No doubt you will have heard about using equity to build your property portfolio. But just what does this mean?  Here are some general ways accessing equity can work.

You might already own your own home or an investment property that has increased in value. You can use the equity to buy further property, without having to sell your existing one.

For Example:-

Lender A is your current lender for your existing property. You apply to them to borrow any available equity in the property up to 90% of the value, as a line of credit (LOC). Obviously this is subject to serviceability.

A working scenario
Your value of your property comes in at $300K.
90% LVR x $300K = $270K
Minus your current loan of $180K
This gives you $90K in equity available to borrow as your line of credit.

Then that $90K LOC is like cash that you can use for purchasing your next property (not cars, boats, holidays etc though) i.e. deposit, stamp duty, legals, etc……..and you only pay interest on the funds as you draw them down/spend them.

$90K LOC could be utilised as follows:

• If you were paying a 10% deposit on the next investment property, and the purchase price of the new property was around $300K then you need $30K deposit + stamp duty + legals = approx $46K

Using the above example – $90K LOC – could potentially buy 2 properties of $300K value, or total property valued at $600K.

VERY IMPORTANT TO NOTE:
As the LOC is like cash, it is advisable to go to another lender (Lender B) to get the 90% loan for the new property. This helps prevent one lender holding all your equity and the cross-collateralisation of your properties – meaning you hold the power. You can therefore access your equity easily in the future or sell your property without the red tape that lenders often throw at you!

In theory, you could have multiple properties all with different lenders, and go through the same process each time there is available equity. It just means you end up with lots of small LOCs. You can put the value of the LOCs together to be able to purchase a more expensive property if you want.

It’s important to make sure you have a buffer, so if your safety net has been used up, then some of the LOC will need to be put aside as a buffer to manage any shortfall on the investment properties.

If you sell the original property instead of getting a LOC, you would potentially end up with less in the hand compared to what you could achieve through getting a LOC because you pay agents fees, possible CGT etc, BUT it’s cash – there’s no interest to pay on it, whereas there is on a LOC. You would have to determine whether it would give you enough profit to actually do anything useful with. Both options need to be considered each time you go through the exercise.

If you wish to find out more about how you can do this – or about your options, I would love to meet you at one of my next events held in Cronulla or Wollongong. Find out what you can achieve and get your money working harder and faster for you!

In today’s technology age, it’s almost physically impossible to buy property TRUELY sight unseen – unless you deliberately decided to close your eyes when you research.

Many investors (when I begin coaching them), at first cringe at the thought of investing in ‘sight unseen’ because they have a conditioned belief that they need to ‘touch and see the real thing’.

However buying site unseen is a common practice for hundreds of sophisticated Positive Real Estate clients – however they have learnt some invaluable tips and have been educated on what it takes to get it right! Nearly every property has photos available! There’s Google Street view, there’s the Real Estate agency photos, plans, artist’s impressions and even photos from the Property Manager. So even when we say site unseen as such, it’s very hard to completely NOT SEE ANYTHING when buying a property.

Now this method of buying is very different from seeing the real thing and being able to ‘touch’ it, as the emotional component of buying a property is so hard to overcome.

If you are buying your own home then I’d suggest that you need to physically SEE it. Why?  Cause you’re gonna live in it.  And you may as well be REALLY happy and comfortable with your decision of the layout, shape, size, etc.

If you are buying an investment property though, I’d question the need to HAVE to physically sight, touch and feel the property.  As a property investment coach, I often remind my clients that they are investing. Investing is a business so the focus is on the RESULT of your investment.

Make your decision based on the numbers, the financial and lifestyle benefits that you will receive.  If the house is pink with purple poka-dots – do you really care?

Sometimes investors carry around ‘baggage’ of a location as well.  They feel that they would “not want to live there” or that the area may be “a tad run-down”.  Again, if you are getting the return you are after then really….who cares?

Buying sight unseen requires just the same due diligence as seeing the property.  Research and analyse the options just as thoroughly as if you’d physically seen it.  Many people buy shares on the stock market and I am pretty sure they don’t go and physically inspect the company before they buy.  They look at the numbers, the PE ration and the company prospectus.

Real estate is the same.  Take out the emotion and understand your strategy and the result you want from buying the property.  If you can’t physically see it, that often indicates you may be some distance away. So get a team on the ground to help you with your finances, property inspections, tenant inspections and site reports. Finally – be OK doing it from the comfort of your own home……and you will open up an array of opportunity for yourself than you ever dreamed was possible!

