Steve McKnight $10 training events - any good?

OK, get this.

I think his track record speaks for itself.

Regardless still means we would need to know what we are buying as he does not buy or recommend properties.

Interesting, I can understand why he is moving to USA, all markets are moving, there are great opportunities to make money in US at the moment and many strategies that will work well today, its making sense to me.

Australia already has falling markets, does not mean investors wont find opportunities, however its just getting harder especially with sourcing finance in the future, this is going to put the brakes on investing opportunities, already started.

MTR

 

My take on this is that investors need to strategise, anyone can buy property.

Investors may want to consider taking money off the table IMO.

Equity is just that, prices have come off 10% in Perth that would equate to around $150,000 off my profit for my Perth development I sold last year. Holding would not be an option because bust cycles last longer than boom cycles, and rents also in decline.

MTR

 

Agreed, Perth and Darwin are in a bit of trouble and it can be quite wise to cut the risk.

Being diversified across the country can lower that risk a bit though too, if say Sydney goes down and I can't access equity there I may be able to access from Brisbane etc.

I guess for me I can't see myself being quick enough to pick the top.
Sydney really looks like a top, but what if we sell everything and then it stays flat, doesn't go down, and a year later it goes up and it's very expensive$ to get back in. Just never know these days, as the local property market is so very influenced by the international economy now (Chinese buyers, mining boom, global low interest rates).

The other thing I can't see myself doing is outrunning transaction costs. Stamp duty on a house in Sydney is astronomical. When I sell I feel like what I've paid and lost in stamp duty, I have to pay again to get back in (and at much higher rate). Plus the REA fees, capital gains tax etc.
As long as Sydney is "flat" and not a crash, I'll feel more stable about holding.

As a developer you can make really good use of cash.
But for myself as a passive investor, I can only get 10% or so and am time poor at that.

 

I mean I'll check my notes from 2014 and compare with where it's at now.

 

I also hold properties and use other strategies.

After a boom cycle it is a bust cycle, it does not go boom and then flat and then boom again not from my experience from years of investing I have yet to see this happen, its pretty much predictable.

Bust cycles last much longer than boom cycles.

I am not at all advocating selling all your properties, I have no idea where your properties are etc.

I am just stressing the importance to strategise/review performance, serviceability of loans, debt/LVR, peaking markets, cash flow, high maintenance properties.
If we want to achieve the best results I think we should all be doing this and working out which way will get us to the end goal quicker and with less risk.

 

In 15 yrs I am yet to hear a serious allegation or major problem with him. I think he has some character.

I like this post MTR thanks it caused me to think - I look back and think sometimes selling to take profits at top of market is valid and the cost of NOT doing this occasionally can be substantial. Obviously the trick is know when and it is possible to get it wrong and miss more growth sometimes. I certainly don't regret selling Boyne Island at top and taking over 100% growth off the table before the fall.

 

At this stage of my investment journey (& probably any stage in future too) I'm happy to sit and listen to almost anyone who has real investment experience. I've read Steve's book (thanks Mike and Ari) and liked what I read so attending his seminar seemed a logical thing to do.

At the end of the day (or night in this case) I learnt a few things I didn't know and it got me thinking about a few things I wouldn't have otherwise come across had I not attended. I think that's a good thing...

The most disappointing thing for me was waiting about 20 minutes, while he spoke to one couple. We wanted him to sign our (his?) book, which he finally did. At a guess about 20 other people gave up and left. Probably a good idea at the end of a conference to limit conversations to about 2-3 minutes, especially if you're going to offer signing books etc. All up a good night though...

 

Good to see all the feedback on Steve. I spoke to him on the phone recently, hes a nice guy and like someone said, no mud on his face. He's done the right thing by people and taught them how to fish rather than pumping speculative mining regions like other educators did. Thanks for sharing your experiences and thoughts.

 

They might've been paying customers.
Get in line or get out your cheque book

 

May have been but didn't get that impression as they were talking about a hatchet case one of the media channels had attempted on Steve. If they were a current client then that's fine just tell everyone. A simple case of communication.

Oh plus I had a copy of his book and they didn't...

We still had a good night.

 

Could've been customers of his fund of course.
Should've butted in - gotta be a go getter in this business!

 

His US property fund has made his investors over 30 % profit to date and going strong, so they are all sitting pretty.

 

Hey guys, anyone attending the 3 days course in Melbourne this WE? We should catch up. Cheers, Luca

 

I went to his Sydney one a couple of years ago.
Why are they always in Melbourne now?

 

Pretty sure hes from melbourne. Bought his first property in ballarat
Other than tgat who knows? Chasing equity rich?
Maybe sydney investors are beginning to lose their appetite?

 

Whats their benchmark MTR?

 

He's probably from somewhere like Frankston.

 

From memory he was a successful accountant
Created a few trusts and poked holes in the banks loan assessment criteria
Essentially he was able to borrow unlimited funds as the banks were only assessing the liabilities of the trust he was using to borrow funds under at the time
That strategy has been shut down, some doubt it ever worked but i guess the proof is in the pudding. He was able to buy 130 odd properties in a couple of years without having excessive personal cash

 

I'm still not sure if he clarified how many he ever held at one time.
Still impressive if it's true.