The person who inspired me to get started in investing. Inspiration was all i needed to get going – someone to show me the path.
I meet you at the Brisbane update and you signed my tatty copy of your first book – my investing bible for many years.
You’ve not only helped me create financial independence – in return I have been able to help my mum buy her first home and others with your investing system.
As promised here is a copy of my story in Your Investment Property mag.
*Edited later (Jun 2019) by Benny
I noted the links above no longer work. To add some value back, I have copied the original data from the magazine showing Darryl’s purchases, along with a quick summary of his actions. Apologies if the layout doesn’t quite make it……Locations___________Paid____ Reno___ New Value____ Rental/wk___ Yield
Broken Hill_________ 44,000___ YES_____ 95,000_______ 190_______ 10%
Broken Hill_________ 25,000___ YES_____ 79,000_______ 175_______ 12%
Cairns_____________42,000____________ 70,000_______ 140_______ 10%
Maryborough_______ 79,000___________ 130,000_______ 230_______ 9%
Cairns_____________45,000____________ 72,000_______ 155_______ 11%
Broken Hill_________ 39,000____________ 87,000_______ 170_______ 10%
Warwick__________ 120,000___ YES____ 185,000_______ 230_______ 6%
Park Ridge_________ 62,000___ YES____ 120,000_______ 200_______ 8%
Broken Hill_________ 39,000___ YES_____ 95,000_______ 220_______ 12%
Park Ridge (2 units)_ 225,000___________ 300,000_______ 440_______ 7%
Wishart – Unit______ 136,000___________ 180,000_______ 255_______ na
Kangaroo Pt, NSW__ 380,000___________ 480,000______ 1520_______ 16%
(4 x 2br Units)Totals Paid_______ 1,236,000_____ Value 1893,000_____ $3925/wk____ 10.8%
Darryl’s Success in numbers as at Dec 2013:-
Owns 16 Properties
Bought for $1236k
Now valued at $1,893k
Mortgages $1,017k (some borrowed for renos, etc)
Equity Growth = $657k
Total Income – $196k paMortgage payments – $55k pa (from pi.com article)
Other (rates, ins, maint) – $70k pa (my own estimate – conservatively high?).
Total costs – $125kProfit (living expense?) $71k ($1400 pw) – Income Tax not accounted for
Darryl re-visited us in May 2017 (see post further down) where he tells us he now owns 50+ properties and is securing his future by reducing his LVR’s further.
Go, Darryl !!Benny
Hi Darryl,
Congratulations !! What an inspiring achievement, especially for anyone else who doesn't earn a huge salary. My hat is off to you.
I'll have to go seek out the mag for myself, so I can read up on how you did this.
Benny
He's leveraged to the gills with circumspect valuations. Darryls in that very dangerous phase where he's waiting for equity growth to reduce leverage to a point that is sustainable long term. His $200k earner is gross TO and will in the main be consumed by servicing.
It's the most adverse risk profile you can have as a PI. The market moves against you in even a small way and you can be gone faster than a speeding bullet.
This stuff isn't rocket science. Most people are risk averse but when you're risking OPM things take on a different perspective.
Freckle wrote:He's leveraged to the gills with circumspect valuations. Darryls in that very dangerous phase where he's waiting for equity growth to reduce leverage to a point that is sustainable long term. His $200k earner is gross TO and will in the main be consumed by servicing.It's the most adverse risk profile you can have as a PI. The market moves against you in even a small way and you can be gone faster than a speeding bullet.
This stuff isn't rocket science. Most people are risk averse but when you're risking OPM things take on a different perspective.
Most of what you said is true.
Ive protected myself from interest fluctuation by fixing the loan for 2-5 years, if anything drastic happens then i can sell.
My current LVR is around 70% on all properties,
My current interest repayments are ~$55,000 p/a fixed for 2-5years, most of the houses i bought in broken hill were around 30k. When i did the original plan – for every $130k in income i would have $40k in expenses, and just worked back from that.
Early 2014 im buying unencumbered property for more cash flow and reducing my LVR to 60%. As Steve said, theres two phases – acquisition and consolidation. I think there will always be some loans against the properties, my ideal LVR is 20%.
You cant ask for everything when kick starting a company from scratch, however I was more scared of being someone elses puppet working for someone else. In the end i would do all this again not to EVER have a job again.
Good on you Darryl! I loved that article
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
WestnBlue,
I am Hari Yellina, I would like to congratulate you on the job Well done, I should buy a the magazine and read about your achivements.
Keep up the good work.
Thank you
Hari Yellina
Property Investor.
Hari Yellina
Email MeKeep Investing - Grow while Resting.
Nice work Darryl
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Darryl,
You are too nice. You can just tell people to put that in their pipe and smoke it. You are where so many of us want to be.
Congratulations.
Great job! Certainly there are some risks with this strategy but there are far greater risks with doing nothing. Love it!
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
Hi I would really appreciate if someone could give me a link to his strategy and story.
Thanks
Well Done Daryl! Very inspirational!
Hi all,
I was able to get a Back Issue from here late last year :-
http://www.yourinvestmentpropertymag.com.au/magazine/See the “Back Issues” section.
I note that the magazine from that date (Dec2013) doesn’t show for me now – maybe they are restricting me from getting another copy? I can’t think they have “run out” of electronic copies…
Or, could there be other reasons why it is no longer there?
Benny
Nice work mate!!!
For those keen on the digital copy it can be bought here – http://shop.keymedia.com.au/your-investment-property-1/?sort=newest&page=2
Cheers
MikeGreat result, well done :)
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Any update WestnBlue on how things have been going?
Love reading your story
Was back here to get my profile pic and saw my old post.
I still remember how excited & proud my mum was to see her son in a magazine – of course she showed everyone.
Ive hit 50+ properties this year but more in brisbane & sydney suburbian areas – its very unlikley will buy any more in regional towns only beacause i dont need to anymore.
In last 24 months I’ve been focusing on dual dwellings in the form of auxillary units which have been very good income & equity wise.
Might be a good time to try out commercial property. Growth is usually lower, but income is better and aggravation is, on the whole, better too.
Well done on your success. I am proud of you, and for you.
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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