Request for advice/services for a cash rich/time poor potential property investor?

[Novice100]

Hi Guys

I would be grateful for any advice or offer of professional services (financial, legal, property sourcing/managing agents) relating to starting a property portfolio.

In particular I am interested in recommendations for any reputable service providers / agents / books / courses / resources to get me started.

If anyone has specific services they want to offer I'd prefer it if was via this thread rather than private message unless its against the forum rules.

My details:

1. I am cash rich / time poor with limited knowledge of property investing. I am ready to start buying now.

2. I want to reduce my high personal income tax burden by developing a property portfolio for long-term income. From what I've read I believe property is a good long term option for me.

3. I like the sound of the service and strategy advocated by JDL strategies (www.jdlstrategies.com.au) i.e. buy 10-20 well located quality new build houses with high gearing ratios to reduce my tax burden and hold them long term so they are cash flow positive in my retirement. This company sources/purchases/manages the property for you i.e. an end to end solution which I like the sound of, however I do not like the idea of dealing with the company as they earn money from builders and so appear to be conflicted, also various forum reviews suggest that their recommended properties may be overpriced compared to prevailing market rates.

4. I do not want to spend a lot of time sourcing/researching/viewing/managing individual properties - I want someone to do this for me. But I will spend a significant amount of time/energy in learning about higher level strategies/investment structuring etc. This post is a first step in that process.

5. I am willing to pay a fair price for professional services/advice as long as all fees/commissions are 100% transparent and there is no incentive for advisors to provide advice against my best interest, I will do my own background research on all professionals I deal with and the advice they provide. I will routinely seek second opinions on advice from other professionals. I do not want to deal with anyone who has multiple bad reviews on forums from credible sources. I am not interested in hearing from motivational/get rich quick spruickers.

6. Whenever possible I prefer to interact with advisors via email and avoid physical meetings.

7. I am open to offers to invest with others who have identified good opportunities but have insufficient finance to act on them but only if they are willing to provide very detailed info about all aspects of the proposed investment.

I will post my progress to help others learn from my experience.

Thanks for any advice you can provide.

 

[Terry_w]

I get worried about the one stop shop type businesses. Why not seek advice on qualified professionals and then use a buyer's agent to source properties independantly. You can still use the same strategies.

 

[Novice100]

I think thats probably a good idea and what I plan to do if I don't find any decent integrated service providers. I'd love to hear recommendations for specific professionals, particular professionals that work together with each other already.

I don't have knowledge of appropriate strategies yet so need to research and get guidance on this.

I'd be interested to hear from others if there are any genuinely good one stop shop providers or failing that providers who do a good job at dealing with more than 1 aspect of the process (overall strategy, financing, property sourcing, purchasing, management)

 

[BMW]

I am cash rich / time poor with limited knowledge of property investing. I am ready to start buying now.

No doubt this will attract some reputable providers.

 

[DaveM]

Are you china's twin brother ?

Steer away from all in one clubs/businesses they will sell you properties that suit their objectives not yours

Start by locating a good broker to work with, and also a good buyers agent to do the leg work

 

[Scott No Mates]

Deep pockets, lack of knowledge and wanting a one stop shop - recipe for disaster. Too much risk in going for a one stop shop as the only interest served is their own.

I too would advocate separate advisors, acquisition and management to separate the being led into dud deals, rental guarantees or vested interests/related party deals.

A sound financial plan (well considered business model, reviewed regularly) to guide you, a trusted accountant/solicitor/estate planner, capable property manager & knowledgeable buyers agent.

 

[beachgurl]

Join a few property groups and you may find people who could joint venture with you- they may have the knowledge and skills but no available funds to proceed with development projects and the like. You learn from them through the project and split the profits. Not for everyone tho.

 

[Deltaberry]

In this situation, buy the biggest and best property int the best locations and suburbs. The capital growth will outshine whatever measly cashflow you'll get from an inferior property, and it is almost bullet-proof. Also helps achieve your objective of tax minimisation since you'll lose money while holding it, most likely.

 

[Dazz]

I like the sound of the service and strategy advocated by XXX i.e. buy 10-20 well located quality new build houses with high gearing ratios to reduce my tax burden and hold them long term so they are cash flow positive in my retirement. This company sources/purchases/manages the property for you i.e. an end to end solution which I like the sound of,


however


I do not like the idea of dealing with the company as they earn money from builders and so appear to be conflicted, also various forum reviews suggest that their recommended properties may be overpriced compared to prevailing market rates.

So you like the sound of someone doing all of the legwork for you, end to end, but you don't like the way they do it or their profit margin ??


Personally, I very much like your concept though. It has merit.


The thought of having my very own army of top flight barristers numbering in their hundreds working for me around the clock every day of the year has appeal. Unfortunately I don't like what they charge either, so alas, I will keep looking just as you will.


Seriously.....

 

[Novice100]

Are you china's twin brother ?

