From $0 to $5.6 Million in 4 years

[Piston Broke]

Tall Poppy lumberjacks with nothing valuable to add are also allowed I think
(I'll shutup now too)

Investing is about numbers & planning, not emotional BS. Quyen states it also in the interview.
I've always posted there's plenty to achieve and opportunities abound
and well done to anybody that gets off their butt and does it.
But you get to a point when the interest bill is so big that leaves very little wiggle room.
Any unexpected expense can have long term repercussions for the portfolio.

I see your point, but I'd rather have a $5.6. portfolio and a 90% LVR than a $2m portfolio with a 60% LVR.

But there are ways to make that 1.2m (60% lvr) pay for the portfolio and itself quickly leaving 5mil of assets at very low lvr and an income for life instead of spending your life working for income of the bank.
That's why they can afford high wages Rob, cause people spend their life working for your bank and not themselves.

 

[jaycee]

Investing is about numbers & planning, not emotional BS.

Yes just my attempt at sarcasm, what did you think I meant ?

 

[Piston Broke]

Just what I read:
"Tall Poppy lumberjacks with nothing valuable to add"
And I've seen a few of them go bankrupt. Them and all their BS in the financial press.
Some are spoken about, others faded away, others are back in the financial press as "experts".
There is something called "downside risk", not many know about it until it happens.
And many were bailed out by Commy Kev, yet the risk is still there.
That's just how the market works. Just like a rental reality there is also a market reality.

ps I don't get offended by anything anyone may post on this forum.

 

[our obsession]

Hi guys,

Thanks Redwing for posting this article online. I guess you wanted to generate a bit of discussion about myself right?

One thing I have come to accept is no matter what humans do. Whether they are successful or not, there will always be others out there that want to dissect every piece of information possible to understand the "how's" and the "why's"..... It's just a fact of life.

Nothing I have done as per the article was through magic. My salary when I first got married was around $37k and yes, it made it alot easier because my wife worked as well. But I know of people who are on one income of around $70k who have been able to accummulate numerous properties.

People are right when they say well, he's got $5.6 million worth of property, but what are his debts? They are around $4 million, but one thing I'm comfortable with is the fact that say in 10 years time, my debt will still be $4 million, but I'm pretty optimistic that the total worth of the portfolio will be more than $5.6 million. So is it worth doing all of this. From my point of view heck yeah!

I don't let any of this get to my head and all of this has come about through perseverance and hard work. I've attended so many seminars, spoken to so many people and have read so much all so I could educate myself on the ins and outs of property investing.

Anyway, I don't want to see some sort of drawn out debate on this and if you like to have some context around this, then it's simple. We came to Australia as boat refugees. My folks were ordinary hard working people. I was your usual Aussie teenager wanting to have a good time and thinking about my financial future.

Yes, it may have been a bit easier to obtain finance back then compared to now, but you still had to obtain the finance in the first place. And yes, some will some I'm lucky (and that I won't deny). But I always say, you make and create your own luck. There will always be negative and positive people out there. I for one am positive. I look at the good and try to work on that, whilst others try to list the bad and dwell on them forever.

I always say to people the biggest risk in life is if you don't take any risks. For me, investing in property is just like investing in shares, buying art, collecting coins etc..... At the end of the day you have to feel comfortable with yourself on the journey you're taking. If not, then take a step back and say to yourself what are you living for??? For me, FAMILY is and always will be No. 1. Everything else pales into insignificance if you don't have family.

Take it easy and hope you all enjoy the rest of your long weekend.

Quyen

An incredible effort!

Quyen, welcome to the forum, thankyou for dropping in...love your investing work, congratulations to you and the family. Very, very happy for you.

Fantastic work and story there.

 

[jaycee]

Ok you've confused the hell out of me mate.

 

[Fudge]

yes I think others have realised this also, I think it was pretty clear.

What are you pointing out ? Is a $5.6m portfolio of assetts collected over less than 5 years not an acheivement ? Do you think the reasers here had fallen for thinking it was more than it was ?

Gees,

I think $4M in debts is a bit of an achievement!! By getting that much debt from the banks is great!. I might have to by the magazine (I subscribe to the other one).

If QuyenAn2002 doesn't mention it in the magazine, maybe they can discuss it here. What assets did you have? What structures did you buy in? What incomes were you on? (From your initial post, I see you were on initially a fairly modest income, but don't know what you were on in your aquisition stage?

I want to get heaps of 'good' debt, cause then I will have more assets for "time in the market' to work.

Cheers,

F

 

[jaycee]

sorry fudge, that post was as clear as mud

bayview came on and blurted out "I'd be interested to knwo what lvr he is on" as he's not impressed by big numbers in the assett column, only by low debtand good cashflow

I think acheiving $5.6m of assetts in 4 years is bloody great and mutiples what I've done in a longer time frame, it struck me as odd that skater & bayview would straight away take a negative stab at it with their posts questioning what's the lvr, what I menat by my question to bayview was, why ? is $5.6m assetts in 4yrs not an acheviement worthy of mentioning here as an acheivement or b) did you just point out the lvr question, not to be negative, but rather to let the rest of readers know that when you hear someone has $5.6m assets, it doesn't mean they don't have any debt ?

