The final module covers what to do after renovation: checking resale value against comparable sales, evaluating your agent's marketing, deciding whether to repeat or expand projects, and restructuring finances for growth. It wraps the course and invites feedback at YourPropertySuccess.com.
Chapters
Resale value before taking on this project, you estimated what your end resale value or value of the property would be based on nearby comparable sales. Is this what you sold it for or what the valuation was? When you compiled your list of comparable sales, were they realistic? Were you objectively comparing like for like? And if not, how can you be more disciplined in this area next time round? Were the comparable sales that you selected too far away to be actually truly accurate? Were they more substantial homes sold when the market was booming or just in a better street? Your Real Estate Agent Are you satisfied with the real estate agent that you chose? Could things have been done better? Was there good communication? Are there improvements that you could make clear upfront when hiring an agent next time around? If you chose to renovate and sell, how effective was the marketing campaign? How many parties inspected the property? How many requests for contracts were there out during the campaign? Were you happy with the way the property was marketed, the professional photography and the wording of the advertising copy? If you had a website, how many visitors did you generate? It's worth taking note of these things because on the next project it provides you with a point of comparison. The next project Will you choose to renovate again in the same area or undertake further due diligence on a new suburb? Has your buy price now increased? Replicate if you've done well on a project, then it's easy to gravitate towards a more substantial project the next time around. I advise against doing this early on as it's far more valuable to replicate what you've done and improve that process before increasing your exposure to risk. Streamlining your processes means when it's time to go up a level, you have the knowledge and experience to make a low risk and high profit transaction. Also resist the urge to reinvent the wheel. It's about a process of small improvements on what's already working. Don't go for a completely different style or look for an experiment with some new widget. Just replicate what works. I know it sounds boring, but getting it right and sticking to it is the secret to replicating your profits when renovating. So back to your goals. So now your project's completed, how far off are you from the long term goals and the time frame that you wrote down in Module 1? Did the project return the profit that you expected? Are you satisfied that you chose the right strategy for you? Now it's time to look over module one again and renovate your goals. You might find that your focus has shifted a little. Redefine these as well and get ready for the next project. Building wealth it's true that flipping can get you short term gains, but the power of compounded capital growth really skyrockets your returns. If possible, a portfolio that could combine a few strategies might maybe flipping, Renovating and holding properties that are positively geared combined with properties that have fantastic capital growth could be a great balance. The high capital growth properties typically would cost you each week as they're not paying for themselves, but this would be offset by the positively geared properties that generate an income and the flipping then generates cash to continue building your portfolio. Finance Structuring presumably, now that your project is finished, your financial situation has changed, hopefully for the better. Getting your finance right can mean the difference between growing a portfolio and being stuck with just one or two properties. It's important to continually meet with your finance professionals to reassess this. It's not just about determining your new borrowing capacity, it's also about creating the right financial structure to suit your long term goals and strategy. Many people have started their property investing journey only to be curtailed by their lender or their lending structure. Like being cross collateralised or being with a lender who won't let you access the equity that you've created. Review this now and make sure your lending for your next project is planned. The Business of Renovations People who buy a property with the intention of doing it up and selling it may be considered in the business of renovating by the ato. Also, if you buy and conduct a substantial renovation, be aware that you may have to consider provisions under the GST Act. Be sure to speak to your accountant for individual advice on these. Creating an income from renovating is a dream for many, but you need to know the implications before you give up your day job. What's Next? Your property success courses are designed to work together one step at a time. I teach you how to realize your dreams of real estate investing success. So if you now require more information, go to YourPropertySuccess.com to take the next step in your journey. I'd like to take this opportunity to thank you for coming with me on this journey. I wish you good luck and I hope that the knowledge and experience that you've gained here brings you great success. So here's to your property success. I really value feedback, so please let me know how you're progressing. You can contact me@janeyourpropertysuccess.com Putting this course together has been a huge undertaking. I set out to create the most valuable course on the subject of renovation possible if you can think of ways that I can make this course even more valuable, or if there's anything at all, no matter how small, that I can improve, please let me know. Now get out there and get renovating.
