Your Property Success Mentor - October - 27-10-2016

Hey everyone. Welcome to the Ultimate Guide to Renovation 2016. So, just before we get going, I just need to do the following disclaimer that you just need to take care of what you hear on these webinars and apply it to your own personal circumstances. Everyone's situation is different and all the information in today's call is based on our personal experience and opinions and is not intended to be specific to your circumstances. And we're not real estate agents, financial planners, lawyers or accountants and are not liable for any loss, damage or misunderstanding caused by reliance on any of the information provided or inferred. The other thing is, these calls are often recorded because they have some great questions. So we routinely record and share the content of these calls down the track and, and you might have heard some of the questions, for instance, in our recent podcast. So by participating in this call, you're acknowledging this and if for some reason you prefer not to be included on recording, we just ask that you contact our office on 1-300-963-646 within 24 hours and we can edit you out of the call. So with all that out of the way, I'll introduce you to Jane Slack Smith.

Hello, it's Jane here, and welcome to the Ultimate Guide to Renovation 2016 October intake. It's great to see so many of you making yourself known in the Renovator Network this week already, and it is fantastic having you on board and I know that we're going to achieve great things together here on these mentor calls. We will be catching up every single month like this for the next 12 months. And this is where you will learn things that you can put into action and hopefully things that will give you real value for years to come. So we are going to get to know each other very, very over the course of the next 12 months. And the whole idea behind running this program in this way is so you can literally shortcut years and years off your investing journey by learning from my experience and the experience of other people within the group. So what's really important is that you listen with open ears. I really encourage you throughout this program to be open to approaching things perhaps a little differently than you have in the past or even what you have heard from other educators. We don't gild the lily here. What you will get here won't be the promise of overnight riches, but instead the practical knowledge about what really works in the real world. And of course, everything you'll learn here is useless unless you put it into action. And that's what I and the Other members of the Renovator network are here to help you, do encourage you and support you in taking action. And that starts just one step at a time with completing each module and each exercise one at a time. So there's work to be done here creating the financial future you desire because it's not a spectator sport. And what's great is that all of the information you need is here. I'm sharing with you all of the methods that I've used to build a multi million dollar property portfolio. And we can honestly believe that this is the most high value and effective course of its kind in Australia right now. We want you to build your financial freedom with it and then we want you to tell others about it. So tonight is your opportunity to ask questions about the Ultimate Guide to Renovation course. Ask questions about anything you like, hear all about what's coming up and of course we will be here with you on the journey 100% of the time. And if for some reason you don't make a call, you can call a message us. Your question on 1376, 1,119. That's 1376, 119. And of course we do record the calls and we'll put them up within the Ultimate Guide to Renovation dashboard so you can listen to them usually within 24 hours.

Yep, three years worth there if you'd like to listen to those.

And a lot of people have gone back and listened to the wall now you can hear that voice. And before I get too carried away, I do have to introduce you to. It's someone who has been integral in putting together this course with me and he likes to fly under the radar. But you are going to get to know him very well because he's a very much a part of the Ultimate Guide to Renovation program. And he is of course the co creator of the course, John Hubbard. Hey John.

Hey Jane. Hey everyone. Welcome.

I think we have to update those photos of us. We've aged a little.

Well, you might have.

Now look, John is a serial renovator with over, I don't know, 25 years experience and has a very strong technical knowledge of building and renovating. Like where did you start renovating, John?

So I was a first reno of my own house was in 1999 but there was a lot of, seemed to be a lot of renovation before that. I was a tradie originally so I picked up a lot of the skills and, and was always a bit of a jack of all trades anyway and, and then started doing my own houses and Roping my mates in to teach me how to do things and that kind of thing and. And then went on to do a little bit of flipping and now developing. Now developing which was a little bit by accident because I was, I was, we were looking in a suburb to do flipping and it just turned out that the development stacked up a lot better. So we went and signed up a mentor and, and yeah, did a couple of, couple of developments. So we're just finishing off the last one now. It goes to sale. First open is this Saturday actually.

Wow.

Yep. So it'll be an interesting. Another end to another chapter.

Yep. And then you'll be able to share with us all the stories on that too.

Yeah, lots of stories of that.

Now of the two case studies that you have seen featured in the Ultimate Guide to Renovation or will see featured, the structural renovation was actually one of John's own projects. So John's structural renovation also featured his box on the bat technique, which is a great technique.

Yeah, yeah it is. And the, the gist of the box in the back is it's we like structural renovation. We like anything that in that creates a higher and better use in the property. So by adding a bedroom that's really good because it knocks the property up into another category. And the idea with the box on the back is you can turn the existing rooms underneath that roof line into bedrooms and create extra bedrooms. And then you can add an open plan onto the back with a really, really simple structure that's, that's low cost and it's the cheapest way we know how to do that just by. It's really a glorified lean to. But just using the kind of latest trusses and rafters to.

From the commercial world.

Yeah. So you can span, make great big spans without losing that roof height. So it's super cheap way to. To build and a really easy way to knock your property up into the next category.

And there's some blueprints in chair module nine.

Yeah.

All that to come. All that to come.

So on the other my expertise is cosmetic renovations and holding properties to build a portfolio. So in terms of complementary skills, you have the benefit in this course of both of our combined knowledge. And John I should probably mention has also put together a lot of the back end technical side of this course. He has a background in video production and some other techie type abilities that have made this video course so possible. So be sure to make good use of John's knowledge and 25 years worth of building experience on these calls. We pretty Much had every everything asked of us over the last three years. If those of you have been ultra keen in the last week have gone back and started listening to those past calls. So there's not much that we haven't been able to answer and if we can't, we try to find an answer for you.

Find an answer, yeah.

So let's talk about what we have coming up because it is going to be great. The next 12 weeks as the modules are released weekly, you will be learning about how to find the right suburb and the right property, how to negotiate effectively to achieve the best deal and then how to finance that deal. You'll learn everything you need to know about cosmetic renovations, structural renovations, renovating to sell, renovating to hold, not to mention words, phrases, lingo that you have probably never heard before. And actually I've just pinned to the top post in the Renovator Network Facebook page a fabulous post from Nicole who actually put together a glossary of terms for those people who are good on you. Nicole sitting there going oh my goodness, what are they talking about? So another fabulous one of our community has been with us for many a year and as you'll get to know the people and the names and faces as they keep popping up full of.

Support, it's often a topic of discussion after the workshops and so on. The all the building lingo that we throw around that people are very.

Yep. And you just get used to it, don't you?

Yeah, you do, yeah, you do, yeah.

And then most importantly the process of how to do it again and again and again again is what we come back to and finish with. So we really here to help build long term wealth and our philosophy is teach the man to fish pretty much rather than do it for you so you can replicate it for years to come. So all very exciting information but there was also some bonuses we threw in this year as well. So they were pretty exciting. Now we've got obviously the 12 online modules of task by task video tutorials. Now you can have lifetime access to those. So one module will be released each week over the next 12 weeks and within each module, geez, sometimes five, sometimes 10 little videos, but short and sweet enough for you to be able to come back to time and time again and get to the right bit of information rather than look through three hours worth of information and downloadable. So we've had people all over the world send us little images of them watching some of the videos, sometimes on the lunch break, sometimes on planes.

And if you like listening to audio, you can Download the audio file too good to listen to on the way to work.

Yeah. So and there's 12 months of these support calls, these Q and a calls, typically 8pm Eastern Standard Time, Daylight standard time at the moment last Thursday of the month. And they usually go for about an hour and a half. And of course exclusive membership of the Renovator network. So that is that private Facebook masterclass and well, Mastermind group really, isn't it? Where any of your questions can be answered immediately. And full access to the complete library of all the downloadable support material, including checklists, workbooks, exercises, gosh, videos run into a lot of checklists, blueprints. The list goes on and on. And another bonus was and will be when we pass that 30 day money back guarantee period, we will be sending each and every one of you. We've already got the list together ready to put to press send on a renovation 12 month Renault save card. So this literally has saved me thousands and I use it regularly on my renovations. So you know, the amount of I just saved last year in the kitchen package alone was extraordinary. And then throw, throw in the carpet and the tiles as well. It's fabulous. And actually we've had a few people share some of the savings they've had on the Renovator network and yeah, it's. You make the cost of the course back alone with that one.

Yeah. And actually just reminds me of a probably good time to mention in the top right corner of the Renovator Network Facebook page, inside the private group, top right corner, there's a search function there. So get in the habit of using that because it's a really good way to find because often things have been done multiple times and there's been lots of people talk about what deals they've got through the trade card, for instance. So I reckon if you put trade card or reno save in the search function, you bring up quite a few posts there that would be good value.

And if you are putting a post in, don't be afraid if it has been posted before, we're not one of those forums and say this has been asked a thousand times, go away. Everyone jumps in and answers questions. So don't be afraid to post. And the other thing is that we found just from a search methodology, it's easy to put in capital letters, a bit of a title at the front so that we can all search for things like development and subdivision and light fitting recommendations and things like that. So make sure you do that. And another bonus that we've added in which is the Quick quote calculator. And this is gosh, amazing. We've had builders and developers actually by the course of line to have access to this over 20 years of intellectual property. In putting together all of the costings that are needed for so many of the different jobs on the, on a renovation or development you used it to cost up your recent development and then track the costs. So that's module five that will be coming out and that's, that's extraordinary value. And then finally the location masterclass with the suburb selector software. So that is amazing and, and obviously that will be coming through to you in module two.

So Friday morning you'll be have that in your hot little hands.

Midnight Thursday night for Friday morning we have some people to sit there waiting for things in the past. So that's really exciting. We're really, really excited about adding that into obviously for all of our students and alumni to be able to use. So that is fabulous. And for those of you who are asking how to get on the Renovator Facebook network, just send me an email@janeultimateguidetorenovation.com we have put most of you on there but sometimes it's yeah, I just.

Saw a message from Diane just asking how you get on the renovated network. Djarn if you know what email address is associated with your Facebook page. So what email address you use to log in if you put it in chat there just privately, I can also send you a message out tonight or tomorrow morning too to make sure you're in there. Sometimes Facebook can be a little tricky getting hold of everyone. If you haven't heard from us, check your messages to your private messages because we do do our utmost. We send emails and message via Facebook to try and get you in there as fast as possible but those messages don't always get seen. So just check your messages in Facebook.

Fabulous. So and that's finally look just the renovator network alone. You know, it's a chance for you to actually team up with like minded people inside that network. So we've had a lot of people organize their own little meetups and I've seen a call that has come out today already from someone saying hey, is anyone there from Per. So I think it was Kakey Lee, anyone else from Perth. So watch for it and, and hopefully we can, you know, you guys can hook up in there. We know a lot of people who have, have done that and get together regularly.

So absolutely.

Which brings me to my first poll because I want to get to know you guys a little bit Better, too. And I want to know where you are from, so I would love you just to put in what state you are from and let us know where you are.

Watch, here we go.

Okay, so everyone see that quick poll that's just pulled up on your screen?

Or you can see on the screen there and you can click one of those options there.

Okay, 95% voted. I think we'll close it.

Cool.

And let's have a look. So most of the people from New South Wales. And then we've got what, New South Wales, 45, Queensland. 15, Victoria. Hey, good on you guys. Like us. Public holiday today.

And you're still here.

And you're still here. And hopefully. Well, maybe you guys have had a few drinks. We've had to keep it clear ahead. Yeah, but. And Western Australia, 15%. Fabulous to see you guys, too. Now, I might just go quickly to the next poll because there are a few people, 5%. That's in my other group. And I don't want you to. More. Yep. I don't want you to feel that we've bumped you all together. So give us an idea for just those. Those few people who have indicated they're not in New South Wales, Queensland, Victoria, or Western Australia. Where are you from? Since no one's. No one's putting down any numbers there or maybe someone had accidentally put something down. We have had people from New Zealand and overseas as well in the past, haven't we, John? So that's been pretty exciting. Okay, we might close that one off. And no.

Yeah, There you go. 100% from South Australia.

There you go. So that's good to. Good to know as well. And then we've got. Okay, I just want to know, have any of you renovated before? So have you renovated your home, an investment property or. Not at all. So I want to get a feel for how many of you have actually renovated. Okay. 75%. Great. So a lot of people have done their home, which is great. So, you know, I guess when we talk about a strategic renovation, John, it's one of the problems that we get. Some people fall into is over capitalizing because they've lived in the home. They've done the renovations over five, 10 years rather than five to 10 weeks, which is typically what we would do, especially in a cosmetic renovation. So.

