Geoff1's Biog

From: Mike .


Hi Folks,

After each Forum Hall of Fame announcement I usually follow up with a little Biography of that person by taking snippets of their posts and weaving them together to give a snapshot of their investment style.

Under the microscope today is Geoff1 who began his investing career when Henry Kaye was just "Junior". So Geoff is not short of some good IP yarns including a classic Auction story which we wannabes have only ever dreamt about. I'll get Geoff to recount that a little later.

To kick things off Geoff, the obvious question is - how did you get into property investing?

Geoff:

I started investing??? on the shock market at age 21. LOst my shirt and then bought a book on how to make $5Million in property and bought my first house in 1971 at 26years old. Mismanaged that but still made money and bought a home to live in...found out about P+I and no tenants and no deductions skip along to 40 y/o and passed over for promotion and I got my wake-up call.

Mid-life crises and mid career crisis...made a goal to leave work by 50 and left by 47 with over a Mill to give prop seminars and write books...and invest.

Thats what I am doing.

Being so conservative I have taken longer than the gurus but I have seen a lot of fast talkers and movers wiped out.

Is that enough?

Mike:

Geoff, haven't you forgotten something?

Geoff:

That was a very long time ago, Mike.
It happened like this.
Read Nickersons book "How to turn $5000 into $5 million in real estate" (from the library)-got excited... (Mike: No)
Looked around for a property... (Mike shakes head)
found an old cottage for sale in Brisbane with tenants.
Made an offer ...accepted...went to the bank for a loan... got laughed at.

Told I could have a personal loan for a car... (Mike: Nope)
went to my credit union got laughed at...got told I could have a loan for some furniture... (Mike: No)
Said ok I will buy some furniture $2k and a car $5k...got the money and I.... changed my mind and bought a rental property instead...(Mike groans)

Found I had a bunch of bikies in there and went thru some learning experiences until they were thrown in the "clink" for break and enter. Hardly the basis for a confident start. Still I found after 5 years I had almost doubled my money..thats when I thought "there is something in this property lark."

I'm trying to remember Mike...the rent I think it was $30pw. Gee thats $1500 per year or a 20% return!!!... (Mike: That's not what I mean, Geoff!)

Thats ok if the bikies decided to pay the rent that week...I think interest rates were about 6%. (Mike still shaking his head in disbelief) I don't remember heavily analysing it or feeling threatened...consider tho I had just lost my shirt on the stock market after getting 100% returns overnight (for a while) so property was real slow relatively.

In 1987 I bought a block of flats and they were about 3 times the price of a house and I did "do the numbers" then.
My partner was "scared " of the big loan number so it was reassuring cos I found that "at worst" they would cost me $3000 pa -ve...and I was saving $13500pa so I knew it would work...in actual fact they ran positive after noncash deductions, rent increase and minor refurb...

Its about time I confess to giving the occasional seminar... (Mike, testily: NO Geoff...something more important!)

I do 4 per year in Brisbane....and I have written a book "the 10 Golden Rules of Property" (don't bother checking Amazon) (Mike, losing it: NO NO NO NO!)

I know where you are coming from, Mike! I'm married to a (wonderful) American lady but she hates to cause a fuss or to negotiate.

Mike:

Well done, Geoff. You got it, finally. Geoff, how tough were those early days?

Geoff:

We lived in a crappy 1/2 house in a so-so area in 1979 (rented the other 1/2). Friends/relations had nice homes and we drove a really crappy car and we were always told to spend up you could afford it. Well 13 years later we still had a crappy car (85 corona) but enough property to leave work forever.

Today I still see those workmates occasionally. They are miserable, stressed and cranky working longer and longer hours for their weekly handout (wage). Their total focus is the carrot of super hanging at the end of a 35 year long pole. Meanwhile the properties are going up & up with 2-3 years capital growth (no taxable) equalling their 35 year super payout.

Property (well located well chosen well managed) will give you a degree of lifestyle and time to do what you want to do that 'they' can only dream about...and its so damn interesting too.

So drive the crappy car (cars depreciate), live in the crappy unit (homes dont bring income) and keep investing in income producing property and one day they may ask you how you achieved your assets and lifestyle and you may say ...Well you know, I must have just got lucky.

Mike:

Well said, Geoff. Now, I want to talk a little about your seminars which have been well received. Here is one example from the forum:

"As you're probably aware Geoff1 does in fact run seminars.

I have to say his was without doubt the absolute best value for money education I've ever spent. His 8 hour seminar is jam packed with practical useful stuff. It's not just Geoff up there - he gets what Napoleon Hill would call his "mastermind forum" up there ie accountant, quantity surveyor, town planner, lawyer etc to all give you great info.

