I have a sob story that you guys might be able to help with.[:0)]
I’m a 49 year old married man, no children at home, living in house worth $295k, outstanding debt $107K, limit on line of credit $40k.
At the moment I can’t extend this due to my lack of income, which is around $6K, that’s not a typo,[
] per year. Yearly expenses are around $35K.[]
I’m trying to revive my career as a musician [8D], songwriter and teacher, but hate the idea of a full-time job. Being in the music industry is very rewarding aesthetically [], so I’d hate to give it up. I’ve got lots of irons in the fire, but either the fire’s not hot enough, or I’ve got to many irons, or maybe I should be using marshmallows. Anyway, my astrologer predicts great affluence for me in 2011. That’s a long time to wait, so I’d like to close a few property deals, to help the prediction come true.
I manage my own super fund, worth around 60K, so my auditor might let me put $20k of that into a property under certain conditions.I live in SA, where wraps are illegal, so Lease/options seem the way to go. Except that the maximum term on a residential lease under the Residential Tenancies Act, according to a usually reliable source, is 2 years. Another member here has said that it’s taken him years and thousands of $ in solicitors fees to get to be able to do L/O’s in SA.
Leigh has a plan https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1099 whereby
he puts in time, his money partner puts up all the cash and Leigh gets 50% of the profits…
I put a similar idea to my would-be money partner, who then consulted a bigger would-be money partner. Their conclusion was – what do we need him for? We’re putting up all the cash, we’re standing for the loans, we can hire a real estate agent to find the tenant buyers. Nice idea mate, thanks.
I’m forever reading about people who woke up one day, realised they were $200k in debt and then decided to invest in property, which they did, and as a result they are now millionaires and it only took 3 years.
I would love to hear any and all suggestions regarding how I might start to generate some passive income from property, starting from my highly unsustainable financial position.Hey man, how can you only earn $6K & spend $35K?
How are you financing the remaining $26K on a yearly basis?We’re eating into our line of credit. The end can’t be that far away. I’m praying that one or more of my other schemes will bear fruit before we reach the limit of our loans.[
]Can you get affiliated with some music schools in your area & provide music tuition? Tuition hours can suit you & that may stop your cash drain. Build up a few months of steady income & your bank may look at your situation differently.
Hi,
What you wrote about your astrologer is one of the funniest things I’ve read all year [
].I am a little concerned that you are looking for a magic answer that means you can continue to live your life as you know it now and end up rich.
Let me be clear – that is about as realistic as believing the Seekers will have another #1 hit.
It’s disappointing that while you seem open to the idea of creative options, you’ve asked two people and now seem to think the idea is destined for the bin.
Whatever your approach this much is certain, unless you control your spending then you’re in BIG trouble. You’ve lived off your equity and when inevitability hits you will be in poor financial shape.
Your journey will need to begin with either spending less so that you income matches your salary, or alternative earning more.
But it’s a huge mistake to use investment income to fund the gap because you are not addressing the real problem. As I wrote in my book… that’s a band aid solution to a massive haemorrhage.
If you haven’t yet understood what I’m writing… the lifestyle you have now is probably the lifestyle you’d like if you were financially independent – yet you are living on borrowed time.
If you want to get out of the rat race in three years, then make a plan rather than looking for a quick fix or magic solution.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks everyone,
All very useful comments.
I appreciate the time you’ve all taken to read the post and especially those who responded.
I think I’ll explore the creative financing a bit further as Steve suggests.Hi, Soma.
Have you thought of selling your home? With the cash from that, you could buy quite a few cash flow +ve properties?[][]
Self managed super funds CAN NOT borrow – damn damn damn!! So many people could make a living if they could use super funds to borrow to invest in residential real estate. The only exception to the borrowing rule is a certain type of share warrant, which is guaranteed – and therefore not such a great return – bummer![xx(]
Say Steve, why don’t we start a petition to the government to allow release of super funds to invest in real estate, which could only be sold to invest in more real estate, otherwise it would have to return to the fund? With over 7,000 looking at this site, you could start a ground swell…..[8]
] per year. Yearly expenses are around $35K.[
], so I’d hate to give it up. I’ve got lots of irons in the fire, but either the fire’s not hot enough, or I’ve got to many irons, or maybe I should be using marshmallows. Anyway, my astrologer predicts great affluence for me in 2011. That’s a long time to wait, so I’d like to close a few property deals, to help the prediction come true.
]
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