So it's a good place to start, isn't it? It's a good place to get to.

It's where most of us.

Yeah, that's right.

Is renovating our home. Getting a bit of a taste for it. Going well, I've done this before and you may have even renovated your home and sold it and made some money and gone, well, geez, if I can do this for my home, maybe I can do this for investment. So really, really good to see that. You know, we've got similar amounts of people who have, you know, done their investment property as well and renovated. So hopefully we add a lot of value to that for you because we know that with past students, especially those with more than 10 properties as well, have come back and said how much value they've got from, from the course itself. And for those of you, the 30% who have never renovated, well, you are exactly in the right place because you're going to go through with people who've renovated their homes, renovated investment properties, and the entire community of people who have been through this course. And, and what you'll find is, you know, we, we usually launch this course twice a year, March and October, and all the alumni jump in and start again with module 1, 2, 3, 4, 5, 6, and go through again and just reinforce their strategies and goals. So it's a fabulous thing. Final poll for now, which is I would love to hear what renovation strategy you're interested in. So that's the buy, maybe renovate and hold the property for the long term. Buy, renovate and sell the property. Maybe you want to develop. And I've already seen some people in the Facebook group talk about doing that. We had a couple this week have had properties approved, the DA's approved, which exactly is fabulous. Some are looking to subdivide and maybe just sell off the back of the property.

Well, it's a natural progression. A lot of developers, or nearly every developer I know, I can't think of any actually that haven't started with renovations. So it's a bit of a ladder there. Natural ladder, isn't it?

Yeah, absolutely. And then there's the old granny flat. So let's have a look at what people are interested here. Now, there's multiple, you can have multiple answers for this, just in case you're wondering why. Oh, yeah, it doesn't add up.

My maths isn't very good, but I'm sure there's something wrong.

Buy and hold is, I guess, the typical strategy that we're used to as homeowners. And the flipping strategy is one that, that we typically see on the block by renovate and sell. The subdivision and development strategies are really interesting because we have a lot of people within the course who are taking the renovation strategy to the next level and Often what they do is they might renovate a house at the front of a block and use that increase equity to pay for the subdivision and deposit on developing the back or they sell off that vacant land at the back or they sell off both of them. So, you know, there's a lot of strategies that we discuss as well. And John just coming off the back of two developments, he's got a lot of experience there. And then we've got the granny flat strategy, which is really often a bit of a twist on that too, which is the dual income where they renovate the property at the front and then put a granny flat on the back. So you actually have what the lenders indicate or lenders would call two units on one title. So yeah, so. So a lot of different strategies, John, and I'm pretty sure we'll get to talk about a lot of them. So good job guys. Well, let's get back on to I guess a bit of housekeeping before we, I'm going to get that out of the way first before we. Okay, we're not going to do housekeeping. I'm obviously at the wrong stage. We're going to get on to looking at the goals module. So what I might do is I guess it's important I know some of you, depending on when you bought the course, may have had almost two weeks of the goals module. I've had a lot of time to think about this and others of you who joined us as of the. We had a flurry of last minute enrollments at midnight, midnight after midnight on Thursday night. But we really wanted you to have the time to get in and have a look at that module because I think it's really, really important and it was designed to prompt you to establish your long term goals and also give you a close look at the merits of the two main renovation strategies and that being that renovating to sell and renovating to rent so you can make an informed and intelligent decision on what strategy is right for you. So I really hope at this stage that you have filled in the information in Module 1 workbook. I'm going to do a quick poll to test you out and just see who has actually completed their goals and in that workbook because I think it's really important and if you haven't done it, I'm not going to ride you any any further. But I want you to know that a lot of people have had complete breakthroughs in what they thought was the, the soft, fluffy stuff at the front and they were really keen to get into the content and, and when we, we kind of re engage them to go back and do that, that that module, they have a complete clarity. And I noticed from some of the questions might share those results but I know from the questions that we had even last Thursday night in our final webinar and a lot of the questions I answered underneath the video series in the subsequent weeks or previous weeks, a lot of people wanted, you know, to know about the course and you know, how do I decide on the strategy that's right for me or how do I decide where to look in the streets where the owner occupiers are compared to where the renters are? And why is that important? And it really comes down to your strategy and your strategy is dictated by your goals.

So Kerry's got a comment there. Goals to strategy is the unclear point for me. So hopefully you got a microphone Kerry, because I have a good opportunity tonight to have a chat.

I think the thing about being clear, foremost being very, very clear on your goal and your time frame to achieve your goal is so important because it dictates everything else, Kerry. So if you're sitting there and saying look, in the next five years I want have a hundred thousand dollar passive income, then your goals and that's your goal, your strategy is going to be a higher risk strategy than someone who sits back and Sundays look, in 15 years I would like a passive income of $50,000 because that's more of a buy and hold long term strategy. So your goals dictate and the time frame to achieve them really dictate what your, your long term strategy is going to be. And you know, it's fine to change your strategy as you go along the, the path of property investing.

It's probably a good thing to, you know, revise. Yeah, revisit your goals and revisit.

Yeah. And I think that's why so many of the alumni students go back and, and start again with every, you know, every six months and go am I on track? Is the strategy still getting me there? Because I know there's a lot of people who don't have the certain serviceability or even the equity to get to a hold strategy. So they start with a buy, renovate, sell strategy. They build up equity, you know, thirty, fifty, maybe a hundred thousand dollars, you know, with maybe two deals a year till they get to that nest egg that allows them to then start holding the properties. So you know, Kerry saying her goal is a $400,000 passive income in 15 years. And what I'll do a little Bit later is I'll jump onto that, the calculator and just show you how many properties that means now because, you know, I think it's really important that you understand if this is possible or not. And obviously that comes down to your personal circumstances of your borrowing capacity which is dictated by your income and is dictated by your expenses. So everything is linked together. So from your goals you come up with a strategy and from your strategy you come up with your buying criteria. So if your strategy is, you know, I need to be more risky, I would like to develop a property you might be looking at a 800 meter square, 15 metre frontage corner block with, you know, typical property on it, three bedroom house at the front with enough of a presence on the property itself so that you can actually subdivide and put a property on the back as well or a building on the back. So your buying criteria is now very, very specific on what you need and that is dictated by your strategy. So we'll get into that. Kerry, I'm to ask you get, get you call on you a little bit later. So check that microphone. So I guess the thing is, you know, we want to know what your, your goals are and we might just pull up that poll John because you know, when you, I guess an actual I will pull up this poll first. What best describes your goal? Is it, you know, do you really, if you're looking at the overview goal, is it, you know, you want to give up work completely. So you know, Kerry, in you know, it might be I want a $400,000 passive income and that's it, you know, I want either equity in the bank or properties completely paid off that are going to generate that income for me or you might say, look, you know, property is going to add to my asset base. I'm going to increase my asset base and allow that to continue to go up in value with my capital growth and you know, I'm happy to cover the cost difference because I'm happy to keep working. Or you might say look, look, I'm going to use property to add to my income and I'm going to continue to work. So you know, it might be acceptable to you to say, you know, I'm on a household income of 100,000 now in 10 years time I'd like to think that I had enough property that I could maybe sell it, put money in the bank or have it paid off. So I'm earning the income that I need to cut back on work two, three days a week. So to continue to Work. So I'm just interested in, you know, what your, you're looking to do with your property. So most people are very keen to give up work completely and let property allow them to do that. And what I typically see when I speak to people and have these conversations with my clients and students is that, you know, for those that are looking to give up work completely with property, it's usually a longer term goal that they have to be able to achieve that because they're usually trying to replace their household income as they have it. Now for those who, you know, using property as an asset base and potentially get hit in retirement, go, you know, I've got 10 million bucks worth of property and it's time now to sell down in that maybe in a better tax environment for selling down. And they look at doing that and then there's others that say, you know, in eight to 10 years, you know, I want to have a certain amount of property and I want to either sell it all up and put the money in the bank and have some additional income, or I want to sell up some of it and pay down some of the loans. So they're either paying for themselves or adding, you know, maybe 20, 30, 40, $50,000 a year in income so I don't have to work how I'm doing it. So, you know, understanding what your strategy is, is really important and what your goal is. So getting your goal right really helps you and the timeframes really help you to understand, you know, what you're trying to achieve and you what which you know, I guess when I talk to people about their goals, this next poll that I just going to run here about your financial goal and what you've come up with. And I understand that a lot of you haven't done your goals as yet. So think about this. And that is, you know, I talk to people and they say, you know, my goal is to have four investment properties or my goal is to buy one investment property a year. And you know, so as you know, kind of conversation strategy throw out to interested people at dinner parties, that sounds fine, but the reality is four investment properties in Toorak and four investment properties in Muranbah are going to give you a completely different type of retirement. And you have to understand that it is a business and it's a numbers business and it's all about the numbers and the numbers dictate what income it is that you want to achieve. So when you're thinking about your goals, think about what is that income that you're trying to achieve. So we might just have a look at what people are trying to achieve here. So, and, and I, and I guess this is the thing is the majority of people, and this kind of lends into what we saw in that other poll, John, is that the people who are, you know, that, that higher income, they want to replace their income completely, for instance. So, you know, and by doing that, by replacing their household income. So, you know, that's what over 90% people want over $100,000 auto. Sorry, over what's 20, 40, 50 percent one, over $100,000. And you know, about 50% want less than 144% want between 50 and 100, which I think is the typical type of goal that I see. But the important thing, and the next poll shows this, is that it's actually the time frame to achieve this, which is the key thing that you need to consider. So, you know, what is that timeframe that you want to do this in? And when for all of those of you who haven't completed the first workbook and haven't gone past it, or you're sitting here listening to the recording going, thank God Jane's not talking to me because she's about to pull my name out of the air and open up the mic and ask me if I did my goals. Don't worry, we're not gonna, we're not like that. But I want you to be sitting there and, and I might just close that now. But you might be sitting there and thinking, okay, this kind of gives me a little bit more context. And for those of you who've done it, you know, trying to achieve a goal within, you know, 10 years and 15 years, you know, I would say is relatively conservative. And, you know, those who are trying to do it within five years is more of a higher risk type of strategy that you're looking at, you know, that developing the subdivision, you know, is.

That reminds me of that saying, people overestimate what they can do in a week and underestimate what they can do in a year.

Yeah. So, you know, it's good to see. And I mean, I wrote a book about having two investment properties making a $50,000 passive income in 15 years. So, you know, that, that long term is definitely possible. But I speak to 60 year olds who are like, oh my gosh, you know, I reckon I've got 10 years worth of work left and how am I going to invest my money? So all good. So that's it. I promise, no more, no more polls. So, and I guess the Thing is that when you're thinking about your goals and what you're trying to achieve, it's really important that you consider, you know, is it that you want to get rich quickly? Is it a lifestyle and desire that, you know, you want to change the lifestyle that you have? And maybe it's just that you want to, you know, develop your own personal knowledge base and apply it and teach your family what you're doing and how you're doing it so that you're actually, you know, I guess spreading that and knowledge and spreading that abundance of what you've learned. So you know, sitting back and having a think about your goals, I think in week one is really, really very important and I'm glad so many of you have done it and I encourage the rest of you to get cracking on it. So I also really hope that you make use of all the tools provided for tracking your spending as well so you know, you can concentrate on what's really important. And you know, I know that I in particular took that little notebook with me and I took it around and I wrote everything that I spen spent for a month and I was like, gosh, who knew that I spent 50 bucks on flowers and you know, magazines and books and so I joined the library and I started taking my lunch to work and, and, and you know, I even had a conversation with my 8 year old son today and he was saying, oh, I really. Which I really wish we were rich like my friend at school. And I said, oh, what makes you think that your friends rich? And he said, well, he lives in a, in a small little apartment that looks like a hotel. So you know, hotels are where you go when you're on holiday. So you know, he must be really lucky to live in a, in a little apartment. I said yes, you know, that's fabulous. It's, it's great, it's great for cleaning too. But you know, I've lived in many apartments. It's a great way to live. And I said, but is that really why you think he's rich? He said no. He said he gets all the toys he wants and his parents take him everywhere that he wants to go. And he's out at Bounce and he's at the climbing gym and he's at the zoo and he's doing this and that. He said, and they're always, they're always doing that. Said, well, some people choose to spend their money and some people choose to save. And you know, we always have family goals and saving goals to put together what we're going to do. And you know, we make that decision together. So we don't spend our money all the time. I said, but it doesn't mean if someone's rich or not rich. It's about how you choose to save your money and what you're saving for. And a lot of people have that, you know, that immediate desire to spend money and satisfy that need where I, you know, talk about that, I guess delayed or the tax that you pay now, the property tax you'd pay now to get where you want to go. Yeah. Get to where you want to be in the future. So, you know, just, I guess sit back and have a little think about that. So now, besides goals, there are other things that we discuss in module one. You'll see here on the, just on that previous slide that we had up in the workbook when we talk about the goals and this is just try to give you, I guess, a bit of a clear view of, you know, how to calculate what that passive income is that you're after. And I'll jump into the calculator that we've developed as well, but. And then, then there's the tracker. So the next slide shows you the track and I really encourage you to do that because I think you'll probably be as surprised as I am where money goes. And, and then you can choose how you're going to spend your money, which is great. And so, you know, module one's not just about goals, but you know, we also talk about that strategy selection. So understanding what your strategy is now. And as I said, a lot of people kind of get fearful at this stage and I see a lot of panicked posts on the renovator network and messages that are saying, oh my gosh, I can't decide on my strategy, can I go on to module 2 or module 3? And the reality is you can move on with the modules, but you don't.

