Property Investing Course

I did the course at Tafe and its a piece of cake it won't take up much of your time but i decided to stay working where i was. It was much easier to build a portfolio with a shift working job rather than 9 to 5 hours that is if you want to build a big portfolio or a small portfolio. If your looking at having a small one a 9 to 5 job would be fine. Just my opinion but,

Tony

I'm 17 as well completing my last year at school, its good to see someone with similar interests. I was planning to do a B Commerce majoring in Accounting/Finance as I'm work in one of these fields, good pay and should give me a good knowledge of my own finances which is a bonus to my investing interests.

I think doing a course even if you didn't want to work in the field would be good, knowledge is power. However, you should also know to leverage and learn off people who are smarter than you, meaning experts in these industries (Chartered Accountants, Lawyers etc). 

Also, how have you found Margaret's book? I'm interested in reading some of hers.

Hello Daniel, 

I am 24 and finished my property and construction management course last year. While I think it was good that I did the course, as it has lead to me establishing an income, I can honestly say that this forum alone has given me more knowledge about investing in property than all my studies combined, not to mention all the work experience and other resources that I have seeked out.

My one piece of advise which may or may not apply to you but it is one thing I wish I was told, is study to get a job that you really REALLY enjoy don't worry about the money, educate yourself on the side and invest to reach your financial goals. 

I may not be experienced enough to give this advise but given you are not too far behind me in age I feel I can relate very much to your situation. I am still yet to enter the property market and I often look at friends that are, for example, tradesmen earning 6 figure sums but spend it all on liabilities (booze) – if I had of done a trade I would have had an extra 4 years up my sleeve (my course went for 4 years and started after yr 12 in comparison to a trade which runs for 3 and starts at yr 10) I would be earning more and while my career path may not be as favorable, I would be enjoying what I do and be in a much better position to make real money through investments – you don't make money off salary – just look at all Australia's wealthiest, they don't get checks, they write them. 

That said, if your a Career Path person go for it! but if your after something more then don't follow the crowd .. it leads to a desk.

Hi Daniel and Jason, it's great to see some youth and enthusiasm here. I went down the education course,I have a BBus Commerce, worked for 3 years in banking (residential and commercial lending) also in accounting for 3 years. And farm financial consulting. I can analyse  a P&L and Balance sheet in my sleep, work with lvrs, budgets, the whole lot. And still managed to under-achieve for 20 years. 

What I didn't have was a mentor. And probably not the right focus.  And definitely not a natural saver. 

I agree with Claire's advice above – less courses and more work experience. Definitely find a mentor if you can. And work on your ability to save/budget – it's not sexy but its the fundamental basis of your ability to invest.  You need to learn to manage your money one 0 at a time. Learn to manage $10 then $100 then $1000 etc. 

Its also about practicing and improving your personal discipline. Learn to love delayed gratification.  Sacrifice today for reward tomorrow. 

And remember,bathe harder you work, the luckier you will be.

Hi Daniel and Jason,

Great to see you guys on the right path at such young age.

I love investing since I was at your age. But I never really got on to the right path and right education.

However, I was a very discipline saver.  I manage to save almost 60% of my wages. My income was really low at early 20. I was a chef. I was very happy and enjoy what I do.

I saw many friends in finance and accounting field making big money. I thought it was very good thing to make good money so I back to uni to complete Master in accounting and finance degree and got myself a finance job, which I don't really enjoy !!

Now look back I really saved more money at low pay cheffing job, then the ok pay finance/accounting job.  I guess end of the day, if you are happy with what you do you will have more surplus money left in the pocket. Because happier people manage money better, negative emotion tender to make negative decision when it comes down to money management.

Just a thought

I need to thanks Nigel Kibel point this out to me and I really thinking I need to do something I enjoy the most..

Regard,

Taylor

I think working in the industry is a good idea. However as a person who worked in General real estate for many years I would say this the only similarity between being a real estate agent and and an investment specialist is that we both deal in property. As an agent you focus on your next sale ands listing. They generally only deal in the area in which they work. I look and study strategy throughout Australia and also in the United States.

My point is yes getting a general job in real estate will provide you with some knowledge however keep in mind that less real estate agents invest in property than the general public. 

My intention has been for a long time to do finance at uni. As i mentioned earlier, I want to get a job in the industry, most likely at an investment bank and to do so i need to do B Commerce or another uni degree anyway. I understand where you and everyone else is coming from that experience is move valuable, but i need to do this specifically for my desired employment.

