We’ve Renovated … and Now We’re Moving … !

Wow, what a year! It’s just before Christmas and like a lot of people, we’ve been doing a heap of renovating – on our main website, www.JennieBrown.com.au

We’ve added some extra room over there, and so we’re moving! The blog has been moved to www.JennieBrown.com.au/blog

And as in all good moves, all our new stuff is in the new place. Come and visit, we’d love to have you stop by. You’re welcome any time!

Here’s our address … www.JennieBrown.com.au/blog

See you there!

Jennie

Here is a question I get asked a lot; its in the new Property Millionaire book and I have given you a sneek peak here today

Q: What was your 1^st experience with property?

A: Because I was exposed to property at a young age, my ”first” property experience is a mix of the renos Dad worked on. The properties of my childhood all had a number of “features” in common. At the age of 20, I bought my first property. I moved in and, of course, it was a reno! Dad helped me negotiate a purchase price of $28,000. I had only just started working and I hadno savings. I renovated the house using leverage, which was getting the local lads and my brother and his mates to help.

To hear the rest of the story you will have to get your hands on the book and you can do that by going here: Property Millionaire Book

The launch of the new Property Millionaire book that I am a contributing author in has been met with huge enthusiasm and support. I thought I would give you a few snippets of what my chapter entails. Over the next 5 days I will be revealing my answers to 5 questions that were posed to me that created part of the chapter. Have of a read of the first one:

Q: What beliefs about money did you grow up with?

A: When I was born my parents lived in a rented garage in Parkes, New South Wales. Growing up, I was in hand-me-down clothes that often didn’t fit me. We rarely went out to eat – a milkshake at the local Paragon Cafe was a massive treat. I remember at around the age of 14 going out to eat at a Chinese restaurant and being a little bit unsure as to what to do. Mum worked as a cleaner, and Dad was a travelling salesman. However, my father bought us up to believe we could be anything and do anything. I decided that I didn’t want to be the poor kid in town with the hand me-down clothes; I wanted to be a millionaire by the time I was 30.         

You can read more about my answer as well as the rest of some fascinating stories in this best seller book by going to this site: Property Millionaire Book

I’m so excited!  Property Millionaire – the brand new book of which I’m one of the contributing Authors is an instant best seller!  It’s sold over 8,000 copies in its initial release!

In fact I’m so excited I’m going to do something I’ve never done before – I’m going to allow anyone to ask me a question absolutely free!

Normally you’d have to attend one of my seminars or join one of my coaching programs to ask me a question, but as a special one off to celebrate the successful book launch I’m going to run an exclusive Webinar to answer any questions you may have on How to Maximise your Real Estate Investing.

To ask a question all you have to do is post a comment at the end of this Blog post asking me YOUR question – and because you’ve asked a question you can attend the live Webinar, as my guest, absolutely free.  If you don’t receive emails from me already and you want to get access to the Webinar Recording then ask a question or go to www.JennieBrown.com.au and get one of my free gifts so that you can receive access to it.

Remember normally you’d have to attend one of my live events (and there are no public events until March next year) or be one of my paying coaching clients to be able to ask me a question like this – so join in the celebration of this successful book launch by commenting and asking a question NOW.  I look forward to answering your Property Investing questions!

Jennie.

PS  This will be limited to just 20 questions, so GET IN QUICK!

UPDATE: Due to the massive response to this blog post we will be holding a teleconference at 7pm Thurs 2nd December 2010. All those that asked questions will receive an email detailing how to join the teleconference. I look forward to talking with you then! Jennie

A few weeks ago, a group of friends, including Deb, from Mink Home Staging, and I were at a seminar down south.  We decided to stay overnight on the Saturday, and duly checked into various places on Saturday night.  

Deb and I were sharing, and, tired from a long day, we were both sound asleep as soon as our heads hit the pillows.

We knew we had to be up early in the morning.  What we didn’t know was that we would be wide awake long before …

You see, at about 11pm, we heard an alarm going off.  In a very deep sleep, I remember struggling to wake up, wondering what on earth was going on.  Then it hit me – the fire alarm was sounding through a speaker.  I was bewildered.  What was going on?

Deb wasn’t much help, either.  It was dark, but very noisy.  The alarm continued to ring.  She found a light switch, and snapped on the lights.

My first thought was that we were in a high rise building, on a floor where to jump to the ground would not be a pretty sight.  Best to assess the situation first…  I got out of bed and cautiously opened the door to the corridor.

Well, here I am, in my PJs, peering out into the corridor – straight into the faces of all the neighbouring occupants – all in their PJs, all looking as bewildered as I felt, and all uncertain as to what to do.  No help there.

Ring reception, I thought.  So I dialed a number.  Nothing.  Maybe the phone lines were out.  Without my glasses, I couldn’t read the number to ring on the phone, and, in actual fact, I was ringing the wrong number.  Finally, I rang the right number.  The phone rang, and rang, and rang …

All this time, the alarm is still going off – harsh, fierce, piercing, and constant …

I finally reached someone at reception, who informed me that we were not to vacate as yet, that they were trying to isolate the problem, and there would be a public announcement as soon as they could work it out.