Need to know everything at the start, do you?

No, because you can always come back to it. So in module two and module three we really get into that suburb selection and the suburb due diligence. And when you get down to module three, into that due diligence on the streets where you want to purchase or look for properties, depending on what your strategy is, you will be looking for the streets where the owner occupiers want to be in and capital growth is less important. Obviously if you're flipping a property to the streets where the renters want to live and capital growth and rental yields and percentage of renters are really Important so, so the buying criteria or your research criteria is important as it pertains to your strategy. But if you haven't selected on a strategy, it doesn't matter. Do the exercise for both. Go through the suburb selection and go through the suburb due diligence because these are, it's kind of like learning the procedure. Once you know the procedure to make a cake, it doesn't matter if you throw some choc chips in or you throw some raisins in. You know, you can change it up, up, but it's understanding the foundations first and the methods used to actually do the analysis and why it's so important. So you know that understanding your strategy we'll cover in module one, don't be stressed and don't, don't worry if you haven't decided on that strategy by the time you get to midnight on Thursday night. And module two, and then we talk about the Trident strategy. And of course the Trident strategy is a strategy that I've employed over the last, you know, almost whatever it is, 15 years of property investing that, you know, where I, I buy below the market. I buy in an area with good capital growth and I buy a property that has renovation potential. And those three ways of creating equity allow me to make money. So I'm making money in the beginning, medium term and long term on my properties. And if you really get it wrong, you've got two strategies to fall back on to make money. And I know, you know, in a fast moving market it is always difficult to buy below the market. And of all the strategies or the prongs in that strategy, if I was going to give up, that might be one that you have to sacrifice. But I'd never be giving up on growth or the renovation potential to add value. So we then move on to the five Rs of renovation. So, you know, not all renovations are equal. And I guess it kind of goes into that renovation costs and rules of thumb, a lot of people say how much should a cosmetic renovation cost? And you know, we throw around the 10% mark. But the reality is that, you know, if you read the August Australian Property Investor magazine for 2016, I case studied just a quick little Renault that I did on a property that I'd had for over 10 years in Sydney, renovated remotely last year in 2015, and you know, I spent $35,000 and that included all the holding costs and everything as well, but $35,000 on a property that was valued at 820, so you know, below 5% of the value property I Added a kitchen, you know, did carpet and flooring and painting and, you know, really gave it a really nice rejuvenation for less than 10%. And so, you know, there's so many types of renovation and you could just be you're getting in and you're repairing a few things and. Or it could be that you're getting in with a toolbox. Toolbox and, you know, you're really fixing it up. So there's a number of different ways to renovate and obviously being able to do it on the lowest cost possible and add the most value is what we're really looking to do. So and those renovation costs and the rule of thumb, you know, as I said in module 5, the quick quote calculator is just an incredible tool and one of the things that, you know, we use before you get down to actually the final contract signing, to make sure that you can make the. The money that you want. So all of kinds. Good. So I think it might be time for me now, I think, to get onto housekeeping. What do you reckon, John? Yeah, so look, that's essentially what was in Module 1. For those of you who haven't completed everything that you need to do in your goals, sit back, have a think and spend a bit of time getting, I guess, across those goals. And as you can see, there's a simple little spreadsheet that I've got there. And it's not all about your financial goals. We're talking about being healthy and, and being spiritual and curious and, you know, with your family and all of those good things as well. So don't forget those. But obviously we're, we're really concentrating on what you're trying to achieve financially and using property as a vehicle to do that. So before we go on a bit of housekeeping, regarding asking questions, if you do have a question, all you need to do is put your Raise the hand by pressing the little hand icon in the sidebar menu. It's kind of hard to see, but it lives directly above the audio tab and is at the very top of the GoToWebinar control panel. And by clicking on this, you notify me that you have a question. And when it's your turn, I will unmute your mic. When I do do that, you will hear a message that says your line's been unmuted, so you know that you're on. And you can ask questions also by writing your questions in the question box at the bottom of the control panel. And I just want. I just, you know, suggest that you Know, if you have, if we have the time available, we do get to those, but I really do give priority to those with the microphone and spoken questions. As you know, obviously we can have a bit of conversation. I can fully understand your question. I can get to the bottom of it. We can ask, you can ask me things in real time and I can give you a much better answer, which in turn means that it's more valuable for the group. And hey, we have a lot of people also who, who, you know, ask information throughout the who are who have information as well. So we see them type in the chat box, hey, I know specifically some answers to this and they add a bit of value. So all good. Now don't be nervous. You know, there's no such thing as a silly question. I really encourage you to, you know, ask any question and make the effort to get engaged because, you know, that's what we're here for. We don't give up our public holidays for nothing, do we, Josh? We're here because we want to make sure that you really get the most out of this course. Now, as I said, the mentoring calls do go for about an hour, an hour and a half. I do ask you for the sake of the group that if you have more than one question and perhaps a quick follow up question is possible so no one misses out. But nine times out of 10, there will be time to ask multiple questions as well. So put your hand back up again and I'll loop back around and we'll get to your questions and just finally do make good use of the Facebook group. There are so many really experienced people in there. We've got valuers in there. You know, it's amazing group of people, very extremely generous with their time and support. And John and I jump in there every couple of days. But you know, if you can't wait having a burning question, you can't wait to the end of month Q and a call, then jump on there and ask a question and I can almost guarantee you have an answer pretty quickly. So just go to www.facebook.comgroups thereinovatornetwork. John always last because I always say backslash as forward slash. Just ask to join and we'll sign you up if you're not there already or send me an email@janeyourpropertysuccess.com we understand some people's PayPal emails and you know, Facebook emails are different. So we have actually recorded everyone and sent out invites that just might mean that that doesn't, that doesn't hasn't worked out for you, so please getting in touch with us. And last but not least, this is not a tech support call. So if you are having problems with videos or, you know, you, you know, don't know how to download something or there's issues. I think 90% of the issues people have with downloading is Acacias clearing the cache, clearing the cookies. But look, email us and make us aware of what your problem is and we'll get onto that.

And it's normally a pretty simple solution. We're pretty well versed at handling those things these days.

Yep. And then we've got. Oh, we've got a question. All right. Is it Elisa says, where are the workbooks? I can't find them. So just go to module one and we'll get to the bottom of the bonus section and you'll have workbook. Download the workbook. Click on that and there's your workbook. So.

And she did put that in before the. This is not a technical call.

Yeah, that's okay. That's okay. Now what else can I tell you? Yep. Any, any support issues, please get to support your propertysuccess.com and, and we're probably not the right people to be answering your calls right now on the call, but we'll get back to you usually within 24 hours and try to fix things up. So without further ado, I reckon we throw open to the questions and see if he's got a question.

Let's find Kerry. Kerry had a question. There we go. Try your line there, Kerry.

Thank you.

Hey, Gotcha.

