group property mentoring program

http://www.ftpi.com.au/home

Sick and Tired of Working 9 to 5 with Nothing to Show for It???

I’m Sick and Tired of Working 9 to 5 with Nothing to Show for It???


Do You Want To

• Retire Early?• Invest In Property?• Not Have To Worry About Money?• Build And Create Wealth?


Do You Want To

• Learn How To Build A Property Portfolio?• Locate And Research Great Deals, Easily?• Minimise Your Risk?


What About

• Create Immediate Equity?• Buy At A Discount?• Locate Positive Cash Flow Deals?• Find Great Renovation Opportunities?


Agenda

• Information evening

• Interactive – I will ask you questions

• Current reality for the majority

• Money and Investing

• Overview of the Program

• Challenge you beliefs

• Share some of my ideas and experiences

• Investment concepts

• Why Property

• Next Steps


Some Observations


The Traditional Way

• Work Hard

• Spend Frugally

• Spend Less Than You Earn

• Avoid Personal Debt

• Pay Off Debt ASAP

• Treat Savings As A Necessity


So Why Do

• 95% of the population by age 65 either end up dead, dead broke, relying on a government pension or in need of their family to help support them?

• Only 4% become financially independent, able to stop work and continue to live a comfortable lifestyle?

• A tiny 1% are classified as rich?


Australian Households are currently spending 2.3% more

than is coming into the average household each week in income

• AMP.NATSEM Income & Wealth Report Issue 9. November 2004


Median Annual Savings per Person

• AMP.NATSEM Income & Wealth Report Issue 25. April 2010NATSEM estimates based on HILDA data

$300


Rich or Poorthey all have money problems



Its just a case of

• Not enough money

OR• Too much money



Its a case of

• Not enough money

OR• Too much money

Which one do you want?


More money doesn’t solveyour Money Problems


More money doesn’t solveyour Money Problems

Financial Intelligence Solves Money Problems


My mate “Bazza”

• Aged 45, has about $80,000 in super, earns around $60,000 and has no investments

• Wants to “retire” in 20 years• Remember he is used to living on $45,000 p.a.

after tax• At 5% return he is on track for a princely sum of

• * “Bazza” is a real person, but “Bazza” isn’t his real name


My mate “Bazza”

• Aged 45, has about $80,000 in super, earns around $60,000 and has no investments

• Wants to “retire” in 20 years• Remember he is used to living on $45,000 p.a.

after tax• At 5% return he is on track for a princely sum of

$235,000

• * “Bazza” is a real person, but “Bazza” isn’t his real name


Einstein’s Definition of Insanity

http://www.picsearch.com/imageDetail.cgi?id=F8jMakeLWk3HcydwbbA4Wm2yYy9TMTa1gfHrwzbLxSc&width=1003&start=21&q=Albert%20Einstein


How has the traditional path been working for YOU so far?


There’s Only 3 Options

• Earn More

• Spend Less

• Invest Better


“I have clients that want to invest but just don’t know where

to start”


The Average Person Doesn’t Know What To Do!!!!!!



• One Investment Property




• 1,206,627




• Two Investment Properties

• 1,206,627

• 456,954





• Three Investment Properties

• 1,206,627

• 456,954

• 153,595






• ..........• Six or more

Investment Properties

• 1,206,627

• 456,954

• 153,595






• ..........• Six or more

Investment Properties

• 1,206,627

• 456,954

• 153,595

• 15,460


There’s Many Challenges For Investors



Your Friendly Local

Real Estate Agents



Your Friendly Local

Real Estate Agents

Bank Manager

______________________________


Number of Renters Are Increasing

• 1981

• 1991

• 2001

• 2011 (est)

• 21%

• 23%

• 33%

• 36%


Population is expected to increase by 50% by 2050


So, you want to invest in property

The Biggest Challenge – with over 500,000 listed properties across more than 15,000 suburbs throughout Australia :

• Where do I start?• How do I find good deals?• What makes a Good Deal?• What do I need to Know?• What is the Process?• I don’t know what I don’t know!!!


Fast Track Property Program

• Provide access to a team of experienced property investors and advisors.

• Teach Investing, its a Step by Step process.• Provide the Resources, Tools and

Education to give you the confidence to make decisions.

• Provide Ongoing Support.• Open you mind to the possibilities.• Its All About YOU!


NO!!

• No ROI’s, PIA’s, LVR’s or DSR’s.• No High Risk, Get Rich Quick Schemes.• No Developers or agents selling their

stock.• No DIY Home Study Course.• No telling you what, where or when to buy.• No Agendas.• No Baggage.


Rule No 1

• Don’t Teach Pigs to Sing


Rule No 1

• Don’t Teach Pigs to Sing

It wastes your time and it annoys the pig


We can’t teach Someone who doesn’t Want to Learn

If you give someone a fish, you feed them for a day, but if you teach them to fish, you

feed them for life!


Why do we want to Invest?


What is the true measure of Wealth?

• It is how many days you can continue to live without the need for work.


Two Types of Income

• Earnt Income

• Passive Income


Two Types of Income

• Earnt Income

• Passive Income

Which one gives you financial freedom??


8 Ways to Make Money

• Inherit It

• Marry It

• Win It

• Steal It

• Earn It as an Employee

• Become Self Employed

• Start a Business

• Invest


3 Classes of Investors

• Non – Investors (the poor)

• Passive Investors (the middle class)

• Active Investors (the rich)


Assets vs. Liabilities

• Assets put money in your pocket

• Liabilities take money out of your pocket


Investment Fundamentals

• Supply and Demand

• Income and Growth

• Growth early / Income late


Value (Growth) is determined by Income


Which investment would you buy?

