How to Optimise Cashflow?

I didn't read the post I got sent a note from ATO..my liability was zero.....I too am confused. So will run around chasing my tail....got to luv bureacrats in Oostralayaaaa.....

 

Ditto...but under company structure....and you correct varies from state to state...

 

Correct...and it depends on your longer terms strategy and how it needs to be done.

 

I like my trusts but I have every entity under the sun - personal name, trusts and SMSF. It has to be a balance of work vs reward in terms of the cost of having a trust being the work and the reward the maximised cashflow. We distribute to 4 adults and 3 minors - so it can be very effective for us.

 

I optimise cashflow by not having an office and working anywhere

 

..like Bali.????...isn't that like flying to Melbourne or Adelaide or Brissie (from Sydney perspective) for you guys?

 

Bali is 3.5hrs from Perth and same timezone - we call it the Perth northern suburbs Bali is such a part of Perth that there is a direct flight to Port Hedland for FIFO peeps.

This is actually Bintan Island which is also part of Indonesia but you get to it by ferry from Singapore. I'm actually one hour behind Perth up here.

 

Much cheaper for us to fly to bali than it is to even Adelaide.

 

Thats cos people actually want to go to Bali

 

debatable.

 

Called a few banks, flat no to any review, maybe need to ask for discharge and look at going elsewhere on a couple, or fix.

Main way we have maximised cash is buy well, nearly all agents have underestimated rental , just doing one now that agent said would be 250 max, know it will get 310-320 as is !. We also ignore when agents suggest doing a full reno, we do the physical work and do cosmetics and usually spend very little on material For instance we could have done full kitchen and bathroom on one in mind and return would be the same, don't make assumptions, look at what others are taking for what price before spending cash.

Look at all leases, make sure they are reasonable and not behind, look at insurances, check if over insured etc etc.

Hey Sashca, see how you replied to this post ? , this is much easier to read and follow than when you reply above the quotes, cause then your reading the reply before the question or posters position your replying too....

 

Nice legs...

is that your pool boy over there ??? lol

 

Yes that is Ketut the pool boy. My name is Rhonda.

My top 10 for cashflow maximisation

1. Review your setup. As your portfolio, journey and age mature make sure your entities are the best for you stage
2. Review your accountancy practices. Talk to your accountant about how you can minimise their fees - this may be having a spreadsheet, software (Xero, Sasuu etc), bookkeeper. Then spend your accountancy time and fees on making the most of your situation rather than number crunching
3. Review your insurance policies - IPs, cars, home and health insurance.
4. Review your mortgages - ask for discounts, threaten to leave - the retention team is often the one with the biggest power to offer discounts. It's not all about rate at the end of the day - don't get locked into bad products in the search for rates
5. Review your rents - make money when vacancies are tight to help you through the times when vacancies are high and you need to drop rents
6. Review your maintenance - put aside or spend $500 a year on maintenance. Think of it like a sinking fund for a body corporate. Then when the money is needed it's not a crisis. Keep this money in offset or savings bonus account.
7. Be nice to your tenants - send them a small pressie at Christmas - I like to give them movie tickets. A small touch goes a long way when it comes to tenants thinking about leaving
8. Review your PM and contract - if you have multiple properties with one PM then negotiate the management fees and other fees. In WA we have rental inspections at 6wks then every 3mths there after - consider 6wks, 3mths then if all going well every 4mths so it's 3 a year than 4 a year.
9. Review yourself - sometimes this is about mindset, sometimes just your health. A healthy body and mind are more able to think smarter and follow through with goals.
10. Value add, value add, value add. What can you do to your portfolio to improve the cashflow
    • renovate
    • add another room
    • kick it to the kerb
    • subdivide off rear block
    • develop
    • turn it into a brothel and rent out by the hour

 

What was that about you can't teach an old dog tricks...

 

PS don't wear glasses when tanning

Don't give some of the members who run share houses ideas

There is a new business op, AirBrothel

Too late, we know you can do it

 

Yep...as part of the new business model..and moving with the times.I also have developed an App that plays the heavy which skims 10% of takings as "Protection Money" if you don't pay...AirBrothel get subjected to a virus till you pay up.

 

Didnt realise there was anything further behind Perth. What are you in...1996 or what?

 

Hey MTR which Trust structure did you set up if you dont mind me asking?

 

My current accountant recommends one trust for each property. How many properties per trust would you generally go for in your own portfolios? @MTR @sash @Terry_w @Xenia
@D.T. @DaveM@Blacky @Westminster @Ace in the Hole Sorry if i missed anyone on this thread!

 

Any reply will be too vague to have much meaning. If it was a discretionary trust for example - what is the structure of the trustee, the shareholdings of the trustee, the terms of the constitution, types of shares, terms of the trust, is it open or closed, default beneficiaries, structure of the appointor roles, what powers, restrictions, funding of the trusts, related party loans, security etc etc.