How you going, Kerry? Very well, thank you. Thanks for asking a question. Yeah, yeah. So look, I've been doing lots of reading in your book in various sources, but, you know, we talk about realistic goals, but you also talk about, you know, people talk about goals that are a little bit scary as well. So our income at the moment is on, is about 200,000 and people, you know, talk about retirement. I can't imagine retiring unless. Yep. So. Yep, I actually want to go. We get used to the lifestyle that we're accustomed to. Yes. There's a lot of things that I can't do even, even with that income. So I've set a goal of the 400,000 in the 15 years. I just, just wanting to know, is that like, oh, don't be stupid, not possible. Or is that, oh, actually with, you know, the right strategy. That's not, you know, because you talk about 15 years that you've been involved. So I thought. Yep. You could sort of Give me a gauge of whether that's totally unrealistic or not. Absolutely. Look, what I might do is I'll just share my screen with you and just get, I guess do a demonstration of my little calculator here. So you'll see over here if you can see the screen. Can you see that screen? Calculators. So if we go to investorschoice.com there's calculators here. If I look at this portfolio calculator and I've got my whole little explanation there about how to get calculating. But what I've tried to do here, because I do have this conversation so often with so many people, not about how to live off $400,000, usually it's a lot less. But you know, about, well, how many properties is that now? And I know it's a really hard calculation to make. Natural factor. I had two statisticians work a few months on trying to work out this back calculation because capital gains tax, you know, is part of that calculation of back calculating how many properties now. So, you know, just to give you an idea, if we put 400,000, and you wanted that in 15 years, 15 to 20, you know, depending on what. Okay, and you can put in here based on, you know, your borrowing capacity, you know, how much the property might be. So you might put in $500,000. You're putting in a 10% deposit. You can change here what the capital growth is. So I've just got here a 7% typical capital growth. I've got selling costs of 2.5% now. Now I've also got here, and this is based on basically a strategy of I'm going to sell everything off and put my money in the bank and I'm going to get a 5% return. And we know now that term deposits are around about 3% at the moment, but hopefully they go back to the long term healthy yield. Inflation's once again about 1 1/2% at the moment. 2.5% is kind of the RBA's target. So I've got that in there. And you might have a higher tax bracket. So this essentially says based on inflation, $400,000 today, in 15 years time is actually the equivalent of living off $579,000. So if we had money in the bank earning 5%, how much cash do we need in the bank to earn to earn $579,000? So that's around 11 and a half million dollars in the bank. So if I then went and said, okay, so what's $11.5 million in the bank look like? Well, that is actually around about a $23 million property portfolio that was originally bought at a 90% loan to value ratio. So those original loans based on the $500,000 loan, so $450,000 loans, when paid off, you paid the capital gains tax at your marginal rate, you've paid the selling costs and you've put the money in the bank. Bank, you would need a $23 million portfolio. So sounds like a big number in 15 years time. But if we bring that back to today and based on that 7% growth, that's $8 million worth of property now. So that's not your home. This is investments. So you can really, you can do this in two ways. Sorry, you can do this in two ways. You can say, okay, look, $8 million now based on my borrowing capacity is going to be a little difficult, so I need to change things up. So you might go back up and you say, you know what 20 years was. Okay, let's have a look at 20 years. Yep. So 20 years is fine. So you go back and you recalculate that. And what that, that 20 years get tells you is that you need a property portfolio of 5.8 million. Now you can actually change this $500,000 property price to, to a million even. But that the actual portfolio that we're talking about here doesn't change just the number of properties it does. So that 5.8 is important. But what it also tells you here is that it's actually $13 million of an asset earning 5%. Now we've made the assumption that you're selling all your property and putting it in the bank. The money in the bank that's left over and it's earning 5%. But the reality of this is that this could actually be a $13 million property portfolio that's paid off earning 5%. So you can actually either concentrate on that $13 million property portfolio and if we were doing that, then a little bit of back calculation because essentially that means if you're trying to find out what that property portfolio would look like. Now you want this portfolio to be more like 13 million than 22. So we would probably have, you know, a. Well, let's just try $200,000 passive income. So what I'm just showing you is how you would get to that, you know, round about the 13 million dollar portfolio. So it's around about, let's just make it to 40. Because we knew there was $13 million worth of property, which is around about three and a half now. So $13 million worth of property completely paid off because we're now looking at a longer time frame. So it might be possible that you do that. So if you bought three and a half million dollars worth of property now and then, started paying it down over the period of time, so maybe it got to 10 year interest only loans and the last 10 years you started paying it down with all your extra income that you had then it'd be a $13 million portfolio or three and a half million dollar portfolio now and then you can start playing with things and you might say, look, you know, I reckon I'm so good at finding property, I reckon I can get a 10% passive income, you know, capital growth. Capital growth, sorry, 10% capital growth. Back to your 400. So if I can get 10% capital growth, you know, hit my calculate button. Changes things. It changes things again. So, you know, all of a sudden we're talking about, you know, not having so that 13 million, there is actually only 20 million worth of property, which is only 3 million, rather than having, you know, the much higher. Or you might say, oh, I don't believe we're ever going to get back to 5% returns. It's 3% returns. So, you know, all of a sudden we're back to 5 million. So you can play around with this. This is going to be fun to play with. I know, I love it. And I tell you what, here's something else. You know, I've got this, I can talk about this for hours, but I've got these other two tabs here that no one else ever goes to except for me. And this is kind of this financial security tab. I speak to so many people and I would have to say 80% say that their passive income goal is $100,000. And we go through, look, how much do you really need? And it's like, you know, this is like the basic costs that you just have to cover. So. So if you had a property portfolio that had to cover just your basic costs and you could work a day, a week or two days a week to earn the rest of the stuff, how much do you really just need? Because it can get really confronting when you get over to the calculator and it's like, I need 5 million bucks worth of property tomorrow. You're like, oh, not really going to happen. And I've done this with a girlfriend of mine in London actually. She rang up and said, said, that's it, I want to chuck in the job. I've had Enough. How much money do I need to have two years of not working? Like, well, let's see what your basic costs are. So we went through this and did this exercise for her, which basically meant she needed a whole lot less money in the bank. And then this second tab is, well, let's be realistic here. We want to have some basic costs, but there's also those little bit extras that you want, a little bit of luxury as well. And I'm very much of about having buffers in place. So you can go in here and you can all say, look, I really want three months worth of accommodation costs covered or my total costs or my basic costs. So you've got a bit of a buffer there as well. So, you know, although a lot of people do throw out that $100,000 income when you get to the workbook. And I'll just show you. So this is the module one that you would have had access to. And if we come down here, if we just go down to that workbook, when you get down to that question about what's the passive income I want and how long do I want to achieve it, this is where you can actually use the investorschoice.com portfolio calculator to have a bit of fun. So get in there and play around. Because I think, and this is one of the first conversations I have with my mortgage discovery calls is I pull this up and just find out if this number here is. I'm having a conversation with someone who's got a $100,000 passive income and we look at, at this portfolio of a million dollars. It's like, well, that's three $500,000 properties. You know, based on my experience of doing this for the last 11 years, that's possible. So we're not talking completely unrealistic numbers. And it's. I think it's really good to have not just a goal, but have it better than in reality, because I think a lot of people are out there can sell your dreams, but you need to know that you can achieve them. So that's really cool. And yeah, thank you. That's absolutely brilliant. I'm going to show you one other thing, Kerry, because I'm really proud of this other calculator too. Mind you, it wasn't working a couple of weeks ago, so let's just hope it is. But this is the second calculator under that calculator tab. So you can go up here to resources and calculators. And this is the property plus calculator. So let's just Say you've been to your mortgage broker and this, you know, every bank has different borrowing capacities, numbers, so you can jump ahead. Where can I afford to buy? And let's just say that your bank has said that you can afford $450,000 and you've got a $50,000 deposit. So 10% deposit. So we're talking about a $500,000 property and you want to buy. I know we've got some people from South Australia. So South Australia in, oh, let's say East Adelaide and houses or units. This actually goes into live Residex data and tells you the suburbs that you'll be able to afford to buy in. So be excited guys, because that is very exciting. I know, I know. Hey, so you've got some numbers and this is past growth figures here as well. So I think that sometimes you sit there and go, where can I afford? And the reality is that, you know, you can, you can start looking into some of these numbers and you know, looking, looking at areas that you can afford to buy in and you know, I think that's really handy. So once again, one of the calculators and yeah, get in there and play around with them because I think it's a really good question, you know, how do you get from my goals to my strategy? And I hope you can see here that they're just so important and that's the reason we take you by the hand and go, no, you're not going to jump ahead to module three because it's going to be the cool module. We're going to make you sit on module one for seven days.

Anthony says, well, great work. The course is already pay for itself with these calculators.

I'm so glad, Anthony. Okay, well thanks so much, Kerry. All the best. I look forward to seeing you in the network.

Now guys, put your hand up if you want to have a chat because.

We like having a chat, don't we? Yep.

And I'll come and find you and unmute your line. Just stick your hand up there. Otherwise if you're a bit shy, you're not, not quite ready to have a chat. That's okay. You can type your question in the question box. Box. And another comment from Jared. Just saying how great he thinks the calculators are.

Oh, good. Oh, hi Jarrod. I recognize names.

Oh, wow. No questions, absence of a hand.

Well, we will be able to have that beer. Well, just while you guys are getting your confidence up, I just want to show you the Renovator network. So you can see here I got up behind honest. These are not my games, so don't make any judgments over here about my games. I don't know where they came from. I must have clicked on something. But this is the list of abbreviations that Nicole has posted for us, which is fabulous. You can see here Kelvin C has actually put up a question about Strata Title. So you know, he's put in an offer on a property. The buyer's agent ba another word that you'll get used to. Buyer's agent has talked about purchasing this property but there's no actual body corporate. So you know, what's the story with that? So everyone jumps in and has a bit of a chat there. And this is Amy, Amy and Rosemary who have both just had her DAs approved for three townhouses. So really excited about seeing their experience. And Greg here from Cairns has got two investment properties in Brisbane and looking forward to remote renovating. So as you can see, you know, there's questions here about areas you can get vacancy rates split between houses and units. And there's Gabriel, who is amazing. He actually put up a video in our video competition which I think I might just post here on the page because it was so nice. He was encouraging people to join and got feedback. His wife was saying, get the kids out of the video and he rushed home after work trying to do it. So just to show that the value that he had in actual fact, like what we're experiencing right now, we were on one of the Q and A mentor calls and we didn't have a lot of people asking questions and Gabriel had just put in an offer on a property and he said, can you do some analysis on me? I've got a seven day cooling off period. So we jumped on. I pulled up my access to RP data professional, I pulled up access to Ripe House Residex reports. We looked at SQM research, we looked at Suburb View microburbs, we looked at probably 15 different websites and we'd stop every five, 10 minutes, go, okay, any other questions? Otherwise we're going to keep going. And yeah, we just moseyed on through and found out that he was probably. Well, he made his decision ultimately, but he passed on the property. So it's great to see that he's in the middle of this renovation and doing such a fabulous job and sharing his numbers and we've got some really, really great, you know, people in their case studies and sharing in here as well. Everything down to, hey, I need someone to help me with my TV antenna repair.

Just got a question asking about where Are the calculators. So I've just put a link into chat. That's an investors choice forward slash calculators, investors choice.com. and I saw some hands up. Let me have a look here. Oh, no. Bindi's put her hand down. But I'm not gonna let you, Bindi.

Because we want to chat. Hey, Bindi, you got a question for us? Oh, she's got nervous. I did hear a. Did hear something there.

Yeah, we'll let her off.

All right, guys, we've got so many people on this call. I know there has to be some questions.

Ah, there we go. Go on, you. Susan.

Hey, Susan. Susan. We'll wait for a little microphone to go green. Oh, there it is. Hey, Susan, can you hear us?

Oh, yes, I can. Can you hear me?

Yes, loud and clear.

Great. Okay, thank you. Well, this is a really basic question and I feel a little bit silly asking it and I sent you an email today, but what it is is that I've just. This is all new to me. Four weeks I've been exploring this whole new venture. And I bought your book, I bought the online companion guide, I bought the your Property Success, and now I bought the Ultimate Guide to Renovation. And I'm getting. I'm just getting a little bit overwhelmed. I don't know where to start. I mean, I do know where to start. I've read the book up to chapter six.

I'm out.

And I've done all my homework for tonight for the module.

Good, good.

And I'm just not sure I want to do it in a systematic way. But should I. Your Property Success, should I be putting that to one side, you know, and just focusing on this now?

The club.

The club, yes. The Ultimate Guide to Renovation.

Absolutely. Yeah.

I think it's understandable you've had a lot of information in a short amount of time.

Well, I've listened to all the podcasts. Oh, Susan, fabulous. Hey, which one's your favourite?

Well, I was listening to John. John Edwards.

Yeah, John Edwards.

Yep, yep. Really enjoyed that. I also enjoyed Jan Summers very much because back in the early days when you started out, Jane, I ended up buying in Brisbane property. And because we couldn't afford to live in Sydney, we couldn't afford to buy in Sydney, so we bought a property in Brisbane and did really well out of that. And it was really, you know, I mean, I obviously haven't followed through the same way that you have, but I got excited then by reading her book and other books like that, so it was lovely to hear her and her story and, you know, just enjoyed that podcast. But yeah, I've really been enjoying all of them.

Oh, good. Well, it's funny because she's a hero of mine and John's. We both started reading her books, obviously, very many years ago. And she was, when we talked about a podcast, she was like number one and number two was Robert Kiyosaki. And I've got Robert Kiyosaki's EA's email and we're combo conversation. But, you know, everyone in Australia who's in the, the property industry has gone, I can't believe we got Jan. You know, Jen doesn't talk to anyone. I'm like, oh, I know. I think I must have sounded, must have begged. But I'm going to do the same for Robert. Mind you, I was listening to Robert Kiyosaki's podcast and he leaves nothing out. He's. He doesn't suffer fools easily, if that's a nice way of putting it.

He needs some colorful language.

Yeah.

So anyhow, not for me, but. Okay, I think I completely missed your question.

Overwhelmed? Where's overwhelmed?

Okay, I understand you are overwhelmed. Look, the book is a lovely way to start your inquiry journey and listening to a story of someone else and kind of going through the high level, how do you do things? And if you really keen on the course, what we often find is people around Christmas time start buying the book for their family members. We had one lady last year, I think bought six for her kids and went, this is what you just have to read. It's kind of like that introduction and especially when people are in the Ultimate Guide to Renovation and someone has a few questions of you, but not enough, just loan them. The book doesn't want to spend a lot of time in going through the education because it kind of gives you that top level information. And there's definitely enough information in there for people to put into practice the beginnings of creating a good portfolio. And I've speak to people all the time that have used the book to do that. The club itself, we often have people come from the club and then join Ultimate Guide to Renovation because the club is, you know, once a month you get for 12 months, you get modules that are on a specific topic with specific homework and, you know, really gives you a real deep dive into a specific area of property investing that you need. So we do have people who start with the club and go, look, I really need more than this or I need it quicker. And then they purchase the Ultimate Guide to Renovation. And then we also have people in the Ultimate Guide to Renovation, who've been through the course and have gone, you know what? I just need that monthly touch point to remind me of what to do and to dive deep because, you know, I want, want to do that. So you've probably done what most people do in a short time frame. So the fact that you're overwhelmed is not surprising. But what I would suggest that you do now is put the club and put the book down and just get yourself, you know, completely immersed into the course itself. So module, well you see here module 1. Can you see my screen at the moment?

Yes.

Yep. So module one. There I am, module one, module two and module three. So this is the suburb selection. In module two, Suburb three we get into the suburb due diligence. So we're really getting down on those methods and everything. Module four, we start getting into, you know, that next stage of the actual property. So you know, actually assessing a property and going through and looking and inspecting the property and you know, validating all the information that you need. And as you can see, there's a lot of checklists that we actually use when we're, when we're looking at properties and in our one day workshops that we run where we do pretty much module one through to module four, we actually visit a property with one of these checklists and show people how to use them as well. After we've done the module two, module three altogether. So those who want to get things even quicker jump into that one day workshop. But module five is when we really get into that costings and the finance and the loan approvals and you know, obviously I'm a mortgage broker as well, so I can give you some real insight into what's happening with the changes in legislation and APRA. Actually I've just. What is it? It's 1st of November today and I had an email yesterday from Australian Property Investor magazine, asked me to be one of the experts to say what's going to happen in 2017? So that kind of gives you an idea of how far out when you're reading the articles in January that are going to say, hey, what's happening in 2017? It's usually three months earlier that we're asked to contribute to those articles. So the information is a little dated by the time you get to the magazines. And that's why these Q and A calls and finding out what's happening is so important. So for instance, I think there's an article that went out that's going out of the, one of the magazines this month about the lender changes that I commented on. But I found out very early this morning that NAB is changing their bank serviceability rates on the 25th of November. And that's not public domain kind of knowledge. So obviously, you know, we're scrambling around and they were one of the last lenders to have better servicing than the other big banks. So you know, just, you get access to that kind of information here and on these calls that are is a lot more up to date. When you read it in the newspaper, it's old news. When you read it in the property magazines, it's usually three months old. It's older news.

