Classic property buyer mistakes + Interest Only Investors may have to sell + Sellers to generate reports at listing

Classic property buyer mistakes + Interest Only Investors may have to sell + Sellers to generate reports at listing

Highlights from this week:

  • Sellers to supply building and pest reports.
  • Investors with interest only loans may be forced to sell
  • Classic property investor buyer mistakes
  • Mistakes made by owner occupier property buyers and how to avoid them
  • Remote renos – how to manage them

Transcript:

Classic property investor mistakes – Patrick Bright Part 1

Kevin:  This is a fascinating subject we’re going to pick up on now. We’ll do it in two parts, actually. Patrick Bright joins me from EPS Property Search.

Good day, Patrick. How are you doing?

Patrick:  Well, thanks, Kevin.

Kevin:  Good. I’ve asked you to tap in and spend some time thinking about the classic mistakes you see property buyers make, and you came back to me and said “Look, it’s in two categories. There are owner-occupiers and there are investors.” So, let’s do it in two parts.

Can we look at the investor side of it first, Patrick?

Patrick:  Absolutely, yes. Let’s go for it.

Kevin:  So, where would you start?

Patrick:  I think in no particular order, these are the top things that I see people do who make mistakes. Buying sight unseen is quite common; I hear that a lot. It’s not really a great idea to be doing that.

Kevin:  Yes, because people think now with the Internet you get so much information that you can do it at an arm’s length. You’d advise against that?

Patrick:  I do. I’ve actually seen people recommend that who you would probably consider professionals, who would be seen that way in the marketplace. But I don’t understand it. They’ve tried to convince me that it’s okay to do it with Google Maps and all the rest of it. But there’s nothing like visiting it yourself, getting a feel for the area, getting a feel for the suburb, the street, the neighbors, the apartment building, whatever you’re buying into. That’s really important, I feel.

And if not, get in a professional. If you’re paying a professional who you’re retaining to do that for you, that’s like your eyes and ears, so you can do that. But don’t be buying something sight unseen, certainly unless you’ve engaged a professional to do it for you.

Kevin:  Yes, get your feet on the ground. What’s the next one?

Patrick:  Buying because of celebrity endorsement. I see cricketers, ex-newsreaders, radio DJs, shock jocks –all that –  lend their voice and endorsement to marketeers and developers for a fee. They’re not property experts; they’re getting paid to provide that ad and that endorsement. If they were that good at property investment, they would be doing it full-time for a living.

When I’ve asked people “Why did you buy this property?” when we’ve looked at it, and they said “I felt comfortable buying it because of the endorsement.” It happens a lot, and these are things that I see.

Just to give you some context, I’ve been in real estate 25 years as a sales agent, an auctioneer, and I’ve been a buyer’s agent for the last 18. So, I’ve seen hundreds of people’s property portfolios. A lot of them come to me to help them buy another property or a property, so I’m always looking at what they’ve done in the past and then we’re assessing it. And this is where I see these things that have gone wrong in the past and investigated them.

Kevin:  So, get your feet on the ground and make your own decisions about these things. That’s pretty important.

Patrick:  You’ve got to do the research or engage an expert in the field. And research them to make sure they actually know their stuff, because there are people running around claiming that they know their stuff but they don’t always.

Buying a property off a brochure or buying off the plan is one that’s really fraught with danger. This is where I see a huge volume. Percentage-wise, it’s probably up there with half the mistakes.

It’s always been risky to buy off the plan. And I’ve done it myself, but I haven’t done it for a long time. And it really became a lot riskier since 2008, after the GFC, when laws were changed to allow foreign investment here. And that’s an increased number. Before, there was a restriction that 50% of a development must be sold locally and the other 50% could be sold to foreigners. That changed to being 100% could be sold to foreigners. But they’ll still sell locally too, but what that meant is they could actually ratchet the price up.

Because you have to keep in mind foreigners aren’t usually buying with their checkbook and calculator; they’re buying to get their money out of their country or to buy a piece of Australia. So just understand that.

The numbers pre-2008 GFC, anecdotally around 2% of new property was bought by foreigners. In 2016/17, we’re talking 24% to 40% depending on what eastern state capital city you’re buying in. It’s that big. It’s huge, and that has an influence on the market. There’s a rub-off there. So, the Sydney/Brisbane/Melbourne markets are the ones that are mostly bought up.

If you don’t believe me, just Google this and the stats are there, all reported by credible property journalists with sources such as the big banks. So, they track this stuff. That’s quite concerning.

