no money down property millionaire within 24 months work book

8/10/2019 No Money Down Property Millionaire Within 24 Months Work Book

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HOW TO CREATE FINANCIALFREEDOM THROUGH PROPERTYINVESTING IN 24 MONTHS OR

SOONER

By Marco RobinsonAdvanced Property Course

1http://YouTube.com/MarcoRobinsonAuthor Copyright 2012, Marco

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Remember your first objective

Replace your salary with residualincome from property investing


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Singapores rental yields are worryingly low

Yields in Singapore dropped this year tostrikingly low levels, due to soaringresidential prices. Yields at 2.2% to3.3% are fairly worrying. As is usual,yields are higher for smaller sizedapartments. We remind readers thatthese are gross rental yields, i.e., theyare calculated on the basis of the offeredrent, and are before vacancies, costs,repairs, refurbishments or any otherexpenses.


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STI PPI - HDB


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Housing AffordabilitySingapore


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Housing AffordabilityMalaysia


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Housing AffordabilityUnited States


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http://www.globalpropertyguide.com/house-prices-indices/House-price-changes-year-to-end-Q2-2011

Housing AffordabilityUnited Kingdom


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GDP Growth RateSingapore


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GDP Growth RateUnited States


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GDP Growth RateUnited Kingdom


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Age to Income RatioSingapore


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Country InvestmentRatings


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Compared to Continent

Rental Income TaxSingapore


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Capital Gain Taxes (%)Singapore


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House Prices Changes, 1Year (%)

Singapore


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House Prices Changes, 5 Year(%)

Singapore

House Prices Changes, 10 Year(%)

Singapore


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For the eight consecutive quarter since the finalquarter of 2009, private residential propertyprices have continued to moderate, says arecent flash estimate of the property index bythe URA (Urban Redevelopment Authority).Their findings show that the index for the thirdquarter 2011 rose by 1.3%, compared to a 2%increase in the previous quarter.

Furthermore, non-landed private residentialproperties showed an increase of 0.8% in theCore Central Region, 1.1% in the Rest ofCentral Region and 2.1% Outside the CentralRegion in this quarter. In the previous quarterof this year, non-landed private residentialproperties increased in price by 1.6% (CoreCentral Region), 1.1% (Rest of Central Region)and 1.7% (Outside Central Region).

The public property market, on the other hand,has been harder to curb. Earlier this week, theHousing Development Board (HDB) releasedfigures detailing a rise in the resale price index.Since the last quarter, prices increased by3.8%, its highest rise this year. The first quarterof 2011 saw the HDB price index growing by1.6%, followed by 3.1% in the second quarter.

These figures are partly a result of measuresput in place in January of this year which havecreated a dip in the public housing supply,including a five-year minimum occupationperiod for HDB tenants and a lowered 60%loan-to-value ratio.

Continued Slowdown of Growthin Singapores Private HousingMarket Oct 05, 2011 - By: Daniel Seifert


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On 14 July 2011, The Straits Times published the research studies by NUSSingapore for Applied and Policy Economics (Scape) on a differentperspective of calculating the housing affordability in Singapore.Traditionally, the proportion of monthly income that goes into paying themortgage, called Debt-Service-Ratio is used to indicate the affordability of ahouse purchase. If the ratio is less than 30%, or 0.3, it is considered asaffordable.In this study, it goes further by calculating the total life-time income of a

30-years-old till age 65 on the affordability of the home loan. Therefore, ifthe total mortgage to be paid is less than 30% of the total lifetime income,then the housing is considered affordable. In this study, it detailed theaffordability based on 3%, 5% and 7% mortgage interest rate. Theconclusion is that only the bottom 10th percentile will not be able toaffordable a 3-room HDB flat. Those household in the 30th percentileearning household income of $5,250 should be able to afford 5-room HDBflat.

Short-term accessibility is also presented to measure the shorter-termmeasure of affordability. It is defined by the ratio of the cash a 30-year-oldbuyer needs to make all the upfront payments for a new home to hishousehold savings at that point in time. Upfront payment includes downpayment for a property and any COV payable for resale HDB flats. Savingsincludes CPF balances. If the ratio is less than 1, meaning, savings is morethan the upfront payments, then it is accessible.The study found that the current problem with property prices isaccessibility and not long-term affordability. For example, a 3-room HDBresale flat in Yishun and Woodlands are inaccessible to the bottom 20% ofthe income earners.References :1) The Straits Times, 14 July 2011 Page B42) http://www.fas.nus.edu.sg/ecs/scape/housing.html

Housing Affordability compare byaverage salary


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The Millionaire Property

Investor

The 8 Principals ofEssential Mastery


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1. Know your propertygoals

CLARIFY YOUR VISIONWHAT LIFESTYLE COMPELS YOU T

ACT?


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1. Real Property Goals! Why do you want to be a

Millionaire Property Investor? How will you/they benefit?

Who will Benefit? For what purpose is that extra

money generated from

property investment needed? When do you need it exactly? How much Extra Money do you

need exactly?


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2. NET WORTH


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2. Assets or Debt?

What are your assets? (thingsyou own that appreciate)

What are your liabilities? (thingsthat you own that depreciate)

What is your income? (list all

sources) What are your outgoings?

