Nathan Birch

No that is Bogan economics.....that does not cover the inability to arrive at correct asset values...wait a minute..it is Boganomics after all.

*Snap*....just found the word for followers of "Bogan" spruikers....Boganeeshees....

 

Could shorten it yet again to Bogmix.

 

stay away from Briss, leave some for us Sash, you are scary,

 

He obviously has no idea on taxi plate values? 500k and buy 20 taxis???
A Sydney Taxi plate is averaging 350k.
A Cairns Taxi Plate is 700k.
Central Coast taxis 500k

Mind you... Maybe he 's seen the future of the Taxi industry with Uber coming along??
Maybe it will be 20 taxis for 500k soon ?

As for his advice to "buy under market value" ,arent we all trying to do that?

 

DaveM what was that word you used the other day to describe Nathan?

 

boganista, fashionista...I don't know it's confusing

 

I dont know Nathan, but I do know that Westpac is the golden child lender that he sends most his clients to, and I have always wondered just how true all the claims of 10 properties in 10 months, 20 in 20 etc, could possibly be when the whole strategy relies on constant refinances and equity pulls via one lender. Too many of the stories I see of Nathan are riddled with lending impossibilities, or at best, improbabilities... but let's say for a moment that I know nil about lending and he has a magical credit green light for his clients that mere mortals cant access, given APRA's the hammering to westpac's calculators of late, cant see his model getting people very far now. Thoughts?

 

Hmmm....maybe I need to ring WBC's risk & internal compliance department....?

 

The Westpac guy he used to refer to (Madhu) is now the managing director of Zinger Finance, Nathan's mortgage broking business. Make from that what you will.

 

Easy to get 10 properties in 10 month if you start off with excess equity in your PPR to use. That's also 10 times BA fees.

 

"through the city, play Monopoly with real cash" Jay Z

 

La familia......la dolce vita it is....

 

I got an email from another one of his ventures yesterday.
Really tough decision on whether I'm going to sign up and let him charge me to sell my data to third parties...

 

Und....it ends with a BANG...fast life....fast women....fast talking...fast death!

You da man!....read the saying on my Avatar...chump.....

 

Nathan has achieved very impressive results whether or not some of his valuations stack up. After reading the SS thread about his PM company and its behaviour I see things in a different light.
Very disappointing.

 

I just read the SS thread you are referring to above. I wasn't aware that Nathan had a property management company also. I don't think I would want my properties managed remotely that is St Mary's office for country NSW properties. It makes it really hard to follow up on tradespeople to make sure they are doing the right thing. Everything would need to be outsourced including tenant selection.

I suspect that property management is not easy in places like orange for lower end properties. If you throw in a remote property manager that can make things even more difficult.

 

Im referring more to the lending side of things, and how difficult it will be to secure that sort of volume of loans in that period of time, now.

 

Just copied my old post from SS

It came up on my facebook feed and I watched a couple, something things I agree with but some I was smacking my head going how did you not know this.

In one of the videos he was on holidays at the gold coast and he doesn't now what they were selling but they wanted him to go to a hotel for a couple of hours and they would get free tickets to movie world (or $10 tickets). He thinks it was timeshare but says be warned... I am the same age as him and I know it is either timeshare or OTP sales... Yet he says he has I high IQ?

You need to read between the lines of what he says and you will get the true story.

In the video about 'is it better to buy one house or two apartments' he talked about a 1M house dropping by 200k during a GFC. Which I agree can happen but then makes a stupid comment about the 4x 250k properites will not drop down to 50k... Umm that isn't the same % as you are in theory that the 1M property could drop by 800k (which it wouldn't happen). The 250k properties can surely drop by 50k though (which would be a total 200k)...

He also mentioned in a video and on his website (http://nathanbirch.com.au/aboutnathan.html) he has a property portfolio of 25M with loans of 10M but owns 150 something property (he has lost count!). If I had 152 properties I would know when I bought one more (153)... Maybe he doesn't have a good memory nevertheless lets break down 25M portfolio...

$25,000,000 / 150 = $166,666.66 is the average property

Yet says buy in Syd, Melb, Bris due to infrastructure... Don't know about Syd or Bris market but in Melb I think you would struggle to find an average of 166k for apartments.

Also the rental income is over 2M (according to website) which means each property is giving him $256 pw on avg (just to hit 2M).

Lets look at some deals...
http://www.news.com.au/finance/real-...-1227051194576

Extract:
Earlier this year he bought a block of 40 units in the Blue Mountains, which he believes will earn him $400,000 in annual income.

The building was a former motel valued at $4 million, but Mr Birch?s hard bargaining meant he nabbed it for just $1.66 million.

Do these 40 units = 40 properties? Also he expects to rent each property for $200 a week for a motel room in the blue mountains and have all of them rented... Good luck!

Negotiations skills are amazing I would almost suspect gang activity to negotiate a 4M property for less than half (1.66M)!! Who in their right mind would leave 2.4M sitting on the table?

Okay lets take another one...

Extract:
He also recently bought a property in Ipswich, near Brisbane, for $35,000 when comparable properties were selling for $150,000.

The article is dated Sept 2014 so recent would be last year, where do you find a house or apartment for 150k? According to RE.com the meidan apartment price in Ipswich the lowest it has been was 250k in 2006.

Again lets skip that fact - **** this guy is amazing! He bought a property at basically 80% less than value? Holy **** get me his number and ill give him a property to buy and ill pay him 10% of the purchase price if he can negotiate 80% off...

Yet his website says 'No ********' just transparent information... Please

 

I love it...the numbers don't lie....people who know their numbers know that the numbers don't stack up.

Based on the numbers...you are right.....the value of holdings and quality leaves a lot to be desired. The real question is this just a holding place before they are ...lets say passed on...to others??

As someone else pointed out.....is the core now earnings from BA services?

 

Taxi plate rates vary across the country, I think. In Darwin, it costs all but 30k for a plate. And the profit pw is about $1500. Which makes taxis a very very lucrative business. In Darwin. So I think Nathan was talking about taxis in Darwin Found this gumtree add for a taxi in WA http://www.gumtree.com.au/s-ad/morl...1-hybrid-earn-up-to-1371-income-pw/1083444843