I get a lot of people contacting me from time to time and they have this dream of
being property investors what it perceives or okay are looking to do is
have a series of vital investments and so on
and so there's a plan of the strategy or the dream of being owners of multiple
units multiple houses and the plan is to start off at one and build up that's a
fair enough plan the fair enough plan is a common enough sort of a strategy and
the color enough ambition for somebody to have both the reality sometimes can
be much different from the theory and from the dream and I have a couple of
stories about property investments that I made and they'd still hold four which
might give you some food for thought in terms of what the reality is versus what
the periods you're gonna sit down and you're gonna get a spreadsheet of and
you're probably going to make your calculations based on the rental income
you want to guess and the outgoings are going to have your interest your capital
perhaps that interest may be interest only fro hires both to particular events
to occasions I can recall as a landlord and as a property investor which might
give you a food for thought first one was I landed down to one of a rental
properties and discovered that the tenant was gone when I discovered the
tenant was gone I made inquiries and transpired that he had been arrested and
taken to prison and I'm making further inquiries I
discovered that there was a dog left in the apartment who by the time had gone
back to the apartment again to gain entry I chewed through the leg of a
table through hunger or frustration or called what you like both when the girls
were coming to arrest the tenant in question there was asking any questions
and two or three days later when I came down to visit and collect the rent
that's the sort of situation Dreyfuss it took me a good three months before I
could gain access not yell access with your lawful access to the apartment
again and get the key and get the locks fixed and get the door fixed and so on
and so forth and that all needed to be done but in terms of doing a calculation
of your rent you must make allowance for periods during which you're not going to
get any rent you must make allowance for periods during which tenants may down -
that's basically and stop paying your rent and the time period lag between the
breach of the tenancy agreement I'm actually getting vacant possession of
the apartment getting the tenant out can be very long it could take up to 12
months if you do with lawfully and they would have to advise you to do it
lawfully but you need to factor in occasions like that one - the
considerations and calculations and forecasts that you're gonna make you
don't often come across situations like that
but when they do happen they can be very expensive and they can leave you with
property investment title ation or financial forecast which is completely
out the window in other words you're looking at it takes more 12 month period
during which a you can't gain access your apartment and B you're not getting
on your rent you still have to pay the mortgage pay the interest and so on
another occasion it turned out thus the tenant simply stopped paying
and between taking every step open to me every legal step open to me from start
to finish it was probably a good nine months before again possession of the
apartment again and the problem then was of course it was a huge amount of rent
still outstanding but the practical reality is I was never going to get
yours so there's another 12-month period
during which no rent was coming in so you can sit down over the spreadsheet or
a Google map or a Google sheets and you can do very prescient forecasts and you
can see exactly forecast the best you can what your forecast cash flow is
going to be what your income is going to be in your outgoings and so forth but
there are periods during which you're gonna have serious follow-up periods in
terms of rent you also want to have unanticipated I don't expect if
investments perhaps or repairs to Shire you need to factor all these things into
your calculations so the dream of having one property and then going and building
on that and investing again and realizing the capital and borrowing
again and leveraging using the benefit of
leverage using the benefit of death that's all very well but you must allow
for human nature you must allow for things going wrong the most love for
accidents you must allow for tenants tsyganov must allow for difficult
tenants there must allow for tenants getting arrested I'm buying drop in
category as I discovered one Saturday morning when I visited my property to
collect the rent so by all means hundred reams by all means through your
affiliations by all means plot and plan and scheme but to factor in the
practical reality of it and do factor in getting some advice for people who have
been there before you and it becomes a good bit of experience in this area hope
you find this video useful if you do and would appreciate the given the talents
of films you know you may be interested in subscribing to my youtube channel on
my youtube channel i deal with all aspects where i saw experience in the
world of business having been certified since 1986 at the age of 23 so say i
hope you find this video useful and if you do it would appreciate it begins at
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