(loans, mortgage, etc)


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NET WORTH CARRIED FORWARD :

________________________________

BY CASHING IN YOUR SHARES, INSURANCE POLICY,JEWELLERY, GOLD & SILVER & ITEMS YOU HAVE NOT

USED FOR AT LEAST 6 MONTHS HOW MUCH CASH CAN YOU GENERATE:

____________________________

HOW MUCH OF THIS CASH DO YOU NEED FOR YOUREMERGENCY FUND? (3 to 6 months salary):

____________________________

HOW MUCH CASH CAN YOU STILL USE: (total cashminus emergency fund):

____________________________


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3. Know how much youcan borrow now!


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3. How much can you

borrow? What is your credit bureau

Statement?

What is your blacklist Exposure? What is your credit history with

lending institutions?

What are the Banks lendingCriteria?

How are you managing your

money?


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________________________________

BY REMORTGAGING OR SELLING YOUR EXISTINGPRIVATE PROPERTY OR HDB HOW MUCH CASH CAN

YOU GENERATE?: (80% LTV)

____________________________

WHAT IS YOUR NEW CASH AMOUNT YOU HAVE TO USEINCLUDING BORROWING? (net worth cash +

remortgage/house sale):

____________________________


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4. KNOW HOW YOU

CAN LEVERAGE


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4. Leverage!

How can you gear DOWN yournegative liabilities?

How can you gear UP yourAssets? What are your and your

stakeholders net income per

month? What mortgage sum can you

borrow from the bank if themortgage payment can only be 40to 70% of your net income permonth?

How can you BORROW more?


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NET WORTH TOTAL CARRIED FORWARD :

_______________________________

WHAT ARE YOUR TOTAL LIVING MONTHLYEXPENSES (include all cash it takes to live your

existing lifestyle?

____________________________

WHAT PROPERTIES CAN YOU BUY WITH YOURBORROWING POWER AND WHAT YIELD DO YOU

NEED TO PAY FOR ALL OF YOUR CURRENTLIVING EXPENSES?

____________________________


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Continued..



_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________

_____________________________________________ __________


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5. KNOW THE LATEST PROPERTLAWS


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5. Latest Property Laws

What are the latest propertylaws in Singapore and the

relevant investment country(e.g 2nd property, property tax,first time buyer, stamp duty, etc)

What documentation isrequired to complete a propertytransaction?

How is your purchaseprotected?


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7. Know yourresearch!!!!!!!!!


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7. Do your research. See/Create Local Plan and Structure Plan See Developers Plan and Developers track record Establish area population Population declining or increasing, at what rate, and WHY? Demographic of area, (age group, income, occupations, time

poor, time rich, married, children) Psychographic of area? (lifestyle, CBD, Beaches, Student

Education, green, entertainment, views, technology, industrial,expat, local language, security, etc

Facilities for your target market? (schools, transportation,shopping, restaurants, entertainment, parks, etc)

EIA & TIA (environmental impact assessment report and traffic) Last transaction prices of specific units, condos, landed property Historical ten/five year past record of appreciation,

depreciation.... Occupancy of building or area presently, declining or increasing? Motivation for selling? Debt, Divorce Death.....


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8. KNOW YOUR ACTIONPLAN

VISION WITHOUT ACTION IS ADAYDREAM

ACTION WITHOUTVISION IS ANIGHTMARE


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PROPERTYASSUMPTION

Purchase Price : $500,000Monthly Rent : $3,000

Annual Rent : $36,000Valuation : $600,000Deposit : $50,000

Loan (90%) : $450,000Loan Term : 25 yearsMortgage : $2,500Renovation Cost : $25,000Capital Appreciation : 15%


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Gross Yield(1st year) Value + rental annual income -

purchase price-----------------------------------------------------------

---- X100 purchase price

e.g: $600,000 + $36,000 $500,000

---------------------------------------------- X 100

$500,000

= 27.2%


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(following years)Value + annual rental income - loanbalance--------------------------------------------------- X100

loan balance

e.g: $690,000 + $36,000 $450,000

---------------------------------------------- X 100$450,000

= 61.3%


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Gross Deposit Yield Annual Rental Income

-------------------------- X 100Deposit paid

e.g: $36,000

--------------- X 100$50,000

= 72%


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Net Deposit Yield

Net Annual Rental Income (less mortgage

payments)------------------------------------------------------- X100

Deposit paid

e.g: $6,000------------- X 100

$50,000

= 12%


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Net Yield Residual Annual Rent (less costs) + Asset

Appreciation---------------------------------------------------------------

X 100 purchase price or loan balance for subsequentyears

e.g: $6,000 + $90,000--------------------------- X 100$450,000

= 21.3%


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Renovation Yield

Revaluation difference Renovation Costs-------------------------------------------------- X100

purchase price

e.g: $90,000 $25,000------------------------------- X 100

$500,000

= 13%


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Money Management


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Automate all recurringpayments

Inspect what you expect Think BEFORE you spend what

return you are getting, do youreally need it

Micro-manage spending

Itemize all spending for onemonth

Simplify your cashflow

management


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TOTAL WEALTH MODEL

NOCHANGE IMPACT

SHIFT A-HA!!!

