Hi guys,
One of the benefits of being in this forum is meeting young people who have vision, ambition and commitment. There have been many who contacted me already , you know who you are, I salute you.
But yesterday, I met someone, not from this forum but from inquiries for my Cammeray property. Her name is Carole, she was originally from South America. She came here to Australia without a penny in her pocket. She came with just dreams, and desire for a better life.
Carole started out cleaning houses in the Eastern suburb. She's not a high-powered professional earning mega-bucks but a 10 bucks an hour cleaner. Well, but it was cleaning that gave her an idea.
Years ago, she was finding many people who couldn't met their mortgage repayment and hefty strata fee who were being weighed down by their financial obligations. With all her gut, she offered one, "let me your unit furnished for the price you need to meet your obligations." So overnight, the unit that made $500 per week, but needed $1,000 a week to service was in her hand.
She took over and with all the contacts she'd made, leased the unit to corporate high-flyers for $1,800 a week as a serviced apartment. She was taking $800 per week gross on the first unit, less her time and expenses, probably netting $500 per week. She now has dozens and dozens and is now an employer on her own right.
Do the math, if she were netting $500 per week per unit and she has 12, how much it that?????? She has dozens! She's helping people in trouble like an angel in disguise and making heaps of money.
This is what I call vision. This is utilitising what you have on hand and leveraging that in order to make money.
She's had a look at my Cammeray property and she saw a gold mine. Personally, I have taken it up to the best of my ability, it is now someone else turn to make it their project.
When I bought this property in Cammeray, it was being advertised as one with potential for 5% return. Through diligence, and management skills, I took that return to 9%. She, on the other hand, has the potential to make it 12%.
She's got a knack for design, and she's got the talent for doing cosmetic renovations. With her contacts, she can polish this gem to an amazing glitter. What an amazing woman.
At my age, I learned something new. I have discovered something and I can build on this. I'm still accepting proposals from newbies, and waiting for someone to tell me, I want it and this is what I'm going to do. If no one else comes in to the game, Carole's my obvious winner.
Newbies, it goes to show that if you have vision, you can do whatever you want to do and BE.
Take care, sweethearts.
Angel
Hey Angel,
Love hearing stories like this..very inspiring
If Carole on the forum, is not, why not invite her?
Cheers,
RobbieHi,
I am going to invite her. This is just the tip of the iceberg. I'm sure as we journey along, we find more superstars.
Angel
Great.. look forward to interacting with her on the forum. i'm sure Carole will benefit tremendously from being on this forum
This seems like a very smart idea!
let me see if I understand:
– She finds owners who need a certain value of rent pw
– She then finds a tenant willing to pay over that value and keeps the difference?Patrick
Amen!
But she can charge more only because she is able to provide value-added services. She transforms a fully furnished City unit into a serviced apartments. She provide cleaning, laundry, whatever Mr or Ms High-flier needs.
Value-adding is always a great way to increase income.
Angel
Great idea! Does she need to hold a Real Estate Agents licence in order to receive a commission in terms of property letting?
Robbiep,
It's not commission. She gives full disclosure to the owner. She tells them what she will be doing. In effect, she's subleasing the flats to corporate tenants as a serviced apartment.
The fact is had I met her three years ago, when I was negatively geared on my Hunters Hill unit, I would still own it today. Had someone said to me back then, "I will make sure you are neutrally geared, and it won't cost you a cent to hold on to this asset," I'd have given them the keys. Instead, I sold my unit. Although I didn't lose money on it, it would still have been better had I been able to keep it.
She's brilliant at what she does. Obviously she can't help everyone. Her investment mission is not to save everyone out there, Jesus our Lord and Saviour has already done that.
.She can't help those who bought over-priced, bought the wrong unit in the wrong location, etc. She can only help those whose asset will still allow her to make money after all costs are deducted. Let's face it, some units will not rent for $1,800 to $2,000 pw even if you throw in a chambermaid and a chaffeur in the deal. Chambermaid as in cleaning the unit, just in case there's a misunderstanding.
