An Interview with LeoT

[LeoT]

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.

Hey sexy40,

Its never too late mate.

Cheers

Leo

 

[D.T.]

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

But you've achieved so much more than what your write-up makes us believe.

In the other thread you said you had a goal of 15-20mil net. The write-up sounds like a completely different person.

 

[LeoT]

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.

Hi Bhp19,

Awesome that you already have a portfolio building mate. I'm really glad you found some value in the interview. Makes it all worth it.

With regards to buying below what i believe to be intrinsic value. Look, its not a dead science by any means and many ppl will approach it differently i guess, but this is my personal approach off the top of my head:

In order to try and buy below intrinsic/market value you first have to try to get a good idea as to what market value really is, more or less.

Lets say assuming I've done all my DD on an area and my research concluded that to meet my own goals, I should be buying a 600sqm or so house with 3 bedrooms and should also not be renovated. This is how i try to find out its intrinsic value of the particular target I'm looking at:

1. Research all recent sales in the area, comparing size, bedrooms, condition of house, any unique street appeal eg water views, any constraints eg on main road etc

2. Once I have all that info, the picture starts to become much clearer as to the price bracket that my target seems to fall in, lets assume here say 550k - 580k. Hence, a price secured under this value could be considered to be below true market value.

Step 2: How do you now go about actually trying to get it BMV?

Well IMHO this is where strong negotiation skills/tactics can greatly help. Assuming i am targeting a house that's on the market for 570k. First i use RP data Professional to investigate as much as i can what i'm dealing with:

1. How much the vendors paid for it and how long ago?
2. How many days has it been on the market?
3. How many names is the property in?
4. I pay attention to zoning as well because sometimes vendors and REAs will sell a property without even realising the actual zoning of it. (if this happens, time to buy the champagne )

So investigating the above, coupled with good negotiations skills/tactics and formulating a plan will put you in the best position to secure below market value.

There are a couple of other 'secrets' i have

Hope that helped mate.

Leo

 

[LeoT]

But you've achieved so much more than what your write-up makes us believe.

In the other thread you said you had a goal of 15-20mil net. The write-up sounds like a completely different person.

Dt I don't think its about my wealth mate, its just about the path I have taken and some advice. The advice in the interview I gave applies to someone who wants to achieve 20mil as also to someone who wants to achieve 3mil.

The only difference would be (lets say it was really pitched to the 20m goal, would be my tone, forcefulness and rigidity of certain ideas in the interview, which to be honest would be misconstrued and misinterpreted by probably most, so I just didn't go there mate.

cheers

leo

 

[Bhp19]

Thanks Leo, appreciate your feedback.

 

[spludgey]

Great interview, shows that there is still a lot for me to learn out there.
Especially Leo's continual drive is inspiring.

 

[LeoT]

Thanks Leo, appreciate your feedback.

np mate. Hope it helps.

Leo

 

[Neptune]

Great interview LeoT....some excellent tips and really sound fundamentals in there.

Just wondering, did you have a normal full time job and exit that to work full time in property or did you make a living from property from the early days?

 

[LeoT]

Great interview, shows that there is still a lot for me to learn out there.
Especially Leo's continual drive is inspiring.

Thanks mate. I think there is a lot for us all to learn and the moment we think we know everything - its over. IMHO learning the specific strategies is not that difficult. Even property development (assuming one is focused and wants to learn) is not really difficult because to be really honest, most of the hard work is done by the consultants and your just going along for the rollercoaster ride

The hard work is the self development stuff IMHO. Building the courage, resilience, patience, handling the fear and anxiety, negativity from most ppl, handling our doubts etc. Developing the mindset to deal with all that is the hardest part IMO, and the reality is that everything rests on this foundation. So if the foundation is weak then what can be built on it will be limited IMO.

Cheers

Leo

 

[LeoT]

Great interview LeoT....some excellent tips and really sound fundamentals in there.

Just wondering, did you have a normal full time job and exit that to work full time in property or did you make a living from property from the early days?

Hi Neptune,

Glad you found some tips in there mate

With regards to full time work this was my mindset to full time work from the beginning, I think I may have mentioned this once before in a post: This is what suited me and my goals, so each to their own.

1. I carefully chose a profession which allowed me the potential to work 24 hours a day(shift work) so I could greatly maximise my income. I knew from early on that my borrowing power would be a large factor for me if I wanted to build an asset base fast and furiously. I was in the medical profession mate. I wold work probably....umm let me think .. at least 80 hours a week, on a 7 day basis.

