Property Investment Different Strategy

[Nick G]

Yep, kindle, ePub and PDF. We deliver ereader versions when ordered and PDF on request.

[orion]

Ok thanks.
What % has Lisa sold as Kindle? Not sure what ePub is.

Email me on private one if you like, [email protected]

Thanks Nick

Regards
Graeme

[orion]

Here are the figures after the end of year two (December 2015) for the 20 properties.


Mortgage ------Approx Value---Equity------Rent ---- Rent/Month – Exp –-Mort Pmnt ---- Principal--Loan Fix End--Rate
$135,058.00 ------ $190,000.00 ---$54,942.00 ---$320.00 ----$1,080.00 -----$922.00 ----Feb-34 ---$340.00 ----Aug-16 --4.7
$111,175.00 ------ $137,500.00 ---$26,325.00 ---$270.00 -----$890.00 -----$824.00 ----Feb-34 ---$270.00 ----Sep-16-- 5.99
$120,115.00 ------ $160,000.00 ---$39,885.00 ---$285.00 -----$900.00 -----$820.00---- Feb-34 ---$310.00 ----Aug-16-- 4.7
$108,986.00 ------ $155,000.00--- $46,014.00 ---$260.00 -----$830.00 -----$734.00 ----Mar-34 ---$280.00 ----Sep-16-- 4.6
$105,396.00 ------ $157,500.00 ---$52,104.00 ---$275.00 -----$880.00 -----$708.00 ----Mar-34--- $270.00 ----Sep-16 --4.6
$114,612.00 ------ $150,000.00 ---$35,388.00 ---$270.00 -----$895.00 -----$746.00 ----May-34 ---$2870.00 ----Nov-16-- 4.3
$86,065.00 ------- $105,000.00 ---$18,935.00 ---$225.00 -----$640.00 -----$633.00 ----Jul-34 ---$220.00 ----Jul-16-- 5.85
$109,108.00 ------ $157,500.00 ---$48,392.00 ---$290.00 -----$940.00 -----$806.00 ----Jul-34 ---$270.00 ----Jul-16 --5.85
$125,039.00 ------ $160,000.00 ---$34,961.00 ---$280.00 -----$940.00 -----$924.00 ----Jul-34 ---$300.00 ----Jul-16-- 5.9
$118,908.00 ------ $150,000.00 ---$31,092.00 ---$270.00 -----$850.00 -----$880.00 ----Sep-34 ---$280.00 ----Sep-16-- 5.99
$121,585.00 ------ $155,000.00 ---$33,415.00 ---$250.00 -----$890.00 -----$898.00 ----Oct-34 ---$280.00 ----Oct-16-- 5.99
$126,234.00 ------ $160,000.00 ---$33,766.00 ---$280.00 -----$935.00 -----$930.00 ----Nov-34 ---$290.00 ----Nov-16-- 5.99
$116,446.00 ------ $170,000.00 ---$53,554.00 ---$320.00 ----$1,090.00 ----$843.00 ----Nov-34 ---$280.00 ----Dec-16 --5.75
$105,755.00 ------ $137,500.00 ---$31,745.00 ---270.00 -----$880.00 -----$765.00 ----Nov-34 ---$260.00 ----Nov-16 --5.75
$145,259.00 ------ $170,000.00 ---$24,741.00 ---$300.00 ----$990.00 -----$1,053.00 ----Nov-34 --$345.00---- Nov-16-- 5.75
$139,636.00 ------ $162,500.00 ---$22,864.00 ---$285.00 -----$950.00 -----$993.00 ----Nov-34 ---$340.00---- Nov-16-- 5.55
$134,283.00 ------ $165,000.00 ---$30,717.00 ---$300.00 ----$1,015.00 ----$955.00 ----Nov-34 ---$330.00---- Nov-16 --5.55
$132,163.00 ------ $160,000.00 ---$27,837.00 ---$290.00 ----$970.00 -----$931.00 ----Dec-34 ---$320.00 ----Dec-16 --5.55
$126,402.00 ------ $155,000.00 ---$28,598.00 ---$285.00 ----$945.00 -----$898.00 ----Dec-34 ---$310.00 ----Dec-16-- 5.55
$102,288.00 ------ $140,000.00 ---$37,712.00 ---$290.00 ----$960.00 -----$721.00 ----Jan-35 ---$260.00 ----Jan-17-- 5.49

$2,384,513.00 --$3,097,500.00 ---$712,987.00 -5,615.00 --$18,470.00 --$16,984.00-------------$5,835.00

Update - this is all the figures at end of year 2016.
Lots of numbers here so will give a summary as well.


