Are Property Investment mentors worth the cost?

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albee
Posts: 45
Joined: Wed Apr 07, 2010 12:04 pm

Are Property Investment mentors worth the cost?

Post by albee »

Hello everyone,

Are there any property investors like myself out there? I call myself a property investor but have not really overstepped my comfort zone to invest in anything since my purchase of a unit in Cabramatta about 3 months ago! I've mentioned that I've been signing up for newsletters of property investment forums and mentors!

There are so many property investors and mentors in Australia! I'm simply overwhelmed when I look at my e-mails and there are all these invites to property seminars by people like Steve McKnight, Michael yardney, Stuart Zadel and Dymphna Boholt!

I've been to 4 seminars already and I'm actually going to another one tonight hosted by Custodian WealthBuilders! And tomorrow I'll be at an NRAS smeinar! I need some more convincing that I can find a great deal with NRAS and actually make positive cashflow even when renting out the property at below the market value!

So has anyone signed up for a property investment mentor? Are they absolutely necessary? Do you lose money when you're not working with a mentor? Also is the mentor's methods absolutely fool-proof? Do the mentors come with any guarantee that you will make money from your property investments when you use their advice?

At about $10K a year, the advice from these property investor mentors doesn't come at a cheap price! I mean, I don't know about you but paying $10K in advice is too much for me! Can't we just find the reports on the internet and use common sense?

has anyone just done their own research and made a positive cashflow purchase? I think I just need to hear it from the every-day investor that YES, it is possible to make money on the p[roperty market just using common sense and crunching some numbers! Please let me know how you would go about calculating a property's positive cashflow value! Thanks everyone!

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twoba
Posts: 50
Joined: Mon Jun 15, 2009 12:11 pm

Re: Are Property Investment mentors worth the cost?

Post by twoba »

IN A WORD: YES!

You absolutely need a mentor when you're looking to invest hundreds of thousands of dollars of a bank's money that you have to pay back!

If anyone out there doesn't think they need advice from an accountant, a mortgage broker or any other property expert when deciding to put that much money on the line, then I suggest he/she get some professional mental help!

Seriously folks, buying a home or an investment property is the biggest liability you will have in your life! You have to make sure you employ the help of a financial planner so you're setting up the correct structure for your property purchases and with taxes you will be owing and you absolutely need a mortgage broker who can keep an eye on the lender's rates and get you the best deal.

The reality of the matter is, if you're house-hunting you don't have time to check with the lender's rates and chase up on the best deals. You absolutely need a mortgage broker who will have access to deals that are not advertised to the general public. A mortgage broker can also assess your situation and get you the best loan for your situation. Your financial needs will be different depending on your job and life situations. Mortgage brokers are experienced professionals who work with different people with different needs and know better than you do what sort of flexibility or security you will be needing with your mortgage or home loans!

Also please be aware that you will come into contact with lots of professionals on your way to buy a home! They will not all be looking out for your best interest! The real estate agent is on the side of the seller and can only be held liable if he/she directly misleads you. Beware of taking advice from a real estate agent!

Also you should realize that there will be initial costs such as stamp duty, valuation fees, ongoing costs, and capital improvements. Realizing this is essential to shield a purchaser from a reduction in income, or an increase in expenditure. Investors who receive and rely on rental income should provide for periods of no income during vacancies, or when it is necessary to carry out substantial repairs.

Also you need to realize that there will be taxes to pay from profits made in the sale of a property that's earned capital gains.

So get your accountant, your mortgage broker and perhaps (not necessary but helpful!) a property investment mentor and start growing your wealth today!

Happy house hunting everyone!

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