Starting Out - Using a BA?

Hi, firstly thanks for everyone contributing to an awesome forum. I plan to do a lot of research here and learn from people who are doing what I want to do - that being be a successful property investor.

I recently reached out to Binvested and was about to sign up for what they call a MAP session. On doing my research I found PropertyChat and then was like, hang on, why pay people who are going to tell me what I want to hear so I can buy their properties and use their companies.

Now I am not against Binvested and if they can help me speed up the learning process and get me moving forward in the game then I am all for it.

A little about me - I am mid 30s and back living with my folks after recent breakup and am in savings and looking forward mode and am being alot more proactive and goal oriented. I have always seen property as a good tool to grow as an asset and ultimately put $ in my pocket and free me from the need (although I may still want) to work. Therefore the strategies of Binvested appeal, buy cheaper properties (this is all i can get in to at this point) and build a positive cash flow portfolio. Can anyone recommend them or anyone else to help a self confessed newbie? Or is it a DYOR type approach?

Correct me if I am wrong but long term ie 30 year interest only lone on a property of say $300k, of it provides me a few $ in my pocket each week and over next 20-30 years will hopefully go up in value if I select carefully. Also the value of the dollar will also go down so $300k today will be worth a lot less in 20-30 years so as long as I am getting a positive return inflation will also mean it easier for me to pay it off long term by locking it in now?

Please let me know if my logic is flawed too...

Look forward to hearing and hopefully getting some insights.

Thanks,

Peter

 

Hi @PropertyPete - Property Chat (PC) is a great place to start. And also look up Somersoft Forums (which were the older forum before PC came along. Read up the Interviews on Somersoft - really valuable information.

A BA can be really helpful if you are lacking confidence in your investment abilities to purchase, which can be a case when buying the first IP. However nothing stopping you doing it on your own. Ask a lot of questions, talk to agents, go to open homes.

May be an early question, however where do you see yourself with property investing in the next 5 years?

 

Hey Pete , well done on taking some action and going to educate your self . I Have read mixed reviews on binvested some say they are getting below market value some have said they were told they were below value but done research and found they could buy direct through the agent for the same price on asking price maybe they could have knocked down the price there self

I have used a buyers agent before and it didn't work out for me I was led in to buying in two a mining town and I am still suffering from this , binvested wont buy those sorts of properties I believe so maybe they can help you ..

I think the question you need to ask your self Is what's is your strategy if you have one ?
are you a passive investor ? more reliant on capital growth and well selected properties
or a manufactured investor ? more reliant on finding a problem property and coming up with a solution to fix it and creating a profit in a short time frame

once you have a strategy that you feel you can use that will help with knowing where to look for your next deal

I can just recommend doing lots of research on forums like this , going to property get togethers , seminars (but be careful with some of them they are marketing for properties or educational programs) .
some educational programs are very useful if you are willing to put the time and effort in to them

mate best wishes with your investing

 

Thanks for the quick response. 5 Years, would love to say I would have 5 properties, call me a dreamer but I'm happy to work hard ie maybe one in first two years, happy to roll up sleeves and renovate and get some tips from my dad (he is a builder), build some equity and then move on to next. Idea would be to rent out and not sell.

I have found somersoft too and will do some reading. I do have a tendency to over analyse so am now think I just need to get the right advice and take action!

 

Would love to think I'm a bit of both investor, ready to be a manufactured investor to start and roll my sleeves up and reno if can build equity to get next place. Long term passive would be the goal though or do cost effective clean up to get best return and unlock any equity I can.

Would love to hear how your journey (haha a word that is overused on reality TV I know) is going? and any advice. Thanks again for quick reply!

 

Many people have their opinions on binvested, which you can read about in the Nathan birch thread. You can learn what they'll teach you yourself by reading books, mags, podcasts (property couch is great! ) but for the 200 bucks they charge it wouldn't hurt to sit down and get a quick intro into what is talked about here for free.
Depending how you learn sitting down with them wouldn't be a bad thing, just don't sign or buy anything! And/or get to a PC meetup

 

Good to have you here PropertyPete

There is a lot of valuable information out there to be shared, however you need to be the one steering your own ship.

I like to take advice from multiple sources and then come up with a plan they works for me. Sometimes that plan is a combination of different sources of information.

No one is ever right or wrong, there is no such thing, there are only varying view points.

 

Hi @PropertyPete

People may use BAs due to lack of knowledge or confidence, or lack of time. The latter is very prevalent.

Whether you use a BA to assist with your purchase or not, it is important to have some understanding of what is happening with your IP. The person with the most vested interest in your IP going well is you. A completely hands-off approach (eg leaving your Property Manager to it and not questioning anything) can be quite expensive. For instance, if your Property Manager is taking a while to get a tenant for you, the question of "why" must be pondered and addressed.

 

Plenty of posts on this site on why you should not use binvested..

 

Nothing wrong with going the BA route if you don't have the time, confidence or inclination to go shop for properties yourself regardless of whether local or interstate.

 

I've used BAs (not Binvested though). I believe that they're best used in large, complex markets and/or rising markets where you need to be on the ground and be able to have a good overview of the market and able to move quickly. I've found that it makes more financial sense for me to be at work earning money and paying someone else to purchase in these markets as I could easily lose more than I spend on the BA fee by buying an inferior property or paying too much due to emotion/lack of overview etc. When I don't need to work any more I'll be more able to go out and source my own properties but at the moment BAs make a lot of sense.

I've also known people to use BAs to buy in small regional markets that aren't rising and that makes no sense to me.

Obviously do your dd though as Binvested has mixed reviews. Have a look on the recommendations on here for BAs as a starting point.