We Amalgamated 2 Houses and Will Make $403,000 on a Short Option!
My name is David and my business partner and friend-for-life is Johnathon. We are both from Melbourne and originally met each other back in 2007 while both working in the trenches for the largest multi-national company of its type in the world.
The discontentment held within their hierarchical system, being stuffed in cubicle work stations, making others rich yet earning a pittance in return and the desire to get out of the 9-to-5 rat race was what ultimately brought us together.
It was one afternoon when I poured my heart out on a project that I happened to witness the CEO of the company twiddling his thumbs, zoning out into the distant sun, doing squat – that I knew something had to change.
That vision of reality was the straw that broke the camel’s back and little did Johnathon and I know that life from that point on, wasn’t going to be the same.
Step 1: Getting Started
We embarked on seeking answers and opportunities that could get us ‘there’ on a more favourable work to reward ratio. Life always taught us, if you seek you shall find and oh boy did we find a nugget! We came across a full spread ad on the Melbourne Express (MX) newspaper on Mark Rolton conducting a one-day course on Property Options – I felt I had to call in sick from work just to attend.
Johnathon attended the 2010 Success Summit Conference in Sydney with Tony Robbins and Mark Rolton. Johnathon had already heard of Property Options before but it was only through Mark Rolton’s presentation that he was able to really appreciate the potential, like we had never seen before! It was a bonus that it happened to be in a field of high interest and passion to us. The decision was made right there and then for the both of us to do the Massland Property Options 3 day course and Johnathon signed up at that very moment.
Step 2: Choosing the Right Strategy – Short Options
A week or so later our materials and manuals arrived in the post. Being the proactive pair that we are, we immediately started assimilating the information, dissecting and understanding it, but most importantly putting our new found knowledge into action. From the many strategies we learnt that could be derived from Property Options, we identified strategies and techniques that were going to work for us. After watching Mark Rolton’s DVD’s we were able to navigate our way through RP Data. We sent out 25 letters from the original 200 properties that met within our criteria, 5 came back and from those, BOOYAH, after negotiations we were entering into our very first deal!We set ourselves a goal and timeline, so naturally we wanted to have this deal signed off before we did the course. We found early on that not everyone is as proactive and driven to get things done and that solicitors have a very good knack for inertia and putting the handbrake on. However most importantly, we kept moving forward and kept pushing and the deal is now in its final stages.
Step 3: Know the Numbers
It’s quite lucrative, as we have amalgamated 2 houses, making it a 2028 square metre site with fantastic potential and surrounding case studies, to take up to about 11 side by side townhouses in one of Melbourne’s prominent suburbs. This transaction should net the pair of us about $400,000! A bit down on our original projections but only due to an increase in construction costs.
In short, it was all about doing your research, liaising with Council, seeking costs and comparable sales data, sourcing civil work estimates from several providers, preparing a feasibility and negotiating a workable deal that would satisfy all parties. These are all things that we learnt from Mark Rolton’s course and his team at Massland.
- Option Price: $3,457,000
- On Sell to Developer: $3,860,000
- Profit: $403,000 ($201,500 each)
Since this time, the most interesting development has occurred. Not being afraid of where this might take us and eager to do some bigger deals, Johnathon and I went to the big end of town where we met with the CEO and Managing Director of a major player in their field. They had some land they wanted to exit from and we were happy to take it off their hands, provided the numbers stacked up and it was of a very saleable nature.
Before commencing any meetings, we had already run some numbers and research, knowing the rough metrics of this site. So here we are, as we speak currently negotiating to option 5.5 hectares (55,000 sqm) of bare, zoned residential land and what’s more – the Vendor is flexible on Time, Deposit and Dollars making it a very realistic transaction.
We know that we are on to something, as Coles have just announced that they are due to start construction on a new $30 million dollar supermarket. Project builders like Metricon have just co-developed for purchase 200 blocks for their house and land packages in this same development corridor.
Given the scope of this project, this will be a great opportunity to Joint Venture with Massland so that we can make this deal profitable to all and we can’t wait to get the property evaluation and essential data to Mark’s Massland team so that we can get this land carved up and sold off.
We did not ever dream of being in such a position 12 months ago, and certainly would not have arrived where we are today if we did not take action in attending the course. We now have the tools and knowledge to amass our fortunes and never have to resort to a life of mediocrity and struggle, instead one of choice and abundance.