[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 13, 2006 - 12:04 am

thanks wylie, very helpful!!!

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 11, 2006 - 12:37 pm

lol terry, how did I guess you would say that!

Come on people!
OK lets refine this notion of the *greatest cashflow generating business* requiring the least effort and the least amount of time to establish to those that can be stuck inside a simple warehouse!
cheers folks….work those brains my friends!

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 11, 2006 - 12:33 pm

Absolutely wonderful input and very much appreciated Celeste…I have been in a similar (less flashy) children’s playcentre in Townsville, which spurned my interest to begin with. I would love to know the primary frustrations you think and know mum’s, dad’s and children have in using these centres and what other income generating features/systems could be added for maximum cashflow and efficacy.
shalom and take care Celeste thanks so much and looking forward to your reply

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 9, 2006 - 4:05 pm

I would LOVE to know how they work celeste….Spill all here my friend!

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 9, 2006 - 4:03 pm

Celeste, thankyou for responding in the propertyinvesting website, I would love to hear about your ideas, which area does a roaring child playcentre trade…do you know any good family demographically oriented areas?

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

March 28, 2006 - 2:50 am

Sorry to go off topic, but does anyone know of a good resource to locate data on upper quartile, median and lower quartile price ranges for NZ properties?

thanks

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

March 23, 2006 - 1:58 pm

Hi Vito,
Are you interested in getting (finding) the right property, or creating the right property deal? Because in the latter case you can apply your strategy to any offshore market and succeed.
As for costs, I don’t think the sundry costs of property management and maintenance for Res. prop differ considerably.
So as not to simply nit-pick your sincere question, I want to tell you that the current population growth trend in the US is moving for affordable and lifestyle oriented locations like Tampa, FL and Phoenix, AZ (which had the highest Pop. growth of any city in the US last year) with a much higher level of affordability than many comparably sized eastern cities. It was found that 5% of Boston’s populous left the city limits in search for cheaper and more luxurious options in Nevada, Arizona and Florida. Additionally, many LA residents migrated inland to snap up relative paradise homes in Arizona-the median house price range of LA is approx 500K US whereas Phoenix is just approaching the mid to high 300k mark. With the ageing population and the rising of rates….affordability and lifestyle are going to be the big movers for the 40 billion odd American boomers who no longer need city proximity as retirees. I wish you the Best in your investing in the US!

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

March 23, 2006 - 1:43 pm

As odd as this sounds to some, I would never buy a tenanted CIP. I just believe there is not enough room to maximize income-thus the captalized worth of the property. I view investing in vacant CIPs as buying wholesale, because the market views it as having no inherent value other then the land and building replacement cost considerations; they are more focused on the usages of it. It is therefore my contention that all one has to do is find a high income tenant and you have immediately transformed a wholesale CIP into a retail.

nice to be back

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

March 9, 2006 - 4:26 am

pardon me, I pressed post too early!..[blush2]….. as I was saying, despite the downside of low leveragability on cash down comparative to residential IP; I can see enormous potential in increasing the value of commercial real estate instantly by applying creative solutions to multiple problems ie. pre-qualifying a durable high-income earning franchise to tenant vacant property (usually vacant due to highly specialized premises-albeit easily able to be altered), subdividing large/small spaces which have no conventional usage to maximize per sq meter yields. maximising income by utilizing all available space on the site and renting it out (ie, renting out naming rights, unused land, advertising space or allowing mobile phone towers poll/weather meters to be installed). All the ancillary income you can derive from commercial RE if you are creative enough, can more than pay for holding costs while searching for tenants.

Please post any creative techniques for maximizing income in CIPs (thus increasing the market cap rate and market value of a commercial IP)

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

December 1, 2005 - 9:21 pm

Hi there,

So far most of the rental increase ideas have been based on the assumption the tenant is already in the premesis. I hope more discussion goes into ideas for how to increase rent during vacancies. As for those who think creative value-adding and subsequent rental increases are untenable or immoral, I disagree. The market rent for your property is the rent that people are willing to pay, not what your neighbour is paying with the same structurally designed house. However, I do agree that tenants are not very gullable and need to be assessed, and given a very plausible reason if you are to justify increasing rent at the end of their contracts. (If you have a tenant who you believe is on the brink of deserting, don’t raise or only increase a little; yet if your tenant treats the dwelling as if they owned the place and truly love it, then they would naturally be more amenable to your creative ideas and wouldn’t put an objection or threaten vacancy.)

