The 4 Most Popular Questions Answered
Where are you investing?
What types of properties do you sell?
What if I don’t like your strategy?
How are we different to other companies on the market?
How are we different to other companies?
Unlike other companies, we aren’t tied down to any particular developer, vendor, agent, or geographical location. More importantly, we aren’t tied down to any particular type of property. What everyone needs to understand is, when you invest into my business, I need to show you that we can deliver a huge amount of value to you. Otherwise, your membership fee is a complete and utter waste of your money. And to be brutally honest, it’s a waste of both of our time. So, I actually have a vested interest in the success of all of my clients.
Where, if I can make you $50,000 – $150,000… in fact, I spoke to a client just the other day, who made $250,000 in the first eighteen months of dealing with us. I would like to think you don’t have to look anywhere else, to get your second, your third, and your fourth piece of real estate.
So, unlike other businesses, I’m not really interested in a transactional type of relationship. I’m interested in helping you achieve the very goals that you set out to achieve. And then, making a plan, step by step, to ensure that you invest in real estate that’s going to set you up. It’s not going to set you back. So, we’re not tied down to any particular geographical location, or developer, or agent. I actually employ a full-time team of people, who’s only job it is, is to research the markets.
Now, if you’ve been following us for awhile, and you’ve been following real estate, you would understand that as bad as it sounds, real estate investing is kind of like a big boys club. What I mean by that, it really comes down to who you know, and the relationships that you have. Lucky for us, is we’ve been in the game for the better part of a decade. So we know the good, the bad, the ugly; and we get the phone call, before any other companies do, because of a number of factors. We are really good at generating win-win scenarios for everybody.
What I mean by that, is you need to qualify for our business. You need to make sure that you can afford the types of opportunities that we have. That is, we run your borrowing capacity, we run your finance capacity, to see exactly what you can do. If you can’t take advantage of our services, and I’m not a 100% confident that we can add value to you, we don’t invite you into the family and you don’t join any of our business.
However, if you do do that, can you imagine the economies of scale and the leverage we have, when Damien and I sit down with developers and builders, to negotiate on behalf of you. We get huge economies of scale. We get access to off-market opportunities at well below market value.
So that’s how we are different to other companies. We don’t just specialize in one area. We don’t just specialize in one particular type of property. We specialize in how to generate results as quickly as possible.
We don’t sell overpriced seminar rooms, and boot camps, and that kind of thing. I have a vested interest in getting you results.
Where are you investing and why are you investing there?
Now that’s a very good question. As I said to you before, we’re not tied down to any particular geographical location. We go where we can get you the best return on your capital as quickly as possible.
Now, nine times out of ten, this really comes down to your acquisition cost. How are you making your money going into a deal, right? Not like your typical retail investor, who purchases something and then hopes that a property is going to go up in time.
Of course, we need to look at the market fundamentals.
- What’s the population doing?
- What’s the infrastructure?
- What are the employment nodes?
- What is the demand and the supply?
- What is the yield variation?
- What are the vacancy rates?
- What are the days on market?
- What are comparable sales?
Not what’s listed on realestate.com or domain; but what is actually done, dusted, and settled, that we can look up in RP data to show that it, in fact, is a comparable property.
Where are we’re investing at the moment?
We are investing all up and down the eastern seaboard. Places like Sydney, clients have made an absolute fortune. But given the current market conditions, we can all attest that the market is simply not the right time at the moment. It’s at the top of the cycle, in my opinion, it’s over priced, it’s oversupplied, huge amounts of vacancies to come through, and we know that now’s not the time to invest there.
Similar type of story with Melbourne.
In places like the central coast, it’s in places like Newcastle, it’s in places more regions areas, like Goulburn, Lismore, Gold Coast’s, surrounding areas like that; all the way up north to the Sunshine Coast.
But really, where the area we are investing isn’t too much of interest. What really is important, is the return that we can get on your capital.
As we’ve mentioned before in all of our videos, we never ever launch a deal unless it has a 10% return on your total development cost. Now remember, this is not a return on your cash. The return on your cash is a very, very different calculation. And I might go through that in another video.
What types of properties do you sell?
Now this is very important, nothing against real estate agents, I know there are some good ones and there’s also some bad ones, but we do not sell real estate. We are a complete arms length of agents, of developers, of builders, so we have your best interest at heart. So we don’t sell any property.
However, given the current market conditions, what we do is we look at different, specific types of property that produce the best results. For example, given the current market conditions, where we’re given the best results is in things like duplex development with mutual subdivisions.
The challenge is not everybody can afford $700-$900,000. Which is exactly why you have to go through a finance application process.
Now the market may change, sometimes we may get into areas where we buy distressed real estate, you know, at huge, huge discount. Right? Sometimes, we may have a little focus on subdivisions. Sometimes, we may focus on building triplexes and mini developments.
So the answer to that question is, we don’t have one specific type of property that we sell. We don’t sell real estate. We find opportunities where our clients can make instant equity, you know, where they are buying under market value then adding value, then at the end of that, have the option to sell or refinance to keep growing and keep moving the money forward.
What if I don’t like YOUR strategy?
Well, lets be very clear here. It’s not my strategy. In fact, what I’ve personally done has worked very, very well for me. I learned the secret recipe only five years ago, which has allowed me to get to the results that we’ve got today. But, my strategy could be very different to your strategy. But this is it, this is how our business works.
My strategy, if you want to call it, is all about buying under market value. It’s then adding value, so at the end, you can either sell or refinance to keep growing and moving your deposits forward.
What we aren’t, is buying like a typical retail investor. Where you purchase a property and you hope like hell that it’s going to go up over time. For me, I want to know how I can speed up the results and get a little bit more active, so I can keep growing and moving my portfolio forward.
I hope these four questions have been helpful to you, but as I’ve said, if you have any questions please make sure you pick up the phone and give the team a call (1300 881 422), or submit your application.
We don’t accept you into the program until we know we can deliver a huge amount of value to you.
Until then it’s all just guesswork.
Just call 1300 881 422