Born To Be Financially Free | Sydney - August 2014 (c) - PDF document

Born To Be Financially Free | Sydney - August 2014 (c) PropertyInvesting.com Pty Ltd 1

Born To Be Financially Free | Sydney - August 2014 Mr. Earl Nightingale From: The Strangest Secret Buddy Up (c) PropertyInvesting.com Pty Ltd 2

Born To Be Financially Free | Sydney - August 2014 Now Keep Keys Open… To Start With… “Is now a good time to be investing?” Some Reality… So It’s Your Job… • You can’t invest yesterday 1. To make the best decision you can • You can’t invest tomorrow , today 2. With the information you have at your disposal • You can only ever make the best decision, here and now 3. That’s congruent with your goals But… Always Check… • In the absence of • Expertise knowing what to do: • Experience – People do nothing; or • Motives – They rely on others • Responsibility (c) PropertyInvesting.com Pty Ltd 3

Born To Be Financially Free | Sydney - August 2014 Session One About You Questions How old are you now (in years)? (c) PropertyInvesting.com Pty Ltd 4

Born To Be Financially Free | Sydney - August 2014 Questions Questions By what age (in years) How many years do you want to have do you have left to achieved your achieve your goal? primary wealth goal? Questions Questions How many hours How many hours per week do you per week do you presently work? presently sleep? Questions Questions How many hours How many hours per week do you per week are left? presently rest? (c) PropertyInvesting.com Pty Ltd 5

Born To Be Financially Free | Sydney - August 2014 Questions Questions Of those remaining How much do you hours, how many would earn per annum? $ you say are currently (pre tax) ‘idle time’? Questions Questions How much do you Using one word, how think you would need to would you describe $ earn per annum (pre-tax) your financial situation? to be financially free? Questions Questions Using one word, how Who has had the would you feel being biggest influence on financially independent the way you think of your need to work or act about money? for money? (c) PropertyInvesting.com Pty Ltd 6

Born To Be Financially Free | Sydney - August 2014 Questions Questions In one word, describe In ten words or less, his / her / their describe your primary financial situation? wealth goal? Questions Session Two In one word, why are Steve’s Top Seven you here today? ‘Mission Critical’ Investing Truths This Session • Mission critical Truth #1 investing lesson As long as people live • Incredible wisdom in houses you can make for maximum success money from property investing • Apply the theory to you! (c) PropertyInvesting.com Pty Ltd 7

Born To Be Financially Free | Sydney - August 2014 Aussie Property • Fundamentals remain strong – Population growth – Proximity to Asia – Stable democratic government Truth #2 The Pathway To Maximum Profit Pathway To Maximum Profit 1. Make the most money (c) PropertyInvesting.com Pty Ltd 8

Born To Be Financially Free | Sydney - August 2014 Profit Quadrants G I M G Source: The National Housing Supply Council data Pathway To Maximum Profit Pathway To Maximum Profit 1. Make the most money 1. Make the most money 2. In the quickest time 2. In the quickest time 3. For the least risk Insights Least Risk • Real estate is By what margin usually sold on the does the upside benefit best case scenario • It’s your job to outweigh the downside risk ? find the flaws (c) PropertyInvesting.com Pty Ltd 9

Born To Be Financially Free | Sydney - August 2014 Aggravation Pathway To Maximum Profit Types Of Aggravation 1. Make the most money 1. Investment aggravation 2. In the quickest time 3. For the least risk 4. With the lowest aggravation This Happened To Me… Aggravation Types Of Aggravation 2. Personal aggravation (c) PropertyInvesting.com Pty Ltd 10

Born To Be Financially Free | Sydney - August 2014 Options Remember The Mantra Cash Potential MOST • ______ money Needed Profit QUICKEST • __________ time Build 2 x townhouses $249,386 $17,686 • _______ risk LEAST Build 3 x townhouses $260,826 $109,103 LOWEST • _________ aggravation 2 Lot Subdivision $142,906 $119,058 Truth #3 INPUT = OUTPUT Four Constraints Application 1. Time How are your constraints limiting 2. Money your wealth potential? 3. Skill 4. Risk Profile (c) PropertyInvesting.com Pty Ltd 11