So Susan, just back to your original question. The the beauty of the ultimate guide to renovation. It is really step by step from start to finish and it's, it's really just a matter of jumping through the hoops as they, as they come up. If you just follow the course and it doesn't really matter how long it takes. So don't feel you're trying. Don't, you know, feel you need to keep up with the videos. You know, module two, for instance, is a big module and sometimes we get feedback that people feel they're fallen behind a bit and then get discouraged. But I don't think you should, you can, you can come back to it at any, any point and do it in your own, in your own time. Most when we first started that. Go ahead.

Yeah, that really does answer my question. I really appreciate that. So I can just focus now and not try and get all through. I thought it might be a requirement to have gone through all the book and your property success club prior.

The reason I wanted to show you these modules is module 1, 2, 3, 4, 5, 6 is really about doing the analysis and finding the suburb. But we know that auction techniques, etc. And then module 7, 8, 9, 10, 11, 12 really gets into the renovating the property. Now we know within six weeks a lot of people, 90% of people in this course are not going to be ready in week seven to start renovating a property. They haven't bought it. This is really where you're probably going to get to the end of module six and move on to module seven from an information point of view. But that might be when you pick up the book midweek as well and continue reading. So don't stress that you're falling behind or anything. You've got lifetime access to these, you can come back. And that's the beauty of this, that when it is relevant and you have found the property and it might take you a while or your borrowing capacity or whatever might dictate that you have to save a little bit more money. When you do find the property, you can then come back to the checklists in module 4 and start inspecting the property and validate from module 2 and 3 that you're still in the right suburb. And you'll find in the workbooks that are in the location masterclass that is made up of module two and module three that, you know, we've got you writing notes down so you can go back to those six months later and go, okay, is this still relevant now? And can I quickly do the analysis on it? So, you know, don't, don't, don't feel that you haven't got a right to ask questions on either.

Do it the way that's right for you.

Yep.

All right, all right, well, thank you very much. I really appreciate your help.

Yeah, no problem. We do get, you know, week 12 people saying, okay, I'm confessing that I'm up to the dot map in week two. Can I still ask you a question? I'm like, of course. People coming through all the time, going.

To be identifying with them, no problem.

Yeah, people do it lots of different ways. We've had, there's some people that go through in real time and they don't probably go very deep on the exercises, particularly in module 3, 2 and 3. And then they get to the end of module 12 at the 12 weeks and then they go back and start the whole thing again and go really deep. So some people prefer to do it that way. Other people, they just don't care about the release of the modules. They go through in their own time, go really deep, do all of the exercises. So it's whichever way you, which you like to work, but you've, it's always there to come back to.

It's interesting. My mother, my mom was telling me this week that in her book club someone actually put their hand up and confessed that they read the last chapter first after the first chapter because they hate being surprised. And she said the strangest thing was 50% of the people in the book club said they did the same thing. So, you know, we know that some people do a high level all the way through.

But you know this, I could never do that.

No, me neither.

But I'm very systematic.

Yeah, me too. Well, look, you know, I spend a lot of time being mentored in, in the United States trying to look at the best practices for adult education. And I know everyone wants everything at once. And it seems a little bit mean not giving you all the modules, especially when it's all the exciting stuff. But, you know, if I have to twist people's arms to understand module one and the importance of module one, I'm going to do that because I just know once you have that clarity on your goal and then you have the clarity on your strategy, then the buying criteria falls out of that and it's so much better for you. So once you've got that, you're very clear and you can do then 80% of the entire analysis online and you're not walking the streets and getting frustrated and six months later going, oh, come back to it in a year, you know, So I know it's a little frustrating for some people, but, you know, I really. I know that's the best way for people to learn and you have access to this stuff forever.

I'm very happy with that. I'm a very obedient student. I will just be doing the natural.

Watch it for you. Scissors.

And it's not.

See, there you go. It's not a stupid question. A lot of people are thinking, yeah.

Do it the way it says.

Bye. Bye. Thank you.

Bye.

Thank you. Bye.

Oops, sorry. Got a couple of hands up here now. So let's try Martin. It's not working out too well, is it? Let's have a go. Martin.

Hey, Martin.

Hello.

Hey, Kite.

You nearly became the presenter then. We were going to watch what you were doing on your stream. What are you up to, Martin?

Happy Melbourne Cup Day.

You too. Did you have a winner?

I had a win on the third.

Horse. Nice. There you go. You got to be in it to win it.

Just a small bet.

Yeah.

I live in New South Wales, so I don't have the day off.

Victorians are crazy.

They are.

They had a day off at Grand Finals. So what's your question, Martin?

Yeah, I've been following your course and I'm just enrolling into the Ultimate Goal Renovation course as well. My question is, you know, when you learn this course and you start to get the. Gain the knowledge to have more confidence in. But what happen if you already have the. Like you already have some property you don't have. Yeah. But the knowledge is not there yet for you to actually do something about this property that you already have. Yeah. So I wonder, how am I going to apply it?

So is your question you've already got properties and you're wondering how the course is relevant to the properties you already have? Yeah, look, it's a really Good question, because it is relevant in so many different ways, I guess. Did you see the video case study and listened to the webinar last Thursday night?

Yep.

Yep. Okay, so you've heard me go on and on and on about pricing disparity. You know, that difference between renovated and unrenovated renovated properties to make sure there's enough of profit there for you to make money. And one of the things that I really encourage people to do, and I really encourage you to do this, and anyone who has current properties in their portfolio is go through these exercises. So goals, exercise in module one and that strategy, assessment of what your strategy is and apply it to your current portfolio and say, okay, does this property deserve to be in my portfolio and is it getting me to my goals in the time period that I want to get there? Because I have this conversation with people regularly and do a property portfolio review and we sit back and we go, okay, so how much growth has this property had in the last 10 years of you holding it 2,4% per year? How much growth? Maybe it was a slow burner and it's about to peak and there's infrastructure spend and things. How much predicted growth is there going to be? And if it's still 2% to 4% a year, that is going to delay your retirement plans by 10 years compared to having maybe an 8% growth a year property. It's so important to understand your goals and the time frame to achieve them and your strategy and then work out, does your current property deserve to be in that portfolio? When you GO through module 2 and module 3, the location masterclass where we talk about, hey, come up with your purchase price and your criteria for buying and have a look at a suburb, then, you know, if you're looking at that suburb and you're seeing that it's got less than 30% renters, you know, the vacancies over 3%, the, you know, yield is less than the median for houses in Melbourne are 3.17, if that's where your house is. You know, all of these criteria for me would be a property that you wouldn't buy if you're going to buy it. So assess your current properties as if you were going to buy them. So I think module one, Module two, Module three, you can directly apply to your current portfolio. And we have people with a lot of properties who have done the course, have gone through and said, this is amazing. Actually looking at my properties in that context. We've had people who have flipped properties or have renovated their own home and We've kind of forced them to go back and have a look as well. And they've looked at maybe the last three years where they've said, I've had the property for three years and it went up by 300,000 and the renovation only cost me 50,000. And we look at the past growth and we can see that the entire growth was the thing that made the property go up in value. The renovation did nothing. So you can actually have a real clarity about your past performance as well, which can be a little shocking and daunting. But the other thing is when we get into that pricing disparity and we get into module five and look at the quick quote calculator and the cost of doing a renovation and we do the numbers behind, you know, if your current Property is worth 600,000 now you're going to spend to get it up to the value of a property that looks and feels like it's worth 750, which is the median for the suburb or what the renovated properties are selling for. You know, can you do that on 60 grand? And. And is there enough profit in there for you to do it as well? Because some properties do not deserve to be renovated. And often what we do is we look at a current property in our portfolio and we go, yeah, look, it's not going to take much and I've already got the property. I don't really have to do the due diligence on the costing or the budget or the time frame, because I'll save that for when I'm going to buy a property and really apply this methodology. And the reality is you should be applying it to any renovation that you do. Use it to budget out your costs, the renovation, use it to then track the costs and the variances and work out whether a property should be renovated. Because, you know, that difference between the renovated and unrenovated properties. If you've got a property worth $300,000 and it's unrenovated and the properties are selling for 330 that are renovated, it's probably not worth your while in putting the money into it, unless it's a maintenance issue or unless there's a renter objection that, you know, we don't have air conditioning, we really need it. So just because it could do with a new kitchen doesn't mean it needs a new kitchen. Does that make sense? Yeah.

Yeah, that makes sense. Yeah. And those property that I have is actually not in my state, actually in Queensland. Some in Queensland, some in Melbourne, but the Queensland one, the One that I really want to maybe apply what I study and bring it maybe do a bit of cosmetic renovation on it. Yep. Yeah.

And whereabouts is that? In Queensland. Where's that property?

Before I join the.

Course.

Yeah the course, I already have the property so I wish if I can wine back the top I would choose it differently. But yeah, already bought it. Yeah, I bought it in Ipswich.

In Queensland.

They don't come at a high price, they come at a reasonable low price bracket with good land content that you can add granny fat. And you can also rent away a lot of houses is clay house and renovate the dam. But recently I've done some checking around the area with some of the builder give really high hope for do a renovation. You do the painting, exterior painting, you might do an interior renovation. They give me a popular 60,000 for the renovation.

And how much is the property worth?

The Property is around 250.

Yeah, that's extraordinary.

Yes. So yeah, to me that, that is a bit high.

Yeah, I think you're right. So you know, painting inside and out, you know, depending on the size of property and location and availability of tradies, etcetera, you know, you might be looking at maybe 4,000 internally and maybe the same externally. And if we're talking about a kitchen, you know, you could often look we have lots of students who buy kitchens off ebay and graze online, et cetera. But you know, a new kitchen, flat pack kitchen, eight grand, you know, you could get away with. And I bought, I think I spent about 1500 on my kitchen package using the Renault save card and you know, carpet, you know, two and a half to three and a half thousand for you know, a reasonable house. So you know, bathrooms are usually the same as kitchens, you know, allow 8 to 10,000 for that as well. And this is just general rule of thumb. But if the median price is 250, we're not talking Caesar stone, we're not talking you know, beautiful hand painted tile tiles on splashbacks, you know, we're talking like a good sturdy property. You know, my thoughts would be that, you know, you could probably get out of that with between half of what they're talking about. They're quoting you. So you know, and that's just, you know, you run those numbers in the quick quote calculator up and you'll see the calculator itself when you get to module five. It's extraordinary. You can, you can start from, you know, if you're a really hands on person who really understands renovation, you're like, you Know builders bog is 9.95 per pot. I want three of those and I want, you know, 60 liters of potential paint up to. I want someone to paint the room at, you know, 80 bucks, 80 bucks an hour or you know, 300 a day or whatever it is. So, you know, it allows you to, depending on your knowledge base, use the tools within that calculator to kind of scope it up. But it does sound extraordinarily expensive to me. Someone's making a bit of money there. You could almost get a box on the back for that, couldn't you John?

Yeah, I reckon John.

John could do a structural box on the back for that and then fit it out for, you know, 20 grand. So yeah, it sounds.

Sounds like a lot. I would. Martin, I would jump on the past mentor calls as well. Lots of descriptions given about renovating remotely as well, using project managers and using rental. Rental managers and all that kind of thing. So lots of information there. Also Facebook group too. Lots of guys have renovated remotely in the Facebook group. So if you post a message there, I'm sure there'll be lots of people that can help you out there too.

And I was just going to say one more thing for you, Martin. Ipswich. I know that Ipswich has come up. There's a lot of infrastructure spend and you know, freeway access into town and all of those kinds of things. So from what I understand, there's. There should be some growth ahead.

