How to Successfully Invest in Property with Real Estate Investar’sPremium Membership

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• Property investor for the past 10 years

• Personal experience with renovations & cash flow properties

• Great amount of industry experience

Dennis Wong

Material contained in this presentation is an overview only. It should not beconsidered as a comprehensive statement on any matter nor relied upon assuch.

This presentation contains general information only and does not take intoaccount your personal objectives, financial situation or needs and you shouldconsider whether the information is appropriate to you before acting on it.

Before acting on any information you should consider seeking advice from afinancial adviser and your accountant before making any financial decision inrelation to any matters discussed in this presentation.

General advice disclaimer

We help investors

build and manage

their property portfolios

Real Estate Investar

• Guided and mentored thousands of clients to plan and purchase property since 2006

• Helped clients build wealth through properties

• Provides superior real estate information

• Assisted clients reduce debt and retire early

• Over 260,000 members

Real Estate Investar

• Educational content

• Suburb Performance Reports

• Suburb research data

• Monthly market reports

• For DIY Investor

• Access to unique property investment tools

• Corelogic RPNZ

• Forecast equity & cashflow positions

• Track & optimise your portfolio

• Includes Free Membership features

• For hands-off Investor

• 5 step approach to help you buy your next property

• Property Acquisition Plan

• We find, research & recommend opportunities

• We guide you through the entire process

• Includes 1 Yr Pro Membership

In partnership with…

Poll: How many properties do you own?

Where do I start?

• You want to invest in real estate

• Too much information or conflicting

information available

• “Hotspots” – if it’s on the news it may

already be too late

• This can be where REI can help you

• Utilise free resources like these

webinars or our blogs and find a

strategy to focus on!

Key Characteristics of Successful Property Investors

• Treat property investment as a business

• Have a plan

• Create a team of experts that you can trust

• Research, research, research!

• Maximise Depreciation benefits

• Have patience – property is a long term game

• Target market – try to appeal to the largest audience

• Location is key

• Regularly review your portfolio

• Set SMART short & long term goals

Setting achievable property investment goals

• What is your actual goal?

• Hint: If you are watching, it should involve buying a property!

• How do you plan to achieve this goal?

• Is it reasonable to expect you can complete that goal?

• Do you have the time?

• Do you have the know how?

Setting goals, some helpful tips

• Start at the end!

• Identify where you are now

• What are the steps you need to take to get to your goal

• Your goal should be comprised of several smaller goals

• What do you need to complete those smaller goals, write out those details

• Start!

• The number one reason most people fail is they don’t do that last step!

Choosing a strategy

• If you don’t have a plan then you are

planning to fail!

• This will start to define where you

look to acquire property

• Which strategy would suit you?

• What experience do you have?

• Where do you want to be in 10

years?

Some examples

• If your goal is to create passive

income then positive income

properties may be a great way to

start

• If you have great serviceability but

poor equity, perhaps a strategy that

involved building cash equity like

renovations or subdivisions would

be more suitable

• It all depends on what you are trying

to achieve, start at your goal and

work backwards

Strategy – Renovations

Pros

• With the right changes, can create significant equity uplift over a short period of time

• Increase rental income after renovation

• Renovate an existing property – smaller investment required than buying a new property

Cons

• Can be costly – unforeseen issues can arise

• For DIY investors with no experience, costs can blow out

• Time consuming

• If renovation takes longer than expected, holding costs & missed rent will have a negative impact on return

• No guarantee on return –equity uplift or rental

Strategy – Subdivisions

Pros

• Can create substantial equity or cash over a short period of time

• Take advantage of under utilised land

• Sell one block & keep the other - loan could be fully or nearly paid off

Cons

• Can be costly

• Council regulations & restrictions

• No guarantee on return

• Time consuming

• Reduced space – may not be as appealing to buyers

Strategy - Risk Assessment

Forecasting capital growth

peak

trough

Importance of having the right finance structure

What do you need to determine to

ensure your finance is structured

right:

• Review your current financial

position

• Assess the property being

acquired

• Need to consider your future

objectives and goals

Importance of having the right finance structure

• Is a bank relationship important?

