Somtimes i am not sure if every one is on the same wave length, and since reading,posting , listening and learning, esp on SS i would like to spell out my interpretation on ips, and related property, its my opionion so here goes,
land increase is inevitable, they dont make much of it,any more, and you will hear the like of john fitsgerald talk of the land content % relating to ip's but its the use of our , incomes, being ,it ,of a job or small buisiness that should be used as the primary veichle allowing you to grow the portfolio,
some instances for you are , on cable, i saw an interview with a guy hat had three perfectly good ip's in germany, during one of our recessions he was threatened with repo, as his tennents left and lived with familly, smarter than most , one of the propertys, he purchased a photo coppier, and was happy to sell copies as long as he paid the mortgage and the young fella behind the counter, covering the payments, another ip, he rented three cheap cars from it allowing him to get through the tough times, but also providing enough income to keep them , ironically today they are known as Quick copy and avis,
another way of looking at land is like , KFC as i understand it, the owners of the brand name , purchase the land , build the new store, and lease the owners the rights to selling the product, the actual owners don't really care of the chicken profit so much, as they only require the land to be babysat and paid by OPM" Other peoples money " whilst increasing in value as land does, The big M does the same , but their branding is so good , that they can buy 1m in land build the store and sell/lease the franchise for 10 mill in a year thats 1000% land increase in 1 year, who care s about the burgers, as long as the leaseee is paying off the million mortgage for the owner,
small buisinesses perhaps should be looking at buying the shop/ they trade from so that as time goes on the shop creates equity too , so starting a cafe, to break even after mortgage payments iis not always a bad thing, the income might be nill after costs but the land content might be + 250k, nice years work when you have three,
for me i will be using these case studies and build my construction/ property maintenance buisiness , as a financial veichle to buy and service property, with the awsome bonusess to be able to value add at cost.and using OPM to cover tha mortgages, they will be simple properties , midle range plus some.
So providing the staff a paid, the profit goes toward value adding and growth of the property portfolio, regardless how the market swings
thanks craigb
land increase is inevitable, they dont make much of it,any more, and you will hear the like of john fitsgerald talk of the land content % relating to ip's but its the use of our , incomes, being ,it ,of a job or small buisiness that should be used as the primary veichle allowing you to grow the portfolio,
some instances for you are , on cable, i saw an interview with a guy hat had three perfectly good ip's in germany, during one of our recessions he was threatened with repo, as his tennents left and lived with familly, smarter than most , one of the propertys, he purchased a photo coppier, and was happy to sell copies as long as he paid the mortgage and the young fella behind the counter, covering the payments, another ip, he rented three cheap cars from it allowing him to get through the tough times, but also providing enough income to keep them , ironically today they are known as Quick copy and avis,
another way of looking at land is like , KFC as i understand it, the owners of the brand name , purchase the land , build the new store, and lease the owners the rights to selling the product, the actual owners don't really care of the chicken profit so much, as they only require the land to be babysat and paid by OPM" Other peoples money " whilst increasing in value as land does, The big M does the same , but their branding is so good , that they can buy 1m in land build the store and sell/lease the franchise for 10 mill in a year thats 1000% land increase in 1 year, who care s about the burgers, as long as the leaseee is paying off the million mortgage for the owner,
small buisinesses perhaps should be looking at buying the shop/ they trade from so that as time goes on the shop creates equity too , so starting a cafe, to break even after mortgage payments iis not always a bad thing, the income might be nill after costs but the land content might be + 250k, nice years work when you have three,
for me i will be using these case studies and build my construction/ property maintenance buisiness , as a financial veichle to buy and service property, with the awsome bonusess to be able to value add at cost.and using OPM to cover tha mortgages, they will be simple properties , midle range plus some.
So providing the staff a paid, the profit goes toward value adding and growth of the property portfolio, regardless how the market swings
thanks craigb