Last weekend I went to a 2 day property seminar. The highlight is actually in speaking to real people on the ground. Some impressive stories and some good knowledge was shared and then there is the doubt and fear factor. We came away with a book which I think is pretty good and may be more useful and practical as Rick Ottons book. Have not read enough yet to be conclusive. From what I can tell the mentorship of Dr House and Jay McLean are very hands on and valuable.
Looking in from the outside I am skeptical about the figures and about whether I have got what it takes to break into the finance industry as a greenhorn and whether I could make a living off bargain deals with distressed vendors. I am kind of an average guy and for me $100k would be huge and $50k quite nice. To make that I need 5 to 10 deals with a $10k deposit in 1 year, service the loans and maybe take a small markup and then wait for 2 to 5 years for my back end profit.
I have a house to sell (costs me too much), so it would be nice to get some extra money, but I think that only works if the deal maker leaves a lot of money in the deal or if I succeed in doing it alone and inflate the price enough. A am certainly not the sales type. I did notice that the math is a bit sugar couted. There is stamp duty / capital gains tax / legal costs that may or may not apply to the deal maker. The seller may get his asking price but only 2 to 5 years later and he has a mortgage against his name that may stop him from making the next move.
So millionaires in 12m sounds very inflated (my guess only top 3%) and you may need to be a bit tough on distressed people and very ambitious / greedy to make it big starting with old houses in a flat market. And there are legal complexities. You will need licenses as well or otherwise do profit sharing. That's why the majority will not sign up or opt out or fail to get very far. I recon with vendor finance and old houses alone it takes a lot to acquire a millionaires mindset and translate into $$$ - remember its 80% psychology !
Staying clear of old houses leaves us with development or a combination of DEV with VF - this may work very well for the entrepreneur and should be more ethical. But you still need to break into a tough market and make deals to build yourself a good network and a good reputation. But I understand that mentoring and industry access via the Ku/McLean Partnership will help big time.
I think Kari hit the jack pot (a top performer), but we don't know the details of what it took. He has joined only recently as I understand. I have actually managed to track him down online (never in person) and he seems to have managed to get into development as well.
http://renttoownhome.com.au/index.php?option=com_hotproperty&task=viewagent&id=3007&Itemid=528 http://renttoownhome.com.au/index.php?option=com_hotproperty&task=view&id=1720&Itemid=528 http://ewealth.net.au/
Meanwhile down to earth E could help with more info. He said he would do a deal for a flat fee of 10k and he has managed one deal so far. That's a bit more realistic. Now imagine how many deals you will need to find at $10k to make $300k.
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