I think real "nuts and bolts" info about how to add value to property, buy well, do your research, contracting tricks, figuring out whether you can or can't develop/subdivide etc a block is what most people are looking for rather than the ra ra personal development stuff.

The best thing was that he was out there doing the investment thing in my market - Brisbane.

I'd welcome a similar seminar from those who've got the years of experience and own many properties."

Mike:

Geoff, you obviously got this guy fired up. Can you give us a sample of what you cover in your seminar?

Geoff:

High capital growth with high rental yield! Is that possible? Absolutely. Is it easy to find ...No, but if you dont want to look for it, then pay retail or retail+ like many average investors. Why are people satisfied with low to average yields 5-7% on an average property unit/ townhouse in mediocre locations with no 'X' factors to add value, and "maybe" capital gain (or loss)? Is this the road to riches?...I think not.

Some people say "I want to invest but I haven't got the time" I say thats funny I thought we all had 24 hours each. It looks like you'd better keep working for a living then. I like to buy in 'good' areas, achieve a 7% capital growth and 8% min-12%+ yield and bought 10-30% below market and bought for about land value and with an 'X' factor to add value.. When you do this you will never use your own money again as you have bought the equity for the next property, your cashflow is positive and you can power straight on to the next one.

I've got an expert renovator Paul Eslick to take people through a number of actual examples of I.P's he has renovated in Brisbane.
Paul has McDonaldized renovation down to a 'cookie cutter' system and the system works...
We have been doing "cosmetic make-overs" for some time...and they work like a dream.
I cant get you to millionaire in 29 months but anyone with the right knowledge can in 6 to 10 years (safely).
Mine is a GRS...Get Rich Slow.

Here are other ways to achieve 10% returns:

You can

...buy it
...build it
...renovate it
...decorate it
...sub-divide it
...strata title it
...better manage it
...add a bedroom (cheaply)
...slide it
...wrap it
...flip it
...change the use of it eg student accom, back packer, commercial short term accom etc
...furnish it
...get approval to put up a sign that you can rent out, rent storage space,
...charge rent for white goods
...put in coin operated machines (for flats /units)
...you can do 1 or a combo of all of these
...I am now looking at properties with 15% to 20% returns...10% seems low to me now!

There was a lady at one of my seminars who said, "I just cant find any bargains."
I said, "You're right."
She said, "Whaat...arent there any bargains"?
I said, "No... there are heaps of bargains...but YOU wont find them because you dont believe you can."

Let this be a lesson to other IP investors...can you get +ve gearing?...yes if you have the control...these days I talk about B.A.M.!!

Buy well...

Add value and ...

Management ...

get the property management and the financial management right...
and one more ...control... be the one that controls the property...not the body corp or the unit manager or the neighbouring unit ...its you...that can add value ...its you that selects the tenants ...its you that makes the mistakes and learns..
What a fantastic start...hey now dont get too creative...go out there and do it again...use the cooki cutter method and bake another one just like the other one...

As far as bargains... I have spoken to enough investors and bought enough myself over the last 29 years to know...repeat...to know that there are heaps of bargains out there.
There are motivated sellers everywhere...just the 3 desperate "d"'s...divorce... death...and destitute will provide more bargain property than you have money to buy.
They won’t be obvious to the "average" public servant investor whittling away his life in a cosy office chair.

One eg bought $118k at auction...sold 6 months later for $180k expenditure about $500 (It was one of the "d"s)...Why the hell didn’t the agent buy it?? ...its a mystery.

Mike:

Geoff, how about telling that amazing auction story now.

Geoff:

Okay, I hope this inspires you!
Research 5 minutes, experience 28 years.
This is exciting and where the serious investors among you are heading.

Let me tell you the story of Sat 10/6/00.

This week, too busy to look at the 3 flats returning $16380 pa on a 37 perch (935sq met) Res A block in a blue ribbon suburb 7 k's out from CBD... so I asked my mate to look.
He said they were promising .
They were on 2 + lots (a major bonus Twist ) and were 100 metres from the train (a major advantage) but they were asking too much $210K.
No worries we will just turn up any way. Arrived at 9.55am for the auction at 10 am.
(I dont recommend this by the way - I have been doing it so long that I dont need acres of research - and so will you after 10 years...if you last)
Quick inspection to assess the potential and the rents....$315pw rent...we can increase it to $350 easily.
Assess the land value (my secret method), decide to buy if I can get the property at land value and a min of 10 % return. ie less than $163800.
Dont expect to buy...dont care....have another auction at 11am....could be a better deal.

