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Kickass broker and property trust accountant recommendations

Discussion in 'Property Experts' started by Positive_Rob, 24th Sep, 2016.

  1. Positive_Rob

    Positive_Rob Member

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    Hi guys,

    I'm new to the forum and new to investing.

    Background on me. I used to be a real estate agent and now I'm looking to start investing.

    I need recommendations on an awesome broker and accountant both fluent with discretionary family trusts for set up and maintaining and financing it. Looking for them to be in the south east suburbs of Melbourne. But am happy to travel that bit further to get awesome help.

    The plan:
    I've been gifted $150,000 from mummy dearest (I'm 27) 88,000 is going to a ppor the rest I want to invest in positive geared property. My partner isn't working so I wish to use the trust to funnel money as income to her. Then once she's earning what I am we can neurtally gear the portfolio of 10years to then retire in 20 odd years... Sounds like a dream but that's my plan... So ill be looking at purchasing property as below market value as possible, re valuing it and using that equity for the next. I'm looking for a broker who is fluent in property portfolios that are 20+ homes.

    Thanks
    Positive_Rob
     
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  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like you need a lawyer - before you accept the gift.
     
  3. Positive_Rob

    Positive_Rob Member

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    Why's that?

    I mean no offense here but Terry, isn't the purpose of a forum to add value? A throw away comment like that doesn't actually help? It's just dismissive. And pretty unprofessional. Next time try explaining your comment so new forum members don't get put off. You as a business member should know that less investment educated people would be put off by the whole forum. Like is said I say this with no offense intended. Just friendly advise:)

    Now let's try to keep this constructive?
     
    Last edited: 24th Sep, 2016
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sorry Rob.

    A trust is a legal relationship between various parties - it is the area of legal advice. Trusts are set up by deed - needs to be drafted by lawyers.

    Gifts also involve legal advice - documenting the gift, and the consequences - asset protection, estate planning, family law, the laws of equity etc.

    There is also a tax aspect which a tax agent could advise on on (or a lawyer).

    For starters have a read of my legal tips and tax tips.
     
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  5. Positive_Rob

    Positive_Rob Member

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    Thanks terry, I appreciate it.

    OK well mummy dearest will not benefit from the gift in any way. So that's covered.

    So an accountant who specialises in property tax can't draft the deed or organise to have one drafted? Sounds like I need to add lawyer to the mix too then.

    Well then in that case if someone could recommend a kick ass lawyer too. Ha ha

    Thanks
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    First thing you should ask yourself is should you accept the gift at all. Is an interest free loan more appropriate?

    Accountants cannot draft legal documents - but they do buy standard documents from lawyers and insert names .
     
  7. Positive_Rob

    Positive_Rob Member

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    An interest free loan would imply I have to pay it back so wouldn't that hinder servacibility? I'm currently earning $75,000 a year so not a high income earner by any means. Would standard document trust deeds be any less solid if there drafted by the lawyers thatcwould have drafted it up anyway?

    Thanks for your input much appreciated.
     
  8. MsAli

    MsAli Well-Known Member Premium Member

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    150k .....isn't a lot to go down the trust route in my opinion. The losses i.e negative gearing benefits are trapped in the trust...so if anything it will reduce what you can borrow.

    I'd keep it simple and stupid.
     
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  9. Positive_Rob

    Positive_Rob Member

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    Hi msali,

    I was looking at neutral to positive gearing all the way. I'm not looking to become filthy rich... I just want to retire on what I'm earning early. I get that negative geared properties do that, however I don't want to have to input my income in any way. Besides servacibility. I was looking at the trust because for starters I can funnel income to my partner and get up to 18k tax free. Plus the 50% cgt discount, and asset protection. That would negate the benefits of negative gearing I hope? Ha ha

    Also one thing I read has stuck with me. Trust will always fair better because rich people and politicians have always and will always use them. Politicians make the laws governing them and will always look after the rich and themselves. Ha ha
     
    Last edited: 25th Sep, 2016
  10. MsAli

    MsAli Well-Known Member Premium Member

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    You'd need to consult an accountant for that.

    Would suggest looking at your big goal, align with the quickest way you can get there as opposed to focusing on the "lack". Go for maximising opportunity. You're young and have found yourself in a position most wouldn't at your age so use it to your advantage.

    Aim high....:)

    P.s. 75k x 25 times = 1.875m in unencumbered property....that's the minimum I'd aim for.
     
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  11. MsAli

    MsAli Well-Known Member Premium Member

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    Where did you read that??
     
  12. Positive_Rob

    Positive_Rob Member

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    One of the investment blogs I can't remember but I put it in my own words I hope ha ha.

    Yeah I am in an amazing position. I aim for as high as possible. 25 would be a dream come true but 200 would be better:)

    That's where a kickass team of professionals will help so hopefully I can get some recommendations for people who have experience in my strategy and life goals.

    Plan to purchase property around the $150,000 to $250,000 mark probably Tasmania Hobart outskirts or Launceston for the first then somewhere like Horsham Vic. I plan to buy in most states to limit state land taxes. Then once the portfolio is sustained I can sell the smaller run down properties and upgrade. Or keep them and fix them up adding value and equity, depending on what happens and what recommendations I get:)
     
  13. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I'm wondering why 25 properties? Why not 40, why not 5? These are just arbitrary numbers which sounds impressive but has no real context.

    Figure out what you want your end goal to look like in terms of wealth or lifestyle, not something random. Once you've figure out what goal you're looking to achieve you can work backwards to figure out how you can get there. What types of properties, how you'll use them and then how many?
     
  14. Positive_Rob

    Positive_Rob Member

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    Well exactly. As a start I'd like to replace my income. After that just keep adding. I will be retiring at 45yo regardless of whether I'm making $30,000 in passive income or $300,000 (in today's money value) ha ha. I have 18 years to get there.

    If I hit a passive income of $300,000 before the 18 years then obviously I'll be retiring much earlier ha ha.
     
    Last edited: 25th Sep, 2016
  15. bob shovel

    bob shovel Well-Known Member

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    Sounds like someone is pretty excited and gung ho to be getting that bucket of money (i would be to)

    First. Slow down
    Two. Don't do anything yet. Don't accept the money till you've found the awesome ones
    C. read more here!
    IV. Keep reading
     
  16. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Its not the drafting perse but the the set up - who takes what role, how to structure the trustee, who owns the shares, structure of the appointor. You also need to consider who the beneficiaries should b, if the income and capital beneficiaries should be the same. Open or closed class, powers to accumulate. Default beneficiaries or no and the legal consequences of all this.
     
  17. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Its not the amount of money you have that determines whether you should use a trust or not, but what the plan is and how you what you want to do. $150k would be more than enough and there are many strategie where you could use a trust without the trustee even owning the property.
     
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  18. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There are a number of ways you can funnel income to your partner without using a trust and get asset protection.

    I agree with Ali - that last comment is silly.
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    This is why you need legal advice. An interest free loan may not have to be paid back. It may also not be needed to be declared on any serviceability assessments or effect your serviceability.
     
  20. Positive_Rob

    Positive_Rob Member

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    Yes very much so. Well like i said, if I could recommendations for a kissass lawyer, broker, and accountant in the south east suburbs of Melbourne all that specialist in property investment.

    Thanks guys