I have hundreds of clients who buy site unseen investment properties. They buy based on crunching the numbers, doing their due diligence and research and I help them every step of the way. Many of my QLD based clients have numerous interstate investment properties – who are now extremely comfortable buying site unseen deals and have an extremely diversified portfolio and sound wealth creation plan.

Step outside your comfort zone….and the possibilities are endless! Remember one of the biggest mistakes too many investors make is thinking they have to live around the corner from their investment – they feel comfortable and it’s what they know! There are so many mistakes that come along with investing like that! Feel free to come have a chat with me and I will explain why at our next Property Investor Night.

Who has ever had a conversation with someone either it be your grandmother, kids, or your boss where it has left you so depressed that your where forced to eat chocolate and talk to the dog because he was more entertaining?

I’m sure its happened to you numerous times……. or maybe you’re the one depressing people with your bleak outlook. From what I have learned over the past five years of coaching and mentoring clients in property investing (some who are very successful property millionaires) is to respect the POWER of words. I’ve realised that words are the fuel to our brain – our greatest asset……….and our greatest liability.

By not respecting the power of words, we have denied ourselves the power to change our lives.

As a mother, daughter, sister, property coach, mentor, friend etc,  I am so very concuss of the words I speak not only into my life but the peoples around me.

I have many amazing clients but there are two recently that have inspired me not just with there words but also there passion.

Their Story

This young couple are married with no children and are deeply in love (no this is not a love story but it absolutely feels like it when I speak to them). He’s a bad boy turned good; who was pretty much raised on the bad side of town and turned his life around. He went to university and became a teacher and married the love of his life, who is also a teacher. He now works at one of the toughest schools in the country. One of those schools that all the so called “bad kids” go to; where his life is threatened most days.

Now the first words that come out of my mouth is, “Are you being forced to work there?” His answer was quite simply “NO!” Now I am in a small bit of shock as he explains his reasoning behind it. The next part of this story is what really got me with these guys. The words and language these guys use is a thing of beauty……and it should be called “Wealthy Language”.

He explains, “We want to transform and rebuild these children’s lives; we want to build a property portfolio so that we can create the life that we want, so we can donate our time to the things that we love. How can we do this and when do we start?”

These guys have now purchased 2 properties and are onto their third.

The point to this story is ….property is just the tool to enable you to do what do you want and follow your passions.

Wealthy Language

1. I will build and create.

2. I want to retire early so I can do the things I love.

3. I can be whatever I want to be.

4. I am consistently creating opportunities and open to listening and willing to learn.

Poor Language

1. I’ll never have money! (Nope you wont!)

2. I’m not even interested in money. (Ohhhhhh pleaseeee, if I gave you a free $100,000 would you now be interested?)

3. Won’t the government look after me when I retire? (Good luck with that one; the average Australian is going to have to work till they are 70 to achieve an average retirement.)

4. It’s all too hard or complete BS!!! There is no way I could do things differently – I am doing everything the best way possible now – what could I do any better? (yep heard this a few hundred times)

Now these are just a few but you will notice a massive difference in the language. Like you become what you eat – you also become your words – and keeping your mindset in check is imperative to success.

How do wealthy people do it? They develop a millionaire mindset ; they are very careful about the people they choose to let influence them, the friends they choose to spend time with and the language that they are telling themselves. The key thing to keep in mind is we do become our WORDS! Be careful of the people you are listening to and the language you are telling yourself!

If I gave the “Wealthy Language” person $10,000 and then did the same to the “Poor Language” person………I am positive we would see two very incredibly different results. What do you think would happen?

Love to hear your thoughts and feedback in comments section below

Naomi Beaumont Sydney, Newcastle & ACT Head Coach

Naomi Beaumont Sydney, Newcastle & ACT Head Coach Mobile: 0404 801 222 Email: naomi.beaumont@positiverealestate.com.au

Naomi Beaumont has an absolute passion for finance and property; two items she believes go hand in hand. As a highly regarded speaker, coach and strategist with over 12 years in the property and finance industry, Naomi can offer you a comprehensive understanding of the complexities and intricacies of all the areas of investing in property. She starting investing in property at 23 years old and has created multimillion dollar portfolios for hundreds of her clients, using the successful strategies taught in Positive Real Estate’s Lifetime Mentoring Program. To Book in for a Property Investor Night to meet Naomi in either NSW or the ACT - CLICK HERE

Happy New Year everyone. I hope everyone had a relaxing holiday with friends and family and that you have revisited your goals for 2012. If you haven’t please do so its such an important part in the wealth creation process. To understand what your end goal is I think crucial. Tony Robbins says this so beautifully, “Do you want to be pulled towards your goals or it it going to be forced?” I don’t know about you but I liked to be pulled towards to goal. I have attached a few tips below for Goal Setting. If you really want to create lasting change it’s a must.