• Cross collateralise or stand alone?

• Is having the cheapest deal

available the right strategy?

• What product is right for you?

• What if you get it wrong?

What type of investor are you?

DIY Investor• Organise finance approval

• Select a property investing strategy that will suit your goals

• Choose an asset class of property

• Research suburb data & choose your location

• Fina & analyse property investment opportunities

• Check comparable sales & on the market history

• Draw up a property shortlist

• Inspections

• Submit offers

• Negotiate the purchase price

• Find a property manager or manage the property yourself

• Track & optimise your portfolio’s performance

• Repeat!

What type of investor are you?

Pros• Save you money

• It can be a huge amount of fun

• You have the opportunity to buy below market value

• You can time the market

• You have access to every property in New Zealand

• It can become a passion for you

• Learning experience

Cons• You can make mistakes

• Each mistake can cost you time & money

• It can be time consuming

• It can be mentally & emotionally draining

• You only get access to on market listings

• You’re not in the industry on a day to day basis

• More likely to buy in boom & bust areas

• More likely to invest with your heart than your head

DIY Investor

What type of investor are you?

Pros• Save you time

• Develop a property investment strategy

• Experts look out for your best interests

• Research & experience can save you money

• Work inside the industry every day

• Make buying property simple & stress free

• Deal with real estate agents, developers & builders on your behalf

• Access to off market opportunities

Cons• High fees (buyers agents

generally charge 2-3% of purchase price) + engagement fee

• Can be expensive, charge you for every property you purchase

• Some buyers agents won’t let you have a say in what you purchase

• Some buyers agents are actually property marketers

• Some property educators teach you the theory but you won’t put it into action

Hands Off Investing

Poll: What’s your biggest challenge with investing?

What are some common investing challenges

• Don’t have the time

• Don’t have the knowledge or confidence

• Can’t find the right investment property

• Not sure what to buy

Poll: When are you planning to purchase next?

Introducing Premium Membership

Using a five step, strategic approach we help:

• First time investors purchase their first property

• Existing investors grow their portfolio

Five step, strategic approach

Which property is right for you?

We’ll work together to determine your property investing goals and the investing strategy you intend to use. For example:

1. Boost or replace your income with passive cash flow

2. Generate equity through long term capital growth

We help first time and existing investors purchase

Premium Membership Advantages

• We do all the hard work for you

• 100% money back if you can’t obtain finance pre-approval

• Leverage our experience, professional ties and partners

• Receive a $5,000 cash rebate on settlement for investment grade property opportunities

• Exclusive access to stock

• First access to stock before Free & Pro Members

• Dedicated Portfolio Manager

Recent member purchases

Madras / Salisbury Corner, Christchurch Central, CANTERBURY

Strategy: Dual Key

• Purchase Price $515,000 ($5,000 discount to valuation)

• Rents at $682 per week

• Positive Cash Flow (forecast $9,327 in year one)

• Gross Yield 6.86%

• Forecast 10 year capital increase $400K+

Recent member purchases

Recent member purchases

Northlake, Outlet Rd, Wanaka, Central OTAGO

Strategy: Off the plan

• Entry Price $595,000 ($5,000 discount to valuation)

• 30%+ below Wanaka Median price

• Fantastic location set in beautiful Wanaka scenery

• No annual fees or body corporate levies

• 80% projection for Wanaka 20 year population growth

Recent member purchases

Recent member purchases

40 Draper St, Richmond, Christchurch, CANTEBURY

Strategy: Off the plan

• Purchase Price: $353,400 ($5,000 discount to valuation)

• Rebate on Settlement: $3,800

• Valuation: $380,000

• Equity on Settlement: $26,600

• Rent: $405 per week

• Gross Yield: 5.93%

• After tax cash flow per annum: $2,976

Recent member purchases

REI Premium Membership

Helps you create long term wealth through low risk property investments

$4,995

Poll: Would you like a free call for a consultation?

Thank you & good luck on your investing journey

Book your free consultation:

https://info.realestateinvestar.co.nz/premium-membership-consultation