This leads to my belief that it is best to make as many justifiable value-adds as possible during the course of a vacancy. Why sit crying for 4 weeks with no rent when you can be smiling at the future increased yield of your property if you add a carport for $5000 @ a capitalization rate of 5% which will raise your overall property value by $25,000. The opportunities are endless. Through experimentation, discover whether tenants are readily embracing your value adds and rental increases, and if not, amend them until you find your MO. I recommend you read the Dolf De Roos book: *101 ways to massively increase the value of your property* – for little or no money

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

October 9, 2005 - 10:22 am

Melbdude, I spoke to you on MSN messenger, and you told me your name was Rhys. L’shanah tovah to you this Rosh Hashanah. I suggest you be more honest this new year and people will be less inclined to doubt the sincerity of your posts

Yidn_shalom24

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

September 14, 2005 - 12:16 am

Thanks for your input Wylie……my reference to the bar ws also speculative. If I was to undertake something like this, I would probe market trends and see what is selling. I found your advice regarding *pointing unimaginative buyers in the right direction, very helpful* thanks again

Yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

September 13, 2005 - 3:30 pm

Love to hear your enthusiasm over your success, it is inspirational for a young investor like me.

I hope you don’t let your enthusiasm or perserverance to take action wane by thinking this is the only diamond in the rough though.

mazel tov and I am very happy for you!

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

September 3, 2005 - 6:31 pm

Thanks DR X for your comments and kind words,

If you’ve read Steve’s latest newsletter, you will see his response to one of the forum posts regarding changing the perception of the exterior walls for low cost perceived benefit. He refers to concrete *sledging* (I think he called it), whereby they plaster a layer of wet concrete over a an entirely brick structured property. He is of the belief this is more cost-effective and profitable than changing the exterior of a generally more *charming* weatherboard dwelling. I’m interested while on this topic of renovations, whether you have undertaken any of these types of exterior projects and how hard/easy it was to implement, as well as it’s cashflow performance.

thanks again!

Yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 29, 2005 - 5:04 pm

it’s called synergy and compounding interest dazzling

the recipe of great wealth

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 29, 2005 - 3:05 pm

I honestly believe an RE deal is made and not necessarily location dependent as Steve advocates. However, at the same time, I think it is wise to try to tackle the market stats and examine them as pointers at least to the extent of analyzing their merit as guides to the prevailing property market sentiment of the past and the present; and then make an educated speculation of what the new flavour of the month will be. Why ignore figures when they are there as useful pointers?….but by the same token….why let stats obstruct your willingness to take action and create your own wealth through RE?

Yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 23, 2005 - 8:41 pm

Thanks Mike!

your clarity has helped me to understand my frustrations a little better with this perpetual question

regards, yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 21, 2005 - 3:18 am

Dr X

Thanks so much for your experienced advice i’m learning everyday

warm regards,
Yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 21, 2005 - 2:44 am

Hi Nicola, welcome!

From what I inferred in your post, you have the goal of positive cashflow + cap growth but predominantly pos. cashflow with this deal, am I correct?…..If so, I would like to know what you think you could equally achieve in terms of positive cashflow if you were to invest the same amount of capital (assuming you are to use an 80% LVR with roughly $80,000 inclusive of closing costs on a PP of $385,000) in other property. I ask this, because I note that you are entering a two-tiered minority property market- Firstly, the niche of resort investing, plus you are entering at the mid-to upper-class level where affordability is lower and tenancy demand must ultimately follow at a lower rate (thereby putting much more accountability for occupancy with the managers, and taking that control out of your hands). Additionally, I am concerned with the variety of speculative numbers being thrown around ie. the agent (working for the vendor) telling you it averages 80% occupancy p/a. Frankly, they can tell you anything *speculatively*; why not ask them the same question again and get them to swear it as a legal guarantee and see how willing they are. I also want to caution you to structure your home equity ie. in a term deposit which you then use as collateral, as opposed to directly redrawing that equity from your home, as the latter could seriously damage your lifestyle if the deal went awry. Although I haven’t seen all the numbers on the deal; I think it would be a wiser idea to invest in multiple positive cashflow properties…say 3-4 using the same equity in a more affordable market.

kind regards, Yidn

[Yidn_Shalom25Member@yidn_shalom25Join Date: 2005Post Count: 43]

August 20, 2005 - 5:43 pm

Dr X.

thanks for responding;

My figures were very tentative and I have no set figures I go by as I have never LO’d before but am seriously considering it; although I do have a limit of CoCr which I would stick by when going into LOs. My figures were just used to illustrate my concern that you may be giving up too much profit for the sake of the potential homebuyer.

I am learning from others posts here as I go. What I want to ask is, what is your goal with the LO?…..I don’t really understand the investor benefit of using an LO for positive cashflow if it is only a yearly lease or a five yearly lease. To me, I would want a wrap/LO to last at least 15-20 years as I would then be able to apply compounding interest to the recurring pos. cashflow by investing it into other high yielding and also high capital growth ventures with balanced risk levels. This is opposed to the idea of seeking to receive unrealized cap gains of only approximately 50,000 after 1 or 5 yrs, and then having my purchasing power further diminished by only being able to re-finance on that growth at an 80% LVR, while also suffering the burden of increased interest rates on my new loan/redraw. It seems to me you seek to profit primarily from a pre-set option cap gain, am I right? please correct if i’m wrong. I understand the logic in a stagnant market of locking in cap gains. But my philosophy is that positive cashflows and cap gains can be made creatively in any micro-market regardless of the property cycle. Perhaps I am too optimistic

regards, Yidn