gbrisbinParticipant@gbrisbinJoin Date: 2004Post Count: 2
I just wanted to say "Thanks" to Steve McKnight for the massive effort he put in on the webinar on the US Passive Income Fund on Thurs, 23 Aug. It was great information, passionately presented and a real-eye opener. Many thanks to Uncle Zally as well – you really feel like you are learning from the oracle when he speaks about property deals in the US.
Steve, terrific stamina to get through all the questions – it showed real commitment. The whole Q&A session was a huge benefit for me – it was like crowd-sourcing my due diligence on the investment!! And yes, I read the PDS beforehand
Thanks again, job well done.
GeorgeinsanoParticipant@insanoJoin Date: 2009Post Count: 34
cheques for $100k plus!!! if only i had that sort of capital to invest, hopefuly get to that stage someday, goals have been set.
As for the fund it sounds great and i’m going to use my super to invest… had a look at my super statements and what a joke!!!
Agreed Steve did a great job!kong71286Participant@kong71286Join Date: 2009Post Count: 261
Worked a night shift last night so didn't have the opportunity to watch the webminar
Hopefully they will email me a copy of the session
Just like you insanowayno, I'd love to have +$100,000 to invest in Steve's USA Property Fund, but I guess I'll just have to make do with what I have now
Right now, I'm thinking that Salary Sacrificing into super might be an effective means of lowering tax from 30% down to 15%, and investing more Capital into Steve's Fund.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539Dabear1950Member@dabear1950Join Date: 2012Post Count: 3
I believe the Tiers are 10K, 50K, 100K. To all of you who are looking at your super statements and wondering how you are going to take advantage of this opportunity you would need to set up your own SMSF. This is possible for everyone to do but more financially viable for anyone who has more than 100K in their super account. I set mine up 4 months ago and Im just so disappointed I didn't do it when I retired 2 years ago . It will take around 5-6 weeks to do and another word of advice. Get an accountant to do it.insanoParticipant@insanoJoin Date: 2009Post Count: 34Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539KimberlyMember@kimberlyJoin Date: 2010Post Count: 44
Yes, I thought that the minimum was $10k too. I just sent through some $$$$$ into the Passive Fund and I can certainly tell you that it wasn't $100k!!! So let's see if the cheque gets sent back to us or not!kong71286Participant@kong71286Join Date: 2009Post Count: 261
Just finished watching the US Passive Income Fund Webinar, and I was amazed at how much cheaper US commercial properties are compared to Australian Properties, and the return Uncle Zelly was able to generate simply by solving vacancy problems. The fact that this fund will be managed by experts such as Uncle Zelly and that Steve will invest $500,000 of his own money into the fund is quite reassuring. I totally agree with the statement about Steve being one of the best property investors in the world, and having 'integrity'.
I don't know about everyone else, but I'm convinced about this being one of the greatest investment opportunities of a lifetime. I will personally commit all of the funds I currently have in my superannuation, and also salary sacrifice up to $25,000 p.a.over the next 2-5 years to invest into Steve's USA Property Fund. In terms of liquidity I don't really care, since I won't be able to withdraw money from the fund for another +40 years and believe Steve and his team will generate better returns than most other superannuation funds.
Some of you guys need to back the horse up, take a deep breath and go for a walk around the block. The kinds of comments here do not jive with intelligent investing.
If you had invested in the States 5 years ago you would have done your doe. FX movements would have wiped out your gains and you may even be looking at an over all loss. It has come off a bottom of 0.60 to around 1.05. There are good reasons for that dramatic shift and anyone who thinks it will revert to the mean sometime soon should really get to know and understand what is driving currency values now and likely to drive them in the future. There is a very real chance that the AU$ will go higher yet and that any investor who thinks that FX exposure to the downside is a sure bet should think again
You need to sit down with a pencil and calc and start crunching some real numbers including modeling some what-if scenarios.
Steve's example of a $12k house plus $12k reno does not mention the FX movement against that investment and where it stands today. DO YOUR OWN SUMS!!!!
You also need to talk to impartial advisors to get a balanced view of this investment. Stu Silvers examples where not property investments. They were business buy outs. BIG difference.
There is nothing wrong with the investment model, vehicles or over all strategy. However I get the distinct impression many are simply ignoring the risk elements and have not thought through how this investment dovetails into their overall investment strategy.
The economic risks and FX risks are real and substantial. Given all the costs and fees that funds like this attract the real net return to an investor will most likely run in the 5% – 7% region. Your initial fee and FX currency Tx fees will take 2 – 4% off the first year. In the first year it's unlikely the fund will make any return at all. It's establishment costs will take time to remediate. I would not expect a fund like this to start to perform for at least three years and that's assuming the US economy and FX rates do not move against you.
Texas, Florida and Georgia all have substantial economic risk. These risks are easily assessed by looking at their individual state analysis. All are considered to be fragile economies struggling with current economic difficulties. Their frailty makes them vulnerable to external shocks and investors need to understand this to get a better picture of the risk profile they face.
Do your DD like you would with any property investment. You have time. The 1.98% discount on fees is simply a pressure selling tactic to get you to commit earlier. It represents $198/$10k invested …. peanuts when assessing an investment. You pay more to DD a property so don't get all wound up about missing the pre $20m discount window. In the scheme of things it's absolutely nothing (and its tax deductible)
Get your overall investment strategy clear in your head or on paper. Assess the risk and allocate financial resources accordingly. Investment 101… do not put all your eggs in one basket. High risk investments should not encapsulate the majority of your investable funds.slowachieverParticipant@slowachieverJoin Date: 2006Post Count: 34
I have now put $$$$ 60,000 in .Thanks Steve . Got the info I was after at the Perth seminar . Any type of investing requires research if it suits your personal situation .Make sure it is $$$ spread well ,and you hedge yourselves by what investment types have been chosen within portfolios , varying types .
