Treating Property Investment As A Business

Master Class:Treating Property Investment as a Business

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We help investors build and manage

their property portfolios

In partnership with…

Real Estate Investar’s tools

Take the 21 day free trial at www.realestateinvestar.com.au

Portfolio

Builder

Portfolio

Manager

Portfolio

Builder

Portfolio Manager

Membership options to match your needs


21 Day Free TrialNo obligation – full access

www.realestateinvestar.com.au

We even set up & supply you with:

Portfolio Solutions Master Class

• Designed to share knowledge.

• Desire to provide extra value to our clients.

• Great for both new and experienced investors.

• Plenty of opportunity for Q&A

• Market leading industry partners invited by Real Estate Investar to present and educate.

Our special guest

Ryan StrousPre-Sales Specialist

Xero

Xero• World’s leading online accounting system.

• Founded in 2006, dual listed on NZX & ASX.

• More than 900 staff worldwide.

• Trusted by more than 400,000 small business owners and professional advisors.

• 100% cloud based. Nothing to install. Works anywhere.

• Powered by daily bank feeds from 5,000+ banks.

• Same security as internet banking.

Treating Property Investment as a businessHow to use REI & Xero to better understand and manage your investments

4 things critical to every business

• Team

• Strategy

• Goals

• Active Management

“Don’t treat property investment like a game”.

Who do you need in your team?

Accountant

Mortgage Broker

Quantity

Surveyor

Property Manager

Legal Advisor

Portfolio solutions – Start your team here

Find REI & Xero friendly advisors

So what’s your strategy?

1.75m Australians

1 Property

2-4 Properties

5+ Properties

• Pays shortfall for 5 years+.

• Eventually sells and pays down personal debt.

• No retirement income.

• Strategy & numbers.

• Self funding portfolio.

• $100-$250k+ passive income in retirement.

• Has high income or buys every few years.

• Freehold in retirement.

• Min. retirement income.

Source ATO/ABS

3 levels of Property Investment

1.75m Australians

1 Property1.266m

73%

2-4 Properties457,000

25%

5+ Properties28,3451.7%

• Pays shortfall for 5 years+.

• Eventually sells and pays down personal debt.

• No retirement income.

• Strategy & numbers.

• Self funding portfolio.

• End up freehold• $100-$250k+

passive income in retirement.

• Has high income or buys every few years.

• Freehold in retirement.

• Min. retirement income.

Source ATO/ABS

What level are you aiming for?

Poll:How many investment properties do you have?

• Pick the right strategy for you• Pick the right strategy for now• Keep an eye on what is going

on in and around the market.

Our top tips for 2015/2016:

1. Buy well (Get a discount)2. Create Equity (Improve value)3. Maximise Cashflow (Be creative)

Check out blog.realestateinvestar.com.au for more!

So how can you succeed?

8 Type of Property Strategies

1. Capital growth

2. Discount

3. Renovation

4. Positive cash flow

5. Vendor finance

6. Strata titling

7. Subdividing

8. Development

Goal Setting 101Remember ‘Smart’ goals are key:

• Specific Who, What, Where, When, Which, Why?

• MeasurableHow Much, How Many, What Amount?

• AttainableMake sure you have the attitiudes, abilities, skills and financial capacity to attain them.

• RealisticYou need to be willing and able to get there

• TimelyMake sure you have a timeframe

When setting goals:• Create a big goal first

“I want to retire by age XX with an income cashflow of $XXX,XXX per annum”.

• Break it down into smaller goals

“I want to be able to measure and track my current investments for year on year comparison of growth and cashflow”

“I want to add a property that will provide 25% of my XX targeted income per annum”.

• Create action steps

“Create a report on my current position”

“Meet with my Accountant to review current position”

Let’s talk about Management & Tracking

So you’re investing in property?

The importance of tracking

• If you don’t track what you are doing, how do you know how you are going?

• When do you know the right time to act next?

• What if you lose a receipt?

• What do you do at tax time?

• What will you do if you’re audited by the ATO?

What are your options?

There are 4 different options for staying on top of your investments:

1. Folders, envelopes & boxes.

2. Spreadsheets.

3. My accountant does it.

4. Systems & technology.

Each have their own pros and cons, and you can also use combinations.

Folders, envelopes & boxes

The most common approach for the bulk of investors. Documents stored away during the year and pulled out at tax time.

PROS

• Simple method.

• Low effort required during the year.

CONS

• A lot of effort or cost come tax time.

• Easy to lose crucial documents.

• Things can be missed that might be claimable.

• No easily accessible data at a glance.

Spreadsheets

As investors add property, spreadsheets become more important. Created for purpose, or supplied by advisors.

PROS

• Readable high level data.

• Measurable.

CONS

• Require ongoing regular effort.

• Still requires files or folders.

• Need some basic technical skills.

My accountant does it

Under this scenario everything is simply handed over to your accountant at tax time. ‘There you go mate!’

PROS

• No real effort required

CONS

• High cost and in arrears.

• Low visibility until youget your tax return (and bill).

• Never market ready.

Systems & technology

Xero and Real Estate Investar have integrated to deliver real time accounting, management & tracking of your portfolio.

PROS

• Accessible anywhere.

• Live market and transaction data feeds.

• No more boxes of receipts.

• Less stress and accounting costs.

CONS

• Less work for your accountant.

Poll:What best describes you?

7 Tips to make next FY Simple

1. Add your properties to Portfolio Tracker.

2. Request your complimentary Xero organization to be set up and connected to Portfolio Tracker.

3. Connect your bank accounts.

4. Commence reconciling your transactions.

5. Add your trusted advisors to Xero.

6. Attach everything you can to Xero.

7. Send an email on the 1st of July to get started with last years return!

Next steps

Poll:How can we help you?

• Take the trial, or if an existing member, get started with Portfolio Tracker.

• Add Xero by clicking the Xero logo on the home page and completing the “Get Started with Xero” form.

• Review the training videos and webinars (including this one) available in our video tutorial section.

• Real Estate Investar provide 5 hours of 1-on-1 training to all new members as required (valued at $745).

• Xero support is also available readily through their website.

What can I do next?

Plenty of resources available


We also make it easy to find REI and Xero friendly accountants




Questions?

Treating Property Investment As A Business

Real Estate

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