Ohhh the pressure?

[Andrew L]

Hi everyone.

I'd like to ask Yee ol' property investors if you still find this business difficult? Do you still meet substantial hurdles on your purchases/projects.

For the last two years it feels like the hoops I've jumped through are never ending! Just as I make it through by the skin of my teeth and start to feel like I'm on my way........ an unexpected bill arrives or a complication with the loan/broker, council etc etc

I realise that if property investing was a walk in the park everyone would be doing it. But please tell me that at some point there are payoffs that keep me wanting to go forward??????

I start investing and the finance world falls over - Get a DA approval and the banks remove end value loans. Reno and refiance to buy again and the banks remove No-docs and make lo-docs a whisker away from a full doc.

I'm beginning to think I was a nasty person in a previous life?

 

[The Y-man]

We don't do anything fancy - just boring old "buy a property when you can afford one and rent it out" strategy - with the occasional repair, recarpet and repaint. Very few hurdles really......

Cheers,

The Y-man

 

[Minxdamanx]

I'm a bore too.

Save, save, save then re-value (= hopefully more 'savings'), buy, save, save, save ......

coat of paint here, major sewage renovation there mad.

I'm a big fan of the KISS principle.

BTW - we're not big income earners so the save, save, save bit takes a while - no rushing with this method.

Take care Andrew, it'll all come together.

 

[Rob Williams]

I'm Mr Boring, too. A few bumps on the road, but no major hurdles.
For me, the biggest problem seems to be the speed at which valuations and re-financing happen. Maybe I'm just impatient.
I bought a couple units (Villas) back in 2007. Refinancing them now will put over $200k in my pocket for another deal or project.
I haven't done anything facy or exciting. Just rented them out and watched the CG increase over time.
Some would say that when you get too many major obstacles or dramas going on, it's a sign that what you're doing isn't in your "flow". Really, if it's the right strategy for you and it resonates with your personality, circumstances, risk profile and objectives, then it should relatively smooth sailing.

 

[Minxdamanx]

For me, the biggest problem seems to be the speed at which valuations and re-financing happen.

I hear you loud and clear Rob.

Andrew - don't push too hard. It'll happen when the time is right. If that's your photo - you're obviously young with a young family - just work through things slowly and maybe leave any of the hard stuff until you are more secure. Doing it all by the skin of your teeth might not be right for you at the moment, and just puts you under unnecessary stress.

One thing I have learnt (very basic information coming) is budget - know how much your bills will be and when they are due, have a buffer for when things go wrong and keep personal spending under control. All very basic and boring, but without that you run the risk of over-extending. As I said in the other post - we aren't big wage earners - I know where every cent goes and what we can afford to do. We can't afford to take risks without funds behind us as back-up. It was dead boring getting to this point, but it allows us to get ahead.

 

[craigb]

not so for the investments but gee wizz the hurdels i have been through this year are endless, issues with projects, tradesmen, taxes, the list seems endless, but i often see the light at the end of the tunnel its seems like a long windy one for me,

 

[willair]

I start investing and the finance world falls over - Get a DA approval and the banks remove end value loans. Reno and refiance to buy again and the banks remove No-docs and make lo-docs a whisker away from a full doc.

After all that's what it's all about and that's why so many give up,experience is not what happens to you,experience is what you do with what has happened to you,just think how you would be if the interest rates
go back to their previous highs,and umemployment goes above 10%..
..willair..

 

[Sheryn]

I'd like to ask Yee ol' property investors if you still find this business difficult? Do you still meet substantial hurdles on your purchases/projects.

YES

As Rob said maybe not our 'flow' I like to buy a block of land and build BUT I am seriously thinking it would be easier to buy already built properties!

I am not a renovator like Nathan ( hubby has all the skills to do renovations but not interested).

Andrew - We/I have always saved the money and had more than 20% deposit although I may choose to borrow the lot with collateral as security.


If it was easy everyone would be doing it...I may need to reflect on this more and go with the flow.

Sheryn

 

[lizzie]

ditto - sometimes it's hard.

i too have hit the "banks not lending" problem as have a da and cc approved site just sitting there (with a tenant in the old house). so, in the meantime we're doing a reno to range some extra cash for a larger development deposit.

 

[Propertunity]

when you get too many major obstacles or dramas going on, it's a sign that what you're doing isn't in your "flow".

Andrew, I have to agree 100% here with Rob and also add that there is a time when lots of things conspire to hold you back and these things have to be confronted and defeated so you can "break free". Having done that, if you find continual impediments to your path, then you have to check if your in "the flow" still or actually on the wrong path.

Only with wisdom can you begin to tell the difference.

 

[Piston Broke]

I realise that if property investing was a walk in the park everyone would be doing it. But please tell me that at some point there are payoffs that keep me wanting to go forward??????
I start investing and the finance world falls over - Get a DA approval and the banks remove end value loans. Reno and refiance to buy again and the banks remove No-docs and make lo-docs a whisker away from a full doc.

Welcome to the world of investing!
I've posted before, those that say it's easy are those selling you something.
Of course for those who bought during the boom, or on 200k+ it's a different story.
As they say the first is the hardest, and i mean equity, not "the REA said it worth xxx" or the BS you read in API/YIP.
If you think about it, you realize the madness of no-doc loans.
Jo Blo turns up to the bank ans says "I make $XX, I swear on my mother in law", and they give him the money. Now the ATO is sifting through those no-doc and sending out tax bills.

