You Can Make Mistakes And Still Be a Successful Investor

Today we are going to tell the story of another one of Ben’s property investment mistakes. Showing that you don’t need to get it 100% right to have success investing in property.

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0:00 – Introduction
0:40 – The story behind this stuff up
6:05 – Even the subdivision process was not as smooth as originally thought
7:30 – Minimising your risk for when mistakes happen
10:20 – You make mistakes on everything you do
12:00 – Having a long term approach instead of trying to get rich quick

Recommended Videos:

What are Sophisticated Investors Doing In The Current Market

Ben’s Property Horror Story

The Subdivision Process Explained

Transcription:

Ryan 0:00
so here we are standing out the front of a subdivision that ben did and this is ben where he was going to build a jewel occupancy property but there was a major stump up where the suicide actually sold this to someone else so he was mentioned so you can see the house right there that’s a jewel occupancy that ben has built so ben actually owns that line but he wasn’t meant to own this line and so today we’re going to tell the story of another one of ben’s property investment mistakes

Ben 0:33
and you live in your lane you know the sooner you recognize that things come up the better you can roll with the punches but effectively i bought this block which was 1200 1300 square meters just before christmas a couple of years back it had been on the market for like nine months for like 800k the agent i gave him a call like the day before christmas i’m just like dude you haven’t sold it you know i’m prepared to offer you this and he rang me back that avo which is 150 grand less and he’s like it’s yours and i was like yes but it wasn’t the deal of the century like those you know my intention was to buy it cut it in half keep one side sell one side

Ryan 1:12
which she did he just ended up with the wrong side

Ben 1:15
yeah i wanted to keep this side

Ryan 1:17
why why did you want to keep this side instead of that side

Ben 1:20
because this is you know there’s a big golf course behind there there’s also like a very established home that’s been there for a long time on that side i just thought this was not as the premium side of the block it’s just a bit closer to the golf course where the premium houses are i know that’s not a big thing but even one house closer sometimes can represent value in people’s eyes long term

Ryan 1:41
yeah and so is this block bigger than that one are

Ben 1:43
they the same cut them into the exact same sizes so what’s happened

Ryan 1:48
not that big of a mistake like it’s a mistake but it’s like okay you you want house back not ideal but like tell the story about how you’re about to build a slab on this where it could have been a massive mistake that would have cost you 10s of 1000s

Ben 2:02
yeah so what happened is how did you sell the wrong walk in the first way like i’ve i’ve cut out the block i’ve highlighted which one that i wanted to keep which was the left hand side block from the straight looking at it from the straight and i’ve highlighted that i’ve told my solicitor that that’s the one that we wanted to keep i’ve told the builder that that’s the one we wanted to build on some reason i just expected and this is a big lesson for me never expect your team of advisors to do anything they say they’re going to do or anything you’re paying them to do like double check yourself and i’d got the lot numbers or dad got the lock the lock numbers mixed up my solicitor and effectively i think this was what six as you can see on the sign there and that was what five but for some reason dad mislabeled them so on paper on paper and i hadn’t checked it because i was like you know they’ve got it right i’ve got the full clear instructions there and then all of a sudden i get a call from the builder like i’ve sold the light i’m ready to build i’ve got finance for it and i get a call from the builders like ben i’m down at u f inside at quanta i’ve completely cut the site which this has been cut ready to build on i’ve got one

Ryan 3:10
called the site moon though he’s been in read the site like

Ben 3:13
you know before all of these waves grew back this was a little bit lumpy than it is now so you know cutting the side effect means clearing all that as you can see that dumped rock here because that’s where the car like the truck comes up and stuff like that ready to build on yeah just to keep all dirt off the street and he’s sitting here with his concrete crew the sites or box stuff it’s been caught it’s ready to pour concrete and for some saving grace like the owner of this blog rocked up and they’re like what the hell are you doing that’s your site this is like a blank piece of land here and he’s like no it’s not this is this is my client sign and they’re like no it’s not pulled out the paperwork and the solicitor has written the wrong lot number i haven’t double checked it and we’ve sold this book so if it had been literally any other time because this client was from like melbourne yeah suddenly like the person that bought this off me from debt was down there they just randomly been there at the exact moment just before the concrete pool

Ryan 4:12
thank you thank you university again can you imagine how long in the process that would have taken to actually discover that this is not your site like you may have built the slab i wouldn’t build the house like you could have built the house on someone else’s site and then what do you what do you do what is what do you do with

