All Topics / General Property / Investment strategy with OpenCorp

Viewing 20 posts - 1 through 20 (of 21 total)
  • Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Hi experts,
    Does anyone have any experience with the company named OpenCorp?
    I’d like some feedback/comments if it’s worth while.

    Thanks.

    Cheers.
    FXD

    Profile photo of NathanNathan
    Participant
    @nathman51
    Join Date: 2014
    Post Count: 3

    Hi there,
    I know their founders Cam & Al are extremely successful investors in their own right. They know their stuff and are there to help. You can checkout their WODs on their youtube channel. They make a lot of sense & put some much needed humour into the world of property investing…they under complicate the unnecessarily over complicated! They are not sharks. They are the real deal. They won’t pressure you and I have found them to be respectful and very helpful. They are not dream crushers!!!
    Cheers

    scotthochgesang
    Participant
    @scotthochgesang
    Join Date: 2010
    Post Count: 3

    Hi Nathan,
    Have you actually used their service? I would like to understand how it works. Do they charge the buyer a fee? Do they take commissions from new property sales?

    Scott in Balmain
    [email protected]

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Interesting endorsement from someone making their maiden post.

    Am I a sceptic or just olde fashioned.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

    Profile photo of BonBon
    Participant
    @bonneym
    Join Date: 2015
    Post Count: 5

    Hi All

    This is my first post ever after watching for nearly a year now
    We bought a h/l property through Open Corp over 12 months ago. You pay them a fee to manage the whole build and property management for the first 12 months. They guarantee the first years rental.
    They are relying on capital growth and refinancing when there is enough equity in the property so you can then duplicate and buy another h/l in a capital growth area.
    They are Selling the idea that the property will grow 7% every year hence the property
    Will double in value in 10 years.
    If i had my time again I wouldn’t have gone down this track. I’m now praying for capital growth. I will evaluate the property in 3-5 years and decide if I should sell it.

    Cheers

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Hi Bon and others,

    Where a company is selling H/L in “greenfields estates” (i.e. fresh subdivisions in land away from existing suburbia – e.g. Pimpama) it is highly unlikely that there will be much Capital Growth in the first few years. This is because they usually sell H/Ls for as much as they can get (and also the reason why a rental guarantee is necessary).

    The 7% growth figure quoted is a pie-in-the-sky figure that is probably about right for the average property in Australia. But this is not 7% per annum linearly – it is usually 3 years of 15% to 20% then 7 years of flat/falling values. The average is about 7% over time.

    A new H/L purchase in most estates is quite UNlikely to grow by 7% for at least 5 years, and even this will depend on how quickly the suburb becomes useful and desirable (i.e. has infrastructure following in quick time – schools, shops, transport, etc).

    Those that do well out of H/L packages are usually Developers, so if you want to buy a H/L, you be the Developer – THEN you can get a bargain and buy at Wholesale. The Equity growth is likely to be WAY above 7% in its first year.

    As Steve says “Buy problems and Sell solutions”. i.e. You buy the unimproved land and build the house on it. Or buy the house needing a reno, and you do the reno, etc.

    Benny

    PS Hope your H/L area gets its infrastructure up and rocking quickly, Bon !!!

    Profile photo of BonBon
    Participant
    @bonneym
    Join Date: 2015
    Post Count: 5

    Thanks Benny
    I’m doing Steves course now and feel quite silly and uneducated with our purchase with open Corp.
    Will definitely be keeping my eye on this property but will see how it goes for a couple of years.
    We are looking at doing a subdivision in the near future.
    Cheers

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,416

    Awesome, Bon – what a smart move !!

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    Thanks guys. Exactly the kind of feedback I am after.

    Cheers,
    FXD

    Profile photo of SizzaSizza
    Participant
    @sizza
    Join Date: 2016
    Post Count: 1

    Hi guys, new to the forums. I too have been recently presented with a property in a Cranbourne East development. In theory it’s sounds great but can I really be sure that it’s a good area to be in?
    Would love to hear an opinion on whether the Cranbourne East area is worth the investment.
    Thanks guys

    Profile photo of fxdaemonfxdaemon
    Participant
    @fxdaemon
    Join Date: 2013
    Post Count: 114

    The real concern I have with companies & the sales
    pitch of their consultants saying things like:
    “I also own a few such H+L properties in the same
    development …” is that it sounds almost like Amway
    in a larger scale in the properties industry.

