My name is Samuel and I didn’t rush out and do my first deal as soon as I finished my Real Estate weekend. I finalise this deal about 11 months after I sat the three day bootcamp with Mark. I am not a slow learner, but I need to understand things thoroughly before I go out and strike. I spent quite a lot of time doing my research on the town plan of my local area to decide which sites were best to target.
I was doing research one night on Google Earth and RPData and found this corner block on 1014m2 with an old 70’s house sitting on one side of the block. I couldn’t believe the house was completely over the left hand side leaving the rest of the block vacant backyard. I’d looked carefully on the town plan and the smallest block feasible is 400m2, so this naturally was perfect for a splitter and a really simple one because I had two street frontage being a corner block.
I sent out a letter to the owner and received a call from him the next day. I scheduled a meeting with him and his wife to negotiate an option on the property. In the meeting I found out what their needs were and I targeted their needs. I explained that time is more important than money for me and so they accepted a 12 months option.
Step 1: Learning to Create Wealth
I attended Property Options with Mark Rolton and learnt that controlling and profiting from property was much smarter than being in debt. I really liked that Options was a smart way of making money from property by adding value. By adding value I can give the owner more money and I still make a profit too.
Step 2: Find the Deal
learnt from Mark at the three day bootcamp how to use RPData and how to study the council town plan. And that was exactly what I did. I took my time – I am a careful person by nature and like to be meticulous in my research. I knew my area very well by the time I found this property and by talking to local agents knew what other properties in the area were worth. I found the 1014m2 block and knew it would be perfect because of the two street access of the corner block – perfect for a Splitter!
Step 3: Applying the Strategy – Splitters
I listened carefully to Mark at my Property Options weekend, for the exact words he used when talking to owners. He carefully outlined how to explain to owners how Options work and I used his phrases exactly. The owners understood how I would Option the block and go to council and get the approval for the pision of the block. I can afford to give them between $65,000 – $80,000 more than the market for their home. They are happy because they are getting a great price for their property in only a year’s time.
Step 4: Know the Numbers
I was sure to be careful with the feasibility of my deal. I talked to many agents during my research to understand the price of the area, so I would know how much to offer the owners and how much I could sell the vacant block for and still make a profit. Being sure of my numbers is very important and now that I know them, I can do many more deals in this area and they will be profitable too.
I am happy to say that my first Splitter deal will make me $65,000 in profit. But better than that I now know how to make more because I will find another and do it again. That is the best part about Mark’s course – once you learn it, you know the strategies for life and I can use them to generate money for myself for many years to come.
- Option Price: $585,000 (market price for their property is $500k to $5
- Project Costs: $50,000
- Market price for the house after subpision: $400,000
- Market price for vacant land: $300,000
- Profit: $65,000