Hi my name is Greg,
1- I read o to 135 a few weeks ago and was super excited to start my road to property freedom. Then I read 0 to financial freedom. Then realised a lot of the strategies may not be able to be put in place from 0 to 135. Can some one help me especially with the formulas used, like 135% rule for quick numbers on reno’s etc
2- I am a Carpenter and have a small business with an Electrician. We enjoy renovating and want to head down this road and see if we can make some money buying and selling. I also have a mate who is very wealthy and wants to start a separate business with myself and start buying properties for us to renovate. What is the best business structure to do this? I would like to keep both businesses separate for now.I do have access to money and have skills in the trade, but need help in starting my pathway.
Please help,
Greg Burgess
The business structure is out of my league but it is an interesting post I couldn’t help but comment.
I have also read all of Steve Mcknight’s book and taken in a good deal of information. May I suggest that you also have a look through some different property strategies such as Michael Yardney’s book ‘How to build a property portfolio in your spare time”. It takes a look at property investing through a different strategy based on capital growth.
Lots of things to consider with the business idea
-How much money involved with renovating/buying and selling fees, capital gains, time taken to renovate ect.
-How much needs to be done to the property to add value – You don’t want to over capitalise
-Working in conjunction with your mate – How are the profits distributed evenly based on expertise and time spent in the various roles.One of the suggestions I commonly read in these books is the idea of buying – Renovate – Hold for the long term.
-Buying a property in a good location with high rental demand
-Doing superficial work on the property to attract higher rents from tenants
-Leasing the property out for a increased rental return
-Revaluing the property – The renovation if done correctly may add equity in the property. You could potentially access this equity to start the process again.Buying to renovate and holding will dampen any of the costs of buying and selling properties, plus give you a passive income from your own property portfolio.
Goodluck!
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