Top 5 for new investors

[heisenberg]

I really like this quote from Shane D from a few years back:

Property Investing like War
Property Investing is like war. You fight a battle (buy a property) and then consolidate your position. Don't overstretch your troops (finances) and be caught too thin, wait for the supply train and fresh troops to arrive. Use the down time to study your opposition (market) and strategize your next battle moves. The end goal is to win the war (retirement) so pick your battles carefully. No use fighting battles for the sake of it. Its about winning the war.

[WGN ex-property manager]

Whenever you sign up for a service, or a transaction (tradesmen, accountant, S&P on a property), always understand the motivation of the other player, in particular HOW DO THEY GET PAID/REWARDED/PENALISED

Once you get this you can understand how their motivation is aligned to and differs from you best interest, so predict any likely ways they might act against your best interests.

Try it at home:

How do the following people in you team get rewarded:
1. Builder
2. Accountant
3. Friendly real estate agent (when you're buying)
4. Friendly real estate agent (when you're selling)
5. Property Manager
6. The vendor (when you're buying)
7. Property educator (careful here, this can get a bit unclear)
8. Guest speaker at your local PIA
9. Your mortgage broker
10. Your Bank (can they get a better return on capital by investing in in you, or somewhere else? Where does the money come from that they lend you?)
11. A council building inspector

[Orkibi]

Property Investment Tips.

For My 20c worth of Tips Please visit:

http://www.propertytalk.com/forum/sh...520#post233520

[CSH]

Its all about cashflow - so your homework on how to calculate cashflow - gross and net! Decide what cashflow figure you are aiming for and stick to it.

[Perry]

On the 'luck' thing, is it a matter of perspective?

Winston Churchill allegedly said: people often
stumble over the truth, then pick themselves
up and hurry off as if nothing had happened.

I got into PI by accident/stroke of luck/blinding
flash of the obvious/????? Could someone else
have had a similar experience/opportunity and
not had the good luck to see it for what it was?
I suspect so.

Substitute 'luck' for whatever suits your outlook.

[revdev]

PS: How the hell does the multi-quote thingummy work??

If you want to multi-quote:

Go to each individual post and click on the icon that has quotation marks and a plus ("+)...do this for each subsequent post.
When you come to the final post you want to quote, then just click on the quote icon, and then brgin typing your reply.

Cheers
G

[zedrex]

Being in said place at said time can be a stroke
of good luck, all reasonable planning aside.

I guess it all depends on your individual perspective, I REALLY think that we CREATE our own luck by our thoughts and actions and attitude - but that's just me!

Unfortunately, I couldn't find that thread. It was very
provocative in a mind-expanding way. Once I'd got my
head around it all, I could see the point. -

I would dearly like to see that thread, anything that is thought provoking is worthwhile

I suspect luck plays a part there, too. It's an oft-touted
piece of advice. It almost always comes with no guidance
about selection criteria.

Yes it is, sadly it would seem in many ways to be achieved by trial and error, a friends PM that they swore by - cost me in excess of $6k, generally however, personal reccomendations are a good place to start as long as you gel with those individuals - getting along with your team has a significant impact on your success or lack of it.

PS: How the hell does the multi-quote thingummy work??

[Perry]

I'm not sure I agree on luck, luck signifies something out of your control (lotto tickets for instance) in my experience most of PI is down to the right place at the right time

Being in said place at said time can be a stroke
of good luck, all reasonable planning aside.

As for prof advisors knowing more than the PI then watch out....hmmm
Nup, I don't agree, if I know more than my lawyer, accountant, broker, tradies, etc., then I reckon THEN I need to watch out.

Unfortunately, I couldn't find that thread. It was very
provocative in a mind-expanding way. Once I'd got my
head around it all, I could see the point.

Get a good, a really good team around you. (Lawyer, broker, etc - all should be ACTIVE PI's themselves)

I suspect luck plays a part there, too. It's an oft-touted
piece of advice. It almost always comes with no guidance
about selection criteria.

[zedrex]

• Did anyone mention luck?
• And some common sense?
• A modicum of business 'nous?'

Also, somewhere on PT is a thread wherein
someone commented that if a 'professional
advisor' knows more than the PI does, watch
out.

I'm not sureI agree on luck, luck signifies something out of your control (lotto tickets for instance) in my experience most of PI is down to the right place at the right time with the right atitude.

Commons sense, yep - by the truckload is good, ditto a bit of business nous, after all we are in this to make money aren't we?!!

As for prof advisors knowing more than the PI then watch out....hmmm
Nup, I don't agree, if I know more than my lawyer, accountant, broker, tradies etc then I reckon THEN I need to watch out. As PI's I think we are more big picture thinkers than detailists, we rely on our "team" (all of whom should be PI's IMHO) to give us the specialist knowledge we require to make our PI goals a reality, we are the ones who pull the information together to see if a deal is going to work for us or not, whatever strategy we are using.

My advice to new investors -
Get a good, a really good team around you. (Lawyer, broker, etc - all should be ACTIVE PI's themselves)
Talk to other PI's (that way you can learn from their mistakes and their successes)
Understand that you will still make mistakes anyway!
Don't be tempted by all the "get rich yesterday" hype that is prevalent around PI these days.
Really, really, really get educated about what your about to get into.
Negative gearing - understand it fully!
Enjoy it, it's a roller-coaster ride but it's a whole heap of fun!

[mortgage broker]

I think that the most important thing in the current climate, is to find out how much you can borrow.

And don't be afraid to ask different banks, at the end of the day you don't wont to spend endless hours looking for something that you might not be able to buy. Or missing out on things that you could.

Oh and if you have been to a lender six months ago, the criteria has probably changed drastically.

[Alien]

Hey Monid,
I just wanted to say that your greatest hits selection is fantastic. I'm new to PT and my head is swimming with all the info you provide from this link. Some great ideas and comments from everyone here that don't always agree but force you to look at all sides! Good stuff for a newbie like me.

[waiopehu24]

Persistence 3 The continuance

of an effect longer than the cause that first produced it.

Jump in and see if you know how to swim. That would be my advice. And if you find out you ain't too good a swimmer i'm sure you'll learn pretty fast!

[Perry]

• Did anyone mention luck?
• And some common sense?
• A modicum of business 'nous?'

Also, somewhere on PT is a thread wherein
someone commented that if a 'professional
advisor' knows more than the PI does, watch
out.

It was an interesting and provocative thread.
Well worth a look. (If it can be found )

Nothing is won without sacrifice.

[Monid]

Hi Red123NZ, I was based in Auckland but now I'm based in Portstewart in Northern Ireland... I'm back in March for a visit though and hopefully there will be a gathering.

Cheers
David

[red123nz]

Cheers Monid, yes I have your page ( best of ) in my book marks and I tried to read one a day Are you based in auckland?


And Robyn as always with the great advice Cant wait to meet you in person