My Wealth MasteryResources for Creating the Wealth You Deserve

Are you interested in making money using property? Have you heard of Rick Otton? He is a typical Aussie bloke who has a great system for turning ordinary properties into cash machines.

He is straight forward and to the point so there is no BS with his information.

Rick uses wrapping as a key way to help his students start their real estate investment career. In what some times can be a subject that is difficult to master, Rick makes it easy so people can follow his 1-2-3- system. It’s like paint by numbers, just follow the steps.

When learning from someone, make sure they are practice what they are preaching. Rick is exactly doing that, not only does he teach his students, but he also invests using the same simple steps for his own personal success.

Click here to discover more information on Rick’s system and how you can benefit.

Happy Investing!

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1. Real estate websites
Websites like www.realestate.com.au, www.domain.com.au and real estate agents websites are great sources for locating properties for sale. Familiarise yourself with the search features of these websites and you will be able to find various types of properties, including single-family homes, condominiums, town houses, duplexes/triplexes, block of apartments, mobile homes, vacant land, farms, and rentals. Other good Internet sources include your local newspapers. Almost all major newspapers now list their entire classified section on web sites.

2. Real estate brokers and agents
Having several real estate agents scouting properties for you is one of the most effective ways to quickly and efficiently identify potential properties that can be flipped. I must stress that it is critical to your success to ensure the competency level of the team you put together. I have worked with many brokers and agents whose range of expertise and experience varies greatly.

3. Classified advertising
Almost all newspapers carry a section in their classified advertising specifically for selling real estate. Most homes listed for sale in the newspaper by agents are active listings and will typically be priced at full retail. You might notice some ads that use keywords like “motivated seller” or “must sell, owner transferring.” These types of classified advertisements are worth following up on.

4. Real estate publications
Almost all areas periodically publish books or magazines specifically designed for residential real estate sales. These real estate publications can be a very good source for locating potential deals. You will also find many helpful real estate-related advertisers in these publications - real estate agents, mortgage companies, appraisers, surveyors, title companies, real estate legal services, and insurance companies.

5. Associations and real estate investment clubs
Most cities have a number of real estate investment-related associations and clubs. These clubs provide an excellent opportunity for you to network with others who share similar interests. Members often include investors like yourself, real estate brokers, tax and real estate attorneys, architectural engineers, appraisers, and other real estate professionals.

6. Marketing
Some of these include advertising in newspapers and magazines, implementing a direct mail campaign, using signs, and doing a broadcast fax. Another very effective method of promoting your company is to implement a direct mail campaign. Your direct mail piece should be targeted to the people who can best help you-real estate agents.

7. For sale by owners
This group of homeowners represents an important segment of the potential properties available to you, so be sure to give them the attention they deserve. They can be located by looking through the classified section of your local newspaper or by driving through neighborhoods and looking for signs saying contact owner directly. Whilst its not very popular in Australia, it is still worth looking for such properties because sometimes the houses are priced too low.

8. Vacant properties
As you drive through neighborhoods in your search for investment opportunities, be sure to pay special attention to those houses that appear vacant. Vacant houses are more of a liability than an asset for their owners, so they are oftentimes available at bargain prices.

Happy Investing!

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Finding and then capitalizing on good deals are key to successful real estate investing. The most important thing is to do your research to ensure that you are making an informed and wise decision. Finding good real estate deals can be accomplished by:

1. Looking for Motivated Sellers - The main focus of your search for good real estate deals should be to find motivated sellers. Motivated sellers need to get rid of the property quickly and are willing to sell for less. These types of sellers are motivated by a number of factors that may include divorce, death, bankruptcy, and job loss.

2. Farming the Entire Area -Focus your research on an entire area rather than a specific neighborhood. If everything in the area is going for $300 per square metre and you identify a property that is $200 per square metre, this is a deal that is worth looking into. The key is to learn how to recognize a good deal.

3. Focusing on the Deal Itself - While specific neighborhoods should be considered when searching for good real estate deals, the entire search should not be focused entirely on that one neighborhood. Neighborhoods are not the driving force behind good real estate deals. The deal itself is actually the most important factor.

4. Getting it Under Contract - Successful and seasoned investors know the importance of acting fast when they identify a good deal. It is a very common practice to put a property under contract before even viewing it. This quick action allows successful investors to capitalize on good deal opportunities.
Skeptics and newbie investors view this action as reckless. It’s important to note that the contract should give the investor enough time to perform necessary due diligence with the option to walk away if any problems are found. In order to be sure that your interests are protected, always consult a real estate professional or attorney.

