As a Fly-In, Fly-Out (FIFO) worker, John faced the harsh realities of being away from his family for extended periods, missing out on precious life moments. This lifestyle, while financially rewarding, came at a great personal cost.
However, John’s encounter with adversity set the stage for a dramatic change, leading to astounding success in real estate.
“Due to my roster as a Fly-In, Fly-Out worker, it meant that I missed out on many of my family’s life events such as birthdays, Christmas and school holidays. “
In 2017, during a significant downturn in the mining industry, John faced unemployment. This crisis, however, presented a silver lining.
With the real estate market in mining towns collapsing, John and his wife, Cordelia, recognised a golden opportunity. Prices of homes had plummeted, creating the perfect buying opportunity.
Armed with the philosophy to “buy when everyone is selling,” John began his foray into real estate investment, focusing on properties in mining towns with high potential for recovery.
John and Cordelia’s real estate journey began with a strategic acquisition in Karratha, a coastal mining town, where they purchased a 5-bedroom house on a 540 sqm block for $385,000 in 2017.
This property, once valued at approximately $1.3 million during the mining boom, was acquired at a significant discount.
Initially, it rented for $620 per week, but now it brings in $1,350 per week, with its current valuation at $800,000. This initial success demonstrated the potential of investing in mining towns during economic downturns.
Following the Karratha purchase, they acquired a second property in South Hedland in 2017.
This 4-bedroom, 2-bathroom house was bought for $295,000, a fraction of its boom-time valuation of $1.2 million.
The rental income at the time of purchase was $650 per week, which has since increased to $1,350 per week, with the property now valued at $750,000.
This investment further solidified his strategy of capitalising on the market lows in mining areas.
In 2018, John and Cordelia continued their investments in South Hedland by purchasing a 4-bedroom, 2-bathroom townhouse for $200,000, well below its $1 million peak valuation.
It rented for $450 per week at the time of purchase and has seen growth to $850 per week, with the property’s current market value at $500,000.
This third acquisition underlined the consistency in their investment approach, targeting properties with significant undervalued potential.
John and Cordelia expanded their portfolio further in 2020 with the acquisition of two 3-bedroom, 2-bathroom villas, each purchased for $120,000 during a mortgagee sale.
These properties were once valued at about $650,000 each during their peak. They initially rented for $420 per week, and now each brings in $750 per week, with their values appreciating to $375,000 each.
These villas were part of a strategic move to diversify within the mining town real estate market while still leveraging the low acquisition costs.
In 2021, John and Cordelia added two more properties to their portfolio, both located in Moranbah. The properties, each featuring 4 bedrooms and 2 bathrooms, were acquired for $339,000 and $350,000 respectively.
These homes, which would have fetched around $1 million each during the boom times, were rented out for $620 and $650 per week at the time of purchase. Their values have risen to $450,000 and $460,000 respectively, with current rents of $740 and $790 per week.
These latest acquisitions illustrate John and Cordelia’s ongoing commitment to investing in mining regions, recognising their cyclical economic patterns and the potential for significant financial returns.
Throughout their real estate journey, John and Cordelia have demonstrated an adept ability to identify and capitalise on undervalued properties in volatile markets.
Their strategy of buying low in mining towns, recognising the cyclical nature of these economies, has not only yielded substantial rental returns but also positioned him for significant capital gains as these markets recover.
Their approach highlights the importance of market knowledge and timing in achieving real estate success, especially in sectors as dynamic as the mining industry.
By 2021, John and Cordelia’s real estate endeavours had created a portfolio worth nearly $6 million, with nearly $3 million in equity and an annual passive income approaching $150,000.
This financial cushion is nearing John’s goal to double his living expenses, setting him on the path to retire from FIFO work by early 2024.
John and Cordelia’s success story transcends financial gains. Inspired by John’s humble beginnings in the Philippines and Cordelia’s family origins of fleeing communism in Romania, they are driven by a profound mission to give back.
John plans to use his resources to help lift communities out of poverty, reflecting his deep commitment to making a difference beyond just accumulating wealth.
John and Cordelia’s journey to real estate magnates is not just about transforming their financial status; it’s about creating a life that aligns with their values and allows them to make a meaningful impact.
Their story is a compelling narrative of how adversity can lead to opportunity, and how strategic investment can turn life’s challenges into a legacy of success and philanthropy.
“Our strategy was to buy low-cost “A-grade” assets that will be profitable no matter what part of the mining cycle we were in.”
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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 am extremely grateful to the universe for the opportunity to do something far greater than myself.”
PRE-ILRE
PPR
Value: $360,000
Equity: –$40,000 (negative)
Cashflow: $0
All Investment Properties
Value: $655,000
Equity: –$95,000 (negative)
Cashflow: –$22,000 (negative)
SMSF
Value: $200,000
Equity: $200,000
Total
Value: $1,215,000
Equity: $65,000
Cashflow: –$22,000 (negative)
POST-ILRE
Investment Property 1
Value: $450,000
Equity: $50,000
Cashflow: –$5,000 pa (negative)
Investment Property 2
Value: $350,000
Equity: $75,000
Cashflow: –$3,000 pa (negative)
Investment Property 3
Value: $440,000
Equity: $80,000
Cashflow: –$10,000 pa (negative)
Investment Property 4
Value: $750,000
Equity: $440,000
Cashflow: +$41,500 pa
Investment Property 5
Value: $750,000
Equity: $480,000
Cashflow: +$44,000 pa
Investment Property 6
Value: $525,000
Equity: $265,000
Cashflow: +$23,500 pa
Investment Property 7
Value: $350,000
Equity: $250,000
Cashflow: +$20,000 pa
Investment Property 8
Value: $350,000
Equity: $250,000
Cashflow: +$17,500 pa
Investment Property 9
Value: $415,000
Equity: $75,000
Cashflow: +$7,700 pa
Investment Property 10
Value: $420,000
Equity: $65,000
Cashflow: +$8,800 pa
Investment Property 11
Value: $525,000
Equity: $115,000
Cashflow: +$8,200 pa
Savings/Other Assets/Super
Value: $575,000
Equity: $575,000
Cashflow: +$15,000 pa
Total Position
Value: $5,900,000
Equity: $2,720,000
Cashflow: +$178,200 pa