Xmas '06 challenge.

[Dean@Massiveaction]

Looking at the thread title I reckon it's a great idea so.......
I hereby declare "get rich quick" season open. Lets all choose to turbo charge our wealth generation between now and Xmas.
I'm going to increase my net worth by $500,000 by Xmas day.
Anyone joining me????????
Anyone willing to try?????

[Josko]

Anyone joining me????????
Anyone willing to try?????

Hi Dean,

I always look at your and Ron's beginnings and think if only I had 200k or 180k equity, I am positive I could do the same as those guys.

So, I am happy to join you on turbo charging my wealth generation, I will double my portfolio by Xmas.

Though, I would be interested to find out how you would handle my situation Dean and turbo charge wealth generation, do you have time to squeeze me in for a lunch?

Cheers,

[Dean@Massiveaction]

Anytime Ivi. Can do this Friday??

[Ivanhoe]

Anyone joining me????????

count me in!

Anyone willing to try?????

"try" - don't like this word, suggests that as we are "trying" to achieve this there is an other option and chance that we will not.

Anyone willing to ?????

YES! We will!

[Josko]

Anytime Ivi. Can do this Friday??

I look forward to it, thanks Dean.

[Jumpin]

Hey Poomba,
Show me the path mate. My portfolio is slowly growing, but that little annoying voice in my head keeps trying to slow me down. If you find youself in Welly anytime, I would love to buy you lunch.

cheers
Tim

[Dean@Massiveaction]

Hi Tim. Don't wait for me to come to Wgtn, take STEVE GOODEY out for lunch AND DORIEN FORSTER. They can both share with you as much if not more than I know. Get more people with the right mindset around you ASAP.

[Jumpin]

Thanks Poomba,

hoping to meet up with Steve at the Wellington Deal crunching event, then take it from there.

cheers
Tim

[Cliffy]

I'm going to increase my net worth by $500,000 by Xmas day.
Anyone joining me????????
Anyone willing to try?????

I'm in. Can we make it from 1st September?

I always look at your and Ron's beginnings and think if only I had 200k or 180k equity, I am positive I could do the same as those guys.

ivi you don't need money to make money. There are loads of ways to make money without using any of your own. All the deals I do are "no money down" for me.

[Dean@Massiveaction]

Sure, gives me a bit of a head start!!

[SuperDad]

Dean,

I've been thinking abit about your challenge. Firstly, I like how you have changed something often perceived as negative (the "get rich quick" phrase) into something positive. After all, what's wrong with pursuing a get rich quick scheme if that scheme works? Obviously it works well for you and Raewyn, and for other investors here.

However, I'm not going to take up the challenge. I thought I'd take the time to explain why. A lot of people will just read the challenge and laugh, or poo-poo it. I don't want to be one of those people, so I thought I'd offer my perspective here.

My goal in PI is quite simple: I want to increase my (or our - my wife's in on this too) net worth by $2M over the next 10 years. This is not a "grand dream" goal - I won't be satisfied if I fall even $1 short of this target. I fully expect to exceed it, and I'll be trying my hardest to do so. It is enough of a goal to present a genuine challenge, but manageable enough to achieve when broken down into a series of measurable and achievable outcomes.

So why don't I take up the "$500K by Xmas" challenge then? That would be a sure fire way to exceed my goal. Well, I won't be taking up the challenge because I have set my strategy, and I'm afraid to change that strategy so radically at such an early stage in my investing career. Yes, I'm afraid. I know, I need to conquer my fears. However, I think I've conquered quite a bit of fear so far this year. I've conquered the fear of getting stuck in and getting my first IP. Now I need to conquer certain associated fears, such as whether I can get good tenants, and whether my investment will perform as expected. I think that it would be dangerous to also take on the challenge of conquering the fear of making $500K in 4 months. Don't get me wrong - I'm sure that it can be done. I just personally don't want to expand my comfort zone by too much too quickly.

To some of you, this will sound like I'm just making excuses. I am making excuses. But sometimes excuses are no different to good reasons - and I think I have good reason to stick to my strategy at this point. (Sometimes it is difficult to tell the difference between a mere excuse and a good reason. That's why I have been thinking a bit about Dean's challenge, and trying to sort out whether my reasoning is good reasoning, or just me making excuses.)

Best wishes to all of those who do join Dean on the $500K challenge. Can we expect a post-match analysis sometime in the new year?

Paul.

[Gerrard]

Hey SD - You hit it on the head - it has to be within your comfort zone.

I don't think Dean was suggesting everyone has to go for $500k, but that's his example to get everyone inspired.

You can still take up the challenge with your own goal. Mine is pretty small compared with Dean's, but I'm keen to give it a go. More details on mine to come...

Gerrard

[SuperDad]

Gerrard,

That's exactly what I was getting at. My short-term goals are very clear.

1. Finish the renovations on my first IP by this Sunday.
2. Get the place tenanted with quality tenants ASAP.
3. Hold of the creditors for another month.
4. Keep looking for CF+ive property in Hamilton.

Paul.

[Jumpin]

So Poomba,

if I take up your challenge, I need a plan on how to do it. My strategy so far has been B&H's, purchased 10 - 20 under RV, with net approx neutral cashflow (before tax). Increasing net worth by 500k in 4 months requires a bit more creativity unless you are doing some bigger deals, and then cashflow is often a challenge. I havent seen a decent do-up opportunity with anything like a decent margin for the last couple of years. (Perhaps I am too greedy?) Also I found the odd place with subdivision potential, but after doing a few sums on cost for minor dwellings well you just about gotta get the building done for free.
You seem to buy several properties every month - how do you cope with the cashflow challenges this can bring? ie Lawyers fees, valuation, chattels valuation, builder's report etc- these can add up especially if you pull out of the odd deal which looks dodgy partway through your due diligence.
I feel I'm making progress, but I need the next lamp to be lit as its a bit murky down the tunnel.

.....wait for me....!

Cheers
Tim

[Dean@Massiveaction]

Tim, I'm speaking at Masterton PIA next week, come and see me there. I'll buy you a drink!!
And yes 500K was not my challenge to everybody, that is mine. You all decide what your target is.