Auction starts... dont want the auctioneer to pull a high bid... so call $80k...auctioneer accepts (to my suprise).
He calls a bid of $90k.
I question the auctioneer, I didnt see anyone bid.
He points out the bidder...we exchange bids to $145k...we stop bidding...
the bidding stops...interesting?
Is that a real bidder or a plant?...
The auctioneer sees the vendor and says he will sell for $150k...interesting...
The other bidder goes to $147.5k ...
Why did he do that? he had the highest bid any way. ]
Is he stupid or a plant?
We dont know so we dont bid.

The auctioneer passes in the property which is what we wanted (and expected).
Agent appears to negotiate with the highest bidder at $150k, cant get agreement...comes to us ...
We say 14 days finance ...he says no...we say ok but we want 40 day settlement...they agree.
He says ok...@ $150k ...thats 11% return from day one ...no money down ...105% finance cash +ve before tax deductions!!!
We say 3% deposit, he says ok and we have a deal...
They have someone interested at $195k. We are back on the market...in 2 hours...

I think...Robert Kiyosaki "this is your life".

Is this fun or what?...I used to work all year for $40k... and you can make that in 2 hours!

Work smart not hard (if you know how).

A day in the life...of an investor.

Mike:

Great bedtime story for us wannabes, Geoff. But we're running out of time Geoff, can you finish up with a couple more tips?

Geoff:

Sure...on Valuations

1/ I would find out who is on the banks panel of valuers.
2/ I would engage one of the panel valuers therefore the valuer is working for me.
3/ If I wanted a high valuation I would do the research on the highest sales ignore the desparates and present that to the valuer.
4/ If I want a low valuation (to negotiate with the vendor) I would include all those desparate resales.
5/ If the bank did the valuation I would insist on seeing the valuation or I would not proceed. They may be stealing your home equity to buy an overvalued IP.
6/ It still comes back to doing your own research, or commissioning some one independent to do it for you.

You have to treat your valuations like a sales process.
Were you there when the valuer went through the house?
Did you make him aware of all the amenities in the area.
Did you tell him about the highest sales in the area? You find this out from your agents research.
When he said the property was worth what he said it was did you ask him to justify it?
Did you show the agent why your property/s were unique because of this.. and this.. and this...
Did you form a relationship with the valuer to make it difficult for him to give you a lower valuation than what you had told him you expected....
or did you do what most people do and let him pick up a key from the agent and make up his own uninformed mind.
If you want to get capital gain that you can use to buy more property then you have to manage the situation.

I always manage my valuations and 90% of the time they come out exactly what I tell (& show) $ prove to the valuer they are worth!

Re Average Investors

The developers in my suburb just love them ...they say "we just go out and build 'cos we know the marketers will find investors to buy them."
Consequently, the vacancy rate for units is 5% to 6% and the rate for detached Houses with land is about 1% to 2 %. (tight)
It has killed the chance of rent increases for unit owners as the developers keep on supplying units no matter what the demand is.

It is now so widespread that the valuer at the AIA (Australian Investors Assoc) property workshop said that 40% of all property deals are done this way. 40%!!!!! Thats a lot of $12,500's.(and some charge more)

I've seen very average properties in secondary positions on main roads sold by the marketers at very high prices. Say $180k, and 2 blocks away, in better areas, 10 year old similar units are selling for $125k and 20 year old are selling for less than $100k and 25-30 year old selling for $70-$80k. Get the picture.

When you realise that capital allowance is now clawed back upon sale and there is no capital gains indexation for inflation, then the Brisbane unit market looks like a recipe for disaster. I wouldnt go there!!
If this is the type of property that investors are coming to Brisbane to buy then they may as well stay in Melbourne and pay too much down there. At least you can drive by it.

Is anyone tired of hearing people buying properties that are average, average, average. eg Is this unit from this marketer better than this unit from that marketer?

Sad, sad, sad.

There is a saying ...a fool and his money are soon parted...

in Qld that separation takes place after the "free" flight and "free" lunch.

Go for it!!

From my 28 years experience in property there are only 2 truly non-profit organisations that I know of in my area of interest:

The Australian Investors Association and The Property Owners Association

I am a member of both and they are both fee based and are both kosher.

I recommend every investor to join these associations if you are truly interested in the truth about investments... they ridicule the scammers when they are exposed.

Mike:

Geoff, can you leave us with something inspiring?

Geoff:

Hey, I am so inspired by these words by the President of the Australian Investors Assoc...enjoy...

"In the battle of life, it is not the critic who counts - not the person who points where the strong one stumbled
or where the doer of the deed could have done better.

The credit belongs to the person who is in the arena...who, in the end, if he/she succeeds, knows the triumph of high achievement and who, if he/she fails, at least will never find his/her place among those cold and timid souls who never knew
either victory or defeat."

Theodore Roosevelt

it means in Aussie "ava go" ya mug!!!!