HYPNOPOMPICAUTO-HYPNOSIS

PSYCOPONICSHYPERDRIVE

FEEDBACK

REALIZATION

AWARENESSEXECUTION

SUPPORT

MENTORING


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Realize your state when youare presented with new

information

NEUTRAL GEAR

cannot integrate, will defend own paradigm,will not even try to invest.

HYPNOPOMPIC

1st GEAR Info will IMPACT you, not enoughunderstanding, have to digest more! ASK

QUESTIONS!


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Realize your state when youare presented with new

information

PYSCHOPONICS

2nd GEAR Starting to have leverage,knowing you have to change your

mindset!

HYPERDRIVE

Full understanding of information, confidentA-HA! Starting to plan for ACTION!


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Be aware of your state, hereshow to act on it!

NEUTRAL Identify your ineffective mindsetand realise you are defending an ineffectivesystem as it has not made you wealthy.

HYPNOPOMIC Listen intently, ASK lots ofquestions to gain further understanding!

PSYCHOPONICS ASK more questions,repeat, study, search for all missing links,strive for more!!!

HYPERDRIVE Set your GOALS!, startplanning with the education you have, getready to execute, revisit psychoponicsconstantly!


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Determine your outcome andbe clear. Growth and/or

income? Investment Property

Consistent Cash-flow?

Capital Appreciation? Tax Incentives? Diversification? Short or Long term? High Deposit or Nothing Down?


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All Singaporeans & othercountries need somewhere to

live (demographics) Terrace Semi-D Town House Detached

Bungalow Linked Apartments Condo Penthouse (Low cost not a good match) Shoplot Office space Service apartments (short term let) Condotel (mixed use)


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NO BETTER LEVERAGE

You can buy 10 times moreproperty than stock with the

same investment

E.G. Prop $300,000Initial Investment $30,000

Leverage $270,000

STOCK $30,000Initial investment $30,000Leverage 0 (or $30,000 IF margin call)


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To succeed you HAVE TO

1. KNOW the CYCLES (Location is great but timingis everything)

2. KNOW the art of FINANCING

3. KNOW how to POSITIVELY GEAR all

of your PORTFOLIO for compoundgrowth.

4. KNOW how to NEGOTIATE


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1.KNOW the CYCLES (Location is great but timing is everything)


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Economic clock and

general tools

Wealth within 10 years

(macro cycle)

Buy quality fromstressed developers

Buy bonds forcapital gain

Real estate buy rejuvenateand hold

Buy rock solid businesses ingrowth phase

Developer freewholesale

RealEstate

Cycle

FixedInterest

Real estate buy rejuvenateand hold

BusinessCycle

Protect profits

Holding for growth

Buy high yieldingbusinesses

Commercialproperty

Add to portfolioon price dips

Refinance in the samemarket

Buying frommotivated sellers

Real estate forcash flow

Sell bondsharvest gains


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The MACRO INVESTOR CYCLE FORSAVVY INVESTORS

(residential real estate)1. SHARE MARKET ENDS GROWTH

2. INVESTORS PROTECT THEIR PROFITS IN STOCMARKET BY SELLING THEIR STOCK AND

PROTECTING CASH IN BOND OR FD.

3. INVESTORS BUY BMV PROPERTY, REJUVENATLANDED PROPERTIES wait for increase in EQUITYremortgage, BUY OFF PLAN GROWING SUBURBS

WITH APPROPRIATE DEMOGRAPHICS. (after

correction phase)4. INVESTORS BUY FROM DESPERATE SELLERS W

PURCHASED IN END CYCLE with CASH!@ (theygenerated by remortgaging)

5. INVESTORS RECEIVE RESIDUAL INCOME FORLIFETIME.


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1. PROPERTY CYCLES

Every market has one, huge growth can happen for several years,however the next cycle after this growth is different and wont be inproperty but shares and business.

In any economic cycle, GET IN FIRST, use your leverage (capabilities)(negotiation) (finance) to double and even triple your profits. Be

counter cyclical. RESEARCH all areas for historical capital growth, KNOW what people

are looking for.

LOOK FOR CASH-RICH, TIME POOR SUBURBS, REJUVENATE INTHESE AREAS

COUNT HOW MANY DWELLINGS VS. POPULATION THERE IS INTHAT SPECIFIC AREA.

(Consider short term lower rent if cannot rejuvenate)

GO WHERE THERE IS A SHORTAGE OF ACCOMMODATION, HIGHDEMAND FROM THE DEMOGRAPHICS OF THE AREA

HAVE A RULE NOT TO INVEST IN CEILING PRICES (END OF CYCL


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1. PROPERTY CYCLES

The ULTIMATE ENTRY OPPORTUNITY Stage

At this point the market has corrected, the stock market haspreviously declined, but now is making ground again after a

long decline (could be 6 months to 12 months after themarket crash).

You are now at the beginning of another cycle, the beginningphase is when the market starts picking up slowly after along decline. Prices start rising slowly, you must see this

pattern as most people fail to spot this opportunity.