Angel.
O ok.. even though she is fully disclosing what she is doing (to the owner), i would think she would still need a real estate agents licence in order to receive money in terms of property letting?
Would the same rules apply if she was selling a property on behalf of an owner, whom she fully disclosed what she was doing, and received any sort of payment for the sale (in the form of a commission or referal fee)?
Interested to hear from other real estate agents on the forum.
Sorry for all the questions, but I'm just very keen to know exactly how thing relating to property (in terms of making money) are done in Australia.
Hi Robbiep,
I don't see why she'd need a license. She's not property managing. She's the leasee. She signed to lease the units and pays the weekly lease as per the agreement between leasee and leasors.
If during the Christmas and Easter stretch she makes $2,000 a week profit good on her. But bear in mind that then it is vacant, she is out of pocket. Her business is providing service, which just happens to involve accommodation.
I'm not naive to think that she's consistently making huge profit. I'm sure than just like any business, there are weeks when the margin is slim as it is subject to short-term visitor fluctuations. But overall, on average, she makes a healthy income.
I used to do this on a small scale when I was looking after international students. I leased 3 units near Macquarie Uni, furnished it and leased them out. My profit margin though was small, average $250 per week. On aggregate, it was $750 pw but it's more consistent as students stay for the whole two to three years to complete their courses. I didn't make the money she's making. Corporate high-fliers has more financial means and they stay in top-class accommodations. I take my hat off to her initiative.
Again as I said, in all honesty I don't see why she'd need a license. Other people may have a different opinion about it. At the end of the day, the only opinion that counts are those of the people she has helped. They aren't complaining.
I like her because she doesn't take advantage of people who are suffering financial hardship.
It is a blessing.
Angel
Dont get me wrong, what she is going is great.. its a win win situation for all parties involved and shes doing a great job
I'm just very keen to learn as much a posible about the rules and regulations in the industry here in Australia, thats all.
What a clever girl is Carole???? Good on her for taking the initiative, I take my hat off to her.
……..and to you too Angel, for sharing her story
A desalination plant has been built over the last few months here in W.A., 20 minutes North of the town I live & operate a business in. Quite a few of the construction workers were fly-in-fly-out, & one of the supervisors in the desal plant rented six 4 x 2 houses in his name from a local real estate agent, sparsely furnished them, then "sub-let" each bedroom to a fly-in-fly-out worker, their rent including electricity, water, gas & lawnmowing, plus some profit for himself, which partly included cleaning when they vacated.
He didn't "service" the houses, as Carole did, but he made enough profit to make it worth his while.
The Real Estate agent still did 3 monthly house inspections, so the tenants were responsible for maintaining the house in the condition stated in their original Property Condition Report.Hello,
Go to http://www.portofinoapartments.com.au.
This is her business. Imagine where she came from… penniless… cleaning lady… but gutsy.
Carol looks like an average girl in that she doesn't dress to impress. No frills. No blings. No trappings. She's just a nice genuine lady.
Thank God for people like her. So all of you,,,, may you be inspired to go for bigger and better things.
Angel
It’s amazing how many amazing & also very underground “wow” investors are out there
Hope to see Carol in the forum soon I had a look at the website and I dont believe a word of it. These are not tarted up 4 bedroom appartments split up to make 4 one bedroom serviced apartments.She is pulling your leg.
ricksta1969 wrote:I had a look at the website and I dont believe a word of it. These are not tarted up 4 bedroom appartments split up to make 4 one bedroom serviced apartments.She is pulling your leg.Did I miss something? I didn't see where she divided 4 bedroom apartments to make 4 one bedroom serviced apartments.
Hi cuteyoungchic,
You didn't miss anything. It wasn't a 4 bedroom apartment to make 4 one bedroom serviced apartments. I am familiar with the properties.
Angel
Very nice! Sounds like a self-motivator who’s got drive and determination to succeed. I believe it is important to work with people who are like minded not just in ideas but also attitude. Good work.
.
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