Forums / Property Investing / Help Needed! / I need some inspiration

2019 Money Magnet Symposium - Discover how to make, and keep, more money and achieve a financially empowered future
Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of mark76gmark76g
    Participant
    @mark76g
    Join Date: 2003
    Post Count: 46

    My situation,

    IM 42 and I have to support my wife and young son.
    My wife is a foreigner applying for a pr and cant work in and kind of meaning full employment.
    I quit my office job years ago to scratch out a basic living advertising things on the
    internet from home. I really hate bosses.

    Ive wanted to get involved in property ventures over the years but I cant borrow money because of my employment status and what most people at property seminars dont understand is that in order to play capitalism you need CAPITAL. Its been very frustrating for me over the years to sit back and watch on the side lines while everybody else in Australia became high net worth individuals because they can borrow and I cant.
    I found from past experience that I dont relate well to other people so I cant really get backed by anybody else no matter how good my ideas are. That inclues friends and family.

    I have only one asset my apartment on the gold coast where I live with my family.
    Its worth about $350,000 and still has a $180,000 mortgage left over for along time ago when I could borrow money. I feel I need to do something so I dont end up retiring in poverty.

    If I sold my apartment that would release some capital and open up options for me.
    I cant borrow. Yes I really cant !!!. I have no documented income. I spoke to the bank and they said they will let me do whats called a security substitution which involves moving all or part of the mortgage to another property without making me re apply for the loan. so that gives me a little bit of flexibility.

    So assuming I sell that gives me $170,000 cash and a $180,000 loan that I can keep all or part of.
    Once I sell I will have to rent somewhere and cover my families costs so thats a consideration.
    Im time rich my and im prepared to go anywhere and do what ever it takes to get a result.
    Years ago when I could borrow I did a couple of renos so I have some handy man skills.

    Here are some ideas…

    1) – Owner builder – safest
    Become an owner builder start in some regional area where land is cheap build a house cheaper than the market live in it for X months. Sell it. Take the proceeds move to a slightly better area and repeat.

    2) – Chop up and old block of flats. – riskier
    Buy and old 4 pack of flats in some small town for $300,000 ish. Move out there for a while.
    Nice them up a bit and strata title them and sell. Then repeat.

    3) – A mini property development – very risky
    Buy a big block in a regional area for $300,000 ish. Draw up plans for 4 town houses and have
    a local agent sell them off the plan. If I can get the pre sales go to the bank and borrow the money and have a building company make them for me.

    4) – Get involved with us tax liens – Totally crazy.
    I did Steves USA tax lien course a few years ago so I understand the concepts enough to get
    started. I could sell let my mortgage go and take my cash to the usa and just focus on tax liens.
    Im very familiar with the usa Ive got Bank accounts and an ITIN and know a few people in the real estate business. If the tax lien interest returns are 15% ish thats not really enough to count for much with my tiny starting bank so id have to focus on properties that turn into forecloses. Not sure how feasible that is. ???

    Also, the more insecure the option the more likely my wife is to go crazy and create emotional drama.

    So tell me what you think ?

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,749

    Hey Mark,

    Thanks for the post. Wow. There was a bit in there!

    Ive wanted to get involved in property ventures over the years but I cant borrow money because of my employment status and what most people at property seminars dont understand is that in order to play capitalism you need CAPITAL.

    Very true! You need money to deploy – either yours (equity, savings) or someone else’s (JV, money partner, lender). Otherwise, the best way I know to create capital is to use the internet to monetise knowledge.

    I have only one asset my apartment on the gold coast where I live with my family.

    Hmmmm. This has me worried. Smart investors don’t use their homes as collateral unless absolutely necessary. It sounds like with a wife and young family, you need this home and you shouldn’t invest with assets and capital you can ill afford to lose.

    You listed various options, but I am worried that options 1, 2 & 3 will be too capital intensive for you given you available cash and borrowing capacity. That said, perhaps scope some projects and see for yourself. As for tax liens, that boat has sailed – with the AUD lower and yielding assets in demand, the opportunity that was there re: tax liens in 2009 is not the same as the opportunity there in 2019.
    Side note: you may find your ITIN has expired, or is about to, expire. They are only good for a finite period of time and have to be renewed.

    It sounds to me that if you want to deploy your capital in real estate, then I would consider being someone else’s money or JV partner (noting what you said about not relating well, and hence the legal agreement will be important), or else buying in to some kind of listed / unlisted REIT structure.

    All the best,

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.