Yeah, yeah, I can see the area is. Yeah, a lot of news, A lot of positive news in the area. So hopefully good news story.

Don't spend too much on that renovo. Yeah, yeah, yeah, sorry.

So another question is like if I spend, if I've got a line of credit, if I spend using the line of credit for renovation, are they taxable?

If the line of credit is against your home or even against an investment property and the purpose of the funds and obviously I'm not an accountant, but I've done this personally. But the purpose of the funds is to gain an income and that's the renovation of an investment property. Then the interest just against those funds that are used is usually tax deductible. So once again, check with your cat. But it's the purpose of the funds regardless of where that loan secured against your home or another investment property. Great.

Okay.

Okay. All the best, Martin. Make sure you get involved in the renovator network.

Anyone?

See ya.

Good luck. See ya.

See ya.

Lots of questions being typed in here, Jane. Type in question from Ann. Let's say we start looking for A property and find a property. Will it be possible to send it through to you guys and get some expert advice on them? Yep, absolutely. That's where the Jane just described there, where one was sent through on one of the calls a couple of months ago. So, yep, they're coming up all the time in these calls. So this is the place to do it because we can give you feedback in real time and, and often if it's a house listed at the moment, you don't mind sharing the address. We can have a look through the rooms as well.

Yeah, exactly. So Renovator network. Often a lot of people post in there and say, I'm looking at this one. What do you think of the floor plan? What can I do with it? Other others. And remember, I guess it's where there's hundreds of people within the network and we've never had the experience of someone stealing someone else's property. But remember your buying criteria and your specific goals and your strategy and your timeframe to achieve it is different to everyone else. And we've got people, you know, we're buying in Newcastle and, and there's some degree of oh, should we share the information? And then all of a sudden someone's buying at 750 on the hill and the other one else, everyone else is buying out but Lake Munmore at 500 or something, you know. So your criteria is completely different and, but yeah, you can obviously send those questions through the Q and A calls the last Thursday of every month, 8pm or on the Renovator network. That's where we do those.

Yep.

Great. Michelle, when will module two be available online?

Midnight Thursday night. So 12:01am Friday morning. Get cracking.

David, will this webinar be available to listen to later? We missed the start due to daylight savings.

Yeah, absolutely. We, we record the. The webinars and post them up. And even though this is just a very special one for our.

Yeah, that's me.

Welcome to our new students. This will be up there, as you can see on my, my dashboard here, mentor call archive. You can go back and listen to years worth mentor calls, but that one will be. This one will be up 24 hours, we say. Yeah, 24 hours. Yep.

Kerry, so selling just increases your cash flow. Flipping question, why did you focus on flipping and developing and selling? John? Flipping. Selling increases your cash flow. The terminology that's normally used as capital base rather than cash flow for flipping, I think that refers to when you were talking before about some people like to buy and sell to build up.

Their equity oh yeah, so sorry, I thought it was a question for you. So selling just increases your cash flow? Yeah. So basically, let's just say you buy at 400,000. Now typically, you've heard John Edwards say this. 650, 750 is really the, usually the minimum. What he would suggest is that if you're going to flip to find the pricing disparity within a suburb, you know, that's kind of like the entry price. So 650 to 750, let's say that you do a renovation that cost you $70000, 720 therefore is going to be your, you know, kind of cost in. And, and often when we talk about flipping with a cosmetic renovation. Pull up my little calculator here. And if we said 650, we use a kind of a rule of thumb that said 1.4 times would cover those costs. So we're talking about buying at 650, doing a renovation that only costs $65,000 and getting a $910,000 end value to be able to cover all of the costs associated with that sale. So, and the buying costs, et cetera. So finding the difference within a suburb from 650 to 910 is a lot. But let's just say that you do that, you make $2 for every dollar you spend. You know, you walk, you walk away with say, you know, a 15% profit on that. So 15% profit. So you walk around with, you know, nearly $100,000. And with the funds that you walk away, that is the cash that will go into the next deal. So maybe you can buy a little bit higher with the next deal or put a little bit more money into it. So, you know, it's building up the cash base rather than the cash flow. So cash flow usually comes from income generating assets. So this doesn't actually A flipping strategy isn't an income generating asset. The money in the bank is an income generating asset. Rent is an income generating income that you would get from your asset being your property. So the question to you, John, I think, yeah, is why did you focus on the flipping and developing and selling well, why, why did you move from that, the renovate, buy and hold that you had done previously to the flip? Was it to, to get some equity up to maybe.

Yeah, I had, I started with a. Well, we started with our own place, then we, and then we had a buy rental that was the first investment property and it was, we made money on the renovation but didn't really make money on the, on the property. On the investment property because it wasn't in a great area. This is in rural New South Wales in Orange. And after I think about eight, eight or nine years I'd done you know, renovate and my own places since then and realized that I was adding the. The money through the renovation. And part of that reason that that first hold never made money it's just because I was, you know what's that saying that to a hammer everything looks like a nail. I didn't really. I just cherry picked the bits I liked about property investing with and it was all from a renovation point of view. So if I could make money on the renovation that was kind of all I was looking at. I didn't really get very scientific on the location side of things at all. And then it was a little bit my that that side of things was reinforced in a way that when renovating my own place I could see that it was adding value. And then I did one renovation and it added a whole lot of value. 250,000. Not. Not in not incorporating the capital growth that was just on the renovation alone and decided that I'd just go and do that full time instead of you know working in the. The production company I was working with. So that's how I got into the flipping side of things. And the latest thing in with the. But the. Probably the reason I haven't gone back to buy and hold sooner than now is the. Just the timeframes involved with these. Even the flips are quite long timeframes but.

And to get the deal flow the council approvals alone.

Yeah. And this latest. I mean I really committed to the. These developments you know almost three years ago like about you know just you. It's only. It's a couple of months short of three years so that's basically tied me up for all of that time with these two developments and it's only now that I'm actually you know.

And they've been full time work, haven't they?

Yeah, absolutely. Yep. It's only now in a position to revisit where I'd like to go next. So I'm. I'm personally going to go back to a buy and hold strategy because I think it is the best, best long term and also there's probably a point as you age and mature and get a little bit more risk averse that you just are not willing to risk the farm on every play kind of thing. So that's probably where I'm at now.

And you shared with us last week also that you and Your business partner that you were looking at buying and flipping properties and you're looking in some of Those high end, 1.2 mil, kind of medium price range, eastern suburbs, Melbourne areas, and you're being outbid by developers. And you went and crunched the numbers to find out how the developers could add an extra 200,000 onto what you would buy the property for to make money. And that's why you went down that development path, because you could see that large cash return. But it takes three years to get.

Yeah. And you take a lot of risk. I think development, and this is almost counterintuitive in a way, but because development, you're splitting the block into and creating a higher and better use, you're forcing the equity in a way. And when I think of flipping, particularly cosmetic renovations, flipping really depends almost entirely on that gap between the unrenovated and renovated property. Now you can increase that gap by buying under management market, but there's a lot less of a, of a bumping the property up into the next category. And that's why structural renovations tend to be a better flipping almost. It's a lower risk in a way, but it's a higher technical job to carry out a structural renovation, you know, and doing it your first time is actually high risk. But, but in terms of knocking it into a category up or adding a bedroom or adding an open plan the same way that development does, you're actually forcing the equity up. So in some ways it's actually better. So from that point of view, I actually think I wouldn't do flipping now that I've done development. I think development, now that I know how to do it is a safer way to do it. But both are ones where you, yeah, you put a lot of money on the line and there's the wing can change and you can, can, you can get caught. And it's a matter of how many times the developers that I, even the guy that I got mentored by just factors that in. You know, he, he knows that there's going to be, you know, one in five or one in six where he gets caught a little bit and hopefully it's not too bad.

And, and he's happy to accept that.

And he's happy to accept that.

Yeah, that's because he understands the risk behind.

Yeah, that's. But then again the wind blows the other way and you can, you can come off very well to too. But yeah, there comes, I, I just don't really want to play that game anymore. I'm more, more inclined to Go the buy and hold route and add, add some equity along the way too. Not, not that I won't use the, all of the skills we've been talking about like you know, subdivision and, and boxes on the back and all that kind of thing wherever the opportunity presents itself.

You know, it's interesting. I've got a couple of clients and we have a number of students who, who are interested in that subdivision kind of play. So looking at creating that second block and if you hear the podcast from Matt.

Yeah, it's great podcast.

Matt talks about going. He walks straight through a house and looks out the back and looks at the empty backyard and the guy's going, no, no, the house is back here. You know the real estate agent. So it's interesting. But you know, I took a drive today because I know that, you know the price points that we're talking about, the eastern suburbs there and the 1.2s and I'm to going, got clients doing it in, you know, the Shire in Sydney and you know, they're buying at that price point. It all seems very expensive. But the median price in, in Melbourne now is around 750. And I'm just gonna, Can I, can I do a quick. You're still on a quick sneak peek into what they're going to see in the suburb selector software? Yeah, yeah, yeah, yeah, go for it. Okay, so if I jump over and you guys are going to get this now next midnight on Tuesday night Access. So I've got here Melbourne and I'm saying putting 750 just because I went for a drive today because there's an area that kind of, you know, family, family drive. But it piqued my interest when I went out there and it was Newport and I was actually, let me just say, you know, 10Ks in the CBD around that price point of the median for Melbourne, you know, 10% below and above. And this is all the, the suburbs that come up. And I looked at Newport now 780, Surprise Point. I found it extraordinary how many of the blocks there had been separated.

Yeah, okay, so.

And there was development going on on what I would have say was small blocks, but there was two townhouses on each of those. So it was really interesting to have a look and I thought, oh, I'd be interested to see if they're within like a 10% tolerance of our.

It is surprising. There's one around the corner from me at the moment that would be maybe a 370 metre block and it's just been split. It's extraordinary how they can cram things in.

Well, you look at this, you know, rental yield and I know that it came up, I think on a dot map analysis that we did in one of the workshops in September in Melbourne. But you know, percentage of renters, you know, that's not unhealthy. Sales per year, not unhealthy. Definitely rental yields within that three point. So there's actually some, some really interesting information. We've got vacancies less than 3% and I, at the time, I was just driving around going, this is an interesting place. Vendor discounting, you know, the differences between. What have we got here? You know, look at that. Differences between three bedrooms and four bedroom properties and, and two bedrooms and three bedrooms. So just, you know, that, that alone gives you an idea of the pricing spread of looking at the differences between being able to add a bedroom under a roof line but just the number of those properties that were being developed. And actually if I jumped over to Microburbs, I reckon and I put in Newport. Sorry guys, just going off on a tangent here. But if we look down here at. And this is in. All of this is actually in your.

Module two.

Module two, but subdivision plans. Okay. There's not a lot of information there. So you know, I would have. It looks to me like there'd been done already. Yeah, maybe it's.

Yeah.

But there's a lot of new places going on around there. So I was quite interested in having a look at it. But there you go. So lots of interesting information coming up. Module two, good.

Oh, so we've got some hands up here.

Anthony, I think you just answered my question. Oh, I was gonna, I was gonna ask you about a product called Real Estate Investor and everything you show me there, they do anyway, so it's all good.

Yeah, look, there's, there's a lot of free information available and you'll see in, in module two we go through and we show you and we do a complete analysis that you can replicate and put into your own capital city, even starting from the suburbs like to software down to these websites. But I also a comparable product to Real Estate Investor is Ripe House. And have a look in the bonus sections because we've got a bit of information there that, that we've negotiated a deal basically for our students. It's not a market deal, but what you will find when you go into these suburbs, for instance. So let's have a look at a Queensland suburb because we had a chat about Victoria. We want people to know that we're not State specific. But the information that's available on these suburbs. Where did my little chermside go? Chermside. So the properties available, the typical, you know, type of properties that are available and being able to see very, very quickly within a suburb, you know, what's where the renters live. So I can see the renters are where the yellows are. So this is where most of the renters are. And if I click into this small section. So each of these sections represents around about 200 occupants. So this is the smallest statistical section that is supplied by sensors. The rental density here is 81%, but unit density is 92%. So I could actually overlay that unit density and see that. So this is where you can find out where the owner occupiers are, which is what you would be targeting the owner occupiers for a flipping strategy. So in these areas, but they still have quite high rental density. So this is only 12%. But you have to be careful about this. It looks to me like there's a few industrial areas here as well. So, you know, you need to look at the information. But this shows you all the properties that are on the market at the moment. And this allows you to filter it so, you know, so that you can actually, you know, pick up what type of properties are on the market and what's applying. And they'll go through and do a lot of analysis on those for you and come up with comparable information and appraisal reports. So, you know, module, module 2, module 3, lots more information on that. But yeah, real estate investor. And Ripe House. And Ripe House has got a lot more functionality coming as well. So good stuff. But yeah, but this microburbs.com currently all this information is free. So I know that Luke and his business partners are looking at putting this behind paid walls in the future. But at the moment, moment you can start, you know, getting all of this information free to build up, you know, what's happening in the areas and information about it. So check it out.

