I Traded Blocks and Made $30,000 and Now Will Bank $69,250, Without Using any of My Own Money!
My name is Shane and I’m a chef. While I enjoy my job, I have always been looking for ways to make more income and secure my financial future for myself and my fiancé.
I found exactly what I was looking for when I attended the Property Options 3 Day Bootcamp with Mark Rolton. Mark explains dozens of strategies that are possible for making money using real estate – it was up to me to decide which strategies best suited my skills.
As soon as I completed the course I started with the Trading Blocks strategy. Trading Blocks involved me directly negotiating with a developer and optioning 10 blocks of land at a discounted price. I then on sold these discounted blocks to a project builder. Both parties were happy as the developer had moved 10 blocks of his list making his development more successful and the builder was getting the blocks at a bargain. Of course, I profited as well, banking $3,000 per block which was a tidy sum of $30,000. Not bad for my first deal – my fiancée was very impressed.
This inspired me to keep going and I am now working on my second deal. This will involve me splitting a block into two – known as a Splitter. Mark taught us to not use our own money and be in debt to make money, but rather to option property and work with joint venture partners. I took this advice and found a joint venture partner amongst my friends who was happy to contribute the costs of the deal and I contribute my time, expertise and skill to find and complete the deal. At the end of the day we will split the profit 50 – 50, we both end up with cash in the bank.
Step 1: Getting Started
I attended Mark’s program Property Options and learnt as much as I could. I listened to all the webinars and coaching calls that were provided and accessed the Massland Education website.
Step 2: Find the Deal
I began searching in south east Queensland as I know it is a solid growth area that Mark always recommends. I found a large block of 1150m2 in an area the council were happy to see an increase in density. I researched with the council the costs of splitting the block about $24,000 and costs involved in getting services to the new block which will be about $8,000.
Step 3: Choosing the Right Strategy – Joint Venture Splitter
My joint venture partner purchased the property for $290,000 and we sold the shed out the back and put the $3,500 profit into costs. I approached a project builder Dixon Homes who are happy to buy the new block out the back we are creating. They will build a new house on it and sell it. My joint venture partner has decided to keep the house out the front for his portfolio and will also receive half the profit for the block out the back. A great result for him as he has contributed none of his time.
Step 4: Know the Numbers
We learnt at Property Options that it’s important to know my numbers well. My joint venture partner will keep the house at the front and we will sell the block out the back to Dixon Homes.
Here is a simple breakdown on our deal and profit.
- Purchase Price: $290,000
- Project costs: $28,500
- Sale Price of Block to Dixon Homes: $180,000
- Profit to Each Joint Venture Partner : $69,250
Working with a Joint Venture partner is a great way of profiting from real estate without any costs and any risks. Since doing Mark’s 3 Day course I do have the knowledge and expertise to be the deal maker in the Joint Venture partnership and that’s a great feeling. It means I can find more joint venture partners and continue or use the money I make to do my own deals. Either way I end up with more cash in the bank!