Mike:

Before you take off Geoff how can you be contacted?

Geoff:

I've compiled a comprehensive property booklist. Email me if you want me to send you a copy...

doidge@dataline.net.au

My website address is:

http://www.financialsuccesssystems.com

Remember, there is no au just .com and 3 sss !
 
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Reply: 1
From: Simon St John


Mike

I've printed this out and will pin it to my forehead.

I imagine others will too.

Thanks for the effort in putting this together!

Simon
 
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Reply: 1.1
From: G D


Mike,

I am simultaneously flattered and
worried about you ...

how can you have so much spare time to paste together a "this is your life" of this dimension?

Why aren't you out there finding the deal of a lifetime...?

If you haven't made a mill...yet, I invite you to breakfast with me in Briz vegas after my next seminar (Sat 2nd Mar ...blatant plug)
and I will personally give you some guidance and insight to the Brisbane market (or property in general).

I think you have made good use of poetic licence ...ie I don't remember saying all that stuff... but you are good...

even I got inspired and excited ...again...

Hey... if you want inspiration...read the article in Australian Property Investor mag Feb/Mar edition


I now write the renovation (cosmetic makeover) column.

Newbie investors Mark and Sue Dugmore buy well...

add "cheap" value and are so excited to be on the path...

their "Paul Eslick" based 'make overs' are an inspiration...

have a look at the bathroom and kitchen 'before and afters' that they have done 'for a pittance'.

Its in the API Feb/ Mar edition Page 32-Page 42

Mike ...thanks for reminding me that ...maybe...

I did add something to this great resource...the forum...

maybe... I did give some people the belief that they had a choice...

maybe that they could become financially. free..

that if Geoff1 made it ...even though he initially stuffed it up... then...

maybe ...just maybe...

newbie investors would think...

"you know I think I could do this...and...

I'm going to give it a go"!

Isn't that what it is all about...

belief and having a bash...!

Geoff1

aka Gee Dee
 
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Reply: 1.1.1
From: Mike .


Hi Geoff,

I've got a learning disorder called Forum addiction and I do the Forum Hall of Fame and Biogs for therapy.

I'm in chilly London right now and finding the deal of a lifetime in this weather is nuts. I've already had one brolley turned inside out.

I'd love to take you up on your offer for breakfast just to get some rays from "Godzone" country as you like to call Brisbane. In fact, if I had a million, I'd trade it in straight away for some rays.

Speaking of renos, I'm renting a one bedder in a 2-storey Edwardian. I don't want to give too much away because I'll be doing a future post about it but I've dubbed this place "The House of Mirrors". Talk about creating the illusion of space! My landlord (John), who has promised to let me pick his brain on PI, is cramming 20 one bedders into this house. My place is in the loft space!

Walls are eggshell white (naturally). Door handles, standing lamp and hanging candelabra style ceiling light in brass for elegance. Marble 30 X 30 cm marble floor tiles in standard kitchen for a touch of class. Wood features like doors, skirting, toilet seat, curtain rod and chest of drawers for warmth. Blue carpet, yellow curtains, and orange sofa to add large splashes of colour.

Rockwool insulation and electric heaters for warmth and coziness. High speed cable connection for phone and internet.

How about this story from John yesterday...a guy in his 80's doing Geoff Doidge style renos for 40 years hands business over to son but gets bored and buys a place in upmarket London somewhere for £15 mill and spends £4 mill on refurb including turning on all electricals and electronics with a hand-held gizmo from outside. Sells 10 months later for £25 mill. Just made a lazy £9 mill because he was bored!

As Geoff says, do it till it becomes second nature and the opportunities will become blindingly obvious.

I agree with your comment regarding the Forum, Geoff. I've read Jan's books, Robert's books and Geoff's book (singular), but if I was asked to choose between any book and the Forum as my only source of info and inspiration, the Forum gets my vote by a country mile. The Forum RULES!

To everyone who has been wondering what is happening with the Property Archive and Apprentice Millionaire Guide, well I'm back online again and will be flooding the Forum with the old posts in the next few days. Happy days are here again.

Regards, Mike
 
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Reply: 1.1.2
From: Robert Forward


Hi Geoff

I for one hope that your new found spark will mean you will start posting on the forum more often again.

I for one would like to see you post regularly again. And I dare say I'm not the only one either.

Cheers
Robert

The Sydney "Freestylers" Group Leader.
 
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Reply: 1.1.2.1
From: J Parker


Mike,

you are a legend! Thanks for putting all this together and I'm sure I'm not the only one that appreciates it. We all enjoy reading the success stories of people like Geoff and it's thanks to you that we get "Current Affair" like interviews. Very entertaining too! Look forward to your upcoming posts.
Cheers, Jacque :)
 
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