Is 10+ Properties Really Possible in 12 months?

This would be achieved with considerable equity and high disposable income. 

Buying burnt out properties are not Nathan Birch's approach. He has done very few burnt out properties actually in the scheme of his 150 properties. He did a few burnt out and vandalised properties as he was bored I think. He's moved on to bigger and better things. He never did like getting his hands dirty. I love his one that he moved in to and did a video series.

It is possible but as FMS said you need equity to start (not necessarily a very high income).

The strategy usually involves buying under market properties and doing a reno (sometimes it may be one paint so low cost). Then get revalued (yes this can be difficult in under 6 months with some banks). So you may not buy 12 in the first year but once you have a couple and they have the equity to withdraw you can ramp up the buying.

You don't need a massive income if you concentrate on getting good yield./ This doesn't necessarily mean you have to forgo CG. If you buy a property under market and do a reno the yield is higher. If it's neutral CF then the bank won't have a problem with servicability. 

My plan was to buy one a year but it gets addictive and you just keep buying. As soon as one settled I got pre approval for the next. Even if I didn't want to buy straight away I had it ready just in case something came up.

I know several people that have bought over 5 properties a year. None are on high incomes. One young couple moved in with their mum to save money. They bought more than 10 in a year.

If you want a big portfolio just buy one then keep going. You don't need to say "I want to buy 5 this year". It starts snowballing once you find a winning (for you) strategy. Everyone is different. I have friends that say "OH I wouldn't buy a house out there". Now they are asking me how I can afford to retire early. LOL Cashflow is King!

You're starting to sound like Nigel…. scary!

Multiple properties even of low value (using a buy renovate revalue strategy) lets you produce greater on paper equity (IE house bought at 100k, spend 10k, revalued at 140k but could only potentially be sold for say 130-135k). Which lets you leap frog quicker into more expensive quality houses.

LVR's play a part here too. If there's LMI involved (which it doesn't  like from the OP's post) then lender selection becomes even more important -as you don't want to reach exposure limits with either LMI provider too early.

All in all, it's possible – but as mentioned above, don't focus on the quantity of properties -the quality of the investment is more important. 

Cheers

Jamie

I work with several clients who, like yourself, are working overseas and therefore do not have access to all the same mortgage products as those residing here in Australia. However it comes down to careful property selection. I have not had a problem with consistently finding solid property that yields well, thus allowing my clients to keep buying.

Hi Steve,

Hope you are well?

Anything is possible but it all depends on the following, how much equity you have, cash and investing experience.

For the time being, ask you self this why do you need to buy 10 in one year? Why not start with one or two and then build from there.

Investing takes allot of hard work, patience and precession.  

For me personally I have a small property portfolio that is doing quite well for me and over the last two years my goals have changed, My PPOR is almost paid off and my other IP has a very small loan of 130K and the house has been valued at 400K.

Some would suggest access equity any buy more property, but for now I would rather have a low loan to value ratio.

There are allot of ways to invest, so have a look at all the possible ways and choose a strategy that fits you.

Also looking at your numbers this is why I am not buying property at the moment, Most people talk about high yields but to me if your rent does not cover your repayments and property cost why would you invest your money in a assets that just breaks even or makes a loss?

Hi Stevie,

Thanks for the reply, it great to see you are doing allot of research and reading.

Some people will agree and some will disagree with the following comment, For the last 15 to 20 years the property market went gang busters and investment growth was compounding at a crazy rate.

Some may say that the market has slowed down but in fact the market has some what decreased to normal levels.

So if you plan effectively there is no reason why you cant reach your goal and believe it not more wealth is generated in falling markets.

When people paint a doom and gloom picture I see it as an oppurunity to increase my wealth.

Hi guys. What are your thoughts here.

Stevie, have you heard about Vendor Finance? One of my best mates does it. Instead of properties being rented out, there sold on Vendor Finance.

Basic strategy I would use. Source average properties in regional areas like Townsville or Albury, Only buy what you can get 5% under value, do minimal cosmetics, resell on Vendor Finance 5% over value. VF isn't super easy, however CF is better then just renting them out. Buyers deposit could give you half your deposit back (flexible) and the bank (particularly if u just gave buyers a Lease Option) would see the higher yield on the property so your serviceability should higher as well supporting your next buy better.

PS. I prefer setting up Cashflow from Australia and living in cities like Shanghai, Chiang Mai, KL. Cost of living and partying is lower than Australia and a small AU+CF is plenty.