Here are the answers to some of the most common questions that I get asked about my ‘Property Mentoring Program’ – 24 Month Mentoring Program.
But before you get stuck into them, people sometimes ask me, ‘Helen, you’re financially free…why do you do this work?’
Well, this email that I’ve just received this morning (Wednesday 8 August, 2012) explains why.
You can’t beat the feeling of getting an email like this:
1. Why is it so important that I invest in your program?
The number one reason why it’s important you do this program is that it will help you build a passive income from property that replaces your working income.
This means you can enjoy a life with more freedom and choices.
The other big reason is that it will help you to avoid making the biggest mistakes that so many property investors make.
You see there are literally dozens of mistakes you can make in property investing…and each one can cost you big time.
For example, some of the common mistakes you could make include:
- Setting up the wrong buying structures, so you end up paying tens of thousands of dollars more than you need to in Capital Gains Tax or other taxes;
- Burning money by not claiming the tax deductions you are legally entitled to as a property investor;
- Blowing your money on the wrong sort of property that doesn’t move you towards your financial goals because you don’t have a clear, well thought out property strategy for achieving financial independence.
In other words, you’re buying a property on an ad-hoc basis much like you would buy a car or a fridge.
To achieve financial independence through property, each investment you make needs to support your overall strategy, otherwise your portfolio could fall apart because it is imbalanced. Only investing in capital growth properties so that you hit the ‘financial brick-wall’, will mean you have to ‘live on baked beans on your way to wealth’, which isn’t much fun.
It’s so important to know how to find high yield positive cashflow properties as well as capital growth properties because they will allow you to keep on borrowing from the banks to expand your portfolio -and also replace your income so you can retire sooner.
In our program, we show you how to avoid these mistakes – and many others.
And that’s why our clients tell us that our program has not only allowed them to build wealth much quicker – but it has also paid for itself many times over by allowing them to avoid big and costly mistakes.
Then of course there’s the issue of ‘speed.’
With the help of my ‘All Star Team’ and me, you can realise your goal of financial independence through property investing much sooner.
For example, one investor has bought a staggering 12 high yielding properties in 1 year in my program.
Now I am not saying you’re going to do that – but it does indicate how quickly you can accomplish your goals with the right team supporting you.
2. When do I start making payments for your program?
You make your first payment once you have been accepted for my program.
3. I’m interested in your program, but I was wondering about the success rate of people who have completed your program?
Obviously your level of success depends on your willingness and commitment to put the techniques and strategies into practice with the help of your coach and support from me.
However if you take action, then we feel sure you will take strides towards financial freedom in the program. As you can see from the testimonials we provide, many of our students have played full out and have built million dollar portfolios- while others have chosen a more modest path. We will support you in whatever path you wish to take.
4. What if too many people follow your strategies? Does that affect my chances of success?
Absolutely not. There are countless property investment opportunities in Australia and an ever increasing supply of renters due to population growth and other economic factors.
5. The thought of managing tenants and rental properties scares me. Is there an easy way of dealing with this?
Absolutely! Find yourself a good property manager, tell them what you expect of them and keep a close eye on what they do.
Be willing to change your property manager if they do not perform to your expectations. To make it easy for you, we will even give you the questions to ask your property manager to help make sure you pick a good one. Once you have a good property manager in place, your main tasks will be occasionally approving maintenance costs and watching the money come in month after month.
6. I’ve heard horror stories of tenants destroying rental properties. What is your experience with this?
Yes, I’ve heard these horror stories too but I can honestly say that it’s never happened to me (although like most investors I have had issues with tenants in my early days of investing).
Nowadays, I know that the key to stress free property management is good tenant selection, firm property management and insurance. It’s important that you select your property manager carefully. This will mean that you will have to interview your Property Manager personally – as I have mentioned, I will give you the questions that you need to ask. The correct selection could mean the difference between a high and a low vacancy rate, the level of rent that you receive and the quality of tenant found.
It’s important not to select your property manager based solely on their fee; their skill is worth paying for.
A lot of suburban Real Estate Agents employ young inexperienced people to manage up to two hundred properties under their management. This physically means that they won’t be able to manage your property properly; they simply won’t have the time. We actually recommend one particular national property management company that can make sure you not only maximise your rental income, but also minimise vacancies and have a stress free landlord experience.
7. I’ve already invested in property before. Is there anything I can learn from your program?
Absolutely! Even though this program contains all the necessary step-by-step information for beginners to get started, it also contains many advanced strategies and techniques to help you. This includes how to:
- Maximise your capital growth through smart buying strategies and due diligence
- Find high performance positive cashflow properties – with less risk
- Buy properties continuously – without hitting the financial brick wall
- ‘Sleep easy’ with solid Asset Protection in place
- Maximise the returns on each property
- Leverage off existing properties to maximise your return
- Minimise the impact of land tax – diversify your portfolio
- Manage your risks – create joint ventures so you can get into more deals with less money down and potentially less risk exposure
The reality is if you don’t have a 5-figure monthly net income from your multi-million dollar portfolio that funds your lifestyle so you never need to work again – then there are definitely tips and strategies you can learn from me to get you there because that is what I’ve achieved.
