Investor Rebounds From Bad Property Deals And Pockets $390,000 In Just 2 Years.
“Binvested has allowed me to follow my passion and travel. In the last two years, the income has allowed me and my partner to travel to China, Hawaii, New Zealand, Fiji, Vanuatu and weekends to Victoria and the Gold Coast. This otherwise would not have been possible”.
David Brae, Sydney Australia
Name, age, occupation: David Brae, 30, Strata Manager
Starting savings: $0
Starting equity: $100,000
Achievements With Binvested
Number of properties with Binvested: 6 properties
Current Binvested property total worth: $1,270,000
Current Binvested property net worth: $390,000
Current Binvested property rental income: $1,820 per week
Current Binvested property mortgage repayments: $1,059 per week
Duration with Binvested: 2 years
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David Brae is a strata manager for commercial real estate and apartment blocks.
He has always had an interest in real estate and renovation. At the age of 21 David decided to buy his first property, which was successful and started to make money for him.
David was encouraged by his first investment experience and bought two more properties to add to his portfolio, this time through a buyer’s agency.
David recalls the company which he used to purchase the properties seemed reputable and to have his best interests at heart. He was impressed that they did not charge any fees. However, after receiving a poor bank valuation he realized the two properties were overpriced and had little resale potential.
Without the bank valuation, David says he would have unwittingly continued and bought a third property in a mining town. This property would soon have halved in value.
David says, “I bought off the plan and the value hasn’t gone anywhere. They are costing me money each week and are negatively geared. I paid way too much, three years later and the market value of both properties is still below the purchase price”.
David decided to purchase one more property, buying a two storey unit in The Entrance, NSW. Although this increased in value over time, it remained negatively geared and David lost money.
Looking back on his early days of investment David says that he overestimated his success, “With four properties at my age I thought I was doing pretty well until my friend referred me to Nathan who had 150 properties and he wasn’t even 30 years old. I found it very aspirational, especially because I saw my friend buying properties through Binvested and succeeding.”
This inspired David to take action. He booked himself into a MAP Session which he describes as, “an eye opener. I had a goal of buying 20 properties but I didn’t understand how to get there (until the MAP Session)”.
He says that before the meeting, he had little understanding of how equity could be used to increase his portfolio. I just thought I would buy properties and see how I go, I didn’t have a mentor or plan. I just thought I needed to use my salary to buy more properties, I didn’t know about leveraging equity to buy more”. He realized that Binvested could help him acquire more properties by using equity effectively.
Binvested helped David rescue his portfolio by injecting some capital growth and positive cash flow. This was done by acquiring six properties within the Gold Coast area within a span of two years.
The first property sourced by Binvested was purchased in 2014. It was a two bedroom townhouse on the Gold Coast. This property was listed as a bank repossession for $255,000, which Binvested negotiated down to a final price of $218,000. At the time the property was renting for $260 per week, however, David increased it to $300 per week right away. In 2016 the property was valued at $300,000 and is renting for $320 per week.
David says “what impressed me most is I didn’t have a lot of equity to start with, however in two instances I was able to buy two properties at once, whereas other buyers agencies wouldn’t be able to do that. With Binvested I got access to a variety of investment options and properties I wouldn’t be able to find on the internet. Even if it was listed on the internet for $255,000, I would happily offer $245,000 but Nathan got it for $218,000!”
Although David has only been with Binvested for two years he is already seeing the positive effects on his life, saying “Binvested has allowed me to follow my passion and travel. In the last two years, the income has allowed me and my partner to travel to China, Hawaii, New Zealand, Fiji, Vanuatu and weekends to Victoria and the Gold Coast. This otherwise would not have been possible”.
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