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Mr "Know it All" Cashflow Positive

Discussion in 'Investor Psychology' started by Beachy, 10th Jul, 2015.

  1. Beachy

    Beachy Active Member

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    Just got off the phone from a young guy giving me what sounded like an "education" on what to buy.

    He said he wanted to buy HIS FIRST PROPERTY (an IP) and wanted to get AT LEAST a NET yield of 7-9% for a residential property around $100,000.

    He wanted to buy a property which had NO capital growth for the past 10 years and he was subscribing to the cashflow positive mantra (note I don't have a problem with this mantra AS LONG as it is combined with a good proven capital growth location, but on its own, IMO it's a risky move.

    I said as a general rule most of the rich people in Australia have got rich off capital growth, not cashflow, but this young guy thought he KNEW IT ALL. He said I've got a Masters in Property (Geez!!!). Mate, I've got a Masters in real life, by owning 4 properties!!! (used to own 6). To that, he said he was an asset manager controlling $90million in properties through property trusts and the like.

    He went on to say that he felt that property prices were going to fall Australia-wide over the next 2 years. Sydney and Melbourne, IMO, would be in this bracket. I said why don't you buy in 2 years time when the "sky is falling"!!

    Mate, if I could get a 7-9% nett yield, I certainly wouldn't be sharing it with anyone - I'd be buying it myself!

    I tell you what, some of these young folk, think they know it all before THEY'VE ACTUALLY BOUGHT ANYTHING. Yes, I get everyone has THEIR opinion (including me), but really for someone to basically tell me "how it is" relating to property investment, WITHOUT even owning 1 property to begin with, is pretty "rich" coming from this guy. Yes, I don't know everything either and have made a lot of mistakes and there's some far richer people I know and particularly on this forum, which I aspire to.
     
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  2. EN710

    EN710 Well-Known Member

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    How did he ended up calling you? Are you sure it's not PChatters pulling pranks?
     
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  3. Special order

    Special order Well-Known Member

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    Sounds like he was prodding your ego with his little stick
     
  4. Beachy

    Beachy Active Member

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    God forbid, if he's on this forum...ha!
     
  5. Beachy

    Beachy Active Member

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    Don't you mean, HIS ego!
     
  6. 2FAST4U

    2FAST4U Well-Known Member

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    Bro he's got a Masters in Property so he must know everything:rolleyes:
    Good luck getting rich on 100k properties in the middle of nowhere
     
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  7. skater

    skater Capitalist Premium Member

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    This is my thinking as well. Random strangers don't just ring up out of the blue to tell you how fantastic they are and that they are going to get rich from property......well....unless they are selling you something.
     
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  8. Bayview

    Bayview Well-Known Member

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    7-9% yield for a $100k property.

    Must be a car park in the CBD.

    I'll sell him my spare bedroom for a hunge, and take $9k rent. no worries.
     
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  9. Beachy

    Beachy Active Member

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    I'm a real estate agent and he was calling off a property we have for sale.
     
    Last edited: 10th Jul, 2015
  10. willair

    willair Well-Known Member Premium Member

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    At least you are a good listener, last 20 years in property it's only been on way and that's been up once you scale most areas out,someone with a attitude like that with all that academia from the people with the so called knowledge that teach,maybe they don't understand what happens inbetween..
     
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  11. bobbyj

    bobbyj Well-Known Member

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    Interesting how he revealed his grand scheme to you. Fair enough and all to chit chat and share stories but I figure it's better to cut the bs and get to the chase when you're cold calling property agents re: properties for sale.
     
  12. Beachy

    Beachy Active Member

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    He wasn't interested in the property we had, and he was discussing what he was looking for, and then the story went from there...
     
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  13. HUGH72

    HUGH72 Well-Known Member

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    Beachy are you in Cairns? Maybe he is looking to buy 1bd studios in Manoora?
     
  14. Beachy

    Beachy Active Member

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    There's stacks of those studios around, even around 60-70 grand
     
  15. C-mac

    C-mac Well-Known Member

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    Certainly a flawed strategy. Oh well, hopefully you provided him the voice of reason and that he at least took some of it on board!
     
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  16. Patamea

    Patamea Well-Known Member

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    @Beachy his initials weren't RM were they?
     
  17. Beachy

    Beachy Active Member

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    Nope
     
  18. Patamea

    Patamea Well-Known Member

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    There is more than one of these guys out there then....
     
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  19. Azazel

    Azazel Well-Known Member

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    But the yield is too high for him.
     
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  20. ZachAnsel

    ZachAnsel Well-Known Member

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    lol, sound like Nathan to me