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Are You Sitting On A Goldmine?

Success Through Property Investment

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Table of Contents

Letter from Jason Paetow 3

Success In Investment 5

What Are Your Goals? 7

Accessing Your Goldmine 9

Invest With No Impact To Your Lifestyle 11

Adding Value By Renovating 14

Think Like An Investor 15

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Letter from

Jason Paetow

Dear Reader,

I’m really excited to provide you with this free resource on property investment. I believe that investing in property is a wealth strategy open to everybody; in fact our motto here at AllianceCorp is ‘helping every day Australians create wealth through property investment’. I know that the benefits of greater wealth are immense and life changing, not huge mountain of money, just enough to create options and choices. Enough money to help us to realise our dreams sooner.

I know first-hand the payoff that property investment can have: At the age of 21, I was busy making plans to travel around Europe after working hard and saving. When my father heard about this, he offered me a deal I couldn’t refuse: He would match my savings dollar-for-dollar if I agreed to forego my travels and instead use my money as a deposit for a piece of property.

After some deliberation, and weighing up the pros and cons I chose to take his offer up, and I am proud to say that it really paid off, and I’ve never looked back. My first piece of property was a rundown three-bedroom house in East Bentleigh, which cost $200,000. I decided to renovate my first property in order to add value to it, and a couple of years down the line I had it re-valued by a real estate agent.

It was worth $350,000 after a small renovation investment of $40,000. In only a couple of years I had made a $110,000 profit, just like that! This is when I realised why my father had wanted me to get into the property market— there was money to be made, it wasn’t all that complicated and it was a wise way to invest my hard-earned dollars.

At AllianceCorp we offer a range of education and services that are free for you to try with absolutely no risk or obligation. You can:

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∞ Watch our educational DVD Property For Building Wealth

∞ Attend our FREE 2 hour long property power workshops

∞ Read our library of eBooks

∞ And even come along to a free one hour long 1-2-1 session with our property coaches I urge you to access the range of free material we have available, and then when you’re ready, come and see us for your free appraisal. There is nothing stopping you from getting started in property investment, and I know that anyone can be successful with the right guidance.

Kind Regards,

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around Australia and are a full service company, offering services for everything from project management with your renovation to property management for your rental properties.

What We Know

We believe that the best possible strategy for property investment comes from using all options available and from maximising return on Did you know that more millionaires are made through property investment than through any other investment strategy? This eBook is written with the clear goal of educating you on how you can use property investment to build a balanced property portfolio that will ultimately propel you to a better standard of living.

Success Through

Property Investment

We’re Different

We are a national company that offers a truly diverse range of investment strategies for you. We don’t believe in limiting our clients to only house and land or off the plan properties, so we offer established properties as well, and we even have the option to add further value through a renovation, all of which we can take care of in house. We are able to source properties from

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investment through clever use of equity, tax and investment strategies. We’re going to talk about a strategy that we recommend for every single one of our clients to ensure that anyone can invest successfully with no impact to their lifestyle. It’s not a huge secret, but so many people fail to do this one thing, and they ultimately fail in building a successful investment portfolio and get stuck only owning one or two properties. We don’t want that for you, because we only succeed if you do, so it’s in our best interests to ensure that we create a successful investment portfolio for you.

What You Want

You’re reading this eBook because you’ve made a choice to improve your life through investing. You have the opportunity today to try what we have to offer for no cost, and at no obligation. It’s ultimately free information, and we provide it because we believe that education is golden when it comes to property. You can never stop learning, so please enjoy this free resource on us.

Grab a cup of tea and sit down for just half an hour. Read this eBook and then when you’re done, give us a call and get started today.

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What Are Your

Goals?

Property investment yields greater wealth. Greater wealth means more choices. Investing in property is an effective way to build your wealth and to enjoy a better quality of life. It’s pretty simple, really.

