Master Class:Your next investment property purchase: how to optimise the process and maximise the financial results

With Ben Everingham from Pumped On

Property

We help investors build and manage

their property portfolios

In partnership with…

Real Estate Investar’s tools

Master class webinars• Designed to share knowledge.

• Desire to provide extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A.

• We will run these regularly throughout the year, and sometimes involve our partners to provide additional insight.

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Todays 9 topics5. xxx.

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Audience pollInvesting

I’m the director at pumped on property.• At the end of last year I made the biggest decision of my life,

to leave my well-paid career and become a full time property investor and buyers agent.

• At the start of 2014, i was at a cross roads…

Meet Ben Everingham

In 2014 I made 3x more from property investing than I did working my full time day job. • Since buying my first property in 2011 I’ve bought, built and

renovated over $2.2 million worth of property. • In 2014 I walked away from paid employment and made property my

business at age 29.

Meet Ben Everingham

My portfolio

Buying an investment property with confidenceHow to optimise your research and maximise your financial

results

The elephant in the roomInvesting in property is really easy to do…• It’s relatively low risk• You don’t need a huge

amount of money• You don’t have to be a rocket

scientist• It’s consistent• You can leverage

What will we cover today?1. How to optimise your

research2. How to maximise your

financial result3. The pros and cons of

buying an investment property through a developer or property marketer

4. The option of doing it on your own or with a buyers agent

1. How to optimise your research

Your success or failure depends on the quality of research

Research to do on an area before buyingResearch Real Estate

InvestarAlternateSource

Distance to major city / major regional area Yes Google

Population Yes Google

Average annual price growth Yes YIP Magazine

Price growth over the last 3 years Yes YIP Magazine

Price growth over the last 12 months Yes YIP Magazine

Predicted price growth over the next 5 years Yes Residex

Median house price Yes YIP Magazine

Median rent Yes YIP Magazine

Rental yield Yes YIP Magazine

Rental vacancy rate Yes SQM

Number of houses sold in the last 12 months Yes YIP Magazine

Research to do on an area before buyingResearch Real Estate

InvestarAlternateSource

Average number of days on the market Yes YIP Magazine

Average vendor discounting Yes YIP Magazine

Supply and demand No Realestate.com.au

How do the locals rate this as a place to live No Homely.com.au

Demographics Yes Localstats.com.au

Number/map of schools Yes Google

Number/map of shopping centres Yes Google

Public transport options No Google

Top performing agent in the suburb No Rate My Agent / Open Agent

Research to do on an area before buyingResearch Real Estate

InvestarAlternateSource

Distance to schools, train stations, bus stops, shopping centres, cities and beaches?

No Google

Is the house on a main road or train line? Yes Google

Is the house under power lines or opposite a park? Yes Google

How many houses in the street are renovated? Yes Visit / Google

Are houses in the street well maintained? Yes Visit / Google

Is there any housing commission in the street? No Visit

Would I personally live in the street? No Visit

Comparable sales within a 1km radius of the property in the last 12 – 24 months?

Yes RP Data

How much did the current owners pay for this property and how long have they owned it?

Yes RP Data

But wait there’s more: 83 steps in all

Agents are a great source of informationQuestions to ask an agent?• Listing price?• How many weeks it been on the

market?• Have you received any written offers?• Have you done a title search? Was it

ok?• What’s the feedback been to date?• Why are the owners selling this

property?• Is there anything outside of price that

would make our offer more attractive to your vendor?

• Is there anything else we need to know about this property?

• If we submit a written offer today what price would buy this property?

Audience pollInvesting

2. How to maximise your financial results

2. How to maximise your financial results

Ideal Investment Property

Research

PartnersExecution

Strategy

You make your money when you buy.

