Virgin Investor Seeks Help

[WebBoard]

From: Mark Keenan


I am looking into buying my first inv property and have about a zillion questions including:
1. Do I need to get a financial adviser\inv property adviser to help?
2. What books are best to help out?
3. Should I get a real estate to manage the property or do it myself?
4. Should I invest in software to help manage the investment and\or choose which one?
5. etc etc (ok so I thought I better not keep going)

I know all the above do not have a "right" answer but I would happy to hear anyone's thoughts, experiences, etc with respect to starting out.

Mark

 

[Glenn]

Reply: 1
From: Glenn Mott


I am looking into buying my first inv property and have about a zillion questions including:
1. Do I need to get a financial adviser\inv property adviser to help?
>>>Try to find a mentor instead, just ask the advice of someone you know that has at least a couple of investment props


2. What books are best to help out?
>>>All of the books by Jan Somers, Robert Kiyosaki (Rich Dad, Poor Dad Author) and The Richest Man in Babylon

3. Should I get a real estate to manage the property or do it myself?
>>>Initially its not a bad idea, keeps you at arms length from tenants and legal stuff while you are getting used to the idea of investing in property. In due course (as you realise that Property Managers actually take the "cream" and don't really do a good job) take on the responsibility yourself...but you must be prepared to "take the bull by the horns" as you are then at the controls of an investment that requires you to have accounting and customer service skills


4. Should I invest in software to help manage the investment and\or choose which one?
>>>With 1 property, I would tend to use Excel or a derivative of it. Teach yourself how to write functions and produce graphs using this package so you can then analyse future cash flows and capital gains. I have 3 props and still use excel however upon purchasing the next one may investigate the PIA software.


5. etc etc (ok so I thought I better not keep going)
>>>Asking questions is for free, best you ask everything on your mind here instead of risking an expensive mistake...people here are happy to share experience with willing listeners

Glenn

 

[Rolf Latham]

Reply: 2
From: Rolf Latham


Hi Mark

Firstly, my usual cut and paste answer.

1. Get yourself a good independent mortgage broker

Then, from the experiences of my clients

2. If it feels wrong it probably is.

3. Be prepared to sometimes be disppointed

4. If the deals seems to good it usually is

5. Get Neil Jenman's Book - Real Estate Mistakes. This provides interesting insight rather than guidance (in my view).

6. Make good use of this forum - just about anything has been thrown around on here.

7. Get onto one of the networking groups being formed - see Meeting point.

8. The deal of a lifetime is available about once a month if you are actively seeking it.

ta

Rolf

 

[michaelg]

Reply: 3
From: Michael G


Mark,

Before you posted this, did you read all the old posts?

Just that, you're not the first new investor to the forum, so many of your questions have been already answered.

If you don't want to read line by line, try keyword searches.

Try doing a individual searches for;

- "advisor"
- "book"
- "manager"
- "software"

This may help a lot.

Michael

 

[WebBoard]

Reply: 3.1
From: Sergey Golovin


Mark,

When they asked Salvador Daly (?) what he thinks about when other people trying to imitate his style he answered

- It is fine, a have no problem with it. In fact it is good that they are trying.

-And why is that?

-It does not matter how hard they try, they will never reach the perfection...

-And why do you think so?

-Well, I myself did not reach it yet...


So, do not worry too much about Mark. Do what ever you think is suitable for you in your circumstances.

Anything goes... as they say.

Serge.

 

[Ken]

Reply: 4
From: Ken .


Mark

I agree with all the above.

You appear to be putting the horse before the cart a bit.

Using a property manager or not, and what type of bookkeeping program to use are things you could look into after contract exchange.

More important for you at this stage is RESEARCH,books first to decide your own plan, then use it for your finance, use it to find the area you will buy in (affordability, cap growth, yield, vacancy rates, personal reasons, etc), use it again to get to know that area better than anywhere else (sale prices for types, streets to avoid, future govt. plans and trends, gentrification, etc), . You will then be able to tell a good deal by yourself and not on R/E agents advice.

When you get into research, the questions you have will increase, post them here, and more knowledgeable people than I will help you answer them.

Most important..DO. There will come a time when the only thing left to do is BUY.

Ken Smith

Above all - Have Fun doing it.