Some common goals for investment that I’ve heard people say over the years include:

∞ Provide for retirement

∞ Financial independence

∞ Passive income

∞ Give the kids greater options for study

∞ Travel more in retirement

∞ Have more options for investment

∞ Pay down the mortgage

∞ Diversify investments

It doesn’t have to be some lofty goal either – you might just really want a brand new car, and that’s fine too! No matter what your goals are financially, we can help. Our strategies are simple, effective and tried and tested. We have been doing this for a long time, and we know what works.

But… Don’t I Need A Huge

Deposit?

Well, yes and no. If you’re getting into property investment for the first time and looking to buy

your very first property then yes, you will need to save a deposit and approach a bank for a loan. To get to this stage you need to be prepared to save aggressively! That might mean reducing your credit card limits or delaying a move to part time or contract work. If you own your own business you might need to pay yourself a salary to make yourself an attractive prospect for banks. If you’re still looking for your first investment property then you probably need to read our eBook Seven Reasons

Why Property Investment Can’t Be Ignored before

you read this one.If you’re ready to start investing - great! Read on!

Will I Need To Sacrifice My

Lifestyle?

Saving up a huge deposit and then putting it to towards a house is fine for your first property. But what about when you want to buy more houses and create and investment portfolio? What then? Do you need to save as hard, and sacrifice as much every time you want to buy another invetsment property? Surely there must be a better way. You know of course, that I’m going to tell you that there is... You might’ve already heard of this strategy, but

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the reality is that you can start with as little as 5% of the property purchase price, plus funds to cover your lawyer and stamp duty. How? Equity. Plus, by accessing your equity (and by using a couple of the strategies I’m going to cover in this eBook) you can comfortably maintain your lifestyle quite nicely, thanks very much! Does it sound too good be to true? It’s not, and there’s no tricks either. Just plain and simple management of tax, equity, credit, and all by using as little of your own money as possible.

So...

If you own your own home and have paid off some (or all) of the mortgage, you are essentially sitting on a gold mine.

Accessing the equity in your home is the easiest way to buy investment properties, and you may already have a property that will allow you to use this technique. Releasing equity from your home in a structured way allows you to keep your savings in the bank. For investors, the usual situation is that most want to combine the benefits of not using their own savings with tax minimisation advantages when buying an investment property.

The strategy for releasing equity in your home is

not necessarily as cut and dry simple as you will see as we go on, and I don’t want you to think that any type of property investment has “Get Rich Quick” options. That’s not what we’re about, so although I’m saying that this strategy is great - please remember that it takes a lot of knowledge, research and making the right decision to be successful. That’s why we provide a full range of coaching and services for you in the life of your relationship with us. You have at your disposal a range of property coaches, advisors, renovations experts and professional services, and all within a fully refundable and obligation free situation.

You have absolutely nothing to lose and everything to gain by giving us a try, and after reading about the strategies I’ve outlined in this eBook you’ll no doubt have some questions The logical next step to reading this eBook would be to attend one of my workshops or to watch my DVD, but for now let’s move on now to showing you HOW you can access the equity in your home.

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You might have heard people talking about equity but have no idea what it is or can mean for you with property investment. It’s hard not to be amazed when you hear about friends or colleagues buying investment properties, especially when they’re on similar salaries and lead similar lifestyles.

There’s no huge secret though, as what many people have done is used the equity that they’ve built up in their homes to give them a kick start. Equity is what makes up the difference between the market value of your home and the balance of your mortgage. If you’ve had your home for a few years and paid off some of the mortgage, that - combined with a rise in value of your house - could mean that you’ve built up some reasonable equity.

How equity can help

Let’s say you want an investment property that’s valued at $400,000. You can add additional purchase costs to this – stuff like legal fees, stamp duty and insurance – and you’ll end up with a cost of $420,000. Let’s also assume that you meet the loan approval requirements and that a lender will

fund 90% of your property’s market value. You’ll have to pay lenders mortgage insurance (LMI) to cover the risk, but the bank will lend you about $378,000 which means you just need to come up with an additional $42,000 for the deposit and the other up front expenses. This is where your equity comes in.

