3 Ramping it up Flashcards
(43 cards)
What is the key to financial freedom in real estate according to the author?
Own a couple of the right types of properties debt-free.
How many properties did the author manage to buy in 3.5 years?
130 properties.
What unique approach did Chuck use in real estate investing?
Buy properties, resell to buyers who couldn’t qualify for traditional finance, and lend them the purchase price at a higher interest rate.
What is a ‘vendor’s terms’ sale?
A sale where the vendor provides financing to the buyer.
What were the prerequisites for a vendor’s terms sale?
- A vendor willing to accept a sale on terms
- A house to sell
- A buyer who wanted to purchase using vendor’s terms
What was the author’s strategy to find a buyer for the property?
Draft a classified ad to be placed in the local newspaper.
What was John’s main issue that the author helped to solve?
John lacked a deposit for purchasing a home.
How did the author increase weekly cash flow by selling on vendor’s terms?
From $20 per week to $234.92 in the first year and $125.19 in the second year.
What were the two important refinements made to the investing strategy?
- Require higher downpayments
- Empower clients to find houses they want
What significant government incentive was introduced in 2000?
The First Home Owner Grant of $7000.
What was the effect of the First Home Owner Grant on the property market?
Increased buyer interest and property values.
How did the author’s aggressive buying strategy impact their finances?
Made $500,000 in a few months.
What challenges arose due to the rapid increase in property prices?
- Harder to purchase properties
- More capital needed
- Difficult to negotiate discounts
What investment focus shift did the author make in response to market changes?
Buying blocks of units and multi-unit complexes.
What was the return on investment for houses before and after the First Home Owner Grant?
Before: 13% return; After: 9.8% return.
What type of commercial property did the author invest in?
A large shed/workshop in Launceston.
What was the purchase price of the warehouse investment?
$155,000.
What was the initial cash needed for the warehouse investment?
$54,250.
What was the current rent for the warehouse investment?
$22,100.
Fill in the blank: The best way to make money in real estate is to buy _______ and sell solutions.
problems.
What was the purchase price of the warehouse?
$155,000
What are the closing costs for the warehouse investment?
$7,750
What is the total cash needed for the warehouse investment?
$54,250
What is the annual loan payment for the warehouse?
($7,595)
