2 Properties in 1 Year – Simon Success Story

Simon was about to secure his second property. Within 1 year he went from 0 properties to 2 properties in under a year.

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0:00 – Introduction
2:00 – Journey from the 1st to 2nd property
4:26 – How Simon chose his 2nd property
7:50 – Do you regret buying this property?

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Transcription:

Ryan 0:00
Today, I’m really excited to share with you another success story from Simon Everingham one of the buyer’s agents over Pumped on Property, he’s actually been able to secure his second property. And he purchased his first two properties in just 12 months. So in less than one year, he went from zero properties to two properties. Now, this episode was filmed back in February before everything that has happened worldwide. So there’s a couple of references in there that are a little bit old. But still, I think this is a really valuable video. And I think you’re going to love his story and love hearing about his second investment property purchase. Today, I’m really excited to share another success story with you, featuring Simon, the buyer’s agent here a report on property who was actually able to buy his second investment property at the age of 27. So he’s actually been able to buy two in 12 months. So you want to talk a little bit about this second investment property that he’s purchased, how he got there, what it’s like, what’s the plans for it, and just kind of revel in the success that you got here because it can be a very hard journey. If you look back at some of our older videos, which I’ll link up below. It was hard for you saving not getting the mountain biking. Yeah, there was

Simon 1:18
a lot of sacrifice there. But lo and behold, I have the mountain bike now. Got the second Yeah, yes, I’ve got the man in black bed. three grand now I only spent $1,000. I can’t much money, man. So it’s so funny. But I love the positivity, bro. Like I love it. Because I’m all about living the journey, not not leaving for the destination living for the journey. And you know, having you intro that video like that? It’s like, yeah, hell yeah, that’s, that’s pretty damn cool. And yeah, and, you know, I’m gonna sit here and pat myself on the back. I think people should do that man, like people should appreciate the accomplishments that they’ve worked so hard for.

Ryan 1:59
Yeah, well, that’s thing you still obviously got a ways to go before you’re completely financially free through your properties. But yeah, more of the hard work is done in securing those two investment property. So talk a bit about your journey from the first property which you purchased. It was like late 2018. Yeah. And then this one, which you purchased, what late 2019. Exactly. So yeah, I put

Simon 2:23
the offer down for the first property in December 2018. settled, so the property was actually mine in early FEHB, I think it was the 12th of February. And then I got the offer on the second property in December 2019 and settled on the 10th of February 2020. So just got it within that 12 month time frame by two days from settlement to settlement. Basically 2019, which just a year of of saving, a year of sacrifice a year of investing for myself, I knew where we were in the global and local cycle, there was lots of negative sentiment toward the start of 2019. And that took a little while to recover. So I knew that that was a good opportunity for myself to get into the market when there wasn’t too many other people around. So I just took full advantage of the market conditions and worked really hard to save up that deposit, I managed to increase my income over that period of time, which helped me get to that savings goal a little bit faster. And even though I was working hard and saving a lot like I still managed to live my life last year, like I went overseas twice. You know, luckily for me, my partner works for Virgin Australia, so I get cheap as flights everywhere. So it’s not as expensive to go on holidays. But yeah, like it as I was saying it’s just about that journey to me and enjoying all of it. And yes, so sacrifice. Last year, while I was saving up for that next deposit, I didn’t even really get to use any equity from the first property, which was a good thing for myself as well, I didn’t really want to have to leverage off that first property to get into the second one. So it’s just another 100% cash deposit.

Ryan 4:09
So you just worked hard for a year to save another deposit is basically what you did. So yeah, you worked hard to save your deposit the first property, and then you worked hard to save you deposit the second property with a bit of increase in income in order to help you along that journey.

Simon 4:23
Exactly.

Ryan 4:24
And so, talk to us a little bit about the property. What made you choose a What about the area? What was special about this one that made you pull the trigger?

Simon 4:34
The funny thing is, is I pretty much just replicated the strategy for that first property now, we’ve done videos on that I’m sure we can link quite hard as to what my strategy was for that first property. I just rinse and repeat when you know you’ve got the right strategy to achieve your longer term goals. It’s easy to stay focused. And basically the way that it worked was I got into a position where I thought I was ready to start looking, wasn’t ready to buy my mortgage broker even said he’s like, start looking but let’s not try get anything under contract until March 2020. And then literally two weeks after that conversation with my mortgage broker, I talked to an agent, she said, your properties come up. And I’m like, What do you mean? She goes, Oh, one of our colleagues has just listed this property, and it suits all of your goals. And then I’m like, Okay, cool. Send me through some information. I got home from work that day, did a little bit of due diligence, did my flood checks, did my suburb check, did my ease meant checks, did a little bit of research on the property and said, Oh, well, this is is the right one, caught up my mortgage broker and I said, Look, if I buy a property today, are we going to be able to settle on it in a couple of months, and he goes, it’s going to be stretched by you know, let’s give it a crack. So literally, from the afternoon that I got told about it, I had it under contract by midday the next day. Yeah. So it all happened really fast. Because the market had heated up a little bit. I knew the property was price really competitively. So I just jumped in and went for it.

Ryan 6:11
And really, you’re able to jump back quickly? Because you’ve done all the prior research for your first investment property. Yeah, you’re in a similar area buying a similar type of property. Yeah, you know, you kind of rinse and repeat. So you didn’t have to do or and you’re a buyer’s agent as well. Yeah. So it’s one of the areas that you hope people buy into obviously know pretty well. So you’re able to pull the trigger on that. So then did you do was the next couple of months frantically saving? Yeah,

Simon 6:35
yeah.

Yeah, it was, it was tight. So it was time to get that together. But I was kind of worried at the time, when I first got it under contract and call my dad going, data might need to borrow a little bit of money to settle on this property. And luckily, for myself, I knew how much money I was kind of missing out on and thought I needed to borrow. And that was around 5000 $6,000. And then, after getting the property under contract, doing some extra due diligence, I’ve got a building and pest inspection done. And this doesn’t normally happen. But those significant issues wrong with the property. And since then, I’ve actually decided I’ll knock it down, because there’s so many bad issues there’s there was about, I think there was 80, or 90 pages and defects wrong with the property. Hence why I got it so cheap, but I was able to use this building and pest inspection to renegotiate and knock off about seven and a half $1,000 off the purchase price, which got me into a point where I knew I was going to be able to sell a lot without having to borrow any money from anyone. And so

Ryan 7:47
that’s how you made it work. Yes, you’re able to negotiate that down. But you had a strategy if that didn’t work. Do you regret the property now knowing that it has so many issues? No, because I bought it for the land value.

Simon 7:58
I didn’t buy it for the house that was on top of it. And that was always a part of my strategy to buy something that was really rundown, that had that manufacturable value that that potential to renovate. But after getting this together, and because I got the property at such a cheap price, it ended up coming down to about $365,000 with the reduction. So amazing price for the area that I bought in and I buy I will just knock it down and rebuild. And that’s completely fine with myself as well because I do want longer term and low maintenance property.

Ryan 8:32
Yeah. And so in the next episode, we’re going to be talking about your own two properties. What now so Simon’s kind of alluded to knocking down and rebuild. We’ll talk more about that in the next episode. So go ahead, click over here. Check it out, and we’ll see you in the next episode.