 

[wobbycarly]

As JIT mentioned earlier, I think context is extremely important. eg, didn't the winner of the YIP investor of the year start with a huge(?) CIP out of which her business was run?

That puts a slightly different perspective on things than a guy who works 2 part time jobs, buys a crummy place, does it up and goes on to "bigger and better".

Not that one's better than the other, but the context helps others understand the base from which that particular investor has built.

 

[DanielG]

Guys, big picture here...Does it really matter what the lvr currently is and what the household income is?? I think not. Its what the investor's done for their financial future.

Ummmm...if you can't make the interest repayments how do you retain your property portfolio?

It's fine to look at the big picture...but not at the expense of the small details. You can not get to the "big picture" without mapping out how to get there...which means you need to know the fine detail.

 

[jaycee]

true daniel, that's why you should never invest. its too risky mate, interest rates are going up, prices are crashng, dont you kw ther's a r GFC going on ?

it's hard to admit aht someone may have done well, no, it's hard to admit someone amay have done better than us.

It's almost like some people are HOPING that the person crashes.



gees, the same thinking applies to $400k debt - if you cant meet the interest payments you're stuffed... lets say that every single time we hear someone say "I just bought my first IP"

 

[Rixter]

Ummmm...if you can't make the interest repayments how do you retain your property portfolio?

If you cant meet the banks serviceability the bank doesnt give you the loan. If things go pear shape later and payments cant be made then the bank forecloses. I must be missing something here -Quyen's not in this situation so what's your point?

 

[redwing]

Haven't read it, but it all sounds very amazing.

My guess - a portfolio worth 5.6mill, but how much debt attached?

Large numbers on the asset column don't impress me; but large numbers on the equity and cashflow columns do.

5.6 M is a pretty great accomplishment in that time frame, especially with Quyen's additional comments. I'm a big believer in the size of the asset when you throw compounding into the mix

10% return on $1,000,000 = $100,000.oo

Whereas

100% return on $100,000 = $100,000.oo

Great to see someone doing well in any endeavour whether it be property, shares, business or enjoying their lot in life; welcome to the forum Quyen, hope you continue to visit

“Circumstance does not make the man; it reveals him to himself”
James Allen

 

[Dazz]

I don't want to see some sort of drawn out debate on this

Unfortunately Quyen, there's not much else to do on the good ship SS.

 

[Rixter]

Unfortunately Quyen, there's not much else to do on the good ship SS.

you mean good ship SS lollypop.

 

[Nathan]

Nah cant be true....

J/ks

This may be exaggerated, however its like saying a guy who owns a ferrari, oh but his ferrari is on a loan, but doesnt matter if ferrari is on a loan or not even if it is, they must still be loaded to afford the repayments...

I havent read all of this, but would be interested as to the fuller story, as in income, situation, where deposits come from, how accumulated, how met banks lendng criterias, how much cap growth, cashflow etc...

 

[wobbycarly]

Nathan, aren't we all interested?!

I'll get API when I get home from OS, so will read up then!

 

[wobbycarly]

Ooops, it's YIP...

 

[willair]

When you look at the reality aspect of what this person has done over that period then he has done well,he would know full well what the all
monies clause means in any of the "Banks"contracts too take on this balancing act..willair..

 

[Intrinsic_Value]

I was just curious that's all, as I haven't read the article.

What if you were on $1M pa in your JOB (an achievement in itself) and inherited $2.5M cash, and then bought a PPOR for $5.6M at ~50% LVR... (and this is without looking at the age of the individual/s involved).

The details just put things into some sort of perspective, that's all.

Not to belittle anyone's achievements in anyway.

If you are to gain anything useful from these sensationalist titled articles it's useful to ask how the person did it, what the context was, and what resources they had in this context to make things happen.

It might have all been in the article, but I'm just asking (as others are) what the context was, as I haven't read the article.

I'm sure there was much to learn from it, for those who read it, rather than just say WOW that's a great achievement, you deserve a pat on the back...

Spot on JIT, glad someone is thinking in a critical manner.

 

[Intrinsic_Value]

I see your point, but I'd rather have a $5.6. portfolio and a 90% LVR than a $2m portfolio with a 60% LVR.

The game I play involves controlling the assets, not owning them. Let the bank own them. By controlling them, I get to keep all the future CG.

Of course, those who play the cash flow game see it differently.

We are al going to the same place, just talking different paths.

Rob can i ask you a question over this.

Does that mean that the debt is non recourse against the other properties.
When you said that the bank owns them, if something goes wrong, and negative equity occurs, can you limit that negative equity to become the banks problem.