My Goal Setting Top Tips:-

1. Create a vision – What do you really want? If it was christmas tomorrow and you have anything you wanted – WHAT WOULD YOU CHOOSE?

2. Create a strong enough reason to follow though – For example put some emotion behind it……jump up and get excited. (Yes I do it to.)

3. Raise your standards – Think about who you need to be to create what you want?

4. Review your reasons, plans and visions daily. (So important.)

Knowing that this years is going to be bigger and better, with interest cuts and yields going through the roof its the perfect time to do a night on due diligence and finding the right deal. I feel its going to be a very exciting time to get stuck into into some awesome deals around the country. Its a new market with lots of new opportunities that we need to understand and capitalise on.

We also have our new funky Positive Real Estate website up and running which is very exciting so check it out at http://www.positiverealestate.com.au. It’s a work in motion at the moment and still has a way to go – however we are all very excited!

Success Stories
Please send us through your success stories we love to hear from you as they are so inspiring for other people and offer such educational and emotional value especially to people who simply feel that wealth creation through property may be beyond their reach. PS Top secret one of your fellow Mentoring students will be in the API magazine in the next few months. If you have a great story you wish to share please email me direct.

IF you haven’t already please book in your appointments with our PA Penni 0431 202 703 or penni.buchanan@positiverealestate.com.au

Looking forward to getting you all up and running for 2012.

Naomi Beaumont Sydney, Newcastle & ACT Head Coach

Naomi Beaumont Sydney, Newcastle & ACT Head Coach Mobile: 0404 801 222 Email: naomi.beaumont@positiverealestate.com.au

Naomi Beaumont has an absolute passion for finance and property; two items she believes go hand in hand. As a highly regarded speaker, coach and strategist with over 12 years in the property and finance industry, Naomi can offer you a comprehensive understanding of the complexities and intricacies of all the areas of investing in property. She starting investing in property at 23 years old and has created multimillion dollar portfolios for hundreds of her clients, using the successful strategies taught in Positive Real Estate’s Lifetime Mentoring Program. To Book in for a Property Investor Night to meet Naomi in either NSW or the ACT – CLICK HERE

Have you made any resolutions for 2012? If so have you started working towards any of them? Some of the top resolutions people make each year include:-

1) Getting fit and healthy and losing weight

2) Spending more time with family and loved ones

3) Get out of debt

4) Create more income and stop living week to week

5) Get organised and motivated

6) Have enough money to give back to charity

7) Leave a legacy and set my kids up

Go on a family vacation!

To understand what your end goal is or the reason behind why you wish to invest in property I believe a very important part in the wealth creation process in identifying your end goals and why you are investing for – knowing your motivati0n is crucial.

Tony Robbins says this so beautifully, “Do you want to be pulled towards your goals or it it going to be forced?” I don’t know about you but I liked to be pulled towards to goal – however if you don’t know what your goals are – then how can you be pulled towards them.  I have attached a few tips below for Goal Setting. If you really want to create lasting change it’s a must.

My Goal Setting Top Tips:-

1. Create a vision – What do you really want? If it was christmas tomorrow and you have anything you wanted – WHAT WOULD YOU CHOOSE?

2. Create a strong enough reason to follow though – For example put some emotion behind it……jump up and get excited. (Yes I do it to.)

3. Raise your standards – Think about who you need to be to create what you want?

4. Review your reasons, plans and visions daily. (So important!)

Knowing  that this year is going to be bigger and better, with interest rates remaining steady or even further cuts and yields going through the roof, its the perfect time to start taking action towards your future financial success and wealth creation goals through property. I feel its going to be a very exciting time to get stuck into into some awesome deals around the country. It’s a new market with lots of new opportunities that we need to understand and capitalise on.

Come along and meet me at one of the next property investor nights in Sydney CBD  or Canberra, so I can help you start towards your personal resolutions, work out your personalised plan and start you working towards your goals NOW! It’s time to stop procrastinating and get up and running for 2012 – otherwise before you know it – you will be making the same resolutions for 2013!

Naomi Beaumont Sydney, Newcastle & ACT Head Coach

Naomi Beaumont Sydney, Newcastle & ACT Head Coach Mobile: 0404 801 222 Email: naomi.beaumont@positiverealestate.com.au

Naomi Beaumont has an absolute passion for finance and property; two items she believes go hand in hand. As a highly regarded speaker, coach and strategist with over 12 years in the property and finance industry, Naomi can offer you a comprehensive understanding of the complexities and intricacies of all the areas of investing in property. She starting investing in property at 23 years old and has created multimillion dollar portfolios for hundreds of her clients, using the successful strategies taught in Positive Real Estate’s Lifetime Mentoring Program. To Book in for a Property Investor Night to meet Naomi in either NSW or the ACT – CLICK HERE

Hi all, this month’s Mentoring topic is extremely detailed and entails some pretty in-depth information – so that is why we decided to kick start 2012 with Due Diligence Do’s and Don’ts and Finding a Deal.

