What's your story

Great result Michael
So Mortgage broker, what steps were required to start this business

MTR

 

The last 3 years has been an exciting start to property investing and great learning experience.

In June 2012 purchased our first IP in Woodridge after 4-6 months of searching. Expectations of relatively low capital growth but solid CF - yield was 6.9%.

Spent the next 18 months looking for second IP and building savings. Considered second IP in Logan, houses in Redcliffe, established units in Brisbane inner city circle, then entry level houses in inner city Brisbane (EB, KP, WG, etc). At that time entry level houses (tidy 2Brm or 3bdrm needing reno) could still be bought in the $500-600's in suburbs like East Brisbane & the Gabba - barely more than the cost of new 2bdrm apartments. We decided it made sense to buy something with land.

In October 2014 settled on our second purchase, a 4 bdrm house in Woolloongabba, after 9 months of intensive looking in EB & WG. We had moved to Sydney, and did at least 5 trips back to Brisbane to scout places. Ultimately purchased site unseen, on the day of listing, and inspected during cooling off period. 2 other offers and ours was successful despite being just under the highest. Very happy with the result. Yield was 4.77% on this one.

Woodridge outperformed my initial expectations, and currently looking to pull equity (was 80% LVR) and buy a 3rd IP - maybe Adelaide or elsewhere with strong CF. Not in huge rush atm and a little conservative until we build a greater equity buffer.

Really enjoying the insights from this forum!

 

You're such an inspiration to the propertychat community, it's amazing how fast you've done it.

I'm curious to know how you generated 40k passive income so quickly. From my research, even 7% is only neutrally geared in Logan of the expensive rates. I'm assuming your LVR is relatively low?

 

Did the qualifications like Cert IV and Diploma, joined an aggregator and then accreditation with the banks. Have to say though, the key was finding an amazing mentor.

Without my mentor, it would have been very difficult to build the mortgage broking business.

Cheers,
Michael

 

Good for you, next passive income from MB business

All the best

MTR

 

7% was the minimum, I have several yielding higher than this. My earlier stuff is yielding over 8% through the renovations.

LVR at this stage is closer to 70%.

Cheers,
Michael