trading virgin seeks help!

[MareeM]

Hi
I was wondering if anyone could recommend a good book to educate me about trading/flicking. Currently I am only a buy and hold PI but am keen++ to get into trading - mainly so I can create more equity so I can buy more PIs.

So can anyone out there offer advice to this trading virgin? I live in Rotorua so am looking at trading properties here. I've already got my eyes on several possibilities but as I'm inexperienced it would be good to run things past someone who's been there done that.

Does anyone from Rotovegas with the desired knowledge want a free lunch??

Cheers

[Cliffy]

Best thing you could do is the GBI Sandwich Lease Options and Trading course.

Teaches you strategies for trading and the LO are great exit strategies if you can't sell.

Books - I liked Ron LeGrand's "How to be a quick turn real estate millionaire"

[MareeM]

Which GBI course best for starters?

Thanks Cliffy

I had been considering doing a GBI course but wasn't sure whether the SLO or Multiple Finace Strategies would be more helpful.

I heard Dean Leftus speak in Rotorua here recently and he definitely advocated the GBI training - but he did say he found the SLO confusing - so I kind've thought that if he found it tricky it'd be way over my head at entry level!

What do you reckon?

[whitt]

I heard Dean Leftus speak in Rotorua here recently and he definitely advocated the GBI training - but he did say he found the SLO confusing - so I kind've thought that if he found it tricky it'd be way over my head at entry level!

What do you reckon?

Have only done the SLO/ Trading course and yes it is full of information to absorb. That is why I am going to take up there offer of being able to re attend for free.

[Cliffy]

I have done both courses and they complement each other, but if you want to get in to trading I would definitely recommend the SLO course first.

[MaryJ]

Let's do it!

Hi MareeM - I enjoyed meeting you in Rotorua!
I'm also keen to get educated in trading.

I never really considered SLO as an exit strategy for trades. That really makes sense as a good 'insurance' in case one gets stuck with a property that one wanted to trade.

Maybe we could attend a SLO course together - that might be fun!

Cheers
Mary

[MareeM]

SLO course and trade scenario

Hi MaryJ

It would be GREAT to do this together! I think there is a SLO course in Taupo in September - will check it out. Have stayed at Waireki resort before and it's nice...also means we can lounge around in the hot pools after the course. And there is a good Thai restaurtant in Taupo...yep, I'm looking forward to this course already!

I am about to put an offer in for potentially my first trade - deceased estate in good area. House has 4 bdrms, 3 bathrooms, double garage and is North facing. About 20 years old. So I'll offer 300K (and be prepared to go up to 310). I've figured reno will cost 25-30K and then it will be worth about 370-390. It's mainly cosmetic stuff as ugly inside. But let's be conservative and say I get 360. And there's the debt servicing to pay for in meantime. Is this worth it?

...of course my offer probably won't even get acepted, but it's good practice to speculate.

Any experienced traders got a spin on this?

[whitt]

Hi MaryJ

It would be GREAT to do this together! I think there is a SLO course in Taupo in September -

August Fri 25 Night for few hours,Sat 26 full day ,Sun 27 full day.

...of course my offer probably won't even get acepted, but it's good practice to speculate.

Think positive otherwise you will never get deals. If you have sourced a true motivated vendor then you have as good a chance as anybody if your terms and conditions are favourable. Keep finding Motivated vendors and making offers and you will suprise yourself. Why are you only offering $300K do you have a reason for this figure?

[MareeM]

Can anyone recommend an accountant?

Of course you are right Whitt about thinking positive - thanks for the reminder. The 300K figure was because I know vendor turned down 290K.

...Now to a different topic:
Can anyone recommend a good property accountant in the Rotorua/Bay of Plenty region? I need someone who is familiar with Trading accounts and SLO's.

Cheers

[Fritz]

Hi MaryJ
facing. About 20 years old. So I'll offer 300K (and be prepared to go up to 310). I've figured reno will cost

conservative and say I get 360. And there's the debt servicing to pay for in meantime. Is this worth it?

...of course my offer probably won't even get acepted, but it's good practice to speculate.

Any experienced traders got a spin on this?

MareeM,

your numbers:

BUY 300K
RENO 25K
HOLDING & MISC say 3 month to sell 8K
RE FEE SELL 18K

SELL 360K

PROFIT: 9K

MINUS GST on this & TAX 33% ie 4.5K

ie after tax profit 4.5K

NO would be my answer!

What is your exit strategy if it fails to sell ?

Lease, rent, wrap ? Can it be done ? Or will you be the one I am buying it off for 280k in a mortgagee auction ?

This will sound harsh, if you want to speculate play lotto. If you want to trade take some people for lunch, do some courses, understand structures, work as a spotter or get some experience. Understand making offers and GST, registering your entity for GST BEFORE the offer goes unconditional if you are starting out, protecting your buy and holds or family home. Learn, get some knowledge and take some action. Enrol in Deans course or the SLO course.
Anything before you go and make offers.

As a superb accountant in the BOP area I highly recommend Mick fom JB Lloyds in Mount Maunganui. 07 5753790

Take care and have fun.

Fritz.

[nzfrazer]

This will sound harsh, if you want to speculate play lotto. If you want to trade take some people for lunch, do some courses, understand structures, work as a spotter or get some experience. Understand making offers and GST, registering your entity for GST BEFORE the offer goes unconditional if you are starting out, protecting your buy and holds or family home. Learn, get some knowledge and take some action. Enrol in Deans course or the SLO course.
Anything before you go and make offers.

Wow - great advice Fritz!

Frazer

[cube]

Enrol in Deans course or the SLO course

Dean's running a course?

[Ivanhoe]

Not anymore AFAIK, at least there will be new courses in MIT-pooomba format, I think it will be MIT-Rustica from now on.
Still buying Dean a lunch could be a very good idea!

[nzfrazer]

Has anyone done / doing the Acumen course? Feedback, recommendations?

How about the Olly Newland one - I see he has another course coming up in August.

Frazer

[Dorien]

I am about to put an offer in for potentially my first trade - deceased estate in good area. House has 4 bdrms, 3 bathrooms, double garage and is North facing. About 20 years old. So I'll offer 300K (and be prepared to go up to 310). I've figured reno will cost 25-30K and then it will be worth about 370-390. It's mainly cosmetic stuff as ugly inside. But let's be conservative and say I get 360. And there's the debt servicing to pay for in meantime. Is this worth it?

...of course my offer probably won't even get acepted, but it's good practice to speculate.

Any experienced traders got a spin on this?

----------------------------------------------

I have been asked to comment on these numbers. I think it pays to stay conservative. If you are prepared to go to $310, 000 for your purchase price and then spend $30,000 on repairs. The deal owes $340,000 in total. They you think it is worth $370,000. To me these numbers are far too skinny especially in a sliding market. It does not fit the formulas we teach in SLO which are mostly based on percentages rather than numbers

If you are really keen on this deal I would stick to a straight option and certainly not get into any double settlement situation where you take over ownership.

Dorien Forster