Getting Started

[Omad]

Hi All,

Just wanted to say great forum and thanks to all those who contribute. I have been reading as much as possible and currently working my way through Monid's essential threads, lots of great stuff in there.

I am based in Taupo and looking at buying my first IP and wanted to make sure I am going about it the wright way. From what I understand so far (which probably isn't that much ) I should:

1. Determine what I want from property (Goals) and write it down. Hard part here is knowing what is actually achievable, 70K passive in 5 years 200K in 10??

2. Based on my goals work out a plan to achieve them. At this stage looking at buy and hold, preferably +cash flow though this is going to take a lot of work to find.

3. Get my team together, lawyer & accountant (anyone recommend someone in Taupo?), broker (already done, thanks Mike), mentor (any experienced investors in the Taupo area interested in regular free coffee's/lunch?).

4. Set up the appropriate structures.

5. Take action and start achieving my goals!!!

When I look at it written down it all looks pretty easy. Have I missed anything? I would appreciate any and all comments and suggestions.

Thanks for reading.

[RonHoyFong]

Saying you will TAKE ACTION is not enough!

Hi Omad

Saying that you will TAKE ACTION is often not enough.

1 Go make appointments now with heaps of Real Estate Agents

2 Go make heaps of appointments now with Real Estate Agents.

3. Select an agent if you can who is also an investor.

4. Select 2 or three areas around town and become an area expert. Only then will you spot a bargain when it arises.

Cheers Ron
(An ex-first time investor)

[Avalon]

1. Determine what I want from property (Goals) and write it down. Hard part here is knowing what is actually achievable, 70K passive in 5 years 200K in 10??

Whatever you think you can achieve - think again - but bigger .

(OK - maybe im not in a position to actually spout that - having not got there yet - but hey - I think its good advise anyway).

Whenever you write down one of those goals - think about how much "more" it could be. Do you want to travel round the world? Great - how about making it "in 1st class? (Or my hubbys goal of doing it in about a minute in a space shuttle )

If you reach for the stars and dont make it - you will still end up on the moon, but if you only reach for the moon and dont make it - you are gonna run out air very quick. Have fun with this bit - Ive found it helps with "getting going" if you can have a laugh about what you will do with your squillions when you get them.

And some advise I got last week - dont forget to set "mini goals" or rewards for the small step you take getting there. You dont have to wait till you can own your own fleet of cars.

Hope that helps.

[Yea'Na'Eh]

Hey Omad, I'm also based in Taupo and I am keen to catch up if you like. Although not a "seasoned" investor, it is something I'm pretty passionate about, to the point of boring all within ear shot. Send me a PM if you like.

[Orkibi]

for us lot who live in the south

Hi Ron,
Can you suggest how one can become an area expert, if he live 6h (or more) away?
(for us lot who live in the south.)
thanks
H

[xris]

Hello omad,

Why not tell us what you want to do?

I don't mean $x per week coming in after x years, or anything as specific as that, but rather whether you want to be an investor (building up nett equity through buying rental property), a trader, a developer or what?

xris

[RonHoyFong]

Become an area expert !

Hi Ron,
Can you suggest how one can become an area expert, if he live 6h (or more) away?
(for us lot who live in the south.)
thanks
H

Orkibi - Don't blame me for your problem of living in the South. Opportunities are everywhere... seek and you shall find!

There has been a number of big boys (including Dolf de Roos) who are finding fortunes in Queenstown, and so could you.

You could try Dunedin and /or Christchurch after all its only a few hours drive from where you are. I hear some opportunities are happening in the West Coast of the Mainland.

In regards to Omad, he has Taupo, Rotorua, Tokoroa, Palmerston, Tauranga, Wanganui, Hawkes Bay, Hamilton, and even down in your area south!

PS- Did you know that there are more people living within a 2 hours radius of Hamilton than anywhere else in the country.

Cheers Ron
(The Happy House Hunter)

[Monkeyboy]

Action is almost always going to get you there. The first step is also one of the hardest to make. Focus. Always be ready. Enjoy the ride. Look forward to your successes and learn from your mistakes.

[Omad]

Thanks for all the replies guys, haven't got time at the moment but will respond soon.

[Omad]

Saying that you will TAKE ACTION is often not enough.

1 Go make appointments now with heaps of Real Estate Agents

2 Go make heaps of appointments now with Real Estate Agents.

I'm in the process of this now, my biggest challenge is I work six days a week,(this is not going to be an excuse for not taking action) monday being my day off. I can see time management skills something I am going to need to develop fast. Is there anyone else who successfully invests with limited time, would love any tips.

