Is having a mentor important?

@Tim & Chrissy

So 12 years, 5 mil with 2.5 equity. I think its very doable, but you're going to have to try your best to choose places with good potential for capital growth while you are able to balance CF at the same time.

There are so many different ways to do this. One possible way might be to keep doing what you are doing now. Grow your portfolio with good CG potential properties whilst managing cash flow. I would be trying to make every purchase a BMV purchase, 6-9 o'clock of the cycle and maybe adding value potential. Obviously I don't know your financials (broker will advise you on your position as you keep building), but that is one approach that can work, though there are many. As your experience builds you may also want to employ some adding value strategies to give a boost to your equity if you think it matches your risk level. But there are so many ways to work this.

 

Copy /paste to my goals book!

Skip buy and hold and go to developing! Speed things up!

 

Duplex we just purchased is in Brisbane 4500 yield of 6.2% and good depreciation. We played it pretty safe.

Previous place was a BMV, $85k reno. Comparable house next door (half the floor space but high quality finish) then sold a few months later for $265k above what we paid.

We are at max serviceability now, so we need either income increase (unlikely), APRA to relax or different asset class such as index funds. Or just pay down debt and wait for an extended period.

 

We considered developing but probably not enough cash to do it and too risky with the knowledge level we're at, too many unknowns (although I do know the Penrith DCP and LEP almost back to front from years of toying with the idea!)

 

Yeah...the serviceability can be annoying.

 

....but that is just one strategy and why do you think most efficient?keep reading and researching and reviewing various strategies on PC that will improve yield, cashflow and timeframe.

Stepping outside your comfort zone will give you more options and not necessarily more risk from my experience

A mentor will also have their own strategy, limits you just my thoughts

Go with your gut

 

As your self appointed mentor I say explore the finance and costs involved! You know penriff council, they all copy paste each others paperwork, it's just different logos

Ps. Find a new mentor!

 

My parents know and my wife sister knows (one of them), both my folks and this particular sister are investors and they get it and are happy for the journey we are about to start.

I haven't told my brother or my wifes other sister much of the plan, they won't get it and they will judge me (my brother bought one a good 10 years ago through one of those rental guarantee places where they build the place then sell it to you at a heavily over inflated price, it's only just gotten back to above what he paid for it in the last couple of years and my wifes other sister, her husband bought one when they couldn't afford it in their own suburb without doing any market research)

They don't do research and they are both the kind of people that will just want to try and persuade me to buy where they have and tell me how wrong my research is. My brother tried telling me that Mudgee is the place that will have the most growth in australia because prices crashed when they closed the mine "so prices HAVE to go back up because they went down". My wifes sisters husband will try and persuade me to buy where they did "because they live there".... no seriously, this is their justification!!!!

I am sure you can see why I choose to keep the details of my investing habits under my hat

 

I have one of my IP's earmarked for my daughter. When she is of age and responsibility she can take over the (currently IO) mortgage. Not a free house by any means, but substantially less than a fresh buy in cost in 15 or so years time. Still a leg up for her, but I get the mileage out of it in the meantime.

 

That's a really good plan. We might go down this path because 4 properties free and clear + having enough for our retirement might be an unobtainable goal.

 

I've just sent another email, fingers crossed we get a reply

 

Ask your brother and your wife's sister's husband if they will lay down some cash for a 3 year call option on a property of their choosing in Mudgee and/or "the suburb they live" in, and see what the reaction is.

Then, now the downside is limited (after a charge over their current assets), well, you know what to do...

Probably some future Christmas and birthdays might be a bit awkward though.

 

Hehehe I would love to do that for ***** and giggles but ultimately I don't need to be mean, they can walk their path and I will walk mine.

I have poured across this forum for 9 months soaking up info as I go, I have spoken to a bunch of you individually, I have taken so much knowledge from my chosen broker / mentor?? but sure, let's go with Mudgee because the mines have closed or newcastle because a family member or two live there .

As tempting as it is, XMas's would be as you said, too uncomfortable . My results in 10 years will be lesson enough for them .

 

If you are after a mentor find one who will empower you, rather than tell you what to do.

And find one who has "been there done that" and most importantly one that is much richer than you, this will push you higher.

If you choose to do seminars / property mentoring be careful not to get caught up in the marketing hype. Some mentors are broker than you and use the stage and marketing as an illusion, always do you research, and anyone who claims to be multi millionaire on stage - ask to see their financial statements before handing over thousands of dollars to do their course and watch their response

 

I agree - no mentor can really have the answers as the correct ones seem to emerge somewhere along the journey. A coach that can give you a few tips along the way and keep you motivated and centred is all you need. That's all I've ever had.

 

I agree with this too.
You've got to know where you want to go first, then contact someone with runs on the board for some advice and direction if you are not confident of your own abilities or what to do.

I recently contacted a legend 70yo dude for training advice and feel extremely reassured and confident by the advice given that I'm headed in the right direction and approaching the goal correctly, rather than wandering aimlessly and making stupid, time wasting mistakes.

Older mentors are awesome so don't discount them. They have so much more real life experience and know what works and what doesn't. The young ones who have had good early success can be a little too cocky sometimes.

 

I like the older ones too.

 

Totally agree with this. I have no time for people that talk a lot and have nothing to show for it.

A good example is a friend who just got into real estate and he thinks he knows everything (yet to make a sale and has no portfolio). Talk is cheap and I don't care if you know another friend who made $ in a certain area because if that's the case, how come you didn't do it? Using another person's success to justify your claim means nothing to me, because you didn't do it.