Setting up as a business

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From: Nathan Warrick


I am new to IP's, and am currently doing my research, ie going to seminars, reading books, watching this forum, and was hoping someone could shed some light on something for me.
I went to a Henry Kaye seminar, and the follow up personal evaluation with one of the support members. I didn't go ahead with anything, because frankly I found the high pressure/high sell approach offensive, (Cost going up tomorrow-sign today). I intend to make a list of things I would like to know how to do and research them independently rather than pay 10-15k for a seminar that may only give me a couple of strategies I am comfortable with applying.
Anyway, it was mentioned a few times about setting up as a business instead of as an individual to do Property Investment. I gathered this was to minimize personal risk etc, but they wouldn't go into it any more than that, other than to say the 10k course would teach me how to structure it correctly. I got the impression that it was integral to their strategies, but I may be wrong.
Can anyone enlighten me as to what they are talking about, and is it a good idea? How do I do it? or where do I learn about it? Do a business course of some kind? or is this just opening a huge can of worms?
I haven't heard this discussed anywhere else, and would like some feedback.

Thanks to everyone for the excellent info/discussions in the forum.

Regards
Nathan
 
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Reply: 1
From: Sergey Golovin


Nathan, you are probably right there.

As you already know it - it is a few ways to do it.
1. Study it your self.
2. Study your self-complemented with someone else’s guidance.
3. Do as you taught (or do it as we suggest you to do it).
In any case it will cost you some amount of money. But have look in future. You will get return on your knowledge one way or another. You will get all your money back once purchased few IP’s.

As far as setting up business goes - again, you have to answer to your self on basic question, do you have any business whatsoever or are you a private investor.
If you do not have business as yet after 3 investment properties from ATO (Tax Office) point of view you are running a business anyway. And if you want to buy more IP's, bank will most likely force you to open business anyway.

May be someone else will answer your question as well.

Serge G.
 
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Reply: 1.1
From: Sergey Golovin


3. Do as you taught (or do it as "we" suggest you to do it).


As "they" suggest...


Do not get me wrong, I am not running seminars.

Serge G.
 
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Reply: 1.2
From: Duncan M


>If you do not have business as
>yet after 3 investment
>properties from ATO (Tax
>Office) point of view you are
>running a business anyway. And

Do you have any ATO references to support this? I've never seen any line drawn by the ATO and in fact have seen specific references that suggest that the mere act of owning rental properties is never enough to qualify as 'being in business'. Another reference suggests that $500K of 'real property' is enough to qualify one as being 'in business'..

>if you want to buy more IP's,
>bank will most likely force
>you to open business anyway.

I've never seen this and we certainly have more than 3 IP's, NAB have never required us to wrap them in a corporate entity. Before the NAB a large credit union also never required the existence of a corporate entity for our portfolio.

Regards,

Duncan.
 
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Reply: 2
From: Con W


I was/am in a very similar position to you. I looked at some seminars (even Henry Kaye) but didn't sign up in the end. They wanted me to sign a finance form without filling in any of the dollar amounts, telling me it was best left to them as they knew how to get these things quickly past the finance company. (I told them strange you would think you would have to resort to tricks, as I have a strong credit rating.) Anyway so I decide to dedicate my spare time to educating myself. I have read and still reread Robert Kiyosakis books which were my starting point. I have read many others as well and take what info I need from them and then talk further with an accountant, financial planner and solicitor. I haven't even managed to ring up huge bills yet as many of those I have spoken with have told me what I should be looking at doing and only charge me when I actually put the process into practice. My partner and I have set up companies and are soon to set up a trust as well. There is something to be said for doing the hard yards myself. Sometimes doing it slower, you have time to digest the reasons why people suggest things, so when you go and do it you understand completely why it is right for your own circumstances.
 
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Reply: 2.1
From: Anonymous


I did a little bit of homework and for all that have or havent signed up at the HK course for your info the credit company you may have seen Select Capital is part of the HK company so of course they are going to approve credit as they are taking money from your account monthly. if you are all wondering the ASIC web site has the info. I only checked it as i was looking at a friends form who had signed up and found it odd that they (select capital) had a address and abn number but no ph number and none listed. anyway do what you feel is best for you I myself am reading books and reading what you all have to say and learning that way for now.

cheers

Raoul
 
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