secret here is they have their own LMI arm of the bank that they deal with.

de Bruce []

There were a number of posts on the forum on just this topic about a month ago. Why not do a search ??

cheerio

the B []

I do have one gem for you on this topic.

Recently a lender suggested to us that we could amortise the LMI costs into the loan without affecting the LVR. i.e. LMI is not counted in the LVR calculation !

For a cheaper house it may only be a few hundred $’s (in fact it may be zero if you don’t borrow more than 80% in most cases) but it alll…[Read more]

good question. I haven’t really given it much thought, as we straight away approached it from the angle of placing as much as possible of our business with the one lender. It seemed to make sense from the stance of loyalty and volume of business.

This has some benefits as they see you are serious, and as the amount they have loaned you…[Read more]

I agree with RC. Avoid cross collateralisation, have stand alone loans (which may be secured by more than one property; depending on your strategy) and then you have flexiblity.

cheerio

the B []

our experience is that the contract date is the START of the waiting period for revaluation. However, having said that, 3 Lenders we have talked to have all said that the valuation will age in 3 months (not 4) and so we just have to have the cash for 3 months :o)

Note: we have been told that it is good to do at least something to…[Read more]

We talked this over with our legal folks some time back, and the idea of the amended contract price where money does not change hands apparently comes under the heading of conspiring to commit a fraud (ie you have not disclosed the your real position to the Lender).

We thought that this sounded like a bad idea (it is amazing how…[Read more]