Does anyone have any experience with the company named OpenCorp?
I’d like some feedback/comments if it’s worth while.
FXDNathanParticipant@nathman51Join Date: 2014Post Count: 3
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!!!
CheersscotthochgesangParticipant@scotthochgesangJoin Date: 2010Post Count: 3Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
Interesting endorsement from someone making their maiden post.
Am I a sceptic or just olde fashioned.
Yours in Finance
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.
CheersBennyModerator@bennyJoin Date: 2002Post 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.
PS Hope your H/L area gets its infrastructure up and rocking quickly, Bon !!!
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.
CheersBennyModerator@bennyJoin Date: 2002Post Count: 1,416
Awesome, Bon – what a smart move !!
Thanks guys. Exactly the kind of feedback I am after.
FXDSizzaParticipant@sizzaJoin Date: 2016Post 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.
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.StoreybuilderParticipant@storeybuilderJoin Date: 2016Post Count: 45
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!!!
CheerszenParticipant@zen007Join Date: 2016Post Count: 46
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
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.
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
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.
Good for you, thanks a lot for your thoughts!
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.
- This reply was modified 2 years, 1 month ago by kengw002.