Audience pollInvesting

3. The pros and cons of 5 different buying strategies

1. Buying an apartment off a developerPROS

• Buying direct may save you between $30,000 and $70,000 if the developer has not partnered with a property marketer

• There is quality stock available if you know where to find it

• You may make a capital gain before the completion of construction

1. Buying an apartment off a developerPROS CONS

• Buying direct may save you between $30,000 and $70,000 if the developer has not partnered with a property marketer

• There is quality stock available if you know where to find it

• You may make a capital gain before the completion of construction

• You may pay a premium based on the future value of the property

• You cant guarantee the apartment will value up on the completion of construction

• Your future value is often capped • There is an over supply of inner city

apartments in VIC, NT and QLD• Rental appraisal and depreciation

schedules are often misleading• You have little control over the quality of

finishes, fixtures and colours• Quality of construction can be low

2. Buying house & land off a developer

PROS• Buying direct may save you between

$30,000 and $70,000 if the developer has not partnered with a property marketer

• Developers generally increase the price of land as they release each stage

• The price of residential land in parts of QLD, NSW and VIC are all still increasing in value

• You generally get higher rent and higher depreciation benefits when purchasing brand new property

• When the last piece of land in an estate is sold you may make a capital gain

• The builder will manage the entire project on your behalf

2. Buying house & land off a developer

PROS CONS• Buying direct may save you between

$30,000 and $70,000 if the developer has not partnered with a property marketer

• Developers generally increase the price of land as they release each stage

• The price of residential land in parts of QLD, NSW and VIC are all still increasing in value

• You generally get higher rent and higher depreciation benefits when purchasing brand new property

• When the last piece of land in an estate is sold you may make a capital gain

• The builder will manage the entire project on your behalf

• You are paying retail price• Your future value is capped by the value of

new land in the estate• Builders and developers sense

inexperienced home buyers and often charge a premium

• Construction projects can be difficult to manage if interstate

• It can be difficult to secure a fixed price building contract

3. Buying off a property marketer or buyers agent who does not charge a fee

PROS• Its easy• It saves you time• Its ‘free’• There presentations look amazing• They sell the sizzle

3. Buying off a property marketer or buyers agent who does not charge a fee

PROS CONS• Its easy• It saves you time• Its ‘free’• There presentations look amazing• They sell the sizzle

• You are paying above retail price• Your property will often decline in value after the

property marketers have left an area• 80% of all new property sold in Australia is sold

through property marketers• They are not really buyers agents they are

property marketers pretending to be buyers agents

• They are not working for you they are working for the builders and developers they represent

• They are paid between $20,000 and $70,000 from the builders and developers they represent

• The properties they sell are often over priced • The areas they sell property in are often boom

and bust markets• They market themselves to inexperienced

investors chasing short term gains• Their businesses are based on a churn and burn

model and are not conductive to long term win-win relationships

4. Buying an existing property yourself

PROS• Its free• Its fun• There is nothing that anyone else can do

that you cant do by yourself• Its can become a passion for many

investors• You have the opportunity to buy below

market value• You have access to every property in

Australia• You can time the market

4. Buying an existing property yourself

PROS CONS• Its free• Its fun• There is nothing that anyone else can do

that you cant do by yourself• Its can become a passion for many

investors• You have the opportunity to buy below

market value• You have access to every property in

Australia• You can time the market

• You can make mistakes very easily• Every mistake will be costly in terms of time

and money• Every mistake will take you further away

from achieving financial independence• It can be time consuming• It can be mentally and emotionally draining• You don’t know what you don’t know• You will often pay full retail price• You will only get access to on market

listings• You are not in the industry on a day to day

basis• Your relationships with agents within the

industry are short term and transactional• You are more likely to buy in boom and bust

areas• You are more likely to invest with your heart

rather than your head

5. Using a buyers agent who charges a fee

PROS• They save you time• They work for you• They can help you develop an investment

strategy• They are looking out for your best interest• They have access to every property in Australia• Their research and experience can save you

money• They work in the industry day in day out• They help you find out what you really want and

help you get it• They make buying property simple and stress free• They deal with real estate agents, developers and

builders on your behalf• They get access to off market opportunities• They will hold your hand through every step of the

process

5. Using a buyers agent who charges a fee

PROS CONS• They save you time• They work for you• They can help you develop an investment

strategy• They are looking out for your best interest• They have access to every property in Australia• Their research and experience can save you

money• They work in the industry day in day out• They help you find out what you really want and

help you get it• They make buying property simple and stress free• They deal with real estate agents, developers and

builders on your behalf• They get access to off market opportunities• They will hold your hand through every step of the

process

• They charge a fee often $5k-$15k per property or 2-3% of purchase price.

