There's some great feedback there, thank you all for that.
Cheers Dean, I hope you get something out of it to apply to your situation.
Hiya Redwing - yes Joe just lives around the corner from me and has apparently been LOE for the past year or so.....although he did say he went back onto contract work cos of the cashflow....so I'd definitely like to speak to him some more on this subject.
Happy days indeed...as long as the Bank wants to play ball....
But then - why wouldn't they ??
Absolutely GeoffW and thanks for highlighting the risks....cos they can be substantial. The risks can come in many forms, and nothing is smooth sailing at the start of an acquisition. Cashflow hiccups, people lying to you, tenants refusing to pay rent, malicious damage with big equipment, shrewd business operators who have been around the block a few times, neighbours stealing stuff after hours when no-one is there, hot and dirty work, higher interest rates, confusing finance set ups, border disputes, councils wanting to change zonings on you, big upfront chunks of cash spent on stuff you hadn't dreamt of, over zealous ladies in charge of business expenses who constantly have their residential hat on and refuse to read the Lease documents and start every sentence with "I believe", partners getting scared, bugger all people to ask for help, no family members ever owning similar things to use as a sounding board, tenants going into liquidation and slimy directors hiding behind corporations - just like we are taught to do by our soliciotrs and accountants......the list goes on and on......it's not easy and it's not cookie cutter repetition.
JIT - yes agreed - the lower that figure is, the more confident you can be going into the LOE arrangement.....I wonder what the Banks would be comfortable with ??
Patosan - nothing fancy as yet, just a pencil and calculator at this stage....we have enough fat in the system to not have to polish the numbers too much. Had a squizz at James GG's XLS, looked OK but I'd like to modify it a bit for our personal circumstances. I find adjusting for the changing appreciation rate every year and guessing what that is to be the hardest thing to predict. Chuck in a good 20% year and everything is happy days. Have a few -3% and -5% years and things could get ugly quickly.
Aaron - quite looking forward to be bored for a while. My task over the next few years is to learn how to have fun and pick up a few hobbies. I'm keen to do a manual arts course and get my practical skills up to snuff. So far I can drive a broom, rake and chainsaw very well. I'd very much like to learn how to weld, lay bricks, work with wood and get my confidence levels up more with all of the handyman stuff.
Travel is also right up there on the agenda. The wife and I have booked a holiday over to Qld in April, and we paid the deposit this morning on a cruise leaving Fremantle in May. Never done that before, but keen to try it out. Rewarding ourselves is starting to come up on the agenda now that we can afford to spend a bit without affecting anything.
I remember reading Qld007 'retired at 38' and then went back to work after being bored on the golf course.....so who knows.....but I may give digging holes in the ground a miss as a job next time around.
