Reno Kings - Multiple Property Strategy: 18 in 18 Months
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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

Leverage the equity in you home to invest in income producing assets.  You may be surprised how much you can borrow to buy quality income producing assets like investment properties.  Don’t wait until the mortgage is fully paid off.

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.

Get a army of good professionals around you.  Start with a good Financier and work with them.  The finance market  has changed and if you haven’t spoken to a finance broker lately you’ll be amazed at what they can do for you.  A Quantity Surveyor, a Rental Manager, a Town Planner, a property wise Accountant and a savvy Lawyer are just some of the team you’ll need.

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.

Attitude is your key. A ‘can do’ mindset makes way for achieving the seemingly impossible, like Anthony and Jenny’s achievement of buying 18 houses in 18 months.  Get your head right.  Be prepared to spend money on your education. It will be the best investment you make.

Look after your tenants – your best asset.  If your tenant says it’s needed, in most cases jump to it, because it will keep your property in ship shape.  The tenant is the engine of your financial vehicle (your investment property). Good tenants, things go smoothly.  Bad tenants and it’s like driving with a flat tyre, a very bumpy ride.  Search hard for the best property manager.  Find this manager by referral, or the net, or by asking other investors. A good property manager means good tenants; good tenants mean good steady rent or cash flow and no nasty surprises.

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.

Always do right by others. ‘You reap what you sow’.  Aim for a win-win outcome not a win-lose.

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?"
"No! She wants to build a house and then move into it when it is finished in 8 months", said the agent.
"Fine", said Geoff, "I will pay a 3% deposit and settle in 8 months time or whenever she wants to leave."

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

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