Sergio and Charity

Creating a $250,000pa Passive Income Stream in Just Twelve Months – This is how you put equity to good use.

Sergio and Charity had worked hard to put themselves in a solid financial position. They wanted to escape the rat race, but they didn’t want to risk all that they had achieved. They are big believers in “writing your own story”, but when they found the right strategy through ILRE, they were shocked at how quickly it all came together.

“We just didn’t know what we were doing. We had a lot of debt on the house; our investment property was positively geared, but only just… We really needed a plan.”

Sergio and Charity are driven and disciplined people. They had achieved a solid financial position through years of hard work, owning their own home and a single investment property in the Eastern Suburbs of Sydney. However, they wanted more. They wanted financial freedom. They wanted more time to spend with the family and do the things they love. They wanted out of the rat race.

They tried their hands at a number of different ventures – various trading systems and enterprises – but none of their efforts made significant results. During their search they came across Dymphna Boholt, and what she offered immediately resonated. Other than the systems and the results her students were getting, they found Dymphna’s own mission of personal empowerment and being among like-minded people they met through her programs really help their self-development.

They decided to join the ILRE community, opting for the close one-on-one mentoring available through the Platinum program. They took the time to explore the suite of strategies available under the Dymphna Boholt umbrella until they found the one that best suits them. Since their goal was to replace their income as quickly as possible, they focused their efforts on multiple-tenancy commercial investment properties.

In just twelve months they have completed four deals, focussed around regional Queensland, creating a stunning $256,000p.a worth of passive income – enough to replace both of their incomes.
Needless to say, they are extremely happy with the results. These are the deals that made it happen.

Deal 1: Stacks of potential

Sergio and Charity found their first deal through the ILRE forum. Another student had found a great deal, but just wasn’t in a position to make it happen. Since the deal was in Queensland, Sergio figured he would jump on it and sign the contract first, and do his research and due diligence later. That research showed that it was just the kind of deal he was after. It was a commercial property with multiple tenancies, with a strong anchor tenant – a national company with $20million revenue in Queensland. He also calculated that it would cost that tenant around $100,000 to move, so they would most likely stay.

The deal cost them $900,000, but was positively geared to the tune of $65,000 a year. Not only that, it could potentially be strata titled for further uplift.

Deal 2. An ugly duckling in a flood zone

On the back of this first deal, Sergio and Charity went looking for something similar. They found it in a property in Gympie through a buyers agent, which was having trouble selling because it was in a flood zone. However, when Sergio did his research, he realised that it was in a slow-release flood site, and so when the rare floods occurred, all the businesses managed to get out of the way in time, and the disruption was minimal. In addition, the businesses themselves paid for the insurance so it was no skin off their nose.

“There’d only been three floods in twenty years, and you always get 24 hours notice.”

The price was negotiated down to $708,000, and it is positively geared to the tune of $41,000 a year, returning 10.5% net yield.

Deal 3. Take it up a notch

With a winning formula now, Sergio and Charity wanted to take it up a level. They found it in an industrial property in Emerald that cost them $1.4million, but is putting a massive $148,000 a year in their pocket!

Deal 4. One for dad

With friends and family noticing the fantastic results they were getting, Sergio and Charity decided to get Sergio’s dad into a similar deal – a three-lot industrial property in Bundaberg costing $635,000, and generating $48,000 in passive income.

A year to remember

With the close support of their mentors in the Platinum Program, Sergio and Charity were able to set a cracking pace, hammering out four deals in under twelve months. Not only that, they have put their hard-earned equity to fantastic use, generating a passive income stream worth over $250,000 a year. Now, finally, they feel like they are sorted.

“With the knowledge gained, one of the biggest benefits is you can help your loved ones achieve their goals too.”

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.

“We had some aggressive goals,
but we’d worked hard for our equity and we wanted to put it to good use.”

PRE-DYMPHNA POSITION

Coogee (PPR)
Value: $1,100,000
Equity: $550,000
Cashflow: $0

Kingsford (Inv)
Value: $825,000
Equity: $543,000
Cashflow: $10,000

Total Value: $1,925,000
Total Equity: $1,093,000
Total Cashflow: 
+$10,000

 

POST-DYMPHNA RESULTS

Coogee (PPR)
Value: $1,200,000  
Equity: $800,000
Uplift: $250,000
Cashflow: $0

Deal #1
Value: $900,000  
Equity: $344,250
Uplift: $45,000
Cashflow: $65,900

Deal #2
Value: $750,000
Equity: $290,000
Uplift: $40,000
Cashflow: $41,700

Deal #3
Value: $1,400,000
Equity: $490,000 
Uplift: $0
Cashflow: $148,000

Total Value: $4,250,000  
Total Equity:
$1,574,250
Total Uplift:
$335,000
Total Cashflow: 
+$255,600