I have been asked a lot about looking at Multi-family properties as options for investment, something that is relatively unique to the US. I have done a couple of articles here on this but also now going to run some small workshops on this topic on the East Coast. First one coming up will be Brisbane! We use an app called Meetup to manage these workshops, so if you haven’t already found us on Meetup under US Property Investors look us up! We have groups in Melbourne, Sydney and Brisbane so far and soon to open up in Adelaide and Perth!
Next upcoming workshop is in Brisbane on Monday March 11th, 5:00 pm – 7:00 pm at the Novotel in Creek St Brisbane. We do a 50-60 minute meet and greet/networking to start then around 6:00 pm start the workshop with a 15 minute Q&A at the end.
If you want to come along, click on this link below and sign up. It’s free and bring your business cards to network! We also usually have some seasoned US investors or experts in each of the their particular areas come along and are there to answer questions etc.
http://meetu.ps/e/GpmVj/BHqNf/f
The following one will be in Sydney in late March, dates to be announced, then Melbourne early April! So jump in whichever group is best for your location and stay tuned for updates.
Brisbane – http://meetu.ps/c/3ZFQv/BHqNf/f
Sydney – http://meetu.ps/c/3ZFN3/BHqNf/f
Melbourne – http://meetu.ps/c/3wzf5/BHqNf/f
For any more information on these or if you have any requests for future workshops, feel free to book a call with me to chat!
G’day all!
So, here it is Tuesday morning as I write this, I’m sitting in the beautiful Barossa wine region on a spectacular day, and thinking this is what it is all about. The ability to take time out of the busy lives and sit and enjoy life for a while. We often get so caught up in the day to day, urgency and busy-ness, that it is so easy to forget why we are doing this altogether. The old saying that “its easy to forget why your draining the swamp when your up to your neck in alligators”
The returns are nice, money is nice, but really isn’t what we are all after is time? Flexibility to be able to do what we what, when we want? If we want to work on some investment deals, or on the portfolio, we do, if we want to sit in the Barossa on a warm day and sip wine, we can.
When things get difficult and plans don’t always work out, it can be so easy to wonder why are we doing all this. It is the “why” that we need to keep forefront of our minds so that when difficulties arise we can push through, because we remember the “why”
I know a lot of people always harp on it, but the truth is we really need to find that “why”. It’s the why that is going to give you the strength to push through barriers, get over the obstacles, move on and keep going. If its time with the family, holidays, buying a winery in the Adelaide Hills…whatever it, find it, stick it on the fridge, up in your office, look at it all the time, keep it in the forefront of your mind and make it happen!
Ok, off to try another Shiraz!
Have a great week all and happy investing !!
Cheers,
Lindsay
|
G’day all!
Here we are half way through February already and who’s with me asking “Where is this year going?!” Maybe it is something that happens as we get older, time seems to go by faster. I even had my 15 year old son mention to me last night on the way home, “that he felt at the current rate of time movement, the weekend would be over in an hour!” haha! Now, I’m not certain that’s a fact, but it certainly can sometimes feel like it. We do though, need to be careful that we are not putting off things that we need to do NOW, until tomorrow. We find that as the days turn to weeks then months, the old saying “tomorrow never comes” gets more and more true. We go through our days, working and trying to make a living, but forget that we need to also take time to make a life! Same as any business coach would give you advice on your business, transpose that into your daily life – don’t forget to put some time aside from working IN your life and work ON your life. Set those goals, do something that takes you a step towards them each day, week, month before the year catches us again!
Now, so far we have covered 3 of the 4-pack of the “traits of the successful”. As Meatloaf says “3 out of 4 ain’t bad!” Oh wait, maybe he said 2 out of 3…anyway, i digress. Now we are up to our 4th and last trait – Commitment.
