Jan 8, 2018
Are you interested in getting involved in property
renovations or development?
In today's show I’m sharing an interview where Justin Gehde and
I talk about how I got started in property renovations and
This is part of the summer series of my show, where, while I’m
on vacation, I pull out some of my favourite past podcasts not
previously shared on this show.
So today there are some great hints for you because
I discuss many of the lessons I learned and some of the
things that I got wrong along the way.
How Michael Got Started With Property
- Michael bought his first investment property in
the 1970s. He paid (a half share of) $18,000 for it and was got $12
a week rent.
second property needed a renovation. He got involved in development
in the 1980s. He had good partners and mentors that helped him
until the recession hit.
he started helping others in the late 1990s helping people with
property development management and doing development for
- Michael is still very actively involved in
property development. He enjoys creativity and finding solutions
takes pride in his large developments that have changed the face of
- Michael thinks property development is the best
way to use money and buy assets cheaply. He doesn’t flip, instead
he renovates and holds on for the long term.
the 1980s Michael was very brave and maybe a little stupid, but he
took some big risks and the rising market got him
has learned from mentors and he has seen partners go bankrupt and
he is a much more careful investor.
common problem Michael encounters with clients is they have
advice is to start small do the renovation and then move
importance of finding investment grade properties in suburbs that
outperform the averages and where the jobs are and where people
have more disposable income.
today Michael conducts the orchestra and still has fun at work and
undertaking property development.
- Michael still enjoys the marketing, research,
recording the podcast, dealing with the media, and strategic
- Michael and his property development management
business became experts in certain
municipalities, so they know what does and doesn’t
experience makes a difference in property developments and creating
the type of property that tenants want and what the end product
- Location, owner occupier appeal, demand for a
wide demographic of people who want to rent or buy there.
Investment grade property.
starting over again, Michael would educate himself more and learn
from people who have already done what he wants to do.
- Rather than flipping, property developers
should be adding value, refinancing and keeping their properties.
This way they are much more likely to become wealthy.
Links and resources:
Our favourite show quotes:
“Property investment and
development is a game of finance and having the right cash flow.”
“You have to have money set
aside for a rainy day because the finance markets can turn very
quickly.” Michael Yardney
“I’m actually having fun sitting
back a bit and enjoying the results.” Michael Yardney
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