quality NOT quantity

Why does one get asked at every property seminar,meeting "how many properties do you have.?"

Those same well meaning non thinking folks would never ask a complete stranger how much money they make.!!

Surely the real question for those who have to ask, is what is the portfolio valued at.?

A Sydney investor may say I only have eight properties in reply to a Brisbane investor who states she has 10 properties.

The Sydney investor says mine have an average value of 350K.
The brisbane investoe says oops mine have an average value of 200K.

Why do we give homage to investors who have a high quantity of IP's. All 20 of them could be studios in Broken hill valiued at 19K each.

Get the picture. The less said the better.
 
You can get studios in Broken Hill for 19K ? Wow... who do I need to talk to about that ? Think how many I could buy... I'd be able to say I have LOTS of IPs if I bought a whole heap of them !

:D
 
It is basically the same question as invariably the next question is "where" and from that the value can be calculated.

I see a number of reasons for the question

ice breaker start the conversation

determine how experienced the individual is in PI

common ground units houses etc

I am sure there are more please add.

Cheers
 
EQT game

A more relevant question would be "How much equity have you got in your IPs ?"

Although acquiring properties at 105% LVR seems to be the most popular game in town at the moment, real wealth is better measured by equity (excluding home). (I do realise that this is a simplified view that does not take into account net rental income).

Say Cheese

:p

Lotana
 
I still don't understand how the number or value of properties owned has any bearing on the amount of knowledge that a person has...

Does this mean that if I own no property at the moment, my information is worthless?

Please let me know if it is, and I will sadly stop posting.

asy :(
 
For me, it's like a conversation opener. I'm interested in properties, and I'll ask people questions as to where they stand.

I can't even remember qhat the exact question I've asked. But maybe something like, "Do you have properties?" would be better than the question I've really asked.

Perhaps "do you have IPs?", "where are they?"- would they be better questions to ask?

"How much are they worth?" might be regarded as even less friendly than "how many".
 
IP Conversation Etiquette 101

So someone who continually flips or onsells or renos and offloads and only occasionally keeps a top shelf blue chip property is not going to be considered "experienced" because they say "I've only got 2 IPs (but I have performed over 200 property transactions)" ??

Personally, I think the question of how many IPs you have, or even worse, how much your portfolio is worth, are meaningless questions and not something that I would ever discuss with a stranger. If you are a close friend and someone I trust, then sure - but I don't come up to you, introduce myself and ask "how much you earn and how many times did you have sex last week ?"

Definitely not recommended as a conversation starter.

One of the more useful things to ask would be "how long have you been investing ?". That will sort out most of the newbies from the people who have been around the traps a few times. As for the "switched-on" newbies, you will pick them from your conversation - not from some measure of how many properties they own, or what their portfolio is worth.

Other conversation starters to try could be:

- so which areas do you like to invest in ?
- what types of investments do you have ?
- what style of investment would you consider next ?
- are you into XYZ types of property ?
- what do you think about interest rates ?
- do you think that trusts are the way to go ?
- what's your opinion on negative gearing ?
- have you done any renovations ?
- have you bought overseas ?
- do you manage your own properties ?
- don't I know you from somewhere ?

I'm not saying that you should never answer a question such as how many IPs you have or what your portfolio is worth - but you should really not be surprised or upset if someone refuses to answer you if you ask them.

It's all fine to talk about strategy and tactics - but intimate personal details are a bit off.
 
In response to Asy, I'd suggest that a question like "how many" or "how much" might be answered in a different way.

Like, "I don't own any currently because...", or whatever response is appropriate.

A question like that is a conversation starter when people who like property get together.

And perhaps inexperienced people like myself get enthusiastic about questions like that.

But, even if the subject of the question regarded the questrion as inappropriate, the response to the inappropraite question would tell me a lot abot that person.

And if that person was not "into" property at the moment, I'd be interested to know where they were at. If they were out of the market, what market-related factors influenced that decision.

And if that person told me it was none of my business, I would change the subject. Rather than sadly walk away.

Because I'm in here to learn. I'm with people who are interested- even passionate- about property. And I'm learning and growing from talking with these people.

I myself might (and have) asked inappropriate questions.

