Last week I had an amazing four days in Sydney with my aged mum. The Rivercat and Ferry to Watsons Bay for lunch at Doyle’s was a highlight (so was my only unmarried child’s partner meeting me to ask for her hand in marriage).

I spent the following four days in bed with a fever and, as I write this on Tuesday, the fever has left and I can function again - with one exception!

I have completely lost my voice!!!

To the many clients I have been communicating with, my intention was to speak with you upon my return, but I don’t know when I’ll have a voice again; sorry.

The best method of urgent communication for now is via text, as I still have a tonne of emails to get to.

For those interested

Our eldest daughter and her family are about to relocate back to Australia. COVID ‘killed’ her husband’s hotel-industry job and, as a result, left them without a working VISA.

We’re excited to be having them home again, especially since they left with two kids and are returning with 3 and a half. So, I will get to meet my first grandson next month (the other grandies are girls).

Real Estate

We announced two new investing-concepts at our recent roundtable in mid-March. The interest and excitement from clients has been off-the-charts ever since (understandably).

Anyone who has taken the time to analyse the numbers agrees on the merits of both concepts. Each delivers highly magnified outcomes.

Brand new four bedroom homes, in a variety of locations (and cities), with 8% yields are a no-brainer, i.e. assuming there’s no hype and the numbers are real - which they are. (see my email from a week and a half ago, specifically the article Free Houses).

Then, for those with a better financial standing, we have a proven model where we manufacture equity for you by sourcing a suitable older Queensland home, about eight to 10 km from the CBD.

Over 18 months, we will turn that old single dwelling into four incomes across three separately titled properties. The original home is refurbished. A new, separate dwelling is built in under it and two three bedroom townhouses are also constructed. We offer this as a turn-key solution, from site acquisition to the four finished dwellings.

Then, by refinancing the finished product - after we have added value to the site - you are able to pull out (at least 80%, but probably all) of your initial deposit.

The result

• You’ll end up with most, if not all, of your initial cash or equity injection
• You will own three properties, separately titled, with four rental incomes
• After refinancing and withdrawing your initial deposit, the four incomes will leave you cash flow positive
• You will probably want to use your seed deposit and go again (do another)

A number of MRD clients have spent a half day with me in Brisbane to really get to see this model at various stages of construction / completion (i.e. across different projects).

I can’t think of any who did not want to immediately get involved. The finance requirements disqualified a number of them, however.

Those with $350,000 in available equity and/or cash and the required borrowing capacity of $1.5m, have all quickly jumped on board, after completing their due diligence. From a variety of geographical and professional backgrounds, all have their new projects at either the planning, approval or construction phase.

N.B It’s important to know that with these manufactured equity projects, you invest into your asset - no one can run away with your money (in case that was a concern). The fee to have this all done for you is very reasonable and is the only amount paid to a third party - every other dollar is into the project.

Come for a Tour and See First-hand

If you intend to add to your real estate portfolio in the short to medium term, I’d like to invite you to fly up and check out what I’m saying with your own eyes.

If there’s a group of us that can agree on a day, I’ll hire a small bus and ensure your day is educational and informative, as well as fun! If we did that on a Friday, some may choose to extend their trip so as to enjoy a Winter weekend in Queensland.

If interested let us know below and we’ll get to work organising it.

Aside from all of the above, I suggest you BE THE SQUEAKY HINGE (it’s usually the one we oil first). That is, whether or not flying up for a hands-on site tour is something you can do, let us know if you’re super keen to get going so we can prioritise coming back to you.

Finance

The reality is that almost all real estate investors require bank funding; and because the markets are so hot, lenders are very slow (super slow).

James is our broker and holds the MRD Finance credit licence. I suggest speaking with him regarding what may be possible for you financially. He could perhaps have you pre-approved, positioning you to strike at the appropriate time.

Due to the heightened purchaser activity and the many clients eager to have him reduce their rates, he too is busy. So while he will not be able to attend to your loans immediately, positioning yourself in the queue will speed things up at the back-end.

Please tell us, via the link below, how you would like us to support you at this stage:

• Finance your existing debt to reduce your outgoings
• Finding out what you may qualify to do (as well as refinance existing debt)
• I am keen to visit and check out these investment opportunities
• I’m already speaking with Nick and will wait till he can call

In Closing

Thank you to those I have not got back to because of being unwell. Your understanding and patience is appreciated

For what it’s worth, I think June 2021 is an ideal time in history to be a squeaky-hinge and get going. The window of opportunity is still open, for now.

Finally, do not allow negative financial/economic news to distract or unsettle you in the coming weeks and months.  We have a bright future ahead - FEAR NOT!