Net Wealth and Cash Flow

We are all at different stages of investing but am curious what members are doing or have been doing over the last 5 years to increase net worth and at the same time improve cash flow.

I suspect many will be doing one or the other??

Do you think it is difficult to achieve both?

MTR

 

These Mona Lisa images are getting more and more racey lately MTR. Are you trying to tell us something?

 

LOL
I thought this avatar was cool

 

It is! Give us more!

 

We are all at different stages of investing but am curious what members are doing or have been doing over the last 5 years to increase net worth and at the same time improve cash flow.

Write more deals and increase trail income for business expenses and cash-flow.

I suspect many will be doing one or the other??

Was focusing on one (cashflow) now doing both together. Finding sites to develop and attempting to end up with an 80% LVR or better and then access equity to 90% to reinvest and aiming for cash-flow neutral to positive as well.

Do you think it is difficult to achieve both?

Depends, but in my case no its not difficult now but has been a hard slog getting to this position.

 

Colin are you developing in the Perth market?? Curious as it may be difficult to access equity when the market is falling? BTW I have been out of this market since 2014 so perhaps there are some gems? and it can work??

MTR

 

Yes, Perth market. Got one under way or in the process in Success and looking for another one this one is nailed down, costings etc.

Its possible when finished may not be as valuable as current assumptions but will rent and wait if I get it wrong. Should be neutral to positive with current interest rates.

Doing a fair bit of networking so that should produce off market deals that could work. Will also look to finding unencumbered properties that people are sitting on and dont realise the potential nor have the motivation or skill to pull it off via JVs.

Cut my teeth on some and possibly look at syndicates once I cant borrow anymore. Lots of strategies and ideas to make it work I reckon.

 

You have plan B.

 

Always and buffers in place.

 

Been running a business to improve cash flow and been developing a property portfolio to increase net worth.

Not difficult to do both.
Of the two, increasing cash flow significantly is the more difficult.

 

Best one yet.

 

I've only been interested in and investing for 18months or so.. Not quite 5 years, but as I'm spending another Friday night with PC I'll just thread crash with what im doing

Paying down all bad debt (was payed off and then life happened) will be payed out nxt month

Loading up offsets (real original)

I'm just going through some minor renos for one IP. Have to spend $7-8000 to rent it out $25 cheaper then before (Perth). So Reversing cash flow... That's kind of relevant for the post right?

Funnily enough there's been just enough growth in same IP to increase loc balance (thank you desktop vals!!)

 

those desktops are a blessing, been selling but those who can tap into equity geeat

 

We're increasing, then rearranging, our net worth to pay out mortgages - and hence increase our cashflow. Big part of that was taking control of our super, and investing some sweat-equity into reno's and builds.

But then again, we're in the consolidation part of our investing lifecycle

 

Do you think you will ever stop investing, growing income etc?

 

Bought about 10 ips over the last 5 yrs or so, all but 2 over 8.5% gross yield. All in areas with good growth potential. Maximised our payg income and paid down a lot of debt to increase cash flow and to continue buying. We've sold 3 properties this year (poorest performers) to pay down more debt. We've made enough to live mortgage free and have a nice little income from rent.

I don't think it's too hard to find both if you can be flexible around what you buy. Ideally I go for cash flow and growth but if I see a rising market I buy (if I can) even if it costs money (which it does) with a view to taking the gains later on to make more cash flow.

 

For those who have reached financial freedom, will you keep investing?

I know some investors who never retire, this is why I ask?? The challenge will be sourcing finance, not impossible though

 

I plan to keep investing because it's fun, and addictive. I'm probably near the end of my borrowing power at the moment. Just about to buy one in smsf. I've got a few ips that have had good growth though, and I don't think those areas could sustain more growth in the short term. I might sell some of those off and reinvest into rising markets, or properties with higher yield/more option to increase equity.

 

Sounds brilliant

 

Still working like a donkey but I am starting to see the light at the end of the tunnel. I hate having regrets and refuse to be in my 50s or 60s and ask myself, "if only I did abit more".