In SUMMARY, the MINDSET at this stage is;

I can CAPTURE my profit NOW before the market BOOMS!. Ihave nothing to lose and everything to gain


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1. PROPERTY CYCLES

The PEAK PHASE (Ceiling price END OF CYCLE)

This is the most common phase for inexperienced Investors toenter the market.

The people with the weakest mindsets, the most afraid areFOLLOWING THE HERD mentality, thinking if they dont act

now, they will lose out!

It almost always results in people waiting double or triple thetime to make a profit on their property while the savvyinvestors have already made their money by entering the

market in the beginning!

In Summary this MINDSET is focused on;

I will lose so much IF I dont buy now! instead of WHAT THEYWILL GAIN


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1. PROPERTY CYCLES

The CORRECTION PHASE

This is when PRICES drop! And people that bought at the end of the cycle feeltrapped. Many try and SELL as the prices keep dropping, to stop them losing

more money at near the end of the correction phase.

This correction can last years just like it is doing the USA right now.

The correction phase is a major part of the property cycle, and rememberSAVVY Investors have already SOLD or REMORTGAGED their properties to

capture the profit and have positioned themselves perfectly in order to buyBMV properties in the correction cycle.

Summary mindset for people that bought at peak cycle;

Oh MY GOSH! I will never do that again, I will never buy property, I havelost so much money!

Summary mindset for people that entered at the beginning of the cycle;

I have captured my profit and I am ready to now buy BMV property andretire from my job as I have now guaranteed myself financial freedom


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2. FINANCINGSTRATEGIES


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2. FINANCING

STRATEGIES

b) SellSell your existing property IF theexisting cashflow from the rentalyield is non-performing OR if you

cant remortgage (for example HDB)


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2. FINANCING

STRATEGIES

c) Cash OutUse ANY fixed deposit OR Share

Holdings to purchase BMVproperties & surrender ALL

insurance policies and only get termlife/medical. (Cash out shares in

protect profit cycles)

Note on Fixed Deposits: Make sure

you have an emergency fund. 3 to 6months salary.


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2. FINANCING

STRATEGIES

e) PurgeSell everything that you have not

used for at least six months in carboot sale, friends, or ebay.

(This strategy can raise a deposit)


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2. FINANCING

STRATEGIES

f) VendorFinance(Negotiation)

In desperate times sellers arewilling to split the deposit or

whole cost of a property over aperiod of monthly installments,that is possible for you to afford.


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2. FINANCING

STRATEGIES

g) ShareIt is better to have 25% of

something than 100% ofnothing. If you cannot use theprevious 6 strategies, this is a

MUST option.

Note: Learn to build rapport witheveryone you know and explorecommon goals.


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3. COMPOUNDGROW

& Positively GEAR!


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The Benefits of decodingthe STRUCTURE PLAN & The

LOCAL PLAN


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STRUCTURE PLAN / LOCAL PLAN

PLAN THAT GIVES YOU AN OVERVIEW ANDOUTLINE OF THE DEVELOPMENT THAT ISPROPOSED IN THE AREA.

IT ALSO GIVES YOU THE CURRENT STATUS, INTERMS OF LANDUSE AND DEVELOPMENTS ANDWHAT WE CAN EXPECT IN THE FUTURE

POLICIES AND GUIDELINES ON THEDEVELOPMENT THAT IS PROPOSED WITHIN ANAREA,VICINITY AND REGION

WHAT IS STRUCTURE PLAN /LOCAL PLAN?


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STRUCTURE PLAN

KEY ELEMENTS TO LOOK OUT

1. Residential

2. Commercial3. Industry

4. Environment

5. Community Centres

6. Landuse

7. Infrastructures / Utilities / PublicTransport8. Infrastructures / Utilities / Education9. Infrastructures / Utilities / Facilities


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DEVELOPMENT / PLANNINGANNOUNCEMENTS

WHAT IS IT?

It is an announcement made by the the localauthority informing the public on theproposed development that is going to take

place in an area

HOW CAN IT HELP ME?

It indicates that proposed development that isgoing to take place. IF a development is going

to effect your property, you can submit anobjection to the authority.

In most cases, public ignore thisannouncements!

GUESS WHAT HAPPENS?


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WHERE CAN I GET TO KNOWABOUT THESEANNOUNCEMENTS?

Newspapers and& Local authorities


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3. Positively GEAR!

Establish NET WORTH.

Establish if POSITIVE or NEGATIVEand identify what is making it

positive or negative.

Eliminate negative positions.


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3. Positively GEAR!

Get your HOME valued

immediately.

Use the equity to borrow moremoney ONLY for positive cashflowproperties that exceed your loan

interest rate by at least6%.(properties in correct cycle)

This brings in EXTRA Cashflow! Andmakes you cash rich!


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3. Positively GEAR!

Sell any NEGATIVE cashflow propertiesthat have minus yields from tenantsand have no equity in the right cycle.

A non-performing property is definedas a property that performs badly in

every cycle.


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3. Positively GEAR!

Portfolio Positioning;

At all times your portfolio must begiving you a positive cashflow that

is enough for you to live yourexisting lifestyle, meaning youdont have to go back to work.

If you want a better lifestyle youmust first determine what lifestyleyou want and what that is going tocost you and re-gear your portfolio

accordingly.


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3. Positively GEAR!

