I'd be surprised if anyone hasn't heard of the KISS principle . Keep It Simple , stupid ...
Thought I'd mention what I saw as the biggest trap people fell into in the last Cycle .
Back in 2002 , The biggest , baddest Monster in the playing field was Tyrannosaurus Kiyosakis .
There were regular somersoft gatherings where disciples would play games and worship as the high altar of TK , Cashflow .
I myself had several such gatherings at my house , and although I said the words and participated , I had my doubts .... could it be that simple .
The holy grail was to own a business.... Joint ventures were desirable . Highly cash flow positive properties .... nirvana .
I was approached by people to go into joint ventures , fund wraps ( it took me about one minute to work out there was alot more profit in it for them .... I'm not that dum RF .....) , put money in a Five acre subdivision in airley beach ( 800 for five acres waterfront at airely , sounds tempting , but it f....ed the three people who did go with it ) , invest in a realestate agency ( paper presentation very professional , and they were told by the bank that it was one of the best presentations they'd ever seen , but the reality was the principle had never run a business and ( my wife was quick to point at the time ) spent too much time in the chat room ... you could buy 1/20 shares and we contemplated buying one , but some one rushed in and bought all of them . (sorry to bring that up )
I was also told I could make my money work for me 7 times ...... many of the people who believed that line still regret listening.
Off forum by ex brother in law has never recover from getting involved with Henry Kaye and one of my song writing friends spent many years in financial limbo waiting to get out of a " capital guaranteed " loan with a major investment bank. The capital was guaranteed , but they still had to make the repayments when the market went south and they made no return.
The reality , I can't recall one success story from any of these " Smart ways " to make money.
The people I know who made money , found a formula that worked for them and went for it.
Nivia was the king of the deal . She would see a deal that no one else saw and made it work for her ( probably the best I met on the forum ) .
Micheal Croft and GCC were builder developers , stuck to what they did and did it well .
Waverley Bay could smell a bargain at 1 Km and negotiate the owner into a slobbering wreck or walk away and go straight on to the next one until he found it ( I know pne agents who he bought though and he hated him with a vengeance ... I'm not joking ....we got one deal because the agent didn't want to go with him ... ) but most of the time they still delt with him .
Ross V was the king of the Cheap reno , hands on and did everything himself.
They found a nichee and did it well.
Most people are lucky to master one set of skills in life.
You don't need to " master " property investing in order to do well at it .
The basic are simple . If you get these right , you will do much better financially than the majority of the people in Australia .
By getting the Basics right for Half a Cycle I've gone from a position of financial frustration to one of relative ease.
Running a business is a complicated frustrating time consuming thing. I did it for 19 years. I'm glad I'm not doing it now .
Joint ventures are time consuming and risky . You have to rely on other people who's number one interest IS NOT YOU....
If you rely on advise from advisers , who is getting the most benefit from the structure they set up ? When I saw one proposed structure my reaction wasn't " wow , that's a good system " , it was " wow that's a good system for the advisor " ... The up front commissions were impressive , why didn't I think of that ... If I had though of I might have used it for myself , but I wouldn't have turned it into a business model .
I have a couple of what I think are different approaches to property investing that I'm going to look at developing , but I'm going to run with them myself and if they work , get my kids to do them so they can get an ongoing benefit from them.
If something is that complicated that someone has to spend time explaining it to you , it is not for you.
You need to understand what you are doing why you are doing it.
My pet hate , " it's tax advantageous " . If an investment needs a tax set up or some sort of scheme to make it work , to me that indicates it is basically flawed. Fine for Canberra but not for me.
This may sound unkind to fourmities , but I think it's true . If you were the type of person who was going to set up a highly successful business and make a Mega Fortune running it , you wouldn't be hanging around an internet forum chatting about property investing .
I doubt the Harry Trubahofs and John McGraths of the future are here . They're out there already making plans or, like the school friend of my nephew who made a fortune in an internet start by the time he was 30 , you're relaxing on a beach in Mexico . ( if you want an interesting job , my nephew worked for him for a while on this guys next project . His job to chaperon the girls who were appearing in the " beach babes of mexico " calendar )
Property investing is simple .