8. I’ve been told that cashflow properties don’t enjoy capital growth. Is this true?
NO! This is probably the second biggest misconception that many property investors buy into and it simply isn’t true!
We have purchased many cashflow properties with yields of 10-12% over the past few years and have also enjoyed capital growth on these properties in excess of 30%.
9. I’ve been told it’s no good to buy cashflow positive properties because you miss out on all of the tax deductions. Is that true?
While it’s important to ethically and legally minimise your tax, you should never buy a property simply based on tax deductions. Select a property that will help you become financially secure – and achieve financial independence.
One important point to make is that your tax deductions also depend on the age of your property because your depreciation deductions WILL be lower when you buy an older property. Nevertheless, you may be surprised at how much depreciation can still be claimed on a new property.
In addition to depreciation, there are many other tax deductions available to you as a property investor, irrespective of whether you have bought new properties or older ones. You need to discuss these possibilities with your tax advisor or accountant.
10. I take part in chat rooms and have read lots about investing. Do I really need to invest in your program?
A number of quite experienced investors have commented that our mentoring techniques have provided a whole new perspective to property investing.
Even though they had read and studied widely, they still learnt something new from this program.
You may be a successful property investor already and could be overlooking opportunities which will be revealed to you in this program (or you could be making mistakes that could eventually come back to bite you).
I think it’s also important to mention that you should always be getting advice from people who have achieved the results you want to achieve – so make sure you verify the results of whomever you get advice from.
11. I know nothing about property investing at all. Is your program going to be too advanced for me?
Not at all. Our “Step-by-Step” System is easy to follow and understand. You will also learn basic and advanced ideas and strategies to help you build and protect a large property portfolio to replace your income if that’s what you want to do.
12. I don’t have a lot of money to invest. Does it still make sense for me to invest in your program?
Regardless of how much money you have to invest, you still need to acquire the necessary knowledge before you can invest in property successfully. Investing without knowledge is basically gambling – and we all know the outcome of gambling!
Once you have acquired the appropriate knowledge, you may be able to find joint venture equity or borrowing partners who have the money or borrowing capacity but not the time or the skills to seek out lucrative property investment deals. In fact our program is designed to bring you into contact with other like-minded property investors who may be looking for joint venture partners as well.
After all, isn’t it better to have half of something rather than all of nothing?
And the best part is we show you how to do this safely. If you don’t firstly invest in property education before buying investment properties you will learn…but you will learn from your mistakes, which is so very costly.
Since you need the knowledge first, it makes absolute sense to invest in your education now.
13. Do you offer ongoing support?
Definitely. We have an ‘All-Star’ Real Wealth Property Investor Support Team to be with you every step of the way throughout your program. Apart from my husband Ed and me, this team is also comprised of experienced and successful property investors who will help you through all the facets of your investing journey.
14. Are cashflow properties hard to find?
Not at all. This is probably one of the biggest misconceptions in the market place and one which costs many potential investors big money in lost opportunities. Positive cashflow properties are NOT hard to find if you know where to look and how to find them. The trick is to know the right questions to ask to make sure you’re buying in a safe secure location and that’s what we’ll show you how to do.
We own several positive cashflow residential properties which are returning yields of 10-12%.
15. Is this a “get rich quick scheme”?
Absolutely not. This is a step-by-step program showing you how to invest in 10 properties in 10 years™ or less to replace your income.
As you can see, it’s not a “get rich quick scheme” but it’s certainly an achievable goal for most people. The best part is you get a ton of support and handholding on the way so that you feel encouraged and motivated to take action. That’s why our success rates are so high.
16. Will you really give me my money back if I decide that your program isn’t for me?
Yes, we have a Money Back Satisfaction Guarantee.
If upon completion of the 24 month Property Mentoring Program, your property investing knowledge and skill has not improved, then RWA will refund to you in full, all monies that you have paid to RWA for your enrolment in the program, less an administration fee of $950.
17. A friend of mine lost $200,000 investing in property – isn’t property investing risky?
It is only if you don’t know what you’re doing. I wouldn’t mind betting that your friend lost money purely because he or she didn’t invest in getting themselves a property investing education. While of course there are risks in any investment strategy, we believe that investing in residential property is one of the safest options because of the high demand for rental properties due to Australia’s rapid population growth and other driving economic factors.
The key thing is to do ‘extreme due diligence’ before buying any property, and that’s what we teach you how to do.
18. I’ve done other property investing seminars before – why is yours any different?
Below are some of the distinguishing factors that our students usually note about my program that sets us apart from other programs/seminars:
- We help you achieve a passive property income to replace your current working income. We show you how to find the properties that will give you the yields you need to achieve real financial freedom.
- You get personal access to my team and me. We’re always only a phone call away. You’re never alone in our program.
- We offer 100% unbiased education and don’t try and sell you properties. We don’t sell property to our students and never will.
19. Why is negative gearing so bad?
Negative gearing isn’t bad in and of itself- in fact for some, it can be a good strategy. But when it’s your only investment strategy, you’re soon going to run out of money.
