Drew’s job was killing him – literally. But property gave Kate and Drew a way to turn their humble nest egg into total freedom.
At just 25 years of age, Drew and Kate purchased their first property. It was a great start financially but there was a hiccup was on the horizon.
Though Drew really enjoyed his job as a boiler maker, it was taking a significant toll on his health. Kate was gravely concerned, and the doctor had consistently warned Drew that it was taking years off his life.
After scraping metal particles from his eye for the third time in a week, Drew’s Doctor ordered him to stop; working in the toxic fumes, heat and metal dust was no longer an option. He urgently needed to change tack.
Meanwhile, Kate’s parents were in the property investment game which meant Kate was sitting on a little nest egg wondering what to do with it.
She looked into buying property. After doing the sums, she thought she could take a hit of up to $100 a week from negative gearing.
At this point she didn’t even know that positive gearing was a thing!
“I had no idea there was anything else other than negative gearing… I thought, ‘what does she mean positive gearing?’” – Kate
Dymphna Boholt had appeared on realestate.com and Kate found Dymphna hard to ignore.
At the time the couple thought that what Dymphna said sounded like a lot of hocus-pocus.
Self confesssed skeptic Drew felt anxious that Dymphna Boholt was going to take their money and run! He says, “I was literally dragged along by Kate to hear more.”
Education is everything. As soon as the couple understood what positive gearing was and how to achieve it, they realised what they might be able to achieve with their $58,000 worth of equity.
Understanding positive gearing meant they’d achieved their first mental revolution, and the wheels were now in motion.
Deal 1 – Reno with a straight bat
Drew stopped Boiler Making and started a handy-man business though it didn’t bring in the same income the couple needed to build up their bank balance.
For their first deal, they found a renovation opportunity in Brisbane. Doing the renovations on the weekend meant things took a little longer than expected but this first deal still proved to be a solid investment.
After expenses, Drew and Kate scored a net profit of $75,000.
“We realised we really enjoyed renovating. It’s so satisfying.” – Kate
Deal 2 – From junk to jewel
Their second purchase was not much to look at – in fact it was infested with fleas! Lucky for Drew and Kate, no one else could stomach it, and they were able to get it at a good price.
The couple offered $63,000 under the asking price and the Real Estate agent replied a speedy ‘yes!’ and up went the sold sticker.
They put a new spin on flea market.
This little dump with jumpers, may not have been glamourous but after renovations, it earned them a dazzling $82,000.
Deal 3 & 4 – Hey good looking
Having now renovated two houses, it was time to revisit their own home. Unlike the previous properties, theirs only required some tiling and paintwork. Prettying up this pad really paid off, with Drew and Kate pocketing close to $100,000 in equity uplift.
They were getting good at this reno game.
They let their renovation success flow into their fourth deal – a property that they ended up liking so much that they moved into it! They had turned dilapidated into remarkable.
The change in location also Freed up $190,000.00 in equity for new deals was exactly what they were after. A bonus $10K passive income was also a helpful buffer for maternity leave.
Deal 5 – Ramshackle to robust
Kate and Drew partnered up with a family member who had bought a large block they could split into two. They would project manage the split and pay for the required works.
Doing most things themselves saved them a substantial amount and they created a total project profit of $430,000!
“Do your due diligence. We bought land and pretty much got a free house. You can’t always trust the marketing” – Drew
Deal 6 – Persistence pays off
A surprising opportunity revealed itself in their next deal – a reno-subdivide project.
The land alone was worth $930,000. A purchase price of $1.03M meant the house itself was a heartbeat away from being a freebie.
Drew and Kate saw the potential in the block and the views. They leveraged the poor marketing efforts and channelled their coach’s directive “Never ever give up”.
They had their eye on the prize, and there’s $400,000 in this project, waiting for them to claim.
Just Scratching the Surface
Kate and Drew could see now that “Buy and Hold” was an inherited mindset that no longer served them. It took some work on their mindset – on a willingness to let go – but they have sold a bunch of underperforming properties to really get their portfolio into top gear.
Without feeling compelled to over commit, Kate and Drew have created a potent portfolio.
As a couple they have continued to demonstrate consistent growth across all areas of their lives.
Pride runs deep for what they have been able to achieve. They’ve balanced consistent financial growth with abundant family time.
With health and hearts in balance, this young family is set for many happy times ahead.
“Being educated means we‘ve been able to really live. We‘ve had two beautiful boys, extended maternity leave and lots of holidays. The kids have become seasoned travellers!”
These stories and the results in them were captured at a specific point in time. The real estate market and the investing strategies used to succeed are constantly changing. The achievements and results of these investors may have changed since these stories were recorded. Each of these investors engaged in in-depth training, coaching and mentoring to be able to achieve these results. Their results are not typical and should not be taken as a guarantee of the results you may achieve. Your personal results will be in-line with the training, education and hard work that you personally conduct.