Great, I thought.  We could all be burnt to death before they work out if there is a fire …

I could hear fire engine sirens screaming through the night, adding to the din.  All on their way to a fire – a fire supposedly right where we were.

The mind still racing, I thought about our options.  We were on a side of the building where the pool was, and it had a roof over it.  If we had to jump, we could jump onto the roof, about two floors down, and jump down again from there.  Not good for the ankles, but better than being in a fire.

Or, maybe, we could climb down our balcony, and jump onto the balcony below.  Or, maybe the firemen would get us on their ladders …

Or, or, or – the thoughts raced through my mind.  Finally, an announcement … stay calm, stay where you are.  The siren went off again, and again, and again – three times in all.  Interspersed with announcements telling us to STAY CALM!  You’re kidding me …

Finally, an announcement – the problem has been resolved, no issues, apologies, please go back to sleep … Sure!

Well, the upshot was that a bunch of young people had broken the fire alarm at the front of the building.  Small thing, huge consequences.

Property is a bit the same.  Sometimes what seems like a bit of fun can have huge consequences.  The important thing is, have lots of contingencies!  Just like the multiple exit strategies I had to get out of the building if it was on fire, so you too should have multiple contingencies and exit strategies to move out of a property deal should it go all wrong.

With the market and the economy in such uncertain times, this is more important than ever.  And, just as we were working out our options as things changed in our emergency, so you too need to be working out options and keeping a close eye on what is happening with your property projects.

Stay safe!  

PS  Thanks to all of you who have asked about our house sale – YES!  We sold it – in less than two weeks!  So, we’re on the move – watch this space – we’ll tell you more about it in another Nugget …

I’ve been fighting it for a few years now, but I’ve had to give in…

When I turned 40, everyone said that my eyes would start to fail, and that I would need glasses.  So, I went off for the obligatory eye test.  No problems.  Better than average eyesight, they said.  Come back in a few years.

About a year ago I had a few problems with light flashes in my eyes, and headed off to the specialist.  Just one of those things, will probably never happen again, don’t know why it happens.  No problems.  Better than average eyesight, he says.  Have them checked again in a couple of years. 

A couple of months ago, almost overnight, I started to have trouble reading small print.  What had been easy to read instructions on labels, cans & bottles suddenly became difficult. 

So, off I went for an eye test.  And yes, my still “better than average eyesight” has finally decided to let me down – just a little bit!

Glasses, they said.  Just for reading, and computer work.  Nothing else.  Better than average eyesight, they said – for your age… ouch.

Well, I picked up the glasses and decided that I really should test this all out.  Within 24 hours of wearing them – just for close up, I noticed some amazing things happening.

First of all – I could read the small print!  Secondly, my eyes, which had been sore for weeks, stopped being sore.  And thirdly, I suddenly wasn’t so tired.  Turns out that all the squinting and staring had actually been wearing me down more than I realized. 

Investing in property is a bit like my eyes.  You can go for a long time without any problems, and without any check-ups, and then, all of a sudden, things seem a bit vague.  A meeting with someone who knows what they’re doing – a mentor, or a wise friend, and a different perspective, can suddenly reveal problems you didn’t even know you had.

However, the really great thing about all of this is that they can give you a new set of solutions to help solve the problems.  Suddenly, it all becomes much clearer, the “fuzz” clears, and you’re energized to move forward.

This happened to me recently in a property deal I’ve been working on.  Things had become a bit blurred, and I wasn’t sure which way to move forward.  So I talked to some knowledgeable, helpful, wise people, did a “check-up”, and found some solutions that had been staring me in the face.  There all along, they just were not obvious because my “eyes” weren’t focusing.  With the fresh perspective, I’m now moving forward.

If you’re wandering around in property investing and are not sure what to do, maybe you need a bit of a “check-up”.  After all, as I found out, the solution is often right under our noses!  Speak to a mentor, someone who can give you fresh eyes, a new perspective, and options.  This will allow you to make informed decisions, and give you a new, clear path forward.

And, of course, look after your projects so you know when you need a “check-up”.

The “Jennie Brown’s Real Estate Investing Bootcamp” is coming to Melbourne on 11 & 12 July, and the Gold Coast on 7 & 8 November!  More information can be found at http://www.jenniebrown.com.au/bootcamp.html

This weekend I’m going to have what I think is a well deserved rest.  I’ve been working long hours for weeks and I’ve finally gotten to where I want to be – on just one thing!

About a month ago we decided to put our property on the market, and we started working on preparing it.   

This meant all manner of things – finalizing gardens, having turf laid, finishing fences, house washing, pressure hose the drives and paths, packing up clutter, putting everything neatly into cupboards, moving some furniture out, cleaning windows and tiles, and more cleaning, cleaning, cleaning, cleaning …

It didn’t help that the day we had the bobcat and the turf ordered, it started to rain, and rain, and rain – for about a week.  Everyone had to be put off.

However, it has all happened, and now, everything is finished.  The gardens look amazing, we have a fully turfed backyard and the fences are all complete.  The glass balustrading is in, and the place is sparkling.

After a crazy weekend of completing all the last minute things, including the massive amounts of cleaning, we were ready … Well, not quite.

