Master Class:Buying an investment property with confidence: how to optimise the your research and maximise your 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.

Todays 7 topics1. Pros and cons of buying new

property from a developer

2. Pros and cons of buying new from a marketer

3. Pros and cons of buying new from a buyers agent who offers a free service

4. Pros and cons of buying an existing property yourself

Todays 7 topics5. Pros and cons of engaging and

paying a buyers agent to buy a new/existing property

6. How to combine your strategy, research, execution and partners to get the best results

7. How the Real Estate Investar all-in-one property investment platform can help you apply your chosen strategy whichever buying option you choose

Maximise audio quality• Please ensure your speakers are on, volume is up and not on mute.

• You can test your audio in the control panel of the Go To Meeting software, under audio preferences.

• If you can’t hear us yet, please ensure your speakers are on and turned up.

• TURN OFF: Outlook, Skype, online back-ups and any music or video downloads.

• Faster internet = better quality audio.

Audience poll

How much time do you have to spend on your investing each week?

In 2014 (at age 29) I made 3x more from property investing than I did working my six figure day job, it was at this point that I decided to make property investing my full time business.• Since buying my first property in 2011 I’ve bought, built and

renovated over $3 million worth of property.

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 to get started• You don’t have to be a rocket

scientist• It’s fairly consistent• You can use 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 pros and cons of doing it on your own or with the help of a buyers agent

1. How to optimise your research

Your success or failure depends on the quality of your research

Research to do on an area before you buyResearch 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 you buyResearch 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 you buyResearch 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 poll

How many investment properties do you own already?

2. How to maximise your financial results

2. How to maximise your financial results

Ideal Investment Property

Research

PartnersExecution

Strategy

Do your research.

Pick the right market.

You make your money when you buy.

3. The pros and cons of 5 different buying strategies

1. Buying an apartment off a developerPROS

• Buying direct can save you between $30,000 and $70,000

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

• You have the potential to make a capital gain before the completion of construction

Example

• A 3-bedroom, 2 bathroom, 1 car apartment on a busy road in Westmead recently sold for $660,000 after being purchased off the plan in October 2013 for $535,000.

1. Buying an apartment off a developerPROS CONS

• Buying direct can save you between $30,000 and $70,000

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

• You have the potential to make a capital gain before the completion of construction

• You may pay a premium if the sale price is based on the future value of the property

• You can’t guarantee the apartment will value up on the completion of construction

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

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

schedules can be misleading• You have little control over the quality of

finishes, fixtures and colours• The quality of construction can be low

2. Buying house & land off a developer

PROS• Buying direct can save you between

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

• Good developers, in a rising market, will generally increase the price of their land as they release each stage of the estate

• The price of residential land in parts of QLD, NSW and VIC are on the rise

• You may receive higher rent and higher depreciation benefits when purchasing brand new property

• Often when an estate is completed you have the potential to 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 can save you between

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

• Good developers, in a rising market, will generally increase the price of their land as they release each stage of the estate

• The price of residential land in parts of QLD, NSW and VIC are on the rise

• You may receive higher rent and higher depreciation benefits when purchasing brand new property

• Often when an estate is completed you have the potential to make a capital gain

• The builder will manage the entire project on your behalf

• You are often paying retail price• The developer may not give you a discount

until the final stage of an estate is released • Your properties value is capped by the

value of new land selling in the estate• Builders and developers can see

inexperienced home buyers a mile away and will often charge a premium

• Construction projects can be difficult to manage from another state

• 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 can save you time• Its ‘free’• There presentations look amazing• They sell the sizzle• They employ the best sales and marketing

professionals in Australia

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

PROS CONS• Its easy• It can save you time• Its ‘free’• There presentations look amazing• They sell the sizzle• They employ the best sales and marketing

professionals in Australia

• You can pay well above retail price• You are not going direct• 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 builders, developers or buyers

agents they are property marketers pretending to act on your behalf

• They are not working for you they are working for the builders and developers who supply them with product

• They are paid between $30,000 and $70,000 from the builders and developers they represent

• The properties they sell can be over priced • The areas they market are often in boom and bust

markets• They market themselves to inexperienced

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

model. • They don’t really care if you win or loose.

4. Buying an existing property yourself

PROS• Its ‘free’• Its can be a huge amount of fun• There is nothing that anyone else can do

that you can not learn how to do yourself• Its becomes 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 can be a huge amount of fun• There is nothing that anyone else can do

that you can not learn how to do yourself• Its becomes 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• Each mistake will cost you time and money• Each 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• DIY investors often pay full retail price• You 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• You are more likely to miss-time the market

and buy at the top

5. Using a buyers agent who charges a feePROS

• They will save you time• They work for you• They can help you develop a property

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 inside the industry day in day

out• They can 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 feePROS CONS

• They will save you time• They work for you• They can help you develop a property

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 inside the industry day in day out• They can 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 (which can is generally between $5k-$25k per property, or 2-3% of purchase price)

• They can be expensive• Some buyers agents are not property

investors themselves• Some buyers agents are un-licensed• Some buyers agents do not have your best

interests at heart• Some buyers agents will make you buy the

first property they find• Some buyers agents will not let you have a

say in what you buy • A huge amount of buyers agents are

actually property marketers

Audience poll

Who has already had experience with these sales people?

Horror stories

#1 Bought an inner city unit direct from a

developer in Darwin

#2 Bought a house and land package from a property marketers in

Mackay

# 3 Bought a townhouse from a ‘free’

buyers agent in North Brisbane

Case studies

Recent buy #1• 3 bedroom house

• Purchase price - $405,000

• Rent - $380 per week

• Comparable sales - $435,000

• Rental yield – 4.88%

Luke Taylor – Brisbane, 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• 5 bedroom dual occupancy house

• Purchase price - $430,000

• Rent - $650 per week

• Comparable sales - $515,000+

• Rental yield - 7.86%

Jason Mills – Sunshine Coast, QLD

Audience poll

When are you looking to buy your next investment property?

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 our clients.

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

Who do we help?

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

2. We help you work out the right investment strategy.

3. We research the market and identify a range of properties that fit your property investment goals.

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 doing all of the research and leg work.

7. We get paid by our clients based on results: $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 4 purchases. 1 was for my personal portfolio and the other 3 were for my company.

On all fronts I wanted to make a clever purchase that would allow us to release equity quickly in order to rapidly grow our portfolio. We decided to move forward 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.

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 quickly 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…

Neither do 99% of the other investors we speak with each month.

Don’t worry…

If you need a hand and think we can help…

Step 1 – Book a 15 minute chat at:info.realestateinvestar.com.au/pumped-on-property

OR,

Step 2 – Book a one on one strategy session at:

If you to proceed, the next step is book a free 1 on 1 strategy session with Ben, where he will help you work out:

- Where you are and where you want to be. - A clear investment strategy. - Your next action step.

www.pumpedonproperty.com/free-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.

Step 1 – Book 15 min chatinfo.realestateinvestar.com.au/pumped-on-property Extra bonus: Receive a copy of my 83-step checklist for conducting due diligence on your next investment property.

Step 2 - Book in a strategy session www.pumpedonproperty.com/free-strategy-session