Your home might be valued at $500,000 and the balance of your mortgage is $300,000. The $200,000 difference is your equity. As investors, you can access up to 80% of your home equity without taking out LMI, and in this example it equals $160,000. So basically instead of having to save and scrimp to come up with a cash deposit for the money you need, you can simply draw down on the equity in your home.

There are two different strategies

you can use to access your equity

1. Access the equity using your home. You use the equity in your home to secure a new property using your home and the new prop-erty. You put no money down and the lender combines your home and investment together,

Accessing Your

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and gives you a new loan that combines the purchase price and your costs. In this strategy your home will be directly linked to your new investment property, and your lender also will take the title over on your home to secure the new loan as well as the title over the new property.

2. Separate loans. This strategy allows you to access only as much equity as you need to pay the deposit and the costs of the new property as a top up loan or line of credit. You can even use a separate lender to take another loan to get the remaining funds to complete your purchase. Once again you don’t need to pay forward any money, but the titles of your properties are sep-arated and you have greater flexibility. Another advantage to this method is that you might have enough equity and serviceability to com-plete another purchase sooner! If you have the funds to buy one property then why shouldn’t you? We call this the Dual Purchase Strategy and it’s helped many of our clients to become very successful investors by not compromising on their Opportunity Cost. Don’t know what I’m talking about? Then you had better read our eBook about this exciting topic.

There are positives and negatives with each of these methods. If you use the equity in your home you might find that over time lenders will start dictating conditions that you might not be comfortable with. They might only lend you money based on your new investment loan.

Many people who want to invest will use mortgage insurance so that they can buy more properties, but one of the benefits of using your own home as security is that you don’t have to get LMI, as the lender is tying up all available equity in your property - rather than just the amount required. Really, you want to be able to combine the benefits of using none of your own savings and maximising your tax advantages when buying investment properties. Releasing equity in your home is a way to do this.

Further to this, you need to have an exit strategy in place and to have information on hand about how to navigate tax and charges, and know strategies to minimise your financial commitment and impact to your lifestyle. The best strategy for minimising risk and reducing the impact on your lifestyle is what we share with every single once of our clients: it’s called the Master Facility and it’s the key to your success in property investment.

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Invest With No Impact To Your

Lifestyle:

The Master Facility

The Master Facility is essentially a big buffer consisting of the

money in your home as equity.

When you purchase an investment property you don’t use all of the money available to you, and so you keep it as a backup for paying down funds. You know that even if you weren’t able to work for a period of months that the Master Facility would be there as backup. Sound complicated? It’s not - we’ve put everything into easy to read tables for you to take a look at.

Plus, if you’re still confused after reading this eBook you can come to a workshop or in to the office for a chat about how we can help you.

Study the tables below to see the benefits of the Master Facility. These include:

∞ Not having to link your property investment loans to your home loan

∞ Holding costs or out of pocket costs can be funded by the Master Facility so your lifestyle is not affected

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You can see how by drawing down on your equity for a purchase and using the remaining money as a buffer you can purchase property without any major impact to your lifestyle. Take a look at the next page to see how to apply this strategy to a multi-purchase situation.

You can repeat the Master Facility strategy for multiple

properties - so long as you ensure you have access to enough

funds you’ll be able to keep investing!

Think about the impact that having a buffer would have on your ability to purchase properties. It really is life changing stuff.

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It might look a little complicated but it really isn’t. The Master Facility strategy and other strategiest that we provide to people is part of the plan that we can outline to you in a consultation with one of our Property Coaches. Our consultations are obligation and cost free and provide you with an in-depth overview of how we can help you to build a successful investment portfolio.

If this sounds like something you would like to do - then get

in touch today. There’s nothing stopping you from applying

this strategy to your portfolio and having success.

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Adding Value

By

Renovating

Ok, so we just discussed how using our Master Facility strategy can protect your lifestyle from the associated costs with property investment and we’ve looked at some of the strategies that you might have encountered in your journey as a property investor. But now let’s take a look at how you can raise the maximum equity possible in every house you buy so that you’re in the best possible position to continue investing.