We had a few more things to do.  First of all, there’s Deb, my amazing friend, brilliant home stager and owner of Mink Home Staging.  Deb came in and worked for a whole day on staging the house.  What started out as piles of cushions and nick nacks and vases and flowers and rugs and throws and linen and who knows what else slowly evolved during the day into a beautiful, stunning, staged home.

At 4pm in the afternoon she put the last item into place, and declared that it was good!  Just in time for the photographer to turn up to start photographing at twilight.

Time for Deb and I to collapse, exhausted.  What a day!

Any partnership, no matter how small or large, and no matter who it is between, must have an agreement that covers the interest of both parties.

It is best to have a solicitor draw up an agreement for you.  When considering what needs to be in the agreement, work out the absolute worst case scenarios for all parties, and make sure those issues are covered.

Some partnerships are between friends or family.  Regardless, remember that your relationship with your partner may be in jeopardy if something goes wrong, so it is important to cover everything you possibly can in the agreement.

Here are some of the areas that need to be covered.

Firstly, the agreement needs to state clearly who is involved – this could be individuals, or entities such as trusts or companies.

Make sure the agreement is dated, and beginning and end dates are clearly stated.  If you are unsure of how long the partnership will take, cover this so that all partners are clear.

Remember that circumstances can change very quickly, so cover the possibility of someone needing to end the agreement quickly.  How will this happen, what period of notice needs to be given, how will the partner be compensated.

The agreement needs to clearly state the terms of the partnership.  If the partnership involves money, profit shares, bonuses or interest payments, make sure these are clearly stated with no room for misunderstanding.

You may be part of a partnership that involves something other than money – for example, knowledge, skills or time.  Again, make sure that the terms of this agreement is clearly stated.

The agreement is a legal document, and therefore must be executed in a legal format.  It will need to be witnessed and signed by all parties.  Depending on the law, you may need to have a Justice of the Peace certify the document, and, in some cases, you may need to lodge the documents with some authority.

Agreements also need to be in place for when the partnership is dissolved.  Make sure that all parties are released in writing from the partnership, and that all obligations of the partnership are met.  Have each party sign off on the partnership.

There are many other areas that could be added to an agreement.  The main consideration, however, is to make sure that you have covered all possible scenarios, and that you have a legal document drawn up for you covering all parties.

Part Four will give you tips on how to find partners, how to “sell” the partnership to potential partners, and how to achieve a win-win for all parties.  To receive Part Four and more information, sign up at www.InvestingInProperties.com.au

Let’s explore a little bit further the two types of partners.

1          Money (or Time, or Skills) Partners; and

2          Joint Venture Partners.

Put simply, a money partner is someone who acts like a bank to the borrower.  And, therefore, the arrangement is very basically bank‑like.  The borrower loans the money, an interest rate is negotiated, payments are made, and the arrangement is over a set period. 

The benefit of this type of partnership is that if you’re the person running the deal, you have total control of the deal.  Generally, the lender has little or no say.  Remember, this also means that the borrower carries a higher risk.  If you lose money on the deal, then you are the one who has to carry the loss, and you still have an obligation to pay your partner.  However, if you make a profit, then you are still obligated to only pay your commitment to the lender.

Another benefit is that you know what your costs are right from the beginning of the partnership.  This makes your number crunching a lot simpler, and gives you a clear perspective all the way through.

In addition, payments can be arranged in several different forms.  Payments are  a set amount paid to the lender at an agreed time period, ie, monthly.  If you do set up a money partnership in this way, remember that you will need to honor the arrangement and make the payments, so factor the amount into your holding costs.

Alternatively, you can “capitalize” the interest.  This simply means that the interest is compounding over the period, and a payment is made at the end of the loan.  Whilst this will cost you a bit more (often not a significant amount) than regular payments, it has the benefit of being paid out on completion of a project, usually at the time of sale, or re-financing.  The lender benefits as well, in that they receive a higher amount of interest.

A joint venture partner, on the other hand, is a partner who actually enters into the venture, or project, in some capacity.  This type of partner is often exposed to more risk, will often have their name on the project, and will expect a much higher return on their investment.

On of the main benefits of a joint venture is that the risk is shared.  This includes both profit and loss, so it goes across all parties.   In line with this, you will most likely have access to the borrowing power of the partners in the joint venture, so borrowing capacity is increased also.

This leads to another benefit, which is that you will have the capacity to undertake larger projects, projects you may not necessarily be able to fund on your own.

If you have multiple partners, the shares can be of varying amounts.  They don’t have to be equal, they can be proportionate to the contribution of the partner.

Regardless of the type of partnership, there must be one person who is in charge and makes the decisions.  The responsibility must stop with someone, and that person must be prepared to make hard decisions.  The success or failure of a project will depend on the person in charge.

Lastly, a legal contract on behalf of all parties must be drawn up.  It is important to be sure that your agreement is extremely clear and all parties know where they stand.

Part Three will explore what needs to be in an agreement.  To receive Part Three and more information, sign up at www.InvestingInProperties.com.au

Jennie Brown a property investment mentor explains why she is the best person to give you property investment advice.