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.
- Option Price- $242,700
- Development Costs $52,135
- (Contributions, Stamp Duty, Renovations)
- Sell Price – $405,000
- 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.