It takes imagination and creativity to f..... it up
Cliff
Thought I'd mention what I saw as the biggest trap people fell into in the last Cycle .
Back in 2002 , The biggest , baddest Monster in the playing field was Tyrannosaurus Kiyosakis .
There were regular somersoft gatherings where disciples would play games and worship as the high altar of TK , Cashflow .
I myself had several such gatherings at my house , and although I said the words and participated , I had my doubts .... could it be that simple .
The holy grail was to own a business.... Joint ventures were desirable . Highly cash flow positive properties .... nirvana .
I was approached by people to go into joint ventures , fund wraps ( it took me about one minute to work out there was alot more profit in it for them .... I'm not that dum RF .....) , put money in a Five acre subdivision in airley beach ( 800 for five acres waterfront at airely , sounds tempting , but it f....ed the three people who did go with it ) , invest in a realestate agency ( paper presentation very professional , and they were told by the bank that it was one of the best presentations they'd ever seen , but the reality was the principle had never run a business and ( my wife was quick to point at the time ) spent too much time in the chat room ... you could buy 1/20 shares and we contemplated buying one , but some one rushed in and bought all of them . (sorry to bring that up )
I was also told I could make my money work for me 7 times ...... many of the people who believed that line still regret listening.
Off forum by ex brother in law has never recover from getting involved with Henry Kaye and one of my song writing friends spent many years in financial limbo waiting to get out of a " capital guaranteed " loan with a major investment bank. The capital was guaranteed , but they still had to make the repayments when the market went south and they made no return.
The reality , I can't recall one success story from any of these " Smart ways " to make money.
The people I know who made money , found a formula that worked for them and went for it.
Nivia was the king of the deal . She would see a deal that no one else saw and made it work for her ( probably the best I met on the forum ) .
Micheal Croft and GCC were builder developers , stuck to what they did and did it well .
Waverley Bay could smell a bargain at 1 Km and negotiate the owner into a slobbering wreck or walk away and go straight on to the next one until he found it ( I know pne agents who he bought though and he hated him with a vengeance ... I'm not joking ....we got one deal because the agent didn't want to go with him ... ) but most of the time they still delt with him .
Ross V was the king of the Cheap reno , hands on and did everything himself.
They found a nichee and did it well.
Most people are lucky to master one set of skills in life.
You don't need to " master " property investing in order to do well at it .
The basic are simple . If you get these right , you will do much better financially than the majority of the people in Australia .
By getting the Basics right for Half a Cycle I've gone from a position of financial frustration to one of relative ease.
Running a business is a complicated frustrating time consuming thing. I did it for 19 years. I'm glad I'm not doing it now .
Joint ventures are time consuming and risky . You have to rely on other people who's number one interest IS NOT YOU....
If you rely on advise from advisers , who is getting the most benefit from the structure they set up ? When I saw one proposed structure my reaction wasn't " wow , that's a good system " , it was " wow that's a good system for the advisor " ... The up front commissions were impressive , why didn't I think of that ... If I had though of I might have used it for myself , but I wouldn't have turned it into a business model .
I have a couple of what I think are different approaches to property investing that I'm going to look at developing , but I'm going to run with them myself and if they work , get my kids to do them so they can get an ongoing benefit from them.
If something is that complicated that someone has to spend time explaining it to you , it is not for you.
You need to understand what you are doing why you are doing it.
My pet hate , " it's tax advantageous " . If an investment needs a tax set up or some sort of scheme to make it work , to me that indicates it is basically flawed. Fine for Canberra but not for me.
This may sound unkind to fourmities , but I think it's true . If you were the type of person who was going to set up a highly successful business and make a Mega Fortune running it , you wouldn't be hanging around an internet forum chatting about property investing .
I doubt the Harry Trubahofs and John McGraths of the future are here . They're out there already making plans or, like the school friend of my nephew who made a fortune in an internet start by the time he was 30 , you're relaxing on a beach in Mexico . ( if you want an interesting job , my nephew worked for him for a while on this guys next project . His job to chaperon the girls who were appearing in the " beach babes of mexico " calendar )
Property investing is simple .
It takes imagination and creativity to f..... it up
Cliff
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