Forums / Property Investing / General Property / Thankyou Steve Mcknight !

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  • Profile photo of westnbluewestnblue
    Participant
    @westnblue
    Join Date: 2013
    Post Count: 35

    The person who inspired me to get started in investing. Inspiration was all i needed to get going – someone to show me the path.

    I meet you at the Brisbane update and you signed my tatty copy of your first book – my investing bible for many years.

    You've not only helped me create financial independence – in return I have been able to help my mum buy her first home and others with your investing system.

    As promised here is a copy of my story in Your Investment Property mag.

    *Edited later (Jun 2019) by Benny
    I noted the links above no longer work. To add some value back, I have copied the original data from the magazine showing Darryl’s purchases, along with a quick summary of his actions. Apologies if the layout doesn’t quite make it……

    Locations Paid Reno New Value Rental/wk Yield
    Broken Hill 44,000 YES 95,000 190 10%
    Broken Hill 25,000 YES 79,000 175 12%
    Cairns 42,000 70,000 140 10%
    Maryborough 79,000 130,000 230 9%
    Cairns 45,000 72,000 155 11%
    Broken Hill 39,000 87,000 170 10%
    Warwick 120,000 YES 185,000 230 6%
    Park Ridge 62,000 YES 120,000 200 8%
    Broken Hill 39,000 YES 95,000 220 12%
    Park Ridge (2 units) 225,000 300,000 440 7%
    Wishart – Unit 136,000 180,000 255 na
    Kangaroo Pt, NSW 380,000 480,000 1520 16%
    (4 x 2br Units)

    Totals Paid 1,236,000 Value 1893,000 $3925/wk 10.8%

    Darryl’s Success in numbers as at Dec 2013:-
    Owns 16 Properties
    Bought for $1236k
    Now valued at $1,893k
    Mortgages $1,017k (some borrowed for renos, etc)
    Equity Growth = $657k
    Total Income – $196k pa

    Mortgage payments – $55k pa (from pi.com article)
    Other (rates, ins, maint) – $70k pa (my own estimate – conservatively high?).
    Total costs – $125k

    Profit (living expense?) $71k ($1400 pw) – Income Tax not accounted for

    Darryl re-visited us in May 2017 (see post further down) where he tells us he now owns 50+ properties and is securing his future by reducing his LVR’s.
    Go, Darryl !!

    PS For a better look at the table above, go here:-
    https://www.propertyinvesting.com/topic/4410441-thankyou-steve-mcknight/page/2/#post-5054280
    – Benny

    • This topic was modified 2 months ago by Profile photo of Benny Benny. Reason: Adding data to replace lost links
    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Darryl,

      Congratulations !!   What an inspiring achievement, especially for anyone else who doesn't earn a huge salary.  My hat is off to you.

      I'll have to go seek out the mag for myself, so I can read up on how you did this.

    Benny

    Profile photo of FreckleFreckle
    Blocked
    @freckle
    Join Date: 2012
    Post Count: 1,681

    He's leveraged to the gills with circumspect valuations. Darryls in that very dangerous phase where he's waiting for equity growth to reduce leverage to a point that is sustainable long term. His $200k earner is gross TO and will in the main be consumed by servicing.

    It's the most adverse risk profile you can have as a PI. The market moves against you in even a small way and you can be gone faster than a speeding bullet.

    This stuff isn't rocket science. Most people are risk averse but when you're risking OPM things take on a different perspective.

    Profile photo of westnbluewestnblue
    Participant
    @westnblue
    Join Date: 2013
    Post Count: 35
    Freckle wrote:
    He's leveraged to the gills with circumspect valuations. Darryls in that very dangerous phase where he's waiting for equity growth to reduce leverage to a point that is sustainable long term. His $200k earner is gross TO and will in the main be consumed by servicing.

    It's the most adverse risk profile you can have as a PI. The market moves against you in even a small way and you can be gone faster than a speeding bullet.

    This stuff isn't rocket science. Most people are risk averse but when you're risking OPM things take on a different perspective.

    Most of what you said is true.

    Ive protected myself from interest fluctuation by fixing the loan for 2-5 years, if anything drastic happens then i can sell.