• Some buyers agents can be expensive• Many buyers agents are not property investors

themselves• Some buyers agents are un-licensed• Many buyers agents will sell you the first property

they find• Many buyers agents are actually property

marketers disguised as buyers agents

Horror stories

#1 Bought an inner city unit from a developer in

Darwin

#2 Bought a house and land package from a property marketer

in Mackay and Ipswich

# 3 Bought a townhouse from a free

buyers agent in North Brisbane

Case studies

Recent buy #1

• 5 bedroom dual occupancy house

• Purchase price - $430,000

• Rent - $650 per week

• Comparable sales - $515,000

• Rental yield – 7.86%

Jason mills – Sunny Coast, QLD

Recent buy #2

• 3 bedroom townhouse

• Purchase price - $290,000

• Rent - $350 per week

• Rental yield – 6.28%

Royce green– Gold Coast, QLD

Recent buy #3

• 3 bedroom house

• Purchase price - $405,000

• Rent - $380 per week

• Comparable sales - $435,000

• Rental yield – 4.88%

Luke Taylor – Brisbane, QLD

Audience pollInvesting

We are a full-service buyers’ agency who help our clients buy and build tens of millions of dollars worth of property each year.

What’s our focus?

We help first time and established investors:

• Buy existing houses, units and town houses in growth markets.

• Build brand new houses, dual occupancies and duplexes in growth markets.

• We ONLY get paid by the investor.

• You can’t be unbiased and act in your clients best interests, if you (also) get paid commission by a developer.

Who do we help?

1. You start with a complimentary 1-on-1 strategy session

2. We help you work out a personalised location/property strategy

3. We research the market, identify multiple properties that fit your investing rules.

4. You choose the property/s you like.

5. We manage all facets of the negotiation and purchase for you.

6. We spend hours/days do all of the research and leg work.

7. We get paid by our clients based on success: $5,990 per property.

Our 7 step process

Our mission is to help you replace your income through property investing so you can do what you love…full time.

We want you to achieve financial independence so you can;

• Spend more time with the people you love.

• Achieve your financial and lifestyle goals.

• Reduce your dependence on paid employment.

• Create a more secure future.

Why do we do it?

Testimonial #1

“I engaged pumped on property as buyer agent for two purchases. One was for my personal portfolio and one was for my company.

On both fronts I wanted to make a clever purchase that would allow us to release equity quickly in order to rapidly grow. We decided to with two different approaches.

One was to buy an existing undervalued house in a high-growth area and renovate; the other was to buy infill land in a prestigious location and build (both in the Brisbane area). Overall, I am very happy with Pumped On Property’s service. Ben and the team are obviously savvy and have a great eye for a solid investment.

Apart from this, the thing which most impressed me was their commitment to outstanding customer service.” 

Kym Volp, Director – Evolve Scientific

Testimonial #2“I’d like to thank pumped on property for all of their help.

They were extremely professional and helped me answer every question I had as a first time investor. They helped me move quick and put me in touch with the right people at the right time.

The team at Pumped On Property were only ever a phone call away when I needed a hand. I would definitely recommend Pumped On Property to anyone looking to find the right property at the right price!” 

Jarrod Boyle – Qantas

• Have a clearly defined property investment strategy?

• Know where you want to be in 3 – 5 years time from now?

• Have a plan for achieving financial independence within the next 10 years?

Do you…

• 99% of the investors we speak with each month don’t.

Don’t worry…

If you think we can help… Request a free 15 minute no-obligation chat with me to see if we can help you with your next purchase or with working your portfolio goals.

If you decide to proceed, the next step is a free 1 on 1 strategy session where we help you work out;

• Where you are and where you want to be.

• A clear investment strategy.

• Your next action step.

How do I book my 1-on-1 strategy session?

1. Book for a 15 minute chat first if you prefer at: www……………OR2. Go straight to: www…… to book in a strategy session

Question time…Request a complimentary 15-minute no-obligation chat with me to see if we can help you with your next purchase or with working out your portfolio goals.

www…………

Extra bonus: Receive a copy of my 83-step checklist for conducting due diligence on your next investment property.