Finally! Finally! Finally! Finally! There is a way through the maze of There is a way through the maze of There is a way through the maze of There is a way through the maze of

misinformation, too much information, misinformation, too much information, misinformation, too much information, misinformation, too much information,

not enough information, useless information, not enough information, useless information, not enough information, useless information, not enough information, useless information,

indecision, clutter, good advice, bad advice,indecision, clutter, good advice, bad advice,indecision, clutter, good advice, bad advice,indecision, clutter, good advice, bad advice,

a coin toss and fear ...............a coin toss and fear ...............a coin toss and fear ...............a coin toss and fear ...............

If you are not where you want to be or you

have no idea where you want to be

Congratulations!Congratulations!Congratulations!Congratulations!

You have come to the right place.

A way through the clutter, knowing what you do A way through the clutter, knowing what you do A way through the clutter, knowing what you do A way through the clutter, knowing what you do

want and more importantly, what you don’t want want and more importantly, what you don’t want want and more importantly, what you don’t want want and more importantly, what you don’t want

and a clear and solid path to thand a clear and solid path to thand a clear and solid path to thand a clear and solid path to the prosperity and e prosperity and e prosperity and e prosperity and

wealth you desire through wealth you desire through wealth you desire through wealth you desire through

real estate investment.real estate investment.real estate investment.real estate investment.

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What people are saying about What people are saying about What people are saying about What people are saying about

Naked Truth Real Estate.....Naked Truth Real Estate.....Naked Truth Real Estate.....Naked Truth Real Estate.....

Testimonials

“My husband and I were struggling to decide how to proceed with a building project, and had

been in limbo for almost a year. Fran showed us several different things that we could do, and

clarified all our questions and concerns. She also talked us through the financial aspects and

really helped to clear the clutter. We are now proceeding with our building project with clear

direction. Fran’s assistance has been invaluable, and has given us the confidence to think bigger

than we ever dared.” Angela & Cameron, Byron Bay, NSW.

I met Fran in early May 2009, through a mutual contact. Due to our geographical locations, our

correspondence about property was via emails – what we had done, and desired for the future.

Over a period of time – May to July – I found Fran to be knowledgeable, encouraging and sharing

of ideas and strategies on all levels of property development. In mid July 2009, my husband & I

travelled north to Ballina to meet Fran in person for lunch. Our conversations, not just on

property, but on life in general, were so aligned that lunch turned into dinner.

Fran has been a source of knowledge & ideas, encouraging me forward to remembering /

believing, ‘Yes, I can achieve my dreams and goals the same as anyone else can.’

I thank you, Fran, and look forward to working more closely with you in the near future.

Catherine McNally, Central Coast, NSW

We have found Fran to be very friendly and willing to share the knowledge that she has. Fran has a positive, professional attitude and is a real go getter!!! We are grateful for Fran's inspiration and knowledge towards our business goals and would be happy to continue working with her in the near future. Lynda & David Croker, NSW

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3

7 ways to create wealth through real estate

Letter to Property Investor .................................................................................................................... 4

Introduction ................................................................................................................................................ 5

Mindset ......................................................................................................................................................... 6

Buy & Hold .................................................................................................................................................. 9

Buy & flip ....................................................................................................................................................12

Renovations ...............................................................................................................................................14

Property lease options ............................................................................................................................16

Vendor financing (Wraps)......................................................................................................................17

Property development ............................................................................................................................19

Combo’s ......................................................................................................................................................20

Getting started..........................................................................................................................................21

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4

Dear Property Investor Welcome to Naked Truth Real Estate! Everyone knows that investing in bricks and mortar is the No1 choice

for most people when it comes to investing.

The problem is though that there is so much information out there from the media, our friends and family,

not to mention your local cabbie that it can be overwhelming to even get started! Even if you have started

you’re probably sacrificing some aspect of your lifestyle now to pay for it so that some time in the future you

can reap the rewards. Right? So if there was a way whereby you could make money from your real estate

investments from day 1 so that you could have a much better lifestyle now and an even better future, would

that be of interest to you? If you could purchase property at wholesale prices or without using any of your

own money, would that be something that you would like to learn a bit about?

Then, it's my pleasure to be able to share with you all of the truths that I've learnt in investing in real estate

over the last 25 years because if I had known then what I know now, I could have been living the life of my

dreams a whole lot sooner! If you are keen to avoid the pitfalls and common mistakes of real estate

investment, you are going to love this site. If you want to accelerate your wealth creation and start realising

your dreams much more quickly than you may have thought possible, you are definitely in the right place!

Contained in this website are numerous examples of both passive and active investment strategies. I look

forward to sharing with you many examples of how you too can invest in property and create wealth through

real estate and for those of you who would like some extra help, I will be happy to be your personal guide to

show you exactly how to create the lifestyle of your dreams.

