Answers to “Where to Find CF+ Deals”

ok lol cheers freckle

Sticky: Answers to "Where to Find CF+ Deals". Answers to "Where to Find CF+ Deals" Comments: 479. Hi everyone, I, like most other forumites who have visited …

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I don't agree. There are mining towns with more than one industry, like Karratha, where you have LNG, Fertilisers, Dampier salt, Iron ore and all the support services for the Oil srigs around. So if all these industries collapse, doesn't really matter where you are because all Australia goes down. Karrtha also has all the government offices for the Pilbara.

You don't get much appreciation in Karratha, but the return is more than 10%.

Port Hedland or Newman are very different, you only have Iron Ore, so some mining towns are not a bad investment; in my opinion.

Hi guys, Anyone have a Spread sheet for crunching the numbers. I have been out of the game for a few years and getting back.

Hoping someone would be able to share their spread sheets with the Maths.

Im looking at Townsville and Brisbane. In my opinion, Brisbane better growth, Townsville better Cashflow & at a lower buy in, manufactured growth should be easier.

The beautiful thing about real estate investing is that there are so many different paths that can be pursued succcessfully…….the key is finding a niche that works for you and sticking with it.  Reading through this thread, you can pick up on strategies that works in 2006 that wouldn't work in today's markets.  Over the years, many of us were able to buy negatively geared properties that continued to appreciate in value in a hot market, ultimately providing a positive return.  Today, I view appreciation as simply a bonus….don't count on it and if the property doesn't cashflow, I'm simply moving on to something else.  Finding the thorn on a rosebush, is and has always been the best way to buy real estate.  It still is.  Find a property where value and rents and can be enhanced with simple improvements like updating, adding new countertops, light fixtures, designer paints or converting space to an additional bedroom….my all time favorite as with my shared housing program, it's all about rents and cashflow.

We recently took over an Aussie's investment property in Atlanta.  He paid $140k for it 4 years ago and saw about a 3% return on it over that period.  He rented it out through a manager and ended up with 3 awful renters over that period.  Each renter either ended up breaking their lease, getting evicted or causing significant damages.  In the states, we don't have a tenant bonding program like you do.  After accounting for vacancy costs & repairs costs, his true return was less than 2%.  In frustration, he brought the property to us to repair with a plan to just dump out of it and recoup his capital.  We suggested he try a shared housing concept using our MyRENTEDroom program.  He agreed to give us 90 days to turn the property around.  His net rent, not accounting for vacancy & tenant damages, was about $500 a month….when it was rented!  We finished off an area in the basement, turning the house from a 3bed/2ba into a 4bed/2ba.  Over the next 60 days, we rented each of these rooms on a 6-month lease at $650 for the master, $550 for corner bedroom, $500 for smaller bedroom & $600 for the formerly unused space in the basement.  The net rent, after utilities and expenses, has grown to $1,500 a month.  With a 10% cap rate, which is our expected return, rented the old way, his $140k property was worth about $60k ($500 x 12 /.10) but grows to $180k with our program ($1500 x 12 / .10)  I understand that shared housing might not be allowed in your market….check into it an see…..but it works here in the US and the results speak for themselves.  He went from a gross 4% return on investment to a net 12% return using a shared housing model.  Here's a marketing video we used for one of the rooms:  http://youtu.be/CG0C6RzRuW0

He will now sell this property to an investor seeking passive income for around $170k to free up capital which he will reinvest with us to buy foreclosed houses around metro Atlanta.  We will then make repairs and rent them as shared housing before selling the off to passive investors.  You can create a similar model in your part of the world if you wish.  He will create a 10% return plus half the profits on the sale to create an expected 15% to 30% return over 6 to 12 months.  Remember, these results are achieved for us using our shared housing model.  The passive investors can be financed up to 50% and they are guaranteed a 10% net return for 18 months which creates a steady line of back-end buyers for us.  