Looking for the perfect property deal can be daunting and overwhelming when you first decide to take the plunge. However if you have the right tools, knowledge and techniques then making your way through the maze can be easy, rather simple and even fun.

It’s for this very reason our February mentoring workshop – Due Diligence and Finding the Deal – is one of my favourite topics.

Before joining Positive Real Estate, so many of my first time investor clients start off not knowing where to really begin when they take their first steps down the property rabbit warren, by the end of the workshop there’s not only light in their eyes, but they are all enthusiastic and raring to go, feeling confident they are equipped to find the right deal for them.

Regardless of the level or type of investor, every month I sit with my clients to help them find the right deal for them in the Australian market place. This months workshop allows me to get everyone involved in the process – to explore some of the latest ways and websites people have been using to find and evaluate property deals.

Last year we discovered that www.nearmaps.com was more up to date then the popular google maps! This month i can’t wait to share some of the websites we are currently using to find properties for potential subdivision.

The night is a great insight into how we at Positive Real Estate go about finding awesome deals in the market place that others might sometimes ignore or through lack of knowledge, not understand or realise that there is money just laying on the floor! All you have to do is put on those special vision goggles – aka know and understand what to look for – and do a little detective work so you can pick it up.

The workshop will also show how our clients and buyers agency are currently looking for deals using our 6 key property investing strategies:

Discount

Renovation

Sub Division

Strata

Development

Off the Plan

If you unfortunately can not make the meeting don’t’ fret as the powerpoint presentation will be available online. Obviously not the same as being there so feel free to email me at david.mcguiggan@positiverealestate.com.au and I’ll be more than happy to take you through it and share my insights.

Looking forward to helping you through rabbit warren and finding the right property for you!

Dave

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David McGuiggan WA Head Coach P: 0407 240 506 e: david.mcguiggan@positiverealestate.com.au

If I think about it there are plenty of things I regret: eating too much over Christmas, not starting my investing journey years earlier, thinking I could collect and sift through ALL the investing advice out there on my own as a newbie investor, having a single garage now there are four cars in our family, eating too much over Christmas (did I already mention that?)

But I accept there is nothing I can do to change the past, so while a little reflection is good, don’t waste time on regrets. It’s a New Year! Time to look forward!

It doesn’t matter where you are at on your investment journey. Set yourself some goals for the next 12 months and work out what steps you need to take to achieve those goals. It makes no difference whether they seem like baby steps, or a mammoth task ahead of you – you need a starting point.

Take advantage of all the help, resources and experience available to you as a Mentoring Program member so in twelve months time you don’t find yourself with the same investing regrets. February’s Mentoring Workshop is a fantastic start to the year- Finding Profitable Property and How to Carry Out Due Diligence.

I clearly remember buying my first investment property – 9 years ago this March. I was so fearful of making a mistake – choosing the wrong type of property in the wrong area, with the wrong rental demand, poor capital growth… you name it and I was worried about it. I almost didn’t proceed. Sound familiar? As it turns out I did make a few mistakes with some of my early purchases, but fortunately I didn’t give up because with education I achieved success.

Many would be investors find themselves paralysed by fear of failure. If that’s you, or you just don’t feel confident of finding a good deal, then this month’s workshop is for you!! Bring your pad and pen because I’ll be sharing everything you need to know about identifying a profitable property: what to look for, where to find the information, who to talk to. It’s called due diligence, which basically means doing your homework before you buy.

There’s never an absolute guarantee of success when you buy a property but let’s eliminate the guesswork so you can invest with greater confidence.

Join me on February 14th at Cronulla Rydges starting at 6.30pm. Now, I know it’s Valentine’s Day (clearly I have been married too long as it didn’t twig when I set the date:) )but I say be spontaneous and go out for dinner on 13th February. Or bring your partner and sample one of the many cafes or restaurants at Cronulla after the workshop. Come share a wine and chocolates at the workshop.

Make 2012 a great year by getting educated and taking action. See you there!

Dare to Dream – Create – Succeed and Believe!

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SUCCESS STORIES- We have already helped thousands of everyday Aussies start working towards their personal wealth creation goals through property investing! Their success stories have been so fantastic that they’ve been featured in magazines including Australian Property Investor and Your Investment Property!