How to Find the Best IMPERFECT Property

Video Transcription:

Hey guys, so, you'll never know you've made the right decision. Okay. You know, and this is something key with property investment is there's always that... We deal in imperfect properties. There's always something about the property, the market, you know, the tenants, the legislation, the taxation, the whatever. There's always something about the property that makes it imperfect, yeah. If the world was full of perfect properties, you know, we would just buy them and then nothing else would get sold. The reality is because of the variety in stock, because the variety of the micro economies and this in the areas and fundamentals and closest to train station and buses and shops and investment in the area, it's always changing. So it's always imperfect.

The problem is as investors we generally want and we generally look for the perfect property. You know what? I've learned to become eternally frustrated as an investor. Frustrated because there's always something wrong with the properties. There was always something I can pick that is wrong, but I still invest anyway. And I think that's one of the key. You still have to invest, irrespective of imperfect. Now obviously there's a level at which you go, "You know what, that property is just plain imperfect." I was going to say another four letter word that starts with S and ends it. But the bottom line is there's a point at which you go, "You know what? No. I can find a better property or better value property than that particular property." Or there's too much work involved in getting that up to standard.

Now you know there's various strategies you operate. I mean, my first strategy was worst house, best street, which basically means I went for the best fundamentals. And I found the worst house. And then what I did is I went and lived in that house and I renovated that house to get it to become maybe not the best house in the street, but certainly on par. And by that I lifted my value and I made money and that allowed me to get out into the next property. And then, you know, repeat. You know, and that's pretty much what I did for the first probably three or four or five houses that I had, you know? And that worked very well. And can you still do that? Absolutely you can still. That's still a viable thing, but you know, I was single back then. It didn't matter where I lived. So, you know, I was able to do that.

Nowadays I might do it a little bit differently because I, you know, it might be worst house, best street, but I'm probably going to get contractors to go in and do all the work because I've got a bit more money to do. Back then, you know, I was skint when I started off, every last dollar went into buying the property and I had nothing left. So I had to wait until I earned money. And then I had barbecues where my mates used to come around and you know, paint the place and fix the decking and you know, all that sort of stuff.

But the bottom line is here, you're never going to know it's correct. And it's the same with this property. Now that property made me huge amounts of money... Well the first property I did, huge amounts of money and really set the course for my financial freedom, you know, going forward. The interesting thing was at that stage, you know, it was still, you know, pretty crappy house. You know, there were still, when it rained heavily, it's still leaked. But the reality was it only rained once every three months. I knew where the three leaks were and so I pretty much had buckets ready to go. But to fix the roof was going to cost substantial amounts of money so it didn't fix it, you know.

And in the end I finally fixed it right before I sold it, which was quite interesting because that's another thing with a lot of people do. Is only fix things after they're about to sell them. Why not fix them early and live, enjoy living in it, you know? But anyway that's off the topic. Look, bottom line is you're never going to know it's 100% because it was full of imperfect properties, but imperfect is still good enough to make a bloody good lifestyle, to make money and to really live the dreams that you choose for yourself. And I think that's the key here. You know, learn what is imperfect and decide what is the cutoff point. Yes. I can go with that, no, that is absolutely not. I'm going to buy something with that. And that's pretty much how I do it.

So for me, I don't buy in crappy areas. I know they're cheap properties and I know I can get good yields. But I just don't like having tenants that do the wrong thing and don't pay the rent and do all these things. What I want is what I call the every person house. Yeah, where the biggest portion of people live. They have jobs, they pay the bills. I don't have too many problems. They look after the place.

And so it's these little rules which as you go through the course and as you go through my online content, as you get to know me, you're going to realise it. I live by these rules. That's what I do. This is how I invest. And they're all there. You know, it's not like... This is not rocket science. This is stuff that I've been taught by my mentors. And then I'm passing onto you guys.

Anyway, guys. So let's go out there and find the imperfect property. Have a great day, live with passion, remember subscribe and ask any questions, and I'll be happy to answer. All right guys, see you later