1. CRACKER “Crack Den” DEAL

2. Deal Specifics: Splitter Block (2 Lots: 1 Title) House straddling both lots House: 2 bed, 1 bath, 1 car House: run-down with squatters Found through agent – I was looking at a splitter around the corner Property repossessed on unpaid rates and taken to auction by the council

3. CAR JACK

5. PLAN OF ATTACK No money down deal! Evict Squatters!!! Shift and raise the existing house so its sits on its own lot Renovate the existing house into a 4,2,2 Sell land & rent positively-geared house Make lots of money Celebrate!!!

6. Reality Evict Squatters twice & have them steal most of the fittings & fixtures Development over-time & massively over budget Multiple Tradie Drama Investor Drama Difficulty in off-loading stock – led to tactic change: sell house, develop land and sell.

7. NUMBERS Purchase Price: $120,000 Legals: $1,700 Stamp Duty: $2,625 House Slide & Utility connections (water & sewer): $44,000 House Renovation: $80,000 Holding Costs & Utilities: $3,250 GST on the LAND: $13,000 Valuation House: $275,000 Valuation Land: $135,000 = $140,000 Equity

8. Before… After…

10. Before…

11. After…

12. Lessons Learnt Have a separate bank account where the investor can put all their money – no PAYG scheme! Keep a supportive expert team around you to keep you on your path! All the hidden expenses when moving a house! All the timelines that Utility companies work on! Start looking at exit strategies right at the beginning! If you go on holidays – leave someone else in charge of project management! Don’t forget to have fun, and keep going back to the reason WHY you are doing it in the first place!

13. $140,000 Profit!!!!! Rental Appraisal on House = $330-340 per week…