CONTENTS

1. Personal Update - An Important Reflection

• RIP – Ron Jackson (Elise’s Dad)!
• 2009 – Our Most Productive and Profitable Year By Far
• 2009 - Before & After Photos
• The Complete Renovation System
• Setting New Goals!
• Our New Years Eve Treat
• Ticking Off a Life Goal
• Interviewed for Today Tonight
  

2. Funny Fotos

3. What Is In Store for 2010?

4. Member Questions Of The Month

1. PERSONAL UPDATE

An Important Reflection - Dean & Elise Parker

As this is our first newsletter of 2010, it is only appropriate that we share with you our roller coaster year that was 2009. Life has its ups and downs and we experienced both last year. One of the first steps to success in your property investing is to have and know your reason why. This month we have opted to focus on a New Year and a new beginning, by sharing our story of how we have been able to achieve as much last year as in the previous four years. 

RIP – Ron Jackson (Elise’s Dad)!

2009 was our toughest year in an emotional sense with the passing of Elise’s Dad, Ron.  In 2006 Ron was diagnosed with prostate cancer, which unfortunately had already escaped outside the prostate (it typically can be controlled if treated before appearing outside the prostate).  Ron, being a light aircraft pilot, decided he wanted to take us for a trip around Australia in his Cessna 210 and, in August 2008 we spent an unforgettable two weeks seeing the Australian outback from a truly unique perspective.  He was able to fly us to some of the most remote and amazing places Australia has to offer.  In the two weeks of 'Ron’s All Aussie Adventure' we passed through every state except Tasmania.  Ron loved Australia and sharing stories, so there was not a question that you couldn't ask without a comical, yet comprehensive reply.

It was on this trip that we realised exactly how ill Ron was and, during the two weeks, we noticed a huge deterioration in his condition.  As soon as we arrived back, we moved Ron into our home and Elise became his full time carer. 

It was an opportunity that our investing alone enabled us to do, as Elise basically walked away from our business for over twelve months to care for her Dad and his affairs.  She was forced to take on a more managerial role when it came to the finance and admin in our business - so we also learnt how to leverage her time better.  We will always be grateful for being in a financial position to allow this to happen; it was an easy decision to make because of our business and financial situation.  It was an emotional ride for Elise and unfortunately Ron succumbed to the disease in June 2009.  We will both be forever grateful for the time we were able to spend with Ron.  Rocket/Dad you are missed daily and will be in our memories forever!

2009 – Our Most Productive and Profitable Year By Far

It is amazing that through the emotional low of Ron’s passing and also the Global Economic Crisis we were able to have the best investing year of our five year journey.  From 2005 through to 2008 we completed 29 renovations.  In the twelve months of 2009 we matched what we did in the four years prior and renovated a further 29 properties.  We also were able to secure another 11 renovation properties which will finish in the first four months of 2010.  Looking back, we have amazed ourselves and wanted to determine how we did it, and we determined there are two major reasons....

The #1 reason behind our 2009 success....
Over the years we have been disciplined and diligent in documenting every time we make a decision in our business and adding it to a checklist.  We now have a collection of checklists that actually run our business and guide us through every project we do.  I’m certain that late in 2008 we finally perfected the system and in 2009 we basically implemented it – which allowed us to grow our business so quickly.  The best news is that in 2009 we also made our entire system available to others and packaged it as The Complete Renovation System.  You can read more about that below! By having systems and procedures in place, we do not have to be constantly thinking about what is next at each of the different properties and we can also outsource tasks in order to leverage our time.

The #2 reason behind our successful year....
Internally, we have an amazing personal assistant and book-keeper and, externally, we have an awesome team of trades, suppliers and professionals.  We never underestimate the importance of having great people around us and we have now established a fantastic team.  Over the years we have learnt that it is essential to find great people and then to look after them.  If any one of our team was not working out, we would find a replacement that would fit into the culture of our business and enhance it rather than worsen it.  For example, we have tried many plumbers over the years and have now found one that works perfectly in with our business direction.

But it doesn’t stop there, we are developing a significant number of new properties too....
In 2009 we were also able to secure two more development sites, making a total of four development projects in progress.
Site #1 - purchased in 2008, we built two new dwellings to the rear of the existing house.  It has just been completed and the new properties will settle this month.  Because of the time we have spent on marketing and creating an investor marketing package, we sold both new dwellings privately off the plan.
Site #2 - purchased in 2008, we obtained a town planning permit (or Development Approval) for 13 new dwellings in December.  Construction will begin in the next few months. 
Site #3 - purchased in July, contains the house we are currently living in.  We have an application with Council for an additional 10 dwellings to be constructed while retaining the house. 
Site #4 - purchased in December, we can build an additional five dwellings at the rear of an existing 3br house. 
So in all, we should start construction of 28 new town houses in 2010.

In Summary...
To review our entire investing journey, from the period when we started renovating in 2004 till the end of 2009, we have been involved in more than 150 real estate transactions worth over $28 million and are currently managing projects with an end value of over $12 million.  We would never have imagined we could have achieved so much over such a short period of time.

2009 - Before and After Photos....

The Complete Renovation System

In May 2009 we launched The Complete Renovation System.  This is our very own premium education product and, what we believe, the best educational resource in Australia on how to make money from renovation projects.  Our core business is property renovation and development and this is the number one reason why we developed a home study course that people can use to learn our system in their own time.  Educating people is a real passion of ours and it is a secondary business, which is why you won’t see us on a stage speaking week in, week out.  We want people to understand that the vast majority of our income is sourced from property renovation and development – not educating people.  We believe it is important to learn from someone who is actively practising what they teach.  No matter how busy our renovation and development business becomes, our passion for teaching people will continue because it was a series of mentors that got us started in this game in the first place.  In 2004, Elise and I were IT professionals; our success has been a direct result of the fact that people like Dave Bradley, Steve McKnight, Martin Ayles, Brendan Nichols and Kurek Ashley offered quality educational training and mentoring to us.  The Complete Renovation System is now our opportunity to teach people how to change their lives for the better too. 

