All Topics / Help Needed! / Feeling Down

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of Dr.SpockDr.Spock
    Participant
    @dr-spock
    Join Date: 2004
    Post Count: 69

    Hi everyone,

    Someone please tell me how I can convince my husband that property is the way to go, I have just finished University for the
    year and started looking at Property again, and it ends up in a big fight. You see he has a business that I have been so supportive with, I helped him set it up, went through thick and thin with him, we even lost our house over the business, and now that the business is doing OK, I want to do some investing and because of University I have got a bad credit rating now.
    My idea was to have his business get the loan for me and he would go guarantor for me. As in wealth guardian, your business gets the loan and the director goes guarantor.

    Any advise would do

    You see my moto is never give up, but I think that maybe I should.

    down and out
    Dr. Spock

    Profile photo of TheBishTheBish
    Participant
    @thebish
    Join Date: 2007
    Post Count: 59

    Hi

    Yep, I bet your one of many in this situation so your right – don't give up.

    One suggestion would be to try and understand his underlying concerns about property and then try and suggest some solutions to those issues. His concerns may be based on a previous bad experience or family values.

    Perhaps you can start with a small purchase to start with to get the ball rolling.

    Good luck
    TheBish

    Profile photo of violetpvioletp
    Member
    @violetp
    Join Date: 2007
    Post Count: 3

    Hi
    I have seen other women in this situation, and it"s hard when you don't have your partners support. But that doesn't mean you should'nt get started. Get into the game by starting small. Once yu have some  success and viable results, your partner may turnaround and become your supporter.

    Unfortunately there is no quick fix or easy answer for getting a disintrested partner on board. The good news is women are doing it all over the world. Stay surrounded with people with similar goals and ambitions you have.

    violetp

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    The only way to convince your husband, seeing as he is a business man, is to present the idea to him as a business.

    This means putting together a business plan, and a presentation of the cashflows, expenses, income, projected profit/loss, cap gain etc.

    Things like depreciation and tax deductions should also be in this, as well as manangement fees and so on.

    Profile photo of propertypowerpropertypower
    Member
    @propertypower
    Join Date: 2006
    Post Count: 312

    As Tony Robbins says, we make decisions to avoide pain or gain pleasure. From what you are saying, he does not relate any pleasure with property investing. You need to find the pain he is associating with buying property and try and address those pain points. It may be he needs to be educated on property investment. Take him to some property education seminars (not the one's where they try to sell their products/properties). He might get interested if other people are talking about it and he can socialise with people who may have made it "big" with properties.
    Besides that, I agree with Marc. Present property investment as a business plan to him. Do comparisons with other investments like shares, business, etc.

    Profile photo of dmvdmv
    Member
    @dmv
    Join Date: 2004
    Post Count: 7

    Just curious as to why you have a bad credit rating? My husband also has a business that we have spent the last 10 years growing – he too had issues with buying investment properties. I managed to convince him to start small by presenting a professionally packaged (by me – computers have some uses ) outline of what I wanted to achieve, my timeframe, entry and exit stategies, worst and best case scenarios – with the emphasis on worst case for all figures. I then showed him that I was serious about investing as a business by constantly educating myself (reading, listening to CD's, attending educational seminars – not just about property but business management as well). I told him that I didn't expect him to put in extra hours (he works long enough anyway) shopping for the real estate or managing it. I presented it in a way that his business wasn't threatened. My guess is that having lost your own home to keep the business going he may feel that using his business to guarantee a "risky" investment is giving him horrible flashbacks to a time he'd rather forget. So my advice is take it slow, find something small, show that you are competent in running the investment business, let him adjust to the idea that RE isn't going to take his home or business and then expand…….. If you come in with all guns blazing and saying what a wonderful thing it is and how much money it will make etc without showing an understanding of the risks and how you plan to minimize/manage them then it is understandable that he will freak out – at least mine did .

    Good luck – don't give up and even if you can't buy something now keep researching, presenting business plans showing all considerations to him, and educating yourself (and him) – you will get there. I read in Napolean Hill's Think and Grow Rich that most people give up just when they are about to break through the seemingly insurmountable problems that stand in their way and fall short of the goal by such a small margin you wonder why they gave up (at least from the outside). Believe in yourself – if it's what you truly want and are passionate about you'll get there.

    DMV

    Profile photo of hschmidhschmid
    Participant
    @hschmid
    Join Date: 2007
    Post Count: 87

    Spock

    Maybe its too passive to turn him on!

    He might believe that the same $ could be more profitable in the business than in bricks and mortar.

    Consider a small development or subdivision with exciting profit opportunities.

