Steve McKnight Webinar today

Wise words as always

 

I rate Steve and his judgement has been spot on in the past. However, that entire presentation was overly bearish and it felt like he was setting up for a sales pitch.

You gotta big problem. Whaddya know, i have a pre-packaged solution that can solve this problem!

 

Maybe, he did mention something about people selling his product????

 

Does anyone know where Steve was located for the webinar? I think he's with one daughter Allysa in Queensland somewhere, and his wife and other daughter are both in Melbourne (Canterbury)

 

Bindi, east Gibsland. Vic, he has a farm (Spell??)

 

Could well be. It will probably involve inner circle mentoring of some type.

I don't discount the possibility of a protracted course though. Vaccines for RNA viruses such as Covid 19 is difficult. Diversity and high mutation rates are their strong suit.

He mentioned that now is time of defense and maintaining portfolios not necessarily buying for the sake of it.

 

I believe he was starting another fund in OZ, commercial property? I dont like the chances with this one in current climate? Perhaps its on hold now??

 

If he's in Vic I don't know why he doesn't go home to be with his family. He mentioned he hasn't seen his wife for over a month

Yes he put it on the backburner for now. I got this email from Steve on June 10..

I'm writing with an update about my Australian Real Estate Investment Trust (AREIT).

It's been a tricky and difficult decision, but despite now having a PDS ready to launch (that took weeks of work and about $30k to complete), I've decided to 'press pause' on releasing it for now.

Let me explain why...

In the midst of the COVID-19 crisis, which was only a few weeks ago(!), I believed that commercial property would likely suffer a severe price dislocation, and in doing so, would unearth buying opportunities for cashed up investors (such as us via the AREIT).

However, I'm just not seeing circumstances unfold that way. The economy is returning to some degree of new normal (e.g. if anything, peak hour traffic is now worse than before), and governments seem to be willing to do 'whatever it takes' to prop up property prices.

In respect to deal flow, yes - I'm seeing more properties for sale, but not at higher cap rates. Here's a snippet of an email I received yesterday about a commercial property I enquired about that was for sale via Expressions of Interest:

"Usual story sorry, no defined asking price, but offers to purchase. I would expect a fully leased yield to be in the mid-6% range, so I would work upwards from that."

For the risk, and given the timing of the market cycle, I just can't get excited about a 6% to 7% annual return (before management fees). In short, in my opinion, the upside gain isn't worth the downside risk by enough of a margin to proceed.

That's why, reluctantly but with a firm resolve that it's the right decision, I won't be launching the AREIT's PDS right now.

I'm sorry for any inconvenience and disappointment this update may cause. The good news is that if, as, and when things change and the AREIT becomes the right idea at the right time, the offer document will be ready to launch almost immediately.

Blessings to you and your family,

- Steve McKnight

 

Yes. On pause. Have heard him mention that he couldn't see the correct opportunities and that was just before Covid-19 evidenced. Maybe next year, there could be more pickings when lending is tight, if he can muster the investors to create the syndicate. There are plenty now (like me) sitting on their hands. Best not to be too bold right now. That time will come. Maybe next year.

 

strangely enough his US commercial properties are doing very well. I only found out as I shot him an email on US property markets and said the US property markets are hot

I sold with multiple offers above asking Price, resi

He said stimulus package in US is helping

 

He's got my total respect for this because there are still plenty of spruikers around trying to sell Aus commercial property in this climate to the uninitiated.

 

Ditto

 

thank for the discussion.

i have been side lines for the past 1.5 years unable to pull any trigger on any commercial, seeing 5% yield. just not worth the risk.

 

Is this all in GA?

do you have any vegas one ? i think i will need to offload some my vegas one.

does anyone here have vegas ? how is selling now ?

 

I dont know this market but it would not at all surprise me if its hot, sub $300,000 is flying

I suggest you contact realtor in LV. Get onto biggerpockets to network

 

I watched Steve's webinar months ago and thought id join his program for 3 months to see what's up, also apart of me a little freaked out. Once I joined I was like there was a sales pitch to a degree and to be honest Steve and many others did not see this, other than Nathan Birch and a family member of mine. Both of them said the same thing literally 3 weeks apart in January 2018 that the world is going into a recession...

I had a lot of respect for Steve and its a little lower now and don't disregard what he has done, and what he has to offer today with his insights, guidance etc

 

So......it seems things may be moving in a different direction to the forecast in the webinar...

 

Please elaborate Mauve, you have me intrigued!

 

Just had a listen to the webinar. He makes a few valid points imo.
I have also been saying even before covid that there are majore macro economic and political shifts happening world wide that will have long term consequences on RE. Not least low interest rates that won't be going away anytime soon.

This covid drama is just getting started, gov isn't just throwing $$ out of helicopters they're using firefighting jets to drown people with $$.
We will get the bill? Will it be paid back in our lifetime?
Will there be higher land tax? Bedroom tax? Empty bedroom tax?
Fat Super tax over xxx amount?

When the supposedly capitalist side of politics starts preaching on TV that landlords should not be greedy to tenants not paying, and then making laws about it...What happens when the socialist side of politics get voted in?

Interesting times indeed. And yet the boom continues and the band played on.

 

The poor bugger was kinda way off. Unless things rapidly deteriorate and stay that way indefinitely. Very unlikely.