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Master Class Webinar:How to Replace Your Current Annual Salary

Through Property Investing in 10 YearsWith Ben Everingham from

Pumped On Property

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Master Class Webinar:How to Replace Your Current Annual Salary

Through Property Investing in 10 YearsWith Ben Everingham from

Pumped On PropertyThanks for joining us… Audio now commenced.

Can’t hear us? Please ensure your speakers are on, volume is up and not on mute.

You can test your audio in the control panel of the Go To Meeting software, under audio preferences.

We help investors build and manage

their property portfolios

Real Estate Investar’s tools

In partnership with…

Master class webinars• Designed to share

knowledge.• Desire to provide

extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A.

• We will run these regularly throughout the year, and sometimes involve our partners to provide additional insight.

Treat property investment as a business….

And build your team!

Welcome to Ben Everingham

DirectorPumped on Property

HOW TO REPLACE YOUR CURRENT ANNUAL SALARY

THROUGH PROPERTY INVESTING IN 10 YEARS

With Ben Everingham from Pumped On Property

What will we cover tonight?

• How to time the market more effectively.

• How to identify historically consistent markets, suburbs and streets before purchasing an investment property.

• Processes and tools to effectively carry out due diligence prior to placing an offer on an investment property.

• Simple ways to replace your income through investing property in 10 years.

• What not to buy.

Audience poll

How many investment properties do you currently own?

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HOW TO REPLACE YOUR CURRENT ANNUAL SALARY

THROUGH PROPERTY INVESTING IN 10 YEARS

How to time the market more effectively.

• Houses.

How to time the market more effectively.

• Units.

How to identify historically consistent markets, suburbs and streets before purchasing an investment property.

Markets

• Timing.• Population growth.• Job growth.

How to identify historically consistent markets, suburbs and streets before purchasing an investment property.

Suburbs

• Average annual historical growth rates.• 3 year growth.• 12 month growth.• Predicted price growth.• Rental vacancy rate.• Average days on market.• Average vendor discount.• Number of houses sold in the last 12 months.• Supply and demand.• Demographics.

How to identify historically consistent markets, suburbs and streets before purchasing an investment property.

Streets

• Sales history data.• Distance to:

• CBD.• Beaches.• Schools.• Shopping centers.

• Zoning.• Knock down re-builds.• % renovated houses.• % of renters.

Audience poll

Are you planning on buying an investment property in 2016?

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

1. Strategy session• Situation.• Goals.• Challenges.• Strategy. • Next Steps.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

2. Identify market.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

3. Identify suburbs.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

4. Undertake suburb research.5. Identify ideal property type.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

6. Research sales history.7. Identify target streets.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

8. Identify top performing agents.• Brief top performing agents.• Build relationships with top performing agents.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

9. Book and attend inspections.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

10. What’s important to a real estate agent.11. Submit an offer.

• Conditions.• Price.• Motivation.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

12. B&P inspection.• Building inspection.• Pest inspection.• Price.

Processes and tools to effectively carry out due diligence prior to placing an offer on a property.

Process

13. Bank valuation.14. Settlement.

Simple ways to replace your income through property investing in 10 years.

1. Capital gains

Assumptions:

• Purchase 5 properties over a 10 year period.• 10% deposit.• 5% capital growth p.a.• Repay home loan at 2% p.a.• Buy properties with a 4.5% – 5% rental yield.• Increase rent by 3% p.a.• Rent property for 50 weeks p.a.• Holding costs are equal to 20% of annual rent.

Simple ways to replace your income through property investing in 10 years.

1. Capital gains

Where do you end up in 10 years?

• Property portfolio is now worth $3,388,109.• Debt $1,765,659.• Annual rent $142,252.• Pre-tax cash flow position -$9,795.• Net equity position $1,622,450.

• Average annual increase in the value of your property portfolio $81,122.

Simple ways to replace your income through property investing in 10 years.

1. Capital gains example

• Luke Taylor.

• <9km from Brisbane CBD.• 3 bedroom house. • Purchase price - $405,000.• Comparable sales - $460,000.• Rent - $400.• Rental yield - 5.14%.

Simple ways to replace your income through property investing in 10 years.

2. Cash flow

Assumptions:

• Purchase 5 properties over a 10 year period.• 10% deposit.• 2% capital growth p.a.• Repay home loan at 2% p.a.• Buy or manufacture properties with a 6% - 7%+ rental yield.• Increase rent by 3% p.a.• Rent property for 50 weeks p.a.• Holding costs are equal to 20% of annual rent.

Simple ways to replace your income through property investing in 10 years.

2. Cash flow

Where do you end up in 10 years?