Born To Be Financially Free | Sydney - August 2014 Insights How are you trying to reap a full time outcome but only contributing a part time effort ? Insights If there is no manufactured Truth #4 profit to be made, the only Buy Problems way you can make money is & Sell Solutions via generic market gains. (c) PropertyInvesting.com Pty Ltd 12

Born To Be Financially Free | Sydney - August 2014 Potential Skill Based Profit Solution Problem Level Of Investor Skill Problem / Solution Matrix Problems Solutions 1. People A. Cost 2. Property B. Comfort C. Convenience Insights Property Trends • Trends are like streams: And to supersize profits… they carry you one way or another Massive profits can be made • Float along in the good times when you position yourself in • Paddle hard in the bad times, just to front of a favourable trend maintain position or even stay in the boat! (c) PropertyInvesting.com Pty Ltd 13

Born To Be Financially Free | Sydney - August 2014 Rams Plaza, Ft Myers, FL USA Rams Plaza: Key Details 5 shops + 3 warehouses Details + separate building + land Date Acquired 9 September 2013 Land (sq ft) Building (sq ft) Size 108,473 28,794 $667,500 Purchase Price ($23.18 psf) Problems At Purchase • Bank REO • 31% occupied • Some minor deferred maintenance • Questionable area (c) PropertyInvesting.com Pty Ltd 14

Born To Be Financially Free | Sydney - August 2014 The Solution 108,473 sq ft • Better management – Now fully occupied • Cured deferred maintenance – Cost $69,500 • Area improvement 52,581 sq ft The Profit Rams $ Post Reno Price 9/13 $737,000 Revaluation 5/14 $1,150,000 Equity Gain $413,000 Months Owned 8 % Increase 56% (c) PropertyInvesting.com Pty Ltd 15

Born To Be Financially Free | Sydney - August 2014 Investing Approaches 1. Asset approach Truth #5 – Buy ‘good assets’ Let The Why & When – The outcome you achieve is Determine The What & How dependent on the assets’ performance Investing Approaches Insights 2. Outcome approach Properties aren’t all the – The outcome you desire same… some are better for shapes the assets you acquire growth , some are better for income , some are just bad . Picking A Winner… What’s your approach? (c) PropertyInvesting.com Pty Ltd 16

Born To Be Financially Free | Sydney - August 2014 Why Business is 1. What non-financial outcome(s) most intelligent do you want from your investing? when it is most – Provides the context for your investing – Gives you the motivation to keep going businesslike. – Gives the money meaning Benjamin Graham, The Intelligent Investor Why When 1. What non-financial outcome(s) 2. When do you want do you want from your investing? to have achieved that annual income goal? 2. How much is that going to cost? Annual Income Goal: $ Deadline: What How • What property investing • What property investing product is most relevant? strategy is most relevant? – Most money – Time – Type – Area knowledge – Quickest time – Passivity – Location / Condition – Savings for deposits – Least risk – Skill – Cost – Borrowing ability – Lowest aggravation – Risk tolerance (c) PropertyInvesting.com Pty Ltd 17

Born To Be Financially Free | Sydney - August 2014 Now repeat the process… For the property you are thinking about buying Investing Niche • A field of expertise Truth #6 • A problem you can solve better or There Are Riches more cost effectively than anyone else In The Niches • In a location or manner where the trend is your friend Niche Examples Niche Examples • Positive cash flow • Buy & Hold – Regional property – Student accommodation – Sub-letting – Rooming houses – Vendor finance – Period homes – Lease options (c) PropertyInvesting.com Pty Ltd 18

Born To Be Financially Free | Sydney - August 2014 Niche Examples Niche Examples • Quick Cash • Other possibilities – Strata titling multiplexes – Commercial property – Renovating 1950’s dual living homes – Overseas Investing – Property options / flipping property – Air rights – Mixed use Four Steps To Success 1. Find a problem Truth #7 2. Create a solution Property Is A 3. Make it scalable Money Game 4. Evolve / customise (c) PropertyInvesting.com Pty Ltd 19

Born To Be Financially Free | Sydney - August 2014 To Get Finance Money Game Rules 1. How much down ? Conclusion 2. How much back ? A Summary 3. How much time ? Until Now 4. How much risk ? The Path Most Travel Insight • Buy pretty property (solutions) How much control • Rely on opinion rather do you have over than skill and strategy your investment outcome? • Generic growth: buy, hold, hope, hatch (c) PropertyInvesting.com Pty Ltd 20