flipping mentor?

Better to move into it. declare it PPOR and then and sell it otherwise wait for 1 year for 50% on CG.

No you are missing my point, I don't want the money tied up in this deal for 1 year (I have other long term holds for that), I can turn it over again and again in that time. I also don't want to be moving three or four times a year :eek:.
 
Hi, in response to a few questions re my post, Rick Otton's course is excellent but you should really take some action if you want to make money from it. I haven't taken any yet but do eventually intend to try it. I originally did the course to learn a couple of specific techniques (which I intend to put my own spin on) but as I haven't bought anything since then I haven't used it...having said that, I'm still very glad I went and I deducted the cost of the course through my business.
The way that Rick uses options is similar to the way developers use options to acquire sites, in my experience. I used to be a planner at the City of Sydney and generally no one bought sites outright, they optioned them for 6 to 12 months and made the sale subject to a development approval...Ricks course just added to my experience with options.

In response to the question "is it legal"? yes, why not, you can take an interest in land, assign that interest and collect a fee for it..it's all in the wording "your name" or nominee" allows you to assign your 'equitable interest' to a third party...totally legal and Rick Ottan has a lawyer who specialises in preparing contracts for all variations of this sort of thing.

I hope that helps. Please feel free to ask me further ???.
 
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No you are missing my point, I don't want the money tied up in this deal for 1 year (I have other long term holds for that), I can turn it over again and again in that time. I also don't want to be moving three or four times a year :eek:.


how do you cope about the CG on those sale? I suppose you would have lots of depreciation schedules from your other properties or you draw it as your sole income?
 
Hi, in response to a few questions re my post, Rick Otton's course is excellent but you should really take some action if you want to make money from it. I haven't taken any yet but do eventuallt intend to try it. I originally did the course to learn a couple of specific techniques (which I intend to put my own spin on) but as I haven't bought anything since then I haven't used it...having said that, I'm still very glad I went and I deducted the cost of the course through my business.
The way that Rick uses options is similar to the way developers use options to acquire sites, in my experience. I used to be a planner at the City of Sydney and generally no one bought sites outright, they optioned them for 6 to 12 months and made the sale subject to a development approval...Ricks course just added to my experience with options.

In response to the question "is it legal"? yes, why not, you can take an interest in land, assign that interest and collect a fee for it..it's all in the wording "your name" or nominee" allows you to assign your 'equitable interest' to a third party...totally legal and Rick Ottan has a lawyer who specialises in preparing contracts for all variations of this sort of thing.

I hope that helps. Please feel free to ask me further ???.

Keen to find out who that lawyer is. I'm in melb. had a quick look on the website. however - i think it is kind of hard to find vendors who would want to do this. especially with this kind of market
 
how do you cope about the CG on those sale? I suppose you would have lots of depreciation schedules from your other properties or you draw it as your sole income?

I pay the CGT :eek:. It is in addition to JOB, so even after tax, still not a bad side income.
 
No problem buying properties and reselling, depends what ones goals are. I am still a strong beliver of having stong base portfolio before one gets into the business of buying/selling as an investment stratergy.

Sure earning $40k a deal is nice but having a solid base porftfolio is far more important in longrun. After you foundation portfolio is set up, property transactions are ***** and giggles, doing 4 x $40k's pa = $160k pa. pretty good cashflow for ones income.
 
Nathan, you're assuming one already has a job, in order to have the cashflow to build the portfolio in the first place. Instead of a job, I'd like to buy/sell for cashflow in order to build the portfolio of holds.
 
I have found it is about the mix. Sure when you sell you lose future capital gains, but it does provide nice cash flow to support holding costs of other property (and a small amount of cream for lifestyle :D).

I look back on some that I have sold say 5 years ago that have more than doubled since, but I made the profit at the time and have since turned that capital over several time since and has enabled me to keep buying other property to keep for the longer term.

So if you do even 1 or 2 buy,reno,sell a year in addition to holding other IP's, and make even just $15-20k after costs on each, it is a nice bonus. How many hours do you have to work in your JOB for that?

Well said Mike,

I agree with you here.

I think the skill is to keep purchasing buy and holds while scouting for other 'flippers' to relieve cashflow position and use for additional PI. (and other goodies if need be)

You could even increase your 'strength' of existing buy and holds by injecting money to reduce LVR's on IP's.


Cheers,

F
 
I pay the CGT :eek:. It is in addition to JOB, so even after tax, still not a bad side income.

have you actually flipped you don't pay cgt we have flipped many properties and bought and held others always around 10% up to 20% once you have done more then 4 theres a few around ss who flip and have had the same results I prefer H&L becuase all you do is get the land sign a build contract

take it to an RE agent with a pretty pic of the finished product floorplans etc

use a projected profit loan like any other business

has done well for us

with that being said I haven't done one in recent times...
 
Hi

We build our protfolio via a mixture of Trading and Investing. People who work with listed shares are usually divided into Traders and Investors. Traders treat the shares as trading stock and buy and sell this trading stock relatively quickly, to make their cash flow. Investors tend to hold the stock for the long term, looking for medium to long term capital appreciation.

We do the same with real estate. Some of the properties we acquire we regard as trading stock and some we regard as long term investments.

On the Trading side of the ledger, because we are basically lazy, renos weren't for us. Instead we jumped into the residential real estate Vendor Finance industry. Over the last seven years this has been a great cash flow business.

On the Investment side of the ledger, we've been able to build our Investment portfolio, in major metropolitan areas because the Trading business is able to subsidise this portfolio.

Trading or Investing, it's your choice but remember, it's the equity you own in real estate that really builds your wealth. Trading is fun but Investing is our ultimate focus.

Cheers, Paul
 
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