• Property portfolio is now worth $2,905,917• Debt $1,900,291• Annual rent $218,545• Pre-tax cash flow position $41,816• Net equity position $1,005,626

• Average annual increase in value of your property portfolio is $20,112, plus your pre-tax cash flow position of $41,816

Simple ways to replace your income through property investing in 10 years.

2. Cash flow example

• Jason Mills.

• Sunshine Coast.• 5 bedroom dual occupancy. • Purchase price - $445,000.• Comparable sales - $460,000.• Rent - $650.• Rental yield – 7.6%.

Simple ways to replace your income through property investing in 10 years.

3. Capital gains and cash flow

Assumptions:

• Purchase 5 properties over a 10 year period.• 10% deposit.• 5% capital growth p.a.• Repay home loan at 2% p.a.• Buy or manufacture properties with a 6% - 7%+ rental yield.• Increase rent by 3% p.a.• Rent property for 50 weeks p.a.• Holding costs are equal to 20% of annual rent.

Simple ways to replace your income through property investing in 10 years.

3. Capital gains and cash flow

Where do you end up in 10 years?

• Property portfolio is now worth $3,807,219• Debt $1,765,659• Annual rent $235,930• Pre-tax cash flow position $65,148• Net equity position $2,041,560

• Average annual increase in value of your property portfolio is $102,078, plus your pre-tax cash flow position of $65,148

Simple ways to replace your income through property investing in 10 years.

3. Capital growth and cash flow example

• Shane Foley.

• Central Coast.• 3 bedroom house. • Purchase price - $337,500.• Comparable sales - $360,000+.• Rent - $370.

• 2 bedroom granny flat. • Purchase price - $110,000.• Rent - $300.

• Combined rental yield – 7.41%.

Audience poll

Which of the 3 simple ways to replace your income

through property investing in 10 years looks best to you?

What not to buy.• Any property being sold above market value.• Property in a declining market.• Property at the peak of a market.• Property in a highly volatile market.• Properties in suburbs with a rental vacancy rate above 3%.• Artificially inflated product from a property marketer – 80% of brand

new product is Australia is sold through property marketers.• Property with poor long term historical growth rates.• Property in a suburb where prices over the last 3 years have

increased in value at a faster rate than long term averages.• Over supplied inner city units.• Off the plan property at the wrong time of the property cycle.• Property without the potential to add or manufacture value.

What do I like to buy?• Property being sold below market value.• Property in a rising market.• Properties in suburbs with a rental vacancy rate below 2%.• Property with strong long term historical growth rates.• Property in a suburb where prices over the last 3 years have

increased in value at a slower rate than long term averages.• Property with the potential to add or manufacture value, including:

• Renovations• Additional bedrooms, bathrooms and car parking• Granny flats• Duplex’s • Subdivisions

• Dual income property.• Brand new property.• Property in a market showing strong employment and population

growth.

Who do I like to buy it from?• Brand new real estate agents.• Real estate agents selling property in an area that is not their

primary focus.• Under performing real estate agents – 90% of real estate agents

earn less than $50,000 per annum.• Property managers.• Owners.• Highly motivated vendors.• The State Government.• The Public Trustee. • Distressed land developers.

We are a full service buyers agency who

helped our clients buy and build over

$30,000,000 worth of property in 2015.

We have featured on:

We help first time and highly capable

investors…

Buy existing houses, units and townhouses in growth markets.

Build brand new houses in growth markets.

Buy and build dual occupancy and duplex properties with above average rental yields.

Complementary Strategy Session.1. Request a 15 minute no-obligations chat with me here: https://calendly.com/beneveringham85/pumpedonproperty

2. Book a complementary 60 minute Strategy Session with me here:

http://www.pumpedonproperty.com/free-strategy-session/

I would love the opportunity to see if we can help you develop a clear investment strategy.

By the end of your Strategy Session you’ll have identified:• Where you are and where you want to be in 1, 3 or 5 years from now.• The road blocks currently holding you back.• A clear property investment strategy.• Your next action step.

Complementary Strategy Session.If you book a 15 minute chat or a 60 minute Strategy Session by close of business on Friday I will email you a copy of our 83 point checklist…

Checklist For Inspecting An Existing Property.

Question Time.

Book a complementary Strategy Session with me here:http://www.pumpedonproperty.com/free-strategy-session/

Thank you for attending!For tuning into tonight’s webinar, we’ll email you a copy of Ben’s Cashflow Calculators:

1) Capital Growth2) Cash Flow3) Capital Growth & Cash Flow

Questions?

Request a complimentary 15-minute no-obligation chat with me to see if we can help you with your next purchase or with working out your portfolio goals.

Step 1 – Book 15 min chatinfo.realestateinvestar.com.au/pumped-on-property

Step 2 - Book in a strategy session www.pumpedonproperty.com/free-strategy-session