Our names are Mandy and Ian and we attended Mark’s Three Day course at the end of last year.  We enjoyed the weekend the high energy and comprehensive content very much.  Since we have returned home we have joined forces with my brother and his partner Lynda and are working together full steam ahead.

We enjoyed Mark’s content on Splitters – which involves taking one large block and splitting it into two smaller blocks.  It is a profitable and creative strategy. For our first deal we have a block of land that we are splitting into two and getting house plans approved so we can sell it out as land with plans. We stand to make somewhere between $60,000 and $110,000 on this one small deal - it just depends on the price we can sell the land for.

We are stoked with the progress we have made!  The best part is we know we can do this over and over again for the rest of our lives. It’s just brilliant.

Step 1: Learning to Create Wealth

We attended Property Options with Mark Rolton and learnt that controlling and profiting from property was much smarter than being in debt.

Step 2 : Finding the Deal

We learnt from Mark how to use RPData to target exactly what we were looking for - a large block of land that had potential to be subdivided into two blocks. Mark taught us to look first in our own backyards, meaning the town in which we live – not the CBD of capital cities.  We live in a large rural town and we found lots of opportunities.

Step 3: Applying the Strategy - Splitters

Using our knowledge of Splitters we had learnt from the three day course, we began searching. We modified the Splitter strategy and applied the same principles to a vacant block.  Our aim is to split the block into two and get approval for house plans with land.  This will add value to the land and make it more appealing to buyers- especially young people buying their first house.

Step 4: Know the Numbers

Mark taught us to be conservative with our numbers and do our research thoroughly. We talked to real estate agents to get a feel for the market on vacant land in our area and we believe it be $125,000 per finished block. Our conservative numbers are outlined below. We have decided to purchase the block of land as we bought it at such a discounted price – another strategy we learnt from our Property Options weekend.

1. Purchase Price: $96,000
2. Project Costs: $144,440
3. Sale Price: $250,000
4. Profit: $105,560

 

Breakdown of Costings

1. Stamp duty
2. Legal's: $3,000
3. Splitting costs: $25,000
4. Easement drainage: $2,000
5. Building inspection
6. Service Connections: $8,000
7. Soil sampling & Plans: $2,500
8. Sell 1st land with plans: $125,000
9. Sell 2nd land with plans: $125,000
10. Agents fees 3% $7,500
11. Total sales $250,000
12. Total costs $144,440
13. Gross Profit: $105,560

It has been wonderful to learn new and creative ways to profit from property.  It’s great to be able to work together as a family and share the workload and profits.  We know that this is the way to more financial freedom for our whole family and that we can replicate our success over and over again.