No money, no income, how do I get started in Real Estate?

[Captain_Picard]

Ive read two of Jan Somer's books, every book that Robert Kiyosaki has written, and I am ready to go. The only hitch is that I have no money and no real income. If possible, I would like to "bird dog" for investors, ie, find deals for them for a fee, as I know the Brisbane market fairly well (which is where I live). Where can I find investors to bird dog for? Also, how can I finance property with no money down? (I usually look for cheap apartments or townhouses with a positive cash flow, so they will pay for themselves.) All I have is the theory in real estate, but no practical experience. Could someone please point me in the right direction?

Thanks.

Captain_Picard

 

[Easymonet]

I reckon the first step would be through the door of Centrelink to get a job, Captain.

 

[asy]

Originally posted by Captain_Picard

If possible, I would like to "bird dog" for investors, ie, find deals for them for a fee, as I know the Brisbane market fairly well (which is where I live). Where can I find investors to bird dog for?

Sorry Jean-luc,

The excersise you call bird-dogging, is also known as acting as a buyers agent. You must be a licensed agent (Or acting under the authority of a licensed agent) to do this, otherwise you are doing it illegally.

You run the risk of HUGE fines, and lots of trouble.

Best idea would be to go and get your agents reps license and then go and talk to an agent and see if you can run under their umbrella.

If you are serious about working in real estate email me and I might be able to give you some pointers about how to get your reps license.

hope this helps,

asy

 

[Captain_Picard]

Ok, thats fair enough. So on to the second part of my question - where would I find mortgage brokers that offer no money down deals? The danger I guess would be the higher interest rate - it would mean the property would no longer be positive cash flow. They are rare, but I find one or two good ones per week.

also:


Would a mortgage lender give me a mortgage based on the rental income alone, assuming the rental more than covers all expenses?

Thanks.

Daniel.

 

[Kevin Hockey]

Hi Daniel,

Lenders normally loan against around 60% of the rental amount. They also need proof of ability to service the loan for out of pocket expenses, legal fees, loan fees, repairs, vacancies etc. You will need a job and if you work for yourself or on commission based employment they will want proof of earnings for 2 years.

In short, lenders won't loan on rent alone.

Hope this helps.

If you want any further finance advice you can talk to Jeff in my finance division at Nundah First National Home Loans on 0415 947 003.

Kev

www.nundahrealestate.com.au

 

[superman]

Originally posted by Captain_Picard
... The danger I guess would be the higher interest rate - it would mean the property would no longer be positive cash flow. They are rare, but I find one or two good ones per week.

Aren't all properties in QLD positively geared (let alone positive cash flow)?

 

[Jamie]

Originally posted by Captain_Picard



Ive read two of Jan Somer's books, every book that Robert Kiyosaki has written, and I am ready to go. The only hitch is that I have no money and no real income. If possible, I would like to "bird dog" for investors, ie, find deals for them for a fee, as I know the Brisbane market fairly well (which is where I live). Where can I find investors to bird dog for? Also, how can I finance property with no money down? (I usually look for cheap apartments or townhouses with a positive cash flow, so they will pay for themselves.) All I have is the theory in real estate, but no practical experience. Could someone please point me in the right direction?

Thanks.

Captain_Picard

Hi Capt,

Id start by forgetting most of what Kiyosaki has to say...

Are you unable to get a job for some reason? Id suggest of you are physically willing and able then a job would be the best place to start.

Once you had a job, do you have a friend/sibling/parent with equity in a property? This could be a stepping stone to securing your first property.

Lenders wont give you money based just on the rental - what if the property is vacant for a protracted amount of time? How will you prove to the lender you can service the loan without a steady income?

Just a few thoughts,

Jamie

 

[XBenX]

Originally posted by superman
Aren't all properties in QLD positively geared (let alone positive cash flow)?

all in jest, it seems that way when you can buy 5 qld properties for one sydney one

but that might be making a few too many assumptions

 

[TheBacon]

Cashflow

Hi Captain

I asked the same question about 4 months ago and got shot down in flames too !!!

To get better answers you need to give better info...

Do you have your own home (and equity)?
Do you have cash reserves for deposits etc?
Do you have SOME form of income?
What kind of time can you spend on property?

Back to lenders and loans.....

If you have a job lenders are MUCH more likley to give you money. Make it easier on yourself and get some work, even just to qualify for a loan, then leave...

Yes I know Kiyosaki says this and that about WORK, but in his last book he says you get rich in what you do outside your 9-5 job, not in it. This implies you actually HAVE a 9-5 job.

Again with Kiyosaki.... if you play the game cashflow you will see that it assumes you have a job to start with, i.e. you have some available cashflow that you can put into investing.

There are quick ways and slow ways to get rich, but apart from blind luck there are no easy ways.

Finally,
ask better questions. Find out what type of property you are interested in, research. Then ask away. This is a great forum for property discussion but not always a great place for creative thinking outside of property. Look at other sites also (the forums on Richdad.com or the John Burley site for example).

