"Want to play, but no equity"



From: Adam Weisser

Hi all.

I'm sorry if this is a tired old chestnut that some poor slob of a newbie keeps bringing up and the old hands roll their collective eyeballs, then look at the first paragraph and say "oh, not this one again. And look! He's even started with the mandatory apologetic paragraphs to try and make up for the fact that he's about the annoy us! At least he hasn't used the <BLINK>blink</BLINK> tag..."

So anyway...

I've been reading book after book for the last 7 months.

I want to get into the property game so bad I want to cry.

But I have no equity, no assets, no nothing. It's early days in my saving career and with the help of the Wife and the Husband (he gets a capital too!) I have a plan and I am saving a deposit for my first house (to live in first so I don't feel like I'm feeding my rent money to my cat Travis).

From what I'm reading, I really need some equity behind me before getting into the IP game.

I think I made this same claim at the first Melb Freestylers meeting and Miss Terious mentioned Lease Options. Now I must admit I haven't checked them out yet. I kind of feel the market is saying "let's see what happens".

Am I correct in my assumption that to get the ball rolling I really need to have a few ten thousands behind me?

Desperately Seeking IP,
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Reply: 1
From: W W

Have you heard of Options?

You could negotiate an option on a property for a relatively minor amount of money, say $2000. You could then lease it or sub lease it and do some minor renovations etc and then you could tell the option or you could possibly get 100% finance and buy the property.

I know a guy called 'Roy' who did this. He paid $20,000 for an option and made more than $2mil.
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"Re: Want to play, but no equity"

Reply: 1.1
From: Yuch .

But ..... Roy McDonalds made his money with options while the market was
booming (the past 5 years).

PS. I've been to his seminar as well ;)


Yuchun Chen
Market Management Systems
(02) 8838 5042

I am the Master of my FATE, the Captain of my SOUL, but a Slave of my

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Reply: 2
From: Kevin Forster


The first thing is to stick to your plan. From your plan you should have a rough idea on when you can buy your first IP. There is not a lot you can do before then from what you have written. You want to build a firm foundation as a base for your investing.

I first discovered IPs about 7 years ago from reading Jan Somers book - Investing in Residential Real Estate. At that stage I had consumer debt, no assets and an income of about $18k per year. No hope of buying an IP. Last year I bought my first 2 IPs. What did I do for 6 years?

Read heaps - not only on investing but also personal growth books.
Got rid of all consumer debt and started saving.
Changed careers and moved into IT which quadrupled my income.
Bought a house to live in and paid down the mortgage.

So even though you're not out there buying IPs, the time until you're able to can be put to very good use and get you into an even better position.

There are probably many other people on this forum that had to wait a period of time to get the financial situation right before buying their first IP. So don't worry some of us are a bit further down the track. Also it's not a race - you achieve at your own pace.

Hope this helps

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