How we bought 20 IP's in 5yrs
- Thread starter Brenda Irwin
- Start date
Hi all,
QueenBee I like that cherry on top bit would that be your dream PPOR in the future?
Thanks Novski for reminding me of Bazza's question of why so many so quick. The world population is growing & housing will get scarce & expensive.
Les & I watched while Brisbane boomed & figured the ripple would be huge. We were right & it's still going.
We are both early 40's & reckon we'd better make up for lost time. Also who wants to suffer severe budgeting for more than 10-12yrs. Not us that's for sure. Better to have a big do without now than wait & perhaps not want to do the hard yards at all.
Have been watching Toowoomba. Not much gain in it at present. Oakey (1/2hr West) has a few nice cheapies at present with reasonable returns. Latest is the highway between Dalby & Kingaroy is to be upgraded. Don't know if that will alter IP's in those areas or not.
Thought of a couple more D's: Developers & Dummies (don't know what their property is worth) & Dodoes (forgot to put the rent up to market value so just sell the place instead.)
Surplus is what is left from wages to repair & maintain 20IP's!
Thank goodness insurance covers most major costs but little fixets can add up if you don't watch it.
Cheers Brenda
QueenBee I like that cherry on top bit would that be your dream PPOR in the future?
Thanks Novski for reminding me of Bazza's question of why so many so quick. The world population is growing & housing will get scarce & expensive.
Les & I watched while Brisbane boomed & figured the ripple would be huge. We were right & it's still going.
We are both early 40's & reckon we'd better make up for lost time. Also who wants to suffer severe budgeting for more than 10-12yrs. Not us that's for sure. Better to have a big do without now than wait & perhaps not want to do the hard yards at all.
Have been watching Toowoomba. Not much gain in it at present. Oakey (1/2hr West) has a few nice cheapies at present with reasonable returns. Latest is the highway between Dalby & Kingaroy is to be upgraded. Don't know if that will alter IP's in those areas or not.
Thought of a couple more D's: Developers & Dummies (don't know what their property is worth) & Dodoes (forgot to put the rent up to market value so just sell the place instead.)
Surplus is what is left from wages to repair & maintain 20IP's!
Thank goodness insurance covers most major costs but little fixets can add up if you don't watch it.
Cheers Brenda
Congrats Brenda and thanks for sharing the details and your strategy with us.
I have not really added up the total value but assuming just 1.5mill @ 5% per annum growth (75K yummm) will put you into an immediate retirement /financial freedom mode if you wish so.
Achieving this number with the starting amount you had, is something, especially the speed, that I admire. It might just get my brain cells motivated again for the next couple of them.
Lots of people I know would have blown your initial payment on a new car or holiday or something other very exciting thing (for a week or 2) then gone back to the same depressing lifestyle and watching how life goes by.
Cheers,
Tibor
I have not really added up the total value but assuming just 1.5mill @ 5% per annum growth (75K yummm) will put you into an immediate retirement /financial freedom mode if you wish so.
Achieving this number with the starting amount you had, is something, especially the speed, that I admire. It might just get my brain cells motivated again for the next couple of them.
Lots of people I know would have blown your initial payment on a new car or holiday or something other very exciting thing (for a week or 2) then gone back to the same depressing lifestyle and watching how life goes by.
Cheers,
Tibor
good work Brenda, awesome!
I wonder though, what is the reality of such a strategy now high yield properties are very very rare in Bris? Even the likes of Ipswich and Dbay are not returning the same rental yields in comparison to cost.
I think the main thing is being strtegically flexible in different stages of the market. I only wish I was here in 98 (severe jealousy).
Are you looking at any high CGrowth/Cost properties, ie Bris water front?
I wonder though, what is the reality of such a strategy now high yield properties are very very rare in Bris? Even the likes of Ipswich and Dbay are not returning the same rental yields in comparison to cost.
I think the main thing is being strtegically flexible in different stages of the market. I only wish I was here in 98 (severe jealousy).
Are you looking at any high CGrowth/Cost properties, ie Bris water front?
Cherry on the Top
No Brenda, the cherry on the top won't be my own house.
Rather my strategy is: buy three low cost properties (Under $90k) with positive cashflow, nothing under 10% yield. (Is that what you call it?) My first IP is 10.91% and my second 12.36% and my third will be similar. That will give me some passive income. That's my pyramid. My cherry on the top will be a house I can get for around $150k but have higher CG than the other three, so will actually value up to at least $170k. This will not have as much yield % as the other three - but hopefully more CG. Sorry if I'm repeating myself. The other three can support it if necessary if's it's -ve.
Each lot of houses will be structured this way. Then if anything happens, only one pyramid can topple and not bring the rest with them.
What do u reckon? I would like 12 pyramids.
No Brenda, the cherry on the top won't be my own house.
Rather my strategy is: buy three low cost properties (Under $90k) with positive cashflow, nothing under 10% yield. (Is that what you call it?) My first IP is 10.91% and my second 12.36% and my third will be similar. That will give me some passive income. That's my pyramid. My cherry on the top will be a house I can get for around $150k but have higher CG than the other three, so will actually value up to at least $170k. This will not have as much yield % as the other three - but hopefully more CG. Sorry if I'm repeating myself. The other three can support it if necessary if's it's -ve.
