Post on 27-Jan-2017
How to Find Renovation Property and use it to produce Equity
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• Property investor for the past 10 years
• Supports 500+ subscribers
• Personal experience with renovations
• Great amount of industry experience
Dennis Wong
• Property investor for the past 10 years
• Supports 400+ subscribers
• Personal experience in renovating properties for profit
• Own’s positive cash-flow properties
Sarah Deane
Material contained in this presentation is an overview only to demonstrate the Real Estate Investar platform. It should not be considered as a comprehensive statement on any matter nor relied upon as such.
This presentation contains general information only and does not take into account your personal objectives, financial situation or needs and you should consider whether the information is appropriate to you before acting on it.
Before acting on any information you should consider seeking advice from a financial adviser and your accountant before making any financial decision in relation to any matters discussed in this presentation.
General advice disclaimer
We help investors build and manage
their property portfolios
• 3,000 current subscribers
• Mix of personal users, brokers, buyers agents and accountants
• 200,000+ members use us for market information, calculators, investment news and updates
Real Estate Investar
ASX:REV
• Heavy investment in product
• Public company governance
• Strong and focused board;• Simon Baker – Former CEO of REA• Anthony Catalano – CEO of Domain
In partnership with…
1.9m Australians
1 Property
2-4 Properties5+ Properties
• Pays shortfall for 5 years+.
• Eventually sells and pays down personal debt.
• No retirement income.
• Strategy & numbers.
• Self funding portfolio.
• $100-$250k+ passive income in retirement.
• Has high income or buys every few years.
• Freehold in retirement.
• Min. retirement income.
Source ATO/ABS
3 levels of Property Investment
1.9m Australians
1 Property1.4m73%
2-4 Properties470,000
25%
5+ Properties30,000
2%
• Pays shortfall for 5 years+.
• Eventually sells and pays down personal debt.
• No retirement income.
• Strategy & numbers.
• Self funding portfolio.
• End up freehold• $100-$250k+
passive income in retirement.
• Has high income or buys every few years.
• Freehold in retirement.
• Min. retirement income.
Source ATO/ABS
What level are you aiming for?
Poll: How many investment properties do you own?
- Limited equity to purchase
- To accelerate property acquisition
- Maximise your cash flow without having to purchase additional properties
- Can be done to your own home
Why Renovate?
- Growing market
- Low days on market
- Properties in a wide range of price brackets
- Low vacancy rate
- High no. of Auctions / Auction Clearance Rates
Factors that favour renovations
Finding opportunities using Investar Search
Searching For Renovators
Search Results
Search Results
Search Results
Property Pictures-378 Rode Rd Pp$415k
My Valuer / My Research powered by PriceFinder
PriceFinder Property Report
PriceFinder-Property Report
Property Report-Pictures
Property Report-Floor Plan
Property Report-Interactive Map
Property Report-Street View
PriceFinder Property Report
PriceFinder Property Report
PriceFinder Property Report
PriceFinder Property Report
Comparable Rentals: Chermside
PriceFinder Radius Search
Comparable Radius search results
Comparable Radius search results
Comparable 303 Rode Rd Sold $570k
Comparable 5 Alleena St SOLD $525k
Property Pictures-378 Rode Rd Pp$415k
Reno Costs – Click in laminate timber
Reno Costs – Flat pack kitchen
Reno Costs – Flat pack kitchen
Reno Costs – Painting
Quote from Painter 3 Bdr House:Repair and paint walls, ceilings, Gutters inside and outCost: Inside: $2,800
Outside: $3,500Total: $6,300
Reno Costs – BathroomEstimates:Basic Bathroom Package$2,700.00Tiles$1,000.00Labour$2,000.00Estimated Total$5,700.00
Source: www.bunnings.com.au
Reno Costs – Wall Fence
Source: www.slimwall.com.au www.serviceseeking.com.au
Distance of House Front – 13.1mWall Materials Cost – 13.1 x $166.10 incl. GST = $2,175.91Labour 1 Day @ $80/hr per personLabour for 2 people = $1,280.00Estimated Total Cost = $3,455.91
Renovation Cost’s
Kitchen & Install $5,000Flooring & Install $2,328Paint $6,300Bathroom $5,700Fence $3,455Renovation Cost $22,783
Purchase Price $400,000Renovation cost $ 22,783Purchase Costs $16,728Total Spend $439,511Revalued House $540,000Manufactured Growth $100,489
The Figures
What are the financials?