Dont get put off, keep asking. Someone once said.... "When the student is ready, the teacher will arrive"

TheBacon

 

[Mr. Fabulous]

Mr. Star Trek,
I would tend to agree with Jamie here re: Mr. K. Although RDPD seems to motivate a lot of people to at least think about their finances and realise that hey, they can get rich, too, I have a real problem with the way he makes investing seem like a piece of cake.
If you believe what Kiyosaki writes, then according to him, you can do three no money down deals, option twenty different stocks while signing the contracts on the houses you just got for no money down and sell all your doodads.... then sit down for breakfast.
Also bear in mind that he is writing in relation to the U.S. market, while similar in a lot of ways to Oz, it still has fairly significant differences. For instance, while no money down deals are being done here, they are not nearly as common as in the States. Actually, if you're interested in that sort of stuff, check out http://groups.msn.com/PropertyInvestment there was a discussion revolving around vendor financing on there a few weeks ago. That forum is also an Oz one.
Capt., please don't think I am trying to knock you down or rubbish what you are trying to achieve, in fact I am doing the opposite. I applaud that you are so keen and willing and raring to go, it's always really inspiring to see people like yourself post on the forum, cause people like yourself bring so much positive energy into it, it's really fantastic.
Just one more thing. In my opinion, you should think about sticking to Aussie authors, mate. Why? Cause they are writing about Aussie conditoins and understand our market much better than O.S. authors. Probably the exception here would be Burley's book 'Australia's Money Secrets of the Rich' pretty much because it was written with Australian conditions in mind. A good, basic starters book with lots of good info. about investing and money practices in general.
Another one is called 'Anyone can be a millionaire'(?) I think by Craig Turnbull. Although I haven't read it, a very reputable source told me that it was good. It focuses on positive gearing I believe, so it's right up your alley.
Anyways, good luck with your investing career, I hope the future brings you everything you aim for.

Mark
'no hat, some cattle'

 

[GeeVee]

Anyone Can Be A Millionaire is by Sean O'Reilly.
Great read. He also does the occasional seminar and well worth attending if you get the chance.
Cheers to Mark

 

[Mr. Fabulous]

Gee Vee,
I am aware of his book (haven't read that one either) but I was actually thinking of the one written by Craig Turnbull. I saw Sean speak once. Pretty rough around the edges, but he did have a lot of enthusiasm, and didn't come across as one of those sharks. Maybe cause he's a country bumpkin. Still, I was pretty impressed with what he had been able to manage at the time - quite an achievement.

Mark
'no hat, some cattle'

 

[craigc]

That's it then eh ??? This is what we have evolved into then???

Follow the thread and see it sux.

Lot's of posts 40K + yes ? Sadly little content these days,,,
Bye, bye guys (collective)

Wanted to offer more, but lurked too long and now the activity is very ,,,,,, well you know, not what it was......

craig

 

[Jamie]

Sorry craigc,

Whats your point?

As far as I can see, every post except the last 2 dealt directly with the original question.

That's it then eh ??? This is what we have evolved into then???

Sorry Craig, what have "we" evolved into then?

If your problem is that previous posts have lacked substance... what has yours contributed? If you dont like the content, you know where the door is...

Jamie.

 

[craigc]

Jamie/Others/you know...... thanx.

Look thru my posts, not many, < 60

Who am I ? ......

....a cynic who has read alot of crap via electronic media..

Have fun, invest , enjoy...... with the emphasis on *enjoy*

we all can do it ...... only the pathlength varies.....


really..... I'll wander off soon and sail for a while,,, you can always do it,,,,,, it's the pathlength thing.....

But not everyone likes boats. They have other priorities.

bye all..... craig.

 

[lawsjs]

Craigc,
Who Are you?
A complete Battler!

Captain,
I don't think it would be impossible to start with zero money. Get someone to wrap you - I am sure someone would. I did, worked for me, although I did have _some_ money.

 

[geoffw]

Originally posted by Mark Laszczuk
Gee Vee,
I am aware of his book (haven't read that one either) but I was actually thinking of the one written by Craig Turnbull. I saw Sean speak once. Pretty rough around the edges, but he did have a lot of enthusiasm, and didn't come across as one of those sharks. Maybe cause he's a country bumpkin. Still, I was pretty impressed with what he had been able to manage at the time - quite an achievement.

Mark
'no hat, some cattle'

The book you're referring to is "It's easy to be a property millionare" by Craig Turnbull.

In looking for that book, I've just found that his next book is out- "It's easy to be a property multimillionaire". It looks to cover many questions covered in this forum

Ownership through company and trust structure
Commercial and industrial property ownership
Property development
Lease-option to buy
Wraps
Cashflow techniques
How to begin your journey to financial freedom -FAST

See http://www.propertymillionaire.com.au/cgi-bin/shop/gshop.cgi?product=BOOKS-CRAIG'S&cart_id=7194744.13185

The ezine might also be worth a look- especially for Perth investors- http://www.propertymillionaire.com.au/ezine.php

 

[hobgoblin]

Captain_Picard

If you know exactly what your goal is but are unsure of how to go about achieving it, I suggest you read "Think and Grow Rich" by Napoleon Hill. I am in a similar postion to you - no cash in the bank, and struggling to survive in Sydney on $310 per fortnight from Centrelink....

This book had me go from me thinking "It'll never happen to me" to buying my first positive cashflow property in under a month! (we exchange contracts at the end of this week) True story.
Check it out!!!! THIS BOOK ROCKS!!!!

Regards,
Hobgobbles

 

[geoffw]

Go Gobbles!

(love that signature line!)

 

[always_learning]

Hobgoblin, I though you just got a job with Qantas ? I also seem to remember your post in which it appeared that you did have a quite a reasonable deposit for the IP (50K was it?)

Putting on my "right wing" hat for a moment, people who buy IP's shouldnt have their hand out for "my" tax money (OK I live in Japan, so you are not getting "my" tax money)! If you have enough drive and capability to buy an IP, get a real JOB!