Each lot of houses will be structured this way. Then if anything happens, only one pyramid can topple and not bring the rest with them.
What do u reckon? I would like 12 pyramids.
Well done Brenda
I'd bet people tell you "it can't be done here/now" and "you were lucky to start in 1998".
I remember my turbocharged buying spree between 1988 and 1991. People have told me it couldn't be done again. Sure I wouldn't do it that way again, but that doesn't mean others couldn't or shouldn't.
You found a niche and stuck to it.
Inspirational stuff.
PS My 3 D's for years have been death, divorce and destitution.
Regards
Paulzag
Dreamspinner
I'd bet people tell you "it can't be done here/now" and "you were lucky to start in 1998".
I remember my turbocharged buying spree between 1988 and 1991. People have told me it couldn't be done again. Sure I wouldn't do it that way again, but that doesn't mean others couldn't or shouldn't.
You found a niche and stuck to it.
Inspirational stuff.
PS My 3 D's for years have been death, divorce and destitution.
Regards
Paulzag
Dreamspinner
Hi Brenda,
You've really done well. Congratulations.
People find their own niche, and concentrate on that. You've found a niche which suits you really well.
And I agree that you've done really well to expose your financials to the perving public in this forum.
I'd be wondering though if you were limiting your potential for adding value by getting just lower value properties.
Could there be a chance to buy one property at $300K- using all your skill in finding a good property- and then use all your reno skills to add at least as much percentage value (possibly a lot more) as you have on the smaller properties?
You've done your apprenticeship on the smaller value properties. Could bigger properties now do much better for you?
You've really done well. Congratulations.
People find their own niche, and concentrate on that. You've found a niche which suits you really well.
And I agree that you've done really well to expose your financials to the perving public in this forum.
I'd be wondering though if you were limiting your potential for adding value by getting just lower value properties.
Could there be a chance to buy one property at $300K- using all your skill in finding a good property- and then use all your reno skills to add at least as much percentage value (possibly a lot more) as you have on the smaller properties?
You've done your apprenticeship on the smaller value properties. Could bigger properties now do much better for you?
Believe it or not, most of the IPs were listed at median price in their respective areas. We just offered less & the deals were accepted.
Yes, by all means I check out ALL areas & prices for perhaps a high Cap gain invest but I don't believe (for us) now is the time to jump in on those.
Strategy is to build up the cashflow with increasing median rents then with a good solid base, go for the more speculative ventures.
Beach front in Bris is very attractive but we could only hold 1 or 2 of those at a time then wait for them to appreciate. I hate waiting, I'm a happening person so busy median IPs suit me best for now.
I have no family mentors at all. My rellies believe all debt is bad & you can't make money on RE. Mentality is you could get run over by a bus tomorrow & you won't have lived. Each to his own but thankfully they've given up critizising (blowed if I can spell that word). Up too late last night at Robert Kiyosakis Bris concert.
Robert confirmed RE investing was the ticket, but he also said think bigger & bigger. Why the heck not? Very inspirational. Pass on the $7000k 3 day seminar in Sydney tho.
Cheers Brenda
Yes, by all means I check out ALL areas & prices for perhaps a high Cap gain invest but I don't believe (for us) now is the time to jump in on those.
Strategy is to build up the cashflow with increasing median rents then with a good solid base, go for the more speculative ventures.
Beach front in Bris is very attractive but we could only hold 1 or 2 of those at a time then wait for them to appreciate. I hate waiting, I'm a happening person so busy median IPs suit me best for now.
I have no family mentors at all. My rellies believe all debt is bad & you can't make money on RE. Mentality is you could get run over by a bus tomorrow & you won't have lived. Each to his own but thankfully they've given up critizising (blowed if I can spell that word). Up too late last night at Robert Kiyosakis Bris concert.
Robert confirmed RE investing was the ticket, but he also said think bigger & bigger. Why the heck not? Very inspirational. Pass on the $7000k 3 day seminar in Sydney tho.
Cheers Brenda
Brave gal in Qld...
Hi Brenda,
Very brave to disclose your true financial situation... (* I even added all the purchase prices together... to find your asset base)
So it sounds like you're a cheap "cashflow positive" sort of gal...
Money is money... cashflow is king... growth makes you rich...
With real estate there are hundreds of ways to make $$$...
Ross Sondergeld
Ross for Property
Hi Brenda,
Very brave to disclose your true financial situation... (* I even added all the purchase prices together... to find your asset base)
So it sounds like you're a cheap "cashflow positive" sort of gal...
Money is money... cashflow is king... growth makes you rich...
With real estate there are hundreds of ways to make $$$...
Ross Sondergeld
Ross for Property
Dear Geoff,
Nice triple D.
Now tell me the last one that I purchased was left vacant by the former owner for two years. Then he did a tiny bit of renovation but did none of the important visual stuff. Did not want a for sale sign out the front even though it is a high profile location.
Does that qualify as a dummie seller?
Cheers,
Sunstone.
Nice triple D.
Now tell me the last one that I purchased was left vacant by the former owner for two years. Then he did a tiny bit of renovation but did none of the important visual stuff. Did not want a for sale sign out the front even though it is a high profile location.
Does that qualify as a dummie seller?
Cheers,
Sunstone.
