Getting Started

[WebBoard]

From: Mike .


To cook an elephant,
From: Curious Onlooker
Date: 17 Oct 2000
Time: 22:17:38

first catch and kill your elephant ...

Sorry, but from this beginner's viewpoint that's how it seems, with a bewildering plethora of opinions and options, but,

Is there anywhere at all that offers the simple pro's and con's of alternative?

i.e. Person A, B, C etc etc

A - negative only B - positive only C - no cash deposit off the plan (ala HK) D - loans? Eeeeeeeeeasy to get .. E - DHA homes are good F - nope, forget DHA homes ..

Curious Onlooker but, but... Positive/negative? Both seem to have merits .. No cash, ok, but how does it really work in practice Loans! But what are all the things to check for to avoid being screwed? DHA? But but yes/no .. sigh ...

I've spent countless hours reading WWW sites and magazines, but the assortment and variety of ideas and strategies is equally daunting in offering clear direction.

Please, somebody, where is the idiots guide? How do I find a real-life mentor/guide, or at least the idiot's guide they wrote??

Curious Onlooker (daily more confused..)

 

[WebBoard]

Owen

Reply: 1
From: Mike .


Re: Try
From: Owen
Date: 18 Oct 2000
Time: 10:12:00

Hi CO,

Sounds like you have a early form of "analysis paralysis". Too much information spoiling your elephant broth.

First thing you need to do is get person <A> through <F> off the safari bus for a while and sit down with person <X> - YOU. You have decide in you own mind what it is you want to achieve out of property investing. Actually write down some specific goals and attach some time frames to them. This is hard and will change over time but do your best and try to be realistic - nothing better than an unachievable goal to make you give up on the whole thing.

Once you have done that the second thing is to chose a primary method you are going to use to achieve these goals. Different goals in different stages in you plan will require different strategies to achieve them. All the ideas you have been reading about are just tools to use when investing in property. Don't use a hammer when you can use a drill.

For example, initially your plan may be to keep working, increase your portfolio base and grow equity. This means off the plan, negatively geared IP's may be the best solution. 5-10 years later your goal may be to have enough passive income to stop work so you sell off some of those IP's, pay down others so they are positive and quit work - Yay financially free. Next goal is true wealth so you continue investing with maybe a few flips or wraps to increase your cashflow and with your portfolio wealth you can do much bigger deals with much bigger returns.

Your comment on none of the ideas and strategies showing a clear direction is correct. That's because the direction is decided by you.

Hope this helps more than confuses.

Owen

 

[WebBoard]

Curious Onlooker

Reply: 1.1
From: Mike .


Thanks Own - [Re: Try]
From: Curious Onlooker
Date: 18 Oct 2000
Time: 18:00:06

Thanks for taking the time to reply Owen .. I certainly appreciate you taking the time.

Yes, I see your viewpoint, and, hadn't viewed the different techniques from the perspective of differing time-frames and desires.

I spent a countless amount of time learning about share trading, to where I have my criteria to match before parting with hard-earned $'s, and am satisfied with the results, even with the recent turbulent ride ..

Now I see I have to do the same for IP's ..

Thank you again ..

Curious Onlooker (reading up on elephant hunting now ..)

 

[WebBoard]

Les

Reply: 1.1.1
From: Mike .


Re: To cook an elephant,
From: Les
Date: 18 Oct 2000
Time: 21:20:17

G'day Curious,

(My, that's a curious name ;^)

I think you said it yourself - "Sorry, but from this beginner's viewpoint that's how it seems, with a bewildering plethora of opinions and options, but, ...."

This (to me) is one of the charms of Real Estate investing - it can be many things to many people. It provides the "foundation" for many a portfolio, and is flexible enough to suit a huge percentage of the population.

Owen has provided a complete answer - i.e. you choose what YOU require for YOUR situation. You will continue to hear pro's and con's for positive and negative gearing - the MAIN question is "What suits YOU at this time in your life?" and it helps to consider "What WILL suit you into the future?"

Negative gearing CAN help if you are a high income earner, and the buy is in an area of sound growth. Positive gearing can help ANYWHERE!! but it requires a different mindset. As far as "is there an Idiot's Guide to RE investing?" - I haven't come across one - but several good books are around that cover what you need to know.

In my experience, this forum is a darned good start - there are a bunch of helpful people here with varying levels of experience, and many are willing to "help out" - so continue to post as different questions come up.

If you haven't found it yet, do check the FAQ questions link found on the Somersoft home page and have a good read through. It will possibly answer a few questions before you even need to ask them.

Good hunting ;^)

Regards, Les

 

[WebBoard]

Curious Onlooker

Reply: 1.1.1.1
From: Mike .


Thank you, and .... - [Re: To cook an elephant,]
From: Curious Onlooker
Date: 18 Oct 2000
Time: 21:58:01

Could you post your personal book recommendations? e.g., JS's "Building Wealth .." is great, cuts straight to the chase .. any others like it around?

I like this forum very much, and have waded through many many postings/threads trying to gleam an insight from people such as yourself and Owen.

Thank you again ..

Curious Onlooker (about to start reading the 50+ pages just printed)

 

[WebBoard]

Les

Reply: 1.1.1.1.1
From: Mike .


Re: Thank you, and .... - [Re: To cook an elephant,]
From: Les
Date: 18 Oct 2000
Time: 23:14:21

You might have to be the one to write such a book, Curious. You are right to say that A disagrees with B, and C disagrees with D, etc. Everything is relative to where a person is at.

A phrase I often reflect on is this - "If two people always agree, only one brain is working". It explains why couples have so much hassle from time to time. It also explains why A says Positive Gearing is best, and B disagrees.

I don't know of any "dummy's guide" that explains the pro's and con's of all of your questions. But there are a number of good books "out there" that can provide you with a wealth of information - cheaply, if you have a library card ;^)

You've read Jan's "Building Wealth" book - also, do read her "BW - Story by Story" book - it's also a classic in my opinion.

Others I have found beneficial are:-

Rich Dad, Poor Dad - Robert Kiyosaki

Richest Man in Babylon - George Clason

Buying Investment Property with other peoples money - Alan Falkson (it had two names - the other one was like "buying IP without blowing the budget" or something like that). It's proper name is in the Archived forum - I don't have the book (got it from the library), but if someone wants to SELL one, I'm a buyer !!!

How to Build Riches - Bruce Davis

Some of these have NOTHING to do with your questions, but give insights into yourself and where you want to go - they could help.

Regards, Les

 

[WebBoard]

Curious Onlooker

Reply: 1.1.1.1.1.1
From: Mike .


On the trail of elephant ...
From: Curious Onlooker
Date: 20 Oct 2000
Time: 20:52:35

Thanks Les,

I already have Rich Dad/Poor Dad, and have just ordered the following:

The Ten Golden Rules of Property Investing The Wealth Power of Property Successful Property Investment How To Build Riches

I also have Og Mandino's "The Greatest Secret .."

Cheers, Curious Onlooker