Viewing 9 posts - 1 through 9 (of 9 total)
• kazza4k
Member
@kazza4k
Join Date: 2003
Post Count: 10

Hi everyone
i’ve read people asking questions on the 11 sec solution and i’ve tried to find out just exactly what it is but maybe i’m looking in the wrong area. could someone please explain what it is.
sorry if this is a silly question, it’s obviously something that i should already know. []
thanks karen

ianbiller
Member
@ianbiller
Join Date: 2003
Post Count: 1

why don’t you read the book

kazza4k
Member
@kazza4k
Join Date: 2003
Post Count: 10

thanks for that
im looking forward to it arriving in the mail, until then i was just asking a question
karen

muppet
Member
@muppet
Join Date: 2003
Post Count: 900

Hi Karen

The 11 sec rule goes something like this….take the possible weekly rent divide by 2 and then multiply by 1000.
This should be about what you should pay for a property to make it positive cash flow at about a gross yield of 10.4%.
eg
rent of \$400 divided by 2 = 200 * 1000 = \$200000
rent of \$150 divided by 2 = 75 * 1000 = \$75000
rent of \$120 divided by 2 = 60 * 1000 = \$60000

I hope that this gives you some idea of the 11 sec rule.

Regards

kazza4k
Member
@kazza4k
Join Date: 2003
Post Count: 10

thankyou muppet
that helps a lot.[]

karen

jerryw
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@jerryw
Join Date: 2003
Post Count: 4

[:0)]
Hi Guys

this rule also needs to take into account your intrest rate in relationt to the property being cfp. also does anybody know where steve mcnight does most of his property shopping?

Keymaster
Join Date: 2013
Post Count: 3,225

Hi Kaza,

Any rule is only a guideline. As Steve points out, it’s a tool to help quickly sort the possibles from those to dismiss. If you find a property coming close to the equation, look further into it.
Some properties have been touted to yield up to 15% return. Others coming in at say 9% might still be worth investigation, depending on your other up front and on-going costs.
When your book arrives in the mail, consider this. I always highlight the important stuff in these types of books. It will help when referring back to points, for the concepts sink in.

Happy hunting,

Regards, Phil

Participant
Join Date: 2002
Post Count: 636

Wouldn’t that take the fun out of it Jerry ??

Enjoy
(Andrew)

It is good to have an end to journey toward, but it is the journey that matters in the end.

The DIY Dog Wash
Member
@the-diy-dog-wash
Join Date: 2003
Post Count: 696

Jerry

I do know where Steve and co do their property shopping … unfortunately you aren’t ready for that.

Cheers
Leigh K[]

Read, learn, grow but most of all do it.

Viewing 9 posts - 1 through 9 (of 9 total)

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