Early 50s noob investors

I have just finished reading this, but a fair swag of it did not ring quite true with me somehow.

 

Helps to read it again, and again, and again.
Try different authors.
Different styles.

One book will rarely make one an expert.
Nor one seminar.
Nor one mentor.

What specific parts did not ring true?

As the sayings go:
Quality answers come from quality questions.
Quality questions create a quality life.

 

A random thought from a fossilised brain.

Dead keen enthusiasm is fraught with danger. Has the potential to end in undesirable outcomes.

 

It is possible to learn them with time, or else build a team and leverage their help to make the plan work faster. You just need to make good decisions about who to work with in that case.

 

Many, but the major one part in the book that does not ring true is that he is no longer invested in property but has sold off his entire stake in his property portfolio to his business partner (they parted ways) and is making his fortune writing books and running paid seminars and paid courses on property investment - alarm bells.

 

Why is that a problem? It may be that running seminars and writing books is a less risky way to make money. That doesnt mean property investing doesnt work.

 

He also runs a US property fund that has done exceptionally well - I looked at it early on and didn't invest - wish I had. Of all the investors to follow, I rate Steve the highest.

 

OK lets ask the silly question..what are you tryin to acheve and in what period of time...buyin' 5 properties just for the sake of it....is just plain stupid. Work backwards....how much income do ya need. A rule of thumb is if you want 70k per annum by 60....assuming you and the Mrs has 800k in super...and using the 4% rule you need about another 950k in net assets in real estate.

So 5 properties can probably achieve this...

Oh by the way...a lot noddies ..including some brokers will tell you can't reach 5 properties..it is definitely possible....though you may need to start with the majors and move to non-tradtional lenders like Pepper, Liberty, etc....

 

What will these lenders offer different to banks?

BTW, we simply want an income of $60K - already covered in above comments

 

They are much easier to service.....and use them as a last resort and have an exit strategy in place.....

 

A broad generalization...the fundmentals are the same...it is just a 7-10 year timeframe is required.

Too many younguns tryin to make a quick buck..and failing.....

 

After investing for some time. Some make a discovery.
There’s ‘investing in real-estate’. Then there is ‘being in the business of real-estate’.
I perceive it as the difference between sitting on a merry-go-round and racing in the Daytona 500.

The game you play depends on your WHY, and Risk-Profile.

Like the song-that-never-ends, some people start playing the latter not knowing what it was.
They talk as if they are simply investing in real-estate. Yet they also develop, renovate, and more (become brokers, run seminars). Likely, they also have higher than average incomes.

It is important to work out what makes sense for you. If you simply want to retire comfortably, buy-hold-wait is a great strategy that yields results when done consistently, and over time. I would say more like 20+ years, not the 7-10 @sash stated.

I did that too. For a time. I’m now in the business of real-estate. I haven’t purchased property since 2012. On paper, my net-worth hasn’t grown much. I’ve been busy you see. I’m working on building a faster car. Every dollar I make from winning races, a great majority goes back to improving my ride, and funding my pit crew. Even considered selling down my portfolio to supercharge my engine.

For those sitting on the merry-go-round, it seems silly for me to be working away, I could be going around too “weeeeeeee”. But my joy comes from how fast I can go.

I’ve had quite a few false starts, many breakdowns, even the odd fender bender. I’ve never raced a fast car before. Those who have been sitting on the merry-go-round for a long time, they laugh at the younger racers. With good reason, many don’t race for very long, or worse, they crash and burn.

I’m fortunate. I’ve met some seasoned racers. The ones that kept at it. They've had great times, they went so fast, and their winnings? They used it to build some great nest-eggs in their last years.

Perhaps Daytona is too slow for Steve McKnight. Maybe he will Elon and fund a rocket to Mars.

Doesn't make his books on merry-go-rounds, and racing any less relevant. Your alarm bells, for me were the first time I heard roaring engines.

 

Each to their own....I am in the business of making money...not race cars.....though it could be hobby once you have made the money...

So what is the moral of the story.......hobbieslike racing are expensive..and they require...you guessed it money.

 

Maybe.

Building efficient race cars takes time.
Becoming a winning driver, even longer.

I win enough races that I replaced my PayG in 24 months. Now I want to win Gran Prixs. I guess I like the wind in my hair.

I'm sure you can relate. I know you drive race cars too.

As several succesful racers have told me "a business can buy many properties. A property cannot by many businesses".

I like to delay gratification and then take 2 marshmallows.

 

Relevant Thread.
Grow Capital First

 

A successful business can buy way more than just property.

 

Ask the question...if you got sick today...can your business earn money..if not then you have a job.

 

Depends when in the lifecycle.
No different for real estate.

Passive real estate investing successfully is a myth.