If i was interested in an unrelated field and wanted to learn about investing, i would most probably just do steve's IV cert (planning to do so in the future anyway) and save the 30k + from uni. Also, completing a whole degree to just learn about which lender to use seems pointless in my opinion. Sorry if i came across sounding like this was my reason for doing finance.

HI Jason – please accept any typos as I quickly bashed this out for you.

You can start when your 18 years old. You just need knowledge and drive.  A little money say $1000 even $1 yes $1 deposit if you know what you are doing. I am not a professional – just an investor. So take everything with a pinch of salt. I have done Steve McNights MEGA conference and packages, Dean Parker's package, Carly Crutchfield's CCorp Bootcamp and a few others like one day workshops with Mark Rolton . A few of these my son went to when he was 16 and got the bug. He is now 18 enrolled in Uni of Central Qld distance education program for Bach of Property. The quickest way to make money in my option is – when you're strapped for cash, is to do property options like what most property guru's inform us about. The big stuff comes later – developments etc. I encourage you to get along to a Mark Rolton's one day workshop for Property Options and he shall explain it clearly. In short, you have 3 people: Seller, option holder (that's you) and the buyer. Let's do an example – You find a great property that has its owner residing on 1000 sq metres. House on front with enough room to build say 4 townhouses on back. You have to do a lot of research first and take the guess work out. Go on RPData or INVESTAR – I personally like the latter because the former has about 6 search variables – whereas the latter has 33. Go to Council ask them that you are looking in a particular suburb/s and what is the Council wanting in that area – they may say high density housing – like say 2bed townhouses. Check the zoning via the coloured maps available online at council for free. Tis should narrow down your area. You hand write neat clear and concise personal letters to a bunch of owners from your chosen area. Don't go mad and write 100 letters because if half reply to you then you are in trouble. Write 20 or say a short street. That should get the neighbours talking – never under estimate the power of a chat at the fence or front garden while watering their vegie patch. You are looking for an expression of interest to sell their property. Once you have got some or a reply. Arrange a meeting. Dress neat and casual – take dad since he sounds like he knows what he is doing. Don't come across like some power hungry developer – be truthful, sincere, honest, polite and dress neat in good casual clothes. Ensure you are groomed – hair cut and don't forget to shave. More than likely your target audience shall be the top end of the baby boomers. That's born 1946-64. So demographically older single persons or couples – who may be thinking of moving into a retirement home etc.  Arrive out from 10 minutes early than meeting. now to the guts of the deal. There is a lot more that Mark Rolton can fill in – but here goes: You need to find out what the owner would like for the property – now let's be clear here, you would already know these details from your research and downloaded of one of those website the complete history of this house and all houses in street and similar in suburb. So you should know how much the house is worth within a $5000. So you will know more than most real Estate agents in their own work area. That is very important. Your seller may say I would like $290k to get a good retirement villa. You know the property is worth about same or maybe a little less. But you have done all your homework already. You say I would like to take an option on your property for $350k. I bet this get's their attention.  He isn't sure what that means. You have to have on hand all the documentation regarding an option. You explain in simple terms and allow them, if fact go along with them to their lawyer, to explain to the lawyer what you are proposing. You want to take an option on the property for $1000 refundable deposit. Basic the seller owns the property, but upon option taking, you control  it. You then take the option for 24months say. Find a builder or developer who is looking for land to build townhouses. You know the developer (buyer) can build these for 150k each x 4 = 600k. You want to sell the option for the property to the buyer for 100k. The buyer knows he is still going to make money….let's see. 350k for house (happy seller), say 100k for DA and improvements on existing dwelling, 600k for build of 4 townhouses, that's 1,050k costs to buyer + 100k for you the option holder selling the option to buyer. That totals 1,150k. He sells dwelling for – let's say break even 350k, and townhouses for 300k each that's 1,200k. Take debits away from credits and buyer makes 400k profit. More importantly you walk away with 100k less your $1000 dep the seller keeps. Not bad for a simple deal. There is a fair bit of work to do before this occurs but I hope this gives you an idea. Go for it. The IP or intellectual property on the option documents is passed onto you when you do the courses like Mark Rolton Bootcamp – check out his website and call them ask them when his next courses are on – Syd, Melb and Hold Coast this year. Mark doesn't know me really and I get nothing from mentioning this to you so he seems okay with his imparted knowledge on Options. The bootcamps are about 7k each. A lot of money not really when you consider what you are getting and where you can go from there. Educate yourself and go for it. My son is. All the best…Regards Bruce ps. I hope this gives you some insight. Age has no boundaries as long as you can legally sign a contract.