Margret Lomas

Hi Everyone,
Not sure how many of you went to the investment expo this weekend in Sydney, but i had a chance to meet with margret Lomas. She seems to be a very asstute and professional buisness woman. My question is have any of you actually used any of their services? One of my minor concerns was some of her staff appeared to be extremely nice and caring people but they had very limited experience. This is a concern to me as it is very difficult to learn from a person who is gaining their experience from what we are doing. Am i being slightly paranoid or do i have good reason to be reserved in my decision. I certainly liked their concept of positive cash flow property but by the same token find it very difficult to discover exactly how and where the search for these properties. Any help would be much appreciated.

Dear Jasin,

Your concerns are well founded.

Margaret is an excellent marketer and has made a success for herself. I believe she now owns seven properties. (Do a search on this forum for more information on Margaret.)

Would I use her to source properties for myself?........... No.

It comes back to what is your end objective. Do you want to pay someone else to source properties for you so that you do not understand the selection process and how to do your own due diligence? Will you have to keep paying again and again for services because you have not obtained the information yourself.

Again, give someone a fish and you feed them for a day. Teach someone how to fish and you feed them for a lifetime.

Suggest that you catch up with some of the local Sydney guys. Did you go along to lunch at the Rocks today? If you missed it then maybe they will have another one in the not to distant future. Ask, you never know who could help.

http://www.somersoft.com/forums/showthread.php?s=&threadid=7467

Cheers,

Sunstone.

Hi all
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"Margaret is an excellent marketer and has made a success for herself. I believe she now owns seven properties. (Do a search on this forum for more information on Margaret.)"
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At the moment Margaret Lomas has 3 properties in total in her own name in NSW she has had others but has sold them over the years.

I dont know if she has any in a company name or it other states though.

Regards
Simon H

I haven't used Margaret or the services of her company; so I can't comment on them.

I have read her book "How to Create an Income for Life". I was very concerned on page 30 of this book where it states "... when you buy positive cash flow property, the number of properties you can buy will technically be unlimited".

IMHO, this is not true. My understanding is that her system uses the tax refund to make an IP cash flow positive, due to the rent being less than the property expenses and depreciation (refer example on page 28 of her book). While you can do this for a couple of IPs; the more IPs you do, the less the tax refund becomes. So, the only way I see that you can buy unlimited IPs on this system is to have an unlimited salary - this is something that I am still seeking.

If my understanding is correct, I get concerned when a "property guru" states otherwise.

If my understanding is incorrect, can someone "please explain" where I got it wrong and my sincere apologies to Margaret. I was going to email Margaret to explain my concerns - one day I will get around to it (when I can get off this blo..dy Forum!!!).

To be fair, I did get some useful information from the book and I feel it was a worthwhile investment (i.e. I am not considering asking for my money back).

KieranK

Hi Guys

Dont know ML from a bar of soap.

Doesnt really matter if she owns 1 property in her name, in a trust or whatever.

Acid test should be what has she done for her clients. I have seen little negative press on that front.

The simplest way to assess is to ask if one can speak with existing clients. Referrals make it really simple.

ta

Rolf

Dear Simon,

At the moment Margaret Lomas has 3 properties in total in her own name in NSW she has had others but has sold them over the years.

Click to expand...

Where did you source this information? Has she not followed the golden rule of property? The last time I heard her speak seven was the number that she said but that was over 12 months ago.


Dear Rolf,

Referrals make it really simple.

Click to expand...

Agree that referrals certainly can be useful and an important part of due diligence. It all depends on what Jasin's end objective is. If Jasin tries to take a shortcut like this then she will be compromising their education for the second purchase. Is the end objective one property or is it past that?

Cheers,

Sunstone

Originally posted by kierank
I have read her book "How to Create an Income for Life". I was very concerned on page 30 of this book where it states "... when you buy positive cash flow property, the number of properties you can buy will technically be unlimited".

IMHO, this is not true. My understanding is that her system uses the tax refund to make an IP cash flow positive, due to the rent being less than the property expenses and depreciation (refer example on page 28 of her book).

Click to expand...

Kieran,

I haven't read the book- sorry.

It is possible to buy cashflow positive which does not rely on tax refunds. Difficult, but possible.

However,

when you buy positive cash flow property, the number of properties you can buy will technically be unlimited

Click to expand...

Sorry, you will need equity to be able to do this. You need deposit for each new property, plus expenses. 20% deposit will keep those expenses at a minimum- less equity will mean mortgage insurance.

We've lived through a boom. That has helped many with cashflow aims to grow. And that growth has provided the extra equity to go again.

But if the growth does not come, capital growth without cashflow weill get you further than vice versa (imho)

Of course, you can be one like Michael Croft who aims for (and generally gets) both.

Hi Sunstone


quote:
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At the moment Margaret Lomas has 3 properties in total in her own name in NSW she has had others but has sold them over the years.
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Where did you source this information? Has she not followed the golden rule of property? The last time I heard her speak seven was the number that she said but that was over 12 months ago.

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I searched the

Land and Property Information Searches
Owner Inquiry
It Provides a list of current owner and purchaser details for an individual or corporation.

Search Costs and Payment Method
The current cost for an Owner Inquiry is $4.75 including GST. Payment can only be made by way of Credit Card Debit. A Tax Invoice will be issued with the search results.


This information is provided as a searching aid only. The Registrar General does not guarantee that the information provided discloses details of all land owned/leased by the party searched against.

I would just like to stress that this site is for New South Wales only !!
www.lpi.nsw.gov.au

Margaret Lomas could very well have properties interstate, overseas or in a different name ie company name.

