Thanks Steve!!!

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!

Just out of interest, why are you guys referring to a figure of $100k+ ?  My understanding is the minimum investment is $10k, not $100k…

@jacm

Yes the minimum is $10K up in $1k increments but Steve has received some cheques for $100K or more, I was just saying I wish I was one of those ppl in a position to be able to drop $100K on the table.

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!

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.

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!

Wendy

Hi Wendy,

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.  

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 away

Me too!

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.

Cheers

D