Price is the same

Industry is the same

Company 1 = $1 profit per share Company 2 = $2 profit per share


The only reason you buy an investment is for the income

(profit) it generates

OR

the income (profit) you think it will generate in the future


The only reason the value of an investment increases is because of the income (profit) it generates

OR

the income (profit) you think it will generate in the future


Why not shares/managed funds?

Investor

• We take 100% of the risk• We Invest 100% of the

Capital• We get 100% of the Losses• We get a % of the Profits

Manager/Company

• They Take 0% of the Risk• They Invest 0% of the

Capital• They get 0% of the Losses• They get a % of the Profits


So why do we like Property?

• Cash flow

• Control

• Leverage

• Depreciation

• Capital Growth


rule of

72


rule of

72Divide 72 by the growth % = no. Years

for asset to double


Market 1975 2009 Growth %

Sydney $33,000 $546,000 $513,000 8.25%

Melbourne $28,000 $448,500 $420,500 8.12%

Brisbane $35,000 $428,000 $393,000 8.36%

Perth $41,000 $470,000 $429,000 8.41%

•Source BIS Shrapnel, ABS•Due to unreliable historical data for Perth and Brisbane, we have used figures from 1980 and calculated over a 29 year period


There’s lots of ways to make money in Property.

How Do You Want To Do It?


5 second valuation method


Houses

Area Median Value

Capital Growth Rent Rate Sales AffordabilityStock Position

Shortage

Year Ending Mar 2011

Last QuarterMonth Ending

Mar 2011Year Change See Note 1 See Note 2

ACT $537,500 6.02% 0.01% 4.66% -3.76% 50.23% 5000

Adelaide $408,500 1.72% 0.03% 4.28% -1.86% 49.52% 7000

Brisbane $447,500 -2.89% -2.23% 4.49% -14.66% 49.28% 2000

Darwin $508,000 0.97% -1.64% 5.14% -32.55% 44.73% 1000

Hobart $389,000 5.51% 0.42% 4.83% -17.96% 53.93% 4000

Melbourne $600,500 6.73% 1.20% 3.30% 17.67% 69.78% 25000

Perth $485,500 -0.27% -0.41% 4.08% -16.18% 50.53% 7000

Sydney $670,000 4.52% -0.51% 3.97% -13.60% 68.47% 6000

Australia $441,500 2.90% -0.55% 4.37% -7.31% N/A N/A

RESIDEX NEWSLETTER, QTR ENDING MARCH 2011

Information forInformation sake


State Suburb Best Performance last Quarter

Suburb Worst Performance last Quarter

Queensland Blackwater (U) 5.6% Helensvale (H) -6.59%

New South Wales Abbotsbury (H) 5.17 Queens Park (H) -4.31%

A C T Palmerston (H) 3.56% Gungahlin (U) -1.87

Victoria Romsey (H) 5.67% Casterton (H) -2.96%

Tasmania Mowbray (H) 3.17% Sandy Bay (U) -3.1%

South Australia Port Augusta (H) 3.93% Mawson Lakes (U) -3.39%

Western Australia Wandina (H) 6.27% Kenwick (H) -5.39%

Northern Territory Rosebery (H) 4.18% Bakewell (U) -3.99%

Best and Worst 3 month Growth by State

RESIDEX NEWSLETTER, QTR ENDING MARCH 2011 H=Houses U=Units

Markets Within Markets


This is the part for the excuses

• I just don’t know enough to invest• I’d better to leave it to the experts• I don’t have the time• Investing, it’s just like gambling• Oh, its just to complicated• I’m to young (or old) to worry about that• I don’t have any money to get started


And then there’s the Fear

• Fear of taking a step into the unknown• Fear of losing money• Fear of being ripped off• Fear of making a mistake• Fear of what family and

friend will think• Fear of borrowing


So, how’s that been working for you so far?


So, who wants to be “Bazza”?


The reality is that most people spend more time thinking about missed investment opportunities, what they would do if they were rich or how they would spend a lottery win then they do putting

together a plan to create wealth.

Always hoping to one day strike it rich or find the bargain of the century.

But they never actually


TAKE ACTION

The reality is that most people spend more time thinking about missed investment opportunities, what they would do if they were rich or how they would spend a lottery win then they do putting

together a plan to create wealth.

Always hoping to one day strike it rich or find the bargain of the century.

But they never actually


RememberEinstein’s Definition of Insanity

“If Nothing Changes,Nothing Changes”


What will the Fast Track Program do?

• Set some goals and priorities

• Analyse spending and make some commitments

• Review strategies and costs

• You will learn how to locate and research great deals, easily

• Minimise your Risk

• Teach you to make informed decisions, quickly

• Discover the benefits of investing using your own super fund

• Access a comprehensive 24/7 “knowledge” centre for all your property questions

• Show you how to save time and money

• Hold you accountable

• Provide access to over $6,500 of resources


What will the Fast Track Program do?

• Learn how to create immediate equity by finding people who will sell their property well below market value

• Have your properties pay you week in week out, find real positive cash flow deals

• How to add big profits with subdivision and strata titling opportunities

• Generate quick chunks of equity through renovation projects

• Opportunities through “Off the Plan” purchases

• The anatomy of a “hot spot”

• Locate and research great deals, easily


One on One Fast Track $6,500 + GST(3 day intensive)

Fast Track Program



Group Fast Track $4,500 + GST(12 week program)

Fast Track Program


12 week program starting 15th November


Group Fast Track $4,500 + GST(12 week program)SAVE $1,000





SPOUSE/PARTNER

COMES FREE





SPOUSE/PARTNER

COMES FREEBRING A FRIEND

pay $3,450 each



Group Fast Track $3,950(normally $4,950)

Spouse/Partner comes Free(normally $500)

Bring a Friend & only $3,450 each
