Josh’s First Deal is Worth $900,000
Josh made his first deal all happen while he was working overseas, it was that easy. Josh attended Mark Rolton’s property option 3 day boot camp, applied what he had learnt and now he is already on his way to looking after himself in his retirement.
Step 1: Getting Started
Upon searching for a property, I had seen a house for removal. I knew putting a house onto a block the way Mark described using a splitter was a great strategy – I just needed to locate a suitable house. So I decided to ask around if anyone knew if someone was looking to get rid of houses. To cut a long story short I found a guy who had 17 – to give away!
Step 2: Find the Deal
After receiving an email about a block that would suit what I was after, I flew home on
one of my breaks from work to check it out and put the deal together. Some of the houses had new kitchens, bath & toilets and very tidy inside, some even had still had full air conditioning, I had really hit the jackpot!! It’s hard to believe people are giving the houses away – but for them they need to move the houses before they can built on the block, so really I’m solving a problem for them.
Step 3: Choosing the Right Strategy – Short Option and 485 Letters
I found out the block had a DA approval for four transport homes, which would be perfect for
what I wanted to do.
I did a quick feasibility of four of the houses I could get on the block, it really was a NO BRAINER!
I knew it had great profit in it. So I decided this would be perfect for my first deal.
Step 4: Know the Numbers
It now has a really good flow on and as I said it now seems too easy, so I am putting together another deal.
- Block of land $295,000
- 4 Houses moved, restumped & built in underneath $300,000
- Cost to furnish the 4 houses to accommodate mining companies $40,000
- Landscape, driveways, turf etc $60,000
- Total project around $700,000 – my projected valuation a conservative 1.6m on reflection
- Of current house prices $400,000 a house
- Cash flow, my projection a conservative $3200 wk
- Estimate profit: $900,000 Conservative
I could say it’s been a good year and the next will be even better!!