My name is Mark and I live with my wife and beautiful children in the ACT. I have always loved property and have actively worked to increase my property portfolio and cash flow strategies. I found Mark Rolton’s Real Estate University and immediately knew this would appeal to me – I loved the concept of making property work harder for me.
Step 1: Getting Started
I attended Real Estate University with Mark Rolton as I have always had a passion and interest in property and wanted to learn more. Mark had a unique way of looking at property to creatively maximise each deal, making it more profitable than simply buy and hold.
As an investor I found the content at the three day live event and the follow up support, to be incredibly informative and it added another layer to my learning that I found invaluable.
Step 2: Find the Deal
Mark teaches us to look for blocks of units that are brick and that already have fire walls installed – something that was constructed in the past 20 – 25 years. It’s a simple matter of a surveyor drawing up plans that show each unit and its inpidual backyard as well as any areas that will be deemed common areas.
Once the surveyor has plans they go to council to be acknowledged and for the fire walls to be checked. New RP numbers are assigned to each unit, which means the titles can now be sold inpidually.
Step 3: Choosing the Right Strategy – Strata Titling
Mark talks about strata titling properties as a great strategy for forcing value on a property to increase its capital growth in the short term. It involves taking a block of units and strata titling or inpidually titling them, which means you end up with multiple smaller properties. This strategy has been very effective in my portfolio, as it massively increases the value of the overall property and allows me the flexibility to sell off the inpidual units if I choose.
By piding the property into inpidual units actually adds more value to the property overall. The sum of the parts is more than the total. Best of all it gives me flexibility to either keep certain units in my portfolio or sell off units if I need money for cash flow.
Step 4: Know the Numbers
Here are a couple of strata titles that I have completed recently –
This was a set of flats with 2 units. I strata titled them into 2 separate units, which I still have in my portfolio today.
Here are the numbers of Strata Property 1:
- Purchase Price: $365,000
- Strata Tilting Costs: $12,040
Value of Properties Today
- Unit 1: 1 bedroom $300,000
- Unit 2: 2 bedroom $380,000
I did a valuation on the property before I strata titled it – the valuation came back at $425,000. Post strata valuation was $585,000. That’s $160,000 value added just from strata titling! From when I bought the property and strata titled it – I have made $315,000 growth in the property – which is phenomenal! When you’re on a good thing – stick to it! I realised that strata titling was a great way of adding value to my property portfolio but it also allowed me the flexibility to sell of a section if I needed cash flow – and that’s what I did the second time
Here are the numbers of strata Property 2:
- Purchase Price: $411,000
- Strata Tilting Costs: $11,700 + we decided to do a quick renovation
We Decided to sell Unit 1 for our prtfolio
- Selling Price – $302,500
- Current Valuation of Unit 2 – $450,000
- Profit – $206,740
From this deal I made $206,740 in cash but also have a property in my portfolio that is producing rent each week! It was great to utilise a strategy that produced cash flow in the short term but was also a buy and hold for the long term – great combination!
From here I attended Conclave with Mark as I am keen to take my investing to the next step and develop something myself in the future. Strata titling has given me a great grounding of working with consultants and council on something simple and I would now like to step it up and construct a small development of my own. Best of all Mark and the Massland Team will be there for assistance and advice each step of the way.