Below is some of the notes taken from today seminar:
Speaker:Ms Prudence Wong
She is an ordinary mother of 2 sons.
From Sabah, she get her first job in 1995 With Salary $1800.
2nd year increment is $150.
In 2002 attended Property investment seminar and start her investment journey till today, about 12 years of experience.
She quit her job after 16 months of the seminar.
Along the way she founded 8 investment holding companies and 1 management company.
She said that she has a system on how to managed it with 100 over tenant at a time.
She bought her 1st property at Jalan Ampang.
$180K in 2002 during SARS whic is 20% Below Market value.
Monthly Rental = $1900
Yield 13%
Sell later profit with $50K
2nd property is 3 storey corner shop at $1.1M on 20 Nov 2005
Rental=$13.5K
Yield 14.7%
Sold at $3.5 mil on Dec 2011
Profit $2.4 mil
She recently bought a condo JV with her god brother at $390K on 20 Oct 2013
Rent=$3000
Yield=9.5%
Market value now is $430K
In order to sell higher, need to have GOOD tenant.Who to sell higher price?
1) Sell to tenant. Because you increase rental every year or every 2 years. So tenant also not stupid, they will buy from you and pay for themselve. With GOOD tenant,you can sell your property with 20% higher compare to other
2) Business investor. For business investor, they won't park their money in with the bank which only give merely 3%. As long as your property having high yield and Healthy cash flow, they will buy from you even with 20% higher than market price
Where is BEST LOCATION to invest?
She said that "It is not about what you invest but HOW you INVEST"
Why property investment?
1. everything is getting more and more expensive,inflation kick in
2. Space is getting smaller and smaller, developer launching 200 sqft now in KL, some thinking of 100 sqft (holy shit)
3. to make your money work harder for you through LEVERAGING
For those has property have you thought of below?
1) Do you know your property cash flow?Is your cash flow is positive, neutral or negative?
2) What cost y buy and hold the property? New property required 6-12 months holding capability
Importance of HEALTHY Cash Flow (Positive & NEUTRAL)
-stand out from the rest and gain more value of your property
-suffcient fund (to buy more property)
-stress reliever (No stress for the monthly commitment)
-Credit credibility improved (Must love your banker)
What is the TREND now.........
You can download the report from iproperty.com
There is a market sentiment report 2013, at page 12 read it there.It mentioned that motivation to buy Property:41% is for rental income, 27% is for capital appreciation.
With this, we as a Property Entrepreneur need to master the skill of LAND LORDING......
TIPs for evict any unlawful tenant out from you property is "TRESPASSING" in the police report.
Police will arrive in 15 mins.
Cashflow is power
-Duplication of profits
-Multiplication of profits
It is important to know who is yr tenants
->Getting right the 1st place= SUCCESS
Below are 3 strategy shared:
Riches strategy #17
->Professional tenant screening & Orientation
->Setup landlord rule [Firm/STRICTLY]
->Educating tenant to pay on time
Riches strategy #35
->Automate your tenants management
->Follow up wiht rents
->Keeping track with utilities, register online for PBA,TNB and Water Indah
->Tenancy agreement is renewed before due (3 months to negotiate, golden month)
Out of sight,out of mind
How do you treat your investment?
You have to treat yr investment like your BUSINESS
Either DO or DIE mindset
Riches strategy #63
->Be assessible, must be contactable or your backup contact number
->Regular inspection to your property, at least 1 or 2 time a year
->In control of your property
She has a system to track all of the above.
She show her online system for tracking all her properties from purchasing till renting.
Monitor the cashflow, track the income,expenses, renting stuff, tenant stuff.
Send out reminder for late rental, sending out reminder for renewal of tenancy etc
Generate auto receipt to the tenant after rental paid
Keep track on the property inventory photo and conditions
check list for move in and move out, compare it.
Track the actual cash flow and good document for banker later on
Auto inspection & repair tracking system (picture of broken part,then after repair)
After repair, tenant must verified.
track by contractor details, such as by who, cost etc
Must love your contractor also, can ask help from contractor to send picture
Proven and complete templates
Forum and Q&A for discussion
Another speaker is BK Khoo who talk about the Lease Options.
Interesting area for creative investing with no money down.
Shall apply this if can. Really new but required a good lawyer and know about this area.
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