Well, it kicked my back side - up, down and all around - seriously considering legal action for assault charges
I think I've worked out why you have been so successful in such a short period of time. You were responding to my post at 2.40am. So I gather you are an android that does not require sleep?
Yeah Bon Jovi were onto it in the 80's " i'll sleep when I'm dead"
Do you use a business structure (not necessarily a company)? or as an individual?
With the credit policy tightening, it may be a bit difficult to load up properties on low doc, but I will definitely investigate. Thanks.
Individual name, it was just easier that way
I have 4 lenders for my 6 properties in order to minimize my LMI. (The major financial providers only use 2-3 major underwriters, which makes it difficult to fully diversify the cost of LMI). But having multiple lenders limits my ability to pool my LOC. How do you manage to have 10 diff lenders and still run your properties through the same LOC. (I guess that's more of a question for a mortgage broker)
Basically I get second loans against the properties and place the surplus funds into the one LOC which runs nearly all my properties, the second loans are fully drawn and just become another repayment each month.
Certainly don't mind risk-free money investments
Yep I will put that in the prospectus "risk-free" quoting KennyJaiz next page a picture of a bloke on a big boat on a deckchair with a hot chick in bikini on either side and on the other page a guy teeing off on a oceanfront golf course, they will be queuing up to invest.
I used a mortgage broker for the first 2 properties, but haven't since. Unfortunately I haven't been able to find a competent one that I can trust. I have a tax accounting and financial planning background (It was short-lived and I no longer practice in those fields). While they may be well-intentioned, I have found that mortgage broker are only too keen to give financial advice. And the mortgage brokers I have experienced so far, lacks the attention to detail I require (besides the rate, the lender, the LMI, the functions/features, I need them to be aware of the exit fee, on-going maintenance fee, the ability port the loan to another property and advise accordingly, etc). I have managed to out-do a mortgage broker for all of the remaining properties, but I agree with you. I need to find a competent mortgage broker who knows their stuff and assist me through my challenges. Do you have any mortgage broker you would recommend in Melbourne?
Long term u need one as an outsider very hard to keep up with the ins and outs, policy changes etc and of course the little tricks that get picked up, my broker is a gun but he doesn't take new clients at this stage, I am sure some people on this forum could recommend a good one. PTBear and Rolf and others seem to know their stuff very well from my readings here but I have never met them and don't know who they are so current clients probably best to advise on that.
I tend to agree with you with regards to cash flow positive properties. It will have negligible impact but limits the capital growth component. But I do think it is well suited to investors starting out with limited budget and income.
Are you working on Properties full time these days? Or do you still have another full time job on top of your property investments?
I work full time, i don't really spend much time on my properties, my bookeeper in my business manages my properties for me as part of her job, she has full authority to deal with the agents and make decisions, i just don't want to know or be bothered with any of that stuff. She is 27 and has 6 Ip's of her own and I trust her completely. She has access to my bank accounts and she pays all the rates, body corp etc so I can do as little as possible
Yes, I think I've missed the opportunity in Melbourne and Sydney already. Brisbane is probably a good idea. Where would you recommend? (I will of course do my own due diligence). I tend to look at houses with high land content (>600 sqm) within 15km of the CBD and high capital growth in the short term (rental is secondary). Budget is under 400K. My existing brisbane property is in Zillmere (north).
Can't go wrong with that criteria, I also like old units in Brissy but if that is not your thing stick with the houses.
Thanks BT. I have been lucky. Most of my properties are in Melbourne within 15km of the CBD and they have demonstrated extra-ordinary growth in the past 12 months. While I do not count on this continuing, as you said - it is sweet. I hope to maximise my opportunities and be a little bit more agressive.
Someone had a go at me about saying i was lucky so I will do same with you, you made informed decisions and acted on them, in effect made your own luck so well done.
One thing I can't agree with is the low doc loan comments, if i didn't go low doc i would have no investment properties so to say over the long term it is hard to make money doesn't wash with me. They have been a god send to me. If an investment property is not a good investment based on a 1%-2% rate differential then it is not a good investment in the first place. By that logic a property bought a year ago on a rate of 5.5% is now not a good investment because rates are now 6.5%, i would have been happy to be paying 25% interest rate to buy half of Melb 18 months ago and could refinance them all over to low doc 60%'s now at normal rates, it is a deal by deal decision and the cost of money is just one factor to consider in the big picture. If your cost is a bit higher than someone else's you just make up the ground in another area and there are plenty of ways to do that.
Again, thanks for your invaluable wisdom and generosity.
Pleasure
K.
