Susan

How a fortune is made: Susan’s portfolio generates over half a million dollars cash flow every year!

It cost Susan everything she had to leave South Africa, but after the second car jacking, she knew her family’s safety had to come first. Starting over in Australia, she has built a phenomenal property portfolio, valued at almost $10 million, and paying her over half a million dollars every year … and all in the space of less than 10 years.

Susan’s son has cerebral palsy, and to be able to immigrate to Australia, she and her family had to pay for a number of lengthy and expensive medical procedures. But after the armed robbery and the second car jacking, Susan knew that they just had to do whatever it took.

Whatever it took ended up being everything that they had, and Susan arrived in Australia with no job and just $5,000 to her name. However, she and her husband quickly found work, and set about rebuilding their life.

“It’s terrifying when someone sticks a gun in your face. After the third time, I thought, That’s it, we’ve got to go.”

Susan knew that property was a fantastic road to wealth, and she had completed a number of deals in South Africa before coming over to Australia. However, she really wanted to understand how the property market in Australia worked – including how property law worked, the best tax and ownership structures, the kinds of deals that were possible, etc.

After some research, she found Dymphna Boholt, who was the expert she was looking for. Furthermore, the ILRE training contained everything she needed to know. Soaking up the education that was on offer, Susan quickly set about rebuilding her fortune.

It started with a small renovation deal, which set her up for a subdivision deal, which then set her up for two large and profitable development plays. Her personal investment portfolio is now worth $9.1 million, it generates over half a million dollars in passive income, and she’s generated almost $10 million in profit along the way. And, she’s managed to achieve all this in less than 10 years. This is how her incredible journey played out.

Deal 1: Getting a Toe Hold

Susan managed to execute her first deal with no money of her own. Leveraging off the First Home Owner’s Grant, which at the time was $7,000, she managed to borrow the rest of the purchase price off the bank. Scratching enough together for a small renovation, Susan sold the property a short while later for a profit of $20,000.

“I did my first deal without any money. It was all first homeowner grants and a mortgage.”

Deal 2: The deal that keeps giving

Doing a joint-venture with a friend she had made at an ILRE property event, Susan picked up a vacant parcel of land for $350,000, with a 12-month settlement. She then subdivided it into eight separate lots, keeping two for herself and giving one to her JV partner. She sold off the other five lots for a cash profit of $160,000.

With her two vacant pieces of land she built one dual-key property, and one duplex. Since she was able to build the dual-key property without a loan, that one is positively geared to the tune of $30,000 a year, while the duplex is positively geared to the tune of $11,000 a year.

Deal 3: Ready to dream big

Having built equity and having increased her income and serviceability – all while continually investing in her education – Susan was now ready to go after the big one.

She found that in the form of a large parcel of rural land that had recently been rezoned medium density. Purchased for $3.75 million, Susan and her JV partners are in the process of building an incredible 159 townhouses and 12 apartments.

Spread out across five stages, they have already completed the first two stages, and are already in the money, having booked over $1 million in profit. By the time the five stages have completed, they will have booked $19 million in profit, of which Susan will keep half.

Not only that, but Susan plans to keep 10 townhouses and the retail centre with 11 apartments for herself. She also maintains management rights on the property, as well as ownership of the local solar grid, both of which provide operational income.

So on top of her profit share of almost $10 million, Susan will receive over half a million dollars of income out of the property every year.

Now that’s big fish.

“We’ve built the first 27 houses, and now we’re starting to see the money come in. It’s amazing. We’ve created $19 million profit on this deal.”

Deal 4. Go big again

After another couple of deals – which were great but small fry in the scheme of Susan’s story – Susan is now in the process of negotiating a large commercial centre in Noosa. The property already has three tenants, delivering a net rental income stream of $236,000 per annum, but Susan plans to develop the property, and put in an organic market, a tech incubator and some student accommodation among other things.

Susan expects that, when completed, this property should deliver around $750,000 a year in passive income.

Rebuilding and Rebuilt

Having rebuilt her fortune many times over, Susan isn’t slowing down anytime soon. For people willing to invest in themselves and to take action, the opportunities really are endless.

“It takes a lot of sacrifice and will-power, but you also need support. I couldn’t have done this without my JV partners and the ILRE community.”

These stories and the results in them were captured at a specific point in time. The real estate market and the investing strategies used to succeed are constantly changing. The achievements and results of these investors may have changed since these stories were recorded. Each of these investors engaged in in-depth training, coaching and mentoring to be able to achieve these results. Their results are not typical and should not be taken as a guarantee of the results you may achieve. Your personal results will be in-line with the training, education and hard work that you personally conduct.

“I did my first deal without any money. It was all first homeowner grants and a mortgage.”

Post-Dymphna Results

Deal 1: Renovation
Profit: $20,000

Deal 2:Subdivision
Profit: $79,537

Deal 2: DualKey
Property Value: $650,000
Equity/Uplift: $314,000
Cashflow: $30,000

Deal 2: Duplex
Property Value: $750,000 
Equity/Uplift: 
$300,000  
Cashflow: $11,500

Deal 3: Development
Profit: $806,796
Future Profit: $9,398,125   
Property Management: $7,572   
Management Rights: $210,000   
Solar Electricity: $39,596 

Deal 3:  Townhouses (held)
Property Value: $1,020,000

Deal 4: Unit reno
Property Value: $695,000 
Equity/Uplift: 
$185,000 
Cashflow: $35,000

Deal 5: Commercial Reno
Equity/Uplift: $500,000
Cashflow: $120,000

Deal 6: Redev Commercial
Property Value: $6,000,000
Cashflow: $236,000 

TOTALS: 
Properties Value: $9,115,000
Equity/Uplift: $1,299,000
Cashflow: $432,500
Profit: $906,333
Future Profit: $9,398,125 
Property Management:  $7,572 
Management Rights: 
$210,000
Solar Electricity: $39,596