Nathan Birch in today's Sydney Daily Telegraph

[TingTong]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

Well done and congrats on your achievements.
You should keep a copy of the OP article in your car and show it to any cops who pull you over in future so they know you're good for it.

To mitigate the risk though keep your face and head as they are. Someone I know has been pulled up three times in Melbourne's northern suburbs on his way to work (high position in a very large company 20 km to the north of the CBD) as he has a shaved head, a goatee and drives a black CLS 63 AMG.

Agree. Tim Sharky has had his fair share of being pulled over because of his appearance (amongst other things).

 

[geoffw]

Nathan- you know more about what is, and has been, happening on the ground around Sydney's west.

How would young Nathan wannabe, just about to turn 18 in the western suburbs, be able to do what you have done? Is the market substantially different now, meaning that he would have to use different methods? Or woul he be able to do the same thing in the same way?

This young Nathan wannabe still has to work for a living, and would perhaps not have the resources (yet) to start looking in other places- at least personally. He does have the net- but perhaps he may be limited in being able to do remote renos.

 

[DaveM]

How would young Nathan wannabe, just about to turn 18 in the western suburbs, be able to do what you have done? Is the market substantially different now, meaning that he would have to use different methods? Or woul he be able to do the same thing in the same way?

The main difference I see from a few years ago is that the entry vs exit price on the properties has greatly diminished. It is hard to make a buck on properties where the buy in price has gone up to 220-240k for an original 3br fibro place and an end post reno value in the 260's.

A huge advantage Nathan had was the fact that nobody would really touch the trashed ex DOH places 5-6 years ago so it was bargains galore.... now everyone fancies themselves the next contestant on The Block and there is strong competition for these style properties.

There are still bargains - some quick searches shows a place in Willmot owned by someone named Birch, bought early 2012 for low 100's, renovated, and sold late 2012 in the 260's. The secret still seems to be how to buy so far under value.... a secret that may go to the grave?

 

[skater]

The main difference I see from a few years ago is that the entry vs exit price on the properties has greatly diminished. It is hard to make a buck on properties where the buy in price has gone up to 220-240k for an original 3br fibro place and an end post reno value in the 260's.

I believe that like everything else, this too, goes in cycles. I remember clearly going to auction after auction in around 2003 and seeing badly trashed/fire damaged homes selling for $240-$260k, which was the average price for something tired with no damage at the time. The auctioneer would then take the underbidders for a tour of homes in the area and make many more sales the same day by many of the wannabe renovators who didn't know the values in the area.

 

[BearTrap]

Thanks for all the kind words everyone.

As for doing it again, look outside in other areas where the markets are smashed. I now days purchase a lot in QLD due to there being a depressed market and I regularly buy like 30-40% under market

Comgratulations Mr Birch.. your success is a inspiration to many ! Your story is now made famous far & wide and I hope this shall encourage other to follow in your path.. you are getting your own discussion threads here on macrobusiness and here on aus property forum How Nathan Birch built his Australian Property Empire - 72 properties at the age of 27.. my question is how you can manage this many properties ? even with good prop mgr & accountant this must be paperwork "nightmare" to manage 72 properties ? Thks for your advise !

 

[skater]

Comgratulations Mr Birch.. your success is a inspiration to many ! Your story is now made famous far & wide and I hope this shall encourage other to follow in your path.. you are getting your own discussion threads here on macrobusiness and here on aus property forum How Nathan Birch built his Australian Property Empire - 72 properties at the age of 27.. my question is how you can manage this many properties ? even with good prop mgr & accountant this must be paperwork "nightmare" to manage 72 properties ? Thks for your advise !

LOL! Too easy! Add a bookkeeper!

 

[geoffw]

Like Skater said.

That sort of growth could not have taken place without building teams. Nathan has mentioned the real estate agents. He's talked about his property managers in the past. To get where he's for he possibly also has good legal people, accountant, tradies (for the renos), bookkeepers, office staff etc. Find good people, and hire them to do the jobs they can do better than you. Leverage.

I've heard it said. If you are the best person on your team, there's something wrong with your team.

 

[Jacque]

Well done Nathan. Your energy is particularly inspiring to young people.

 

[Piston Broke]

Wherever there is a market there are opportunities.

I also remember that ABC TV show, specially that surfy guy who lived with 6 or 7 mates, why wouldn't he buy a house and charge them rent instead of making excuses.
Seemed obvious to me, but only he who looks sees.

 

[Tim Ferris]

I got pulled over in 2770 recently in my gtr by cops because they thought i had stolen the car and had to wait while they ran checks oni t for 15 mins.

HAHAHA - that's hilarious!

 

[NickZed]

well done Nathan, stella result. You must be very proud.

I remember watching one of Nathans videos on youtube a few years ago where he was driving somewhere like Morree to do a reno on a house that he'd bought over the course of a week or so! talk about Committment!

This workload, combined with the lower value of the properties and therefore, perhaps slightly more dubious socio economic areas of NSW are probably enough to scare most of us off. It just shows you though....you need to think outside the square.

