Aus Property Monthly Highlights Issue #1:
🏭 Under the hood of Commercial Property investing 🔱 Trident Strategy to reduce risk 🏠 The economics of Cash flow 💵 Capitalising on Capital Growth & Negotiating in a hot market🔥
Here's what you need to know.
You may see a little rocket around 🚀 along with the Newsletter being named “Property Launchpad”, this is because of our ethos on Property Investing being the ‘vehicle’ to your Ultimate Goal.
Why build a small vehicle when you can have a rocket?
To accelerate your investing journey we bring on the property experts from all fields, they share their tools, tricks and tips that have allowed them to go to the moon and back!
For those that need a catch up when they aren’t free for an hour at 7:30pm Wednesday night (I know I’m not), we created this newsletter, each time we run our lives you won’t miss out!
If you you have feedback for our little newsletter, please let us know Drop us a line
Steve Palise
Steve Palise is here to break down the often complex world of Commercial Property investing and how you can do it successfully with minimal cash and time. Having transacted on over 1,200+ properties, he is the man to be listening to when it comes to commercial, he literally wrote the book on commercial investing and you can get an excludive 50% discount HERE with the code “AUSPROP”!
Joe: “what are some strategies to increase the income to then drive the value of the price?“
Palise: “There are a few, obviously the first one is just increase the rent. So buy a property where it's under rented.
It might be 10 or 15% under rented, which is fine. You, you cop it, this is actually this is the advantage with buying a shorter lease. So you might buy something that's under rented like 15, 20%, and it's only got 18 months left on the lease, at the end of that time, guess what happens? You bring the rent up 20%, you go back to the lender and the property is actually worth 20% more as well. So there is a fabricated capital growth and all you've done is got them on a new lease. That's it!”
Jane Slack Smith
Mortgage Broker, Investor, educator and creator of Yourpropertysuccess.com.au, Jane started off as a mining engineer / explosives expert so understands a thing or two about risk and how to best avoid it
Jane: "I call this my Trident Strategy where you buy a property with 3 strategies to make money."
1, Buy below market value, know the market and how to negotiate. Which is hard in this market at the moment, I understand that.
2, Buy in a capital growth area. So I have a lot of money in the long term
3, Buy with a renovation. Add value along the way
If I can minimise this risk and make money in 3 ways, then if I stuff it up, I have 2 to fall back on, I'm in! I can make money, nice and easy meat and potatoes property investing.”
Chris Dusting
After building a substantial multi million dollar portfolio with commercial properties, resi and his own bloody island! Yes, island. Chris has conquered many mountains and shared his wisdom. His Youtube channel is not only educational and valuable, it’s actually fun! Check is out HERE
Jef - “Where do people fail in property investment?“
Dusting: “They fail by not starting, or something wrong in the process. If you’re just starting out, just remember, there are only 2 returns you can get from property investment, cash flows and capital growth.”
“Try not to get too overwhelmed in the process. At the end of the day, there are 2 processes that generate 2 results that equal your ROI If you want a starting point, focus on these two”
Chris Gray
Chris Gray is the founder of Your Empire, retired from full time work! Having started investing in real estate at the age of 22 and now built a 20 million + property portfolio.
Joe: “What are some of the skill sets that an investor requires to make these types of returns happen for themselves?”
Gray: “The best one is no emotion, it's best not to have any emotion whatsoever.”
“The reality is because if you listen to friends and family, the media, all those people, you'd never do anything because it's all scare mongering and all this kind of stuff. So concentrating on the numbers, even if you're not a numbers person, like the numbers I deal with, aren't that complicated. The nice thing for you, and if you're not a numbers person, get a bookkeeper or get a friend that can do basic Excel. You don't need to do really fancy, nowmassive spreadsheets, the simpler the better!”
Joe: “Tell us more about what you mean by “Don’t Fear the Gear!”
“The true meaning behind this is don’t fear debt! If you go and take on a whole bunch of debt, especially non-deductible debt then you're stupid, you're going to end up in a lot of trouble. It’s a lot like drinking alcohol, you do it moderately. You can even push the limits a bit, but still behave yourself. And it can be the best thing in the world! Trying to get rich by paying cash isn’t going to work, the only way is to borrow money.”
Five Things to Consider Before Buying
Every negotiation is different. That is why we have brought on Expert Negotiator Scott Aggett of Hello Haus, Scott unloaded the value on how to control the negotiation in a hot market and much and gave us the top 5 tips to consider before buying your next property.
Don’t buy anything if you have not seen it twice. If you saw it once, go back at a different time of the day where you have seen it prior. Bring another person with you, friend or family, to get a second opinion about the property.
Know where the transport links are. Understand if it’s exposed to noise like being under a flight path or trains and consider the traffic scenarios.
Do you want a natural light? How do you want the property oriented? Do you want it facing the north, south, etc. (North facing is the usual preference)
Always conduct building and pest inspection. Understand if there are any problems in the sewers, with the roof, or even potential issues with trees.
Do a thorough review of all the documents you can grasp. This is especially crucial if you are doing an apartment townhouse in a strata or body corporate scenario. Find if they are in the sinking fund, arguments or disputes with the neighbors, or any major work that might require raises or special levies. Make sure you have ticked these five things before negotiating on your next investment.
Weekend Essentials
A book we couldn't put down:"Billion Dollar Loser: The Epic Rise and Spectacular Fall of Adam Neumann and WeWork"
A podcast worth the listen:How I Built This is always a go-to.
The last great article we read:This Piece by Kirsten Craze is an interesting read for some Post Pandemic dreaming in terms of migration and demographics
Facebook Post of the Month:
Toan has been a member from almost the beginning and has had great success with his most recent purchase, great work mate, keep it up!
3 others worth a read:
Launchpad Property Tools
www.walkscore.com - Super valuable FREE tool to understand the “Walkability” of a location but also digs down to the exact property, this is an investors best friend!
🔥 Thanks for reading Aus Property Monthly, if you loved it, share with a friend!