Kevin:  That’s great, mate. What’s next?

Patrick:  Now, if you really want to increase your chances of buying a crappy deal off the plan, just buy one through a financial advisor or an accountant or a mortgage broker, because 99% of the properties that I’ve assessed for clients via any of those channels that they’ve purchased them were either over-priced or in a crappy location, or both. So, just understand that.

Running off hot tips is another one that people do. The real big money is always made by the developers and the land bankers before they create the market. They are the ones who are making the big coin. Don’t think you’re going to get a hot tip and run into an area that’s been written up in the media or “This is the hotspot” and make a buck.

You look at the top 100 that was talked about this year, then the top 100 that’s talked about the next year, and you’ll find that very few… In fact, a couple of years ago, I did exactly track this. There were 18 that were written up as top 100 the second year that were also in the year before. And then you track them a few years later, a majority of them were actually some of the worst performing markets. So, the big money is made early on, and you’re not likely to get into that.

Buying overseas, buying foreign properties. I see a lot of people, but I’ve not met one person who was not selling, promoting, or connected in some way with a property purchase in another country who was happy with the purchase five years later and would do it again.

Keep in mind if the deals are so good, the locals would be buying them. But because they’re not, they have to go and find people in another state or another country. Just keep this in mind. Have some perspective.

Kevin:  It gets back to what you spoke about right at the start of it, getting your feet on the ground and becoming familiar with those local areas, whether they’re in Australia or overseas, Patrick.

Patrick:  Yes, exactly. I’ve even had clients who said to me “Oh, we haven’t got rent for three months.” Where’s the property? It’s in America. I said “Right, do you know the laws there? How are you handling that? What’s your agent like?” “Oh, they’re really a bit sloppy getting back to me.” This is the stuff… Then you’re playing a currency exchange as well, you’re playing in a foreign country with foreign laws. It’s a whole different ballgame.

I remember a decade ago seeing a 60 Minutes report that found over 250,000 people lost money buying new or off-the-plan properties from marketing companies and developers just on the Gold Coast and Sunshine Coast alone. And five to ten years later, most were still in negative equity. So, this happens, and it happens a lot.

Kevin:  Yes. Very timely warning there. Patrick Bright is my guest. Patrick is from EPS Property Search. We’re going to come back after a very short break, and we’ll take you into the classic mistakes that Patrick has seen property buyers make when they’re buying an owner-occupied property.

Patrick, we’ll catch up again in just a moment, mate. Thanks.

Patrick:  Terrific.

 

Mistakes property buyers make – Patrick Bright Part 2

Kevin:  This is a fascinating subject we’re going to pick up on now. We’ll do it in two parts, actually. Patrick Bright joins me from EPS Property Search.

Good day, Patrick. How are you doing?

Patrick:  Well, thanks, Kevin.

Kevin:  Good. I’ve asked you to tap in and spend some time thinking about the classic mistakes you see property buyers make, and you came back to me and said “Look, it’s in two categories. There are owner-occupiers and there are investors.” So, let’s do it in two parts.

Can we look at the investor side of it first, Patrick?

Patrick:  Absolutely, yes. Let’s go for it.

Kevin:  So, where would you start?

Patrick:  I think in no particular order, these are the top things that I see people do who make mistakes. Buying sight unseen is quite common; I hear that a lot. It’s not really a great idea to be doing that.

Kevin:  Yes, because people think now with the Internet you get so much information that you can do it at an arm’s length. You’d advise against that?

Patrick:  I do. I’ve actually seen people recommend that who you would probably consider professionals, who would be seen that way in the marketplace. But I don’t understand it. They’ve tried to convince me that it’s okay to do it with Google Maps and all the rest of it. But there’s nothing like visiting it yourself, getting a feel for the area, getting a feel for the suburb, the street, the neighbors, the apartment building, whatever you’re buying into. That’s really important, I feel.

And if not, get in a professional. If you’re paying a professional who you’re retaining to do that for you, that’s like your eyes and ears, so you can do that. But don’t be buying something sight unseen, certainly unless you’ve engaged a professional to do it for you.

Kevin:  Yes, get your feet on the ground. What’s the next one?

Patrick:  Buying because of celebrity endorsement. I see cricketers, ex-newsreaders, radio DJs, shock jocks –all that –  lend their voice and endorsement to marketeers and developers for a fee. They’re not property experts; they’re getting paid to provide that ad and that endorsement. If they were that good at property investment, they would be doing it full-time for a living.