Beech asked (in http://www.somersoft.com/forums/showthread.php?s=&threadid=535 ) about the commissions earned by brokers. I thought the question sounded a little unfair, and said so- but neither Beech nor Rolf objected. So I stand corrected. These people handled my inappropriate comment very well.

Bottom line?

Ask the questions when you meet people. Whatever questions you're comfortable with. I've become aware though, as a result of this thread, that some questions I've asked in the past are not appropiate.

Give answers you're comfortable with. And if that means that you don't "have properties", share your knowledge. How is our journey? Where have you come from, and where are you going? Do you think you're coming from a position of knowledge, or do you need knowledge?

And Asy, your information is DEFINITELY not worthless.
 
Hi GW

I did not take your comment as being inappropriate at all, and you, like all of us are all entitled to our own feelings on things.

Nor do I regard any question as inappropriate. If I have a problem with a question Ill just refuse to answer it - nicely.

Ta
 
HI

OK, so now we have "pick up" lines for investors. Kewl!!!

Seriously, these questions are something that I have seen recommended on the old forum many times for new investors to ask as a way of gauging an accountant's or broker's knowledge and experience . . . now, we are saying no, don't ask???

Boy, you guys are gunna confuse a lot of people!

Bemusedly yours

Dale
 
questions are something that I have seen recommended on the old forum many times for new investors to ask as a way of gauging an accountant's or broker's knowledge and experience
Now, that's a different animal. ANYTHING is fair game there.

It's not a social situation, and questions are not likely to embarrass.

I hope.
 
I just had a thought.

Skier asked,
Why does one get asked at every property seminar,meeting "how many properties do you have.?"
Asy stated
I still don't understand how the number or value of properties owned has any bearing on the amount of knowledge that a person has...

My thought was, a much better way of assessing the knowledge a person has would be,

"Do you contribute to the Somersoft forum?"

If yes, then, if you were savvy, you'd know their forum name and have a good idea as to their posts.

If they look at you in a puzzled way, then they obviously have no savvy at all :D
 
No Dale... asking a professional (accountant/broker/etc) who will be giving you advice about their investing experience is important. They should expect to be questioned about their qualifications and experience - but we're not talking about a social get together here though.

I'm clearly differentiating between casual socialising or networking (with effectively strangers) as opposed to a one-on-one discussion with a professional adviser who you will be money to.
 
Originally posted by Sim
No Dale... asking a professional (accountant/broker/etc) who will be giving you advice about their investing experience is important. They should expect to be questioned about their qualifications and experience - but we're not talking about a social get together here though.

I'm clearly differentiating between casual socialising or networking (with effectively strangers) as opposed to a one-on-one discussion with a professional adviser who you will be money to.

Hi SIm

So, if I understand you correctly it is OK to ask an accountant how many properties he/she has but, it is impolite to ask a stranger you meet at an investment forum or gathering. . . .

Doesn't this seem like a double standard?

Bye the way, I'm not bothered by the question as I believe my life should be an open book. I just find the juxtaposition fascinating!!

have fun

Dale
 
Okay Dale, sorry - I should have been a little more specific in my definitions.

I'm not just talking about a casual conversation with an accountant - I'm talking about something like an "interview" where you are assessing whether you will let this person be your advisor who will know ALL of your intimate financial details.

It's about evaluating whether this advisor is right for you.

Actually, it's not so much about asking how many IPs they have and what their portfolio is worth - and I have never asked those exact questions of any of my advisors (that I can recall). My point is more about since you will be trusting your intimate personal details with this person, then it is reasonable to expect some information coming back in return - but not necessarily exact numbers of IPs and their worth.

Now that I think about it, there is no real reason to get exact information like this from your accountant - there are other ways that they can explain their experience and understanding of property investing to you. I expect an open and frank discussion with my accountant - but I don't expect them to provide me with past tax returns or anything !!

So I change my view... there is never a good reason to be discussing these figures (number of IPs and what they are worth) with anyone - unless your ego dictates that you must of course !
 
OK Sim, those are fair points.

Would a fairer question be something like,

"Do you actively invest in property?"

And then, "What are the upsides and downsides of property investing?"

"How can you help me ?" (with a big part of the answer depending on perosnal experience).
 
Agree totally geoffw... a general discussion about their views and experiences with property investing will give you a much better understanding of their position and knowledge of the subject.
 
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