Prevents real estate investment mistakes!
This simple three-step
real estate investment strategy
delivers rapid wealth creation
without ANY of the usual risks…
…works for first-time investors AND those with established portfolios!
There are entire books written and lengthy seminars produced to teach people how to invest in Real Estate.
I don’t need all that to teach you, I need about 5 minutes—the time it takes you to read this page.
Five minutes reading this page to show you the strategy in detail and if you like what you read, another 30 minutes or so to show you precisely how you can employ this strategy (based on your lifestyle and financial circumstances.)
Free and For Everyone
- 25 and renting a room in a shared house looking to set yourself up to retire in 10 years
- In your thirties or forties with a couple of young kids and want to safeguard your family
- Approaching 50 and want to ensure you have a high quality of life in your golden years.
Not only can I teach you this SUPER SIMPLE and HIGHLY-EFFECTIVE strategy in 5 minutes, I’ll give it to you for FREE.
Why?
Because struggling to do something unnecessarily is bad and dumb and I don’t want that for you.
Not only is the strategy simple to understand, you can employ it quickly. You can get started fast and continue building your portfolio until you no longer need to work for a living.
Sure, then, when you have millions in assets, you MIGHT want to look at some other strategies — at least you’ll have the time. But you won’t NEED to — we have clients with large portfolios that continue using this strategy because it WORKS.
I’m not just going to give you the strategy; I’m going to show you exactly how we meet each component, so we eliminate risk for our clients.
(And then, I’ll show you how you can get the strategy planned for your personal circumstances for FREE.)
The 3 core components of the strategy
- Secure a REAL DEAL
- Get positive cash flow
- Ensure strong potential for significant growth
It looks simple, right? (And it is.)
(And sure, there are a few lawyer and accountant ‘tricks’ to make things tax efficient, but they’re not the strategy.)
But we all know that just because something looks simple doesn’t mean it’s easy.
So, let’s inspect each component in turn and see what’s really involved…
This is critical
#1 — Secure a REAL DEAL
EVERY real estate investment MUST be mathematically-calculated and designed to engineer your wealth.
And getting a REAL DEAL is the most fundamental and critical step.
Getting a REAL DEAL means buying WELL BELOW market value.
Buying below market value IS NOT about making money (although you will)—it’s what ELIMINATES RISK.
Before I explain how you go about doing this, let me show you why this is so important.
No-one, and I mean no-one including YOU, knows what’s going to happen in their lives and how their circumstances might change. The unexpected happens to people all of the time.
And if something drastic happens in your life and you’re forced to sell (and probably sell quickly), then at least you won’t have lost money.
Here are examples of what I mean (based on the mistakes I see many first-time investors make):
Example 1 — The Wrong Way
Buying like you’d buy your own home
The last thing you should do is buy an investment property like you would buy your own home.
Many wealthier first-time investors buy a property similar to the one they live in, located nearby in the same neighbourhood, and at the current market value.
Imagine the investor’s circumstances change — for example, being made redundant — and they need a cash injection.
They can sell their investment property but how do they know they won’t lose money? (They don’t)
They haven’t eliminated any risk whatsoever — the investment property’s value may have gone up or down.
It’s a complete gamble and no investor should put themselves in the position where they’re forfeit to the whims of the market.
If they’re really unlucky, they’ll not only lose money on the sale of the rental property, but if circumstances dictate they have to sell their own home, they’ll lose money on that sale too.
Example 2 — The Right Way
Buying a rental property below market value
Compare the previous example with buying a rental property well below market value.
Imagine getting a 15-20% discount on your investment property, and you’re in the same scenario where your circumstances change.
Even if the market has dipped 10% you’ll still have a profit on the sale of your rental property between 5-10%
And that profit could mean the difference between being able to stay in your own home or being forced to sell it.
How to buy below market value
Put simply: you need to perform a detailed analysis.
First, you need to work out what level of investment property you can afford without putting your financial safety nets at risk AND without unrealistically impacting your lifestyle.
