A most amazing story!!

[Marc]

Hi all,

I have been on chat with westan who has a most amazing and inspirational story! I have invited westan to tell his story on the forum as I think everyone will be interested.

Best regards

Marc

[westan]

Hi marc and all,

thanks for the invite to share my story with you.

i started buying property in 1997, at this time i had just finished 4 yrs of studying at Bible College. I took up work as a school chaplain working 4 days a week and needed to make more money to survive as we had a young family. i discovered i could buy properties that were cash positive , ones that would put $30 to $40 per week into my pocket. So even though my net worth was only $25K i started to buy homes in Victoria and South australia. in the next 12 months i was fortunate enough to buy 10 homes, the average deal was about 30K and rented for 100pw.
over the years i have been able to refinance these properties (as the appreciated in Value) to get the deposit to buy more. Over the past 12 months i have continued to buy, but i have also sold about 10, today i own 27 homes in Oz and NZ. Now 6 years later i have found myself in a position where i don't have to work anymore. Next Friday i will finish work (i've actually asked for 12 month off) I no longer need to rely on a pay packet to survive.
On Dec the 31st we (wife and 4 children) fly from Australia to live in Balclutha New Zealand for 12 months, maybe longer. Over this time i plan to Holiday, continue to invest and contemplate what i should do with my new freedom. I'm 39 yrs old and still can't believe the position that i have found myself in.
My strategy with property has been to buy cash positive properties, to buy in areas that will appreciate in value (hopefully) and to buy properties that i can add value to by cosmetic improvements, and always buy at the right price as Kyosaki said "the profit is made when you buy not when you sell".
i know alot of you are pursuing property as a way that you too may be free one day from the need to work, i hope you get some encouragement that me a very ordinary guy (not really as brilliant as i think i am) has achieved some of his property investing goals. Buy well and go for it.

regards westan

[PropertyGuru]

Hi Westan,

Good luck with your trip and congratulations on your success. I think this tread was good place to start my posting on this forum. I hope one day I will also write my story here.

Cheers

[cube]

Hi westan,

CONGRATULATIONS!!!!

You are an inspriration to us all.

One small question - even though you had cash-positive properties, did you run in to the problem of the banks wanting you to have a minimuim amount of your income from a 'proper' job.

The Westpac (possibly NZs most conservative lender, admitedly), say that they get nervous if more that 75% of someone's income is from IP. I haven't clarified if that is gross or net income, but either way its a restriction.

Happy retirement!

cube

[Marc]

Hello!

Yes I have a question as well!

Do you have any tips and advice for investors?

Best Regards

Marc

[westan]

Hi all

thanks for the positive comments

Cube

yes i found that the banks here in Oz wouldn't lend me anymore after i had about 10 houses. My salary income was only about $30,000 per annum, and even though my rents were always covering my expenses, including interest payments the main banks would lend to me. Sadly i missed out on some deal then because of this. Those properties have doubled in value.
however i kept looking and eventually found a bank that was happy to loan to me, luckily there product is one of the best in Australia with niot only the lowest interest rate but no loan establishment fees. these guys also said i could buy as many of the types of properties as i wished as long as i had 20% deposit.
so sorry for the long answer but yes, so keep looking if one bank says no.

Marc
yes marc i have lots of tips, my first one is believe you can do it. when i started in 1997 i didn't know anyone else who was buying cash positive properties (today i know heaps), so i decided to see some local accountants to find out all the tax deductions available, One accountant asked me why would i be buying property for and advised me to put cash aside to pay for my kids education (education Bonds). I had forgotten about this till the other day when i found his old bill for $75. i keep saying one day i'm going to go in and show him my balance sheet and show him the receipt for his advice not to do it. so don't let others who think they know better tell you what to do.

Warning marc don't start me you'll have trouble stopping me.
bye westan

[Marcus]

Hi Westan,

Well done with your achievements. Your situation is testament to the benefits of buying +ve C.F properties. 10 properties in your first year is a real jaw dropper!

A quick question for you, but please take as long as you like in answering it.

Q. What sacrifices did you (and your family with 4 kids no less! ) make over the 6 years working towards your financial independence?

If you are ever up Mt Maunganui way, drop me a line. It would be great to sit and talk each others ears off over a cold one (or more).

Kind regards,
Marcus.

[muppet]

Hi Marcus

Perhaps we could make a trip south sometime next year and have a conference with Westan.

Hi Westan

Thanks for sharing your investing trip with us. I am sure that a lot of newbies on the forum have gained a lot of inspiration from what you have told us.

If I don't see you before Xmas I hope that you and your family have a very Merry Xmas and a Happy New Year and I hope you are learning all those New Zealanderisms.

Regards

[wada]

To Westan,

WICKED...that's all I can say.

The motivation is definitely there, now I just need to change the mindset of wanting to work all my life!!!

Wada

[Marcus]

Hi Muppet,

Could possibly arrange a quick trip perhaps.
Next year however is going to be a big one as I will be tying the knot in November.
Might have to do a Q.C.D to pay for the food and arrangements though ....and the chapagne ..... and then theres the honeymoon .... and all that after having just paid for for that ring (well actually the ring is a fraction the cost so I don't know why they dont call it an engagement rock)

I cant see how people can afford to get married more than once!

Regards,
Marcus.

[Marc]

Hi all,

Warning marc don't start me you'll have trouble stopping me.

Why on Earth would I want to stop you!! You are where I want to be!

Best regards

Marc

[GoGirl]

Go Westen! with 4 kids and $30,000 a year I just knoww that you know how to budget and how to make sacrifices by delaying gratification.

I admire you and your wife totally as I know that it would have been a team effort.

Enjoy the time with your family you DESERVE it.

[Tempo]

Now, this is what we all love to see - a genuine down-to-earth success story from someone with the foresight to see the obvious long before others saw it. And, also, probably someone who had to go against the trend because, back then, property was not in fashion.

It's the old rule of buy in gloom not boom.

I love the sound of this person and feel so proud for him.

What a contrast to the get-rich-dodgers that pretend to know it all and want to charge others thousands when the dodgers did diddly zip during the gloom and are now leading others to their doom.

This is a great message and a credit to your forum, Marc.

Cheers

Tempo

[RentMaster]

That is a really awesome story. You should be very proud. You have set a very high standard for the rest of us who still have to hold down a day job. Well done!!!!

[RodC]

westan,

Thanks for sharing your story of achievement. It's an inspiration every time I hear it.

Hope the packing is still going ok.

If I don't speak to you before then, have a Great Christmas and New Year.

regards,

Rod.