Income Resource Club > Property

 

How to Become
a Successful Property Investor

 

Believe it or not in Australia we currently have over 1 million residential property investors yet less than 550,000 people have achieved what we would consider financial freedom. What is even more compounding is that of these 550,000 people most are not residential property investors. Their financial freedom has come through successful businesses, shares and the like.

What this demonstrates is the major proportions of residential property investors do not become financially free. When we look at our membership base, they are almost 100% residential property investors and developers; the above statistic draws an interesting but accurate picture.

Question Mark

But why?

To find the answer to this question, we have collated the ideas and strategies of experts and observed those people who have achieved financial freedom.

 

If you would like to receive Craig Turnbull's ebook "How to Make More Money in Real Estate" plus 4 other gifts valued at over $147, click here.

To gain access to more ebooks, book summaries, audio and video interviews on property, try our $1 membership test drive offer.

 

Real estate for sale

Having studied successful property investors we come up with 3 different types of systems that need to be mastered in order to be successful and become financially free:

  1. Money Systems – your capital, cash flow and finance plan
  2. People Systems – your team and self management
  3. Property Systems

In the opinion of our Expert Property Team and Contributors there are generally two different types of residential property investment strategies:

  1. Passive (or defensive) strategies and
  2. Active (or offensive) strategies.

Passive (defensive) strategies provide the investor a standard return for a nominal degree of effort and are generally suited to someone with a standard risk profile. They require a typical deposit of (3%-20%) finance levels (80%-95%) and return capital growth of (3%-10%pa) with a yield of (2.5%-8%). These types of strategies include:

An active (offensive) strategy provide the investor a higher return but in turn involve a greater effort and usually require some form of “creative” opportunity and is more suited to the seasoned or educated investor with a higher risk profile. They usually involve a creative deposit of (<3%) and finance solution of (>97%). The benefits can often include instant capital growth of (5%-25%) and a higher yield of (>8%). These types of strategies include:

Renovation

Development

Unconventional strategies

 

WOW there we have it... Fifteen property strategies for you to consider each displaying unique characteristics with no one specifically better then the other. Educated investors can make good money out of all of these strategies.

The question is: which one suits you? Do we go for a Passive (Defensive) or an Active (Offensive) strategy, which is going to be more effective?

From our research we find the best piece of advice we can give any investor is that….there should be both in ones investment strategy or property system.

First and foremost you should always have a defensive strategy in place as the core of your overall investment plan. A defensive strategy will provide you with results that can be predicted over time – you are more or less guaranteed not to lose. Incorporating this type of strategy into your property system will allow you to become less attached and more consistent. This will also allow you to make better use of your TIME. For any investor this should be a major consideration.

Secondly, offensive strategies should only be at the right time and place. If you are starting out with little or no cash or equity, you could start with more offensive strategies to build your equity base and master one strategy first. Our advice is to become focused on one strategy initially and become proficient at it. This is your best path to making some serious money before becoming too diversified and defensive.

A word of warning though. The time to consider taking on an offensive strategy and seize the advantage of an opportunity is only when you can be sure it will not have an adverse affect your overall investment stability. When and if your time does come, don't hesitate to speak to your Income Resource Club Property and Finance Team for some practical advice before taking the plunge!

At Income Resource Club we aim to support our members to develop their own property portfolio using our property expert team as well as out property expert contributors.  This gives members access to experience, tools, techniques and personal support.

 

If you would like to receive Craig Turnbull's ebook "How to Make More Money in Real Estate" plus 4 other gifts valued at over $147, click here.

To gain access to more ebooks, book summaries, audio and video interviews on property, try our $1 membership test drive offer.

 

Property Units

Members of Income Resource Club can access thousands of articles, hundreds of hours of audio interviews, book summaries, videos and lots more which includes over 25 different property experts and over 50 printed interviews, books, audio interviews, video interviews, across all facets of property investment.

You also gain access to our committed property expert team and contributors and access to a network of like minded property investors that can express your path to financial success through Property Investment.

Our expert property contributors cover areas such as:

 

Meet our expert property team

 

Linda Hunt

Linda HuntLinda is passionate about helping clients learn high quality financial literacy skills to allow them to be in full control and be able to make educated & sound investment decisions to assist them with their wealth creation.

They have run a Melbourne based investor support group for over 7 years.

They have a comprehensive “Financial Toolbox” of many exclusive investment products:

 

Rod Paykel

Rod PaykelRod Paykel is a qualified financial planner with more than 16 years experience specialising in setting up SMSFs and insurances.

He is also involved in teaching financial literacy in a 12 month mentoring program and option trading.

Rod considers himself a pro-active investor. He is actively involved in a wide range of investments, which include property acquisition, stock market trading and running his own businesses.

 

 

 

Craig Stow

Craig StowCraig Stow is a Director and Regional Manager of RJ Sanderson and Associates - Public Accountants which have 6 offices across suburban Melbourne. The Company is recognised within the profession as being one of Australia’s leading accountancy firms. It specialises in all types of taxation work, small businesses, self-managed superannuation funds and structuring property investments.

Prior to merging his business with RJ Sanderson and Associates, Craig successfully ran his own Sole practitioner practice called Prompt Business Centre from 1996 until December 2007.

Craig Stow is a seasoned and passionate property investor and developer. His unique understanding of the relationship between property investment and tax makes him one of the few accountants in Australia who truly understand how to structure property investments to minimise tax and maximise asset protection.

 

 

If you would like to receive Craig Turnbull's ebook "How to Make More Money in Real Estate" plus 4 other gifts valued at over $147, click here.

To gain access to more ebooks, book summaries, audio and video interviews on property, try our $1 membership test drive offer.