Regards
Simon H

Originally posted by geoffw

Sorry, you will need equity to be able to do this. You need deposit for each new property, plus expenses. 20% deposit will keep those expenses at a minimum- less equity will mean mortgage insurance.

Click to expand...

Geoffw,

Sounds like you are agreeing with me and disagreeing with ML. I believe positive cash flow is easiest (not easy) if you have large income and large equity. Even then, the opportunities are NOT "limitless" as ML was suggesting.

KieranK

Hi Jasin,

'I certainly liked their concept of positive cash flow property but by the same token find it very difficult to discover exactly how and where the search for these properties.'

Same question I have been asking - where are they?

Cheers,

Bazza

Dear Simon,

Appreciate the further feedback.

Helpful but too many variables.

Margaret Lomas could very well have properties interstate, overseas or in a different name ie company name.

Click to expand...

Agree and in light of this information I feel confident to rely on my 12 month old info.

Cheers,

Sunstone

another thing i found interesting about ML is she encourages full payoff of the ip's from what i have investigated it seems as a general rule it is better to use the extra payments for another ip. She also doesn't seem to like interest only loans and this goes against the grain of new stratergies do you guys think her stratergies are abit old school?

Hi Jasin,

She also doesn't seem to like interest only loans and this goes against the grain of new stratergies do you guys think her stratergies are abit old school?

Click to expand...

Different strokes for different folks here....

People will adopt a strategy that suits themselves, and only themselves. What one person feels is a good way, another may feel is a not so good way.

Your most important job as a property investor is to find the glove that fits you. You'll have to adjust it every now and then, but eventually you'll have a perfect fit.....

So what would you consider a good stratergy for comparing the different stratergies? There are going to be important factors that will influence profits, cashflow etc what would be the sugested areas to look at?

Jasin

I would like to clear up a few misconceptions here.

Firstly, I am a recent client of Destiny in their Melbourne Branch. Michael Sloan is the main man there and is very experienced.

Margarets plans involve total personal debt reduction and other budgeting issues. As far as I know there is no problem with interest only loans on investment properties whilst you are paying down non deductable debt. Once your non deductable debt is paid off you can then pay down the debt on your investment properties with the ultimate aim of owning them outright and living off the rent.

I am aware that Margaret recently purchased two more properties in Perth but I do not know exactly how many she has. I would say at least 9 or 10.

As to whether you need the services of a group like Destiny depends on your persoanl circumstances. How much time you have. How good you are with figures etc.

Also, despite there being a Property Register, Destiny does not source the deals for you. You can use that resourse if you want to although it is not that highly thought of. They will help you out with referrals and help you every step of the way but do not find the properties for you.

Greta information. Do they assist im understanding as you go as i am not really interested in being fully reliant upon others to invest. Will their knowledge cost an absolute bomb or do you consider it reasonable (What is reasonable?). How many properties have you gotten through the Melbourne center if you don't mind me asking and how long was the aquisition period?

Re: Me

Margaret Lomas has just purchased her ninth property (eleventh actually but two have been sold) which is a commercial property at a cost of $500,000. I know this as I am Margaret Lomas.

My properties are in:

NSW (4 titles for 7 actual individual properties), with the commerical property yet to settle)
Perth (1)
Cairns (1)

I also have a share portfolio of international shares valued at approximately $50,000 and recent investment into the expansion of my own business of $200,000, which essentially was a cash investment.

This will save anyone having to undertake searches, and I am more than happy to answer any questions emailed to me at [email protected].

I am really enjoying the postings here and the lively discussion and encourage everyone to continue to be enquiring and to ask as many questions as they can. I agree that we should teach a man to fish and we at Destiny embrace this mission with our clients every day.

Good luck to all.

Hi,

You are always welcome to visit us in the forum too, not so much technical discussions, but a means to chat socially with us in here.

I think 9pm is about peak time for this place.

Michael G

Thanks

Thanks Michael. Its not too often that I get the chance to actually sit here and do nothing but browse a forum. After today's little exercise, it will take nerves of steel for me to take another peek!!!! I guess when you get lots of good feedback it sort of protects you form the negatives and it can be a little hard to take - mostly because every negative comment I have read today is based on incorrect infomation (heaven help those people who are famous celebrities and get the misquotes all the time).

I was reading a post from my old friend 'mark no hat no cattle' who likes to credit himself with my departure form the msn forum (don;t flatter yourself Mark! I am not that easily scared off)- the truth is that I get to my desk about 1 day in 8, and any free time I do get is always spent with one of my 5 children (who only say nice things about me!!!!!!). The balancing act is a little treacherous at times - and the recent and unexpected death of dad was a blow which I am still having just that little bit of trouble coping with (not quite the superwoman I like to think of myself).

I love to see people taking part in these forums and there certainly is some great information swapped. It is a bit sad when people have to misuse them to vent their own frustrations but perhaps these people don't have alot of other people to talk to and this is it for them.

I will keep on doing what I do - writing about my personal experiences (surely soon I will have enough properties for people to stop calling me a novice!!! - I probably could have by now if I was prepared to do what those other guru's (no, I am not calling myself a guru!) do - that is tread the legal line) and helping as many people as I can. I sleep really well at night and know that I will always feel happy in my own approach and with the level of personal ethics I maintain!

I will try to look in every few weeks and again am most happy to answer direct questions at my own email address.

Keep up the good work everyone!

Hey, after coping with 5 kids who (reportedly) only have nice things to say about you, dealing with this forum should be a walk in the park

I agree with MG - if you do ever find yourself sitting at your computer after about 9pm at night, please pop in to the chat room and say hi - there's usually a good number of people pretending to talk about property investment.