Hi there,
I recently bought the masterclass homestudy pack which has been really a really great start for no-properties-at-all investor.
In the pack – Steve talks about the 3 sections of a property deal:
1. The Property Deal itself
2. The Finance
3. The DepositI was pondering, since he said he set up for a Company to be a trustee of a trusts – this allowed him to continually borrow funds for another property (by setting up a new trust) – did he setup 350 trusts then? Or what did he do?
Also – how does he ever say how he continually came up with the deposits for the properties? since i'm guessing that the time frame of 3.5 years – he didn't really wait 1 year to save up for it… Does anyone know?
Many thanks
To partially answer your questions, Steve saved deposits by having his (although limited from what I have read) and his partners income – as accountants – to purely be used on investment. He and his partner – David Bradley – lived from the wages their wives brought in. So if you think about it, unless you go into business with someone, you would not expect this type of return, although I'm sure it is possible.
And remembering that all his properties were +ve, therefore the more he purchased, the easier the deposits became, because there was more money coming in the door.
On the trusts issue, I can't help??Thanks JL – really appreciate your comments.
I'm still pondering though – even if Steve bought 10 properties at (on average) $80,000 thats $160k before 5% closing cost. That's alot of $$ saved up.
Also at that time there was some quick capital growth as well as the relatively low purchase prices.
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
I agree, but didn't he have about $40,000 already. And once he had bought the first IP, he was then making not only income from the business, but also from the first property and so on and so on. I think most of his first few homes were around the $40,000 mark weren't they.
JLSeminars… his presentations gave him some money for deposits, I attended his very first seminar here in Sydney @ Parramatta, back in 2001 (I think). Easily 100 people in the room, $95 per head, take costs out = a deposit for another property. He still does it today, the man sure knows how to add/exchange value. Awesome stuff.
Happy Investing
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