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Welcome to Creating Generational Wealth Through Property Investment with Gordon Green. Join Gordon Green, a highly successful property investment strategist, as he shares his wealth of knowledge and proven strategies that have empowered thousands of everyday Aussies to build a secure financial future through property investment. In each episode, Gordon delves into the secrets of property investment success, offering practical advice and expert insights. If you're keen to explore property investment, Gordon also works one-on-one with clients to craft bespoke property deals tailored to their unique needs. Tune in and start your journey to financial freedom today.
 Welcome back to creating generational wealth through property investment. I'm your host, Adam Bell. And in today's episode, Gordon Green will share his seven ways to make money through property investing. We're going to cover refurbishing, renovating, rezoning, repurposing, redeveloping, rebuilding, And refinancing
welcome to creating generational wealth through property investment with Gordon Green. Gordon is a highly successful property investment strategist. And in each episode, he shares his knowledge and strategies that have helped thousands of everyday Aussies build a secure financial future through property investment.
Remember Gordon works one on one with all of his clients. So if a property investment is something you're keen to explore, then Gordon would love. I love to put a bespoke property deal together just for you.
Gordon, welcome to the podcast. Hi, Adam. How are you? I'm good, mate. I'm good. So, seven ways, all with the letter R. It's just an easy way to remember them, Adam. Is it? Okay, let's start breaking them down, because a few of them I know and think I understand, a few I don't. So, let's start with refurbishing and the difference between refurbishing and renovating, because I looked at these two thinking They're pretty much the same thing, aren't they?
Refurbishing is what I call a quick coat of liquid dressing. Okay. It's just maybe new benchtops in the kitchen, but not all new cabinet work. Right. Coat of paint, floor coverings, take the carpets out and put in some Synthetic timber flooring or even genuine timber, in the bathrooms instead of gutting them Just give the tiles a quick coat of paint and dress them up and freshen them up Maybe pull the shower screens out and put a screen in or if there's no screen fit a shower screen give the roof a repaint and tidy the yards up a bit
Okay, so it is literally just window dressing but that can make a big difference, isn't it?
Especially in an old older place or something that's been rented for a long time. We
just Did a place for my brother at Logan Lee. It's been rented for about 20 years and the tenants haven't been the best tenant. Cause my brother makes a mistake of trying to manage it himself. And it's like, why would you, but he's a computer geek.
So it's pretty hard to understand him when it comes to property. But all we did was new door fronts, new bench tops, ripped the carpet out and put a bit of cheap carpet back down and gave it a quick repaint through and gave the bathroom a spray over so that we got rid of the brown and yellow tiles and.
Made them nice crystal white. Sure. And it looks nice and fresh. And mowed the yards and trimmed out a bit of shrubbery that was a bit overgrown. And gave a skim coat over the driveway so that it looked fresh and new. Yep. And the first guy that looked at it bought it for a premium. Wow. And I think we spent about less than 10 grand on it.
Wow.
Fantastic. Had we done a full renovation it would have been 40 or 50 grand.
But probably wouldn't have got nearly as, as much benefit from that. Wouldn't have got
any more money. Now I'm not saying that it'll last 100 years again, but I'm saying the guy who bought it will have at least probably 10 years maintenance free, which is a good start.
Absolutely.
Okay, so renovating then, I'm guessing then that just means it's not all the window dressing stuff, but more structural.
More, more in depth. Sure. If you do a proper renovation job, you're looking at the drainage, you're looking at the plumbing, you're looking at the electrical, you're looking at all the appliances, Often it's adding a bathroom or adding an extra room.
, you might convert the double garage into a family room or a rumpus room and put a carport out the front. Yep. It's generally a fair bit of work in the yards to tidy them up and Sure. Make them look
good. Yep. Building work rather than just building work. Touchups
and I might add. Needs a license builder to do most times.
Yep. And it's where people go wrong. They try and do it themself and then the people that buy it bring a building inspector in the building inspector looks at it and goes, oh, I noticed that's a new carport. Have you got the paperwork? And when you haven't got it, that's just an opportunity for the buyer to renegotiate the deal, right?
So, that's the error I see a lot of people make, they do renovations that aren't legal and don't have the supporting paperwork when it goes to sell.
I love that with your experience Gordon, having done this for almost 60 years, been in the game, that you know everything, you know that the mistakes that people make and that the things to avoid.
