Goals for 2016

2016 financial goals for me:

1. Complete Parramatta development, extract equity and buy either 1 deal with a 5mil TDC looking for 20-30% return, or buy 2 deals, 2.5mil each TDC looking at same return as above.
2. Start building Brisbane development in September.
3. Buy another development deal with a JV business partner with combined equity of 2mil looking for a 30% plus return on 7-8mil TDC.
4. Expand my mentoring clients base by 25%.

 

Me too! Common man don't hold out....

 

I like the idea of five, 2016 will be the forth year I've had written out specific goals.

The first year I had only 4, I found it so powerful the next year I did half a page, then this year full page lost my way a bit this year. Massive lifestyle change etc though this year.

For 2016 I'll go back to fewer target goals that I read at least once everyday.

 

Work:

1. Quit current job and get out of the comfort zone
2. Look at a real estate career as either a property manager or sales agent
3. Focus and master item 2

Personal

1. Be good to the wife (I need her support financially )

 

Make the best effort I can to get Oprah to hire me as her Ethical Property (and Share) Investment Motivational Czar.

Move over Gail and Stedman!

 

Just take a long flight once a year- great excuse to force feed yourself 6 or 8 movie catch ups

 

Went to an auction of a property today; in the same street as our recently purchased (future) PPoR...

Pouring rain and cold; no real bids, waaay under reserve and passed in.

Total waste of time for all concerned.

Did it for 3 months and it stank. Glad I'm not an agent workin' that gig on w/ends.

 

Anyone else been reviewing their goals? Still time to make some more progress this year What a difference a year makes. I met some goals within a couple of months of setting them and some went out the window. Really interesting to see how I've changed my ideas over the year.

 

How are you tracking @Brian84

 

Mine is just not according to plan
...
But by turn of event this year, 2016 will be

• Settling the land - land delayed by 9 months
• Finalise future PPOR build contract - complete!
• Get finance - complete!
• Build the bloody house - can't build without land
• Maybe build a pool if I still have fund - maybe not...
• Move to Melbourne - delayed for another 6-9 months
• Rebuild my buffer in 2017 - ... doing this now

 

Nice avatar the yatch scene

 

You should have seen my walls and ceiling of my bedroom years ago. Every inch covered with dreams i wanted to achieve. Would shred each one when we achieved it. Only a few left, put em in a folder now eagerly waiting for their Execution Day to arrive

 

Intense!

 

Didn't bother with the car.
Did not buy any IPs, but getting granny flats done instead
Not tassie, but going to NZ instead

Regarding PPOR only connected Gas. Rest, either not doing or still in works!
-

 

I has originally written this on 21st Nov 2015 in this thread.

I had no idea i'd find an awesome new PPOR to buy just 2 weeks later... which threw out a lot of plans.

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I am currently completely confused for strategy for 2016. Here is what I've written, and there is no way I could pursue all the property ideas on it so that really needs refining. But I also think if maybe if I decide to move to Brisbane, life would change anyway...

Work:

• Make 2 years at CBA (or in banking in general). I really enjoy my job. But.... still happy to think about any other interesting job ideas that pop up. I have to think about it. - done, and still keep an eye out for other jobs. I really like my current job though. Spent yesterday afternoon shadowing another team (they all do varied accounting work).... I would hate to do their jobs for any period of time. But I also shadowed in a part of the CBA property team... will do more there.
• Plus continue with Airbnb - done
• Continue with volleyball - done

Personal:

• Have a partner who is into investing - nope
• Maybe move to Brisbane - nope. New Sydney PPOR.

Property strategies:
Let's assume I can finance 1 more resi.
At the rate we are going I should have no interest to pay on the PPOR debt at the end of 2016. - new home... so have ppor debt still.

Capital growth ideas:

• Redfern/Darlington/Chippendale. Pyrmont/Ultimo too. Close to city but not high rise. Low strata <$1000. - did not do. I keep an eye out, but no amazing buys to be had
• Newcastle development - nope. Not on radar.
• Purchase of 1 more house in Brisbane (bay views) and ideally with good land. - still on radar
• Could maybe diversify into Melbourne but I would need to know about the areas - had a look but still not confident on buying there atm.

Cashflow

• More airbnb (Sydney City, or somewhere Brisbane if i'm there.) - yes
• NRAS - really looked and really did think about it, but did not commit. Even though its very good for cashflow, I think the Capital growth potential is lower on new units and townhouses
• USA properties (I would need to understand the USA Market) - don't know the market therefore no purchases

I'm sure 1 more purchase in NSW will tip me into the need to pay land tax. I assume trusts dont get their own thresholds in NSW. - yes

Manufactured growth
Look for:

• Under market val purchases (solid purchase...no other buyer situation) - not easy but may achieve this in brisbane
• Reno potential - yes, I would still look for this
• Addition of extra bedrooms/better usage of space opportunities - would still do this
• Development. - yes, still looking for this in the next one

Or.... once I cant do any more standard resi (assume I might hit a servicing wall after 1 more purchase) I could look into Commercial and/or an SMSF. - still very interested in commercial due to better yields and trying to do something in this space. Still feel I need to know a lot more before any commitment.

I suppose... if I was to sell the PPOR then I have great equity. Not sure how much it will help my serviceability though. - PPOR sold.... upgraded

Call this a Brain dump/WIP....

