How to Make Money in a Slow Market

Many people are currently sitting back and waiting to see what happens with the world economy, while the smart investors are seeing this as a time of opportunity and are seizing it.

This month the Reno Kings caught up with just such investors who are taking advantage of the current market and looking for properties with "a twist".  Meet Matthew Butt and his partner Kaylene King, graduates of the Reno Kings workshops and eager clients of Investigate Property.  Having come out of previous relationships this couple found themselves having to start over and have purchased properties in Canberra and recently in Brisbane.  Undeterred by the current "financial crisis" Matthew and Kaylene were happy to share their approach to investing.

The Motivation 

Their story is as common as the next person who has discovered the world of property investing.  Matthew tells us, "We had both worked in private enterprise/been self employed and we didn’t have the healthiest superannuation funds in place. We realise that you can only read so much about what others are doing before you need to jump in for yourself!"  Therefore with this simple motivation and the sensibility to take advantage of their own current skills, so began their story and their investment journey. 

"Kaylene has 7 years experience in Real Estate sales and has previously owned several new investment properties. I am a landscape designer with a healthy interest in architecture and am currently studying for my builder’s licence. I have flexibility in my workload and enjoy devouring books and magazines on real estate investing, design, and building/renovation. We therefore felt confident that property was a medium we understood.  We have decided to work hard towards building our knowledge (and confidence) by putting time and money into seminars and learning opportunities (books, CD’s & DVD’s) over the last 2 years".

Matthew also told us that the fact that they work together as a team has helped them achieve their goals. "Since meeting and starting again together we have found that our combined knowledge and talents work well. We tend to balance each other well and so we are focused on a future of financial freedom through property investing (with concentration on development).  We don't invest with anyone else, just each other".

The Purchase

Matthew and Kaylene's recent purchase of a development site occurred after attending the Reno Kings workshops where they were exposed to the Reno Kings' creed of finding a property that can make you money when you buy.  "Having attended the Property to the Max workshop in 2007 & Developing for Profit  workshop in June 2008 we were looking for a property with a Reno King twist – something we could add value to immediately. It is an exciting prospect to be able to have an investing goal, form a strategy & then get stuck in and actually achieve a result.  It is a bit of a learning curve – but we ask a lot of questions & they get easier after the first one! Meeting the experts and other like minded Reno Kings devotees at the Developing for Profit workshop instills you with the confidence to make active steps forward".

The Education

The Reno Kings' Developing for Profit Workshop focuses on educating investors on how to find a suitable property and carry out a profitable development whilst helping them avoid the pitfalls through the process. "The Developing for Profit workshop introduced us to the thinking, the numbers & the experts we needed to have on our team to allow us to become successful in developing. It showed us what was realistic & didn’t sugar coat the issues that need to be dealt with – and saved us any trial and error. Now we have got an idea of what strategy suits our strengths and our ultimate lifestyle goals".

According to Matthew and Kaylene, conducting developments is how they intend to fund their future lifestyle (both the short and long term goals). They have strengths which they can leverage & by developing they can actively add value in a time where the market is moving into a flat spot in its next cycle. "We are moving into a different phase of the property cycle – one that we haven’t invested in before. Knowledge (through education) and a good panel of advisors on your team is needed more than ever – as the market won’t rise to cover a beginners learning curve quite like it used to. Educate yourself & ask the right questions of the right people rather than following the herd mentality and the ever flippant opinions in the mass media".

The Planning

This optimistic view and concentrated planning has prepared these investors for the unknown times that lie ahead.  "We have just put some time and money towards an interstate seminar and and consultation with a finance mentor that we hold in high regard. These efforts combined have helped us adjust our strategy - to come up with a more focused plan for the next 5-7 years of this next property cycle for our own purposes. Somewhat differently to our ‘old’ mindset, we won’t just be looking to renovating then holding on and relying on the newly formed equity. We will be focusing on just 1-2 areas, adding value (in a slowing market) but also creating a cash flow position through the techniques learned. Once again having a solid group of advisors around you, with a good depth of knowledge, that you can call upon is critical". 

Matthew and Kaylene are clients of Investigate Property and through their help have found their first development property only 6.5kms from the Brisbane CBD.  With the numbers stacking up, the added bonus in this property is that there is essentially a ‘free’ block of land at the rear of the block.  Click here to view Investigate Property's case study on Matthew and Kaylene's first development.