    Don’t like that at all but that’s just my opinion.

    Profile photo of StoreybuilderStoreybuilder
    Participant
    @storeybuilder
    Join Date: 2016
    Post Count: 45

    Interesting endorsement from someone making their maiden post.
    Am I a sceptic or just olde fashioned.
    Cheers
    Yours in Finance

    Read my olde mind

    Profile photo of BonBon
    Participant
    @bonneym
    Join Date: 2015
    Post Count: 5

    Hey Sizza
    Open corps strategy would have Cranbourne east as too far away from CBD for capital growth.
    We bought in greenvale with their strategy. Let’s see how we go!!!
    Cheers

    Profile photo of zenzen
    Participant
    @zen007
    Join Date: 2016
    Post Count: 46

    Hi Team PI’s, while we’re on Opencorp subject, wondering if anyone joined their Property Development Funds and if your able to share your experience with us?

    http://www.opencorp.com.au/development-funds-2/

    thank you

    zen

    Profile photo of kengw002kengw002
    Participant
    @kengw002
    Join Date: 2018
    Post Count: 14

    Hi Bon, how does your property seem to be fairing that you bought with OpenCorp now?

    Are you seeing any capital growth now since you started renting it out?

    cheers for your help

    Profile photo of BonBon
    Participant
    @bonneym
    Join Date: 2015
    Post Count: 5

    Hey kengw002
    Going on comparable sales in the area our property has grown $120K in 3 years so happy with the capital growth, tracking at around 7%. We are negative $4500 cash flow so hoping to get neutral in the next 2 years by paying P/I and rents are going up in the area.

    Profile photo of kengw002kengw002
    Participant
    @kengw002
    Join Date: 2018
    Post Count: 14

    Congrats that’s going ok then I assume your happy with that?. I was thinking greenvale (if its the melbourne greenvale we are talking about I assume) has quite a lot of land around it on the north west side, as opposed to having built up property all around it.

    so do you think its going ok due to them are releasing land quite slowly there and keeping demand above supply?

    or any other reasons perhaps?

    would you go with opencorp again? as earlier I noticed you perhaps werent quite so sure of them after the purchase due to being more educated.

    But now has your opinion changed now the results are a bit more solid?

    I’m in a similar position now, that you were in prior to purchasing with Opencorp and i’ve been speaking with them considering using them.

    cheers for your thoughts

    • This reply was modified 2 years, 1 month ago by Profile photo of kengw002 kengw002.
    • This reply was modified 2 years, 1 month ago by Profile photo of kengw002 kengw002.
    • This reply was modified 2 years, 1 month ago by Profile photo of kengw002 kengw002.
    Profile photo of BonBon
    Participant
    @bonneym
    Join Date: 2015
    Post Count: 5

    They were great to deal with but won’t do another. Depends what your investment strategy is and how active you want to be. You are relying on 7% growth per year and holding down a job to accumuate properties that start as negative geared properties. You don’t have any control over capital growth. What if the market slows??
    I am now an active investor with passive income as my strategy.

    Profile photo of kengw002kengw002
    Participant
    @kengw002
    Join Date: 2018
    Post Count: 14

    Good for you, thanks a lot for your thoughts!

    Profile photo of kengw002kengw002
    Participant
    @kengw002
    Join Date: 2018
    Post Count: 14

    Hey Bon, you mentioned that you now are looking at being an active investor with passive income as your strategy.

    can you shed some more light on this direction for me, who you learnt this direction from? why that works better for you now, what it entails etc?

    I’m trying to shortcut my learnings and understand the game as quick as possible so I can pick the direction I need to go in and not end up down a bunch of rabbit holes.

    Thanks in advance for your help, and appreciate as much detail as you have time to give.

    cheers Grant

    • This reply was modified 2 years, 1 month ago by Profile photo of kengw002 kengw002.
Viewing 20 posts - 1 through 20 (of 21 total)

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