Gary & Camilla

How two young property investors made their dream home a reality.

Gary and Camilla, a young hard-working couple, knew exactly the kind of home they wanted to raise their family in. But how could they afford it? This is how Dymphna Boholt showed them how deal-focused investors could make that dream a reality – at a fraction of the cost – and set themselves up for a lucrative career in property in the process.

Spending too much on a family home is a classic rookie mistake and one that too many young people make. It chains you to unproductive debt, builds equity incredibly slowly, and hamstrings your efforts to create wealth and lifestyle.

Thankfully, Gary and Camilla joined ILRE before they could make that mistake, and learnt from Dymphna Boholt that every property you buy should be a ‘deal’ – it should help you build wealth and take you closer to where you want to go, even if you’re talking about the family home.

“I wasn’t just skeptical of ILRE… I was dead against it. But I’ve seen the results now.” – Camilla

Looking at the problem again through this ‘deal-maker mindset’, Gary and Camilla could see that they needed to get creative, and that they’d have to roll up their sleeves and get to work.

This young couple, who had been together since Camilla was 16 and Gary was 18, had initially joined ILRE because their first investment property had been a failure, and they just wanted to “do property investing right.”

However, they quickly realised that there were tools and strategies on offer that could help them make their dream home a reality. This is how they methodically worked themselves into the house of their dreams, all while ensuring their financial futures.

“Being at the auction was petrifying. This was a big first step for us.”

Finding Land

Not all properties are created equally; some have more potential than others, thanks to size, zoning, amenity and other factors. Once Dymphna had shown Gary and Camilla the kinds of things they could be considering in their research, they spent a long time looking for exactly the right piece of land. They eventually found it for $640,000. And it was exactly what they were looking for.

With an ability to understand the market, they were also able to negotiate the price down to $570,000.

Two sheds to pay back the parents

Their plans hit a snag when their bank had issues with power lines crossing the front corner, and refused to lend to them at a 90% loan to valuation ratio. Thankfully, Camilla was able to lean on her parents for another 10%, and they got the deal over the line.

They were very keen to pay Camilla’s parents back as quickly as possible, so they built two sheds on the property and within six months were able to refinance the loan, and repay her folks the money they’d borrowed with interest.

One deal to fund another

At that stage, Gary and Camilla had enough to construct a modest home, but not the home they were dreaming of. So, they decided to find another investment deal to help raise extra finance.

They found a run-down property on the market for $500,000 and set to work renovating it, doing most of the work themselves.

They then removed a shed and started working on plans to subdivide the property and build a secondary dwelling on the first site.

While they had checked all their numbers and had their finance pre-approved, around this time the government-enforced lending regulations changed, and they weren’t able to get the finance they were initially eligible for.

That meant that they had to go to a private lender to make up the rest of the construction finance. This obviously ended up costing them more, but they had built enough margin into the deal that they were still able to turn a $265,000 profit on the sale of both properties.

“We cleared $265,000 after the sale of both properties… even after the cost of getting private finance.”

The townhouse development

While their funding options were still limited, Gary and Camilla were keen to keep moving forward, and so they put together a town-house development deal, together with Gary’s cousin and the builder from the last project.

The build took just six months, this deal created a profit of $300,000, to be shared between the JV partners.

Let’s build!

These two deals had given Gary and Camilla a considerable war-chest to work with, and using the builder from the previous two projects, they should be able to deliver a million-dollar build for around $500,000.
Even though Gary and Camilla will have built this house exactly to their tastes, making their dream a reality, those numbers mean that their family home should deliver an equity gain of over $800,000.Now that’s a nice deal.

This is the way forward

Property investing has helped Gary and Camilla achieve their dream, and they can see this is the way forward for them. They have secured two more development sites, and they expect to share in almost half a million dollars in profit once those deals are complete.
They have also set up an investment advisory service. It is just for friends and family at this stage, but they may take it public in the near future.

At the end of the day, Gary and Camilla’s story shows that all dreams are possible – so long as you have the right education and strategies in place.

Let’s hope that all young people learn from their example.

“We joined ILRE with $70,000 in equity. Now we’re up to $1.4 million… and we’re in our dream home!”

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 wasn’t just skeptical of ILRE… I was dead against it. But I’ve seen the results now.” – Camilla

Post-Dymphna Results

PPR
Value: $2,000,000
Loan: $820,000
Equity: $1,180,000

TownHouses (Our Share)
Value: $1,800,000
Loan: $940,000
Equity: $287,000

Total Equity Position: $1,467,000