For many of you, this may be your first foray into real estate investment and I hope that you will feel

comfortable in the resources that you find within this site. Naked Truth Real Estate is a tool that you can use

in your search for information, practical guidance and like minded investors. For others, who may be very well

experienced in real estate I want to show you ways to expand your knowledge of real estate investment using

more advanced strategies. I’m sure that you will find great value within these pages.

There may be a number of strategies here that you are unfamiliar with and perhaps you may not even have

heard of them before. I can assure you that there are many people throughout Australia and the world using

these strategies every single day to create their wealth. Some areas of property investment can leave you

feeling a little daunted. It is my intention to stretch your mind with the realms of possibilities out there just

waiting for you to step in to. Over the years, I have invested massively in my own education around wealth

creation using real estate and I am now reaping the rewards of that by moving into real estate endeavours

that I didn’t even know existed a few years ago. There has never been a better time to take a hold of these

strategies and milk them for yourself! It is my goal through Naked Truth Real Estate to share with you these

areas that are now possible for you if you are ready to invest in educating yourself and taking action!

To your investment success,

Fran Blake

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Introduction

There are many, many ways to invest in real estate and many, many ways to

purchase property with little or none of your own money at all! In doing this you

will create a property portfolio way above anything that you perhaps have yet

dreamed or imagined and certainly a great deal more quickly!

Through my own investment journey I have learnt many of the common pitfalls

from 1st hand experience and can help you avoid them which by doing so you

will realise your goals much sooner. As for mistakes, you will definitely make

some of these, (hopefully lots) and then you will learn how valuable they are to

your learning experience. Please don't be afraid to make mistakes, they will

assist you greatly in honing your skills and knowing exactly how to do something

right.

So thank for you taking the time to visit, I will be adding content to the

resources often. Feel free to have a good look around, let me know what has

been of interest or benefit to you, what you would like to see that isn’t yet

featured here and let me know what you're up to too. I want to assist you to

achieve your goals through the vehicle that is Naked Truth Real Estate – real

facts, real fun, real estate.

At the end of each chapter, you will find self assessment tasks. I encourage you

to answer the questions and complete the tasks before moving on to the next

chapter. These will allow you to establish some concrete goals to work towards

and may point out areas where fear, indecision or lack of knowledge has been

hindering your progress. A problem identified is a problem half solved, so they

say. You can’t change what you are not aware of and the self assessment tasks

could show you an area that you need to work on.

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Mindset

How I went from unemployed single mum, to multi-million dollar property investor

In 1998, I was divorced with two children. I had no job, no qualifications, no

super. So how did I turn this around to become a successful property investor? I had to first start with my thinking.

Your own self image and beliefs control your mindset, your mindset controls your behaviours and your behaviours exact your results. The results won’t change until your beliefs do. You can be a passive investor or an active investor. The choice and rewards are up to you. To be successful you must take responsibility for your own actions for

whenever we make excuses, lay blame or live in denial, we deny ourselves true success.

As a passive investor you can make some money from real estate but as an active investor you have the opportunity to create wealth beyond your wildest dreams! Which path will you choose? Remember, your mindset controls your behaviour. Every successful person has formed the habit of doing things that failures don’t like to do. Successful people always find a way, usually where

there is no way and never give up until they’ve found the way. You may have heard it said that the only failure is the failure to try. Sometimes, it’s the failure to keep trying.

Every successful person has had a mentor in their lives, often many of them. It may have been a parent, a teacher, a friend or even a stranger who encouraged and taught them skills beyond what they may have believed possible. A few years ago, I was told that you can learn more in an hour face to face with

a mentor than by reading a hundred books. I have found this to be so. Nothing will support your positive mindset like having a team around you that supports

your purposes. When I was younger, I used to think that if I was going to be successful that I would have to be strong and capable and do it all myself. Thankfully, I now realise that I can’t do it all, nor do I want to, as sharing the success is much more fun and makes the whole job so much easier. The power of the team is also incredibly more productive than a solo act ever could be and

it will effect such a positive change to your mindset that you will be amazed at the opportunities that present themselves to you.

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It’s exciting, challenging and to me it’s what real living is all about. I hope that

you enjoy the learning experience found within these pages and if I can be of assistance to you, it would be my privilege to be a part of your team on your journey towards success.

Self assessment tasks:

1. Do you see your current mindset as an asset or a hindrance right

now?

2. Write down one goal that you would like to achieve this year.

3. Write down one goal you would like to achieve within your lifetime.

4. If money was not an issue, what would you be doing with your life

right now?

