An Interview with LeoT

Hi Everyone,

I think you will find this interview very interesting!

http://somersoft.com/forums/showthread.php?p=1245028#post1245028

The Y-man

great interview loved it some great advice there.

Thanks LeoT,

I enjoyed your interview, its remind me with rich dad poor dad book.
You learn from early age, listening business discussion on the table.
Well done!!

Great interview LeoT

One comment with your ownership structure.

Try and get those properties that are in our own name and in joint names into a trust structure. I mention is now as you may not have build up equity on these properties and a change over cost is lower.

The reason I mention it is you are a young guy and your going to meet a lady. She may not be the right lady but you take 2+ years to decide. She departs and puts out her hand for her share as she is now your defacto.

Even worse if you were to pass away (heaven forbid) and she now is in line for a substantial share and is actually your next of kin. She will just move on and have a ball enjoying your wealth.

Have a read through some of this site to get a feel for the problems.

http://www.armstronglegal.com.au/contested-wills/

I am speaking from experience having started the same way with properties in my own name etc. Trusts are the way to go. Don't even need to leave anything apart from the appointer and trustee arrangements.

Keep up the good work.

Cheers

Hes already married handyandy

Was waiting for this one - great interview. Very much like rich dad/poor dad.

Quick qn on the your idea of where markets and how you make decisions to sell. You mention that you grow your asset base by holding some of your development stock. If you make a judgement that Sydney is at the top of the boom, do you sell some of your Sydney holdings (or just choose to not buy any further?).

Cheers,
Redom

Sexyv40 said:

great interview loved it some great advice there.

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Thanks sexy40. Glad you found some advice in there.

Cheers

leo

ZachAnSel said:

Thanks LeoT,

I enjoyed your interview, its remind me with rich dad poor dad book.
You learn from early age, listening business discussion on the table.
Well done!!

Click to expand...

Hey ZachAnsel,

Thanks mate. yes I liked RDPD books as I was growing up too! I think most ppl do!

Cheers

Leo

handyandy said:

Great interview LeoT

One comment with your ownership structure.

Try and get those properties that are in our own name and in joint names into a trust structure. I mention is now as you may not have build up equity on these properties and a change over cost is lower.

The reason I mention it is you are a young guy and your going to meet a lady. She may not be the right lady but you take 2+ years to decide. She departs and puts out her hand for her share as she is now your defacto.

Even worse if you were to pass away (heaven forbid) and she now is in line for a substantial share and is actually your next of kin. She will just move on and have a ball enjoying your wealth.

Have a read through some of this site to get a feel for the problems.

http://www.armstronglegal.com.au/contested-wills/

I am speaking from experience having started the same way with properties in my own name etc. Trusts are the way to go. Don't even need to leave anything apart from the appointer and trustee arrangements.

Keep up the good work.

Cheers

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Thanks for your advice Handyany. Much appreciated, and yes it was a concern at one point in my life..thats for sure but its all good now.

Cheers

leo

Reassess goals and progress - I like that, really important, I think many can get stuck in a hole.

Great read. Thanks

Redom said:

Was waiting for this one - great interview. Very much like rich dad/poor dad.

Quick qn on the your idea of where markets and how you make decisions to sell. You mention that you grow your asset base by holding some of your development stock. If you make a judgement that Sydney is at the top of the boom, do you sell some of your Sydney holdings (or just choose to not buy any further?).

Cheers,
Redom

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Thanks Redom.

So with regards to selling, basically that decision is made before the development even begins. I decide how much profit I want to realise from a development to partly fund my lifestyle, and the rest of the stock I just hold and rent out to increase my base. I feel its the best of both worlds, growing wealth whilst at the same time realising chunks of profit along the way. Does this mean my asset base would overall be smaller than it could have been if I didn't sell anything? Of course. But it also means I can enjoy massive cash flow while I'm still young AND grow my asset base for later.

With regards to if Sydney or a market is at a boom do I just not buy, and the answer is mostly yes. If a market is at the peak of a boom I tend not to buy sites (for many reasons) but this is not always. There is a big difference between not buying an IP at the peak of a boom, compared to buying a development site. For development, its more about the numbers stacking up because its a business. If lets say you can buy a site that is showing returns of 30% return on development costs, even after u factor some market shrinkage of a down turn. Would you not buy the site just because its in a boom time? hehe I can tell you the fight for that site would be ruthless...

Cheers

leo

MTR said:

Reassess goals and progress - I like that, really important, I think many can get stuck in a hole.

Great read. Thanks

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Cheers mate.

I have learnt and gotten a lot from ppl on SS, so its great if I can give back just a little.

Cheers

leo

I know from talking to you separately Leo that you've done remarkably well. I feel that the interview didn't really reflect this though - you should add more info about some of your current and recent development deals, I'd find that inspiring.

Great interview

Re: the below, you have properties in a number of states then?

Buy in the state that is on the climb (7-9 oclock)

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I also noted you missed Adelaide in your Market round up, you'll get them off-side if you keep that up

Rose Bay sounded like a nice area based on the name alone so I had to check it out...looks like a nice area for a 1st or even 2nd or 3rd IP

Rose Bay is an affluent harbourside, eastern suburb of Sydney, in the state of New South Wales, Australia

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Great interview!

These have worked for me too:

3. Buy something that I believe has the ability to further add value through reno, subdivision etc

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3. Ensure that where I develop has good growth fundamentals

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D.T. said:

I know from talking to you separately Leo that you've done remarkably well. I feel that the interview didn't really reflect this though - you should add more info about some of your current and recent development deals, I'd find that inspiring.

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Thanks Dave.

I felt the interview was more about my path, strategies, advice etc than showcasing my investments. My wife is also an intensely private person too... if she knew all the time i spent on SS and the personal things I've disclosed... shhhh...

Leo

perthguy said:

Great interview!

These have worked for me too:

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Hi PG,

Yes i agree with you. Two of my favourites mate

Cheers

leo

I wish I had done the same as you when young instead of blowing money on fast cars and women lol.

Sounds like you are set up now.

2. Buy below what I believe to be its intrinsic value.

Hi Leo,

Excellent interview, spelled out a lot of things really well and has triggered me to sit down at the drawing board again as even though I have a few IP's I feel like I'm a bit lost and need to redefine my goals.

Just a quick question though, is it just a matter of getting to know a particular area really well to be able to achieve criteria no.2 on your list, can you elaborate?

2. Buy below what I believe to be its intrinsic value.

redwing said:

Great interview

Re: the below, you have properties in a number of states then?



I also noted you missed Adelaide in your Market round up, you'll get them off-side if you keep that up

Rose Bay sounded like a nice area based on the name alone so I had to check it out...looks like a nice area for a 1st or even 2nd or 3rd IP

Click to expand...

Hi redwig,

yes mate, I invest not only in the state i live in. Personally i believe, if someone only invests in property in 1 state.. i see it as a problem IMHO. But each to their own mate.

Where's Adelaide mate?

Leo