That's probably because I've made the mistakes myself. And, yeah. But you can help
your clients make sure that they, they avoid these at all costs. Yeah,
and because at the end of the day, that sort of mistake can be horrendously expensive. And it's one of the reasons I'm not doing renovations right now, is because the cost of doing it legally.
It's quite, it's out of the, it just doesn't leave any money. And years ago, when I bought and sold, your commission might be a couple of grand, the stamp duty would be a couple of grand, you get in and out. Now your commission is 20, 25 grand. Yep. It's not the rates have gone up, it's just the value of the property's gone up, and stamp duty in and out, and legals and everything else.
It costs a lot of money to. Yeah. Turn a home around now. Absolutely. Absolutely.
So
talk
to me about rezoning then. What, does that mean? How do you, how do you make a return on rezoning?
You might take a property that's zoned for residential. and get it rezoned to commercial or industrial or retail, or you might take something that's commercial and rezone it to retail.
You might take something that's industrial and rezone it to commercial or retail. Either way, when you do that, the value of the land goes up because you can get more dollars for it. Sure. You might take a paddock that's rural and rezone subdivision or storage sheds or all sorts of things that you can do with it.
Personally, I've done over 27 different types of property deals over the years, and they're all pretty unique and they're all different. And sometimes you've got to get a bit creative around what you're doing. Sure. But often it's, you know, It's not so much what I know, it's who I know that I can go to get the right advice.
Sure. Because you can't know it all, there's no way to know. The rules change too often. Governments just change the rules every now and then, councils exception. You might go to one council like Moreton Shire and it's one set of rules, and you go to Ipswich and it's another set of rules. Yep. Unless you have people that can point you in the right way.
I'm no better than anybody else. It's just I've got those connections. Yeah.
The experience and the connections and knowing who to talk to when and to get the right advice, which again comes back to, you know what we're talking about in these podcasts, that the value that you've got to your clients, it's looking at what they do, what they have, where they're going, what their goals are, and with your knowledge across all of it, you can then say, well, this would be the right way to go and I know these people who can help and
often.
It's a matter of asking the right question, because I could introduce some of my clients to the people I deal with, but unless they know to ask them the right question, they don't get the right response. Sure. So it's about understanding what you're trying to achieve, and what they need to understand to make that happen.
Sure. So. Okay. What's, what's repurposing? repurposing You might take an ordinary three bedroom house and add a couple of bathrooms to it and turn it into a share Accommodation or co living you might buy a house on a main road That's a bit grotty and a bit cheap and turn it into a medical center or okay So this often
can go hand in hand with rezoning then I imagine
Yes, yeah, often.
It's actually changing the use of the property.
Right.
And sometimes you can do it without a rezone. It might be sitting in the right zone to do it. It just has been used for a house for 20 years and you can turn it into something else. I used to do it with small strip shops. You'd take a small strip shop, get the tenants out, cut it out, and put in a combination of tenants that worked together.
Yep. That weren't a nightmare. If you get it right, there's good money in it. Particularly if they set the shops up where you fit them out and the people lease the shops as they're fully fitted out. Butchery or hot bread shop or a fruit shop or convenience store or whatever.
The money can make.
How does this, differ then to redeveloping, which is the next one of our seven, seven Rs here?
Okay. Redeveloping is when you actually take a property, get it rezoned and redeveloped. Totally. Now, sometimes it might be just that you've got a paddock, five acre block somewhere. And you turn it into 40 or 50 residential sites.
There's a lot of similarities between the things, but there is a distinction between what you're doing. When you're redeveloping, you're actually changing the use of what's there. And normally wanting to get a lot more out of it, right? Back in the 2002 2003, we were buying the three storey walk ups and turning them from one and a half bedrooms into two double bedrooms with en suites and 15 square metre balconies.
So, serious work, serious concrete cutting, new roofs, a few things like that. That was a total redevelopment of that site. Sure. Sometimes you might take some of the other ones we've done. A property that was just a house on a good residential block, remove the house off it and build it up into units so that you've redeveloped that site totally into, instead of a house you've got six or eight apartments on there.
Depends what it is. Sure. And I make distinctions in them purely so that the client understands the process we're going through. Because for redevelopment there'll be a different process to rezoning. Okay. Sounds similar. And it's a similar thing, but there's distinct differences.
Well how does that then differ to, all of these seem to have a bit of a crossover.
