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Starting Property Investing with just $9,000 – Glenda’s Story

Most people think they need a fortune to make a fortune in property investing.

Nothing could be farther than the truth.  Yes, you need a deposit and enough to pay for legals and whatever value adding you are going to do but that might be a smaller amount than you think.

On my home website Peter Spann, I give a lot more examples, but here is Glenda’s story.

A chance meeting

“Well, let me start at the beginning then.  I met our wealthy friend when he came into the pharmacy to get some medicine for his wife.  She had an ongoing illness and he would personally come in about once a fortnight to have a prescription filled.  ‘Far too important to leave to an assistant he would say.’  But I secretly suspect he liked getting out of the office.”

“We got to talking.  Of course I couldn’t help but notice the Rolls Royce and complimented him on it.  Then I somehow let it slip that while I liked working in the pharmacy I never felt financially secure.  I had worked for quite some time and I was doing well, but I knew that I’d not have enough to live from if ever I had to quite work, and I felt I had to go back to work far too soon after having my son.  I wanted to spend more time with him growing up but we needed to money.”

“He asked me if I would be interested in investing.  At first I thought he had something to sell, or had a hot tip, but I was intrigued and he seemed a nice enough fellow so I agreed to meet him here and have some lunch together.  I remember it distinctly.  We sat in this very booth, and I had to pay!”

We both laughed, because I had become quite accustomed to ‘shouting’ my wealthy friend lunch.  They were always modest bills but I began to wonder if that’s how he became rich, by never having to pay for anything.”

“I’m sure you know what we talked about,” she went on, “The Key to Wealth, The Key to Success, the Secrets of Money Magnetism.  I was determined to apply them but wasn’t really sure of how they applied to me.  I tried to discuss them with my husband and the people at work but they were all either not interested, thought it was a hoax, or just plain discouraging, but something told me that our wealthy friend was for real, so I persisted.”

I was amazed.  Before I started with the projects my wealthy friend had set me I had thought everybody wanted to be rich, really.  But I had soon discovered that most people weren’t prepared to make the (small) effort necessary to become rich, and so quickly dismissed those that tried so as not to prove themselves wrong.

“Something held me back though.  It was obvious to me that what our wealthy friend was saying made sense but somehow I just couldn’t get over the mental barrier of starting.  I had managed to save up about $9,000 from my pay and put it aside in a term deposit in the bank as my little ‘nest egg for a rainy day’.  I couldn’t see how it would get me far but at least I KNEW I had some money if I ever needed it.”

“Then one Saturday I got a call from our wealthy friend.  He wanted to know if I had anything on and if I didn’t would I like to go to an auction with him?  If nothing else I thought I’d at least get me first ride in a Rolls Royce.  Imagine my surprise when he pulled up in a daggy old ute!”

Now there was something I didn’t know.  I had only ever seen the Rolls Royce.

A REAL fixer uper!

“When we got to the house I was horrified.  Really, fixer upper was too nice a description but our wealthy friend was fascinated and went over everything with me saying over and over again how much money could be made on the house.  Personally I couldn’t see it.  All I could see was mess and peeling paint and smelly old carpet, but he seemed so intent I listened anyway.”

“Well, the auctioneer started and when the bidding was done our wealthy friend had bought the house for just under $80,000.  I had no idea if he had bought well or had been ripped off but he was obviously pleased with himself.”

“He drove me home and asked what I thought of the house and I didn’t know what to say, so I just said, “It seemed nice.”

“’It could have been yours,’ he said, ‘The money you have saved would have been more than enough as the deposit and any bank would have been happy to loan you the rest’.  I tried not to look horrified.”

“He just smiled and said nothing else.”

“Well, I didn’t see him for about 3 months and so I thought I had done something wrong at the auction so when he called and invited me to another auction I was quite surprised and took the invitation straight away.”

Transformation

“’I don’t usually do this’ he said as soon as I got in the car, ‘But I thought it might be the easiest way to illustrate my point.’  Well, imagine my surprise when we pulled up in front of the same house that he had bought 3 months before, except it wasn’t the same house, well not exactly…  It had been transformed!”

“Gone was the forest of weeds and noxious plants at the front – replaced by fresh turf and some bark surrounded trees.  A fresh coat of paint inside and out had the place sparkling.  The smelly old green shag pile was now gleaming polished wood floors and the kitchen and bathroom looked totally new but somehow looked familiar, but I didn’t have the time to suss out why before our wealthy friend dragged me out the front to where the auction was about to begin.”

“There were about 20 people gathered on the lawn and as the auctioneer took his first bid everybody must have heard me gasp as they all turned around and looked at me.  Embarrassed I covered my mouth but was still amazed that the FIRST bid was over $100,000.”

“Of course, our wealthy friend just stood there and smiled and hardly seemed impressed when the house finally sold for $127,000.”

“’Thought I’d get more,’ was all he had to say.  ‘That’s why I never do this normally.’  ‘Do what?’ I had to ask.

‘Sell,’ he said, ‘Anyway I hope it prove my point.’  ‘That you can make money with even $9,000.  Hard to believe we’re in the middle of a recession isn’t it?’  I didn’t even know what the word recession meant!”

“Well, did he prove his point?  I was so excited I immediately made up my mind to buy my first property.  It was not quite as tatty as the house our wealthy friend had bought but still didn’t need too much work, and I could buy it for $75,000.  When I had finished I asked the bank to revalue it.  They said it would be worth $110,000.  $35,000 in 3 months!  Well, I almost couldn’t believe it.”

9 Properties in 8 Years

“After that, it became like an addiction.  8 years later I own 9 properties and after paying all the bills each month I make 3 times more from the net rents than I do by working in the pharmacy – even since my promotion to manager!  And the most exciting thing is that while they have been paying for themselves they have also been growing in value.  If I take off my loans from what the properties are worth I’d have to be at least $900,000 in the clear.  I might even just be a millionaire.  AND, nobody apart from my husband and son know!  After all the negativity I decided I’d only tell people like you – people who have already decided they genuinely want to know.”

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Written by Peter Spann

Peter Spann – Film Maker | Director | Business Coach | Writer | Public Speaking Coach | Presenter | Investor.

© Copyright: 2017 Peter Spann – All rights reserved

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