Look to be diversified in your real estate investing activities.  The returns to be had in shared housing make it worth a look.  I'd look for investment partners & models where the marketers are actually involved in the model….not just collecting fees on sales.  Our model is successful because I really don't make much money until my group sells the renovated & rented property.  Look for models where you are secured either on title or as a lienholder otherwise, you are at the mercy of your investment partner.  I'd also be very cautious with the mining town deals…..if the oil, gold or gas goes bust….where are you?  Who will buy it from you and at what price?  Fun stuff……happy investing!

We currently have a similar rush on oil towns in the Dakotas in the US.  Without the oil, there's nothing there and there's a rush of builders throwing up hotel/condo deals.  It's like the college towns….even if the mine or oil/gas project is successful, every 5 years or so, they'll build something newer and the rents for you unit will decline with age.  It's one of those niches where the real money is made by the promoters and not by the ultimate owners.  I agree with mattsa…..take a good look at the surrounding area before you invest and make sure there are other things about the local area & economy that make it a viable option if the mine goes bust.  Happy Investing!

Hyson Green offers higher rental yields than other locations in the UK, according to a new survey.
The best rental level in the country is in Hyson Green Nottingham where average yields this year are 10.9%, up 1.13% year on year , according to a poll.
The UK average of 6.4% for other buy-to-let properties.
With house prices falling, now is a great time for cash rich investors to snap up a deal. However, investors should look at Hyson Green as a long-term investment based on high rental returns rather than capital growth.

Investors may think that they are buying into a weak market, but as research shows rental yields are on the increase and buy-to-let investors have a great opportunity to capitalise on the increasing demand for accommodation, whilst taking advantage of lower house prices,

Hyson Green house prices will increase by 40% by 2018 as predicted by latest national data

Hyson Green is an area of Nottingham, England. It is the second most popular shopping area after the city centre and is now home to a variety of cultures with a thriving local economy. Hyson Green has the largest ethnic minority population in the city with many multicultural shops and supermarkets offering foods from West Africa and Southern Africa, Arabia, Eastern Europe, Iran, India, Pakistan and Russia. Since 2006 Hyson Green has seen a larger rise in development and direct international investment than any other area of Nottingham. According to new research Hyson Green has the fastest GDP growth in Nottingham

market capitalisation with high yield potential at low entry point

Guest wrote:

Hi, After hours of writing a complain to ASIC I figured I should come on here and also share my story. I’ve been a repeat client of binvested since late 2012. I initially paid $7700 but my last few were $9900 per deal. As you all know their strategy is to buy under market value, reval and buy the next one. Which is how I assume most of his clients reach 10 properties in one year. I bought my first investment in cairns late 2012, early 2013 Nathan Birch approached me with a new property, having not saved enough deposit he referred me to his bank manager at westpac. I got a reval done, it came back at $200k which was $90k over the purchase price. I pulled that equity out and bought the next one/paid nathan his fee. The process went on and on.. Recently I was approached by a former client of Nathan’s who tells me his bank manager at westpac has the authority to approve a reval if a property in the surrounding streets has sold for the same amount. So my older 2 bedroom unit, got reval’d at the same price of a modern 2 bedroom unit. I found this a little difficult to believe. However better being safe than sorry. I went to CBA and ordered a reval on my initial purchase, it came back at only $145k rather than the $200k it came back at in early 2013. I followed by the rest of my investments and it was pretty much the same story. Not sure what to do from here, I have reported to ASIC, the other guy has too. Sitting here with more debt than assets and losing sleep. Has any other client of Daniel and Nathan had this issue.. What did you do? Also, I checked my buyers agency agreements and it mentions that they get commissions on every loan they send over to Westpac. [/quote

Sorry to hear about your situation. Are you cash flow positive though? What’s your portfolios LVR with the CBA valuations? You should probably report the Westpac guy as well.

I have found Ryan at Onproperty pretty handy. provides good education on how to find your own CF+ properties.

http://onproperty.com.au/free

Hi u36ma,
This didn’t happen to me I think I quoted someones post and they deleted it, my response started from the sorry to hear bit