I have to admit it – l'm property crazy….( you'll soon see why)
I have made millions and most of has been as a totally lazy property investor.
….or better still a “chicken property investor”
Here's a typical example….
In 2001 I bought a single front in Richmond Melbourne for $238,000
….got it valued in November 2010.
The valuation came in $825,000
Wow… that's a $587,000 capital gain in 10 years.
Average that out and it's $58,700 per annum tax free (lm never selling) for the last ten years.
No renovation… No add value…No money spent…literally buy it and hold.
You might think that this is a once off and fluke…I've got lots of other examples like this personally and lm sure that you might know a few people with similar stories.
This is what l call the “chicken property investment strategy”
Why “chicken” you may ask?
Well l sweated on the decision to buy…should l??? shouldn't l??
What if real estate prices fall?
What if l can't find a tenant?
Now back then l was looking at other deals that l could have bought, but they involved renovations and getting my hand dirty…
So l chickened out and bought the one that l would have to least work to.
Looking back on it my strategy was simple and easy…
Buy well in an established area with a 20 year history of average 6-7% annual capital growth and wait…
Don't know why more people don't do it….it really isn't that complicated.
You know l've come to realise most individual are risk adverse…meaning that are not willing to take to many risks when it come to money.
And the reality is you don't have to.
….any one of you could have bought the Richmond property if you had some money saved or equity in your home and the best part is that you would not need to leave your day job.
If fact you can use your day job and get rich.
Yes that right.
Your day job can be your best mate when it come to creating wealth…for one thing the banks love you and finance is a big part of the wealth creation puzzle.
Too many investors want to be property pro's from day one and at the end of the day never get started with the most basic of investment stategies.
They think that their day job is what is getting in the way…the fact is when you start out in investing your day job is a huge asset to you.
Too many wannabe investors under-estimate how valuable the old day jobs is.
Here's another quick story that l want to share with you.
I've got a good friend of mine who over the last 15 years has literally bought and sold over 200 million dollars of real estate…
He's what you would call a full time developer.
Now, not the kind that does the big building in the city or the estates.
His niche was and still is refurbishing the old 70's blocks of flats…
Today he sits on a portfolio of around $20 million totally debt free (he is only 44 yrs old).
Earns about $750,000 in rental income.
I asked him what would he do different (if anything) in his 15 years of developing?
What he had to say was really eye opening for me.
He said “Jon l would should have done only 30% of projects and never sold a thing…my net worth would have been about $60 million today and that would have been game over….less risk, less headaches and my passive income triple what it is today- so much more.
…Jon, buy as much as you can…BUT NEVER SELL”
Wise words from a property pro….
Ok you might be thinking that he didn't just buy and hold, he got in there full time and added value…yes that's true.
If you want to build a $20 mill empire in 15 year (debt free) you do have to become full time and take a few risks…but if you don't you could end up with a $10 million dollar empire in 10 year being part timer.
That's how l have done it and believe me l have made lots of mistakes a long the way.
The secret is to get going… get started…enjoy the journey.
Be a chicken real estate investor and see what happens in short time, you won't regret it.
Signed with Success,