Hi All
Allow me to introduce myself – I am DanielMan.
I was wondering if you could help answering some inquiries for me. But before we get into that, I will give you some background about myself.
I live in Sydney Australia and I am 22 years old.
I have been working as a kitchenhand for a number of years, while I completed my studies. Currently, I am unemployed as I want to concentrate full-time on job-hunting
The idea of investing in property really started about 2 or so years ago.
At the beginning, I started to read many of the ‘Rich Daddy/Poor Daddy’ book series by Robert Kiyosaki. I thought they were good to start getting into the ‘Making money bedsides working’ mentality but I was always a bit skeptical as his advice was more tailored to the America system of doing things, and I was not too sure how well his strategies could work over here. Soon after I discovered Steve McKnight and thought that I finally found someone that gave sound advice, within the context of the same country that I was living in, and it was written in a way that was easy to understand.
So far, I have read the first two of his books and currently I am half-way through the third.
Okay then, now I am hoping if you guys could help me out by answering a few questions:
1. No matter how many times I read Steve’s books, I still cannot get my head around the idea of constantly buying property after property with the bank saying always granting the loan. I can imagine the bank saying ‘yes’ to some of them, but saying yes to the amount Steve bought in one hit? How does that work?
2. As I said earlier I worked as a kitchenhand, so that means that I was paid peanuts. One of my strengths though is that I am generally a very good saver so I have some stored away and currently, now that I am unemployed, I am not panicking for money…yet. Hopefully, I can find a decent paying office job soon. Once I do, how can I go about going to the bank and asking them for money without being laughed out the door, since I have don’t really have any history with taking up loans and never did anything like this before?
3. I am interested working within Real Estate and I was hoping if anyone here would be hiring at the moment. I have Certificate II in Business and a Certificate III in Legal. They are both general administration courses and I am considering in doing a Certificate of Registration. Please contact me if you are interested.
That’s all from me. I look forward in hearing your replies.
Thank you
Hi Daniel,
Wow, I can't believe you're only 22 years old, boy at that age I spent every last cent on clothes and night clubs….Yes those were the days!! I certainly wasted a lot of $$$$ in those days but had fun doing it.
Anyway back to your question. The reason Steve could buy multiple properties back in those days was becauase they were cash flow positive (CF+) meaning the rent paid all the expenses including the loan, so getting a loan was much easier. Secondly he also purchased the properties through a Family Trust, so it was the trust borrowing the money and not Steve himself. He'd of course go guarantor for the loans and when the bank thought he was at the limit he'd repeat the system again with a new Family Trust. Times have changed and buying multiple properties so quickly is not as easy, but also not impossible. So I'd suggest you establish a good savings record and have a chat to one of the many Finance Brokers here on the forum (eg. Qlds007)
Best wishes and keep reading!
As long as you can keep coming up with the deposits you can keep purchasing property. Even without an income.
But it does help if you are on a high income and your properties are growing rapidly.
Terryw | 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
Call a mortgage broker now (I mean, don''t wait till you have a job) and ask them a series of questions. A lot of lenders are willing to lend if you have been in a secure job for a little while. This may give you an idea of how long before you can get a loan.
Talking to different people is a great way to learn things, even if its just other peoples opinion. It gives you more things to think about, and sometimes gives you more questions to ask.
And Steve didn't buy 260 properties in one hit. He bought them one at a time and he had a strategy to help him. (eg. Positive CF, Family trust, etc…) Maybe begin to think about some strategies that may work for you, or think about the direction that you want to take first.
Kelly
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