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5 Property Investment Structures – Which Will Leave More Money In Your Pocket

Categories: Finance

How does the idea of your hard earned cash going down the drain sound to you? If you have never taken the time to sit and think your business financial structure through, that’s exactly what may be happening to you.

True, selecting the right property investment structure is no simple task. But when you think about how much in unnecessary taxes you may be paying, the idea of not investing the time and effort to do so becomes simply unacceptable.

Paul Copeland is an accountant and a very successful property investor, he is also a long time contributor in our property networking group meetings.

As a property investor, Paul understands that the property game ultimately is about making money.

But as an accountant and director of the business advisory group at William Buck, he also recognises the important role that the right property investing structure can play in maximising profits, minimising risk, reducing taxes and planning for the future.

Because property investing structures can be complex and should be based on an investor’s individual plans and goals, Paul developed a four-step “building blocks” system to provide a roadmap to help investors decide which structure is right for them.

Step 1: Review Your Options

[Read more…]

The Top 3 Mistakes That Send Property Developers Broke

Categories: Finance

If you’re interested in the fastest way to create massive wealth using property, then read every word of this blog post.

You probably know that when it comes to cold hard cash, no strategy is a match to the obscene amounts of money that can be made in just ONE properly run development project.

But hold your horses, because there’s one truth of life you must take into account. The higher the reward – the higher the risk. And in property development, just one failed project could be your one-way ticket to losing all of your life savings…and even bankruptcy.

This is why I invited Blake Lanham, from Lanham Constructions Qld Pty Ltd, for a chat. I wanted to find out what are the most common mistakes that make property developers go broke and how can smart property investors avoid them.

What he revealed was far from complex property market flotation theories or technical construction stuff. He talked about some simple practices that, when followed, can not only save you from losing your hard earned money but lead you to a world of wealth with property development.

After 10 years in the construction game as a builder and design/construction specialist, Blake knows what it takes to complete a successful building project. And he also knows how easy it is for developers to lose money.

According to Blake:

There’s a basic belief among newbies that property development is easy and quick, that is not the case.”

Blake has seen many people who complete short property development courses and immediately run out with their first joint venture partner to start buying up properties.

Often, he said, these people—who are initially very excited about property investing—end up walking away from a deal due to a lack of preparation and communication.

Drawing from his vast design and construction experience, Blake shared the top three mistakes that send property developers broke.

1. Not getting (good) advice

[Read more…]

How to Make the Most of Your Financial Resources

Categories: Finance

Are you closer today to the goals that lead you into property investing to begin with?

I know how easy it is to get “Tunnel vision” and focus exclusively on finding your next deal. After all, you’ve got into property to make money and that’s where your profits come from, right?

But after flipping deal after deal – even with a consistent profit record – it doesn’t look like you are any closer to the life you envisioned when you first started.

If that’s your case, maybe this is the moment to take a step back, reassess your overall wealth creation strategy and design a financial plan that will take you where you really want to go.

According to Jolene and Matt Sukkarieh, financial planning experts at My Financial Group, a wealth advisory firm in South-East Queensland, that’s where the advice of a qualified financial planner can help.

Unfortunately, many property investors don’t tap into the power of financial planning because they have misconceptions about what financial planners do, try to handle their finances themselves or simply are unaware that the resource is available.

If you are serious about building wealth in the property game, here are a few questions that you should be asking about financial planning: [Read more…]

Do You Know What Is The Right Property Investing Strategy For You?

Categories: Strategies

Most property investors when they are starting out, struggle to know which strategy to choose…

In fact, even experienced property investors can often lose sight of which strategy will create the most bang for their buck.

In 2005, I can remember choosing the Buy, Reno, Sell strategy because that’s all I could get my head around…”

…subdivision and development just looked too scary for me to even contemplate in the early days.

When I look back though, I can see clearly (hindsight is a wonderful thing!) that had I taken a step back and had a proper look at what I wanted to achieve, my outcomes could have been far more fruitful.

So today I want to take all the guess work out of choosing the right property investing strategy so you can get crystal clear on which path is going to serve you best.

First of all I want to narrow the potential strategies down to just 4… of course there are many more ways to create profit in property but…

… having too many options is the exact reason most investors fail to even make a start.

Choose Your Own Strategy

The Big 4 most investors choose are:

Buy & Hold (and hope!)
Renovation (to sell or rent)
Subdivision (to manufacture chunks of cash or positive cashflow)
Development (to manufacture chunks of cash or positive cashflow and sometimes both)

Like I said there are many more ways to profit from residential property deals including: Call options, Strata Titling, Vendor Finance, Lease Options, Joint Venturing, Money partnering, Land banking and the list goes on…

In fact you’ll find many multiples of these options when you start dovetailing some of them together!

Whatever property investing strategy you choose, there are certain critical components that need to be assessed:

Cash (For deposits and funding the add value strategy)
Project Length (How long you and your money are going to be in the deal)
Time required (How much of your time you’ll need to invest to extract a profit)
Skill (Have you got the skill to make this strategy work?)
Risk (Are you going to be able to sleep at night while the project continues?)
ROI (Return on Investment which includes time and money invested)

Ok that’s a lot of parameters to consider and it’s easy to see how investors can get off track before they even start.

To help you pull all this information together I’ve created a Strategy Matrix to help you achieve a realistic overview of what’s going to be expected of you and your skills and resources.