I put a post up a week ago asking for people to share a few of their success stories. And guess what not ONE reply!. Makes me wonder if i should be taking any advice on this forum seriously. [
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Here for a good time not a long time, just do it!.
To be honest Cremin it is easy to miss a post at the moment with the amount of traffic coming through the site so don’t feel to bad. For me I saw it briefly but I have been (and still am) very busy sorting out some deals.
Anyway my story is a house I bought to Renovate about 4 months ago. I looked at the reno costs, etc and decided it would be worth doing (cost – $118K , reno – $30K Resale – $190-200K).
I then looked around the market to see what was giong on. Seemed to be a few renovated properties for sale but upon talking to agents everybody wanted a renovator to do themselves. (gotta love the home improvement shows).
So as a result of that I listed the house for $159K and will settle next week for $158500. I sliced a little bit of potential profit off the deal but also didn’t have to actually organise the renovation. i always remember somethign Stuart O’Neill told me….always leave a sandwich on the plate. That bit of profit is all theirs.
So before costs profit of $40K for a 4 month deal. Gotta be happy with that.
Enjoy
AD [:0)]
(Andrew)“Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”
Cremin, I’m new to this too! Don’t be discouraged. Tell me what are the opportunities like in the UK?
It feels weird to say ‘Oh listen to me, I’m such a success story’ especially when a lot of us feel we’re on the journey still rather than ‘arrived’ – but here goes, *beats chest*
“From 0-3 properties in 1 year!!”
Wa-hey!!
cheers-
MiniMaybe some of us are humble Cremin and like it that way, but if you want some reassurrance Ive done 50 properties in 3.5 years. I only had 3 when I was lucky to meet David Bradley when he was just starting out. Took his advice and bought alot of houses to wrap. I still do a few wraps, probably another 20 in the next year, but also now buy whole blocks of flats and commercial. I hope this is encouragement that it does work.
Cremin,
I believe am on my way to successful investing. Currently owned 5 IPs and currently looking for more.
I only buy property that does not need reno ie. buy it and rented out instantly.
Kind regards
Chandara
[Keep going, you’re nearly reach the end of financial freedom]Cremin,
My thoughts are the same as MiniMogul. Not all of us want to “brag” about what we’re doing. We are all still learning.
Anyway if you need figures here goes:
Bought our 1st ppty late Feb this year cost $80,000 did reno costing $7500, valued after reno at $125,000. Currently rented at $165. Since then have bought 2 blocks of units and two other houses. This week 2 of my 3 tenants in the houses have asked to be wrapped.
It’s not hard, just follow Steve’s instructions.[
]Del
i have noticed most of the success stories relate to amazing capital gains, and stories pertaining to renovations etc etc. and not superior cashflow.
even on the country properties where people started out thinking cashflow they have been pleasantly surprised by the capital appreciation.
in a way thats why i think steves strategy is difficult to evaluate because in the last 5 years we have seen incredible capital growth so it difficult times (ie vancancies etc) one can sell and make a tidy profit – no harm done.
the test will be does the strategy work when the market is flat. i think at the moment the ‘ideal’ of cashflow is a great hedge against where the real money is. ie capital gains!!
im just brainstorming. is this a fair comment???
Aussierogue,
If you are referring to my last post, that’s not the impression I meant to give. All our properties are in rural areas.
All are good +ve cashflow.
“THE TEST WILL BE WHEN THE MARKET IS FLAT…ETC”…
Yes, that is why Steve has set up the Millionaire Apprentice Program. It prove that it can be done. I guess we will all see in 12 months time if others can replicate his success! Hopefully they can…[
]Regards,
Del
thanks del – no i wasnt just rfrng to your post.
but you must admit that the captital gains have helped most forumites.with regard to the new program. i think there is every chance we are going to see 10-20 pct growth in the next two years, as we have for the last 2 years. and hence there a big chance for success.
i will be interested in alonger time frame.
just to clarify – i think this approach ie positive cashflow, is a much more sensible approach to accumulating wealth/income streams etc then going into huge debt (-ve geared) – in the current climate.
cheers
Hi again Aussie,
Yes, I definately agree, the capital gain is pink icing on the cake!![
]As long as people’s IP’s are at least paying for themselves, then we should all have a pleasant journey, compared to othes with who are -ve geared with interest rates on the move.