When I’ve asked people “Why did you buy this property?” when we’ve looked at it, and they said “I felt comfortable buying it because of the endorsement.” It happens a lot, and these are things that I see.

Just to give you some context, I’ve been in real estate 25 years as a sales agent, an auctioneer, and I’ve been a buyer’s agent for the last 18. So, I’ve seen hundreds of people’s property portfolios. A lot of them come to me to help them buy another property or a property, so I’m always looking at what they’ve done in the past and then we’re assessing it. And this is where I see these things that have gone wrong in the past and investigated them.

Kevin:  So, get your feet on the ground and make your own decisions about these things. That’s pretty important.

Patrick:  You’ve got to do the research or engage an expert in the field. And research them to make sure they actually know their stuff, because there are people running around claiming that they know their stuff but they don’t always.

Buying a property off a brochure or buying off the plan is one that’s really fraught with danger. This is where I see a huge volume. Percentage-wise, it’s probably up there with half the mistakes.

It’s always been risky to buy off the plan. And I’ve done it myself, but I haven’t done it for a long time. And it really became a lot riskier since 2008, after the GFC, when laws were changed to allow foreign investment here. And that’s an increased number. Before, there was a restriction that 50% of a development must be sold locally and the other 50% could be sold to foreigners. That changed to being 100% could be sold to foreigners. But they’ll still sell locally too, but what that meant is they could actually ratchet the price up.

Because you have to keep in mind foreigners aren’t usually buying with their checkbook and calculator; they’re buying to get their money out of their country or to buy a piece of Australia. So just understand that.

The numbers pre-2008 GFC, anecdotally around 2% of new property was bought by foreigners. In 2016/17, we’re talking 24% to 40% depending on what eastern state capital city you’re buying in. It’s that big. It’s huge, and that has an influence on the market. There’s a rub-off there. So, the Sydney/Brisbane/Melbourne markets are the ones that are mostly bought up.

If you don’t believe me, just Google this and the stats are there, all reported by credible property journalists with sources such as the big banks. So, they track this stuff. That’s quite concerning.

Kevin:  That’s great, mate. What’s next?

Patrick:  Now, if you really want to increase your chances of buying a crappy deal off the plan, just buy one through a financial advisor or an accountant or a mortgage broker, because 99% of the properties that I’ve assessed for clients via any of those channels that they’ve purchased them were either over-priced or in a crappy location, or both. So, just understand that.

Running off hot tips is another one that people do. The real big money is always made by the developers and the land bankers before they create the market. They are the ones who are making the big coin. Don’t think you’re going to get a hot tip and run into an area that’s been written up in the media or “This is the hotspot” and make a buck.

You look at the top 100 that was talked about this year, then the top 100 that’s talked about the next year, and you’ll find that very few… In fact, a couple of years ago, I did exactly track this. There were 18 that were written up as top 100 the second year that were also in the year before. And then you track them a few years later, a majority of them were actually some of the worst performing markets. So, the big money is made early on, and you’re not likely to get into that.

Buying overseas, buying foreign properties. I see a lot of people, but I’ve not met one person who was not selling, promoting, or connected in some way with a property purchase in another country who was happy with the purchase five years later and would do it again.

Keep in mind if the deals are so good, the locals would be buying them. But because they’re not, they have to go and find people in another state or another country. Just keep this in mind. Have some perspective.

Kevin:  It gets back to what you spoke about right at the start of it, getting your feet on the ground and becoming familiar with those local areas, whether they’re in Australia or overseas, Patrick.

Patrick:  Yes, exactly. I’ve even had clients who said to me “Oh, we haven’t got rent for three months.” Where’s the property? It’s in America. I said “Right, do you know the laws there? How are you handling that? What’s your agent like?” “Oh, they’re really a bit sloppy getting back to me.” This is the stuff… Then you’re playing a currency exchange as well, you’re playing in a foreign country with foreign laws. It’s a whole different ballgame.

I remember a decade ago seeing a 60 Minutes report that found over 250,000 people lost money buying new or off-the-plan properties from marketing companies and developers just on the Gold Coast and Sunshine Coast alone. And five to ten years later, most were still in negative equity. So, this happens, and it happens a lot.

Kevin:  Yes. Very timely warning there. Patrick Bright is my guest. Patrick is from EPS Property Search. We’re going to come back after a very short break, and we’ll take you into the classic mistakes that Patrick has seen property buyers make when they’re buying an owner-occupied property.

Patrick, we’ll catch up again in just a moment, mate. Thanks.

Patrick:  Terrific.

