My Story 10+ Properties by 30 yo

Hi Michael, firstly very impressive story and i really enjoyed reading your comments! I don't post much, but use SS for a lot of researh which led me to you! I'm 31 & wife 26, we too are about to embark on a IP buying (spree) in the next few years too align with our goals, which seems to be close to the same as yours. In areas you have mentioned. I have a good team onboard and currently have 4IP's and 1PPR. I believe good networking is the key to success in property in the end. which leads me to a coupld of questions if you don't mind (?)

1. When you talk about choosing the right 'REvaluations', are you paying for for private valuations each time and pass them onto the banks / broker or are you arranging cheap revals from different banks and the one with the good valuation is the bank you go with. I'm trying to work out how you are doing this, what this involves, it is obviously very important in your strategy.

2. can you PM me your Property Manager for the logan etc you recommended pls.

3. When you talk about 'Mapping out' a plan with your broker, i am curious as to what this entails? Is this giving them a cost scenario of say your next 5 property purchases and expectiatons and seeing if you can keep getting loans based on re-vals?

4. maybe easier to PM or Text chat?


Thanks in advance,
I will also send you a short PM with my contact details for future networking if your intersted.

Hi Andrew,

I agree, a strong network is key to success.

On your questions

1. Revaluations - the valuations are through the banks. Different banks use different valuation companies, so it allows you to shop around. From experience this is more effective than trying to dispute valuations. Your broker can help with this process.

2. PM - sure will do

3. Mapping - I mean the following:

i) Putting in place an end goal to work towards
ii) Working out when and which banks to use along the way, your borrowing capacity
iii) Calculating the yield & purchase price to make the modelling work
iv) Figuring out the equity/savings required to reach those goals

I will drop you a PM.

Thanks,
Michael
 
Hashing out your first point a bit deeper: optimising the type of valuations used can have a large effect.

There are a few different types of valuations used for residential properties - a computer modelled estimate, a kerbside (driveby) valuation and a full valuation (walk through).

In some locations right now (Sydney) - its not unusual to see very strong desktop valuations, with more conservative full valuations. In other markets, it may work the reverse.

Typically desktop valuations can be used for 80% LVRs.

In terms of valuer shopping, ordering multiple valuations and different types of useable valuations is a very handy way to access as much equity as possible.

Cheers,
Redom
 
Michael,

You mentioned at meet up that today is your last day As PAYG job.

Must be exciting to quite day time job!


Wish you all the best for challenging but exciting future endeavors!

Best of luck!
 
Michael,

You mentioned at meet up that today is your last day As PAYG job.

Must be exciting to quite day time job!


Wish you all the best for challenging but exciting future endeavors!

Best of luck!

Thanks MFlying. Almost there - can see the light shining brightly at the end of the tunnel, will update once I reach that goal.

Hoping one day can replicate your success in property developing :)

Cheers,
Michael
 
Hi Michael,

Thank you so much for sharing your success story and the strategies behind it. I remember when we first met you were already doing really well in your job and it's obvious that you were able to apply your dedication and persistence to property investing as well.

Since reading your story, it's reinspired me to invest in property again and I've been going back over most of the posts to put the pieces together. I'm keen to follow your strategy to buy in the Logan area of Brisbane.

I would like to ask if you could share some specific numbers around one example property you purchased in the Logan area and how you got it to be either neutral or positively geared? If it's easier for you, could you upload an example spreadsheet or tool you use to calculate this?

In addition, what were some of the challenges you faced along the way when purchasing and financing these deals?

Thank you so much for sharing and appreciate your time.

We should catch up some time as well.
 
Hey mate,
How much capital did it take for you to get from IP #2 to #11 and what kind of income were you on (if you don't mind me asking).
How did you fund your renovations? Did you get construction loans or your own money?
 
Hi Michael,

Thank you so much for sharing your success story and the strategies behind it. I remember when we first met you were already doing really well in your job and it's obvious that you were able to apply your dedication and persistence to property investing as well.

Since reading your story, it's reinspired me to invest in property again and I've been going back over most of the posts to put the pieces together. I'm keen to follow your strategy to buy in the Logan area of Brisbane.

I would like to ask if you could share some specific numbers around one example property you purchased in the Logan area and how you got it to be either neutral or positively geared? If it's easier for you, could you upload an example spreadsheet or tool you use to calculate this?

In addition, what were some of the challenges you faced along the way when purchasing and financing these deals?

Thank you so much for sharing and appreciate your time.

We should catch up some time as well.

Hi Tyrone!

Good to see you found Somersoft :)

I can share the cashflow on my first Brisbane purchase. This was a generic high set with shower and utility room downstairs.

Suburb - Slacks Creek
Purchase Price - $280,000 (May 2014)

Income
Rent - $19,240 ($370 per week)

Expenses
Council & Water - $3,200
Insurance - $1,300
Property Management - $1,500
Repayments - $11,320 (88% lend)

Net - $1920

Depreciation will be ~$1,500 for this year.

In terms of challenges, particularly buying in Logan I would say

- If you can spend time on the ground. For every purchase I flew up there. I pulled out of plenty of deals after inspecting in person. The pictures can be very deceiving. If you can't do this, then use a BA or leverage contacts to do this for you

- Make sure you research the area. Logan is a big council with good and bad pockets. Start with Somersoft. I remember in the early days, trawling through posts with a map next to me and digging for any posts with the key 'Logan'

- Look for value. There is ALOT of competition in the sub $300,000 bracket and sometimes going higher will actually give you more value. Over the weekend, I saw a dual living property on 1,000 sqm go for $340,000 in Marsden. This is a great example of going a touch higher and getting a better buy.

- In the current lending environment. Have your finances sorted. The lending environment is changing every day so make sure you have a good broker to guide you through this

Definitely catchup for coffee :)

Cheers,
Michael
 
Hey mate,
How much capital did it take for you to get from IP #2 to #11 and what kind of income were you on (if you don't mind me asking).
How did you fund your renovations? Did you get construction loans or your own money?

Hi ej89,

Capital wise approximately 12% of purchase costs, most of the loans were at this LVR apart from the renovations at 20%

When I first started, I was on $70,000 and finished at $85,000. In saying that, I am still paying HECs so the actual lend is somewhat less than this.

Renovations were funded from equity/cash.

Cheers,
Michael
 
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