How can you buy so many properties so quickly?

Hey there Julie

I just found this site a few days ago, and must admit havn’t read the book.. but buying places starts off slow, and the more you get the more you can get…

I bought my first place at 20, then another at 21, then another 3 months after that, then another 6 months after that, then another about every 6 months after that… im onto my 6th now and hav just turned 24…

first of all people obviously dont buy places outright when starting off or do so vary rarely, they get them under mortgage so they hav control of the property. buy places that firstly pay for themselves, then save the extra and keep on saving all you can… for the first few years an over seas trip or a new car is a very bad idea… all these things will come with patience when you can more afford them.. (and when you can afford not to work)

Hopefully the places you buy increase in value, you then use the equity to buy another place, and it goes on and on…

soon you will hav a small portfolio of real estate, you will also be in a great deal of debt, but as long as its well spread out, and your not letting the money go to your head you will eventually have many places at your disposal. if things go bad you sell one, or 2 lol…

a secure, full time job helps with getting the loan(s), as well as minimal debts and expenses..

just remember, if u put your mind to it you can achieve anything!

Jason…

If you can keep comming up with 20% deposits, then you can keep on buying property. There are many ways to get the deposit such as wraps, option fees, wages, capital growth, saving positve rental income, money partners etc.

Watch out for ASIC regulations if you are going to advertise for investors too!

Terryw
Discover Home Loans
North Sydney
[email protected]

Hi teacher,
wow, yeah, great to hear your stories!

” buy at the lower end of the market (if not the lowest) and then when all the cheapies are gone you hav increased the value of your place to around the next cheapest place available… “

if that is true i’m gonna be a happy camper, having just bought 3 this year at what I call the ‘bottom of the bottom of the market’ and done up two

hehe

cheers-
Mini

http://www.vocalbureau.com

Good work Teacher. I’m not far behind you. I recently did something different and decided to sell a unit in Sydney just because we had spent the time to renovate it. It was in a prime area because of the hospital, train station, university and sat out on the urban fringes of Parramatta. We sold that to raise more funds and actually got into a dilemma of what to do – buy property or use it to fund a lifestyle. We funded a lifestyle and got a new car which replaced a badly worn almost broken car.

Hi BB
my old nemesis

how’s your taxi driving going??/
you know what they say about never taking investing advice from taxi drivers?

>Haven’t you leant your lesson yet?

I will never stop learning lessons (i hope!) I have sooo much so far.

>You bought crap

Hmmmmmm – define crap? (I am assuming that in the sentence above you were using the word ‘crap’ metaphorically?)

Every house I bought was structurally sound, as verified by a builder’s report – and two are working out great –

One of them (that didn’t need any renovations) is returning 20 percent after management costs, has been tenanted the whole time since I bought it bar one week in between tenants.

The other one which is almost finished being renovated (floors being sanded this week as we speak) will have a tenant moving in next week who has literally been hassling the letting agent every few days to find out when it’s ready – that one will also return 20 percent clear based on purchase price PLUS renovation price. It also happens to be in an area which is going up in capital gain (who knew?!!!)

The third one I bought for 16K with a sitting tenant (long term, documents) paying 90 per week. That was a 29 percent return, but she moved out. Bummer. So we renovated. So far no new tenant though, so am deciding whether to drop rent to previous level of 90 per week (then only an 18 percent return factoring in renovation costs) or put house on the market as is in pristine condition.

Because 18 percent still not too bad result and as I was planning to buy and hold and renovated accordingly I think I will perservere a little longer before making my decision.

So learning, yes – but so far so good, 2 out of three anyway

>crap houses and the pain has caused you to pour your poor >little heart out to everyone on this forum

What I discuss on this forum is numbers, deals, opinions, but i wouldn’t call it ‘pouring my heart out’ feelings type stuff.

dude -I won’t be offended if you don’t read my posts. Your choice. not pain so much as sharing problems that came up and what I did or was thinking about doing. I made the choice to buy three cosmetically challenged places rather than one middle market place because as you go up the price -range the rental yield goes down. Also for the chance to increase the value and rent.

