Hi all
I am currently working 4 days out of 5 as a Software Engineer. I have managed to negotiate 1 day off a week from my employer which I use to spend more time with my family at home and find good property deals.
I have several properties, but my latest is a block of land in Casino Nothern NSW. I would really like to build a 4 Bedroom, 2 Bathroom house on it and then sell it at the end to make about $30,000 profit. But the problem #1 is that I have another bigger deal that I want to chase, which could net me a lot more, but I will not be able to finance both deals myself.
My bigger problem #2, as I see it, is that my end goal is to be able to find and put together property deals full time and give up my current employement, but I can see that I will be limited by finance.
Can anyone please provide some suggestions from experience of how you converted from full time employement to full time investing and still have the ability to finance deals???
Regards
Simon
[confused2]You should probably keep working full time as long as possible. Cutting back work is good for finding deals, but bad if it reduces your income for serviceability.
Also get an ABN now. Once you have been self empoyed for 2 yrs or more, you will qualify for cheap low doc loans.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
Click below to email meTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Simon,
If your goal is to work less and/or work at home you might want to consider internet affiliate marketing to suplement your rental income. It’s a great way to earn money if you are internet savy (being a software engineer will probably help). I know some people making a lot money from google adwords.
My online investing diary: http://retireyoungandwealthy.blogspot.com/
Thanks for your advice guys.
Terry – Thanks! I have actually got an ABN have had it for 2 years so that is good.
It is still a bit of catch 22 though, as I figure for about a $300,000 loan at 7.5% interest I would still need about $70k p/a right? So that means I need to do some more deals….therefore need more finance…
Any thoughts?
TokyoJoe – Good suggestion too! I will take a look at your link!
Hey There,
You could try asking if the vendor will fund the short fall that the bank will not fund. This way you could get the property and perhaps assign a builder that could parttake in a share of the profits if he agrees to not charge for building untill the house is onsold.
Just a couple of ideas,
Cheers,
KiwiLooking for Positive cashflow solutions?
Look no further
Wraps-Lease Options & JV’s
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We are investing in NZ so if you are looking for + cashflow properties…contact: [email protected] to join our database.Thanks Kiwi
I like the idea of making a deal with a builder!
Also, if anyone wants to join me in doing a joint venture on any of my current deals, please let me know. Any builders out there?
Regards
SimonRegards
SimonHi Simon,
All of the people I know who have created their wealth fairly fast and then retired (i.e. fast tracked) have done so with cashflow positive properties. This is not to say that negatively geared ones don’t make you money or that your own home won’t be worth a fortune in 20 years time while you work your job to pay it down.
But anything negatively geared I believe slows you down and keeps you working, so it is the opposite effect of becoming financially free fast. And that was your question.
OK negatively geared properties may become positive over time and go up in value, and they can be great for speculating, hey, even I have one and I’m the cashflow queen. but so do the positively geared ones go up in value, much to the vociferous denials of the CF+ve detractors of this world.
Most investors start with single residential and then move into commercial properties but I reckon if you want to fast track your wealth and you have the bucks, go straight to level two, buy a positive cashflow block of units with an upside to improve the rent in a place with very low vacancy and a stable or increasing population.
By the way if you have a 2m portfolio returning ten percent or more with half of that going in holding costs (depending on your LVR) you should be able to live on that and continue to invest too.
cheers-
MiniHi ,thought I would add my two cents worth,
depending on when you bought in casino,
Did you pay in the price range of $85000?If so to build a 24/25 sq house it would cost about $160000…thats a total of $245000 not counting drivway,grass,plants,…rounding to $250000….selling in the price range of $300.000
$50.000 profit….50/50 share with the builder aftercosts..$25000
Land in casino Gays Hill is worth $120000
or north casino around $89000if the land is in gays hill selling it would net you $35000 or there abouts with out building.
[buz2]Ezy does it.If you want to bounce some ideas around email me…
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