Once you know your numbers, you gather up all of the information (from a site like realestate.com.au), crunch the data in a spreadsheet, and identify potential winners.
It’s a chunk of work, and you would need to dedicate quite some time if you were to do this yourself.
And lastly, there’s the potential for a BIG PITFALL we see inexperienced investors make all the time.
What’s the big pitfall?
Simple.
Because the inexperienced investor has spent so much time to get to the point where they’re ready to buy they don’t want to walk away from the deal even when it’s not quite right. They’d rather overpay compared with the “#1 REAL DEAL” rule just so they can avoid going back to the beginning, and starting over, repeating the hard work.
The strategy is now completely broken and the #1 risk has not been eliminated.
How much below market value does Real Deal Property typically get for clients?
I have to admit we have an unfair advantage — (don’t worry, it’s one you can exploit!)
Because we’ve been doing this for such a long time, many agents who need a quick sale will come to us with potential properties before they even think about listing the property on somewhere like realestate.com.au
Why?
Because they know we have a pool of investors (including ourselves) who are ready to buy when properties meet our criteria.
There are lots of reasons people need quick sales — legal reasons, divorce, changing financial situations and so on.
Take a look at some recent client investments…
3x bed townhouse
Purchase price: $107,000
Renovations: $35,000 (renovations took just three weeks)
Total investment: $142,000
Current valuation: $260,00
Sweat equity $118,000
3x bed house on 8000sqm land
Purchase price: $60,000
Renovations: $50,000 (renovations took just four weeks)
Total investment: $110,000
Flipped for $202,000
Profit $92,000
4x units, each 2bed 1bath 1carport
Purchase price: $525,000
Market value: $700,000
Positive instant equity of $175,000
#2 — Get positive cash flow
Ever heard of negative gearing?
It’s when people buy an investment property and rent it out for less than it costs them to keep. It’s a strategy that wealthier investors sometimes employ so they can reduce the amount they pay in taxes while enjoying the capital growth on the investment property.
That means they’re losing money every week until they eventually sell the property — and even then there’s no guarantee they will make much on the sale.
It’s NOT the right strategy for most investors.
Most investors need positive cash flow — income-generating properties that pay for themselves and leave at least a little left over.
The average rental value of property in Australia has continued to rise over the last 20 years — but slowly over time.
Rental values don’t increase as quickly as house prices, so it’s important to make sure you start off on the right foot.
How to ensure a positive cash flow
This is much more straightforward than ensuring you buy below market value.
First, you total the yearly expected rent and divide it by the total investment required for the property. Multiply the figure by 100 and you end up with a percentage — that’s called the ‘yield’.
So, if you get $20k/year in rent and the total investment is $120k:
20/120 = 0.182
0.182 x 100 = 18.2% yield
This means that if you mortgaged all of the investment ($120k), then the interest rate on the mortgage would have to be over 18.2% before you were in a negative cash flow situation. (Interest rates are currently about 6% — in this example you’d be making just over $13k/year after paying the mortgage interest.)
There are other things you can do to command higher rental values—such as making property improvements—as long as the rental market location will support such increases.
Let’s take a look at our recent client investments once again, but this time with rental values:
3x bed townhouse
Renovations: $35,000 (renovations took just three weeks)
Total investment: $142,000
Current valuation: $260,00
Sweat equity $118,000
Rent before renovation: $230/week ($11,960/year)
Rent after renovation: $400/week ($20,800/year)
Current yield: 14.64%
4x units, each 2bed 1bath 1carport
Purchase price: $525,000
Market value: $700,000
Positive instant equity of $175,000
No maintenance or renovation required. Units were renovated 5-10 years ago and are in perfect condition.
$280 to $300 per unit per week plus commercial shed could be rented for $300 to $400 per month
Average current yield 11.49% (each unit at $290 and not including shed)
Average current yield 12.29% (including shed at $350/month)
22x studio units
Current rental: $150pw each (12.25% yield)
Renovations booked to increase rent from $150pw to $250pw
20.43% yield once renovations are completed
Try getting anywhere close to 20% on your money with any bank or investment institution.
