I'd suggest that Steve is a more public profile of where the smart money is going. I know a small group of investors who do all their own research, no herd stuff, and they have also completed a buy in NZ, on a smaller scale than Steve of course and are in the middle of the same in the US. I'm not that adventurous, I'll stick to the mainland and wait until it cycles around again.
Steve McKnight buy's 30 properties in the US
- Thread starter Platnicka
- Start date
Quiggles,quiggles said:
Please don't misunderstand me, I am a great fan of the US, travelling to and from its shores at least every year or so (mostly for pleasure, but occasionally for business). And although it is a wonderful country, I have to ask.......
If you, Steve and others are chasing cashflow in property deals US style, sure you will make a Benjamin Franklin or two, BUT I have to wonder HOW LOOOOOOONG it will take you to make a reasonable dollar?? That is, assuming you make a profit of say $AU5000 on one rental investment, you still have to deduct all the usual expenses associated with the joys of being a landlord/lady (ie. management fees, taxes, cost of phone calls, emails) on top of the inconviences of dreaded sleep interruptions thanks to "late night" telephone exchanges!!! Crikey, talk about SANF (or lack thereof)
Which beckons me to ask, at the end of the day, IS IT REALLY WORTH IT??? I guess it must be, otherwise you wouldn't be doing it!!!
Me personally, I love the US and visiting it as a "tourist" staying at 5 star accommodations, being waited on hand and foot....it's just soooo much easier than having to watch and worry about BOTH economies (I get enough of a headache watching just one)!!!
Nonetheless, all the best to Steve, and other investors venturing o/s - you've got guts!!!
Cheers,
Jo
Onya, Steve
Good points, Michael,
I see Steve as having done MANY smart things (and continuing to do them)
First off, he was smart enough to realise he didn't want to stay in a JOB that held little interest for him.
Next, he was smart enough to educate himself prior to "taking the plunge".
Started with +ve gearing, which allowed his portfolio to grow quickly as DSR levels were far less threatened this way.
Then, he built a business that profited from the knowledge that he gained, and went about marketing it to others. (Now THAT is SMART!!)
Followed by:-
(As MY has said) Moved into, then out of, various ventures at different stages of the housing cycles in different States.
Built another business in presenting seminars, writing books, etc.
An interesting point here, is that his +ve geared properties got into the Boom too - and his cashflow IP's ended up attaining pretty serious CG as well...... Maybe not planned for, at least in his early days, but that "rising tide" lifted all the boats, and he and Dave were the beneficiaries. And I'm sure his business efforts didn't hurt with this.....
Now, he's visiting the US and his businesses are picking up the costs. (Note, I'm ASSUMING he's going there - can't see Steve buying in the US sight unseen, at least not until he's done the "groundwork")
And, re the headline, this is a Newspaper putting their usual spin on the headlines to keep on selling papers. Yes, I think Steve is pretty smart, but he's not the only one around by a long stretch. But he has demonstrated how to start from next to nothing and build quickly.
I'm sure he is also aware of the benefit of holding Capital Growth properties too. But, for now, he seems to be doing pretty good in forging his own path. I guess, once he puts his feet up, his focus will turn more to CG properties. For the moment, he remains very active in his chosen field.
Good luck to him. He's put his money where his mouth is and is reaping the rewards.
And Michael - great quote !!
Regards,
Good points, Michael,
I see Steve as having done MANY smart things (and continuing to do them)
First off, he was smart enough to realise he didn't want to stay in a JOB that held little interest for him.
Next, he was smart enough to educate himself prior to "taking the plunge".
Started with +ve gearing, which allowed his portfolio to grow quickly as DSR levels were far less threatened this way.
Then, he built a business that profited from the knowledge that he gained, and went about marketing it to others. (Now THAT is SMART!!)
Followed by:-
(As MY has said) Moved into, then out of, various ventures at different stages of the housing cycles in different States.
Built another business in presenting seminars, writing books, etc.
An interesting point here, is that his +ve geared properties got into the Boom too - and his cashflow IP's ended up attaining pretty serious CG as well...... Maybe not planned for, at least in his early days, but that "rising tide" lifted all the boats, and he and Dave were the beneficiaries. And I'm sure his business efforts didn't hurt with this.....
Now, he's visiting the US and his businesses are picking up the costs. (Note, I'm ASSUMING he's going there - can't see Steve buying in the US sight unseen, at least not until he's done the "groundwork")
And, re the headline, this is a Newspaper putting their usual spin on the headlines to keep on selling papers. Yes, I think Steve is pretty smart, but he's not the only one around by a long stretch. But he has demonstrated how to start from next to nothing and build quickly.