Property Positioning;

All property purchases must fulfillthe 8 disciplines of property

investment to sustain compoundgrowth


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4. Negotiation


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4. Negotiation

The ability to negotiate willdetermine your profit on day one.Effective Negotiation makes yourcapital appreciation on the first

day, NOT the first five years!


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Negotiate: most of profits aremade when you purchase!

Be aware of their BODY LANGUAGE

Ask supremely quality questions(DBM)

Listen with complete intensity

Seek first to understand, then to beunderstood Build Trust Present solutions for the best

DEAL! But dont appear desperate,go through the process


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NEGOTIATION TOOL KIT

Be in control and KNOW your outcome.

Make the other person see clearly the

advantages of a doing a deal with you! Itmust be win/win.

Make sure your research has been diligent.

Make written offers LOWER than the askingprice and ensure you request for a signedcounter offer from the vendor.

NEVER BE DESERATE TO GET THE DEALNEVER LET THE OTHER SIDE SEE THI


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NEGOTIATION TOOL KIT

Make a pact with your life partner BEFORE you enter anynegotiation.

Always take your chequebook.

Dont get excited. Take the posture. Be prepared to walk away at ANY TIME if the vendor is

not being flexible and meeting your needs. Always ask owner what they are willing to sell for. Always be silent after making your offer. Make them aware you can make a deposit payment on

the spot (this makes them greedy for your money andthey are susceptible to drop price).

Dont listen to brokers.


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FIND MOTIVATED

SELLERS Ask Brokers. Analyze advertisements (how

long). Advertise for them! Use your relationship leverage;1. Bankers, Bank/Manager2. Collection officers in bank3. Lawyers, not just your own.

Survey areas.


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Know why they are selling(you only know this from building

rapport!) Over committed Properties not giving them growth or income Need to pay for childs education

Loss of income, retirement, sickness, jobless Bad leverage, no exit strategy for them DIVORCE or BAD Relationship Migration Need Bigger House Estate under dispute Multiple repairs needed Bad neighbors!


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DETERMINE YOURRESOURCES

How much can you borrow comfortably? Assess your credit rating through your bank

How much do you want to borrow?

All you can? OR save some borrowing power for nextpurchase?Borrow Less, build reserves faster, less risk for marketforces.However, less money you put down (more you

borrow), the HIGHER your potential return!!!

As return is calculated as gain/investment plus themoney you stand to lose if deal goes awry

How much do you need for DOWN PAYMENT?Estimate type of deal you are comfortable with anddown payment needed


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ADDITIONAL FACTORS


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Financing your own

home To help purchase additional assets, you

can borrow 100% plus costs =

80-90% Against property you are buying,the rest from your existing equity

(Suburb must grow at least 10% beforegood for growth portfolio)


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MICRO PRICE DRIVERS

Highest Point View Space Access to amenities Renovated Privacy Security Freehold/Leasehold/Reserve Neighborhood Occupancy rate Developers track record Physical Characteristics

Homeliness In tech


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Know your purpose!GROWTH (Capital Appreciation)

and/or INCOME

If not doing EITHER, you are

NOT geared effectively! Andyou will definitely haveliabilities concerning yourproperty/ies.

Psychoponic and learn whatyou can do with them!


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Do your research like amaniac!!!

What City? Tourist Location?Business Location?Residential Location?

Potential Growth? Demand, Population, jobs, desirability, what growth ishappening but most importantly WHY?

Property TAX? Different area = different tax implications make sure yourfinancial analysis reflects these numbers

Areas of interest (creates broader rental market) Transportation ( be CLOSE to as many forms of transport!)

Amenities (Schools, shopping, parks)


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THREE TYPES OF

PROPERTY BUYER1. Retail Uneducated, buy the

package.

2. Partial Know they have to invest,but dont have educated eyes yet.

3. Astute Educated eyes, in totalcontrol, are GEARED in investmentand positively gearing their portfolio

allocations


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TIMING STRATEGIES

Ready mades Add value Stressed developers Land Bank and develop small

blocks Buy wholesale at DEEP discounts

Off the plan in fast rising marketsand sell for profit

Financing Refinance in rising

markets to get equity OR fixloans/variable


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Know ALL your costings

Borrowing costs Interest payments Water rates

Property Management Advertising fees Stamp Duty Settlement costs

DONT INVEST IN CEILING PRICES.


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What are the PROPERTYLAWS?

YOU CAN Have a deposit refund.Expect to wait 3 months for

transfer of title. USE YOUR CPF

CONTRIBUTIONS INYOUR ORDINARY..

YOU CANT


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SINGAPORE PROPERTY TAXSTRUCTURE

NO LIMIT to amount of mortgageinterest you can deduct against

your rental income for taxpurposes.


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BUY WITH EDUCATED

EYESKnow which properties to buy.

CHOOSE THE AREA YOU WANT TO INVEST IN! DO CAREFULRESEARCH TO ESTABLISH THIS AREA. GROWTH ORINCOME?

RESEARCH THE AVERAGE SELLING PRICE IN THE AREA,KNOW WHAT UNRENOVATED HOUSES ARE SELLINGFOR ON AVERAGE AND WHAT RENOVATED HOUSESARE SELLING FOR ON AVERAGE

Then you will know your HOLDING COSTS.