Introducing my secret to how I went from

unemployed single mum to multi-million dollar property investor

Earlier I revealed how I had to first start with my thinking. My mindset has been the foundation to all my property success… and failures (or, as I like to call them, “lessons”).

Did you know that the only thing between you and your dreams is the

stuff between your ears?

By that, I mean, it’s what’s going on in your mind that stops you from having

everything you want. Do you want to become a property investor? Stock market guru? Entrepreneur? Do you have dreams you want to make reality? Then, you must have the right mindset. It’s fundamental to achieving anything you want in

life.

That’s why, before I get into the strategies of wealth creation through real estate, I had to start with a chapter on mindset.

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If you’d like to know how I did it, I’m more than happy to share that

with you

I often meet people who ask me, “Fran, how did you do it?” I always tell them that I’ve worked very hard on myself. I’ve had to be honest, face my fears and

overcome limiting beliefs. Due to the demand of people wanting to know more, I’ve decided to share these lessons. I’ve learnt from countless books I’ve read, seminars I’ve attended, and mentors I’ve had the privilege to work with. So I thought the best way I could explain all these lessons is to offer a program.

If you could be mentored in this area weekly, step-by-step, would that benefit you?

Every long journey begins with the first step

To get you started on your investment journey, I’d like to offer you an invitation to the Quick Start Millionaire Mindset Makeover.

This is a program I’m running over 8 weeks and I have a special offer just for you! You can get all this and more for a special price as a reward for taking action.

Here’s what you’ll receive:

• Week 1 – Introducing the millionaire mindset with a pre-recorded tele-seminar facilitated by the one-and-only, me! Included on this audio file is a simple visualisation technique that will allow your mind to expand

powerfully to see the many possibilities available to you.

• Weeks 1 through to 8 – I’ll help you to keep your momentum going with 8

weekly emails. These will keep you on track, and build your mindset. You will also receive all of the email content on audio. This way you can take advantage of listening to this valuable content on your MP3 player whenever or wherever you like.

• Week 8 – Final de-brief with another pre-recorded seminar.

I hope I get the chance to show you how life can be as amazing as you want it to

be.

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Buy & Hold

Would you like to have a magic bank account?

If you could put money into a bank account, and have it double in about 10 years time, tax-free, would that be of interest to you? This is no get-rich-quick strategy, but it is one of Australia’s best loved and most popular strategies.

This strategy is a passive strategy and will not add to your bottom line over night but over ten years, you can expect your investment to double. The good news is that if you pick the right property in the right location you can be assured of strong capital growth. The bad news is that this strategy alone will

not make you wealthy, in fact in the short term, it could impact negatively on your ability to enjoy ‘in the moment’ lifestyle.

Holding onto property that has good capital gain or provides you with a passive income is a foundationally good strategy. You will want to amass as much of this type of property as possible over your lifetime. However, the way most people

start down this road will be to purchase a home to live in. Unfortunately, this strategy is often a highly emotional investment and this is not the best way to make investment decisions when you are looking to create wealth.

We currently live in an instant society that demands to have it all now! Putting yourself under a huge amount of debt and working like a slave to pay the

mortgage on that brand new home with a pool and plasma TV will punish your quality of life for the rest of your life. It will put you behind the 8 ball before you

begin and may see you 5 – 10 yrs behind a strategy that makes you money from day 1. Should you choose to start your real estate portfolio this way, the best suggestion I can give you is to make sure that the property you are buying will

work as an investment property as well. I can hear you saying “What is this woman talking about?” but please hear me out. At the end of this section I will show you a comparison to prove my point. As I mentioned, if you buy a home, your property is likely to double in 10 years maybe even less but property cycles are very reliable and while a property may

double quickly over 5 years, the chances are, that it will not rise significantly again over the next 5 years which evens out the 10 year cycle. Another buy and hold strategy is to purchase an investment property. This

makes more sense as you don’t need to put yourself under as much pressure because you are not expecting to live in the property. Therefore buying a 2 bedroom unit to rent out rather than a 4 bedroom house will be lower in initial and ongoing costs for you, you will not need as big a deposit and you will have tax benefits regardless of whether it is positively or negatively geared.

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By the way, the logic of purchasing property just to get tax benefits is flawed because you are essentially losing money every day in return for a one off return

that will go nowhere near covering the cost of the money you have been losing every day. Having said that, there is a reason to negatively gear property but it does not apply to the average person. Tax reduction should not be a reason for

purchasing real estate unless you are living the lifestyle of your dreams and you don’t need the money to assist you with that lifestyle.