To find out more about The Complete Renovation System.... click here.

The little pink and white house pictured above, is one of our New Zealand properties.  We originally purchased a few properties over there before we had our renovation business systems in place, last year we took our renovation costing tool, did our due diligence and worked out how to maximise our current investments in New Zealand using the templates in The Complete Renovation System. 

Setting New Goals!

We have got off to a great start in 2010 by purchasing nine properties already in the month of January.  Don’t be disillusioned, there are plenty of opportunities in the market right now and the banks are loosening their belts again!  We have branched out into Queensland because we decided last year we wanted to make a lifestyle change and head to a warmer climate.  We are implementing the same systems so that we can operate projects in both Victoria and Queensland this year.

Our New Years Eve Treat

Seeing in the New Year at the Palazzo Versace Hotel on the Gold Coast was certainly a treat!  We were lavished by quality food, entertainment, company and had a wonderful night.  It was an opportunity to spoil ourselves for the big year we had put in.  As you can imagine the food was exquisite plus Jessica Mauboy, Estelle and DJ Havana Brown all performed live.  Jessica Mauboy was fantastic and spared a moment so we could grab a photo!

Ticking Off a Life Goal

One of our life goals is to see the final of each of the four tennis Grand Slam Finals live and we can now tick off the Australian Open.  Dean and I watched in awe as the amazing Roger Federer swept aside Andy Murray in the final.  Dean is a huge tennis fan and has played since he was five, so we are glad we were able to see the man who has broken so many records win again, in Melbourne.  It was fantastic to see such an amazing talent grace the court. Anyone for a game of tennis?

Interviewed for Today Tonight

For those that didn’t see us, we featured on Today Tonight as part of a story with Steve McKnight (for his new book launch). The crew spent over half a day with us in Ballarat and we showed them as much property as we could in that time. If you missed it, you can watch it below.

2. FUNNY FOTOS

Waterfront Property  – Gerry Giraffe

This month Gerry has been out and about and as always found a couple of interesting properties for you to have a chuckle about.







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3. WHAT IS IN STORE FOR 2010?

Setting Goals For The Year Ahead - Elise Parker

The question above is actually one for you to ask for yourself. New Year's Eve is a day when people make resolutions but today is just as good, so plan them now and leave nothing to chance. For us, we have set goals in all areas of our lives, from investing, relationships, personal goals and of course this educational website. Each piece relates to another and, if you are wondering why you may not have had the results in the past, look at tying all areas of your life together into one big plan for 2010.

For us we continue to set goals quarterly for all areas of our lives, property investing, Property Systems, health, education, etc. We eat well, keep our fitness up and understand the importance of living in a relaxed environment, which is why in 2010 we will make steps to move to sunny Queensland.

So what is it going to be? We hope that 2010 will be your best year yet and encourage you to move onwards and upwards towards achieving all that you dream of. 

4. MEMBER QUESTIONS OF THE MONTH

A special thanks for the many questions we received this month, here is some of our favourites from Massimo of Victoria and Chris of WA. If you have any questions for our next newsletter write to This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Q. The agents are telling me I can't have a due diligence clause.  Is that right, and how do you make your offers?

A. Whenever you make an offer on a property there are going to be two parties with the common goal of coming to an agreement with the real estate agent acting as the middle man. The agent is working for the vendor and so will try to get the cleanest offer possible in this process. Whenever you put a clause on an offer, such as subject to finance, subject to building inspection, etc, you are giving yourself an 'out'.  Real estate agents want 'done deals' and so will try and persuade you to make your offer unconditional. For us we have had agents say, 'In my 30 years in real estate I have never had a due diligence clause; you can't do that'.  We respond with 'With the hundreds of properties we have purchased, we have never not had a due diligence clause'.  The end result is that the offer is presented to the vendor and they usually accept as we are fair and reasonable in our dealings. The key is to stay strong as in negotiation there is no such thing as 'you can't include that!'  Also, empower the real estate agent with your reason so they talk with the vendor in a positive way.

Q. What do you think about using Ebay to buy and sell furniture for your properties?

A. eBay is like anything in our business, it has to be a good use of our time. You can spend hours on there and miss out on bids or sell some old tools and furniture but by the time you work out the hourly rate of taking photos, putting them online, answering questions and then postage, it is not always that great. We purchased some great sets of furniture from Fantastic Furniture a few years back and simply move it from one property to the next. If we develop a block of units we only say we are selling one (to create scarcity) and have the furniture in that unit and simply move it to the next once sold. This has saved us thousands in hiring furniture and is a great use of our time. It will vary from individual to individual and what you are buying or selling, but just make sure you put a reasonable figure on the value of your time.

Q. How will rising interest rates affect the buy, renovate and sell strategy?

A. It shouldn't overly affect your holding costs if you are able to get a longer settlement, early access and sell quickly. It might be an extra $50 to $100 a week but if you only hold the property for less than 10 weeks it is no big deal. For us, we have a deal with the bank that we do not pay set up fees for each property so that is a great advantage. What is important is that you understand your market. For every interest rate rise your purchasers' borrowing capacity will be reduced and their fear increased. If your property is in the slightly more expensive range you may find it harder to sell especially with First Home Buyer grants being further reduced. The key is to know what your end market will be prepared to spend on your property and work backwards from there to see if the deal is profitable.

Keep your questions coming.

Until next time, all the best with your renovations.

Warm Regards

The Property Systems Team