After all, how long can you afford to shell out $1200 – or more – a month on two or three investment properties?
With our program, you will learn how to balance your portfolio with both negatively geared high capital growth properties and cashflow positive properties that still enjoy capital growth.
20. I’d love to own ten investment properties or more, but I can’t afford the repayments. How can you help me?
Obviously you’re only thinking of negative gearing. If you want to own 10 or more investment properties you’re going to need a different strategy.
Thankfully, we can show you exactly what you need to do and yes, there is a way to buy 10 or more properties without having to shell out $15,000 a month in extra mortgage repayments.
In fact, as in the previous answer, the solution is in buying cashflow properties to balance out your portfolio to a positive cashflow or at least cashflow neutral position. This way, you can actually have your property portfolio fund you – not the other way around!
21. I’ve managed to get six investment properties on my own, but the banks have knocked me back on getting any more finance. Can you help me?
There’s one of two problems going on here:
1. You’re negatively geared to the max. If this is the case, you need to buy some cashflow positive properties to balance out your portfolio.
2. Believe it or not, you may have been knocked back because your mortgage broker doesn’t know enough about serious property investing.
The truth is most mortgage brokers will never come across a serious investor in their lives. Relax, this happened to us and we will connect you with a mortgage broker that specialises in working with property investors in our program.
22. I already own one investment property and I have just found out that the loan is spread between our family home and the investment property. I’m worried that if things go wrong I’ll not only lose my investment property but our family home as well. Is there anything I can do?
This is a sneaky little trick pulled by the banks and yes, it is designed to snare both – or if there’s more than two properties involved ALL – your properties if things go wrong.
It’s known as cross collateralisation and yes, you can overcome it and keep your family home and other investment properties safe. We can show you how as we’ve experienced this ourselves.
23. Can I invest with others as a group or in a Joint Venture Partnership?
Yes. This can be a great way to get started, especially if you don’t have a lot of money or equity. I have done many Joint venture deals and we show our students how to set these up in a safe and easy way.
24. What type of property makes the best investment?
Not one type of property makes the best investment. The best path for you to take is to develop your own investment strategy based on your personal goals and objectives. Once you have your strategy, then this will make your life easier knowing that your next property purchase is the right one for you.
25. My situation is different – can you advise me on a tailored investment strategy just to suit my situation?
That is exactly what we do- we show you how to create an investment strategy that fits your personal circumstances and helps you to meet your goals.
Everyone is different and is starting off from a different position with different goals in mind. You might not want to own 10 or more properties.
You might only want to own four properties and that’s enough. Someone else might want to own twenty five or more properties. Obviously the strategies involved will be different in each case.
The first thing you do in our program is to create your own Property Investing Strategy. Then my team and I will review it and make sure it’s going to get you to where you want to go – i.e. financial independence – in the shortest time possible and in the safest possible way.
It’s this personalised approach that ensures our clients achieve their financial freedom so quickly, because they’ve got clear direction.
26. Is it true that investing gets easier as you build up momentum?
Yes. Taking that first step and buying your first investment property and your first year of investing is generally the most difficult part. Once you get started, you’ll find it gets easier and easier- especially with our help and support.
27. I’ve been to a lot of these property investing programs and hopefully your one is not the same. All I seem to get are notes, information and lectures. Can you please confirm that you will be available and will be mentoring me?
I too have been to what I call ‘Suntan’ seminars – they feel good, but then all you’re left with after a couple of weeks are some notes and a few faint memories.
That’s certainly not what my program is about. My team and I are available to give you the personal ongoing support you need to be a successful property investor.
This includes personally evaluating any deal you do.
You can email the office to get the answers to your burning real estate questions at any time. If you have a question and you want to speak to a real live person – you can do that too. Will it always be me that you speak to? Not always, but certainly often.
It’s important for you to know that my team are highly experienced investors in their own right.
Take my husband Ed. He actively built our investment portfolio with me – and now he manages our multi-million dollar property portfolio day to day.
Take Carolyn and Nick Farrow – two of our property coaches. Far from being wet around the ears newbies – they now have a 13 property strong portfolio.
And Marjo the client services manager, is a property investor herself, and knows exactly how to help you get the support you need – no matter what issue you’re dealing with. She will act as your personal ‘Concierge’ pointing you in the right direction.
In short, you will have an All Star Team supporting you throughout the whole program. When you call – we’ll be there. When you email – we’ll be there. And when we’re not – we’ll get back to you promptly.
And will you get personal attention from me as well? The answer is yes. However, if one of my team can answer the question just as well as I can, then they will be your first point of call.
28. How much money/equity do I need to get the most out of your program?
I prefer you had at least enough money for one property purchase in the program, because that will ensure you can apply what you learn in the program right away.
And with the growth and cashflow from your first property you can launch into your next one and the next one after that.
29. Do you actually help me research and source the actual property I am after?
Our philosophy is ‘give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime’.
We teach you how to fish for golden positive cashflow and capital growth properties…so you can find the very best properties to suit your goals in the next 24 months and for the rest of your life.
Phew, that’s a lot of questions. Any other questions you can call the office on 1300 85 88 96