#3 — Ensure strong potential for significant growth
Over the 25 year period from 1993 to 2018 the housing market has gone through five distinct growth cycles which has pushed national median house values 412% higher. (Over the same period, the ASX All Ordinaries index has risen by 261%.)
Clearly, investing in property has outperformed the shares market considerably.
It’s difficult to get aggregated data after 2020 but we all know that since COVID, house prices have undergone another significant increase.
Take ANY 10-year period within the last 50 years, and you’d still have always enjoyed higher capital returns compared with when you first invested.
There are other factors that will mean property prices will continue to rise — the main one being an increasing size in population.
Properties in different locations experience their growth cycles at different times for a variety of different reasons.
What you don’t want is to invest in an area or property type that has just experienced significant growth as you’ll have to wait much longer for any capital return. (And any kind of market rebalance could negate the first ‘rule’ of this strategy — buying below market value.)
Again, this is simple to understand but takes significant work — you have to look at the property values over time in each location and see which have potential for growth and which have already peaked for now.
Why would you want Real Deal Property to act on your behalf?
Now you know the three main components of the strategy you have to ask yourself, “Is this something I’m comfortable doing on my own?”
MOST people aren’t.
They worry that they don’t have the time to do the research effectively.
By far the biggest worry is they will make some kind of mistake and cost themselves thousands of dollars.
Most people never get started because they think they aren’t in a position to invest when in fact they can do so almost immediately (without any significant change to their lifestyle.)
There are lots of reasons I could tell you to about why you would want to use our service such as…
Our Strategy Experience:
We have over 11 years of experience doing this for ourselves, our families, and more recently for clients.
We know what works for all types of investors — whether you’re a home owner or not, whether you have a family or not, your income and assets, and so on.
Many individuals are surprised at what they can achieve with hardly any impact on their current lifestyle.
We Do The Hard Work Without Any Emotional Attachments:
We do all of the hard work for you—we find potentially suitable investment properties and make sure they satisfy the requirements of your strategy.
Much like a seller of a property has an agent acting for them to get their property sold at the best possible price, you will have an agent acting on your behalf to find you suitable property investments, perform the strategy analysis, and ultimately negotiate for you.
We don’t care about any of the usual real estate agent sales tactics — they won’t work on us. We either get the price we need or we move on to another property. No problem!
(Even now, you still won’t have paid us a single cent.)
No High-Pressure Sales:
We start off with a completely free, no obligation call to discuss your current situation and what you’re looking to achieve. Then we go away and work out how to employ the strategy for you, based on your circumstances, and to reach your financial goals.
Then we go through that strategy with you in detail, so you know exactly what the plan is. Again, this is completely free and 100% confidential.
If you like what we propose we go away and find properties that meet your needs.
We show you the properties and what’s involved.
If you want to go ahead we’ll negotiate on your behalf and put things in place for you.
You only pay us when you buy the property
We even have a completely hands-off option where we do everything for you right up to and including getting the property rented and managed on your behalf.
What to do next…
One of the biggest regrets of the elderly is working too much and not spending more time with their loved ones.
The truth is most people are too busy working to ever get rich and spend their time how they really want to. (In fact, many people struggle to answer the common interview question, “Where do you see yourself in five years time?”)
If you look back five years, are you where you expected to be? Or have you just gone along with wherever life takes you?
Employers will always have a ceiling on how much they’re willing to pay an employee and so the only real option is to go into business for yourself.
And that’s what real estate investing is all about — it’s a business. YOUR personal business. And the beauty of it is there’s no need for employees, offices, advertising and all that jazz.
Plus it’s way easier and much lower-risk compared with any other option. People will always need roofs over their heads.
All you need to do is fill out the contact form below and jump on a call with me for about 30 minutes. Completely free and absolutely zero obligation.
If you don’t like what you hear then we can part ways and the only thing you’ll have lost is 30 minutes of your time.
Surely the life-changing potential we’re talking about here is worth half an hour?
I hope to speak with you soon…