Mortgage ------Approx Value---Equity------Rent ---- Rent/Month – Exp –-Mort Pmnt ---- Principal--Loan Fix End--Rate
$130,156.00 ------ $220,000.00 ---$89,844.00 ---$340.00 ----$1,143.00 -----$884.00 ----Feb-34 ---$420.00 ----Aug-18 --4.15
$107,771.00 ------ $165,000.00 ---$57,229.00 ---$290.00 -----$944.00 -----$718.00 ----Feb-34 ---$340.00 ----Sep-18-- 4.19
$115,789.00 ------ $180,000.00 ---$57,229.00 ---$310.00 -----$1,024.00 -----$786.00---- Feb-34 ---$385.00 ----Aug-18-- 4.15
$104,463.00 ------ $187,500.00--- $83,037.00 ---$280.00 -----$904.00 -----$734.00 ----Nov-33 ---$355.00 ----Nov-18-- 4.1
$101,900.00 ------ $192,500.00 ---$90,600.00 ---$275.00 -----$884.00 -----$708.00 ----Mar-34--- $330.00 ----Sep-18 --4.19
$114,612.00 ------ $182,500.00 ---$71,876.00 ---$310.00 ----$1,024.00 -----$746.00 ----Nov-33 ---$375.00 ----Nov-18-- 4.1
$82,776.00 ------- $117,500.00 ---$34,724.00 ---$225.00 -----$634.00 -----$555.00 ----Jul-34 ---$270.00 ----Jul-18-- 4.15
$104,995.00 ------ $190,000.00 ---$85,005.00 ---$300.00 -----$984.00 -----$806.00 ----Jul-34 ---$345.00 ----Jul-18 --4.15
$120,617.00 ------ $192,500.00 ---$76,883.00 ---$280.00 -----$904.00 -----$924.00 ----Jul-34 ---$350.00 ----Jan-17-- 4.3
$115,156.00 ------ $160,000.00 ---$44,844.00 ---$270.00 -----$864.00 -----$880.00 ----Sep-34 ---$370.00 ----Sep-18-- 4.19
$117,641.00 ------ $187,500.00 ---$69,859.00 ---$290.00 -----$944.00 -----$898.00 ----Nov-33 ---$400.00 ----Nov-18-- 4.1
$122,582.00 ------ $187,500.00 ---$64,918.00 ---$310.00 ---$1,024.00 -----$930.00 ----Nov-33 ---$420.00 ----Nov-18-- 4.1
$113,612.00 ------ $195,000.00 ---$81,388.00 ---$330.00 ----$1,103.00 ----$843.00 ----Nov-33 ---$390.00 ----Nov-18 --4.1
$102,650.00 ------ $167,500.00 ---$64,850.00 ---285.00 -----$924.00 -----$765.00 ----Nov-33 ---$350.00 ----Nov-18 --4.1
$141,517.00 ------ $200,000.00 ---$58,483.00 ---$340.00 --$1,143.00 -----$1,053.00 ----Nov-33 --$485.00---- Nov-18-- 4.1
$135,538.00 ------ $195,000.00 ---$59,462.00 ---$310.00 ---$1,024.00 -----$993.00 ----Nov-33 ---$465.00---- Nov-18-- 4.1
$130,554.00 ------ $190,000.00 ---$59,446.00 ---$310.00 ----$1,024.00 ----$955.00 ----Nov-33 ---$445.00---- Nov-18 --4.1
$128,561.00 ------ $190,000.00 ---$61,439.00 ---$315.00 --$1,044.00 -----$931.00 ----Nov-33 ---$440.00 ----Nov-18 –4.1
$122,5822.00 ------ $200,000.00 ---$77,418.00 ---$310.00 --$1,024.00 -----$898.00 ----Nov-33 ---$420.00 ----Nov-18-- 4.1
$99,178.00 ----- $172,500.00 ---$75,822.00 ---$290.00 ----$944.00 -----$721.00 ----Jan-35 ---$330.00 ----Jan-17-- 5.49

$2,308,662.00 --$3,685,000.00 --$1,376,338.00 --5,970.00 --$19,365.00 -$15,706.00------------$7,685.00

[orion]

Here is a basic summary of all the figures from buying the 20 properties in 2014, which is what I wrote my new book about a few months ago "20 Rental Properties In One Year."