Steer away from all in one clubs/businesses they will sell you properties that suit their objectives not yours

Start by locating a good broker to work with, and also a good buyers agent to do the leg work

any suggestions re a good broker/buyers agent or where to find one?

 

[Novice100]

Join a few property groups and you may find people who could joint venture with you- they may have the knowledge and skills but no available funds to proceed with development projects and the like. You learn from them through the project and split the profits. Not for everyone tho.

I'd like to do that if I could find someone I trusted to venture with
- any recommendations for a good property group like the one you suggest in Sydney?

 

[Novice100]

In this situation, buy the biggest and best property int the best locations and suburbs. The capital growth will outshine whatever measly cashflow you'll get from an inferior property, and it is almost bullet-proof. Also helps achieve your objective of tax minimisation since you'll lose money while holding it, most likely.

I hadn't considered this but I love the sound of it as it sounds like a very easy and low maintenance strategy. The question is whether it would reliably work - have you any experience of this strategy or can you point me to any resources that analyse it?

I would've assumed that buying a bunch of expensive properties e.g. 3 properties on the Sydney North Shore or Eastern suburbs >$2m each would give such a low rental yield that it would end up losing money even after accounting for capital gain and tax benefits, aside from the concentration risk associated with having all my eggs in a few baskets. Also I presume that the Sydney market is on the hot side so it would not be a good time to buy in the prestige market because capital gain would probably take a long time (but that’s ok with me as long as it does happen eventually to an extent that makes it worthwhile)

For a budget of $6m would you recommend buying 3 x $2m properties or 1 x $6m property?

Does anyone else have any views on/experience with this as a long term strategy?

 

[Novice100]

So you like the sound of someone doing all of the legwork for you, end to end, but you don't like the way they do it or their profit margin ??


Personally, I very much like your concept though. It has merit.


The thought of having my very own army of top flight barristers numbering in their hundreds working for me around the clock every day of the year has appeal. Unfortunately I don't like what they charge either, so alas, I will keep looking just as you will.


Seriously.....

I don't mind others making a profit margin and am happy paying a fair rate for professional services but don't like that particular company because of the conflicts involved. If there was a similar company who provided unbiased recommendations to buy properties without receiving commissions from the sellers then I'd be happy to work with them and pay appropriate fees

 

[Novice100]

No doubt this will attract some reputable providers.

I'm time poor and relatively unknowledgeable about property but not stupid or gullible and feel confident enough in being able to filter out the disreputable providers, although who knows maybe I will end up being taken for a ride

 

[china]

For a budget of $6m would you recommend buying 3 x $2m properties or 1 x $6m property?

Does anyone else have any views on/experience with this as a long term strategy?

At this budget, I would consider commercial property in metropolitan Sydney for its higher yield and chance of capital gain. I think this is especially relevant if you are time poor.

 

[Novice100]

At this budget, I would consider commercial property in metropolitan Sydney for its higher yield and chance of capital gain. I think this is especially relevant if you are time poor.

I've not really considered commercial as no experience of it but will look into it now. Any recommendations on areas in Sydney and how to find a good commercial property?
My main concern is the risk of long-term vacancy although i have no idea how often that would happen in metropolitan Sydney - although I have seen numerous vacant lots that appear to have been vacant as long as i can remember (>2 years) in the lower North Shore so that does put me off a fair bit

 

[Mr. Fabulous]

Join a few property groups and you may find people who could joint venture with you

Since you're new to property investing, this is NOT a good idea. If you are, as you say, time poor you essentially have a couple of options:

1. reassess the way you use your time.
2. assemble a team of people who will do a good job in helping you and looking after your investments on your behalf.

Don't make the mistake that 99% of people make and look for the cheapest options. Find the best people you can first, then worry about cost second.

There are plenty of good mortgage brokers, buyers agents, property managers, solicitors, accountants, etc. on the forum. For instance, a good mortgage broker who is in Sydney that posts here is Terry_w. He also happens to be a law talking guy, so can probably help you there, too.

I suggest you start by talking to him.

 

[jingo]

I'm time poor and relatively unknowledgeable about property but not stupid or gullible and feel confident enough in being able to filter out the disreputable providers, although who knows maybe I will end up being taken for a ride

Perhaps hire a BA in Melb and Sydney to kick start your portfolio. Find an accountant if you don't already have one and go from there. Regarding finance, if you don't have time to organize it yourself, find a broker - there are some good ones on here. Its really not that hard, but if you are time poor it can seem overwhelming. All the best with it. Regards Jason.

 

[JenJen]

Or... invest in Cairns! Why not? Plenty of other cash rich investors are doing so. Long term speculative prospects are well above average...

Cheers

Jen

 

[pinkboy]

Or... invest in Cairns! Why not? Plenty of other cash rich investors are doing so. Long term speculative prospects are well above average...

Cheers

Jen

Is this the property equivalent of 'ramping'?



pinkboy