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The Book
The Eight Secrets of Property Leverage
I've been investing in and learning about property for over ten years. That experience and learning comes down to Eight Secrets of Property Leverage.
These are: Getting Started with the Great Australian Dream; Attitude; Entrepreneurial Mindset; Extradordinary Insight; ROI; LVR; Venture capitalist; and Eco-Acumen. I wanted to write a book that a person could read in a night, practise some simple techniques and calculations and test out the theory in a weekend visit to a regional town. In that visit, if they had a cup of coffee, read a local newspaper, and walked down the main street and kept there eyes open, they should be able to make a good start in a very practical way about assessing the location for capital growth and tenancy. With a calculator and a simple formula combining potential rent, interest rates and occupancy, they should also have a basic way of establishing a buy in price for cashflow and a starting point for negotiations. These principles are covered in the fourth chapter 'Extradordinary Insight' and the fifth chapter 'ROI'.
In the first chapter 'Getting Started with the Great Australian Dream' I talk about my first challenge to buy the 'Castle' (our principle place of residence) where the Property was not for sale, the bank's loan amount was $100,000 short of the purchase price, and the solicitor suggested it was a waste of money to engage him because it was a transaction that was not going to happen. In the seventh chapter 'Venture Capitalist' I talk about the some of the upside of principle & interest, lines of credit and cross-securitised arrangements which many commentators advise against. You should develop your knowledge and business instincts by reading books and articles and thinking about them critically. Just because someone wrote about what worked for them at one time, it doesn't necessarily mean it will be right for you this time. I also talk about some simple lending features you should think about when arranging finance.
In between the pages, you'll also find some of my own experiences and those of people I have coached in the past who I collectively call the Apprentice.