grossreal said:hi markpatric
couple of things i'm not selling anything and my structure is set up for this system and unlike know nobody told me how to set it up it just evolved.
by pegging rentals above cpi the the redraw should be available and by mixing resi with comm you can draw as you wish.
I currently don't as I have developments but could live off this system now except I have a time line that I'm keeping to and using this equity for my developments.
compounding growth you use prior to starting to draw down so you land bank your investments and leverage off them to the next investment.
If you are developing you draw a loan or line of credit against the value that the rent will cover and use this cash for the next investment and if you get a group of like minded people and you pool your available cash then you have a developing group.
(The bottom line is though that you need a lot of equity to begin even thinking about this strategy) not sure about this you can start this strategy with the first investment you just must set it up correct from the start. I have posted gross and his system.
To start in that system can be minimul and any body can do it.
Ok Grossreal, then so to begin with you are not living off equity, you are using the equity to leverage into more property, it is one thing to say you can and another to do it over a period of time without going backwards, and without working is the real issue, if you work and earn an income from that you are not living off equity full stop, most if not all investors including myself live off equity to some extent but that is no mystery.
Also imo over the next 2 years will come the crunch, yes I lived off equity for a year or more but it`s been a dream run.
Things are going well for you that`s good but we are still at the tail end of a extremely good run in R/E.
You are not there till your "there" but all I`m saying is in my experience it`s not a worthwhile aim to have imo, but of course the few at the top could easily make it work over a long period of time but certainly without some kind of effort there fortune would slowly slip away, everyone who gets anywhere and stays ahead of the game must work in some capacity.