The key is to create perceived and actual value higher than the actual cost of the renovation. There are low-cost renovations such as a general clean up and replacing a few broken items and then there are high-end renovations that involve council approval and major structural change.

The best way to execute this is to buy a property that can be renovated to add more value than the cost of the renovation, with the aim of generating a higher rent and tapping into the new equity you created to fund your next property.

AllianceCorp have a full in-house renovations department and can work with you to quote, plan and execute your value-add renovation in a timely and professional manner.

There is some preparation required for the renovation: you do not get to the point of signing a contract for a property that you are preparing to renovate without already knowing the following:

∞ What needs to be done?

∞ How long it will take?

∞ How much it will cost?

∞ How much of a buffer you will need for the unexpected?

Note that you are wearing your investor’s hat and it is therefore not a time to get emotional or fall in

love with the property. There is plenty of number crunching and milestone planning that needs to be done for even the smallest renovation job and it’s wise to not let your heart rule your head. This is business!

Managing a quick renovation can be a bit of a headache and many people opt to outsource a renovation to a project manager. AllianceCorp have a full renovations team in house who have years of hands-on experience in planning, managing and executing renovations.

The best time to do a value-add renovation is when you’re looking to add more equity to your home or possibly if you want to increase your rental yield. The sheer size of the work needed to be undertaken for a renovation can be overwhelming which is why we can offer to take care of it for you.

After all, why would you put yourself through the stress of dealing with builders, planners and all of the relevant people involved in a renovation when it’s really just an investment that you want to return as much as possible for you? As an investor you need to remember what’s really important - and it’s usually your time.

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Like what you see and want to get started?

How we help

AllianceCorp will simplify the complexities of Property Investment and guide you through the process to ensure you avoid the pitfalls and consistently make safe and sound decisions in building your wealth.

The three-stage process has already started with downloading this e-book. We offer plenty more free tools to help you educate yourself providing both the skills and the confidence to take the next step and invest. AllianceCorp will then help you develop a strategic plan to suit your current situation and long-term goals then stay with you along your journey to success.

1. Learn

If you have read this far you are obviously serious, we encourage you to continue learning as the more you know the better decisions you make. We are passionate about educating everyday Australians on best strategies and process for creating wealth through property Investment and are proud to share our knowledge with you FREE of charge or obligation

We offer FREE education in the form of

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Our library of eBooks, including:

∞ 7 Reasons Why Property Investment Can’t Be Ignored

∞ Top 10 Property Investment Tips

∞ How to Buy House and Land

∞ How to Buy Off the Plan

∞ How to Buy Cash-flow Positive Property

Our DVD Property For Building Wealth or online training videos. Our 2-hour workshops held regularly in major cities around Australia And much more!

Just visit www.alliancecorp.com.au for access to all the above.

PATH TO

BUILDING

YOUR

WEALTH WITH

PROPERTY

INVESTMENT

LEARN

PLAN

DO

Education

Library of eBooks ∞ Property Investment Can’t Be Ignored ∞ Top 10 Property Investment Tips

∞ How to Buy House and Land ∞ How to Buy Off the Plan ∞ How to Buy Cash-flow Positive

DVD Property For Building Wealth

Online training videos 2-hour Workshops across Australia

Start Planning

1:2:1 Consultation Property Wealth Plan ∞ Identify your capacity to invest

∞ Identify the most suitable strategy

∞ Demonstrate with case studies

∞ Present a safe & secure financial model

∞ Show how AC can achieve your goals

Build your portfolio

AllianceCorp will...

∞ Present potential properties ∞ Negotiate with agents and buyers

∞ Consult with relevant parties ∞ Make final arrangements and purchase

∞ Help you plan & execute your reno

∞ Help with property management ∞ Keep you informed and updated

∞ Regular review of your Portfolio ∞ Value properties and release equity

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2. Plan

Even while you’re educating yourself there’s no time to rest! Your opportunity cost is far too great to wait around. We all know it’s more important to be in the market for a period of time rather than to wait and try to time the market so let’s get going…

Weather you have a basic understanding and require hands-on guidance or are an experienced Property Investor; you’ll need a plan.