I'm sure he is also aware of the benefit of holding Capital Growth properties too. But, for now, he seems to be doing pretty good in forging his own path. I guess, once he puts his feet up, his focus will turn more to CG properties. For the moment, he remains very active in his chosen field.
Good luck to him. He's put his money where his mouth is and is reaping the rewards.
And Michael - great quote !!
MYardney said:
Regards,
I wouldn't call it 'smart money' as such.
It's one approach to a chosen goal, there are many others.
There are a couple of 'wrong' answers, but also many 'right ones'.
It all depends on your specific goals (and what kind of a media hound you are).
Which is something like Michael Y said
Cheers,
Aceyducey
It's one approach to a chosen goal, there are many others.
There are a couple of 'wrong' answers, but also many 'right ones'.
It all depends on your specific goals (and what kind of a media hound you are).
Which is something like Michael Y said
Cheers,
Aceyducey
Jo,Monopoly said:Quiggles,
If you, Steve and others are chasing cashflow in property deals US style, sure you will make a Benjamin Franklin or two, BUT I have to wonder HOW LOOOOOOONG it will take you to make a reasonable dollar??
... Which beckons me to ask, at the end of the day, IS IT REALLY WORTH IT???
I guess it must be, otherwise you wouldn't be doing it!!!
Unless I've misunderstood your position, you are generally more oriented towards pursuing wealth through CG, which is not the same orientation as I have nor, to judge from his writings, as SMcK.
As such, I wouldn't expect you to do what I'm doing, OTOH there are a lot of good CG plays over there too which I haven't touched (inner city San Francisco for one, and beachside properties right up the Californian coast for another).
But I've got to say, it's nice to fly to the US, meet the really lovely folks there, stay in 5 star accom, just as you say. Of course I have he added benefit of knowing that the IRS is subsidising the bill.
And yes, it is worth it.
EDIT: I forgot to say, my point to slades was not that everyone should do as I do, but to sit and wait until the housing market cycles around again seems to be a negligent use of capital
I wouldn't call anything 'smart money' as it's a term that requires retroactive definition - was it outstandingly successful at the time? Yes - then it was 'smart money'. No - then despite having been part of a carefully laid plan that was derailed by some unanticipated external factor - it wasn't smart.Aceyducey said:
IMHO, it's a media term that is better avoided.
The key, as several people have said in different ways in this thread, is to determine your goals and the appropriate strategies for achieving them.
Yes, you are correct in your understanding quiggles, my focus is predominantly on CG over cashflow.quiggles said:
Hell yeah, but their price tags are as equally as eye-catching as their breath taking surrounds!!!quiggles said:
Ahhh now there's the "icing" that the taxman does not slap onto my profit(erole), but then again, all the sugar coating in the world wouldn't deflate the bags under my eyes thanks to "middle of the night wake up calls from property managers in the good old US of A"!!!quiggles said:But I've got to say, it's nice to fly to the US, meet the really lovely folks there, stay in 5 star accom, just as you say. Of course I have he added benefit of knowing that the IRS is subsidising the bill.
The only money the US or any other country will ever see of mine, will strickly be n the form of "tourist" dollars, of which I am only too happy to tip generously with!!! quiggles said:
I would have been disappointed had you said anything different quiggles!!! 
Good on ya Stevo.
In addition as an Australian property guru, showing Australians how to invest in Australia & NZ, would the next goal not be the world?
Why not become a US property guru while you are at it. Now what strategy would you need to achieve those goals.
)
In addition as an Australian property guru, showing Australians how to invest in Australia & NZ, would the next goal not be the world?
Why not become a US property guru while you are at it. Now what strategy would you need to achieve those goals.
(Hi quigglesquiggles said:
)
The thing I like about Steve McNight is that he is "up front" and does not keep his activeties secret. Somehow, I get a newsletter from him and I do visit his forum. He has hinted at an Aussie downturn, discussed buying in NZ and suggested that the US might be a good place to consider investing. He gave good information which made me aware of the US property market. I don't buy property as an investor anymore but keep active with my buy and renovate plans. I believe that there is always good value in quality real estate but if you strive to 'make a million in a few months' you have to speculate much more. The US (and its free trade partner) Canada look likely to boom in some areas. I have been looking at a place in the old town part of Quebec City but the prices of more contemporary properties look very tempting. It makes you wonder why Australian property prices are so high!
maybe the fact that we have a great climate and dont have to dig 2m of snow away from the fromt door on some mornings has something to do with it?????plumtree said:
Hi ppl,
my comment is different strokes for different folks!
why cant some ppl in this forum be more "positive "with thier comments rather than chasing ppl away with their " Negative" feedbacks
No ones perfect, and everyone makes mistakes
Tooo many chieves and not enough indians
Mel
my comment is different strokes for different folks!
why cant some ppl in this forum be more "positive "with thier comments rather than chasing ppl away with their " Negative" feedbacks
No ones perfect, and everyone makes mistakes
Tooo many chieves and not enough indians
Mel
quiggles said:
So you're addressing to me quiggles
mel
Hi all
i don't think i've ever posted on this forum but someone emailed me this link, its very amusing to read some of your comments.