>How much pain are going to put up with before you wake up >and sell these bits of rubbish (you call investment >properties)and really invest in quality
>property?

Wow, you’re going hard on the metaphors tonight….
I think that as long as they are tenanted and giving me the desired returns (I’m aiming for 20 percent) why would I sell them? I think 20 percent return from a newly renovated property with all physical problems fixed that attracts quality tenants would qualify as a ‘quality property’ as far as I’m
concerned. These properties should continue to give me cashflow and go up in value too. The repairs and renovations i’ve done should last a good few years (brand new bathrooms, heating, flooring, etc) and as far as hot water cylinders going or roofs developing leaks, that can happen on medium properties just as much as cheaper ones. Besides they’re all fixed up now

>As some little girl on this website said,all her money is being >poured into paying for repairs.

Adjudicator’s note –

‘little girl’ usually means a girl under 12. That does not compute. So did you mean to be both patronising *and* sexist with that remark? *bzzzt* You lose points and credibility.

Back to the issue
I certainly don’t spend ‘all my money’ on repairs, I decide after the builder’s report whether to purchase or not knowing what has to be done and pretty close to exactly how much that will cost, and count that as part of the purchase price when calculating my yield. I only invest money I consider to be ‘spare’
anyway

I’ve already made back three times what i would have earned in a term deposit *at least* and that’s not even counting capital gains (haven’t had the properties valued yet but am going to soon) – and that’s even counting the vacant one. plus the ‘capital’ is appreciating not depreciating like a cash deposit does, (well the land portion anyway)

>KEEP AWAY FROM THE BOTTOM END OF THE MARKET!

look if you wouldn’t mind yelling that a bit louder, I’d appreciate it- you might draw a crowd. It would be delightful for me to know that you wouldn’t be vying for the same properties as I am.

>Go for the middle.
*punches BB in the guts*

OK but you did ask for it….

>I forgot to say G’day Mimi,

*looks around wondering who he means and then realises he probably was trying to write “Mini” and just made a typo cause n is next to m – *

*crosses mind that BB was having an ‘I deliberately spelt your name wrong to show you i soooo don’t care’ -type moment*

>hope the rest of your life going BLOODY terrific!!!!
yeah it is thanks!!
health, wealth, and happiness to you and all who sail in you

cheers-

Patrick

PS
I was on the debating team at school

Yeah you tell him Mini!!! Kick his Ar*e!!! Cremin and I are hopefully gonna go the same way as you and look to the scum suckers at the bottom of the pond as long as they are structurally sound and will make money!! A bit of hard work never killed anyone.

Mini, you have been an inspiration for many of us on the forum and I don’t even consider holding BB’s comments in my mind. Your stories and anecdotes helps us learn through you and I personally value that. So please don’t stop telling us your stories coz it would be a loss.

Cheers
Steph.

Success is 1% inspiration and 99% perspiration.

G’day Mini,
Wow what a come back!!! Yes it was a “typo” If I had deliberately spelt Mini incorrectly I knew you would paste me all over the place!!
Heated flooring for your tenants!!!! Hell I don’t have heated floors in my place!! I must be poor!
Twenty percent return

Bruce G.

P.S. Minimogul why don’t you put that post of yours to music and sell it to some country bumkin singer so they can annoy the hell out of me on radio stations when I’m on the road? (sounds like a song).

Mini,

After reading your replied I feel like going out there and buy the next IPs.

Good one Mini

Kind regards

Chandara
[Keep going, you’re nearly reach the end of financial freedom]

Hi all,

Mini – great comeback, but I think bruce is a troll… give him attention, and he will keep coming back, although it would be superhuman of you to ignore him at times…

Cheers
r