Whatever you think you can achieve - think again - but bigger .

I like what you are saying here, the biggest thing for me is I'm not really into the flash cars, toys and stuff, its not what is going to get me motivated to do the work. I am really after time, I want to be able to do what I want when I want, I know I will always work but I want to be working for myself when I want and not for someone else when they tell me to.

Hey Omad, I'm also based in Taupo and I am keen to catch up if you like. Although not a "seasoned" investor, it is something I'm pretty passionate about, to the point of boring all within ear shot. Send me a PM if you like.

Will PM you

Why not tell us what you want to do?

I don't mean $x per week coming in after x years, or anything as specific as that, but rather whether you want to be an investor (building up nett equity through buying rental property), a trader, a developer or what?

Great question, I've been thinking about this since I read it. Once my experience and education increases what I want might change but at this stage I want passive income. I see myself obtaining this through buy and holds and I don't want to be relying on capital gains for my strategy to work. I consider trading and developing to be higher risk for someone just starting out, once I have more experience It's definitely something I will look into.

Action is almost always going to get you there. The first step is also one of the hardest to make. Focus. Always be ready. Enjoy the ride. Look forward to your successes and learn from your mistakes.

Sounds like a plan

[Monid]

Hey Omad, welcome aboard

Sounds like you have your head screwed on right and a good sense of your goals, some good advice already here.

In terms of looking for cashflow positive properties, you will need to look for properties with some kind of twist, such as bad advertising, poor appearance, or an easy conversion from 2 bedrooms to 3 bedrooms.

Cheers
David

I like what you are saying here, the biggest thing for me is I'm not really into the flash cars, toys and stuff, its not what is going to get me motivated to do the work. I am really after time, I want to be able to do what I want when I want, I know I will always work but I want to be working for myself when I want and not for someone else when they tell me to.

[Avalon]

I like what you are saying here, the biggest thing for me is I'm not really into the flash cars, toys and stuff, its not what is going to get me motivated to do the work. I am really after time, I want to be able to do what I want when I want, I know I will always work but I want to be working for myself when I want and not for someone else when they tell me to.

Oddly enough - we are in pretty much the same boat. Although we do have a special car each on our dream list - mine isnt an expensive one - its just something that for lots of reasons means a lot to me. For the rest of it - it is indeed time we want - rather than stuff.

The thing with goals - is that each of us can have wildly different ones. One persons reason for putting the effort in can leave someone else cold. As long as they are YOUR reasons, no one can say thay aint good enough. You dont HAVE to have a fleet of flash cars

[Omad]

In terms of looking for cashflow positive properties, you will need to look for properties with some kind of twist, such as bad advertising, poor appearance, or an easy conversion from 2 bedrooms to 3 bedrooms.

I was thinking that in order to buy +ve CF properties I would have to be putting in a lot of very low offers, which I guess relates to bad advertising and poor appearance, more chance of your low offers being accepted.

As well as adding an extra bedroom would looking for properties with large sections that you could put another dwelling on be a way of turning a property +ve CF or would the cost of building keep the figures in the -ve? I realize that it would depend on each individual property but generally is this what is working for people? What would be the minimum size of a section for adding another dwelling?

[FreezingandHot]

I was thinking that in order to buy +ve CF properties I would have to be putting in a lot of very low offers, which I guess relates to bad advertising and poor appearance, more chance of your low offers being accepted.

As well as adding an extra bedroom would looking for properties with large sections that you could put another dwelling on be a way of turning a property +ve CF or would the cost of building keep the figures in the -ve? I realize that it would depend on each individual property but generally is this what is working for people? What would be the minimum size of a section for adding another dwelling?

I would advice against subdividing at your early stage of investing, there have been lots of advice here about the pitfalls of doing the stategy with little experience, know the full costs involved, talk to a surveyer, duty manager at your local council, before you buy anything, there are even seminars about using this type of strategy.

A simple rental maybe the best way for you to go this early on.

FH

[Omad]

I would advice against subdividing at your early stage of investing, there have been lots of advice here about the pitfalls of doing the stategy with little experience, know the full costs involved, talk to a surveyer, duty manager at your local council, before you buy anything, there are even seminars about using this type of strategy.

A simple rental maybe the best way for you to go this early on.

FH

I was not thinking of subdividing, just adding another dwelling and keeping it on the same title to increase the income. Can you do this or does it have to be subdivided to add another dwelling?