    This might add the BUZZ to turn him around.

    Profile photo of millionsmillions
    Participant
    @millions
    Join Date: 2005
    Post Count: 355

    I've been there, it took me 3 years to convince my hubby to invest.  (the property I was interested in doubled in that time).  If he had of gone along with me we would be $1,000,000 better off today.  He knows that now and trusts my decisions.  I would book him into property education courses with yourself, make him attend home opens with you, visit a wealth education adviser and visit an acccountant to discuss your plans.  Also, make a note of what properties you're interested in, as they go up in value show him the results you can achieve.  He might be stuck in the attitude of, work your a off and be poor."  (like my hubby)  Now I find the deals, show it to my husband, and he says "yes".  At times he has put the brakes on and I'm grateful for that also.  If you can't convince him at this boom, you may learn heaps and benefit from the next one.  All the best, m

    Profile photo of ducksterduckster
    Participant
    @duckster
    Join Date: 2004
    Post Count: 1,674

    maybe hubby doesn't want to risk his business on your loan or risk your investment on his business . He might want to seperate his business from your property investments.
    If his business gets sued by a little old lady who tripped over a carpet in his business you could lose the investment portfolio if it is in the business name or if you are also a director.
    If you have a bad credit rating you could investigate a non conforming home loan and later down the track refinance to a conforming loan. It might be worth discussing with hubby and then talking to a mortgage broker to see if you can borrow money.
    Do an internet  search on Australian Non conforming Lenders
    http://www.google.com.au/search?q=australian+non+conforming+lenders
    to get an idea of your options

    Profile photo of v8ghiav8ghia
    Member
    @v8ghia
    Join Date: 2005
    Post Count: 871

    hi Dr. Spock,
    I think a lot of stuff has been covered her with the other posters, (other than the one with the development suggestion……you' just gotta wonder sometimes!)  True, it is critical to have your partners support whether it be in business or investment among other things.
    Just a thought though, you mention you 'lost your home for the business'.  Have you since then got a home of your own back or not? If not, why not approach it as a win win – perhaps suggest you keep renting, but want to use some of the business funds now (for deposit, not the actaul loan) to 'buy a home back' which will be your investment property, but meanwhile have some deductions from, in otherwords, be cheaper than lviing in your own home once you take everything else into account. Then , as things work out ok, you are in position to demonstrate growth or cashflow to your husband, which I will definately help for the next one, or actually your own home too if you desire.
    Purely a generalisation only, if you have a bad credit rating, the business has had a hard time, and you have lost your home, and then have a 'we have to buy a property wiht no money' gung ho type appraoch, which is what many 'seminar and so called motorvational speaker types' try and drum into you, you may coma accross as a bit of a zealot? As I said, as I don't know you, that was pure speculation, and of course you have to weight that up against the thought that 'nothing ventured nothing gained' and they obvious desire you have to do something to get ahead now. Just remember, if you do go the non conforming loan approach, you may be in for a rocky ride interest rates wise.  Have you thought of just using the time to accumulate a 'deposit fund' or kitty for yourself, and invest it somewhere for a year or two) and sit things out a bit?
    Anyway, all the best – keep up the research etc so you will be rready to pounce when you are able.  

    Profile photo of hschmidhschmid
    Participant
    @hschmid
    Join Date: 2007
    Post Count: 87
    v8ghia wrote:
    hi Dr. Spock,
    I think a lot of stuff has been covered her with the other posters, (other than the one with the development suggestion……you' just gotta wonder sometimes!) 

    Wonder about what!

    I made that suggestion.

    You think developing property is a stupid idea?

    There is more to property than just buying and sitting for 20 years.

    Or, as per your suggestion put together a kitty fund. Yep 10 years from now @  $100 p/w I'll have my deposit. Woohoo!

    A lot of people just do not find this interesting or exciting.

    Ever consider ed that might be Spocks problem.

    Profile photo of v8ghiav8ghia
    Member
    @v8ghia
    Join Date: 2005
    Post Count: 871
    hschmid wrote:
    1.Wonder about what!

    2.You think developing property is a stupid idea?

    3.There is more to property than just buying and sitting for 20 years.

    4.Or, as per your suggestion put together a kitty fund. Yep 10 years from now @  $100 p/w I'll have my deposit. Woohoo!

    5.A lot of people just do not find this interesting or exciting.

    6.Ever consider ed that might be Spocks problem.

    Please excuse me dr. spock and others – but do feel the need to reply to the last post……..