There are plenty of newsletters around to get onto and then have some ideas of how a spread could be set up , example "The Daily Reckoning" , buy some gold , some shares ,property direct , property listed or unlisted ,and manage the risk or get someone to mange the risk. Or speak to a financial planner who is not just an insurance broker turned planner, but someone who really understands investing in various market types.
Anyway research it folks ,if it's your thing then go,go,go for it . We need to get in quick, get it started before our dollar may drop too much or the currency exchange will undermine us a bit to start with .
COME ON HURRY UP !
Have not put any more in just yet as am considering another property here . A "PPOR" .
Perth Western Australia.wendywParticipant@wendywJoin Date: 2005Post Count: 1
Freckle, my husband I have invested in the fund after much research and consideration. My husband is a true skeptic. I think Steve and his team have been too lax in allowing you so much space on the forums. I've found your comments bordering on offensive. We are not stupid and we do understand the risk of investing – whether here or overseas.
Most of us are long term members of Property Investing and we know Steve well enough to know he is honest, ethical and believable. He has given us the down side to the fund (PDS is nothing but down-side) rather than glossing over it. So I'd be happy not to see any further negative posts from you.
Good luck Steve now the $20M has finally arrived!
Wendywendyw wrote:Freckle, my husband I have invested in the fund after much research and consideration. My husband is a true skeptic.
Then you probably understand the pros and cons better than most.Quote:I think Steve and his team have been too lax in allowing you so much space on the forums.
There's a fairly tight set of terms and conditions for members to adhere to on this forum. Some of the tightest I've come across in my 12 or more years on the net. Some do have space constraints for brevity I believe. Censorship based on whether or not one follows the owners philosophy would almost certainly kill the value of this site or restrict membership to the PI backslappers and ra ra club.Quote:I've found your comments bordering on offensive. We are not stupid and we do understand the risk of investing – whether here or overseas.
No one has implied anyone is stupid to my knowledge. This forum has a diverse range of members from the novice to the highly experienced professional. The site is very pro property investing to the point a lot of comment fails to provide a balanced view.
I personally find it offensive anyone would support the suppression of alternative views in a public forum.Quote:Most of us are long term members of Property Investing and we know Steve well enough to know he is honest, ethical and believable.
And I've said as much here
Quote:He has given us the down side to the fund (PDS is nothing but down-side) rather than glossing over it.
- For the record I consider you to be, highly motivated, knowledgeable, experienced and for the most part an ethical business person.
The PDS is a statutory requirement on virtually all financial proposals. At best the presentations in total are highly biased to the upside and gloss over the down side. All new funds presented to the market regardless of where they come from talk up their prospects. I wouldn't expect them to do otherwise.Quote:So I'd be happy not to see any further negative posts from you.
I'm afraid you may be disappointed.Quote:Good luck Steve now the $20M has finally arrived!
Indeed good luck!!
~John Stuart Mill, On Liberty, 1859
We can never be sure that the opinion we are endeavoring to stifle is a false opinion; and if we were sure, stifling it would be an evil still.DerekMember@derekJoin Date: 2004Post Count: 3,544
I have no problem with Freckle's 'half-empty' perspectives.
I learned long ago that really listening to people who had a sometimes contrary point of view on different matters was a very helpful leadership attribute. While I don't agree with everything he says, his often sobering points of view are more often than not worthy of consideration.
To give you an example of what I mean – about 6-8 years ago this forum was full of people who understood Steve's 11 sec rule from his first book. The problem was that was the only thing they seemed to remember from the whole book. Maybe it was the easiest part to 'do' as there were other chapters devoted to property selection based on fundamentals and logic.
Having Freckle onboard helps keep the whole PI ship steady.Derek wrote:
Having Freckle onboard helps keep the whole PI ship steady.
That's a lot of responsibility for one guy.
If I'm steadying the whole ship I want more pay!jmsrachelParticipant@jmsrachelJoin Date: 2012Post Count: 711
When i first read freckles post i thought this guy would have to be the most negative person on Earth. But after a while you realise he actually makes sense, knows what his talking about and not afraid to tell it as it is. And i love the graphs!!
His only looking out for you and not throw your hard earned cash awayRick staParticipant@rick-staJoin Date: 2011Post Count: 119
I also think Freckles comments are worthy of consideration and they usually send me delving into stats and graphs. One thing I would like to know is where are you actively investing Freckle, if at all?TerrywParticipant@terrywJoin Date: 2001Post Count: 16,110DubstepParticipant@dubstepJoin Date: 2012Post Count: 395
Also a great fan !DWolfeParticipant@dwolfeJoin Date: 2009Post Count: 1,253
Have to say Freckles comments are half and half to me, half the time I agree, the other half I think… "why/what?" It's good to have people challenge your thinking, even if afterwards you still think, nup I'm right.
I can see why some people would get annoyed, Freckle, you don't mince words.
Freckle, I think you've been called out… what do you invest in? I know previously you have said a silver company. Is this directly or indirectly? Do you own any physical real estate (not that this matters as such, investment knowledge is still the thing that counts)? I think on an earlier thread you said you also invested in business or companies? Is this through the share market or directly as a partner etc?
Feel free to let us know your investing history, I think most people here have been quite open with what they have done over the years.
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