Buy & hold property comparisons

Scenario 1

Buy a home for $400,000. If you have a 10% deposit and are eligible for FHOG which also means no stamp duty, let’s say that you owe the bank $350,000 at 7.5% interest over 30 years. This means repayments of principle and interest of $2500pm. At the end of the 1st year, congratulations you will have paid $100 off the principle of your loan so that you now only owe the bank $349,900 and

based on 10% capital growth will have made $40,000 tax free. This may sound like a good deal at first but let’s take a look at the 2nd scenario.

Scenario 2

Buy an investment property for $250,000. You can’t get the FHOG or stamp duty paid. (This is where I think the government needs to change the policy so that the real wealth from real estate can be maximised). You have to put up 20%

deposit and stamp duty, let’s say $60,000. Therefore your loan will be $190,000 at 7.5% over 30 years. This means repayments of $1330pm. You rent the property out for $1080pm so you are left to pay $250pm out of your pocket as

well as having to pay rent for yourself to live somewhere. You will also have property management fees to pay of around 8%, rates and maintenance expenses all of which are tax deductible as is the depreciation schedule on any building less than 40 years old and fixtures over a 5 year period. (See how to maximise the tax benefits for yourself by using a quantity surveyor – it amazes

me how many investors do not know about this cost saving measure. You are absolutely crazy if you own an investment property and are not using a QS!)

Scenario 3

For those of you still determined to own your own home first and build a real estate portfolio via this method, can I suggest you think about incorporating some or all of the following elements to maximise your leverage. Purchase a unit

or lower value property that you can add value to by either renovation or general

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tidy up even if it’s not something that you can turn into your dream home. Make sure that it is something that will ‘rent all day long’. Take advantage of the FHOG

if applicable and as soon as you have created enough equity, purchase another property along the same lines and continue to do that over and over.

So, which scenario is best?

Living in the home in the 1st scenario will also cost you in rates and maintenance too but unfortunately you can’t claim a tax deduction for these. With the 2nd

scenario, you are likely to be able to reduce your taxable income by about $5000pa which will automatically put another $1500 back in your pocket. However if you were still able to pay the $2500pm as for the 1st scenario you

would have paid $12,500 off your original loan amount reducing it to $177,500 while getting your $1500 tax bonus. Your 10% capital gains would be $25,000 & $12,500 = $37,500 for the year. Fairly close to Scenario 1 wouldn’t you say?

There’s an obvious difference here isn’t there in the leverage between the scenarios and it gets much more obvious over the next couple of years as you

make payments. To the point that you are much more likely to be in a position to purchase your next investment property, in just 2-3 years by starting out with scenario 2 or 3 as opposed to buying your 1st property as in Scenario 1. Anything

that compounds your money over time is the fastest way to wealth. It’s an amazing universal law in action! For instance if I was to offer you the choice between taking $500,000 today or 1c doubled every day over a month which would your choose? Now, go get a calculator and work out the 1c scenario so that you can see the benefits of compounding! Awesome!

I know that there are much better strategies to use to build your wealth through real estate and the first step is to learn about active real estate investing so that

you can accelerate your bank account first before committing yourself to a buy and hold situation. Before we begin to look at some of these strategies let’s take a look at the self assessment questions first.

Self assessment tasks:

1. What is your #1 real estate goal?

2. How long do you believe it will take you to achieve it?

3. If you found a simpler, quicker or cheaper way to reach your goal,

would you want to investigate it as an option?

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Buy & flip

Would you like to know a quicker way to make profit?

This strategy is not all that well known. It is usually used by people who buy the wrong property! Unfortunately, this is normally the result of a costly mistake.

However, when you do it right, flipping property can be a great way to make a tidy profit very quickly. The trick is to choose the right property in the right location for the right reasons. The more creative you can be the more $$’s you will make!

There is definitely a skill set necessary to get it right but all skills can be learned successfully by those that commit themselves to the task. You may have heard the term ‘practice makes perfect’ but I would add to this by saying that ‘perfect

practice makes perfect’. Patience, determination and commitment are also required.

Buy & Flip criteria The main criteria when looking for a piece of real estate to flip is that it must be something that is currently undervalued or discounted for some reason. You

need to be able to work out a quick and easy way to resell it for a profit. You must know your exit strategy before you get in and it’s even better to have an

exit door A and B! Here are some of the ways you might choose to buy real estate to flip.

Mortgagee in possession

This is a property where the banks have decided to sell the property as the owner may be behind in repayments or has indicated that they are under financial hardship. The bank is only really interested in getting their investment

back but they do have a moral obligation to sell the property for the best price.

Having said that, if you are the only one in the market for that property and you

hold your low offer long enough, you may bag yourself a bargain as I did several years ago. I purchased a property for $30,000 less than the bank’s asking price,

which was also $5000 less than the bank’s costs. You may think that was really mean of me but the owners had filed for bankruptcy and left the property months before I came across it, so there was no more hardship to be suffered by

my offer (except by the bank!) ☺ I had the property revalued after 3 months and was not surprised to find it was valued at $60,000 above what I paid for it.

