3 minute read (a must for people weeding through Property Offers)
You can definitely, 100% make a million dollars in one year. The catch is, how much you need to invest to make that million. That is the issue with a lot of testimonials – you can’t see the
2. amount invested
Its a little frustrating, because we have lovely people come to us, and want PMI to direct them to their easy million dollar win. It doesn’t exist.
Here are some points that help you understand the marketing
Under Market Value. Its a odd term, because what you pay is what the market values a property. In general, the term under market value is a property that will have a far greater worth after you put in sweat equity
‘In your spare time’. All investing takes time. In many cases, the amount you build is proportional to the time you research and plan. In this office, the active investors are on the phone daily with builders, councils, brokers. Many times your ability to negotiate and bring people together is the difference between margin and loss
‘Portfolio worth X’. Many, many times, investors are trading in equity. For example, you might build a duplex, have $200k equity straight away, then buy your next block with that equity. This has pros/cons, particularly as Interest Only loans are drying up. Many people invest on each project as a stand alone, and don’t leverage against each, most people are somewhere in between. Be weary of someone with a huge portfolio, where they are taking high interest loans to avoid paper work etc. Their are always outliers, but in general, big portfolio means long time in market
X amount of investments in Y years. Again, its just time, risk and available capital. Ryan is now at 10 properties in around 5 years, to put that into perspective, he would spend at least 30 minutes, and at most 3 hours, every day on his property portfolio. In many ways, here at PMI we are lucky that we are encouraged to work on our portfolios during the day. You may not have that luxury – and not being able to make calls during business hours is going to slow things up, alot.
Our practical advice (that we follow and recommend for friends)
1. Save money for a deposit. Pick a monthly goal
2. Read lots, from basics to hard
3. Get on a forum and bounce around ideas. Google Property Chat (they are aggressive, but, they have some smart cookies on there)
4. ‘Play’ investor. Open a spreadsheet, say what you would invest in, then follow the market to see if it works
5. Sign up for our newsletter. Give us a little time, but we are working hard to segment the newsletter much much better. Give you the right content to learn more, and give you the right properties to watch