Calculate price you can pay, set it as your HIGHEST PRICE,otherwise walk away.

People who want to sell, will do shocking things to sellOut of making 100 written offers, 3 or 4 will be accepted through

one year. AND THE DEAL OF THE DECADE HAPPENS ABOUT ONCE A

WEEK!


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BUYING RIGHT Think of your own database when you buyand how to

leverage from them.

DEAL DIRECTLY WITH THE VENDOR AT EVERY OPPORTUNI

Make written offers for 80% of the price, DONT WORRY IF THEYARE DECLINED.

ASK FOR RIGHT TO SHOW HOUSE BEFORE SETTLEMENT TODATABASE IN PRIVACY (strategy for wholesale buying andselling) within 24 hours notice

92% of current value, get database to make offers

ON SELL YOUR WHOLESALE BUYS


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WHOLESALE BUY

Replace your salary wholesale buying 2 to 3 propertiesa year

USE advertising to attract e.g

MOTIVATED SALE (Suburb) Owner must sell

92% of market valueOwner needs very quick sale

Please call ..

Think like an entrepreneur!


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MIXED USE INVESTMENT

SHOP-LOT Top floor can beresidential, this can qualify for

CPF contribution

(Check other criteria, cycles, areas,etc, shop-lots can be risky if youDONT KNOW!)


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LAND CONVERSION

KNOW THE TOWN PLANNING, EIA andTIA

If your proposed land conversion FITSwith TOWN PLANNING REQUIREMENTyou convert very quickly and finance thewhole development.

E.G. Country Heights

Good Negative Gearing Strategy, but toreduce risk do youre your researchbefore you buy!!!


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RESIDENTIAL INTOCOMMERCIAL

Prime Example, Jalan Maarof,Malaysia.

Residential bungalows sell for RM1,200,000

Once converted into commercial,fetching RM 4,500,000!


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RENT TO OWN?

Buy property with tenant in mind,option sell the property to them,

they pay you a non refundabledeposit, in return, you fix theprice and discount their depositfrom purchase price

FURNISH IT NICELY

Filter callers


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SHORT TERM LETTING

Buy a house with POOL, four or fiverooms, butler/maid for migratingexpats OR business people.

Great market for migrators, maybeoffer an extra service to find schools,etc and integrate them into thecommunity.

HIGH RENTAL EASILY ACHIEVED,LONGER THEY STAY THE CHEAPERYOUR RATE.


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CONSIDER BROKERINCENTIVES

If you are time poor, considerincentives for your agents and

brokers to find you the targetproperty.

Make sure you give them all your

criteria first, so they are targetedand focused on your needs as aninvestor.


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FINDING THE RIGHT

BROKERS Bottom line- theyve gotta know

your area as well if not better

than you. They have to be excellent

communicators.

They have to have the right trackrecord. They have to let you speak to the

vendor personally.


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SURROUND YOURSELF WITEXPERTS!

LAWYERS know to leverage the law and use agreementsthat suit your terms.

ACCOUNTANT Hook up with one who is ALSO an investorhim/herself. Dont get advice if they are not

FINANCIERS Shop around all the banks and financiers, bein the know, remember, banks are there to serve you.

BROKERS dont just use one broker, shop around, use afew and test them out, dont rely on their research.

AGENTS There are so many, but these people wont tellyou the best investments, thats up to. IT IS VERY DIFFICUILTTO A WEALTHY AGENT!

Why are you still working with people who are not wealthy!


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POSITIVE OR NEGATIVE?

High Growth mostly gives lowrental so NEGATIVE gearing

means you must contribute to thepayments after rental income.

THIS CAN BE VERY PROFITABLEbut make sure the cost of

borrowing does not exceed thecapital growth/rental income or

not worth it.


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POSITIVE OR NEGATIVE?

Residential assets go wherethere is a shortage of

accommodation. Can be LOW yield as long as

income consistent. USE YOUR

RESEARCH. Use POSITIVE gear properties to

fund your hi growth negativegearing properties


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POSITIVE OR NEGATIVE

Anything under $100 EXTRA a weeknot worth it!, takes up too much

borrowing power.

GEAR SMART, use it to cash-flow

your whole portfolio and mix it,dont do all Negative, dont do allPositive!


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POSITIVEGEARING,

EXAMPLE $150,000 purchase, 6% cost, to borrow= $9,000 per year before other costsRental return of $350 per week

= $16,800Annual income $7,800. Use this income to

service borrowings on your capital growthportfolio

NEGOTIATE and offer tenant 5 year lease and

guarantee you wont sell house.

TENANT HAS CERTAINTY! WIN/WIN, low capitgrowth but excellent income producer!


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INSURANCE!

Every time you positive gear, create more suretyand protect against tenant misuse. BUILDINGCONTENT insurance, inc. appliances, water heater,etc.

Also purchase landlord insurance

Protect yourself, against income, disability,accident and loss of life

THIS REDUCES OVERALL COST AND RISK

GET YOUR AGREEMENT WITH TENANT OPTIMIS


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ESSENTIALTENANT

STRATEGIES


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TENANT DUE DILIGENCE

CHECKLIST Never EXECUTE any agreement

until you have received payments

in FULL and they have qualified inyour tenant checklist.