 

IO Investors forced to sell – Miriam Sandkuhler

Kevin:  APRA are continuing to tighten some of the rules around borrowing money, particularly for investors. We’ve seen recently moves by APRA to get the banks to reduce their books in terms of interest-only loans. And many, many loans, of course, are interest-only. So, what does that mean? What’s going to happen to the landscape? Miriam Sandkuhler from Property Mavens has been looking at this, and she joins me.

Good day, Miriam. How are you doing?

Miriam:  I’m good, Kevin. How are you?

Kevin:  Good. Give me the stats behind this, because I know you’re on top of this. How is the landscape changing?

Miriam:  A while back, there was a senate committee hearing, and they discovered that Westpac at the time had 50% of their loans made up of interest-only loans on their books. This resulted in APRA coming back to the industry saying “Right, you’ve got to reduce it.” I think most lenders now have to have not more than 30% loans on their books that are interest-only.

So, what’s going to happen as a result – and this recently happened to me – is that people who are coming up to the end of their interest-only period will be either forced to convert to principal and interest, which means there’s an additional financial outlay on them, or they’ll have to go re-finance elsewhere.

But where they can’t re-finance, they’re going to have to determine whether or not they can carry that extra repayment that they’re going to have to cash flow

Kevin:  Yes, it could also lead to cocktails, as well, couldn’t it – people having to get a couple of loans just to effectively tie them over?

Miriam:  That’s right. And whether or not they have the capacity to do that and the lenders will let them do it is a whole other thing. But worse than that, they’ll be owner-occupiers in this position, and particularly with predatory lending a number of years ago, there’ll be people back then who wouldn’t qualify for a loan today, and they probably won’t be able to service any extra repayments. So, they actually may in fact be forced to sell their home, as may investors who might have multiple negatively geared properties in their portfolio where they have to do the same.

Kevin:  Yes, the last thing we’d want to see is a glut of those sorts of properties on the market. It’s not going to do much for market conditions. I’m actually surprised by those figures, Miriam, when you talk about Westpac and their bank being 50% made up of interest-only loans. Is that all borrowings, or is that investor only?

Miriam:  No, that was their whole lending portfolio at the time.

Kevin:  That’s staggering, isn’t it – that that many people would be thinking to do interest-only loans?

Miriam:  Well, I think for a lot of people and the lending industry, it was easy to convince people to take on the debt. But as a result, APRA is now forcing the banks to reduce the number and value of interest-only loans on their books.

Yes, potentially, it could trigger a U.S.-style housing meltdown. Not in the terms of people handing in their keys and walking away, because they can’t do that in this country. But a lot of people coming up going “I can’t hold this property, I have to sell it.”

And again, someone who doesn’t have a balanced portfolio – let’s say they’ve only got negatively geared properties, so they don’t have a mixture of negatively geared and positively geared – if they have to start offloading properties, they want to look at that now, sooner rather than later, because they don’t want to do it when there’s a glut of the same property type on the market.

And as you and I know, things like house-and-land packages and apartments in some instances, there’s already a glut. So, the last thing they want to do is have a distress sale among the glut of the same property type that they need to get rid of.

Kevin:  I don’t know whether you can answer this question, Miriam, but would the banks be in a position where they could actually force someone to move from interest-only to principal and interest if they’re mid-way through their loan term? Or does that have to be at the end of the loan term?

Miriam:  My understanding is it needs to wait for the interest-only period to conclude, and then you either pay the extra P&I payments or you try and re-finance elsewhere. So, either of those scenarios will take place.

Kevin:  Interesting. We’ll watch what happens with this. Miriam, thank you so much for your time. Miriam Sandkuhler is from Property Mavens. Thanks, Miriam.

Miriam:  You’re welcome, Kevin.

 

Sellers required to supply reports – Andrew Mackie-Smith

Kevin:  I don’t know how many times I’ve been approached by a purchaser who’s had to go to an auction only to find that they’re outbid at the auction and then all the money they’d spent on building and pest inspections is effectively just wasted. And it can cost several hundred dollars. It’s a very frustrating situation.

There is a solution to this, and it’s a matter of a lot of governments around Australia coming to the table to talk about mandatory building and pest inspection reports generated by the seller at the point of listing. This has been a major drive for a company called BuildingPro and its two owners, Andrew Mackie-Smith and Andrew’s wife, Trish. Andrew joins me to talk about this.

Andrew, it seems to me to be a very logical solution to a very difficult situation for a lot of buyers, and that is to have this building and pest inspection done upfront. Is it being done anywhere else in Australia at this point in time?