AllianceCorp will help you develop a secure and sustainable plan that will guide all your future decisions and ensure you consistently travel along the path to wealth creation regardless of the day-to-day changes. Here’s how we help you do this;

Complete a financial snapshot to get a handle on your borrowing power and come in for your obligation free and complimentary 1:2:1 consultation where you’ll meet your appointed Property Investment Coach

Once your coach has acquired the relevant financial information, they can prepare a property strategy tailored to your circumstances. Soon after your first consultation, your property coach will then meet with you to run servicing scenarios to help;

∞ Identify your financial capacity to invest

∞ Identify the most suitable property strategy to achieve your financial goals

∞ Demonstrate examples and case studies on the effectiveness of the selected strategy

∞ Present a financial model identifying how it is possible to invest safely and securely

∞ Demonstrate how AllianceCorp can deliver your desired outcomes regarding the establishment of a successful property portfolio

3. Do!

Here we go! This is where things start to get really exciting. You’ll have some momentum under you from your first meeting with your Property Coach, you’ll have seen some property and your coach will be negotiating hard for the best price for you if you’re buying an established property, or you’ll be in the final stages of discussion about your house and land or off the plan property.

Finance

AllianceCorp will either recommend or work with your existing mortgage broker or lender to ensure you have pre-approvals in place to purchase property.

Implement Your Tailored Property Strategy

AllianceCorp end-to-end solutions ensure that all your needs are handled by one partner and handled according to your long-term plan for building wealth. depending on your available time and skills, you may choose to manage some or all of the process yourself, however should you require assistance we will be right beside you along the way.

Property Experts provide the following services necessary to ensure you are successful in achieving your financial goals.

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We will:

∞ Present potential properties

∞ Negotiate with agents and buyers

∞ Consult with relevant parties to ensure the sale of properties will be smooth and hassle free

∞ Make final arrangements and purchase

∞ Help you plan and execute your renovation if required

∞ Help you with ongoing property management if required

∞ Keep you informed and updated throughout the life of the process and afterwards

Portfolio Review

Whew! You’re a property investor - but don’t stop now. Keep up the momentum with a renovation, or another investment. For this you need to make sure you have your properties valued as and when required to release equity and so that you can keep borrowing.

We stay with you all the way

Your success is our success so you can safely think of us as your partner throughout the journey. We offer a regular portfolio review to ensure that you maximise your success. This is where your property coach will take a thorough look at your portfolio performance and discuss your options with you.

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Think Like

An Investor

There’s one more piece in the property investing puzzle that we haven’t touched on yet: You. I ask you this: Why is it that many Australians do not make it as investors? And they don’t, believe me - many people buy one or two houses and get stuck - bogged down with a mortgage and too afraid to continue on because they’re afraid of debt. The World Bank once considered Australia to be the wealthiest nation on the planet. Unfortunately, now the standard of living for many Australians is dropping rapidly, despite our politicians trying to convince us otherwise. With all the wealth that still exists, why is it that so few Australians get to share in it? What is going on that limits us to sharing in only a fraction of this country’s wealth, and what can we do about it?

A lack of knowledge, strategy and guidance is usually the

problem.

You have access to a strong support network, and people who have been there before to advise you so why should you go it alone? Our resources cover practically everything you can think of when it comes to property, our eBooks can be read at your leisure and we’re always available for a consultation or meeting - just call the office or send us an email.

We would love to help you.

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you. You’ve already come this far in reading this eBook so DON’T STOP NOW. Get in touch, don’t delay - it’s at no obligation to you, and at no cost as well. If you don’t like what we show you, that’s fine too. You’ve learnt something, and you can move on. But if you like what you see, you can sign up with us and prepare to have your investment mindset and strategy completely changed.

If you want to become a

wealth creator,

you are going to have to learn to

think

differently

to the majority of people and you are going to have to learn to move outside your comfort zone. We can help you to make this process simple and smooth, and will be with you every step of the way on your wealth creation journey.

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