2. I never, ever viewed myself as having a 'job', ever. I would see it as going to the bank at 7am and having a meeting which say finished at 7pm, after which I had secured more funds for my investment goals.

3. I reached a point where eventually I worked part time then casual and retired full time from the 'job', to focus on my property business. I also did some property mentoring along the way, colleagues, friends etc.

Cheers

leo

p.s there are actually certain certificates you can get in just a few months that will allow someone to work 24 hours a day if they wanted to. Probably at $25 an hour. Just food for thought to all those ppl who are thinking of ways to boost income . Saturdays and Sundays attract penalty rates

 

[Catalyst]

Thank you for sharing your strategies, Leo. Such an interesting read, especially from someone who is still active on the forum and still having a blast in IP's. I've often come across your remarks on mindset, then this interview gave an overview on what you've achieved with that killer mindset. Fantastic!

Thanks also to Y Man for putting up the interview. Very much appreciated

 

[LeoT]

Thank you for sharing your strategies, Leo. Such an interesting read, especially from someone who is still active on the forum and still having a blast in IP's. I've often come across your remarks on mindset, then this interview gave an overview on what you've achieved with that killer mindset. Fantastic!

Thanks also to Y Man for putting up the interview. Very much appreciated

NP Catalyst. Glad you enjoyed some of the strategies.

Cheers

Leo

 

[Nattl3s]

Great post LeoT

Its always great to hear from the people who "walk the walk" instead of just "talking the talk". I liked your comment a few posts up about chosing a profession which will allow you to boost your earning power/borrowing capacity. My personal goal is financial independence and while people can get there on an average income things are certainly accelerated by a good income.
Im early on in my wealth building stage and these posts always make feel I am on the right path and now its just time and patience. Since joining Somersoft I feel like i am fulfilling the first point (in top 5 things to do) in your interview about getting into the right mindset. Cheers, nat

 

[roypropertyinv]

Great interview LeoT
Inspiring to read your story and mindset! Keep going and keep posting!

 

[LeoT]

[QUOTENattl3s;1245233] and while people can get there on an average income things are certainly accelerated by a good income. Aint that the truth I doubt that the companies who are promoting 10 in 10 with 100k passive income mention that point before ppl sign up

Im early on in my wealth building stage and these posts always make feel I am on the right path and now its just time and patience. Since joining Somersoft I feel like i am fulfilling the first point (in top 5 things to do) in your interview about getting into the right mindset. Cheers, nat[/QUOTE]

Awesome mate! Good on ya!

Leo

 

[LeoT]

Great interview LeoT
Inspiring to read your story and mindset! Keep going and keep posting!

Thanks Roy! To be honest I'm totally surprised that so many posters enjoyed the QnA and found a little value. It really makes it all worth it to write it! Felt like an essay in length! lol


Cheers

leo

 

[J_aco]

Hey Leo!

Thought I'll post a msg to let you know that I've enjoyed many of your prev posts and you've "made a difference" to someone.

1. You were always big on mindset.

2. You had a post about "treating LMI as a form of doing business". I was sort of leaning towards that anyway BUT your post convinced me. I'm in the process of acquiring IP1 and even at 90% the initial cash outlay is wayyy more than I expected. If I put down 20% depo it probably ain't the best use of cash.

3. Really liked your post, somewhere along the line meaning "developing is for someone more advanced, who's got all the property basics".
I'd be lying if I say I'm not jealous of all these people making bucket loads with developing. But I told myself I need to educate myself first, know the basics, know how to do DD to pick a suburb, growth etc etc, know the process of buying and selling, maybe try buy and reno 1st, then buy and subdiv, before I even think about developing.

Anyway, thanks again mate!

 

[SK Investments]

Hey Leo,

Great read! I have also been enjoying reading your posts, you have really drummed the mindset thing in, I went out and bought another 10 books today!

Couple of questions;
1. Can you be my mentor?
2. Does your wife have a sister?

Cheers,
Keith

 

[Gingerbeer]

Very inspirational interview Leo. The focus and dedication you had from such a young age is quite amazing.

I'm half way through think and grow rich, and finally starting to grasp the importance of mindset.

 

[Nem]

Great interview Leo!! Your posts are always inspirational and helpful!Thank you for sharing your experience!!

I am also only starting with properties, working on mindset and reading, reading, reading.... books, internet, somersoft, magazines, anything really I can find...

You mentioned mentoring colleagues and friends so if you ever decide to mentor somersoft friends let me know, I would be in

Thanks again, well worth read!