In relation to the story i want to warn people to be very careful about the "$7000" properties Steve mentions in the article. Firstly as some one who has been investing in the USA for some time i know what i'm talking about. These $7000 properties are in highly trouble some areas and not to be purchased. Like the articles says steve has been buying properties in the 30k and above price range.
For those concidering the USA, if you decide to buy in New York state through the internet, then your an idiot. Even those who make a two week trip are playing with danger in this market. This area has great deals but those who don't buy wisely will be in trouble.
I recommend that you use a tested buyers agent in the area, i've never meet Quiggles but have spoken to him on the phone, he has been in the New York Market long enough to know many of the potential problems, if he is still offering this service maybe concider him.
Just be careful with investing in the States and don't believe everything you are told. But for those who are careful, brave and want to make money its about as good as it gets.
regards westan
PS i'm writing this from Sunny New York State, i'm over in the USA on a Holiday and doing a little business as well.
i don't think i've ever posted on this forum but someone emailed me this link, its very amusing to read some of your comments.
In relation to the story i want to warn people to be very careful about the "$7000" properties Steve mentions in the article. Firstly as some one who has been investing in the USA for some time i know what i'm talking about. These $7000 properties are in highly trouble some areas and not to be purchased. Like the articles says steve has been buying properties in the 30k and above price range.
For those concidering the USA, if you decide to buy in New York state through the internet, then your an idiot. Even those who make a two week trip are playing with danger in this market. This area has great deals but those who don't buy wisely will be in trouble.
I recommend that you use a tested buyers agent in the area, i've never meet Quiggles but have spoken to him on the phone, he has been in the New York Market long enough to know many of the potential problems, if he is still offering this service maybe concider him.
Just be careful with investing in the States and don't believe everything you are told. But for those who are careful, brave and want to make money its about as good as it gets.
regards westan
PS i'm writing this from Sunny New York State, i'm over in the USA on a Holiday and doing a little business as well.
Oh Westan,
You're so needlessly alarmist! Those $7,000 properties are FINE and you can get the $400 per month rent on them easily. All you need to do is hire armed security to go with the agent to collect the rent.
More seriously, these tend to be in the warzones. There's a scam in which these properties are sold on Ebay - genuinely sold - but for 8 times their value. Like around $8000. The land has effectively negative value because of its location.
You do need people on the ground to help you. I did do my first over the internet, and it can be done, but it requires really good research and assembling a trustworthy team. Again this can be done from Australia. Or maybe as Westan says, I'm an idiot.
(You say it's sunny so the weather must have turned nice for you there - winter lasted till May this year.)
You're so needlessly alarmist! Those $7,000 properties are FINE and you can get the $400 per month rent on them easily. All you need to do is hire armed security to go with the agent to collect the rent.
More seriously, these tend to be in the warzones. There's a scam in which these properties are sold on Ebay - genuinely sold - but for 8 times their value. Like around $8000. The land has effectively negative value because of its location.
You do need people on the ground to help you. I did do my first over the internet, and it can be done, but it requires really good research and assembling a trustworthy team. Again this can be done from Australia. Or maybe as Westan says, I'm an idiot.
(You say it's sunny so the weather must have turned nice for you there - winter lasted till May this year.)
hi guys
quiggles maybe you were lucky or very experienced but 9 times out of 10 buying over the net in Buffalo without any knowledge of the City or the dynamics of the place will end up being a painfull experience.
the weather was great over 80 today, the kids were playing water fights with some friends kids here in Rochester. We have been in the States for the past 6 weeks with the family and the weathers been great, although we have only been in New york state the past 5 days and following the weather channel you are right its been rough in trhis part of trhe world, but not ads bad as the SNOW Blizzard they had when i was here in January, that was something !!!
regards westan
quiggles maybe you were lucky or very experienced but 9 times out of 10 buying over the net in Buffalo without any knowledge of the City or the dynamics of the place will end up being a painfull experience.
the weather was great over 80 today, the kids were playing water fights with some friends kids here in Rochester. We have been in the States for the past 6 weeks with the family and the weathers been great, although we have only been in New york state the past 5 days and following the weather channel you are right its been rough in trhis part of trhe world, but not ads bad as the SNOW Blizzard they had when i was here in January, that was something !!!
regards westan
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