Purchase price for the 20 properties in total during 2014 was $2,464,900 or an average of $123,245 per property.
Market value approx. at the time of buying (or after reno cost) was $2,939,000 or an average of $146,950 per property.
This represents an immediate equity of approx. $474,100 by buying below market value or $23,705 per property.
The cashflow after expenses (not including any maintenance) at the time of buying in 2014 was approx. $208p.w. or $10.40 per property.
These were all on 20 year P & I loans with interest rates around 5.5%p.a. - 6.0%p.a.
The equity build up each month was $5,590 in other words, the total debt each month was getting reduced by that amount approx. each month.

At the end of 2016, the total debt is (as above) $2,308,662 and total market value of approx. $3,685,000 which means the equity is now $1,376,338 over the 20 properties, or $68,817 per property.
The cashflow per week now (before maintenance) is $844 per week or $42.20 per property per week.
The equity gained (debt paid off all 20 mortgages each month) is now $7,685 a month which is $92,220 per year. This has increased more than usual as the interest rates have come down and the rates have been fixed at a lower amount.

For those of you that haven't read the new book or read through all the posts on here, this was from one simple idea of wanting to buy 20 properties with 100% finance and loans all on P & I loans over 20 years and the rent needed to cover the mortgages and outgoings (excluding maintenance).
This idea was 3 years ago now (January 2014) and so starting from zero dollars then, the equity using this idea has grown to nearly $1.4 million and will continue to grow (unless prices drop faster than equity is created) until they are all paid off in 17 years time.

The initial equity of $474,100 is part of it, so is principal getting paid off each month, now nearly $200,000 and the other approx. $750,000 ($37,500 per property) has been due to market prices going up. This means an approx. 25% increase in market prices since 2014, and if you look at the prices that were originally paid for the properties, it's an increase in approx. 50% in price from what they were purchased for.

Lots of figures there, any questions let me know

[archinvestor]

Would be great to get on kindle. That's what I use most of the time for reading.

[orion]

Would be great to get on kindle. That's what I use most of the time for reading.

It's on Kindle through Nick Gentle who is on here or I can do a pdf of it.
The book is also in most bookstores or online at intelligentinvestor.co.nz

[Nick G]

Ifindproperty.co.nz/store has a link to buy the kindle version. I helped Graeme self publish it so you download the file and put it on your kindle, takes about 30 seconds. Let me know if I can help otherwise.

[Rentex]

Good one Graeme.
Both your books are also available from Auckland libraries, but best to buy where possible!

[Davo36]

Hi Graeme, just bought a copy of it.

I've done my investing along similar lines but with small commercial properties. And not in an as big a way.

[orion]

Hi Graeme, just bought a copy of it.

I've done my investing along similar lines but with small commercial properties. And not in an as big a way.

Great, let me know what you think of the book Davo
Yes commercial would make sense to do it with too, you would likely to be able to do it a lot easier too with some experience.

[Nick G]

Hi Graeme, just bought a copy of it.

I've done my investing along similar lines but with small commercial properties. And not in an as big a way.

Ditto, for bigger flats. PP of each would get me 5-7 of what Graeme's buying but that's a function of buying in a market I know. Similar net yield, add-value, add rent strategy. I hope to get one more this year, will need to do some trades first to build up the war chest. Davo, would be keen to meet up one time to chat about commercial, are you in Auckland?

[Davo36]

Hi Nick, yes I'm in Auckland.

Not very active just now (things too bubbly for me just now), but happy to meet.

And Graeme, yes you used to be able to do it easily in Auckland. The net yields were always higher than the cost of borrowing by around 1-2% so that made cashflow really good. Plus I have added value to a few (and stupidly sold) and made money that way.

I don't do much property stuff nowadays. But will again at some point.

[investorak]

Nick G Where do you invest?

[Nick G]

Wellington currently mate. Partly because I really like the place ;-)

[alundracloud]

Reading through all 54 pages was a wee bit time consuming, but I think I got a lot of very valuable insights by doing so.

Congratulations Graeme!