Steve, it’s funny what different people pick up on when they read the same book!
The thing that stood out to me as a major part of your success was the partnerships you forged, namely your business partnership, and your marriage (but not necessarily in that order).
You would probably argue that your Christian faith was yet another important partnership, possibly the most important, but putting aside religion for the moment, it would seem that your other two partnerships have been integral in your success. Yet any business book I have read says be very wary of business partnerships, as they have a proportionally high chance of going belly up. One writer stated the best way to end a friendship was to go into business with him (or her). I would be interested in hearing anything you may like to elaborate on with regard to forming business partnerships, or if you could direct me to any previous correspondence on this.
All in all I found your book to be very good, but with a little too much emphasis on the evils of negative gearing – I totally agree, but thought it was a little overstated. I would have liked to have read more on how you solved problems you came accross.
Also I didn’t notice you factoring in much income loss for vacancies. Lenders I have spoken with usually allow for 4 weeks annual vacancy when working out servicablity of loans. Your insurance allocation seemed very light, and your R&M allowance seemed very light too (P.68).
And lastly, I was wondering if you are shifting your emphasis from residential to commercial as it requires so much less effort, while the returns are superior, though admittedly the deposits needed can make the eyes water.Regards, Julian
PS Impressed with this forum!
Hi Julian,
Nice to hear from you all the way from NZ!
Very perceptive insights… my relationships with Dave and Julie are cornerstones to my success. Rencently I wrote somewhere that your spouse needs to be your #1 fan, not your #1 critic.
Yeah, more business relationships fail than succeed, I believe having common goals and being accountable is very, very important.
Re: too much emphasis on the evils of neg gearing… perhaps, but to explain how a concept works you need to attack its weak points. Too many people don’t understand, which is why I went into in in a lot of detail. Besides, it is a major point of differentiation between me and other property educators.
Re: vacancies, at the time of prelim analysis I allow for 4 weeks unless there are mitigating factors, in which case that base figure goes up or down.
Re: my emphasis… I’ll buy anything that makes money from day one [
]Great to hear from you and hope to read more of your posts in the near future.
Cheers,
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
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