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POSITIVE GEAR WITHTENANTS

Tenants love. ConvenienceCleanliness

CertaintyLightSecurityViewsCar parks, with 2 spaces with securityHome OfficesFeng ShuiLifestyle


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TENANTS DONT LIKE

RESPONSIBILITY of ownershipBad maintenance

Bad renovationOLD stuffDARK

Stuck in the sticksHigh rent increases!READY TO MOVE IN!


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Know your tenants/buyersdreams..

Bathrooms and Kitchens.1 attraction Properties that are not well presented will

elicit negative emotions. And people will turnoff in less than ten minutes.

Be aware if they drive past the property andit dont look good, they will keep driving

Houses are bought with emotion if not astute

investors. Look for greenery, bath,toilet potential,

sunlight, noise, emtpyness, car parking Watch if facing a T-Junction.


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Be prepared to

Rejuvenate Paint job can transform and

fairly inexpensive

Tidy outside Floor Front entrance

Doors, wardrobe space, handles,etc.


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ALREADY OCCUPYING

It is OK to buy with tenantoccupying, make a new deal with

them to achieve certainty OR ifyou KNOW is bad tenant, makesure they are out of the housebefore you buy it!

And before you buy it CONSIDERfinding a tenant, that way you cantest the market!!!


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Always Rent/Sell yourproperties furnished!

Everything is in the presentation!.Present well even if you have toborrow the furniture, make ithomely to your target market,

make it smell nice, make it clean


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USE YOUR TOOL KITFOR ANY GIVEN CYCLE

And REMEMBER, PLACEYOUR TOOLS IN THE RIGHT

TOOL BOX! (MINDSET)


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HOLDING COSTS = TAXADVANTAGES

50% tenant

30% tax

20% you


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EXIT STRATEGIES!

You must have protection for ANYdownward spiral. Your EXITstrategies are just as important asyour ENTRY ones.

Be very aware which IF your

properties are fulfilling theirpurpose: Growth and/or Income.If not take action.


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NON-PERFORMING

ASSETSDO something with it. Gear DOWN pay down your loan so that it

becomes CASH-FLOW positive. Use extraincome to buy other assets.

OR add value to get it moving (rejuvenate) , ifwrong location consider selling

OR if in city, consider transforming into short

term, fully furnished, rental unit, like serviceappt, work out how many nights you canbreak even on

OR Let out rooms and make it a low costSHARED accommodation unit.


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DIFFICULT TO GET HIGHGROWTH PROPERTY TOGIVE HIGH RENT

SO USE OTHER AVENUES TOFEED YOUR NEGATIVE

GEARED GROWTH!


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DETERMINE THE TYPE OFINVESTMENT

LandSimple, banked, build, rented to farmers or other land users,often used to speculate on up and coming areas, easy tomanage (no tenants) normally requires long term commitment

Single Family HomeCommon, quite easy to manage, cater for most families, loaneasy, not best return on investment

CondoNo Land, governed by group, maintenance fee makes easier to

manage, little control of monthly fees, strict rules

CommercialRented by businesses, tenants more sophisticated, pay highrent, large, complicated contracts, expertise, long term leases,needs different approach and experience to residential market


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Determine your Due

Diligence Never assume ! Macro Perspectives

1. Structure Plan - Strategic planning framework fordevelopment and land use in line with national andregional policy.

2. Local Plan More detailed policies and proposals oflocal plans and decisions on planning applications.

3. Environmental Impact Assessment (EIA) gives an

overview of environmental issues at your location.4. Traffic Impact Assessment (TIA) indicates traffic

situation in area, proposes solutions to trafficsometimes through building additional infrastructure.

5. Newspaper, Magazines, media on latestdevelopments in the area.


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MICRO PERSPECTIVES

1. Physical Structure

Paint Electrical Wiring Roofing Plumbing Property Age Basements Foundation Insulation Termites! Property Shape (Feng Shui)


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MICRO PERSPECTIVES

2. By Laws

Land Title Building Title Trust Deed

Charge on Land and/or building

Strata Title (such as apartments, each unithaving its own title. Malaysia can createchallenges for this


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Determine the FinancialImplications

Purchase Price True Market Value Closing Cost Rental Income Renovation Cost Vacancy Rates Internal rate of return Expected capital GROWTH rate Expected Inflation of rents and expenses (Often ignored) Mortgage Interest Rate (variable or fixed) Mortgage Structure (interest only or principal and interest) Property management fees Property taxes Maintenance Repairs Mortgage Application Fess Your income level Prevailing Tax rate!


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Determine How to

Finance Mortgage (First Mortgage)

Common and easy to use, bank, mortgage broker,or now online. On Conforming properties (1-4 unitsthat meet criteria) are available up to 80% of value,

so need 20% from alternative source Down Payment

Higher, more chance of better approved mortgage(could anyone help you?)

Seller FinancingCan significantly reduce amount of money you need,the seller CAN finance all or most of downpayment!!! (Contract for deed = no money down)mortgage rate can go up if small deposit

Using equity from your portfolioCreate a second mortgage on your existing propertyto buy more if you have the equity!