It's a game of patience, bit by bit little by little.
You got a DA great!
But you may also need to adapt and adjust, which is really what it's about.
Your shooting a moving target.
Take a deep breath, and realize it aint going nowhere, and will still be there tomorrow and workout your next move.

Only with wisdom can you begin to tell the difference.

The only wisdom most people seem offer is "it's always a good time to buy" which is purely BS.

 

[Andrew L]

Thank you to everyone that has responded the clear light of day and not being under the influence of a nice Evans & tate Classic helps not look so negatively on this journey. I do find it a a little frustrating not having friends etc that are also on this path. It can be quite lonely.

The hoops I mentioned are not life and death more the fact that they come up even after all the hard work and planning I've done - The best laid plans of mice and men as my dad says.

i may be pushing to hard but with my loss last year i'm trying to catch and exceed it ASAP. Funding a 2nd IP soonish and allowing the two to grow in value over the next 2 years should allow enough equity to construct the DA currently approved on IP1

My choice at the moment is to allow CG to improve the houses value + smash all small personal debts to give the banks no reason to say no for the construction funding when I apply.

I guess the realisation that its not a quick buck and that most of us gain the value through long term growth + good salaries. Add those two together and in the not to distant future you have the ability to multiply, develop and really make some inroads.

Enough said back in my box to follow the safe road of not over committing myself and put money in the bank to buy again. The chances of losing it all by pushing to hard and rushing is very much at the fore of my thoughts.

Thanks for the help everyone.

 

[Rockstar]

Enough said back in my box to follow the safe road of not over committing myself and put money in the bank to buy again. The chances of losing it all by pushing to hard and rushing is very much at the fore of my thoughts.

Well keep the lid open so you can still look around you around mate. Sounds like you have come to a wise realisation. Patience is just as important as persistence. Keep the right tension on the string so it plays the music - too tight will snap it - too limp and you'll get no music at all.

 

[JamesGG]

Best laid plans, indeed. The idea that you're working towards does sound very solid, though. Pay down personal debt, buy another IP, keep saving and eventually develop and multiply.

The beauty of it, is the simplicity.

Yes, there's always going to be something interesting that comes up along the way. I like to refer to these things as noise, or distractions, and given too much attention they have the potential to derail what would otherwise be positive momentum.

The trick, for me at least, is to deal with the noise when it comes up, and quickly move on.

Jump over the odd pothole when necessary and just keep putting one foot in front of the other. One little step at a time, and before long you've walked a mile. It might be an uphill struggle sometimes but the view from the top is nice when you get there

 

[Andrew L]

I think the simplicity of all this is the confusing part!!!!! sounds silly but its true.

I can see the benefit of building my chosen type of developments and the future that comes with that. I'm very much struggling with the concept that I don't have the funds to do it for a few years yet........ It feels like dads left the ferrari in the garage, keys on the bench but clear instructions not to take it out for a spin.

I don't earn 200k and my daddy has given me zippo. The beauty of that is everything I achieve is for me and by me.

The strings analogy is a very good one. I think i'll steal that.

 

[JamesGG]

I think the simplicity of all this is the confusing part!!!!! sounds silly but its true.

I can see the benefit of building my chosen type of developments and the future that comes with that. I'm very much struggling with the concept that I don't have the funds to do it for a few years yet........ It feels like dads left the ferrari in the garage, keys on the bench but clear instructions not to take it out for a spin.

I do know what you mean there. It's a concept that I struggled to come to terms with for awhile.

It is part of the reason behind why I started learning about ways to get this stuff happening, quickly.

 

[steveadl]

Don't let it get you down Andrew. Obstacles make life fun, it's always good to have a challenge. Often allows you to see different opportunities and alternatives for moving forward.

 

[vincenzo]

It's good pressure!

It feels good to have a problem, task, challenge, etc, which is going to result in you making money, not your boss making money and only giving you a relatively pathetic paycheck in return

 

[our obsession]

For me...it's a game and I love to play it.

No, it isn't always smooth, but that's part of the fun for me, I like to out think and get creative, hit for plan 8 sub (iv).

It's taking me to places I've never dreamt....met people whom I adore!

I love it, it's my passion, my fun, my challenge, my learning pot.

If the wheels fell off tomorrow? I would get right back on the bike. Kind of learnt this formula thing. My formula.

I sort of don't take no for an answer either either, in the sense of no limitations, can't do one thing, well, find something else. I don't need (or want) Dad's Ferrari. Go Dad, that's yours. Good for you. I'm not tempted in that sense, it's more .....I will do what I can (or cannot) to achieve what I want. Plus I think I might be patient in a good sense for me.
Know when to roll them, fold them, walk away..

It's so much fun for me.

 

[Aaron Sice]

your first few are hard.

i was *nearly* there ("there" being a very limited risk as far as the bank was concerned), then i sold up and started working for myself........they hate me now.

so i have to start again and i'm finding the same hoops you're talking about.

i just keep thinking about the end product. anything worthwhile requires hard work.