Andrew:  Yes, Kevin. In fact, it is. In the ACT and Canberra, it’s been around for the last 15 years. So, since 2003, they’ve enjoyed sellers providing building and pest reports as well as other reports, too.

Kevin:  I’ve spoken to buyers and sellers, and I’ve spoken to agents in the ACT who tell me that it works extremely well. There’s no opposition to it; it just seems to make a lot of sense. The question that I ask, though, Andrew, is can a buyer rely on a report that’s been generated by a seller?

Andrew:  If you’re in the ACT, yes, you can. The legislation makes that clear, and you can rely on it. In fact, how it works is the seller commissions a suite of reports including building, pest, energy, compliance, and asbestos reports. They provide those to potential purchasers, and they get that free of charge. And then the eventual purchaser will have that report and those reports transferred into their name. They can rely upon them, and that’s enshrined in the law.

So, it’s very clear, and there are heavy penalties for sellers not disclosing, and there are also penalties for those consultants. And there’s a clear path for them to be responsible.

Whereas in other states if a seller provides a report, there’s a big question mark. In fact, if you read the fine print on those reports, Kevin, it clearly says “A third party cannot rely on this report.”

Only in Canberra can you rely on it, and that’s why I think the law needs to be changed to make this clearer.

Kevin:  Now, that point you made about “third parties can’t rely on the information in this report,” is that done to protect the building inspector from having people pass it on, or is that a legitimate statement of reliability – or lack of reliability?

Andrew:  I’m no lawyer, but what I understand is that there needs to be consideration given under the law. In other words, if you provide a service to someone, the consideration is normally payment in return of that professional service.

Now, if third parties are relying on that report, they don’t have a legal arrangement with the building inspector because they’re a third party and the inspector hasn’t provided the report to them and they haven’t accepted the terms and conditions and the scope of that agreement. In other words, often a third party will get a report and they don’t know the limitations that the inspector might have laid out in an inspection agreement.

Going back a step, when you’re a building inspector, you tell the client through an agreement “These are the things I’m going to inspect, and these are the things I’m not going to cover in the inspection.” So, a client would know those things going into it, but a third party might not have those conditions and wouldn’t know.

So, there is a reason beyond just covering the building inspector against litigation. It’s more than that.

Kevin:  This seems like a very simple and very logical solution to, as I said at the start, a difficult situation for buyers. But it does actually in itself represent a fairly seismic shift in the law, because at present, it’s very much buyer beware. But this is almost moving the onus from the buyer back to the seller, isn’t it?

Andrew:  Yes, Kevin, and I think there’s a general move worldwide towards more seller disclosure. In fact, 30 states of the USA have strict seller disclosure laws, and in London. they have seller disclosure. And as we’ve said, it’s been in Canberra for 15 years. So, it’s working elsewhere, and progressive places are taking this up.

The buyer beware law – or caveat emptor – has been around since the 15th century, and it’s quite archaic, made for the wealthy landowners to protect their interests. But now you have people using the Internet to search for properties and information, they’re hungry for more information. They want to know the condition, they want to know about things like flood risks, they want to know if there’s asbestos, are there any unauthorized business works on the property, are there significant pest infestations or subsidence?

And why shouldn’t they get to know that? Houses are very expensive in Australia; it’s only fair that people get this information. And sellers who are recognizing this and taking it upon themselves to provide disclosure are actually finding something quite interesting – that they’re benefitting by getting a better sales price.

Now, that’s anecdotal, but that’s my experience as a building consultant in this field for the last 15 years.

Kevin:  I wish you every success with it. I know that it’s going to take a lot of work to do it, but it certainly does make a lot of sense, as I said at the start.

Andrew Mackie-Smith from BuildingPro, thank you so much for your time.

Andrew:  Thanks, Kevin.

 

Managaing a remote renovation – Nhan Nguyen

Kevin:  I’m going to answer a question that came in now from Sharon Pattison. [? 00:06] Sharon, thank you very much for your question. Because we’ve chosen your question, you are going to receive a 12-month subscription to Your Investment Property Magazine. We’ll get you some details about that, Sharon.

I’m going to direct the question to Nhan Nguyen. Firstly, hello, Nhan. How are you?

Nhan:  G’day, Kevin. How are you, mate?

