Comments on: A sad tale of positive cash flow property

By: Michael Law

Michael Law — Thu, 19 Aug 2010 03:14:28 +0000

You know I am really sad to hear about this story. I’m 23 years old with my own import and distribution business, after reading his initial story I was bulldozed into the property market…. I thought what inspiration this story gave me.

Over the last year, I still haven’t bought, the figures have just never added up. I thought it was because I was more into business and therefore my risk allocation is different. Now I hear this, i’m glad i’ve stayed out of an area that I clearly do not understand just yet.

I never realised he had parents as gurantor. Explains alot mind you.

Michael

By: chris

chris — Sat, 12 Jun 2010 15:33:29 +0000

I remember reading that article in a new plymouth motel room while away on a business trip. Inspirational story that captures the youthful ambition to make a difference and be successful, not bad for someone starting out.
In hindsight it’s probably fair to say that this young man determined as he was, to be a little bit of an idealist at heart, but like some have said, it’s usually safer to buy up in the major centers as a hedge against lower rents and lack of job prospects.
I have one rental property in otahuhu AUCKLAND and i paid a little more than what laurence paid for his properties but it made financial sense to buy it still because otahuhu sits slap bang between two of the biggest industrial areas in auckland (Penrose and East Tamaki) so even in a recession location is king

By: Robbie

Robbie — Sun, 16 May 2010 04:50:27 +0000

In Response To…
Heidi Says:
May 3rd, 2010 at 9:43 am
MrB Says:
April 30th, 2010 at 6:33 pm
Just goes to show: You can’t put an old head on young shoulders

Well he did have old heads…his parents the guarantors!!! Lesson don’t overcommit to your off spring!!!!

I agree we need to teach them to make their own way…not pay their way!

By: Jackson

Jackson — Wed, 05 May 2010 00:11:18 +0000

Take my hat off to this guy. i am 20 and own 2 with ambitions to own a lot more. i do have guarantors behind me and i have done my homework. i would love to talk with laurance and once we are on a level playing field have a race, first to have a million in their bank wins. with this desire and ambition if you fail once its not the end of the beginning in fact its the opposite. he is much better off now than he was when he started in my opinion, only a fool makes the same mistake twice.

By: Kurt Jacobson

Kurt Jacobson — Mon, 03 May 2010 16:40:24 +0000

What matters now is taking this as a hard lesson learned and using it to get it right the next time. It would be a shame for him to never invest in property again. With a better plan he could do quite well next time and pay back the money lost on this venture. He has time on his side.

By: Phil H

Phil H — Mon, 03 May 2010 10:24:15 +0000

I remember reading that too.
My main concern was he didn’t seem to be diversified, all his eggs were in one basket, or street as the case was.
Obviously he was overstretched too.
Amazing the bank/Westpac lent him so much to go and do that.

By: A W MCDOWELL

A W MCDOWELL — Mon, 03 May 2010 05:18:20 +0000

THE comments were great. there r a lot of people out there that really know there stuff. I lost $500 000 (1/2 a big one) after 20 yrs in the bussiness. DO not go guarantor 4 any one ! There is all ways another answer or way. CASHFLOW HAS 2 B A MUST. NOT A MAYBE OR WE WILL GET THRU. A MUST. IMPERATIVE . HAving been broke after doing ok is hard at any age but a lot of people love 2 give u another kick when u r down. I started as soon as I could and those comments would have helped. As was said, DO YOUR HOMEWORK!

By: Ken Landeman

Ken Landeman — Sun, 02 May 2010 22:07:30 +0000

I dont know of any sucessful property investors that have not gone down a similar track at some point in their career
and perhaps at such a young age, but with the knowledge he has acquired I can see a future sucess story about this guy who went broke at 22 and now is a major player in the property business

By: Heidi

Heidi — Sun, 02 May 2010 20:43:44 +0000

MrB Says:
April 30th, 2010 at 6:33 pm
Just goes to show: You can’t put an old head on young shoulders

Well he did have old heads…his parents the guarantors!!! Lesson don’t overcommit to your off spring!!!!

By: Glenn Morris

Glenn Morris — Sun, 02 May 2010 20:05:33 +0000

The stategy might have worked. He messed up by being under capitalised (like not having reserves to cover a negative swing) (this is easy to see because he needed his parents as garantor) and blowing his own trumpet. I wonder what he did once he had finished the project. I bet he sat back, gave up his day job, and started living the good life. I wonder what his brother (or sister) will be thinking. I wonder if his parents will help him again.