Any other question while we got you there, Anthony?

No, all good.

Thank you very much.

Looking forward to modules.

No worries. See you later. All right, a couple more hands up here, Jane. Let's go. Let's try the end.

Hey, Deanne, how you going? I'm good, thanks. Jane and John, how are you guys?

Very good.

Hey, one of our worthy winners of the course. So Deanne, what's your question? It's actually just a really quick homework question. Oh yeah, you know, on the cash flow tracker. So you got. Because I'M trying to get as much cash flow in there as I can. You've got personal cash flow and then you've got another. Next one is cash flow. Mm, yeah. What's the difference? Good question. Let's have a look. Like, you know, I don't like filling out forms too much, so I can. So we've got personal cash flow here. So this is around those personal expenses, et cetera. So this is. What have we got here? So this is the expenses and the plans, and this is the tracker. And this allows you to go through and it kind of replicates what your plan was of what you were supposed to spend, your plan spend, your plan spending for the year. And then this year is actually you tracking what your plan was for the actual. So if you said, hey, you know, so this here you can see, this is a formula. So basically if you put electricity in on the first page and says, say I'm going to spend 150 bucks, you know, this month on electricity, and then all of a sudden, you know, 300 bucks comes in, you put it. You put the 300 in here. And that's actually just allowing you to transfer, track it. Okay, so you have to add it in each month. Right. Yourself. Like it's manual. It's not just an automatic. So the budget is automatic. It will come through from your budget that you've already set for yourself. But the tracker, obviously, it doesn't know what spending. It's not like some of those fancy software that tap into your bank account.

That'd be good.

But they do exist. They do exist. Let me tell you. And the next one is basically helps you kind of track what your savings accounts are at the beginning and at the end as well. So you could actually do some cash flow tracking from your cash flow tracking. But the second one is you tracking it. And as I said, I used to walk around with a little notepad and record everything I spent and then put that into this at the end of the month. Okay, so. So I've got another fundamental question to this then. Sounds a bit silly actually, but I don't even have a computer I'm using, as you probably know from the call, my son's computer. And he doesn't have anything on here like Excel or Word or anything. So if I was to go off and get something for myself or even to put a program on his, I can do it on my phone because it can get free Excel. But what do I need to get, in your opinion, to be able to use what you have on your Course, well, see, most of the checklists, etc. Are PDFs, so they're kind of download workbooks that you can download. And for those people who don't have computers, go to the local library, take a USB stick and some money for your printer and on the USB stick or maybe download to your phone. Like if you create a Dropbox, for instance, for yourself. So you go to Dropbox.com, create an account for yourself. In that account you can have a folder that goes across all of your different technology, go to the library and download the videos one at a time to your Dropbox. As a medium, medium kind of thing, you don't need the high, you know, pretty pictures. Blurry is okay, not blurry, but, you know, not as, not. Not to what on your smart tv, for instance. So you can put it on your Dropbox and then when you're sitting on, you know, having a lunch break, you can actually pull your Dropbox up on your phone and watch the videos there. And the same thing, it's the spreadsheet. The videos I can see. Yeah, it's the spreadsheets and, and with the spreadsheet, exactly the same thing. If you can open Excel up on your spreadsheet on your phone, then put it into Dropbox and I mean, once again, it's kind of a technical workaround, but put it into Dropbox and fill the things in there, or print it out, go to the library, print out the spreadsheet and manually write it in. And I manually did my tracker for years because I wanted to have it with me and walk around, around with it before the advent of smartphone.

The best solution, I reckon, to writing nothing. Writing it down.

Yeah. So, yeah, I did print it out. Yeah.

The other thing I was going to mention is Google Apps or Google Docs. So you can open Excel Documents in Google, makes it a Google Doc. What's the actual word they use for.

Google Drive and Google Docs?

Yeah, I can't remember what they call their spreadsheets, but whatever they call this.

Google Sheets.

Google Sheets, that's right, Google Sheets.

So it's kind of like Dropbox is where you like a filing cabinet, you hold things. Where Google Drive, as John is saying, is kind of like the mechanism that you can convert it and, and you.

Can use it on your son's iPad. That's cause. Cause I use Google Sheets all the time on an iPad. And that works well. Cause I think that's the, the main gist of the question, isn't it? Because you haven't Got a laptop. It's an iPad that. Your son's iPad that you're using, or is it a.

No, no, I'm using a computer. My. My eldest son built the computer from scratch.

Ah, I see. But I have a desktop computer.

Yeah, yeah, yeah.

Okay.

Yeah. And then I didn't put any hardware on there.

Yeah, you know, got it.

Yeah.

Yeah. And there's a couple. There's also a couple of other programs, like open source programs that I can't remember the name of it. Now. There's one that works with Excel. If you. If you Googled free app for. Let's just try free app for Excel. It's called Open Sheets or something like that. So it's one that used to be the rage. No, I can't see it easy there. But yeah, Google's. Google's free Open Office. Open Office. Thanks, Ravi.

Open Office. Oh, yes. That was it. I was about talking about that. You know your. I try to listen to your ipods. Yep. Podcasts and from itunes. Yep. I will get up with this podcast. And I don't have a Apple phone, so I couldn't. It wouldn't.

Okay. There's some other. There's some other workarounds there.

Yeah. I try to do a conversion thing. Yeah.

But I think the. If you're on a. If you've got an Android, if you've got a smart smartphone.

Yeah, I've got a Samsung.

Yeah. So if you go. There's one called Pocket Cast. If you go into your App Store. I don't know, whatever your App store is, like Google Play or something like that, or Samsung's got their own one, I think, and you just do a search for podcast. There's a whole bunch of different apps that will. You can download to your phone that will play it and it'll just. And there's a couple there on the actual website is soundcloud and what was the other one?

Stitcher.

Stitcher. Yeah, they're both. Both of those are available on Android. So you might go try again. Yeah. See if you can download those in your app store.

We said it wasn't a tech support question, but we can even answer some of these sometimes.

But also you should. No, no, you're fine. You should be able to get Apple podcasts on your Android phone, though. You should like via itunes.

Okay.

So that.

Okay.

Yep.

All right, I'll try again.

And they won't even try and steal your soul.

So they say.

So they say.

Good. Thank you. Thanks, guys.

Bye Bye. All right.

How clever is that, son? Built the computer from scratch.

Open office. Yeah. That's really good. Yep. Thanks. There was a couple came in. Thanks, Rowie. Thanks, Jarrett.

Jared's got a question. There's city data to suburb selector. Oh, we haven't done all the regional areas yet, have we?

No, the main thing is we can't get decent data for it, so it ends up just with a whole bunch of rows saying snr, snr, snr.

Statistically not relevant. Which sometimes we get through things like vendor discounting and vacancies, but. Which is frustrating. But, yeah, it's. You know, we're trying to make it in the first course in 2012, we had a spreadsheet and we had a video on the 30 different websites to go to fill your spreadsheet. And we got to module three, and everyone's saying it's all too hard. So we worked really hard on filling in the spreadsheet every month and now we've come up with this and we know it's not perfect. Perfect. And sometimes you just have to go back to the. The back of the magazines and the websites we suggest and get the information. But yeah, yeah, we're trying our best.

Now, David, I think I may have just not raised your hand before. Put down your hand. But let's just have a go anyway.

Unmute.

You there, David.

Hi. This is Jenna, Dave's wife. David. Hey, Jenna.

David.

Hello.

So we're excited to do your course. We do have a question, though, and I'm not sure if you've answered some stuff about goal setting yet, but what we were really wondering was how to set realistic goals so that we're not overestimating ourselves and becoming stressed and overwhelmed and discouraged, but also not underestimating ourselves.

Great question.

It is. It's kind of like, how far do you stretch yourself? And now I'm not sure. Did you see me work through this calculator, the portfolio calculator, with Kira? I might have got the fashion of it. Yeah. Yep. You guys had the daylight saving.

Yeah.

Yeah. So just a quick have a look at the replay tomorrow. But it's a really good question because a lot of people worry about that and how many properties, for instance. So, you know, let's say you want a $50,000 passive income in 10 years time. So. And you know, these are the criteria that we've put in around inflation, et cetera. So $50,000 is equivalent based on inflation, buying power of 64,000, which means that you'd be needing $1.2 million in the bank, which meant if you Had a portfolio of $2.8 million and you sold them all off, paid capital gains tax, paid selling costs, paid off the loans. You could put 1.2 in the bank. That means that you'd need around about 1.5 million in properties. So, you know, we're talking about four, $450,000 properties. So the reason I created this calculator was that often people, people would say that, you know, they wanted a considerable amount of money, but they didn't know what that was equivalent to now in properties in the next year or three. So, and that kind of, if that your borrowing capacity and go and do a borrowing capacity or your buyer, your mortgage broker or your bank says, you know, this is what you can kind of afford for this property. And then the next and the next. If that's not possible, then what you might do is say, well, what happened if it's, you know, 14 years, for instance, you know, can I, can I wait 14 years? Well, it's, you know, it's a million bucks. Is that reasonable that I can have two $50,000 properties, you know, purchased in the next couple of years? So the question about goals and bringing it back to the now I think is really important. And I also just touched on the fact that a lot of people overestimate really what their desired income is or what they want and what they can really live off. So, you know, going through and looking at what you really need to live off might be an exercise as well. So there's one thing about saying, you know, is this possible? And it's another thing around saying, well, in actual fact, maybe I can do better with, you know, the capital growth. I'm really going to target a higher, higher growth areas. And you can then see very quickly it makes such a big difference just by having over those 15 years, just that little 3% per year difference in growth. So, you know, that's why we spend so much time talking about location.

So, you know, spur you on a bit on that suburb search.

Yeah, and it's realistic when you, and we're kind of saying also, you know, when you get to the goals module, don't be fearful of going forward. If you can't work out your strategy, go forward and you know, go through the location masterclass in your module 2 and 3 and with maybe one strategy, which is buy, renovate and sell or make it buy, renovate and hold and seeing, you know, doing the suburb due diligence and the exercise, because you can then apply that for the other strategy as well. But so you don't have to limit yourself by. Well, I don't really know what my goal is, but yeah, I guess it's important in having a starting point, understanding what the goal is as a. I want a passive income of, in this period of time that it really dictates based on that risk profile of what the strategy is. Is it developing because you want to be able to achieve it in five years or, or is it buy and hold because you want to be able to achieve it in 15 years? And then from that comes your buying criteria, which is, well, if it's buy and hold, I need an older style property. You know, I want to have capital growth of over 7%. I want to have a rental yield of over 4.5%. So that buying criteria then allows you to do 80% of your investigation online before you even hit the streets. Thank you. Does that help? Yeah, no, it does. Thank you. I think we just because I missed the calculator info, that's probably. That would have helped answer that question before. Sorry. No, that's okay.

The calculator helps you find out what properties in now's time you're going to require to get that passive income in 15 years or whatever.

Exactly, exactly. So you can. Rather than going, oh look, you know, I want a 200,000 income next year, you know, rather than. Is this, is this feasible? Is it possible? Has anyone ever done it before? You know, one. Over a thousand people may have done that, but it has a whole lot of more risk associated with and you know, $200,000. You need 4 million bucks in the bank earning a 5% to get you $200,000. So you know, is that possible for you to get, create $4 million worth of equity in a year's time? Well, you're going to need a bit of money to, to throw at that to create it. And you know, for the normal people like us, we don't have 10 million to throw at something to create 4 million. Now we're talking about starting from, you know, where we are and creating something incrementally or having that growth allowing us to increase the value of our portfolio.

Very good. Thanks very much.