Ben 4:30
the way that they showed up and how crazy they got they really wanted this one so i don’t think we could have reversed that i would have had to pay you know we would have had knocked over the house effectively like he could have had to happen two to three weeks later frames would have been out roof would have been on windows would have been done it would have been a nightmare like i could have been in it for 100 grand and i had no one else to blame for that except not me not checking the solicitor because yeah what are you going to do like have a legal battle with a solicitor It’s tricky. Even when I said to them, I rang them up like you fucked up my sale. I don’t care because I’m happy with that block. But, you know, I’ve all the time, and they didn’t even admit any liability, you know,

Ryan 5:15
the defensive they’re super smart with that though I wouldn’t admit anything and then defensive mode legally He’s like, protect yourself behind the scenes, I

Ben 5:23
would have been like, Oh my god, we’ve like massively stuff this up. Yeah. But you know, that’s what it was. So, huge learning curve, you know, I’m saying with what I ended up building there, which is a four bedroom home two bedroom granny flat, but definitely learnt my lesson to double check everything. Definitely just thank you to like the universe for looking after me again, and so grateful that if God hadn’t got any further into it, because if I hadn’t, like the slab had been poured, and I had to remove just a slab 25 grand straight up, plus the new slab cost down there, like, potentially save myself a couple 100k on building, you know what I mean? Yeah, very, very happy man. So

Ryan 6:00
even the subdivision process didn’t go as smoothly as you wanted to get to that point. Like I remember we talked about the subdivision process. And I’ll link up to the one where we talked about, okay, how did Ben actually do a cell division? How do you do a cell division? What are the southern some of the stuff that you talked about, like I remember, you talked about, someone had to walk around with a stick. And in order to find the storage, so they lost

Ben 6:25
the sewer tail where they build the plugs in the sewer. So there’s these guys that literally walk around with a metal pole and hang it in every single part of the block until they hit the pipe potentially cracked apart. So that took four weeks longer than it should, my town planner told me that the subdivision should only take three months and probably cost about 40k, it took eight months and cost like 70 grand, you know, just all these bits and pieces, like the council wouldn’t approve this site. Because I hadn’t put these trees, you know, I’d remove the tree and I needed for the subdivision to be approved for the tree to be in the grand,

Ryan 7:01
I’m just gonna show you how. So you obviously put a tree in. But it’s it’s looking pretty sad. It’s a pretty sad tree. I need I needed that pole to balance this will move the tree back in a second.

Ben 7:19
You know, these things happen and lessons learned. It’s all worked out, okay, like, you know, got the land for a cheaper price. And I could have just buying land?

Ryan 7:28
Well, I think, Okay, this is something that we need to talk about, which is minimizing your risk for when mistakes happen. Not if mistakes happen. Because if you’re going to do this long enough mistakes will happen and like you’ve invested in so many properties now. And you’re still making mistakes, stuff happens, but minimizing your risk on the way in so that when mistakes do happen, you’re covered for it. Now, obviously, if that was fully built, we may have been having a very different conversation, like you’re very lucky here. But in terms of buying the land at a good price. So you’ve got a bit of a buffer in there. When it comes to building, you’ve got relationships with builders, so I know that your build costs would be under what other people pay. Now look after me, because it’s not a problem. It’s not the first place I’ve dealt with someone. Yeah. And so you’ve got that relationship, you’ve built a dual occupancy property now. So you know, you’ve got the cash flow there, as well. So you’ve done a lot of things, you did a subdivision to sell off some of the land as well to minimize your risk there rather than keeping both of them. And so you’ve done a lot of things on the way in to minimize your risk so that when mistakes do happen, you can run with that, and you can be protected from that. And look, you ended up with the wrong property. But it still ended up alright, and this is still been a good investment for you. It’s got really good cash flow, given that it’s

Ben 8:46
jewel lock, I should have actually kept both pieces of land even looking at it now like at the time I was really freaking out about the market. This was a couple of years back and I wasn’t sure what was going to happen. I didn’t know how far the slide in Sydney and Melbourne would have an effect on Brisbane. And so I was just selling assets at that time in that year. I that year, I sold four properties. Yeah, this being one of them. But looking back now, I should have kept it because there’s no way that I can replace this in this current market now. But again, like you notice in my language, every time something bad happens, like I don’t mean to like gloss over stuff that has happened in the past, but my outlook is resilient and my outlook is positive. It’s just like that happened. I’m not thinking back on it too much move on. Yeah. And so many people particularly investors get really caught up with things that don’t matter. And they get stuck there. And that is what separates people that achieve freedom and that don’t as well, you know,

Ryan 9:40
so there’s a lot of people stuck on the what if Okay, what if I kept this it’s gone up in value? What if I kept it, you know, you would have had two dual income properties. Right now we’d be sending out the front that would be sick. So a lot of people get stuck on that. Okay, these are the opportunities that you missed, but I guess learn then realize is always going to be other opportunities out there. And just learn from that experience. Don’t get hung up on it. But just remember that there’s always another opportunity round the corner. And you do this. And now you’ve moved on you’ve done, you know, another gradient block and a bill which is almost finished up on the Sunshine Coast. So

Ben 10:18
yeah, you know, you live in you learn and it’s not,

Ryan 10:21
and you made mistakes on that one as well.

