Ok, we’ve read the book, we had two IPs before reading it and have subsequently purchased two more…but $1M in a year?
We are fortunate enough to be earning good money, have all 4 IPs tenanted and for the next few months we are able to save at a good rate (~$2.5K/mth) but still we cannot see how we can do it!
In a few months we are going to have to move to Melb. where we don’t want to rent, but we’ll be lucky if we have enough enough save a deposit for a moderate (~$300K) house in the outer suburbs. With 3 kids, we cannot go for something small…so what do we do?
We have a goal…in excess of $100K p.a. from investments within 10 yrs, so the $1M in a year sounds like a good place to start – we’d have to do it over two years, but then it would be an excellent basis to sit on for those 10 yrs to allow the property to drift up in price. OK – sounds good, but like we said above…we’re buggered if we know how.
Any tips? Mentors? Anything!!!???!!!
Please help
JoYour on the right track. Property investing takes time. Achieving what you want to in 12 mnths is BS. It cannot be done.
Well, as Spruiker no. 5 said recently:
“Short of blind luck, it’s impossible for anyone to become a millionaire in a year.”
Spruiker No. 5 also said, “Here’s my apology if you want it: If I have created the impression that people can become millionaires in a year, then I apologise for that perceived error.”
If it’s good enough for Spruiker No.5 to say that, it’s good enough for me!
http://jenman.com.au/NewsNews1.php?id=227
kay henry
so who is spruiker No. 5? Is it the owner of this Web Site?
Hi Guys,
i wouldnt be too sure on that, ive read many books and heard of stories from the media, of people turning millionairs in 1 year…
… so anything is possible…
Cheers,
sisHi again,
a wise man once said,
Better to aim your spear at the moon and strike only an eagle, than aim your spear at an eagle and strike only a rock.”
The point – if you aim to be a millionaire within a year, you might achieve it in 2-3 years, but if you aim to achieve it within 10 years, you might achieve it in 20-30 years. Again the point is – AIM HIGH!!!.
Kind Regards,
George.“If You never never ask, you’ll never never know”
I agree with George.Set your goals then ask how can I achieve.The answers are all there .You just have to ask the right questions.
Go for it.
RussSo many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Ahhh… so the answer is just in believing it can happen huh? And it doesn’t have anything to do with having a job or some savings?
How does this millionaire in a year thing work, folks? I’d be interested to know how each and everyone in Australia can be a millionaire in a yea. Gee, I really think if it was so possible, that we’d all be millionaires.
Or is it just “negative” (or reality) thinking that stops us all from being property millioniares in one year?
kay henry
I agree with your healthy scepticism Kay, but disagree that everyone would be doing it if they could. Plenty of people lack the drive to achieve even moderate levels of success that are within the reach of most. A lot simply don’t have the knowledge, but many won’t act even when they do.
There really is something to be said for the power of positive thinking, but we have to remember that we’re not really talking about a level playing field when it comes to being millionares in a year. Some people have higher paying jobs, others have more equity, others still have a finance/real estate background. To become a millionare in year from scratch i.e. no savings, no equity, even with a healthy pay packet, would be nearly impossible. However, there’s no harm in setting such lofty goals to keep the motivation going, so long as you don’t become discouraged if you don’t achieve it.
Matt
I think Jo – you have got this idea wrong. It is alot easier to have aportfolio of 1 million dollars worth but not to own a million dollars in a year…let me explain by example:
If you put deposits down on 10 properties with positive cashflow whilst each of these 10 properties is worth $00,000. That equals $1 Million dollars in your portfolio. The problem is that the banks own most of it. Putting down deposits on these 10 deals in one year is not that hard to do. Let me explain…
For 10 properties each valued at an average of 100k, then the deposit on each would be 20k (20%). 20k x 10 properties equals 200k in total deposits. Now you may ask, where in the world will I get 200k from. Easy. there are many ways – just come up with creative ideas. One way is that if you own your own home and it is valued at 250k(assuming it is 250k worth) the bank will definetely give you the full amout of your home – if not, they will easily give you 200k to invest with – well, theres your deposits for your 10 properties. All you need to do now is to find 10 good positive cashflow properties. Best of luck
Kind Regards,
George.“If You never never ask, you’ll never never know”
Originally posted by chrism9645:Ok, we’ve read the book, we had two IPs before reading it and have subsequently purchased two more…but $1M in a year?
Jo,
It’s not a race.