My pleasure. But go back and listen to the beginning of the, the call tomorrow because I think that might give you a whole lot more clarity as well. Thank you. If you have any more questions, jump into the renovator network because you know, we'll, we'll be in there answering questions and there's a lot of people in there having probably have the same question as well. So don't feel that it's silly.

Good on you guys. See ya.

See ya.

Got another person off. Michelle's got a question. Please reassure me that I will be able to start at a significantly lower price point that has been spoken about thus far tonight. Currently not able to access large borrowing capacity due to single income and some IPs already owned with loans. Hoping to start small and build up with equity produced through renovation rejuvenation.

She used one of the R's of the. She's read the book.

There you go.

Oh no, you probably read the module. Look, don't, don't be disheartened Michelle. I'm throwing numbers around as examples and.

You know we had the 400,000 passive income amped things up a little bit.

Yeah we started with right at the top of the hour but then we talked about oh gosh, was it Anthony who had the $250,000 property in Ipswich? And you know, and I know people who are buying nice ninety thousand dollar properties in Cairns for instance which you know, I'm not recommending but I'm just saying, you know, we have people buying at all price points in the course.

And I think we see them in our workshops too. The suburbs come up like particularly in the last Queensland one. There's some good, cheaper suburbs. Yeah good suburbs at lower price points.

So this is the one day workshop that we do where we kind of do module 1 to 4 within the whole one day for people really want to supercharge it. So and it was interesting when we did the Sydney and the Melbourne workshops in February and then September in that six month period that we did Sydney to Sydney, Melbourne to Melbourne, there was such a difference in the suburbs that came up but we only ended up with five to six suburbs with each that really fitted the general criteria that we implied which was based around the meals, median values for the cities. But when we did Brisbane we came up with like 15 suburbs and we're doing, we're doing a workshop in Brisbane. I don't think we've even announced it yet, have we? On the 26th of November in Brisbane. So, so that's just a 10 person deep dive. Get everything done, walk away with the dot map and everything done done with you and the inspection of the property. But you know I'm really interested in seeing the six months, how those have, have changed and those priorities points, you know and that's an interesting. We go up to microburbs and we go into the blogs because I want to be realistic here. Here's My blog that I did with the microburbs guys, because I said, well, you guys got all these analysis tools. Tell me exactly what the median prices are are because and how they represent where they are in the city. So, you know, we talk about the median price of a million dollars. In Sydney, well within 20Ks, the median price is 1.35 million. In Melbourne, the median price is 750. Within 20Ks, you know, probably 15Ks, you're hitting that. Brisbane, we've got a median, you know, so if your price point is around 380, you're 40k is out.

What.

Which is, you know, when we're talking about 40Ks out, we're getting up to that Deception Bay area that, you know, we're really starting to find a lot of growth potential that is coming through on those and Caboolture areas as well. So, you know, we're not saying that nothing exists. And then, you know, Perth, well, unfortunately, Perth is still seems to be in decline. But you know, we've gotten down to these people price points. But, you know, we do have people buy the, the difficulty. A lot of people we saw tonight, a lot of people have a flipping strategy which is, you know, buy, renovate and sell. And it is hard to do that and cover all your costs, capital gains costs, regardless of any funky company structures with, you know, company tax rates, etc. It's still hard to cover the cost at a lower price point. So, you know, often those people that we've got, you know, bottom, buying the $250,000 property or who did we have in the webinar the other night, $180,000 property that they had purchased. One of the people on the video, I think he bought it for 180,000 and he'd done a renovation, had another guy in Ballarat who'd bought a property, you know, and it was really below the median and was really.

It's often the, often the way you do that is either buying well or getting that twist. So I think there's a lot to be said just for perseverance when you're purchasing, and we've discussed this before, but you get so many. It's like you knock on so many doors and you get slammed in your face and then eventually one gets opened. It's a bit like that with property deals that if you search long enough and hard enough, you'll get a good deal, but it takes a, a bit of. Bit of effort. And that pricing disparity, you can overcome that in two ways. One, finding a suburb that's got that big stretch of values which is naturally higher in the market at a higher price point, higher median, or you can buy under market just by either seeing a higher and better use than that everyone else doesn't see, or getting a good deal by being in the right place at the right, right time.

I was just looking at. It's this one, I'm pretty sure Peter, who put his video up on his renovation that he ran. Oh, yeah, he bought it for $180,000 in Ballarat. And.

Yeah, that was a good one, wasn't it?

It looked. It looked ugly. You know, really ugly. In actual fact, like, this is what it looked like beforehand, and he saw the potential and he spent the money on it. But, you know, don't. Don't be discouraged, Michelle. You know, I'm throwing numbers out and around the media, but, you know, every. People within the course are buying at a lower price point and seeing opportunity where others aren't. And the other thing is, you don't always have to renovate straight away. You can renovate money in the bank. Yeah. Renovate later. And I shared an example of a property that I bought 10 years ago that I renovated last year. So, you know, sometimes you just don't have the money to do that.

Gian says, what if you want to buy two, flip, but live in it for a year? I think that obviously there's complications once you do that several times with the tax office, and you can get caught out that way. And we certainly can't give any advice like that because we're not accountants.

And what John's referring to is if you live in a property and you own the property as your home, then there's usually no capital gains tax that you have to pay, which is a cost, and it's usually 100% of the capital gain if you sell within 12 months and 50% if you sell after 12 months.

Yeah. So the way people get around that is they. They live in the house and. And they. You do that so many times and. And you might get into strife. But I still think in terms of the property ladder, that's a great way to do it, to live. You know, to move into a house that needs some work to. To renovate it and then sell it when you're ready down the track. It's a really great way of. Of building that capital base. A lot less riskier than flipping a place that you don't own or don't live in. So you've got your living costs, plus you're paying for the holding costs of the property plus flipping, you lose basically 5% in the transaction through the transaction costs. And you've got to do it in a really tight time frame. So I think it's a great, great way to do it. A lot less risky and yeah, hopefully a way to minimize some of those taxes as well.

Absolutely. And I think, I mean, you know, I shouldn't say this, but I'm sure there's a many successful, shocked property investor goes, I can't believe that dog box I bought for $600,000 is now worth 1.7 million. And you know, all those that say, you know, the median price in Sydney back in 1970, when I was born. Yes. I'm turning 46 this month was 12, 20, $19,000, you know, and I'm sure people in 1980, you know, were shocked that their property was worth 83,000 then, you know, in 10 years it had gone from 17 to 83. So extraordinary, extraordinary numbers in that period of time. And it is incredible. You kind of get shocked by it. But prices keep going up and we can't put the bank on that. But no, someone's got to live somewhere.

Right. But it always seems expensive at the time too, doesn't it, when you buy.

I was shocked. I was like, how could I ever spend 600,000 on a property because I'd only spent 400 previously kind of things.

Yeah, that's right. Benny's got a question. Have you heard about trading, flipping as trading stock, therefore income tax rather than paying capital gains tax? So, yeah, that's, there's lots of need to talk to a really good property accountant. And there's, there's, you know, big differences between an average accountant and a really good property accountant. So I'd, I'd do your homework and speak to them. We can't really speak to you about that without getting into strife and we're not really qualified to anyway. So you probably wouldn't want to listen to what we say.

No, I wouldn't.

But yes, there's all sorts of ways to deal with that, but it's pretty controversial. And I would seek out the advice of someone who really knows what they're talking about.

There's a lot of people said they're not what they're talking about. Yeah. Yep.

Oh, oh, Michelle's got a hand up now. Sorry, Michelle, would you still like to chat? I didn't see your hand there before. Sorry, I answered. Let's, let's have a go. I'm doing this.

It's a fun Down.

We're doing this all night. Okay. Michelle.

Hi. How are you, John?

Yeah, very well. Good on you for hanging.

Thanks. Tagline long. So, Michelle, did I help out with your price point question? Yes, you did. No, that was good. Just having some properties already as we go along through the course and I get a bit more information. Just had a different strategy but it's not quite getting me where I want to go quite fast enough. So I'll look at those and work out whether. So they're worth keeping. They're both newer properties, more for depreciation on the properties and they've been doing okay, but they just haven't gone up in value quite how I thought they might. And just a restructure of life over that time as well. So having a single income, you're not looking at $650,000 properties straight up. Be nice to look at those a bit later. Look, reach out to people in the network because I know there's some single, single people out there who've had a change of life and you know, got the kids and don't have that second income now. And there's, there's a whole conversation going on about that. But I know that we've got a lot of people within the network like that as well. So you're not alone. And I guess the other thing I was going to say is obviously this may not be relevant to you, but it might be relevant to other people listening is that sometimes you, because of the apparant ASIC changes and maybe changes to personal circumstances, you can't borrow more. But that's when you go back to your current portfolio and do what I did recently, which is just go back and look at the portfolio that I have, assess whether they should stay in the portfolio or not and then assess if there's opportunity to renovate those properties or not. And the other thing is if you've got these newer type properties that were bought on one strategy in areas that aren't performing and may not have any indication that they are going to perform in the future. You know, go back and look at, I think it was Anthony again. You know, look at the portfolio you have and see if they deserve to stay in your portfolio because they could be eating up your borrowing capacity. Yeah, that's what I've been thinking tonight. But I'll just need a bit more information from your course before I don't sell, don't sell on this alone.

Get a few more modules in.

Yeah, exactly. All good. Oh, good. I'm glad we could help. Thank you very much for that.

Good. Thanks, Michelle.

You know how we said this is like an hour and a half? Q and A. Have you seen the time?

I have. I have, yeah. But we have got through all the hands finally.

My goodness. No question unanswered here.

Yep, there we go. Yeah, that's. That's.

Has anyone got any further questions that we can. We can help out with? Just looking for hands.

No more hands. I reckon we're all good.

Okay. Don't want to. Don't close things off too early because we just love chatting to people, but.

Too early. You're like 45 minutes over.

I know, I know, I know. Have a chat.

These people are trying to get to bed.

This is. My husband said what time you'd be home? I said about 10:15, 10:30. Maybe we'll make it. Well, look, John, how about we wrap this? I'm. I'm so glad everyone kind of came out of the shell and started asking questions. At the end, we find that. And sometimes we have to fill in conversation for half an hour until everyone does, but eventually someone feels sorry for us and wants to shut us up, so we. We get to answer questions. So take that to the bank for the last call in November on the last Thursday, 8pm because if you've got a question to ask, jump in and just ask it. And as I said, don't be shy. Get on that renovator network because, you know, we just. We really want you in there and we want you asking questions, you know, if you're not in there at this stage. And you know, sometimes there's funky email things that happen with Facebook and PayPal and our network emails we have for you. So just go to janealtimateguidetorenovation.com and ask the question. And remember, we do have that number that we can never remember. I think it's 1376 triple 1 9. I'm gonna go with that. I can tell you I'm gonna go with 1376 triple 1 9. Oh, my goodness. How good's that? So if you can't make the call the last Thursday of the month, please, you know, leave us a message and we'll play your call. We know we've been saying this for three years and we've only ever had one person leave us a message. But we religiously listen just in case you do. Midnight on Thursday night, module two will become available, and that's when the work really begins. Now, there is the dot map that we go through, so we'll be sending it out an email in the next day or so just giving you a heads up to what the map is and some places that you can go and get that map. And the dots that we talk about. We've had people photocopy their Gregory's. We've had had people, you know, put to tape. You taped together a council map, didn't you? With sticky tape?

No, I got someone on Odess to to stitch it all together on Odesk.

Okay so Odesk is kind of like Fiverr V V E R. I printed.

Out, I got the council thing and downloaded a bunch of little PDFs of the showing all of the heritage areas because I wanted to make sure I knew where they were and then had used that gotta stitch together.

So you know, if you don't have the cash available, there's ways as well. And we've got people who've used, you know, just had it laminated and then people who are using dots from the local news agency. You can use the special translucent dots from the map place but don't let any of that hold you back. So get into module two and module three Midnight Thursday night they will be available. Look, it really goes deep into the systematic narrowing down of a wide list of suburbs into the short list of three to suburbs. And it's kind of like taking you on a detective journey to discover the best renovation suburbs that match your specific criteria. And if you have properties already in your portfolio, I really encourage you to put those through the workup of this analysis too and see if that suburb deserves to or that property deserves to be in your portfolio. But this is an extremely important module. I really look forward to your question questions in the renovator network and on the end of month call and yeah, thank you so much for your contributions tonight. And here is to your property success.

So yeah.