LOE here we come

weel done Daz

The sheer magnitude of your portfolio, CF and growth is very inspiring and dwarfs mine by a country mile !

Its very generous of you to share the details and provide an opportunity for others to raise the bar and aim higher.

I certainly will.

Thanks again for sharing

Harris
 
Thanks Harris. Your kind words are humbling to me. Good luck with your operations....I hope you got something out of the post.
 
Very late in, but congrats Daz! Sounds like a fantastic plan, and surprisingly low risk by your calcs. Still looking forward to getting into commercial one day.
 
asset lend ,80%, no LMI ...

If you google on "asset lend 80" , that will take you to elders home loans (for example) who have an asset lend , 80% LVR product with no LMI. But it does not state the rate (int. only variable) hmmm ... and it has fees ...and the exit fees, within first 5 years, are 3%. So for a million bucks the exit fees would be $30K.

No free lunch me thinks ??

LL
 
Congrat's Dazz.

Well done Dazz. You set a hot pace and a fine example for us all.

Just some house-keeping questions on your LOE exercise if you don't mind ... when you "do the numbers" and you remove your salary from the total income cash-flow ...is the new nett income "negative" or "positive" and by what % of your total IP portfolio ? ...or is that the 0.25% CG growth number that you have outlined?? Hope I've explained that correctly. Sorry if I have not.

Thankyou,
LL
 
G'day LL,

I don't really want to go any further into the fin. details....the wife would have a pink fit knowing that half of Oz knows our retirement plan.

Suffice to say, the portfolio only needs to grow very modestly for it to equal the amount of money we desire to spend every year when I am no longer employed in a job.

.....anyway, you are quite a few years further down the track from myself (I think I'm the same age as your children), with significantly more properties under your belt.....so no doubt you have quite a bit to contribute to this subject yourself....no doubt we shall hear from yourself in due course.
 
Dont be bashful Daz. ;)

Dazzling said:
G'day LL,

I don't really want to go any further into the fin. details....the wife would have a pink fit knowing that half of Oz knows our retirement plan.

Suffice to say, the portfolio only needs to grow very modestly for it to equal the amount of money we desire to spend every year when I am no longer employed in a job.

.....anyway, you are quite a few years further down the track from myself (I think I'm the same age as your children), with significantly more properties under your belt.....so no doubt you have quite a bit to contribute to this subject yourself....no doubt we shall hear from yourself in due course.
Click to expand...
 
Well it's only taken 4 months since I started this post, but today is the day the MB is popping around to havachat and hopefully, instigate the paperwork to square away a LOC or whatever they want to call it - money by any other name - to live off.

This job is starting to wind me up, as I find either I cannot devote the amount of time I need to extract the best value out of the portfolio.

If someone was running a business with the same scope, they'd be working on it full time, with probably 20 or 30 employees helping them. I'm fortunate by design that the property business is fairly passive, but sneaking a few hours here and there during business hours whilst pretending to be interested in your paid work for someone else, and a few hours in the morning / at night / on the weekend just isn't cutting the mustard anymore.

So, it's LOC / LOE time for us and I'll concentrate on managing my business full time I reckon. Should have this process flanged up within a few months all going well....we'll see.
 
Hi Dazz .. from one of your earlier posts .." Come on in .. the water's fine":D. In fact, we've just today signed all the re-financing paperwork with one of our lenders. Went great. Val's all come in OK. LOC's increased. We're "flushed" and ready to play. Hope the cruze went well ;).
LL
 
landlubber said:
Hi Dazz .. from one of your earlier posts .." Come on in .. the water's fine":D. In fact, we've just today signed all the re-financing paperwork with one of our lenders. Went great. Val's all come in OK. LOC's increased. We're "flushed" and ready to play. Hope the cruze went well ;).
LL
Click to expand...

I'm in the same position as you landlubber....but still waiting on LMI to come through. I hate the waiting game! But then it will be all shopping (actually went shopping yesterday and bought a couple more blocks :p)
 
Awesome work, Dazz. I wonder if the cruise has increased the urgency of your desire to stop pretending you're interested in your job? Whatever the reason, good on you, and hope we see you dropping over to QLD more often. :D
 
Most definitely - going on a good holiday certainly put quite a few things into perspective.

Missing out on netball training with the girls, missing out on school assemblies and missing out on tutoring with their maths homework.....all of that stuff also puts things into perspective.

The last thing I want is for my children to turn around when they are in their 20's like so many do nowadays and say "Yeah, never saw much of Dad when we were growing up, he was a good provider and we had lots of stuff, but he was never there and missed so much. He keeled over with a stroke / heart attack way too young and all of that money he gathered just seemed to disappear."
 
Dazzling said:
Well it's only taken 4 months since I started this post, but today is the day the MB is popping around to havachat and hopefully, instigate the paperwork to square away a LOC or whatever they want to call it - money by any other name - to live off.

This job is starting to wind me up, as I find either I cannot devote the amount of time I need to extract the best value out of the portfolio.

If someone was running a business with the same scope, they'd be working on it full time, with probably 20 or 30 employees helping them. I'm fortunate by design that the property business is fairly passive, but sneaking a few hours here and there during business hours whilst pretending to be interested in your paid work for someone else, and a few hours in the morning / at night / on the weekend just isn't cutting the mustard anymore.

So, it's LOC / LOE time for us and I'll concentrate on managing my business full time I reckon. Should have this process flanged up within a few months all going well....we'll see.
Click to expand...

giddyup! remind me to corner you for a good few hours if ever we meet.
 
Goodonya, Dazz!! I reckon being CEO of a property business would be a welcome change from the rigs! And don't forget to get cracking on that book you've been promising us!

Hope you and Mrs Dazz had a wonderful time on your cruise!!!

Cheers
LynnH
 
Dazzling said:
The houses have literally been a fantastic stepping stone onto bigger and better things, but have relegated themselves to be a cashflow millstone around our necks. As I mentioned in a previous post, our longest held ressy prop just finally ticked over to be +CF by $ 13 p.w. before tax....after 10 years of propping it up. The others are grossly negative and frankly I can't see them ever paying their way.

For example, one of our costs $ 1,700 per week to own....and rents for $ 400 p.w. As you can appreciate, it's gonna be a while before it's off my back. When do you think someone will pay me $ 1,700 per week to live in an old 1950's 3 bed house ??? Hmmm.
Click to expand...
Daz,

You're an inspiration mate! And I love this post above best of all. It reinforces the point that you'll never learn if you never start. You started out like the bulk of us did with resi IPs that are largely still NG'd, but you learnt and learnt and then went Commercial, and then got "lucky"! ;)

Funny how all that experience, perserverence, blood/sweat/tears can be coined good luck isn't it.

Well done mate. I'm still bogged down in resi IP development with slim margins in a flat/fearful market. I just hope that the experience this gives me will lend itself to bigger and better "luck" with my future investments. I've learnt bucket-loads already so am pretty sure it will.

I'm a long way off LOE, but my goals are the same as yours. Passive income sufficient to spend more time with my family. Just got to find the right path to that end state.

Thanks for sharing!

Cheers,
Michael.
 
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