    1. …..wonder if people actually read the post, other comments, and try and get the gist of what is being said rather than pushing their own barrow or thing all the time. It is nice to be able to vary and personalise your comments to each post a little, rather than 'develop develop develop' or 'use a buyers agent use a buyers agent use a buyers agent' or whatever the barrow is being pushed (in theis case, developing/co developing.

    2.  Absolutely not. I have enjoyed listening to some developers speak such as Peter Comben and Carly Crutchfield, and certainly plan on doing so with Micahel Yardney when I am able – who I have the utmost respect for. Developing is a great idea, but do you really think that would be the first project 'the spock family' should tackle, in light of the comments and circumstances???

    3. Absolutely, buy and hold is only one stategy. 

    4. This is the comment you made that really shows flagrant ignorance – and why I bothered replying.
    While I am not suggesting spock fits this criteria, I have lost track of how many people I have spoken with that perhaps have their own business, had it for less than 2 years, (or perhaps just spend any surplus profits on non appreciating things/entertainment etc) and have no deposit, and yet are desperate to get into debt and make repayments higher than what they apperar to have been ever able to save……SERIOUSLY, if someone (anyone) is not in a position to purchase something NOW, but would like to as sonn as they are able, I stand by my comments of doing all you can to SAVE MONEY meanwhile as they can, via savings, selling something, or using a sensible budget…..yes a 'kitty' for their new property purchase. It's called a deposit. A great goal to have.  Beats getting dissalusioned and blowing it on rubbish instead and finding yourslef in the same position in 2 years time surely?…….A 5% deposit is certainly an attainable goal in a year or two for someone if there income/business is reasonable. 

    5. It seemed a lack of excitement did not appear to be the issue, especially if a CF positive or CF neutral property causes consternation.

    6. No.

    Phew.  

    Profile photo of hschmidhschmid
    Participant
    @hschmid
    Join Date: 2007
    Post Count: 87

    I agree. Phew!

    Watch your blood pressure.

    Profile photo of Dr.SpockDr.Spock
    Participant
    @dr-spock
    Join Date: 2004
    Post Count: 69

    Hi everyone,

    Thanks for the reply;s

    I got a bad credit rating because the business needed money, got a credit card, and instead of paying of the credit card, when I started University I paid down a personal loan I had.  Get this January 2007 amount owing 12,000.00 now November 2007 3,500.00 and I have also paid off a family loan of 4,500.00 and we do have a very small savings. Now looking at it I did it the wrong way around but we are paying of our debt and we will get there. Have spoken to hubby again and he has agree to look at property but he justs wants to take it slow and just wants to wait until my coarse has finished, he also said that he wanted me to keep doing all the research I'm doing, (so that looks positive).  I think that  what you said dmv is right about  maybe having flashbacks,  as now his business is about take off again. When we lost our house the business lost a big contract that took us and our house with it.  So the outcome at the moment looks like finish my course, allow his business to take off again, keep doing research,

    once again thanks for replys

    Profile photo of fWordfWord
    Participant
    @fword
    Join Date: 2009
    Post Count: 471
    hschmid wrote:

    He might believe that the same $ could be more profitable in the business than in bricks and mortar.

    Good point. To have a better chance at convincing him that property may be the way forward, you will probably have to study his business, the profitability, all the figures, the risks and potentials. Then this needs to be compared to the types of property venture you're considering. I'm not saying that there's a right or wrong, but if his business is extremely profitable and can benefit from a small outlay that you would otherwise put into property, then why not consider investing in his business instead?

    Do you already own or control your own house? Or would you guys be renting at this point in time? If the latter, then consider letting the business generate some profits for use to purchase your own house. It would be less challenging to convince someone to buy their own house than to buy investment property.

    duckster wrote:
    maybe hubby doesn't want to risk his business on your loan or risk your investment on his business . He might want to seperate his business from your property investments.
    If his business gets sued by a little old lady who tripped over a carpet in his business you could lose the investment portfolio if it is in the business name or if you are also a director.

    Another excellent point. Considering that you lost your house previously to support the business, perhaps you could find an accountant who is well-versed with property investment who can then advise on the use of trust structures etc so that you can reduce the risks of losing everything should either one of you get sued or the bank forecloses on your properties.

    It looks like you have had some success with your husband when it comes to talking about property. However there is no way to force somebody to buy in if they're really not comfortable. Money is important but a good relationship with your other half is even more valuable. I'm afraid to say this, but both parties in a relationship would probably need to understand that there is no 'you' or 'I' anymore. It becomes a 'we', and compromises may be required by both sides to ensure a better future for both.

Viewing 15 posts - 1 through 15 (of 15 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.