Hi All,
Some 12 months ago I think it was “Today Tonight” that featured Steve McKnight assisting a number of people purchase properties worth about $1M.I am wandering have they been able to emulate these strategies?
I would be curious to know what they have achieved now, have they been able to continue successfully without Steve? Did this exercise really work?
Does anyone know [biggrin]
Perhaps someone knows……I reckon they would have had a better chance if the program was started a year or two earlier
Not sure what the outcome was.. I’d be interested to know also.I think I remember hearing of some conflict regarding the term “Property Millionaire”. I think it was advertised and understood by the bulk of the population to having 1 Million in Equity after 12 months, Steve’s intention was for the people to be managing 1 Million worth of property.
Don’t take that as gospel though, it could be way off base. But I too would like to hear exactly how the apprentices have done.
From memory, if you did a search on “MAP Group” it will give you updates from either Steve or… and it wll give you a running comentary on how well they performed. I think that there was issues with the commitment of some of the entrants, as in some left due to diselusionment or personal reasons, not sure.
It would be good to invite Steve to give an analysis on the whole story. Success rate (not to discourage us, but to tell it how it is!), reasons for people departing, etc. Startegies are related to peoples personalities and I have recognised that I am not as ‘agressive’ in my behaviour and couldn’t repeat what Stevew has done AT THIS STAGE. We all change with time. Finding that motivation is the key.
Steve?….Cheers
C@34
Hi all,
MAP UPDATE………
The MAP program is still continuing, and it is going extremely well for all involved. Everyone is still extremely motivated and continuing to take action. The Mappers are all finding amazing deals, or turning average deals in amazing deals.
Many have reached the $1mil of property or just about to, some are way over that mark, and heading for 2mil.
A few decided that when it all come down to it, that they didn’t really have the ambition of owning that much property, some had other personal reasons or business committments, like to move overseas with loved ones, all very genuine reasons to quit the program.
The program ends in August……
Stay tuned !!! [biggrin]
Del
Del :o)
It would also depend upon one’s income, yes? I mean, if a person was a very low income earner, it is pretty hard to accumulate property at a great rate. I think there are so many factors affecting how well we can do in RE. I reckon income has to be a “fundamental” as to how wealthy we can become. Your thoughts on this, Del? Others? Let’s look at (for the sake of consistency) an income earner of, say, 20k. That’s gotta be difficult to buy at the same rate as someone on 100k.
kay henry
Hi Kay,
I am cooking tea, so I’ll make this a quickie…
When you are buying truly “CASHFLOW POSITIVE” property, each time you buy more, it actually increases your annual income.
The banks have had no problem with us, (so far)..
Del [biggrin]
thanks for replies everyone. I personally hope they all go on to make $2M +++.
Will do a Map group search to find out more info.Del, buying positively geared props increases income, however, from what I have read the banks only take XX% of the rental income into account.
[strum]
Thanks Marisa,
That’s correct about the rental income…
That is why it is a good idea, not to go and quit your “day job” too soon. You need to rely on that to allow you to get finance approved.
Del
I am wondering, is there a certain established ‘rule’ lenders use to decide whether or not someone has become too ‘rent reliant’ to be able to borrow more?
For instance, do they use a formula, e.g. rental income should be no more than, say 40% of your total income?
And when your rental income passes that treshold, (say that your rental income is now 60% of your total income, and only 40% is earned from your job) is the rent above that 40% treshold not taken into account anymore?I just wonder what lenders actually mean when they say that someone is too rent reliant and therefore not able to extend borrowing. What is the factor that decides this; how do they work it out?
Celivia
Hi guys
i found a few years ago the bank (CBA) wouldn’t lend to me anymore, so i loked around and Homepath which is owned by the CBA used a different formular and every property i bought actaully improved my serviceability, I think that is what Del was getting at. If you buy right you gon’t have to stop at 1 property.
Mr Mortgage Advisor i like your new identity. Which banks do you feel favour investors better, or should i say look at investor better? (hope you know what i mean)
regards westan
Kaye – ” I mean, if a person was a very low income earner, it is pretty hard to accumulate property at a great rate.”
two people I know –
income 10K owns 3 properties
income 30K to start with now has over 30 propertiesumm, I don’t know the incomes of some of the other people I know with 14, 25 properties etc but they have day jobs of the ‘good’ variety but still what I would call normal people
buying 15 properties in a year doesn’t come down to how much income you have, which is a hard thing for people to get their heads around that believe the opposite.
The best way I think this concept can be explained that I’ve come across is by playing Kiyosaki’s game ‘cashflow’. You will notice that the janitor (lowest income player) often wins the game over the doctor, airline pilot etc
if you play this game and ‘get it’ then you’ll also be able to ‘get’ how people can buy +ve CF properties and keep on going.for a lot of bigger investors I know with around say 30 properties, lo docs finance has come into it.
don’t have be scared of an extra percent or two if you are getting the yields.
joy to the world
Hi,
Sorry, I’ve been very busy writing book #2, which includes a detailed look into the MAP process… much, much more than I could write here.
Yes, it seems that those outside of the program may have been unsure about the goal – but it always was to control $1m worth of r/e in 12 months. The idea was not so much to gain equity, but rather a source of income from the property.
A quick snap shot though – 21 people started. 8 have left for a mixture of personal and other reasons (such as personality conflicts, thinking the program was something else than it really was, etc.)
Of those remaining I expect that 11 of the 13 will surpass the goal – currently 9 of the 13 have.
A quick financial snapshot of the result (from memory)…
$11m of property acquired.
$3m of equity / profit made
$770k of gross incomeComparing the income figure to property acquired is a little misleading as some participants wanted equity above cashflow which thrown the numbers out.
I’ll provide more info once the program ends.
And no… I don’t plan to run it again at this stage.
Bye,
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
Wow Steve, I like those income figures[biggrin]
Mini, the thing that Cashflow 101 has taught me is that you don’t necessarily need the income to qualify for the loans, but you do need to stump up the cash for the deposit! This is generally done by buying one or two props and selling for capital gains, or by buying and selling shares for capital gains. From memory, there’s 2 props that are available on a 0 deposit (one makes money, the other doesn’t, but is good for the cap gains), and a couple that can be bought with a bank loan and still make money.
The rest of them all require a deposit – sometimes quite a decent deposit too. If you don’t have the deposit – or the means to borrow it, you are quite limited….
Cheers
Mel
Not sure what the outcome was.. I’d be interested to know also.
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