Quick access
Quick 10 year forecast
Edit your deposit, reno costs and value
Edit your vacancy and costs
Edit your depreciation and growth
10 yr forcast: Equity & Buying Power
Post Reno 10 yr forcast: Equity & Buying Power
Cash flow – Pre Renovation
Cash flow – Post Renovation
• Use the manufactured equity to purchase again
• Simply rent the property for positive cash flow
• Sell the house and take the profit
FREEDOM OF CHOICE
Choices
Poll: When are you planning to purchase next?
Poll: What is your biggest challenge with investing?
• We’ve searched 900k to 1.2m properties
• We’ve narrowed our search based on our specific criteria
• We’ve valued and researched pre-renovated and renovated properties to understand their market value.
So what have we achieved thus far?
Add to your portfolio
Property added to my portfolio
Manage & review cashflow
Set long term growth forecasts
Automatic monthly value updates
• Manages;– Entities– Properties– Ownership
• You can track and review any combination.
• Monitors property and suburb growth.
Portfolio Tracker
Automate your accounting
• Simplify accounting. • Reduces accounting fees.• Track your investment entity cashflow.• Understand investment performance.• Biggest reason investors fail: Poor
financial management;• Monitor your bank balance daily.• Collaborate online with your
accountant.• Your financial accounts are
always ‘market ready’.
How Xero helps you
Connect with Xero
• We will help you get the bank feeds active.
• We’ll help you get your portfolio setup and integrated with Xero.
• We even offer up to 5 hours 1 on 1 training to help you get started using our platform. Open to all trialists and subscribers.
We’ll even help you set it up!
We can help you build and manage
your property portfolio
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Join Real Estate Investar today….
• Use the most advanced management tools in real estate.
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• Build a profitable portfolio quickly and easily.
• Avoid financial mistakes.
• Plan & succeed.
Your subscription includes
Real Estate Investar Subscription
21 day free trial + $249, $149 or $99 per month www.realestateinvestar.com.au
Special on a Real Estate Investar Subscription
Special- $149 casual optionwww.realestateinvestar.com.au/100
Extra support bonus to get you started
All new members will receive up to 5 hours complimentary
1-on-1 training valued at $745.
And remember…
Immediate advantage over 99% of investors.Your subscription is tax deductible.You can pay with your SMSF.Unlimited help and support.First 21 days are free, with no obligation.
Bonus 1: 5 extra hours of 1-on-1 training valued at $745.Bonus 2: 1st 21 days free
• Loved what I saw, but I am time poor?
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What if?
We will put together a strategic plan for acquiring an investment property or properties
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Concierge Service Inclusions
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Access to exclusive off market opportunities
Together we will identify an opportunity and act on it
You should expect to successfully go unconditional on a property within a 6 month time frame - or less!
Concierge Service Inclusions
Concierge Service Inclusions
• You will receive a 24 month subscription to REI’s Portfolio Builder tools
• You will have a dedicated Concierge Portfolio Manager (CPM)
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• Outcome based product, not education, not mentoring, but you will learn along the way!
Poll: Would you like a call to discuss the Concierge Service or the REI Trial Subscription?
info@realestateinvestar.com.au
Questions?21 day free trial + $249, $149 or $99 per month
www.realestateinvestar.com.au
Special- $149 casual optionwww.realestateinvestar.com.au/100