Your strategy sounds fine.
It fits your risk profile & timetable.
Don’t get distracted from your goals.
Cheers,
Aceyducey
I am actually talking about managing $1M worth of property, not actually making $1M in a year. If we were able to take on a portfolio of that size, our 10 yr timeframe would be about right. (assuming we could get to $2M of property in 2 yrs)
The question is, that $200K is bloody hard to get! If you have a home you can use – great, but a lot of people starting out in this stuff just don’t have that. We have a great income, but still cannot see how we could get to those kinds of figures that quickly.
Is there something we are missing here?
If someone had $200K to get to the $1M is just a case of selecting the property – that is just about being patient to select the right ones…but how can the ‘average’ person get there?
Or is this $1M challenge only viable if you own your own home or have a spare $200K lying around?
Well theres equity in your other 4 IPs that you could use, as for saving it, you don’t need to save it all at once, you can get your properties revalued every 6 months, so buy 5 now, get them revalued, then use that equity and what you have saved to buy 5 more.
Of course it is alot harder that the market is going cold (so you don’t get the rapid property increases).
Also perhaps you should reasses your goals, and make your goal, where your positive cashflow equals your expenses, as this means you can get out of the rat race, start looking at alot more deals, meet other investors, and spend time with your kids, etc.
Rgds.
Lucifer_auKay Henry.
Most people never achieve much at all in life because they were never taught that it was possible in the first place.
My philosophy is simple.
First set yourself an achievable goal.
Then ask yourself the question.
“How am I going to achieve this goal?”
Ok now that you have asked the question teh next thing that happens is your brain(acting like a computer)will start looking for an answer to the question.
Once you start getting answers then it is a matter of applying action
Once you apply the action it is only a matter of time and the goal is achieved.
For newcomers to this it is best to start with an achievable goal short term say within the week.
Each time you achieve a goal you become more confident with the process and you set yourself higher goals.
It only takes one small idea, a plan of action and anyone can become a millionaire.
There are so many people who have done it already so we know that it can be achieved.
Russ.So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
not only use re-value your home to use the equity in it but if you purchase a property in a rapidly capital growing area, you can later sell this for a reasonable capital gain – im talking maybe 20-50k above the price at which you bought it. You could then use this capital for re-investing into several other properties.
Kind Regards,
George.“If You never never ask, you’ll never never know”
I agree, you can (and should) definitely use the equity as it increases, but remember we are talking about 12 months! I guess I struggle to see how this much capital can be raised in such a short time unless you are well prepared for it.
The only way I can see that this kind of acquisition can take place is if you have significant equity in your own home or access to considerable cash to start with.
In other words, this initiative does not appear to be useful to the ‘average’ person looking at getting into the market – to be honest, I thought that was where it was targeted.
Is this a fair assessment of ‘the $1M property portfolio in 12 months’?
Jo
Win Lotto- Buy 2 x $500K IP’s CASH
HEY PRESTO Instant Property Millionaire, see… it can be done ! maybe in a day or a week.. anything can be done, with time, luck, good looks and money [biggrin]REDWING[suave]
[fear]*Rob a Bank*
[goatee] *start a Cult*
[headphone]*Become an Australian Idol*“Money is a currency, like electricity and it requires momentum to make it Effective”
good options – i like that
“If You never never ask, you’ll never never know”
1.5 million in one year – how – develop property!!
50 blocks at $30,000.00 + $50,000.00 dev costs + $5,000.00 holding costs = $85,000.00 wholesale then sell for $125,000.00 to waiting builders = $40,000.00 gross profit x 50 = $2,000,000.00 gross profit – tax = net profit all with no money down.
Thats why developers get rich, look at the names on the cranes of development sites and you work it out, I’ve asked before what is you STRATEGY because when the market changes (and it is now) the bricks will fall.
[email protected] [suave]
Its a slow process or a fairly quick one if you are lucky enough to take advantage of a boom like that which has just flattened out.
I have to agree with Kay though.
Many just dont have the “Balls” to invest like the gurus.Its a huge task for most to be indebted to an institution for 200K.
When that becomes 1mill or 5 mill its beyond most peoples comprehension.The secret is simple
get as much money from other people(Banks financial insto,s)for little or no cost and put it to work so you can reap the earnings from capital growth and or passive income.Once you have done this once just keep repeating the process.
There are only 3 areas I know of in which this can be done.Business
Property
Trading.
Enjoy the journey.John
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