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Cosmetic beautification

This is not the property that needs an extensive reno to make it viable! It may just be the worst house in the best street that has been let go or it may be a

property that is overgrown, needs painting, some new fence palings or an overall tidy up. You will be amazed at how much extra people will pay for a property when this has been done. Also known as ‘sweat equity’ because you trade your time and effort for $$’s. The more creative you are in adding value to real estate without costing yourself $$’s, the bigger the monetary reward to YOU!

Gentrification

This term applies to creating more use for a piece of land than it is currently being used for. Where you start to see the centre of cities, towns and villages

allowing for a more dense population, often this will be the result of a rezoning by council and is an excellent visual clue for you to research a particular area. In a flip scenario, you would usually only be looking to add value to the property by

means of sourcing a DA for future development or additions. DA’s can work really well with raw land, large blocks of land that may already have an existing dwelling or where council will agree to a 2nd or multiple dwellings on the land.

Buying wholesale

This is where you may buy off the plan or get a discount for purchasing several

properties at once. I have a friend who purchased all 42 units of a new apartment block from the developer during construction and found that each unit was worth over $100,000 more on completion than what she had paid for them.

Nice little income earner wouldn’t you say?

It is important to research the area well if you are choosing to buy & flip. If you don’t live near the area you are investigating or are not able to visit it easily, I suggest that you use the internet to your full advantage as the resources there are limitless. Visit the area via google earth and check out council, real estates

and local business websites to get a feel for what’s going on in the area. Is the population increasing rapidly, what type of population does it have, what demographic is there? Government websites can be very useful to you for this

information as well. You are looking to find what growth there has been and is taking place in the area and more importantly what age bracket is growing the fastest. As your main aim is to resell quickly, these are vital clues to assessing your purchasing criteria as you are looking to get paid here based on your researching skills. Find the demand and meet it!

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Self assessment tasks:

1. Does this sound like something that may interest you?

2. Choose a suburb to research, visit the local council website and

then write a one paragraph assessment on the area.

3. Find a property in need of cosmetic attention in your area and

write down a list of repairs and enhancements you could make.

4. To take this one step further, contact a local real estate agent and

ask them how much more the property may be worth if you carried

out your list.

Renovations

Here’s how a bargain can make you serious cash, if you’re willing to put in the work

This is another one of Australia’s favourite past times and the good news is that most people buying property definitely want the reno’s already done BEFORE they purchase which is why it can be a very profitable business for those who are keen to do the hard yards.

This is also a great strategy for accelerating your capital growth in your buy & hold portfolio or for additional profit when flipping. Remember to buy a property

that has the right things wrong with it and know the cost of the reno’s before you purchase. Don’t just guess on the costs or you will pay the price! Every 2nd reality television show at present seems to be about property and a large percentage of those are to do with renovating real estate. Renovating is a huge subject but it is important to get a few things sorted out before you even

begin to look for properties. Most renovations are a team based operation. In other words, you will not necessarily have the skill set yourself to do the whole

renovation. Perhaps you’re a builder which will certainly be an asset with this real estate endeavour but you are unlikely to also be the roof tiler, the electrician, the plumber and the painter. If you are, then I want your phone number, because I have some work for you! Developing a team that you can rely on to get the work done for you when you need it done should be a high priority.

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There are many facets to renovating and it is necessary for you to have a very detailed checklist before you begin to look for properties because as mentioned

before, you must always have your exit strategy in place BEFORE you get in. By filling out the checklist thoroughly, you should be able to accurately assess your costs to renovate, thereby knowing whether the property is a good candidate or

whether you have to move on and keep searching. You must not let your emotions rule you your decision. Rushing in and purchasing a property at this stage could cost you a whole lot more than just your money. The property is either feasible or it’s not. Your accurate calculations will help you determine this, don’t let your emotions overrule your logic!

I have heard and seen countless horror stories of people who have renovated a property believing in the phrase ‘Just build it and they will come’ only to find out

that ‘they’ are nowhere to be seen when the renovation is over. Just being able to physically orchestrate and carry out the renovation is not a strategy. You must know who you are targeting before you choose a property location and

type of renovation. The property must have the right things wrong with it that can be rectified and enhanced by the renovation you are proposing and you must be able to operate within a set budget and a set time frame to be successful in

making a profit. You will also need to have an abundance of patience and organisational skills are

a must. You are going to make mistakes and as I was once told, the quicker you make them, the quicker you’ll learn the ropes. So be prepared for making mistakes and don’t forget to get as much education as you can around this subject before you begin so that at least you can minimise the effects of mistakes and have some solutions quickly to the unforseen problems that WILL

arise when you renovate.