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OTHER FINANCIAL RESOURCES

SavingsCPFBank LoanInsurance policy special cash-out clause OR cash

valueGovernment loanEmployer loan

Use existing equity from your present portfolioParents loanMortgage parents home


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CREATIVITY CAN

BLOSSOM Lease option investing No cash down

Seller Financing Overpay with cash out Assume the mortgage Trade Properties

Partnership Investor group increases leverage Many others can be looked at


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Creative outside

financing 1. Low start mortgage, from 0%2. Variable or fixed3. No fees4. Credit line facility5. One source for all6. Switch mortgages7. Revalue8. No deposit developer deals (but

price top-loaded)


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APPENDIX A:

CASE STUDY EXAMPLESTO ASSIST FINANCIAL

FREEDOMCALCULATIONS:


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SINGAPORE (growth)

Caspian January 2009

Lakeside drive, Singapore2009Purchase price :-S$550,000Flip Price :-S$880,000 (April)

10% deposit: S$ 55,000 (unsecured loan)PROFIT: S$ 330,000 in 25 MONTHS!!!!

MUST TAKE ADVANTAGE OF ECONOMICCYCLES!

Rental potential :- S$4,500 (8%++)


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USA

Cleveland, Ohio, USA

BMV

75%++++++++fully renovated & modernized andwith tenant guaranteed for 3 years5 bedrooms/ 2 bathrooms, detached property14,000sq. ft lot size

PURCHASE PRICE ONLY: USD$45,000!!!!!RENTAL: USD$ 950 per month (mortgage cost onlyUSD$ 190 per month!)

RENTAL YIELD: 22.5%!!!! (net) NET CASHFLOW$ 9K +!!!!


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MALAYSIA

Apartments - Cyberjaya

Owner Asking :- RM225,000Bank Value :- RM260,000

Financing :- 90%-RM234,500

Profit :- RM9,500 (tax free)

Positive Cash ( per month) :- RM800Rental for Student accommodation

is in the range of RM 400 to RM650


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MALAYSIA

Apartments Owner Asking :- RM85,000

Developer Price :- RM126,000

Market Price :- RM101,500

Financing :- 90% -RM91,350

Profit :- RM6,350 (tax free)

Monthly Installment :- RM 560

Monthly Rental :- RM 1,150

Positive Cash ( per month) :- RM 490

Cost (S&P, Legal, etc) :- RM3300


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APPENDIX B:

FINANCIAL FREEDOMCALCULATION SHEETS :


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________________________________

BY CASHING IN YOUR SHARES, INSURANCE POLICY,JEWELLERY, GOLD & SILVER & ITEMS YOU HAVE NOT USED

FOR AT LEAST 6 MONTHS HOW MUCH CASH CAN YOUGENERATE:

____________________________

HOW MUCH OF THIS CASH DO YOU NEED FOR YOUREMERGENCY FUND? (3 to 6 months salary):

____________________________

HOW MUCH CASH CAN YOU STILL USE: (total cash minusemergency fund):

____________________________


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________________________________

BY REMORTGAGING OR SELLING YOUR EXISTING PRIVATEPROPERTY OR HDB HOW MUCH CASH CAN YOU GENERATE?:

(60% LTV)

____________________________


remortgage/house sale):

____________________________


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_______________________________

HOW MUCH CAN YOU BORROW AS AN UNSECUREDLOAN? (4 times monthly salary) & HOW MUCH BALANCE

DO YOU HAVE LEFT ON YOUR CREDIT CARDS YOU CANBORROW?:

____________________________


remortgage/house sale + unsecured loan):

____________________________


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_______________________________

WHAT ARE YOUR TOTAL LIVING MONTHLYEXPENSES (include all cash it takes to live your

existing lifestyle?

____________________________



____________________________


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Continued..

WHAT PROPERTIES CAN YOU BUY WITH YOUR BORROWING POWER AND WHAT

YIELD DO YOU NEED TO PAY FOR ALL OF YOUR CURRENT LIVING EXPENSES?

__________________________________________ _____________

__________________________________________ _____________

__________________________________________ _____________

__________________________________________ _____________

__________________________________________ _____________

__________________________________________ _____________

__________________________________________ _____________


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188

APPENDIX C:

MENTORING LINKS & VIDEOS:


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Compilation of useful websites

For sourcing for listings:

www.PropertyGuru.com.sgwww.Iproperty.com.sg

www.St701.com.sgwww.PropMatch.com.sg

www.data.com.sg

Straits times Classifieds

For past transaction;

www.data.com.sg www.Streetsine.com

www.URA.gov.sgwww.HDB.gov.sg

For latest policy & local maps;

www.URA.gov.sgwww.HDB.gov.sg


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http://www.data.com.sg/http://www.streetsine.com/http://www.hdb.gov.sg/http://www.hdb.gov.sg/http://www.streetsine.com/http://www.data.com.sg/http://www.data.com.sg/


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International Research Websites

For UNIVERSAL demographic listings (population, etc):

www.demographia.com

For SUBURB news and tracking of new developments;

www.onlinenewspapers.com

To actually see the local plan, facilities, amenities; worldwide;

www.walkscore.com


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no money down property millionaire within 24 months work book

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