Peter Spann Strategy, anyone made it?

[evand]

As always, love your work Sunfish. Great stuff and very true.

If more people realised this one simple fact (and its implications) they would be a lot more successful.

For one eg: I think Dazzling gets it. He obviously takes responsibility for his own success (and failures), hence his success.

Anyway, I look at at it in a slightly different way. From a marketing point of view.

It's a marketing standard that just about all people listen to a radio station called WIIFM.

That stands for "Whats In It For Me"

Mentors, teams of experts......bahh!!...show them the money!!

Why this search for a mentor?

Let's get one thing straight: No one out there loves you.

 

[Ol School Skata]

Willair,

Why have you highlighted the chart for Credit Corp?

OSS

 

[Sailesh Channan]

Peter is a great motivator. I was part of one of his first seminars back in 1998...run especially for a company I used to work for back then.

The room was buzzing with excitement. There where lots of strategies tossed around from the share market to property. Most of his strategies where more advanced then what the group where exposed to at the time.

The main thing he achieved was that it got people thinking.

It made me go out there and purchase 2 properties within 12 months which I am very thankful for.

One of the key things I got out of it is the amount of time he spent to get to know your suburb our area that you are investing in. So now I spend a lot of time researching suburbs.

 

[willair]

Willair,

Why have you highlighted the chart for Credit Corp?

OSS

OSS,Those two are just a few that i watch,i have 0ver 34 companies on my whiteboard that i watch day in day out,and when they drop to a entry level in todays erratic markets i work out if they are worth a punt,most of my success strategies from last year will not work in this market,Btw just look who has control of those companies..willair..

 

[crc_error]

so by the sounds of it, Peter Spann didn't make anyone a millionaire in 7 years, but he did motivate people to purchase a few IP's and shares and commence a investing career.

At best I can see if you ALREADY had cash or equity to work with, then you can make it, but by starting from nothing, it will take allot longer to achieve but only 'some' level of success..

 

[Sunfish]

So my mentor is SS, books on IP investing, accountant, lawyer, MB, www etc. They all teach me things and are full of really good advice.

Looking at it this way, mine are Jim Puplava, Dan Denning and the guys at Whiskey and Gunpowder

Today's newsletter from Dan Denning on Daily Reckoning Australia is particularly good. Explains why I don't like banks and prefer resources. Even if you don't agree, it's a good read.

 

[Ol School Skata]

OSS...
...Btw just look who has control of those companies..willair..

Willair,

I am aware the FXI is a listed company from the Peter Spann/Freeman Fox background, but do not understand your comment regarding who is controlling CCP - do you mean that fund managers are major shareholders, is there a common board of directors for these companies?

To borrow an infamous quote.....Please explain?

OSS

 

[willair]

To borrow an infamous quote.....Please explain?

OSS

OSS,I like the quote from late "K-P", IF YOU DON'T COMPLAIN YOU DON'T HAVE TO EXPLAIN"...everything about any public listed company is out there if you want to find the data,most is free, i'm still unsure what you want me to say,I don't care 1% what the big boys of investing do,I have my own system that I know works day in day out,every now and again you cop a kick in the guts,like the Banks have given me over the past 12 weeks some holdings above 27% loss but that does not worry me 1%,i only look at the numbers,not the people that stand on the magic soap box who talk for a living ,This is the way i look at life in investing,The loudest person in the room is always the weakest..willair..

'
'

 

[Witzl]

actually I believe most of his property was purchased in Sydney.

ahh... well i stand corrected then


getting back to the topic - i too found his book to be overall inspiring and motivating, and was a good guide for me to start putting together a strategy and start planning out my investing path.

Was a good read for me as a beginner. Highly recommended.

 

[Francine]

free health check

I've been sent an email that i can get a free health check with him. should i go . do you think it will offer me any more solutions for my situation than the one i already did last week. I guess different techniques used now it may.

i liked his books
he bought mostly one and two bedroom apartments became an expert in them and had tricks how he did them up to maximaise space.

alot of people became very welathy in a few years on very small supermarket or icecream shop wages such as anita bell, kirsten dunphey, tracey lee harvey. and many others didnt have high incomes 30-60 000.I dont remember the neutral cashflow part but dont doubt that thats the case.

paula.

 

[eKwatee]

My belief is to attend as many seminars as possible and determine what part of their strategy best ties in with my strategy and focus on that part and eventually I will have a successful strategy of my own. Allot of these seminars are just reworded seminars from the past, all they have probably done is exactly what I mentioned. To come up with their own formula from attending multiple seminars themselves.

 

[The Y-man]

so by the sounds of it, Peter Spann didn't make anyone a millionaire in 7 years..

Millionaire - I am sure plenty - depending on where you started! From broke to 10-20 million in 7 years - probably not.

I don't think Peter is trying to say everyone could do it - merely claiming that he did it. The other important thing I got from the book was that it was not solely through investing that he made his fortunes - in fact the investing factor came later. If you read the chapters on the laws of money magnetism, it actually talks more about one's self, rather than investing. When you are broke and have no money to "invest" - you need to "invest" in yourself - i.e. develop your "job" skills (whether as an employee or self employed), and leverage those skills.