Edit: Decided the stuff I have underlined is what I should focus on.... I am not a timing lord (unlike @See Change) and I am of the opinion that 2016 will not be a year of massive capital growth anywhere in Australia unfortunately... (true! Melbourne and Sydney still performing but they have been going up for a few years now) but I can confidently and comfortably do the stuff I underlined.... no problems.... so that's what I'll focus on.
Rinse and repeat.
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- I became a dad for the second time to my beautiful daughter Sophie.
- I bought my new 4wd
- I just completed cert iv in building and construction and will hopefully have my builders licence soon.
- no properties as we got knocked back because my wife is on maternity leave. So that is my new goal for next year.

 

Fantastic

 

Personally , its been a big year. Got married - twice in 2 months !
Cracked the $7 Million portfolio value (nudging $8 million now)
Grew my property portfolio to 15. (14 + PPOR)


Business wise, the past 4 years have been huge. I have exceeded all the expectations I had when I left Firstmac to set up Hibernian in August 2012. I had about 60K in the bank, a home office, and no staff. But I had a very specific plan ; to take on NRAS in a very different way to what every Tom, Dick and Harry was doing. I believed in what well executed NRAS could do for cash flow, and therefore debt reduction - and as a banker I was convinced debt reduction would become ever more important in the coming years. And because I built and implemented the first ever NRAS lending product ( back in 2009) I knew absolutely, without any doubt, that I understood NRAS better than anyone else in the country- full stop. I also knew that it was being done wrong. I wasnt dissuaded by how the SE qld white shoe brigade had been using it to dress mutton up as lamb. I saw how potent it could be if done properly. So I went out and did it properly.

I had hoped that it would be successful, obviously - I didnt start the business to stay in the mortgage belt rat race. But without compromising one iota on the core principals of valuations, valuations, valuations, and without compromising one iota on that constant offers to take those excessive comms on offer elsewhere, I stuck to a core, selective product list of NRAS stock that no one else had. And the business has now become extremely successful.

And I did that simply by putting together my own NRAS deals. Simple as that. No magical wizardy. I just took a different approach to everyone else. I developed my own NRAS stock for selling to my clients. I spent the first year putting just about every deal together from the ground up. First I sourced the NRAS allocations ( I was very well connected with NRAS consortium executives - I'm the guy that got them approved for lending back in 08/09. And I'm the guy that got the mortgage insurers to accept them)

Then I went out and found developers and put the deals together, one by one... Then I did the tens of hours of Govt NRAS paperwork... and while all that was going on I also went out and built a B2B network by doing dozens of finance professional workshops with all those planners and accountants and brokers - educating them about how NRAS , if done correctly, could pay off their clients mortgages, reduce their taxable income, increase their net income and help them help their clients into multi property portfolios . I also did the hundreds and hundreds of hours of blogging, and more blogging, and more blogging on forums such as this, and then I basically kept doing all of the above for the 4 years that followed And as the momentum grew, I handled all of the sales and much of the finance.

During all of this, I remained a 1 man band. Yeah it meant that except for Xmas and New Years , I pretty much worked 16,17,18 hour days, 7 days a week for pretty much all of 2013, 2014 and 2015 ( 2016 has been far less stressful - its been settlements more so than sales) but the key thing above all else was that it allowed me total exclusivity on the NRAS stock that I put together. It allowed me a lot of control of prices as well ( thats a whole other story for another day) and when all is said and done, that allowed me to do NRAS far better than everyone else. That has been the key. I have consitently put together good stock, in good locations, with vals on the money. Without taking this approach, I may as well have just been one of the dozen or more online NRAS sellers who would take on any NRAS stock anywhere in the land, with no selection criteria whatsoever, other than "commissions" - but I started the business to do NRAS properly

In the end, the results have been well beyond what I had anticipated I could achieve. The final count looks something like this; I have helped investors into more than 350 NRAS approved dwellings. I have had only one valuation shortfall along the way. There are many NRAS naysayers on here, and valuations are typically their biggest gripe. So I'm particularly proud of that. It tells me I did NRAS right, whether the naysayers agree or not. I have also written several hundred loans during the past 4 years. So the business has proven successful enough that I have been able to build a really strong portfolio for myself, as well as paying off my PPOR. And as an added bonus, I have been left with a more than handy 6 figure tax free annual cash flow just from the property portfolio, for the next 8-10 years. And many of those investors who purchased from me have been somersofters and propertychatters. So Im very grateful for their support.

2017 and beyond will see the focus turn to Dual Occupancy that will produce very similar numbers to NRAS. The core value proposition I believe in ; that high yielding, debt reducing cash flow adds immense value to any investors portfolio because of the borrowing capacity improvements it offers over time, hasn't diminished just because NRAS is now seeing its final days and final purchasing opportunities. Absolutely nothing will change for investors, with regards to the importance of managing borrowing capacity. Any investor here with ambitions to do better than 2 or 3 properties should be under no illusions. Reducing debt will absolutely, undeniably be as important and valuable next year, and the year after, and the year after that, as it has become in the last 12 months since APRA. And as investors move to each new purchase, debt reduction will only become more and more and more critical. For many, borrowing capacity is a problem already. For others, it may not be a problem yet, but in the end, for all but the highest income earners, debt reduction will be THE key difference between those who look back in 10,15 ,20 years time and admire their 7, 8 , 9 + property portfolio, and those who wonder why they couldn't ever get past property #2 or #3.

 

So amazing to look back a year. Sounds like a change of location might have been on the cards but it all changed when you found your dream home...plus you're still hanging in with the partner With the markets you considered but were put off by not enough knowledge, did you consider using a BA? Hard if not impossible to know all markets, so why miss a rising market just because you're not on the ground?

 

True that.... would you believe i'm looking at buying next Brisbane one with a BA.