I attended an Investors Direct boardroom seminar last night. It was $45. You may notice on a few other threads I have asked people for feedback on it. I didn't get a huge response so I thought I'd go and update all you guys!
I've always found what Bill has had to say very interesting and this night was no exception. I recommend it to those looking for a strategy to reach a passive income (most investors).
After 11 years of running his mortgage broking business and seeing the financial results of ~6000 clients, Bill said he could noticed a pattern that worked very well for people on regular incomes buying regular properties.
In short, Bill says only a rare few investors who follow the regular buy and hold 5-10 properties over 10-15 years with a view to THEN sell a few, pay down some debt and live off the rents end up getting a decent amount of income in this end game scenario.
He claims that you can get there quicker by selling along the way - 3 steps forward, 2 steps back, so to speak. Average income, average properties.
On face value, it's seems less efficient due to the losses associated with the transaction costs, but apparantly the maths work out better. I haven't seen them but am going in for another session to run my numbers through the model.
Obviously there is more to the strategy and those who are interested should go to a session.
Questions to forum
1. Has anyone done this or something similar? Are you achieving your passive income goals?
2. Anyone currently using Investors Direct service to implement this?
[If I have inadvertently posted any intellectual property from Investors Direct and they would like it removed, please contact me and I will do so]
I've always found what Bill has had to say very interesting and this night was no exception. I recommend it to those looking for a strategy to reach a passive income (most investors).
After 11 years of running his mortgage broking business and seeing the financial results of ~6000 clients, Bill said he could noticed a pattern that worked very well for people on regular incomes buying regular properties.
In short, Bill says only a rare few investors who follow the regular buy and hold 5-10 properties over 10-15 years with a view to THEN sell a few, pay down some debt and live off the rents end up getting a decent amount of income in this end game scenario.
He claims that you can get there quicker by selling along the way - 3 steps forward, 2 steps back, so to speak. Average income, average properties.
On face value, it's seems less efficient due to the losses associated with the transaction costs, but apparantly the maths work out better. I haven't seen them but am going in for another session to run my numbers through the model.
- The strategy uses H&L packages to keep entry transaction costs low (Vic), tax depreciation high and therefore low CF requirement.
- This is what I've known many developers to do. I had always thought it was strange, but if they are doing it maybe there is something in it?
- It's something like buy 3 in year 1, sell two in year 4 or something - not confirmed.
- Maybe net 30-40k from each sale x 10+ (?) times over.
- The overall concept is that the transaction costs under this strategy is less than the bank interest + any neg CF on holding properties.
- 70% below states median - 400-450k stuff, 4-5% rents, 6-8% growth.
- End state of 100k pa passive in 10 years (i.e. 2.5mil unencumbered @ 4% rent = $100k pa).
Obviously there is more to the strategy and those who are interested should go to a session.
Questions to forum
1. Has anyone done this or something similar? Are you achieving your passive income goals?
2. Anyone currently using Investors Direct service to implement this?
[If I have inadvertently posted any intellectual property from Investors Direct and they would like it removed, please contact me and I will do so]