Self assessment tasks:

1. Name three parts of a property you would need to have a

professional look at before you considered purchasing a property

to renovate?

2. Name 6 types of trades people that could help you with your

renovation.

3. What personal skills do you have that you can utilise to carry out a

renovation?

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Property lease options

Here’s a method that’s helping people to buy property with no deposit

This strategy usually provides a win/win situation for everyone involved. It’s not very well known but growing in popularity in Australia and has a huge benefit in the fact that it has to be one of THE most flexible ways to buy and sell real estate.

The other benefits are that you need very little of your own money to get started and if you become good enough at it, you will not use any of your own money!

Your investment will be your time and expertise. If you have the gift of the gab you can create passive monthly income and chunks of cash up front and at the back end of each deal that you do!

PLO’s can be used to purchase a property or sell a property and if you are very clever, you can simply be the transaction engineer that brings the two sides

together which can result in a handsome profit for your time, creativity and expertise!

The beauty of purchasing a property this way is that it can allow you to do so with little or no money. The basic principle is to offer to buy a property by leasing it or renting it for a set term at an amount above regular rent rates, effectively creating a pay by month deposit before refinancing before the end of the term. ie. You could perhaps negotiate to purchase a $400,000 home which may rent for $400pw normally by offering to pay rent of $600pw for 2 years and

requesting 30-100% of the ‘rent’ to be appropriated as your deposit. This would equate to $20,800 – 62,400 deposit at the end of 2 years or 5-15% deposit,

more than enough to refinance. It also gives the bank a proven track record of you paying above rent rates and possibly similar to the money that you would be paying to the bank on your refinance.

At the same time, you will take out an option on the property. A property option is simply the right but not the obligation, to purchase a piece of real estate for a

set price at a predetermined time in the future. In other words, it’s the option to purchase or not to purchase, you get to choose. The option also gives you the time to see whether or not you really like the property and whether or not you

can afford the repayments. You can choose not to go ahead with the purchase at any time throughout the life of the option or at the end of the term. You can also negotiate for an additional option term or onsell your option during this time and possibly pocket the profit by any capital gains the real estate has realised.

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Why would a vendor choose to do this I hear you ask? Because not all vendors want money when they sell, some want peace of mind, some like the idea of

cashflow to offset their possible tax implications. The list is endless and the more flexible and creative you are, the more this strategy will work for you if you wish to buy a property that you perhaps currently can’t afford or one that you want to

sell without paying real estate agent’s fees or having to drop your property price. In fact, as the vendor, you can often charge more for your property with this type of sale because you are now offering your purchaser a service that they are not likely to get in too many other places.

If you solve a problem for a purchaser or a vendor, you win too! If you solve a problem for a vendor by supplying the purchaser, you can get paid very well for becoming the transaction engineer.

Self assessment tasks:

1. Would you be willing to talk to 100 property owners if it meant

that you would find one owner willing to allow you to rent and own their property?

2. Do you enjoy talking with people you haven’t met before?

3. Ring a few private ‘For Rent’ or ‘For Sale’ ads in your local paper

and ask the owner if they would rent their house to you for two

years at above market rent and treat that as a deposit for

purchase.

Vendor financing (Wraps)

Who else wants a flexible way to finance a deal?

This is another win/win strategy for seller and buyer with incredible flexibility to accommodate any situation. This strategy has the power to save your butt if

you’ve purchased the wrong property or if you have been unable to sell a property or if you find yourself struggling to pay the mortgage on an existing property. For the vendor, the purpose of this strategy is to supply you with monthly

passive income and those lovely chunks of cash upfront and at the end of the

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deal. Definitely worth pursuing if you are after lifestyle options right here, right now!

As for the buyer, the benefits are that the vendor becomes the bank for part or all of the property price. ie. Say you have no money for a deposit to purchase a

property and you find out that the vendor will finance the 20% deposit you need to get finance from the bank. The bank accepts this because they hold the 1st mortgage over the property which protects their interests as in a normal transaction and the vendor accepts a 2nd mortgage because they can take a 1st right of refusal which means, should you default on the loan, they have the right

to take the property back. This works even if the vendor becomes the total bank for their property and is a great way to earn a passive income from the interest charged on the loan. You know how profitable it is for banks to lend money so it

stands to reason that it may prove to be a good idea to become a bank yourself. As for the purchaser, if you have good income but do not have a deposit, or if for

some reason you are simply not an acceptable risk to a bank, a vendor may create a passive income for themselves by financing you into their property. Known as an instalment contract, the payments are made as per a normal bank

loan however unlike a bank loan, the flexibility available to both buyer and seller is only limited by the creativity of the negotiation between the two parties. You may also offer to pay the vendor more for their property because you

believe the real estate will rise in value over the term of your repayments. I have offered a vendor up to 10% more than they are asking for the right to purchase their property this way as it is in my best interests to not have to use any of my cash upfront for a deposit. I have found many vendors very willing to negotiate a deal on their property when I offer to pay them more for it.

