In episode 9 of the Property Investing Journey, Mike speaks with Drew Evans, Director of Caifu Property, on his philosophy of finding opportunities for himself and his clients that are under market value, and the potential to add value by completing small developments.
As an alternative to the more traditional model of buying properties and leveraging the equity to build a portfolio, Drew’s approach allows him to have his properties working for him through positive cashflow and immediate equity, rather than being tied to negative cashflow and growth over time.
With the help of one of Mike’s metaphors, Mike and Drew discuss the level of risk inherent in any development option and how Drew helps his clients mitigate the downside exposure. Recognising that there are many ways to make money through property, Drew talks through some of the ways investors can manufacture equity and what to look out for in going down the development path.
This not-to-be-missed episode is invaluable listening for anyone looking to make their property journey that little bit more cashflow positive.
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Mike speaks with Drew Evans, Director of Caifu Property, on his philosophy of finding opportunities for himself and his clients that are under market value, and the potential to add value by completing small developments.
Recognising that there are many ways to make money through property, Drew talks through some of the ways investors can manufacture equity and what to look out for in going down the development path.
What we cover in this episode
- Finding opportunities under market value
- Making your property work for you
- Property as a freedom ticket
- Level of risk in small developments
- Ability to take profit off the table
- Drew’s top tips for development
“That’s one of the biggest mistakes that first time investors make, is they tie themselves further and further to their job, because their property portfolio costs them money to hold, whereas my portfolio pays me, I don’t have to pay it. “ Drew 1:52
“The whole concept is, if you’re going to spend time, effort and energy on a project , you want to make sure that it’s worth a lot more when it finishes, but also that you have the ability to take profit off the table“ Drew 3:15
“Anything you are adding value to a site is what I consider to be a development” Drew 4:24
“A lot of people don’t have the time, the skills, the experience, or the industry contacts to bring it all together, and that’s what myself and my team do“ Drew 10:50
“You should only ever sell for one of two reasons – number one, your current portfolio is preventing you from doing something else. Number two, the opportunity cost of holding your portfolio outweighs the opportunity cost of taking profit off the table“ Drew 11:20
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