Great stuff Nathan.

Regards
Nick

 

[Josh_G]

There are still bargains - some quick searches shows a place in Willmot owned by someone named Birch, bought early 2012 for low 100's, renovated, and sold late 2012 in the 260's. The secret still seems to be how to buy so far under value.... a secret that may go to the grave?

Surely clean contracts with no hair plays a massive part along with maintaining GREAT relationships with 1, maybe 2 agents per area.

Low ball offer
Zero conditions
Settlement in 30 days or less

Pretty appealing for an owner looking to get out of a property that will never pass a legit pest and building and in some case’s not meet lending criteria for Joe Public.

There isn’t exactly a lot of commission involved for an agent selling properties in these price ranges either. The less work the agent has to do for the nominal amount he or she earns the better in their eyes.

Loyalty probably plays a huge part; working with 1 agent in that area on all deals basically means they no they will always get feed too.

 

[Buzz]

Great to see hard work commitment and courage get rewarded.

Well done, the article could go a step further and recognise your ongoing commitment to helping others and sharing your own knowledge as you do on SS and with your clients and community.

Jane

 

[redwing]

See below

It's a strategy that's allowed him to grow a $10 million property portfolio. His 72 properties bring in $700,000 in rent each year, and after making mortgage repayments and paying his expenses, he's left with $200,000 in the bank.

source

Great work Nathan

Re Western Sydney there were a lot of other investors playing in that end of the pool (remember the story about 'vulture investors'?)

Investors I'd heard of competing with Nathan were;

Paul Giezekamp ~ Property Secrets
Victor Kumar ~ Right Property Group
Dave Dorian ~ Discount Property Group, FMCC & The Next Property Millionaire

I'm sure there where others also..

 

[JessP]

Through my (VERY limited) experience so far in western sydney, I have noticed that it seems to be saturated with investors (big players and small) and R/E agents seem sick of it. Feels like there must be many, many "tyre kickers" for want of a better term. People going to opens with their checklists educating themselves. I got a much better reception from agents when I told them I was new to Sydney and just looking at buying (truth) than when I said I'm an invester looking for deals (also truth).

I am left wondering - if there are so many gun investers in the west then all of the houses/deals that are still listed are probably not awesome?

 

[datto]

Probably not cheap enough

 

[TMNT]

mt Druittt 2004 for $248,000 - at $170,000
Orange $55,000 - almost $100,000 below

Ok, so ive heard nathans story a few times now, well done to him,

other then unconditional, 30 day quick settlements,

does any body know exactly how this occurs realistically?

unless renos are involved, if something is worth $250k and advertisied for say $250k, unless the property has major issues or is really undesirable area or damage or termites or incomplete etc. etc.

im sure people are going to be offereing $210, 220, 230, 240

unless their circumstances changed overnight and they woke up saying "oops, this is not good, we have to take any figure right now",I dont get how this is possible unless its a once in a lifetime situation, and in this sitaution, wouldnt the agent simply call up the $210, 220, 230, 240 offers and say, vendors will take this figure, first come first served?


the orange example, market value $150k which he got for $55k, as i said, unless there is damage to it, I cant see it happening in my eyes, in todays market there seems to be a few props about $160k for a 3bdr home with no OO caveat, im sure these vendors would have had $100k,. $110, $120k, $130k , $140k offers thrown at them, and have obviously rejected, so $55k, please enlighten me on how this is possible

obviously, im happy to admit that his negotiating skills, buying power, reputation will be far superior to 99% of the rest of the population,

 

[JessP]

Intersted to know this as well.

I do think the properties Nathan buys are ones that no one else would touch? So lots of damage etc.

Also maybe grabbing properties before they come on the market? Ie: cold calling potential vendors and offering cash or knowing agents (so getting a call before being listed) etc?

It all comes down to negotiations and understanding why the vendor is selling - trying to come up with a win/win type thing. How you do that when the majority of vendors just want the money they have asked for is beyond me though

 

[beachgurl]

I think Nathan's buy in Orange (I think he has multiple properties in Orange) but the one that cheap was a burnt out ex HC that he renovated. Was risky both for the fact it was so badly damaged and also in one of the worst streets in Orange, so big kudos to him that it turned out to be a good CF+ property for him.

I bought a few places in Orange around the same time, both were ex-HC but weren't damaged too much, apart from needed a new toilet and repairing almost every internal wall in the house. I bought mine for 101K and 110K in the other HC part of town that I was comfortable walking down the street.

I expect he would now be the first port of call for any agent looking to quickly offload a property for whatever reason. Knowing that Nathan does a good job of fixing up houses with a bad history he would be doing those agents a favour in cleaning them up in a hurry to put on the rental market.

 

[moyjos]

Well done Nathan.. Congrats.. You have graduated to the realm of "oh it couldn't happen now a days.. He was so lucky "

Strange how you have to work so hard to be that lucky bring on the Lamborghini