Self assessment tasks:

1. Would you be happy to purchase a property using none of your

own money for the deposit even if you had to pay the asking price

or a bit more?

2. Would you be happy to sell a property whereby you received

positive cashflow in your pocket every month?

3. Do you think you could negotiate a win/win opportunity using this

information?

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Property development

Do you like the idea of developing the property yourself?

You can grow as little or as big as you want within this field and the monetary reward will be directly in proportion with the size of your developments.

For instance, if you choose to buy a property that will allow you to do a dual occupancy dwelling, you may make $50 – $100,000 in profit, whereas if you are

able to develop a block of land into multiple house blocks, you may be looking at several hundred thousand $’s in profit. They both take roughly the same time to do, so if you do the maths and one or both of the above scenarios appeal to you,

perhaps property development is the right vehicle for you to explore.

The only difference between the two scenarios is the level of expertise you will need to master. Property development is where you get to play Monopoly for real and this strategy has the ability to allow you to use little or none of your

own money as well! It is also a fantastic way to build your own buy and hold portfolio simply by keeping some of the property you have created instead of taking the profits in cash. ie. Say you purchase a block of land for $400,000 that you can put four townhouses on and the costs to build 4 townhouses = $800,000. You have now

outlaid $1,200,000. If the resale price of each townhouse is $400,000 then by selling 3 you have covered all your costs and are now able to sell the 4th one and keep the profits of $400,00 or you may like to keep one townhouse for your own

portfolio free of debt. Say you do keep the property and receive $400pw passive rental income, would that change your circumstances a little to receive an additional $20,000pa? Do you think you would have the confidence to then do it again? And again? Could it be that you could earn more than your current income by doing something like this?

I haven’t scratched the surface yet of what’s possible with property development but I think you catch the general idea. This is one area of making and creating

money from real estate that you don’t want to get involved in without proper education and guidance.

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Combo’s

Are you serious about creating wealth through real

estate? If yes, then this strategy is for you.

The most powerful strategy of them all. Not for the faint hearted but immensely rewarding personally and financially. There is so much to this category that it is hard to know where to begin. I could tell you about it here but then I’d have to

….... well, you know! No, actually I’m intentionally leaving this area fairly light on information wise

because it is only limited to your own imagination. I will give you some examples of combo’s that could supply you with enough income from one deal to allow you to retire from your day job if you want to but the real power comes in knowing how to create a deal where there is none and how to do it again and again and again. The power of a combination is in the structure you use to pull a project together and the necessity of having a good team to help you do it is essential.

Example 1: Let’s say you find a great deal such as a DA approved site for 22

townhouses. The land cost is $1,500,000, the build cost for 22 townhouses is $4,400,000 and the resale value of the units is $400,000 x 22 = $8,800,000. If you can purchase the land and get the finance for $5,900,000 then you are looking at a profit of $2,900,000 right? No, not quite yet as you still have to take off council and consultant costs, GST on the sale of some or all of the units, marketing and agent fees, interest and contingencies, loosely valued at a total of

$2,500,000. It’s still a profit of $400,000 who wouldn’t be happy with that? You could purchase a house debt free or keep one of the townhouses and rent it

out for $400- 500pw. Do two deals like this and you end up with $800- 1000pw income. Is this starting to come close to a weekly wage for you? Maybe you need four to six deals like this to give you the income you want. What is stopping you from doing this? Is it lack of knowledge, lack of finance, fear? How about if we take some of the financial pressure off? Let’s face it, not many

of us are going to rock up to the bank requesting millions and get it now, are we?

Example 2: You ask the owner of the land if he will do a joint venture with you and he agrees. Now you don’t have to put up any money to purchase the land, as the owner would like 4 units as full payment for his property. The bank finds you more appealing as it doesn’t have to carry the debt on the land and you save on interest, GST costs and marketing fees. The build costs stay the same

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but the additional costs are reduced to $1,500,000. You now have 18 town houses x $400,000 = $7,200,000 -$5,900,000 = $1,300,000 profit! WOW! You

could keep 3 townhouses and possibly still pocket $100,000 or more in profit. How is this scenario sounding?

