Turn $1 into $1 million dollars in five years
Today I am going share my biggest Secret towards creating wealth. It is Leverage!
Leverege for me is turning $1 into $1 million dollars in five years!
There is three main vehicles you can use to create leverage:
For my own personal story, I started in Real Estate as it was the simplest process and offered me the greatest leverage available.
Leverage is using a small amount money to control a large asset. You do this by borrowing money and mortgaging your property, and using this borrowed money to invest in a larger asset.
Because of Real Estate’s history of stable income and capital growth , Real Estate is regarded as a prime security for loans which means banks will lend up to 90% of the value of your property.
Today I want to share a story of one of my Diamond clients which I have now worked with for over 8 years – The Le Family.
“In this story, I am going to show you how a little advice / nudge in the right direction created an extra $164,000 for the Le Family in the first year of working with me.”
The Le family then went on and became my Diamond client to gain my personalised investing advice. From this point onwards they were able to secure 9 properties in the period of 5 years and with it become financially free.
Now… Back to the Story……
When the Le family first came to me for consultation:
- The Le family had one house fully paid off worth $600,000.
Whilst completing their Income Tax return, the Le’s mentioned that they were looking to improve on their Property Portfolio and upgrade their Property to a new home in Mount Waverley. At the time they were very conservative investors whom saved everything they could, to pay off the current debt of their property.
After achieving this milestone, they were looking to borrow a similar amount as previously and work away for the next 15 years to pay off their new and improved investment.
It was like fire crackers going off in my head. I quickly turned to them and shared some details with them, which had transformed my life and would for them too.
The Le’s had a very strong foundation to quickly multiply their property portfolio. I will now share what we discussed and executed shortly after our meeting together.
The Le family (prior to our meeting) was determined to sell their current property and upgrade to a new property in Mt Waverley. This is what would have been the outcome after Year 1. They would sell their current property for $600,000 and buy the new property in Mt Waverley for $1 million.
Option 1: Sell Current home for $600,000 and buy new property in Mount Waverley for $1,000,000
Total Capital Received: $84,000
This would have still been an acceptable return. They would have to pay $16,000 for Interest payments (new loan of $400,000 at 4%) – but would have gained an increase of $100,000 with regards to Capital growth. This would lead to a Net Profit / Equity of $84,000.
Option 2 : Keep the house and buy 1st investment property RECOMMENDED
I advised the Le Family to keep their home and use the equity of $100,000 to purchase a $1 million dollar investment home using $100,000 Equity from the property they are currently residing in.
After Year 1 this property increased in value 10% or ($100,000). Interest was 4% so they had to make payment of $32,000. However they were able to rent the property for $40,000 over the course of the year.
The end result was +$8,000 Yield (profit = Rent – Interest Payments) and with a capital growth of $100,000, they made $108,000 dollars Net Profit.
However this was not all. The Le Family’s original property also increased in value 10% or ($60,000) which provided to them a total gain (equity) of $168,000. This made them an additional $84,000 per year through one simple tweak to their investment strategy!
Total Capital Received: Original Property = $60,000 + Investment Property (Mount Waverley) $108,000 = $168,000
As you can imagine, the Le Family were delighted with these results and I worked closely with them to acquire further investments properties ideal for their portfolio.
In Year 2, the Le’s were in a position to buy another $1 million property. Year 3 they bought two properties. Year 4 they purchased three and Year 5 – three properties.
In 5 years, with the compounding growth and leverage, they obtained financial independence.
When they came to me, they were middle income PAYG employees with one house.
Five Years later, they were multi-millionaires.
As I mentioned before:
‘IT’S HOW YOU USE YOUR MONEY – TO MAKE MONEY WORK FOR YOU’
You don’t need to have a high income to be wealthy. Wealth is created by how you use your money. The Le’s after Year 1 accumulated an extra $168,000 equity / income and by Year 2 – this had grown to $250,000 extra per year.
Note: There is not too many people receiving a wage of $250,000. This was just year 2!
Leverage is the key to wealth and Property is a fantastic vehicle.
The Real Estate Market has produced consistent results like this for well over 100 years.
However, there are a number of skills you need to acquire to ensure you take advantage of opportunities in the Real Estate Market.
Such things to look for when buying are:
1. Finding Motivated Sellers and taking Opportunity of these conditions
2. Develop a Strategic form of analysis in order to zero in on value properties
3. Negotiate effectively
4. Method on how you bought the property (ideally use as little of your money as possible)
With this knowledge and skills at your arsenal, you have the strategy to create your own financial freedom in 10 years or less (following our Lanopoly blueprint).
I will be going into more details later on how to find properties which are cash cow opportunities. AND….. How to find treasures which most of the public do not see.
However, if you would like to be like the Le’s and FAST TRACK your wealth NOW, I am having limiting openings for a fantastic opportunity. Do you share any of the following circumstances or feelings:
- Are you currently Struggling or nervous to take the next step with your property portfolio or Investing? Would you like that little extra support and advice to assure and motivate you to make that next step?
- Would you like me to be in your team, to personally assist you to help maximise your borrowing capacity (leverage) to create your Property Empire?
- Would you like some professional guidance to assist you in purchasing the ideal property to strengthen your portfolio and turn it into a Cash Cow.
- Would you like me to produce a personalised Blue Print for you to build your Property Empire – Step by Step.
- Are you Frustrated with where you are now and feel like you are like your wheels are turning but you are not moving anywhere?
How many properties or capital would you need to be able to relax just that little more? Not having to wake up each day to go to the same job and serve the same boss and smile – even if you have no energy or will to do so.
Leaving both you and your family’s welfare in the hands of your employer or if you own a business – your customers.
What would it feel like to be in a position like the Le family? They were a normal family earning a modest income. What would it be like to have 9 properties in the next 5 years or even just 5? What would that allow you to do?
I have created a very special opportunity for 10 people at a very modest price affordable to everyone. It will be strictly limited to 10 people only.
(Note: there is only 6 positions left – with the 4th member joining yesterday)
If you would like to learn further about this opportunity, please contact me:
email: lan@successaccountinggroup.com.au
Please use Subject line – Fast Track Millions Property Investor
I will then setup a call for us to discuss your goals, the package and next steps.
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
