Post on 27-Jan-2017
transcript
How to find, research and analyse subdivision opportunities
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Disclaimer Please be aware that tonight’s presentation is for illustration purposes only. All sub divisions will be different and have different challenges and conditions depending on several factors, including dwelling type, council, density plans, precincts and overlays to name just a few.REI encourages thorough due diligence be done on any possible deals and that a reputable town planner be employed to protect your interests.
• Heads up Subscription services team at Real Estate Investar
• Team of 6 Portfolio Managers
• Supporting 3,000 subscribers
• Manages the Concierge Service
Logan Horstead
• Concierge Portfolio Manager
• Property Investor 20+ years
• Personal experience in subdivisions
• Very specific knowledge around the subdivision process
Justin Hams
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
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• 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 investments do you want to own?
Where do you start?
Checklist• What can you borrow?
• Use Investar Search to find an area with suitable block sizes
• Take time to familiarize yourself with that area
• Understand land sale prices and check demand for land using Pricefinder
• Proximity to population centres can be a big plus
• Check the local council websites for planning maps and minimum lot size information
Poll: Would you like a free borrowing capacity check?
Finding opportunities using Investar Search
Notes for the presentation• The purpose of what we are going to
show you is to demonstrate the REI tools
• While we cover a lot of the things that should be done during feasibility studies this is by no means everything that needs to be considered
• There is plenty of great content available on line and checklists you can source for free
• Always consider your personal financial circumstances and the implications of things like GST and CGT
• Seek advice from a professional!
Investar Search
Investar Search
Search Results
Search Results
Search Results
Aerial Shot
Search Results
Planning Alerts
Zoning
My Valuer / My Research powered by PriceFinder
PriceFinder Property Report
Interactive Maps
Interactive Maps
Interactive Maps
Check utilities
Possible division (1 into 3 lots or 3 x Town house)
300sqm
300sqm
300sqm
PriceFinder Sales Data
PriceFinder Sales Data
Land Sales
House Sales Data
Land sales – Under 500sqm
New land approx size (300+sqm) $420K approx
House & Unit Sales – Under 350sqm
New build approx size (300+sqm) $530K – 960K
Purchase Price $900,000Stamp Duty $51,000Subdivision cost $149,000Total costs approx $1,100,000
Sell block x 2 (@$400,000 each) $800,000Hold Existing dwelling cost $300,000
Equity after sale + add deposit $150,000
What do we know so far
Feasibility (1 into 3 lot)Mock up feasibility on 457 Mitcham Rd, Mitcham
Purchase CostsPurchase Price $900,000Stamp Duty $ 52,000Legals $ 2,000
$954,000Development Costs
DA/Engineering/Approvals $ 20,000
Sewer $ 20,000Water $ 10,000Stormwater $ 15,000Telecommunications $ 20,000Infrastructure Charges $ 56,000
Plan Registration, Legals, etc $ 5,000
$146,000
Total Investment Cost$1,095,000
Purchase Price $900,000Stamp Duty $51,000Subdivision cost $149,000Total costs approx $1,100,000
Sell block x 2 (@$400,000 each) $800,000Sell Existing dwelling $450,000Total sales $1,250,000
Cash after sale $150,000
Mock up feasibility
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 the property and land to understand it’s market value
• Performed a feasibility study assess financial return
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 members.
We’ll even help you set it up!
We can help you build and manage
your property portfolio
Join Real Estate Investar today….
• Use the most advanced management tools in real estate.
• Dramatically increase your results and save hours every week.
• Build a profitable portfolio quickly and easily.
• Avoid financial mistakes.
• Plan & succeed.
Your subscription includes
Real Estate Investar Subscription
Option 1 – 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?
• I want to do these deals, but I am not confident doing it alone?
• I’m not sure how to identify a suitable deal for me?
What if?
We will put together a strategic plan for acquiring an investment property or properties
You will have a clear path to acquiring your next investment property
We will arrange your finance
Concierge Service Inclusions
We will identify stock that will assist in accomplishing your investment goals
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)
• Your CPM will be with you every step of the way
• You will receive weekly calls and updates to ensure progress is being made
• When you reach your equity goal you will be advised so you can purchase again
Concierge Service Costs• 100% money back if you can’t obtain pre-approval
• Free qualification session upfront
• Amount can be tax deductible
• 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?Option 1 – 21 day free trial + $249, $149 or $99 per month
www.realestateinvestar.com.au/
Special- $149 casual optionwww.realestateinvestar.com.au/100