Here’s how this phase of Michael’s life journey started.
After 28 years of investing in property, Michael went to one of Dymphna Boholt’s events, expecting to see a ‘con woman’ on stage.
Yet, after just 15 minutes he was ‘sold’ on her property expertise and her heart-felt values – and knew he had to learn from her.
He didn’t take action right away – as he says: ‘I sat on my comfy couch for 3 years before deciding to dive in’ and take action on Dymphna’s ideas.
Since that time, Michael has focused on buying cheap properties with motivated vendors. Renovating them and then renting them out. This strategy gives him equity due to the valuation uplift from the renovation and also great cash flow, as he gets an increase in rental income from the improved property.
This cash flow is important because it helps him to be able to continue to get bank financing for more properties.
But there has been another side benefit for Michael – being part of a supportive community. “Living in a regional area, I find that property investing can be quite a lonely journey and being able to be in contact with others has been invaluable,” said Michael.
Prior to meeting Dymphna, Michael knew the basics and had had some property investing success by himself.
“I knew not to get emotional and look at the numbers and then be creative to find a way to make the deal work. But I did have a fear of making mistakes and probably listened too much to friends and family who aren’t educated in property,” said Michael.
He had investments, but he also had debt and had sold properties over the preceding ten years when money got tight.
To make things more challenging, he had occasionally got behind in repayments to the extent he had some black marks on his credit report making it very difficult to refinance.
However, the support of the ILRE education has been invaluable in helping him to still play the ‘investor game’ even with this challenge.
“ILRE has given me the confidence to know that with the right team behind me and the knowledge I’ve learned that I never have to worry about my future.”
“I have been living and travelling in a motor home. It’s great and gives me the time to travel around this beautiful country between property projects,” explained Michael.
This has meant he has been given the name the ‘Homeless Property Investor!’
Here’s an example of one of his property ‘Reno and Rent-out’ deals that he’s done since joining the I Love Real Estate community.
This was a flood damaged house, but luckily the major flood damage was already repaired. Michael did a cosmetic reno, and gave the place a new kitchen and ensuite.
• Purchased Nov 2014 $100,000
• Stamp Duty $ 2,300
• Legals $ 1,500
• Renovations $ 40,000
• TOTAL $143,800
• Revalued $230,000
• Rents for $285pw
• Equity uplift – Approx. $87,000
This was a great little deal – with a super low cost base. Proving once and for all, that small fish can be sweet!
“One of the biggest lessons Dymphna taught me was to concentrate on a niche market and perfect a system. I have learnt not to listen to negative people and well-meaning naysayers.”
So, following that advice Michael has done other ‘Reno and Rent’ deals – but he’s also done some cracker positive cash flow deals.
For example, here’s a property Michael bought at a mortgagee sale, when it was passed in at auction. Michael used a combination of ‘bluff’ and ‘delaying tactics’ to beat the other offers.
• Purchased Sep 2013 $154,000
• Stamp Duty $ 4,000
• Legals $ 5,000
• TOTAL $163,000
• Revalued: $200,000
• Initial Rents $425.00 pw – Now $575pw
• Positive Cash flow approx. $10,000 pa
This deal now gives him a tidy positive cash flow of approximately $10,000 per year – or around $200 per week. Not bad for a $154,000 investment!
The best part? Michael can also explore the possibility of Strata Titling the units to increase value, for refinancing purposes.
One of Michael’s big learnings, is ‘not to get emotional about a property, work out all the figures and remember it’s a business,” said Michael.
“Property is not a get rich quick scheme, but if you work hard and simply copy and paste what others have done – especially those here in the ILRE community, you will be successful.”
“Motivation is very important and speaking for myself, being in a regional area it’s good to have contact with people all over the country that can help you with any difficulties that may arise.”
So what’s the bottom line of all Michael’s projects? He’s gone from owning properties valued at about $735,000 with an equity value of $450,000 to a portfolio valued at about $1 million – with an equity position of around $801,000!
This is a significant leap in net equity – which leaves Michael feeling financially confident about the future.
Especially since he’s adding to his wealth position consistently with more deals – he’s in control.
So, if you’re around Australia and you see the ‘Homeless Property Investor’ on the road make sure you say g’day!
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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 knew not to get emotional and look at the numbers, and then be creative to find a way to make the deal work.”
Before Dymphna
Properties: 3
Debt: $735,000
Equity: $450,000
Plus approximately $50,000 in credit card debts
After Dymphna
Properties: 6
Debt: $801,000
Equity: $1,005,000