Darren’s Splitter Makes $110,165 Profit!

I’ve always had a passion for property and have never been afraid to jump in and give it a go. I’ve done many renovations and even my own small developments but as I’ve done them in the traditional way I found the cash flow to be difficult. I was becoming frustrated with my progress and was looking for a way to make faster progress and chunks of cash at the same time.

Step 1: Getting Started

I attended Mark Rolton’s three day live bootcamp and was thrilled with the multitude of strategies available to me. I knew any of them had the capacity to get me where I wanted to go, it was just a matter of deciding which one.; I chose Splitters because of the simplicity and the speed with which a development approval can be granted and the profit realised. I had begun.

Step 2: Find the Deal

I started scouring areas I knew had larger blocks of land. I came across a suburb where some of the older blocks were around the 1200m2 – perfect for my splitters. I sent out dozens of letters to owners asking if they were open to making some money from their property and had quite a bit of interest. I decided on one and negotiated a great price with the owner and started my DA process.

Step 3: Choosing the Right Strategy – Splitters

Putting my DA into council was not a tough task. Some people decide to pay a private certifier to do it for them and for a fee of a couple of thousand they will take care of all the details for you. But for me I enjoy the process – it’s just like doing an assignment at school. You fill in some paper work, have a pre-lodgement meeting, fill in some more paperwork and your surveyors drawings and anything else council needs.

It’s been great to find my deal belt. Now that I have an area that I know works in relation to block size and price the sky is the limit. I have completed my first Splitter and have already approached the neighbours for my second Splitter.

Step 4: Know the Numbers

I loved the idea of Splitters because it is a simple strategy that can be executed in a short space of time but has great profit attached to it. My idea is focus on two Splitters per year and to bank some money for my family.

  1. Option Price- $242,700
  2. Development Costs $52,135
  3. (Contributions, Stamp Duty, Renovations)
  4. Sell Price – $405,000
  5. Profit – $110,165

It’s a great feeling to know I’m working towards a better financial future for my family and am using property as my vehicle. It’s been a great experience working on my first Splitter and I’ve learnt an incredible amount of information. The future looks good.