Adding value to a property through renovations with Todd Sloan PART 1 – Ep.40

For the latest episode of this bonus series of the property investing journey, Mike is joined by Todd Sloan, experienced real estate agent, property renovator and investor, author of Australia’s Home Buying Guide and host of the popular Pizza and Property podcast. Together Mike and Todd delve into the tips and tricks of renovating for profit and maximising the return on your investment portfolio.

By his own admission, Todd turned to property renovation to supplement his salary at a young age. He sought out rural properties where he could add value without taking on too much debt, and undertook much of the work himself. He still abides by this philosophy and in this conversation shares the valuable insights he got from a valuer early on which taught him to think about his renovations from a valuation perspective.

Mike and Todd talk through the perils of embarking on property renovations with a partner, noting that the dynamics of relationships you might see on television shows might not always make for the best outcomes in the real world. They explore the implications of location when it comes to completing the work yourself versus outsourcing and consider the argument for house flipping compared to buy and hold.

This episode lends a practical perspective to the task of renovating for profit, providing clear examples and an overview of financial returns that Todd has experienced along his journey. This conversation is a must listen for anyone contemplating the renovation route, or merely looking to add some extra value to their portfolio.

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For the latest episode of this bonus series of the property investing journey, Mike is joined by Todd Sloan, experienced real estate agent, property renovator and investor, author of Australia’s Home Buying Guide and host of the popular Pizza and Property podcast. Together Mike and Todd delve into the tips and tricks of renovating for profit and maximising the return on your investment portfolio.

• Buying rural and renovating out of necessity
• Looking at comparables in the market
• Thinking about the valuation
• Is it worth outsourcing?
• Flip or hold?
• The magic of compounding
• The importance of clear communication if you have a renovation partner
• Todd’s top tips for renovators looking for best bang for buck

“72% of property investors only ever get the one property” Mike 6:18

“It’s the comparables. It’s always about looking for actual recent sales because I want to look at this from the get go as how is a valuer going to look at this?“ Todd 10:17

“If I’m going to keep it I wanted to make those costs as low as possible because again then I could pull out as much equity as I could because my service-ability wasn’t amazing to then by the next one” Todd 12:30

“It’s that miracle of compounding, and it comes back, for me, to that whole, I’ve never met one person that said ‘I’m so disappointed I kept that house for thirty years. Not one. No-one’s ever said it…but I’ve met a lot of people that would say ‘geez, imagine if we’d kept that one’ “ Todd 15:29

“It’s when you can’t stay solvent, that’s when people run into problems so I think if I could hold it, that’s where the whole positive cashflow thing really just clicked with me.“ Todd 16:18

“The way that I describe what I’m after to agents is, the worse it smells, the more I’m interested” Todd 26:26

Links mentioned

https://gearedforgrowth.com.au/?s=todd+sloan

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