Preview PROPERTY MILLIONAIRE TRAINING 《百万富翁的实战训练班》

This afternoon, i went to attend the Preview PROPERTY MILLIONAIRE TRAINING 《百万富翁的实战训练班》. The address is at Jalan Baru, 13600 Perai, Pulau Pinang.

Total  attendees is 8 persons, 1 organiser and with speaker.

The last minute venue change from Penang Island to Mainland which benefit me.
I do not need to rush to island after sending my son to school.

Ok,let's focus on the seminar. In fact I would not called i the seminar this time. 
It is a round table discussion  with some case study.
This is quit new as normally the preview is just a presentation. 

The speaker for today is Jeffery Lim Tau Hoong (林道宏先生). 
If you want to know more about him, you may google it.
He is a great person. Frankly, this is first time I heard about him and listen to him.
I only do a google search on him when I am back home.

Below diagram is the brief summary of the first 30 mins of his sharing.

Most of us has a job, the bank like this group of people. 
Just because the bank know that they are able to repay the loan every month with steady income.
Another group of people is the housewife or sometime we called it home maker. 
This group of people need to generate their own income such as establish online business, giving tuition, freelance services etc.

However, referring to the above diagram, either home maker or salaried personnel, each of us will hit the maximum loan cability.
For example, if you are earning $3000 per month, your loan capability is $700,000. 
In another words, you can buy 2 properties worth $350,000 a piece.

How do we increase the loan capacity? 

A lot of us have reach the loan capacity and cannot proceed further, Jeffery shared with us some ideas on how to increase it.
So below are the ideas on how to add variable to the fix income.

Idea #1
You can work part time after your office hour to add additional income to your fix income. 
Example are giving tuition, selling at Pasar Malam etc.
There are tonnes of ideas in this categories and you can google it easily to give some broad idea on it.

Idea #2
The next idea will required some business idea. You required to create an enterprise.  
In another words, setup a business company with starting capital of $5000. 
This is a very affordable business to start off such as providing cleaning services, giving group tuition etc.
Each month, with the revenue generated from you business, you have to pay yourself salaried. Say $3000 a month.
A lot of entrepreneur did not pay themself salaried. Thinking that is the business income but forget to pay their own. 

A salary of $3000 from your business is a great variable income in addition to your fix income. 
Now you have additional $700,000 loan capability by working slightly harder.

Bonus tips: I was told that a couples can have maximum of 8 properties even at the current cooling measured.
Interested to know, you may write to me or I will find time to write in details.


Case Study:
After the above sharing, we are required to work on few case study to compare which method is most profitable.
Each of the method is applicable but is all depend on each individual how can it be done.


The case study is taken from his own current purchased into Chief Executive Officer SOHO units. In total, he bought 4 units.
He foresee the price appreciation will happen in near term due to the surrounding already increased to $400/sqft. 
To increased till $500 psqft is within grasp.
He benchmark with Suntec and the service apartment beside it going to be ready and already selling at $500 psqft


Unit #1 : Buy for Own used

Purchase Price=	$295,000.00
Mark Up Price=	$350,000.00
Loan Margin=	85%
Total Loan Amount=	$297,500.00
Excess Loan Amount	$2,500.00
Agent Fees+Legal etc	$14,000.00
Monthly Mortgage	$1,800.00
Rental	$2,200.00
Positive cash flow	$400.00

Unit #2 : Buy for rental purpose


Initially the seller is asking for $330 000 for 751 sqft unit. After several negotiation, the agreed transaction price is at $285000. He bought this unit is for rental purpose. He also able to negotiate with the seller that to rent to him with $1.00, just because he paid the 15% ($42,750) on the first day of his booking.

So he quickly put up an advertisement and within days rent out for $1500 already. Expected the whole transaction going to take 6 months based on the first unit experience.
As such, he pocket in $9000 for the 6 months.

Purchase Price=	$285,000.00
Loan Margin=	85%
Total Loan Amount=	$242,250.00
Agent Fees+Legal etc	$14,000.00
Monthly Mortgage	$1,500.00
Rental	$1,500.00
Positive cash flow	$0.00

With the above 2 units case study, is it better mark up or not if we want to flip the unit? 
Which strategy is better, to mark up or not to mark up and to sell within a year?

Take note of the current Real Property Gain tax as below table:

Let us do some comparison with below property data:
Buy in Jan and Sell in October.

Which would you prefer?

Next he is sharing on the new launch comparison between Project in island Vs mainland

The above comparison has some different in term of the down payment due to different type of package given by the developer. As such, in order to do this comparison, it is very much dependent on the marketing packages provided.


Story #1:
He got one administrator with salaried less than $3000, join their Penang Investor Assciation (PIA) club 4 years ago, now owned 6 units with at least worth more than 1 million. He convert it to home stay and with monthly income range $6000 to $8000 per month.


Story #2:
At level 2 of investing which buying more to the commercial unit such as shoplot. He network people Mag made a booking of $10000 of Summerton shoplot and sell the unit off at $110 000.Selling price at that time is $1.6M. Mag profit in $100K in 3 days. However, the person who bought over and rent it at $11 000 now with $4000 positive income. The unit is worth $2.3M ~ $2.6M and no intention to sell at the moment yet.


All the shoplot that at Summerton, Golden Triangle and Vintage with good locations, all are bought by their team. They are able to control the rental market and selling market since they owned most of the shoplot there.

Below are the Golden triangle shoplot price for your perusal. 

At his current level (Level 3) way of investing, they are buying land and developed it to condo and hotel.