Kevin:  Well, thank you. Nhan is from advancedpropertystrategies.com, and I’ve sent the e-mail through to Nhan so I’ll quickly read it out. “Hi, Kevin. I listen to your weekly podcast which his very informative. Thank you. I live in Sydney and I’m thinking of buying in Queensland in a 5-10-kilometer ring around Brisbane when the banks will lend me more money. Can I discuss in one of your upcoming shows? So I buy an investment property interstate through a property buyer, but in a few years – for example five years – it needs a reno. What’s the best way to go about this, being that I’m interstate and I can’t take a lot of time off work? Regards, Sharon.”

I think I interpreted that one correctly. Nhan, you’ve received this one. Have you had time to think about that?

Nhan:  Yes, absolutely. I think some suggestions there is if you’re looking at a property, definitely if you’re looking at potentially renovations down the track, there are two general types of renovations. We talk about cosmetic which is kind of like the superficial one, versus a structural renovation. I think one of her concerns is definitely if it’s a bigger renovation, whether you’re lifting it, sliding it, building in walls – which is structural – I think that could be the one that she should definitely avoid. She should definitely look at a cosmetic renovation, and that would be where we’d be looking at. Something that’s less than $5-10,000 that doesn’t need a lot of supervision. But at the same time, I definitely think she should supervise some of it.

Kevin:  She’s talking there about using a property buyer. I guess she’s referring there to a buyer’s agent.

Nhan:  Yes. A buyer’s agent can potentially help you there. I think it does give you some leverage there, but I do also believe that if you get something like a buyer’s agent and potentially renovation and add value, [? 02:20] definitely check it yourself. Now, if you’re in Sydney, flights to Brisbane from Sydney are relatively cheap. But yes, I think a cosmetic reno is definitely the way because you’re time [02:32 inaudible] so to speak, that’s why you’re getting the property buyer’s agent in as well as potentially renovating it using other people.

Kevin:  Yes. Doing a renovation at arm’s length can be quite difficult unless you’ve to some pretty trusted tradies on the ground.

Nhan:  I agree, and I think that’s part of why if you do a cosmetic renovation, maybe an idea could be to come up on a Saturday, make a whole set of appointments beforehand, meet all the tradespeople on site and get quotes from them, but also get references from them. I’ve got clients who are living in ACT at the moment. They’ve got a renovation in Ipswich, and one of the clients [03:12 inaudible] and she basically organized a lot of that remotely, but before she goes ahead with it all, she’s definitely getting them to come meet her face-to-face, talk her through the scope of works.

It’s just being organized. I think it’s being organized and making sure that you inspect people’s work. And depending on how big the renovation is, you definitely need to inspect the people’s work before you pay them. Another opportunity is maybe getting the property buyer’s advocate there to do some supervision for you as well. That could be another way you could leverage that opportunity.

Kevin:  Are there any opportunities to get project managers on the ground who you can employ to do this? Just in the event that Sharon can’t fly all that often.

Nhan:  Absolutely. I think builders are generally good at organizing teams. Depending on the scope of work, you could get a builder to sign a build contract with you and then he oversees the whole project. And then the agreement would be that they regularly send you photos of the works done. But some people that advocate just pawn [? 04:21] it off to somebody else and hopefully it will work out, should be alright, mate. But I know anything where there are tradespeople involved, there are multiple moving parts, there are going to be definitely balls dropped unless you’re there regularly. Even if it’s one weekend every week for a month, it’ll allow you to keep on top of it. Because when people know they’re being checked or inspected, they will perform better. They’ll actually turn up. And some people just try to yank your chain by basically invoicing when they haven’t done the work. That’ll stop that.

Kevin:  It’s interesting to hear you talk, because the lesson I’m taking away from this is that you can delegate, but you should never abdicate that responsibility. Because you only really get one shot at it, don’t you?

Nhan:  Exactly. And I think to expect, you have to inspect. And we’re all control freaks at some point in our MO, so I do believe we can go on to a lot of sites, Facebook chats and get resources from people. Also if you’ve got friends in Brisbane for example who are in the building game or the property game, it just takes a few phone calls and you can easily get some referrals there, or some of the meetups. There are groups there, renovating meetups or property meetups, and all it takes is one good person to refer you. And then from that good tradesperson, you can get them to refer you their friends in terms of one painter will know a good electrician, a good plumber. They generally associate in tight-knit circles. If they want to work with each other, they refer each other business.

Kevin:  Yes. Great talking to you. Nhan Nguyen is from advancedpropertystrategists.com. A good man to talk to, very knowledgeable. Thank you for your time, mate.

Nhan:  Anytime, buddy. Cheers.

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Kevin Turner
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