Cheers,

The Y-man

 

[oasis1frog]

Didn't know P.S. still into property, I thought it's a dirty word to him. Must admit he is a very savvy investor, not so sure about some of his "wealth managers" though.

 

[The Y-man]

Must admit he is a very savvy investor....

.........or savvy businessman?

Cheers,

The Y-man

 

[imonmyway]

I read his $10 million portfolio book it was interesting but brushed over some key points and really relied on a market that was close to cashflow positive and in a upward cycle with low interest rates, it contridicted itself a bit as well. The bit were you borrow to invest in property trusts to me seemed extremely risky.

However I found it easy to read if not a little annoying at times the whole rich friend thing grated on me.

The key i think is to read and educate yourself enough to develop your own strategy based on the real estate market at present and going forward and based on the amount of risk you are comfortable with. Understanding other peoples strategies from the past should not be ignored in case the market moves that way again.

 

[Bill.L]

Hi all,

I don't think Peter is trying to say everyone could do it - merely claiming that he did it.

Actually Y-man, he has claimed it in the past.

This from a post made by Peter several years ago in the thread about his book.

And finally, yes I do, unequivocally believe that gaining $10 million in 10 years is possible and I think it is a feat more likely to be achieved by an “Average Joe” than anybody else because they are not continuously questioning strategy – they just get on and do it.

Your point about savvy businessman, I think encapsulates it all.

bye

 

[Melbear]

I use all these people as well for business and investing but i don't call them my team of experts...if ones no good......pfhht...gone...next please.

I consider them people i pay for their services... if i'm risking my money, i like to consider myself the expert.

I prefer the saying 'Look at the team you have around you. If you are the smartest one there, you are in trouble!'. There's no way I could be an expert in conveyancing, banking, building inspections etc. etc. Did not Mr Ford get accused of being unintelligent (can't put my finger on the word I'm looking for) in court? His answer was that I do not need to know the answers to your stupid questions when at the click of a button, or on the end of a phone is someone that I'm paying who will know the answer?

 

[redsquash]

Hi Friends,

This is Peter Spanns '7 years to retirement' stratergie in a nutshell.

1/ Buy IP with basic renotation potential.
2/ Renovate property
3/ Draw down 'new instant equity'
4/ use as deposit on next IP
5/ Do it all again

6/ At some point, wait a year, draw down new equity and invest into '7 power performing selection critera shares' or now he pushes quality managed funds or write covered calls
7/ use income from these shares/covered calls to offset interest only loans on IP's
8/ increase rent
9/ once servicability allows, and equity is avaliable purchase another IP
10/ keep doing this till you develop enough income to replace your '9-5' job income or more.

On the surface this stratergie looks good, but in practice I can see flaws in it. Firstly the ability to pay the interest, your constantly re-drawing equity, increasing your debt. Sure you increase rents, but these increases never seem to be enough to cover these extra borrowings unless you wait years for the rents to catch up.


Thanks

You wont be able to Draw down 'new instant equity',unless you are able to meet the serviceability requirements of the bank.Thats another concern.You may also only get 80% of that new instant equity depending on the lender.

The higher cashflow you have to start the better and easier this strategy works. I dont doubt it worked for Peter, but I would expect luck and timing were also influential.Point 6 may take a year or two or three or more.
Over many years I think you would do well with this strategy, but the inference is that it can be done in a short period of time. I see that as very difficult to achieve

 

[Melbear]

I got the Welcome to Wealth (I think it was called) video back in 1999 or 2000. Didn't want to attend a seminar as they were all in Sydney and it was a bit hard to get there. From memory his way of dealing with negative cashflow properties even then was writing covered calls. Even if you only put $10K or so into the market, you could still make enough to cover the shortfall for a couple of years until that property became positive.

I believe that everybody can accumulate $10M worth in 10 years if they have a plan and stick at it. People tend to overestimate what they can do in 1 year, and massively underestimate what they can achieve in 10. I had accumulated close to $5M in property in around 5 years with my ex, but of course now that he's my ex, I've only managed to salvage around 2 for myself, but I'm looking at a deal at the moment that may well increase that by 50%.

Peter's strategy of writing covered calls to pay for the shortfall is my main MO at the moment, especially with a property in Paddington returning a massive 3.5% with mortgage payments of 8, let alone land tax etc. etc.

 

[Melbear]

You wont be able to Draw down 'new instant equity',unless you are able to meet the serviceability requirements of the bank.Thats another concern.You may also only get 80% of that new instant equity depending on the lender.

The higher cashflow you have to start the better and easier this strategy works. I dont doubt it worked for Peter, but I would expect luck and timing were also influential.Point 6 may take a year or two or three or more.
Over many years I think you would do well with this strategy, but the inference is that it can be done in a short period of time. I see that as very difficult to achieve

Check out keithj's story in this post http://www.somersoft.com/forums/showthread.php?t=32265
He talks about the 'servicability' issues for him and some ways around them - plus he achieved his outcome in about 5 years. Starting from 2001 - not way back before that.