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bjbj Hey guys, Brette Alegre-Wood here, author of The 3+1 Plan, and chairman of YPC group,
where we help you to build a thriving property portfolio so you can live the lifestyle you
ve always dreamed of, but in such a way that you re not creating a 2nd job, or actually
working yourself into an early grave. So what I wanted to today, was just, we ve been running
the webinars for a while and we ve compiled hundreds of questions that you guys been asking,
so I want to take those, and what I ve done is I ve broken them down into a number of
really key questions that most of you guys are repeatedly asking and what I ve done is
I want to present them to you so you get that level of education. I ve always been a massive,
massive supporter of free education, so that s what I want to do for you guys today, is
really give you what most people out there are concerned about in the market now about
property investment, about strategies, about structures, about all sorts of things, the
questions that you guys have been asking. It s not now me telling you what you should
be thinking, it s you guys actually feeding back and I love that about the social media
and I love that about webinars. So sit back, relax, and let s get started. One of the questions
I love and I always answer it a couple of different ways because I think it s important
that not only you guys understand why we do things and how that s applicable to you, but
I think also it s good to know as a business why we re making decisions and why we make
the decisions we do, so I ll answer from both of those aspects, but the questions is, Why
does YPC focus on New Build and Off Plan? why don t we do Second Hand, why don t we
do HMO s, Student Lets, and all these other types of properties, lease options, and things
like that? The primary thing that it comes down to, it was a business decision. It was
a business decision on my part. In my own portfolio I ve only ever bought New Build
property in the UK and Spain in fact. Everything else has been Second Hand. So when I was in
Australia, it s been Second Hand. I learned a lot about property starting out buying in
Second Hand, but what I realized was that, look, I ve always been a entrepreneur so I
ve always had businesses and the funny thing about businesses is that you don t have the
time to necessary go out and search. I remember my first property, when I first bought my
first property, it took me 3 months of schmoozing real estate agents that perhaps I didn t like
or perhaps were full of ego. It was almost like I had to deal with these people on a
regular basis because if I wanted to get those deals, that s what I had to do. I was out
there and I was walking the streets and I was walking the pavements finding properties.
What it meant was just all the time was taking time away. If I was to put a value on that
time, it was a huge investment. For most of you guys out there, you don t have that time.
You certainly don t have the time to do it properly because if you re going to do a strategy
like that, you have to have the time to do it properly. Otherwise you miss points and
that s where it s going to cost you money, it s going to cost you even more time, or
you re going to end up with a dud property. It s going to mean you re going to be waiting
a long time to actually get a return on it. So as a business, the clients that I attract
and in my own life, I haven t got the time to do all this. For me, I want a strategy,
and I want a property strategy, that works without having to put a lot of time in, and
that is the essence of why I made the business decision to just focus on New Build and Off
Plan. That s what it comes down to, plus, I love the fact that clients are getting a
new property, it s in pristine condition. It just makes everything so much more fun
as opposed to a Second Hand property. In some ways I never want to pick up a paintbrush
again. I ve done my time and really learned my lessons from that. So that s the first
thing. The second thing, I think I ve covered that, which is the time thief. Second Hand
property can be a time thief. Boilers blow, all these sort of things happening. Just coming
across to here, in 2010, what we did here, I said probably in the middle of the year,
I said, OK, let s have a look at some of this Second Hand property that s probably under
5 years old that was New Build and let s start doing some deals on that. To be fair, what
ended up happening was I had Karen who runs our After Care, Director of Client Services,
saying to me that if I didn t stop selling that crap, that she would leave. It wasn t
that the property was crap. Most of the properties were fine. It s just that there were so many
snagging issues, so many needling things that needed to be fixed up that it was taking their
time away. In the end when we looked at it, it was actually not worth the money to sell
that stuff. The emotional stress caused on the client, it just wasn t worth it, so in
the end, I said, Right, that s it. No more Second Hand. We re just a purely focused business
on New Build, Off Plan. Let s become very, very good at that, which to be fair, we always
have been. That s always been our specialty. Even through the recession where every other
competitor has jumped out of that market, we ve continued to do it. Maintenance- I mentioned
boilers. Boilers busting, we ve got painting that may need to be done, mold, cracks, all
these sort of things happen. They don t normally happen in a New Building. It s a 1%. It s
the exception rather than the rule. So we don t need to worry about that. The other
thing is, flats and houses, what s actually happened, depending on where the property
market is, or property cycle, when the property market is getting near its height, then New
Build can be overpriced, so you ve got to make sure, and particularly in the city-centers,
you got to be jumping out of there. The market now, prices on flats and houses New Build
have dropped something like 40-60%. That s a massive, massive drop. Now we re jumping
back in and some of the prices we re buying for are absolutely ridiculous and you re able
to do that. Right now you may not be getting the benefit of that or seeing the benefit
of that as the market is sort of recovering, but when it starts to shoot up, that s when
you re really going to see things really happen with New Build. That s when you re going to
see the decisions you made today and over the next few years will really start to pay
dividends. Price-wise, they ve come down so far. The final point I want to make is on
the Off Plan side. The flipping. Flipping is one of these salesmen-speak, if you like.