    My current LVR is around 70% on all properties, 

    My current interest repayments are ~$55,000 p/a fixed for 2-5years, most of the houses i bought in broken hill were around 30k. When i did the original plan – for every $130k in income i would have $40k in expenses, and just worked back from that.

    Early 2014 im buying unencumbered property for more cash flow and reducing my LVR to 60%. As Steve said, theres two phases – acquisition and consolidation. I think there will always be some loans against the properties, my ideal LVR is 20%.

    You cant ask for everything when kick starting a company from scratch, however I was more scared of being someone elses puppet working for someone else. In the end i would do all this again not to EVER have a job again.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Good on you Darryl!  I loved that article  smiley

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Hari YellinaHari Yellina
    Participant
    @yellina
    Join Date: 2007
    Post Count: 101

    WestnBlue, 

    I am Hari Yellina, I would like to congratulate you on the job Well done, I should buy a the magazine and read about your achivements. 

    Keep up the good work. 

    Thank you

    Hari Yellina

    Property Investor. 

    Hari Yellina
    Email Me

    Keep Investing - Grow while Resting.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Nice work Darryl :-)

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    Darryl,

    You are too nice. You can just tell people to put that in their pipe and smoke it. You are where so many of us want to be.

    Congratulations.

    Profile photo of TaylorChangTaylorChang
    Participant
    @scha9799
    Join Date: 2009
    Post Count: 234

    It’s a very inspirational story !

    Thank you for sharing :)

    TaylorChang | Finance Broker
    Email Me | Phone Me

    Home loan | Commercial loan | 0414 691 517

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 317

    Great job! Certainly there are some risks with this strategy but there are far greater risks with doing nothing. Love it!

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of sydneyguysydneyguy
    Participant
    @nishaant
    Join Date: 2015
    Post Count: 7

    Hi I would really appreciate if someone could give me a link to his strategy and story.

    Thanks

    Profile photo of LiangLiang
    Participant
    @liang86
    Join Date: 2015
    Post Count: 1

    Well Done Daryl! Very inspirational!

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi all,

    I was able to get a Back Issue from here late last year :-
    http://www.yourinvestmentpropertymag.com.au/magazine/

    See the “Back Issues” section.

    I note that the magazine from that date (Dec2013) doesn’t show for me now – maybe they are restricting me from getting another copy? I can’t think they have “run out” of electronic copies…

    Or, could there be other reasons why it is no longer there?

    Benny

    Profile photo of MichaelMichael
    Participant
    @mirwin
    Join Date: 2015
    Post Count: 3

    Nice work mate!!!

    For those keen on the digital copy it can be bought here – http://shop.keymedia.com.au/your-investment-property-1/?sort=newest&page=2

    Cheers
    Mike

    Profile photo of D.T.D.T.
    Participant
    @dtraeger
    Join Date: 2014
    Post Count: 128

    Great result, well done :)

    D.T. | DT Property Management
    http://www.dtproperty.com.au
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Thanks for that link @mirwin – much appreciated !!

    Benny

    Profile photo of sampson_701sampson_701
    Participant
    @sampson_701
    Join Date: 2013
    Post Count: 20

    Any update WestnBlue on how things have been going?

    Love reading your story

    Profile photo of westnbluewestnblue
    Participant
    @westnblue
    Join Date: 2013
    Post Count: 35

    Was back here to get my profile pic and saw my old post.

    I still remember how excited & proud my mum was to see her son in a magazine – of course she showed everyone.

    Ive hit 50+ properties this year but more in brisbane & sydney suburbian areas – its very unlikley will buy any more in regional towns only beacause i dont need to anymore.

    In last 24 months I’ve been focusing on dual dwellings in the form of auxillary units which have been very good income & equity wise.

    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,749

    Might be a good time to try out commercial property. Growth is usually lower, but income is better and aggravation is, on the whole, better too.

    Well done on your success. I am proud of you, and for you.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of westnbluewestnblue
    Participant
    @westnblue
    Join Date: 2013
    Post Count: 35

    Thanks :)

    Always like what donald trump did when he was younger – Buy an old hotel and renovate, but lease to permanent tennants. Bottom floor offices and top residence.

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