Successful people aren’t gifted, they are “gritty”. Grit is the commitment to do whatever it takes to succeed. I think we have a myth currently that when we see someone successful, whether it be in sport, or music, movies, or business, we feel that they are “gifted”, something they have been born with or an advantage they have. If you dig deeper behind the scenes, more often than not you will find that their success was not a overnight thing, but was down to the commitment they had. Looking deeper, when most people gave up and rested, the successful people kept moving, kept pushing, kept trying. They practised, tried, worked, failed, got up, tried again, over and over. Their commitment to do what it took to succeed is what set them apart from the others, its what allowed them to rise to the top of their field. Its this commitment to ourselves, commitment to our goals and commitment to our future that we need to have. Combined with the other traits – Focus, Disciple, and Determination, the commitment will allow you to see it through and win!
If you are committed to making a change this year to your financial future and want to start investing in property or want to add high cashflow properties to your portfolio, we would love to help. For any more information on what Star Dynamic Property Investments can do for you follow the link below to our website or Facebook page and check us out!
Have a great weekend all and happy investing !!
Cheers,
Lindsay
I get asked all the time by investors when looking at property deal feasibility reports as to what is the best exit strategy for US property – flip it (resell) or hold it (rent)? Often though, the answer is not as black and white. One of the most important things I look for in any and every deal we do, or recommend to an investor, is to have TWO exit strategies. Have a plan B. This can be one of the most important parts of analysing any deal. We always want to have the preferred option, but have a backup in case circumstances change.
Now, there are a number of factors you need to take into account when looking at which exit strategy is best for any particular property deal. No one particular point is the most important, I generally look at all aspects and rate them, seeing which way a particular deal leans towards (flip or rental). Particular areas to look at are:
I think always the first thing we should always look at is what is the estimated return we will get from renting the property or selling the property. We also need to take into account when selling costs such as realtor commissions, taxes applicable, title company charges and settlement/closing costs. If a particular property is going to give a high rate of rental return (i.e. over 10% net after costs) then it could be a great addition to your portfolio to keep. If on the other hand, the rental return is down around the 6-7% but the profit from sale (again look at net after costs noted above) is over the 20-25% range, then it’s possible the best strategy may be to flip and invest the money into another deal.
Demographics and market forces of a particular region or neighbourhood can play a role in what is the best exit or outcome for a particular deal as well. Certain areas may be heavily owner occupier properties, often giving higher property prices as it may be a popular area people want to live. This may lean a particular deal towards looking to do a better level or renovation/rehab and plan to flip the property. Other areas might be very strong rental areas; very low vacancy and high rental returns compared to the price of the properties might tend a particular deal to be a good rental. If you have properties in rougher or less affluent areas of a city, it may be best to renovate and sell, with the demographics of the area not conducive to getting good solid tenants. Don’t forget also to check sale prices in the region over the past 3-6 months, to see if the area is getting any capital growth. Maybe a boom in infrastructure or businesses is seeing prices rising, so again, it can lean a deal towards rental, to hold onto while the prices in the area appreciate.
How much capital you have in the deal (or would have if you were to purchase) and the cost of funding (if applicable) is also a critical factor to look at. If the property cost is relatively affordable then it may be good to hold the property and look to purchase another for flip or hold. If on the other hand, a particular deal will tie up all your available capital, and if returns are such that you are unable to continue investing (stuck so to speak), then getting a chuck profit from sale, to enable you to continue to invest in your strategy might be the best option
The type of property you have or are looking at can also play a big part in the favourable exit strategy for the deal. Large 4-5 bedroom properties with 2-3 bathrooms possibly on large blocks, are not as generally favoured by renters, and/or don’t really get the rental return they deserve with rental demand more for the 2-3BR /1BA homes or apartments. Larger two storey properties though, could look to be turned into multi-family residences (MFR) with possibly a 2 BR unit upstairs and 2 BR unit downstairs depending on the layout. This can significantly increase the rental return a property can give. Occasionally, property layouts could even support 3 separate units, vastly increasing return – these would lean strongly to rentals.
Often it is not just one of the these points above that will decide for you the best option for your deal/property. It may be a combination of 2-3 points that gives you that Plan A, but you should always have ready that Plan B in case circumstances change. On the other hand, one particular point might be so strong in one direction, that it is easy to see the best outcome for the deal.
If your looking at starting or adding to your investment portfolio and would like to discuss options and strategies, book a call with us today!