As a salesperson, people love using this, Buy Off Plan and flip before completion and
make all this money. That s great and it does happen and it will happen too as the market
starts to shoot up again, you are able to flip, 100%. But you ve got to watch it because
if you don t do it at the right part of the market, you can end up, rather than going
like this, it goes like this and you ve lost a lot of money. Now, Off Plan for us, we jumped
out in 2006. We ve jumped back in in March 2009 and we re already starting to see the
results of that. For me, that ability to be able to flip, and that s the 4th way to make
money. If you re not sure of the 3 ways, the other 3 ways to make money, just grab my book,
jump on my website and just type in, Four ways to make money. The forth way is flipping,
so you can t get that from Second Hand. It s another way to make money and it s a great
way to make money too. Especially if you understand the market, if you understand the strategy
that you re applying and the rules that apply to that, then it s great. For me, it s about
time, it s about set-and-forget. My philosophy over everything that I do, Can I set it up,
can I forget about it? If I can t, which I don t get that same benefit as much with Second
Hand property. This is going to create a bit of a storm with the Second Hand people that
say that, but the fact is that my guys and my investors spend less time on their portfolio,
less worry because they re buying New Build property. Eventually, New Build property becomes
Second Hand property, but that s where we can look at potentially selling it on or renovating
the property so it gets back to a new standard. Even thought we might talk about buying new
property, then what we might find is 5-7 years later, we go in there, we rip out the kitchens
and bathrooms and we renew it so it becomes a new home again. It s a philosophy about
New Build. It s not just the first time you buy a property. That s really important to
understand. When you re working with us and you re talking with the portfolio managers,
this is what we re going to be talking to you about, about how to do these sort of things
and how to apply that strategy. OK guys, thanks very much. m sure you found that information
really valuable. The first step really now is you need to get a plan. You need to actually
work out exactly how you re going to put this in place. So what I encourage you to do is
come in and sit down with us, talk to us, grab a coffee with us, and what we can do
is we can start mapping out what your plan is. But more importantly, not just give you
a written bit of paper that says, Go a buy a property, or Do this. We can talk about
structure, strategy, processes, procedures. We can talk about all the things you need
to put into that plan. We can talk about why you want to achieve this, what you re actually
looking to do about this. We can talk about where you re starting from. What sort of limitations,
what sort of emotional barriers you re going to face. But more importantly, we can talk
about how you re going to get there. And with those 3 elements, you ve got yourself a really
powerful plan. Then the next thing is the motivation and the action. Nothing happens
without actions, and this is where the team can help you do this. In fact we can do it
for you if that s what you want. So I encourage you to come in and meet with us, grab a coffee
or tea if you drink it, and really just sit down and get that out. One of the things you
re going to find about the way we approach this is that most companies in this industry,
what they ll do is they will try and just sell you into a property. The first phone
call you make to them, guaranteed, you re going to get sold a property. You re going
to find we don t do that. What we want to make sure is you get that plan in place, you
get all the emotional things sorted out and you re aware of those. And you really get
a feel for who you re going to be working with. Relationship is what it s all about.
It s not just flog lots of property because I m going to tell you it takes about 3 months
to buy a property, but you re going to own that property for 5, 10 years, maybe, so it
s really important that you put a structure, a strategy in place, a plan, and follow that
plan. Because otherwise what s going to happen is you can grow your portfolio very quickly
but then if you re not aware of market cycles and all these sort of things, interest rates
rising, inflation and all those, what s going to happen is you re going to be put at risk
down the track. It may look good now, but the market changes and then all the sudden,
all of your weaknesses in the portfolio you ve built are going to be displayed. So getting
a plan is going to enable you to get rid of that totally. Guys, I m looking forward to
meeting you real soon at either one of our webinars or perhaps a seminar, or if you come
to one of our office around the world. Have a great day and remember, live with passion.
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Brian Normal Brian Microsoft
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