On the Road with the Reno Kings

Geoff tells how the bus came about ...

It all started after a Reno King workshop weekend. It was Monday. I was having my usual 3 hour breakfast before taking Judith our assistant to the airport. I said “how about I run you past a few of our properties before you catch your plane to NSW.”

After brekkie we drove to  property #1 ... a basic renovator. I had bought this as a 2 bedder in 2005 for $220k. It was a dump and renting for a pitiful $150 per week (3.5% yield). It’s within the 10km ring, near a café society and walk to train. After a $12k reno, it’s now a 3 bedder worth about $285k after and renting for $275 per week 6.1% yield. That’s a massive 83% rent increase.

I could see Judith listening with interest.

On to property #2 an average house in an above average area. This property is packed with twists and turns. There is a hidden tax benefit that almost no-one else had noticed, plus it was next door to a property I already own, so there was $250K of value to be unlocked using a town planner to create land. Not only that but with a cheap cosmetic renovation I increased the rents by an astonishing 70%.

Judith’s face lit up. She was definitely seeing things with new eyes.

then  property #3 a ordinary looking house from the street, but with the hidden power of 2 lots and the possibility of a townhouse in the backyard and only 2km from the CBD. Another example of a free block of land. Paul bought this for only $337K ... the government valuation for the land alone is $295K, so he only paid $41K for the 3 bedroom house.

Jude was excited and asking how the property was found, how could she find these deals.

On to  property #4 a niche market with extra high rentals where Paul and I had to make "water run up hill" so we could build a new house in the back yard. This was a big deal so we did a Joint Venture with some other like-minded investors.

Judith was now into the negotiation process, and had questions about contracts and clauses, about JV’s and developments and town planners.

We drove on past renovators, splitters, sliders, subdividers, development sites, niche markets, blocks of flats & boarding houses. There were new houses we had built, little deals and big deals, student accommodation. There were problem properties and properties loaded with potential profits.

We finally arrived at a block of 9 near new units/flats  in a very good area. I told Jude this block was 6 years old when I bought it at auction. It was fully furnished and has massive depreciation. It wiped out a 6 figure tax bill, generated $120K in rent, increased by $500K in under 12 months and is cash-positive.

By this time Jude was shaking her head in disbelief. I said “Jude we have been on the road for over 3 hours and it is time to go.”

On the way to the airport ...

I said, "What do you think?"

She answered something like ... "Geoff, this has massively changed my thinking. It has been a real world education. I’ve heard you talk about some of these properties at workshops but to see them as real bricks and mortar in their actual locations, how you found them, why and how you bought them, how you added value brings it all to life. You showed me the good deals and also ones you had walked away from, the ones you didn’t buy and why. It has been eye-opening."

The penny dropped.

If I could change one person’s attitude and perception of what is possible in property in just 3 hours, imagine if Paul & I were with them for a full day. How rewarding would that be!

On the buses was born!

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 "When I got home after Geoff showed me a number of his properties and some of Paul’s properties ... it was like a veil had been lifted. I saw opportunities that previously I missed. Geoff showed me how to recognise the right suburbs, how to recognise the right deal and how to add value for the tenants in ways I had never thought of. ", Judith Taylor, NSW