I too am fairly new to this game. I have a couple of properties and I am currently looking for another one.
The day before yesterday my wife and I put an offer on a house for sale. I’ve put in offers for different properties on about 6 occasions. I’ve done a lot of research and I know a lot more than agents think (they think I’m Naive because I am so young) It’s just that when it actually comes time to deal with the agent with regards to writing up offers or the like, my mind goes slightly blank. When I put in subjective clauses normally the agent will challenge me as they aren’t commonly used clauses. It is then that I don’t want to be too ambiguous because I’m not 100% sure that I’m right.
In a nutshell I am learning as much as I can about investing in real estste and particular how to deal with agents. I find the more offers I write up, the more confident I get. When I show confidence the agent often stops “BS”ing me.
Hope this helps, there are a few books on agents that you can read. Craig turnbull has an great point in “It’s easy to be a property millionaire”
Always set your goals further than you can reach
– Then stretch that little bit further
To me, money can be lost in so many ways, but it can be gained in more ways. I’ve flirted with the idea of making money in many vehicle strucures, but I believe you should choose something you love to do (as long as it’s a way to reach your goals) and be the best _____________ you can be!
I love property and people, and it wasn’t till recently that I developed a skill of number crunching that rewards are following.
As the American army put it “Be all you can be”
Always set your goals further than you can reach
– Then stretch that little bit further
By the sounds of it, you’ve found a positive cashflow investment, good on ya, I’m still looking for one.
I use a basic calculation to see whether a property rental is +ive cashflow or not. This is simple and I hope someone can elaborate on this so I may use a more precise formula.
Weekly rental ($190) minus property managing fees (usually 8.5%) multiply by 52 weeks, then divided by the interest rate (interest only loan at, lets say 6.5%) then finally divided by 106%. I choose 106% because I usually borrow this much of the purchase price to include settlement fees and the like.
$190 / 108.5% x 52 / 6.5 / 106% = $132,162.42
This is the figure I try to purchase at or below to create a cashflow +ive property. But it isn’t easy to find these (in my experience)
If someone could elaborate on my comment, please do as this calculation I came up with has come from a few different sources, and I’d like to know a better quicker or easier formula.
Always set your goals further than you can reach
– Then stretch that little bit further
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Always set your goals further than you can reach
– Then stretch that little bit further
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Always set your goals further than you can reach
– Then stretch that little bit further
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Im going to the D&P Hanna info night at burswood, I can’t afford to go to any courses yet, but I love going to info nights as they get me excited!
Even if I hear the same things I have heard at other seminars I’m sure somethings will be different and as Steve says “success comes from doing things differently”. I think that $60 could save me $60,000
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Always set your goals further than you can reach
– Then stretch that little bit further
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Great to see a lot of young fella’s getting into PI. I am 21 and I STUMBLED into my love for PI as I got Married a 19 and the first property we purchased was a Mortgagee sale, about 12 months later I then realised if I could buy more of these deals I’d be laughing!
Now I’ve sold that one, bought land in mandurah and bought an apt in South Perth (which I could of got cheaper – I was too emotional, not analytical.
We are about to sell our land and then we’d have about 200k to spend on a PI. So I would love to come out and share ideas.
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Always set your goals further than you can reach
– Then stretch that little bit further
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Ziz, I’m not exactly sure what you mean about sell an option to buy???
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Always set your goals further than you can reach
– Then stretch that little bit further
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Thanks AD, you are very helpful. I was almost embarressed to post this topic origonally as it seemed silly coz although I am learning I have so far focused my knowledge in other areas.
as the saying goes “if you don’t ask, how will you know” (or something like that)
So thanks, and thanks for the example it certainly helped
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Always set your goals further than you can reach
– Then stretch that little bit further
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