Example 3: You find a group of investors to form a syndicate. Your land acquisition is $1,500,000 and your build costs are $4,400,000. You still have contingencies, consultant and marketing fees of $1,000,000 which is a total of $6,900,000. The $400,000 townhouses are offered to 20 syndicate members at a wholesale price of $345,000 paid up front to cover all the hard costs. Do you

think the investors are happy with the deal? Yes! Are you happy to be left with two townhouses considering you have not used any of your own money to acquire $800,000 in property?

As I mentioned, this is a very powerful strategy for creating wealth and your commitment to this will have to be 200%. It will take time, persistence and an

unwavering dedication to action to succeed. It will not suit the majority of people to do this strategy but if you think it could be a winner for you, then I encourage you to get educated and get a mentor first.

Getting started Which scenario appeals to you the most? How many times could you complete these type of win/win combinations? Do you need the finance yourself to invest

in and acquire property? You have now discovered the reason naked truth real estate exists. Your mission should you choose to accept it is to be all you can be.

9 tips to get you on your way

1. Set some financial and personal goals (short, medium and long term), 2. Read some good books such as Rich Dad, Poor Dad by Robert Kyosaki, and

Think & Grow Rich by Napolean Hill.

3. Attend investment seminars on topics that you are interested in.

4. Search the web for info that confirms for you what you want to do.

5. Find someone who has done what you want to do and ask them questions on how they did it or see if they will mentor you.

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6. Find positive like minded people who will support and encourage you with your goals.

7. Visit my website www.nakedtruthrealestate.com.au and tell me what

you’re up to, I’d love to help you in any way I can! There are so many

resources available to you. While you may be strong and capable, don't be afraid to ask for help or advice. It will catapult your learning and productivity.

8. Take time for yourself every day and decide what it is you really want.

9. Write a desire statement of what your life looks like when it's just as you

want it to be and read it to yourself with passion and emotion as often as

you can and you will move towards it as reality.

Learn how to apply these strategies and create unlimited wealth

If you could now access the knowledge needed to do these kind of deals as often as you wanted, would that be of interest to you? Would it alleviate some barriers

for you of fear or doubt if you could have someone alongside you helping you realise your full potential? I remember when I was looking to buy my very first property and got rejected from my bank! I had to go to 4 more banks until I found one that was willing to

lend me the money. And when I went to buy my second property, again, I got a big fat NO! If anyone knows about battles with lenders, it’s me. And if anyone knows what it’s like to go through the tough challenges of property investing, I’ve definitely been there. I’m not saying that I’m perfect, I’m definitely still learning and always intend to,

but what I am saying is that you don’t have to make the same mistakes I did. Fast-track your investing by learning from someone else’s mistakes.

Would you like personal mentoring to take you to the next level?

I often meet people who have done the same courses as I have, and they say, “Fran, I know all this, but I just can’t seem to get started! How did you apply the strategies?” So, for those of you who would like a helping hand, and believe you would

benefit from property mentoring, I’ve developed a program just for you.

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My program, Real Action in Real Estate, is designed for people who need help

from an experienced property investor. In this program, I personally commit to you for 3 months. You get access to me, and you can ask me questions as you move through your property investing. I’m here to help you with setting a

specific goal, keeping you on track and accountable and giving you feedback and guidance. Having said this, I am very selective about whom I work with privately. It is important that you join the program only if you are willing to commit to taking

action, completing all the tasks and moving out of your current comfort zone. You will only get out of the program what you are willing to put into it in action and persistence. There are no short cuts and no one is going to do it for you. I

will however, be by your side and most definitely a part of your team, to encourage you to reach your full potential.

I’ve made mistakes that have cost me tens of thousands of dollars. Actually to be honest, the total figure would be well beyond that. If you could save yourself

from these mistakes, through a mentoring program at a fraction of the cost, would that be worth your while? Just as your properties form part of your investments, so does your

education

I’m willing to be your personal mentor through this exciting time of your investing. Today I have a special offer for you if you are fully committed to your

own success. You can get all this and more for a special price as a reward for taking action. Here’s what you’ll get from Real Action in Real Estate:

• 1 hour initial phone call with me – Here’s where we work together to set a

firm goal for you. • 6 fortnightly email access – As your mentor, you want me to keep you

accountable, don’t you? Every fortnight, over 6 fortnights, I’ll send you a detailed report for you to fill out. This is where you tell me how you’re going and I’ll give you direct feedback. You’ll get my comments, support and suggestions to help you achieve the goal you’ve set.

• Final 1 hour phone call – This is your opportunity to de-brief from the last

3 months. Seek clarity on any outstanding issues so that you can move forward in the strongest position possible.

If you like what you’ve read in this e-book, and you think that there’s value for you in either of the programs I offer, I’d love to hear from you. It would be my

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pleasure to help you on your property investing journey to reach new heights of success.

To your real estate success Fran Blake