5. Performing the Due Diligence - Once the contract is signed, set your internal clock ticking and arrange to spend the necessary money to determine if it is a good deal. Do the least costly inspections and investigations first with the more costly inspections aft wards. This will save you money throughout the year. Make sure to use a certified inspector to inspect the property. The due diligence phase is a necessary step to ensure that you are making an informed decision in declaring the property a good deal.

Happy Investing!

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What do buyers look for in terms of the house itself? Many agree that location is a decisive factor, but so are tangibles like the price and condition of the property (is the price worth the additional huge sums of money to put this house back into mint condition? How much time will I need to renovate the dilapidated portions of this house?). Start with the outside of the house and ask yourself the following questions which are the questions that your potential buyer will be asking!:
* Do these garbage cans, discarded wood scraps and building materials strewn about carelessly an indication of the seller’s negligence?
* Are the gutters and roof in place? When was the last time the seller changed the roof? When was the last time the gutters were cleaned? Do the dry leaves in the gutter pose a fire hazard?
* Are there termites and other pests that live here?
* These overgrown bushes and trees are distracting. What is it that the sellers don’t want us to see?
* Is the lawn is looking unhealthy? Is the rest of the house like that?
* Have the patios and decks been converted into storage areas? Why can’t we see what they actually look like?
* The paint is peeling off; is that why the house looks so drab and uninviting?
* Why are there no lights outside the house? Is this the owner’s way of saving on utility bills? Is this a safe neighbourhood?

The above questions are just a few of the many questions buyers are likely to ask with respect to the outside of the house. A house’s exterior constitutes the buyer’s first impression. And we all know what they say about first impressions.

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Many people are wondering how the credit crisis and high interest rates will affect property investments in 2008.  Property forecaster Michael Matusik urges people to take a “back to basics” approach and to consider the fundamentals in times of uncertainly.  The 4 key fundamentals are all very positive – and will start to come to the fore as 2008 unfolds:

1. The Australian economy is growing strongly thanks to strong demand for our commodities in China and India.  The Queensland economy grew by 7.2% in 2007, 2.1% of that growth was in the 3 months to December 2007.  Western Australia grew by 9.7% in 2007, 1.5% of that growth being in the 3 months to December.  Victoria also showed strong growth with 5.2% in 2007, 2 % being in the 3 months to December.  NSW and South Australia also grew by 4.5% in 2007

2. Nationwide employment growth is very strong.  Over 307,000 new jobs were created in across Australia in 2007.  Unemployment is now below 4% in most states.  In Qld unemployment is at 3.6%.

3. Australia’s population growth is near record levels, increasing 320,000 people over the last 12 months.  More than half of the growth came from overseas migration (179,100).  Queensland was the fastest growing state with an increase of 90,600 people over the year to September.  Victoria’s population grew by 78,100, NSW by 71, 400, Western Australia by 48,600, and SA by 16,000.  The ABS projections have the total Australian population increasing by 32% or 284,000 per annum up until 2031. Sydney is projected to grow by 45,000 per annum, Melbourne by 47,000 per annum, Brisbane by 52,000 per annum, and Adelaide by 4,700 per annum.  70% of the projected growth will be absorbed by the  eight capital cities.  That increases to 90% when you include the coastal areas adjacent to Brisbane, Sydney, Melbourne and Perth.  When including these coastal areas the population of the major cities is expected to grow by 47% by 2031.

4. The underlying demand for new residential dwellings is currently at 180,000 per annum.  Last year 151,000 new homes were created, 17% less than was needed.  The cumulative effect of years of undersupply has resulted in new stock deficiency of 32% across the country.  The greatest undersupply is in Qld (46%), NSW (45%) and Victoria (29%).  Matusik believes that tighter and more expensive credit will result in less new starts over 2008 with the underlying undersupply blowing out to 40%.  This will place pressure on residential prices which are expected to grow by 10% in 2008 and 2009.

Other commentators are also expecting a strong year for property prices.  Craig James, Chief Economist at ComSec, anticipates that property prices will grow by between 10% and 15% while shares will slow to 3%.  He says all major cities are experiencing extremely low vacancy rates, at a 33 year low.  Sydney and Melbourne have vacancy rates of 0.9%.  Rents in capital cities are expected to rise sharply in 2008 in all major cities.

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