Multiple Property Strategy: 18 in 18 Months
Less than two years ago, Anthony and Jenny Storey say they were living on Struggle Street with a home, a mortgage and kids. Now they are star real estate raiders — a couple on average incomes who have bought an incredible 18 homes in 18 months, worth more than $2 million.
"I didn't ever imagine we could do something like this. Even in my wildest dreams it wasn't there," says Jenny.
Here are their 10 Keys to Property Success
2. ADDING VALUEAdd value to you property to create more equity. There are many ways to add value. One of the easiest ways to add value is with renovations. See the Reno Kings "33 ways to add value" report. With investment properties spend less than 10% of the value on cosmetic renovations.
4. NICHE MARKET & RESEARCHFind your niche location and Research. You make your money when you buy. In other words, you need to buy the right property at the right price. The internet has many useful tools. Start with the Reno King’s "61 links for Property Investors". Make sure you do your due diligence before you go unconditional on your contract.
7. EMOTIONLeave your emotions at home. Buy on figures. If the numbers ‘stack up’ do the deal. If they don’t, just walk away. Fall in love with the ‘deal', don’t fall in love with the house. There is always another property that will make you money. If you ‘buy well’ and ‘add value’ the added equity and cash flow should be enough to support the next deal. If not, let it go.
8. OFFERSMake offers. Back them up with reasons. Always remember the ‘asking price’ is just that ‘asking’ not necessarily the actual price. It’s not like buying a piece of steak where the retail price is the actual price. The price normally has a ‘loading’ for negotiation, so negotiate. If you see faults and problems with the property let the agent know and ask for a reduction. Think about this, if you could save $1 out of every $10 you earnt, it would mean every $1000 saved by negotiation is worth at least $10000 in earnings to you.
9. ETHICAL INVESTING
Eg. Reno King Geoff Doidge was trying to buy a house with quick 21 days settlement for tax purposes. The owner would not accept this.
"Why?" Geoff asked the agent, "Is it the price?"
The owner accepted immediately. Where was the win-win? Geoff realised that the market was moving at least 25% capital growth per year. So the property could be secured in a rising market with just 3% deposit. In 8 months time Geoff could have it re-valued and the bank would finance the whole of the asking price. The owner was very happy; she stayed in her existing house, no rent to pay and just one move to the new house whenever it was ready. Perfect WIN-WIN.
10. PERSISTENCEPersistence. There is always another opportunity around the corner. This is a great characteristic to have. You see some people fall at the first hurdle and stay down. They may get a couple of rejections. An agent may laugh at them. A bank might refuse them finance. Never ever give up. ‘It’s not how many times you get knocked down, it’s how many times you get up’. Every failure brings you closer to your goal. Behind every problem is an opportunity. Life indeed is a journey and setbacks are only ‘ruts in the road’ to your destiny.
11. Get EducatedIf you want to get educated - check out the upcoming Property Women Workshop - more info here