Opinions requested

tobe

tobe

So, I have 6 investment properties. During the GFC my personal circumstances were such that it has been impossible to borrow since about2009. Lately I have been able to borrow again, and pull some equity out. I have about $200k. So the question is, what should I do with it?

More resi property is definately an option, but Im a bit gun shy with negative geared property at this stage in the cycle, especially as I hold a few resi properties already. Shares came a cropper during the GFC, so while I now hold a small portfolio, Im not that keen on buying back in.

What I want is a passive cash flow business or asset, perhaps bonds, perhaps commercial property?

One option is to start my own mortgage broking business. I have been in the industry 12 years working for others, so thats definately one option, however it wont cost $200k to start. I want to diversify my income as well.

Anyone got any ideas for me?

Dont be shy, I have been a member of this site for a while, I have a fairly thick skin. Much appreciated.
 
Besides not borrowing the $200k, is there anything you can do with your existing IPs to improve their cashflow? (eg. rent them furnished / other improvements and upgrades that more than cover the interest on the cost, etc)
 
that was my first thought Corey. But they are rare, and I would want the data base that goes with them, which they are apparently sold without. Shame, It would have been an ideal way to start.
 
MarkB said:
Besides not borrowing the $200k, is there anything you can do with your existing IPs to improve their cashflow? (eg. rent them furnished / other improvements and upgrades that more than cover the interest on the cost, etc)
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3 are older regional properties, I could put a car port in, some cosmetic renos etc, which I tend to do anyway as needed. I doubt pushing them over and building new would increase the rent, and they arent suitable for units etc.

the other 3 are units in melbourne, again apart from a cosmetic reno not much possible to increase rent.
 
tobe said:
that was my first thought Corey. But they are rare, and I would want the data base that goes with them, which they are apparently sold without. Shame, It would have been an ideal way to start.
Click to expand...

Rare as hens teeth. I've seen them sold with the database, but they want higher multiples.

Ideally it would be more practical to try rub shoulders with some older brokers who are looking to exit the industry, so it can be a mutually beneficial arrangement.
 
Perhaps recycling the debt through the whole portfolio in the form of cosmetic renos is a starting point. You'll increase your wealth and cashflows and have access the the funds again at the end of the process if done right.
 
How about a small development? $200k together with borrowings should set you up for a small one easily and at the end you'll most likely be cash flow positive together with super nice depreciation etc
 
Corey Batt said:
If you start up your own brokerage, you could try buy a reasonable loan book, though they are fairly rare at the moment.
Click to expand...

I agree with this, buy a good book to get started with, will be cashflow positive many times over from which you can fund other property purchasers and shortfalls.
 
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