How I Split a Block into Two and banked $65,022!
My name is Kevin and for many years I have worked as a bank teller in one of the big four banks. I have always been interesting in property but couldn’t see a way that I could be an investor because of my limited income. All that changed when I attended Property Options with Mark Rolton. Mark has such innovative ways of thinking about real estate that didn’t involve me borrowing huge sums of money and being at high risk. Mark taught me how to force value onto a property so it is worth more to the market and that is how we make our profit.
I left the weekend ready to tackle property and used Mark’s advice of doing Joint Ventures and started looking for deals immediately with my business partner. Together we looked in specific areas based on infrastructure, industry and federal spending, as Mark had taught us. It didn’t take long for us to find our first deal – it was a Splitter. That means you look for an old house on a large block in a part of town you know the council wants to see more houses. You split the block into two leaving the house at the front and selling off the land at the back to a project builder or small operator.
My first Splitter made me $65,022 – that was more than I earned in a year previously!
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 learnt from Mark some fantastic strategies about how to profit from property in new and innovative ways and that taking action is the most important step in your financial future.
Step 2: Find the Deal
I left the weekend ready to take action and my partner and I spent time researching our area using RPData until we found properties that were suitable. We found our house on 1164m2 close to the centre of town and found out from the local council they were decreasing the house block sizes to fit more houses into the area. We found out from them the minimum size we could cut the block into and knew we had enough land to make it work.
Step 3: Applying the Strategy – Splitters
We went to council for a Development Approval to realign the block into two separate lots to be sold separately. This was quite a smooth process only involving a surveyor to draw up some plans. The other project costs involved making sure the new block had water and power going to it. A strategy that Mark teaches is to make sure people feel they are getting value for money by selling under the market value. That way the property sells quickly and you can move onto the next deal.
Step 4: Know the Numbers
One important thing I learnt on the Property Options weekend was the intrinsic value of a house. It is still valuable and useful even if it is run down and in need of repair. Even though the price of the block was $240,000, when we cut the yard into 2 and left the old house on much smaller block it didn’t half the cost of the house. The house retained the value of $240,000! It didn’t lose value because it was still comparable to other houses in the area. The block at the back valued much more, it was now worth $135,000 – a fantastic profit margin! By the time I paid for my surveyor and had the services connected to the new block – I was still left with a profit of $65,022. A brilliant result!
Doing Mark’s course has shown me a way to make large sums of money in short periods of time and how I can also retain these assets and add them to my portfolio. It has really set my partner and myself up in a very strong financial position. We can’t believe how easy it has been for us and we are now looking at doing Options with Mark and the Massland team that will result in even larger chunks of money.
The key is to take action and be persistent. Each deal just gets easier!