Bye,
DelHi i’m a show off heres my story
Finnished studying Theology 7 years ago. My net worth was 25,000 we had sold our home bacause we needed the cash to study. Anyway got a full time job and started buying property. Bought 10 houses in 1997, 4 in Adelaide paid an average $23K for them, 2 in Mowell for $28K each, 1 in Tas, 2 in stawell, 1 ararat. Since then bought 15 more but have started to sell some. To keep it short every house has appreciated in value. Today my net worth is about $600,000. By the end of the year i will own 10 properties in Australia (after i sell some) all are cash positive, currently own 3 in New Zealand (bought 4 weeks ago).
I have quit my job (actually asked for a year off without Pay), and am moving to NZ for a holiday for 1-3 yrs, where i will buy houses, fix some up and enjoy my wife and 4 kids, i’m aged 39. Never dreamt that i would get to the stage where i never have to work again by 39. my plan 2 yrs ago was to retire at 45.hope this encourages you. But be careful the opportunities today are not the same as even 1 year ago. i have 4 houses purchased 12 months ago (for about 40K) that have doubled in value, i cannot see that happening in the market today.
WestanWestan,
You win!!![
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Congratulations on a great achievement!I guess the moral of this story is:
“You’ve got to be in it to win it”
I agree with you last statement about property values. One cannot expect this type of craziness to continue.
We should all be in for very stagnant time, “sometime” in the near future…
But as long as we all are cashflow +ve, we should ride it out OK.Del
g’day westan
great story – like reading your posts
a few questions
– what happened in 1997 that gave you the courage to buy 10 properties?? was it a sign from above?lol
you were b4 steve who started in 1999 i think?? who was your mentor and what was aim cashflow of cg ?
another qstn wch you dont have to answer
your net worth is 600k brilliant – what is your debt?
cheers
Hi Cremin,
The way you measure success, or in fact a success story, may be different to the way I’d measure it.
Having a mother of 8 (almost nine) make her first repayment, is a success in my eyes, yet others wouldn’t have considered her a potential wrappee in the first place.Cheers
Sooshie []“small steps make the journey” (SAS)
Sooshie,
That is so true!! Success is a very personal issue. It means something different to each and every person.
I feel like I AM a success in property investing, because my attitude to life has dramatically changed.
I am so much more motivated, happy and energized. I love living more. I enjoy trying to encourage others. I also appreciate what I have more.
If one day I make money, that’s an added bonus!!!
Del
these stories are great and very encouraging! …
Just a small questions .. do people mainly focus on rural areas?? Is that the trick? ..
I am very new to this and would like to learn as much as I can
We only have two places – one showing with a positive cash flow from day one and one showing a slight negative cash flow. The negative one is because we’re paying a P&I loan, and if we did go to IO, it would turn cash positive tomorrow.
Both have shown good capital growth (the cash negative one has had a 28% increase in roughly 9 months and the other one about 47% in 2 years – both based on a recent bank valuation).
While it’s not 160 properties – or even 50, our strategy is to be fairly cautious and we’re happy with what we’ve done (so I’d consider it a success story even with the 2 IPs).
Hi Guy’s
good comments about success. Financial success is way down the list of important things. but it is nice to be able to share some of it and not have to worry as much about how we can pay for things, done that in the past.
Aussierogue in response to your questions
“what happened in 1997 that gave you the courage to buy 10 properties?? was it a sign from above?I was keen to move ahead financially and my wife wanted to stay home and look after the kids. I have always been interested in investing at that time shares were more of my interest. When i moved to Stawell in the county i couldn’t believe how cheap properties were and knew if i bought them they would be putting cash in my pocket. i was a bit nervous many advised against it. I even went to an accountant in town who told me not to do it, but to invest in education Bonds, so my kids could be put through Uni, (still have the receipt for $50 for this advise). I didn’t have a mentor and just beleived it would work but knew it was a risk. Capital gains was not my goal only cashflow, and it was the properties that people said would never go up that have gone up the most. Especially elizabeth in SA, People in Adelaide were horrified that i would buy there, i sold two and have two on the market at 95K they only cost 25K.
I said my networth is 600K
I’m in the middle of settling on properties but as it stands right now. I have 1.55 million in properties, debt of about 950K and cash of 60K
As more properties settle i will decrease the value of the properties and debt and increase cash.
regards westanthere is a lot to be said about contrarian investing
every man and his dog is buying property…..which means its time to sell property and buy S…..s
WHEN EVERYONE AGREES, NOBODY IS THINKING
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