hi all,
i started property investing when i was 18 now 26, i love real estate. since investing i find the hardest thing in growing the portfolio is finding extra monies for rates, purchases of more property etc any ideas hints? i like the buy and hold strategy. all ideas appreciated, hope everyone is enjoying what they do.
Cheers Corza
add value and redraw or sell. thats basically it for getting the extra money for new properties i think. unless you work and can save.
Hi Corza,
would you mind sharing with us how your investing is going? what does your portfolio look like currently after 8 years?
Cheers budBen
thanks guys,
yeah Ben, we currently have 2 IP one is neg geared the other positive geared and our primary residence has some equity. the trouble i find now is trying not to cap our selves out of the market. how about your self?
Cheers
Corza
thats great mate, congratulations, i always like hearing success stories from people in my age bracket, very motivating!
Im 23, just purchasing my first buy and hold now, positive geared with a govt lease which is great, and the place is a blank canvas so i hope to add some good value, exciting times. I bought and sold 2 places in nz when i was 19 with a mate of mine, made healthy profit but spent it travelling and buying cars, amongst other things teenagers do, so i learnt my lesson in how money comes and goes, plan now is to be a grown up about it and hold on to my money so it grows big and strong hehe
well done again
Ben
Hi Corza
We've found using both both positive and negative cash flow properties has helped us to accelerate our portfolio building.
Our +cf properties are properties we buy and on-sell with vendor finance and our -cf properties are the properties we plan to hold forever
Our +cf properties maintain our lifestyle and support the -cf on our long term buy and holds.We've bought and sold lots of our +cf properties but not sold any of our buy and holds. They're our long term wealth. The +cf properties, for us, are just a cash flow business, just like any other business you might own.
Using vendor finance to help our portfolio building works for us and we certainly enjoy being able to fix the cash flow and capital gain on some of our properties.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Paul,
The vendor finance technique is very attractive for the reason you are using it. As a method to develop your servicability.
How time consuming is vendor financing? Are we realistically looking at running a full time business?
PJ
thanks guys,
cheers Ben, you have done well yourself i haven't gone through the excitement of selling as yet, but iam sure its unreal, how do you support your habit of buying property? ha ha do you do anything out of ordinary apart from save and spend less? Paul, thanks for your insights. do you find in difficult come rates time having -cf property?
Corza
Hi Corza
We started our Vendor Finance business on a part time basis and as it grew Karen, my wife, moved into it full time, followed by me later. Of course we could have stayed part time if we'd wanted but it had been our dream to have our own business for many years and, after many false starts in other business enterprises, we obviously got our heads right for this business and took all the action that was necessary. Although we have seen people go full time more quickly than us
I'm not quite sure what you mean by "come rates time" but, if you mean council and water rates, the vendor finance buyers pay all the rates. If you mean how do we handle paying the negative cash flow each month on our -cf properties, our +cf properties pays all that, along with paying for our lifestyle.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Paul / Karen,
On average, how many vendor financed properties do your aquire to service one buy and hold?
PJ
Corza wrote:thanks guys,do you do anything out of ordinary apart from save and spend less?
CorzaSaving for me has been difficult as of late, hence the reason i havent been able to purchase a property since i was 18/19.
Because i see time in the market as the key, rather than saving and saving i have been looking at other opportuinities to get back on the ladder. I am currently pursuing a jv for a +cf property, and my in laws to be are looking at gifting a deposit by way of LOC on their freehold home. my partner and i will of course make the repayments for them, and i would like to think, give them a little extra on the back end for their help. with some work, i think i will be able to enter the market on my own again and be independently operating without JV's or a LOC to pay back in about 18 months. and obviously, i think holding down a good job is very important in the early stages.
fingers crossed
thanks paul and ben,
ben: good luck, keep working hard and it will happen for you, the bank loves it when your in a full time position.
thanks again
Corza
Our +cf properties maintain our lifestyle and support the -cf on our long term buy and holds.
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