I’ve been visiting various locations to catch up with our renovators before the end of the year. I decided to get going early because December comes and then life gets really crazy. And so I thought that I would do it now and I wanted to check in and see how everyone’s going with their project. Getting together is always a great way to get inspiration and motivation from one another.
Last week I was in New Castle and yesterday I went to Brisbane.
When I started this business, one of the reasons was because I didn’t just want to be on a project all day every day.
I’m a great believer in the power of people and I really wanted to create a community of people who were encountering similar problems, similar to the ones that I had.
I wanted a community that was generous, supportive and most importantly, inspiring. One that would provide inspiration and motivation to one another. It’s been a few years now and I’ve really just got present to the fact that that’s actually what’s happened and I’m just very proud of the people in our community and the awesome results that they’re achieving.
How Inspiration And Motivation Works
Yesterday, we had quite a few renovators around the table – all sharing their wins and their challenges. I think it is important to belong to communities to maintain inspiration and motivation.
It was Zig Ziglar who said:
“Motivation doesn’t last. Well, neither does bathing – that’s why we recommend it daily.”
When we do get together, it’s a great opportunity for aspiring renovators to become inspired and not just by the projects I do, but to be inspired by one another. The ” If she can do it, so can I” principle.
Michelle has just finished a splitter block. She made a commitment that this year was going to be better than last year. And she also committed to making an extra profit over and above her day to day job through her property.
So she got down and dirty into RP Data and started looking for splitter blocks.
Michelle wrote letters to around about 100 people a week. Generally, with letterbox dropping, you’ll get around a 2% response rate. She did a bit better than that.
This student was searching on RP data for the type of property that she was looking for and then writing to them. Basically, she was looking for no money down deals.
She found a couple who had a double block and wanted to sell it but did not want to go through the splitting process. It had a house over the boundary. They did not want to go through the process of splitting it and selling each individually so she negotiated an option over the property. She then set about getting approval to demolish the house (which was predominantly asbestos) – and split the blocks then sell them independently.
She has recorded a $60,000 profit from that deal. And she created that out of thin air and that’s amazing. Although she didn’t actually buy the properties as such, she did need a little bit of money to pay for the stamp duty. But other than that, it was a no money down deal.
Inspiration And Motivation
When you’re trying to make your way using property in renovating, you can sometimes get quite despondent.
But getting together and sharing project stories with likeminded people it keeps ups the inspiration to push up their energy level and get out there and get going at it again.
We have a new member who is going through separation and divorce. She’s struggling to deal with everything that’s coming up – everyone around the table was offering her help.
Our new member’s got a property that she could be generating additional income from – her family home. She could be generating additional income using either short-term rental or shared accommodation. And some of our renovators that have expertise in those areas.
One student in particular, we call her the ‘Student Accommodation Queen’.
She has property in Annerly which she has renovated.
‘Student Accommodation Queen’ admits it wasn’t an overly good buy because she bought it when she was less educated. But in the end, she was able to utilize her renovation skills to really overcome that problem.
She paid $525,000, renovated it so that it met the requirements for student accommodation, found a really good manager and now has that rented out at $900 a week. $525,000 for the property – $900 per week, pretty good return.
And at the end of the day, our Student Accommodation Queen was able to lend her skills to someone else in the community who is going through a rough patch and needs a bit of a hand. That is how inspiration and motivation works.
Another project we discussed is at Zillmere. This husband and wife team, Michelle and Graham trained in March this year and after a few months had their first property and were planning to flip – so they’re right into it.
Unfortunately, Graham got really sick – he’s been in the hospital for quite a long time so there’s been a delay.
The delay’s been a good thing because the market is so good and growing – that it will increase the selling price.
They have just done such an amazing job. They brought their personal skills to the table and despite the hardship, they’ve been able to really rock.
I can’t wait for that to go to the market and when it does I’ll certainly be sharing it with you.
Leveraging The Short Term Rental Market
Finally, there’s one more thing I have to share with you.
We run an AirBnB program as well. AirBnB’s absolutely awesome for renovators because it helps you cover the holding period but it’s also for really upping your cash flow.
You probably know that there’s quite a deluge of new units in CBD Brisbane. So Michelle (The Powerhouse) and her friend started trying to negotiate leases on some of those and then lease them in AirBnB. But they were coming up against the brick wall.
Some of the owners are actually fed up with waiting for their building management to get their properties listed and they’re going to outside agents.
In short, they’ve been able to lease their first two properties. Stunning properties with stunning views.
Their goal was to get ten properties each. This was so that they would able to add $1,000 per week, each – additionally to their income. But with the first two properties, they’ve realized that it’s going to be more like 4 properties to make the magic $1000/week. They rented their first for $500 a week and it’s returning around $160 per night.
Now is a good time to list on Airbnb. Demand will settle out a bit after Christmas and there are some legal considerations in terms of tenancy that you need to be aware of but it’s well worth the effort.
So if you’ve got an apartment in Brisbane – one of those apartments that’s really languishing, you might want to think about leveraging a short-term rental market. This will help you to cover your cost and make a profit. This is a good option for you rather than tolerating the shocking returns that you could be getting.
That’s all I’ll share today but I should mention that I will be talking about these projects and others in our webinar this evening.
Here is the link to the 6 Insanely Profitable Reno Strategies webinar and we’d love to see you there.
Bye for now!