Ben 10:23
You make mistakes on everything you do, because you don’t know everything until you go through it. Like just even little things like planning properly and floor plans and how long it’s going to take to do this and that but, you know, most people expected wealth creation to look like this, like this beautiful upward trend with maybe some exponential at the end. It looks like this man, it looks like

Ryan 10:44
yeah, you

Ben 10:45
know, oh, yes, we’re here now after 20 years, slowly

Ryan 10:49
working your way up. And then I think as well with you and I being business people on being entrepreneurs, we definitely more have like the run up crash run out crash Yeah, sort of things in the way that we do business. I think other people want more conservative, and can just, you know, buy a block, do jeweler, hold it. And then like, a less up and down. That’s

Ben 11:10
what I’m doing now is buying blocks, and I’m building jewelry. Not all buying houses and building granny flats and renovating them. It’s not, you know, I went did this. That was fun. I always wanted to do a subdivision, it was way easier than I expected, you know, to make 100 grand on this. Five or six hours worth of emails to my town planner and a couple of documents, like a subdivision if you actually have the right team is really easy. But to make 125 or

Ryan 11:37
six hours of emails, but that was spread out over eight months.

Ben 11:39
Yeah, let’s spread out over eight months, because it’s like an email only takes you two minutes to respond to Yeah, but if you break like 60, liking five hours into two minute chunks, it felt like a lot of work. But it was not. Yeah. And it’s just, you know, for me, now I’ve gone well, I’m not really interested in being a developer for the risk, I’m more interested in just accumulating really high quality, low risk properties that do what I want them to do. And having a longer term approach as opposed to running around like a head, like a headless chicken. Yeah. And effectively, trying to get rich quick, which is what I think I did for seven out of the first 10 years as an investor. And for the next 10. I’m just going to do the old traditional way, which, you know, guarantees long term success that might have some short term consequences every now and then as well.

Ryan 12:26
Yeah, well, and we talked about that in the car on the way down to we’re doing a lot of inspections today. So we talked about what a sophisticated investors doing in this current market. And it is a lot less risky stuff. It’s a lot less short term stuff and a lot more long term stuff. So what I’m going to do is a link up to that one, go ahead and check that out on what sophisticated investors are doing. We just thought this would be a little fun one to share. It’s always good to have it

Ben 12:52
linked into our story in the center. Yes.

Ryan 12:54
Okay. Yes. I’m going to link up to Ben had, you know, basically a meth lab in his granny flat on the on the central coast in Sydney that he didn’t know that

Ben 13:03
you’re talking about the universe is wanting you a car? Oh,

Ryan 13:07
yeah, it has not shown up for me lately, but I feel like we’ll

Ben 13:11
get you stuff out of it.

Ryan 13:13
But yeah, that one is a hilarious story. Cops show up, they burned down the building. Oh my god, it’s brilliant.

Ben 13:20
I can link out to that one. Go ahead, check it out is that you got that presented even after the building was burnt down. And we had 10 days to evict the tenant using the court system. Because we cut off the power. She went over to the neighbor’s block plugged in like an extension cord from their power supply. When it was raining in the house, I get another call from my property manager. And she’s like, hey, Ben, I’ve just gone to inspect the property to make sure they’re out. And I can see there’s this extension cord. It’s raining and it’s sparking the other granny flat it’s like, well, now that we’ve trimmed down the house,

Ryan 13:57
funnily obviously they they do get evicted and has a happy ending to that story. Were you able to renovate it and sell it and you made a good profit and you had good cash flow? In the meantime? So certainly, yeah, that’s funny. So holding on to that, go and have a laugh at Ben, enjoy yourself.

Ben 14:15
Probably got a few more of these, hey, when we

Ryan 14:17
talk to a central coast, every property that but obviously, you’ve still had great success, and it’s really exciting to say that, okay, you don’t have to do this perfectly in order to have success and achieve financial freedom. So and also it just, it makes property fun and entertaining for you out there. Because I know there’s a lot of different property content. There’s not a lot where we just get to offer it online. So

Ben 14:43
thanks for laughing

Ryan 14:44
at me guys. I’m sure you can laugh at a lot of stuff that’s going down in

Ben 14:48
our lives another 100k I’ll let

you guys

Ryan 14:53
alright, so we’re going to go ahead and check out those videos that we talked about otherwise, until next time, stay positive

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