What is rebuilding then compared to redeveloping? Okay,
we've got one we're looking at down at Sorrento now, and he's got three options. He can sell it like it is, probably bring a couple of million because it's in a good spot. 40 year old house that is really past it. Yep. He could spend a mil on renovations, and he might get an extra half a million profit.
Sure. Or he can just bulldoze the house and stop mucking around and do a full rebuild. And if he does that, I think of having somebody else have a look at it that knows the retail values in those areas, because I'm not a retail guy. So I'm having somebody else have a look at it to say, what is this going to be worth if we spend 1.
5 million on it now against what it's worth now? to make sure that there's a, it's profitable for him to do that. Yep. But that to me is, it's not a rezoning, it's not a redevelopment, it's just a straight knock down and rebuild, replace what was there with something newer that's there, but the same zoning, the same type of property.
Yep. And then he's got a choice as to whether he moves back in and lives there. Or whether he just sells it, or whether he sells the money and takes it and runs. Your
experience and your knowledge in all of these areas blows me away, Gordon. I think this is what, we're trying to get across in this podcast to anyone listening that, no matter where you're at and, what you've got, whether you've got a property, you don't, whether, you sit down, you talk to them one on one, you do a, you're a consultant as, as well as being able to do it, do everything beyond once the deal.
Starts to happen, but work out where they're at. what they need, what their goals are, and whatever they have, you can use any one of these seven, to get a deal together that is going to give them their best return based on their needs and their goals and what they have, which is absolutely fantastic.
It's not
about the most money. It's about the optimum use of what they've got. And it's really making the best of everything that's out there. Yeah, that doesn't mean you're going to make more money doing that. Yeah. But it's the optimum return on your money. How much money do I have to outlay and what timeframe is that tied up for as to what I'm getting back?
Cause it's all about return on investment. It's not about yields. I hear people talk about yields on investment property and go amateur because if they really understood property, all they're focused on is the return on the investment. And my old bank manager, when I was 23, he was 62. He used to say, even that's not right.
What you've really got to. Focus on as a return of your money, not the return on your money. And he was so right.
All right. Number seven in our, seven ways to make money from property investing is refinancing.
Yeah. It's, a lot of people have a property and they decide to sell it and buy something else.
And often I think about 80 percent of the time they would be better off just refinancing and keeping the property and it mightn't free up quite as much cash. But mostly it'll free up pretty well the same amount of cash. If you've got to pay legals and stamp duty and LMI insurance and a whole lot of other things on the new property, if you just refinance it, take the money back out of it and use that money elsewhere.
And that way you've got two properties going up in value, not one. I'm not much of a believer in sell it. I think once you own it, redevelop it, repurpose it, change it or do something with it, but keep the thing. So when you're buying it, it's important to understand where you're buying, Because you can always change what's there.
You can't change where it is. Sure. And sometimes people, when they refinance, they're looking for the cheapest interest rate, and that's not necessarily a good thing. Adam looked at me a bit strangely.
So explain this to me. I would have thought the lowest rate would be the best.
Well, it depends what fees and charges go on and how much effort there is, what percentage of the loan they'll give you. Sure. It might be better off to pay one percent more and get a 90 percent loan than only get a 70 percent loan where you haven't got enough money to go. I love this
Gordon, your experience, you know how to look at things from multiple angles, from a helicopter view that most people don't.
And I'm not a finance broker anymore. I understand the process, and I understand what needs to work for a client. With the duplexes I often use development funding, which means the client only needs the borrowing capacity to buy the land. Right. He doesn't need the million dollars to build the thing, because that's all taken care of in the development funding.
Sure. So, it opens the door to a lot more people. I've just married up with
And we're now, because we've changed the way he's building, I said he had a new factory and it'll be open next month, but we can actually put granny flats in the backyard without a crane now, which has opened up a whole new marketplace. Because once upon a time, you either had to have enough access to the backyard or put it in the front yard, which looks pretty ugly.
Yeah. Or put it on the driveway or something. Whereas because of the change in manufacturing, we can now put them in the backyard. It's just a little change, but. Massive change. So 000 outlay, which is offered equity out of the house, they can pull an extra four or 500 a week rent
just by putting that granny flat in so many options.
We've now been through these seven and I'm sure you've made money yourself or for your clients using all of them, but I also gather that the timing and the market has to be right, for any one and that one or two might be far more beneficial at any right time. So. With that in mind, which one of these is your go to at the minute, to be getting the best returns?
Well, it depends on the client and what their needs are. Of course. If the guy has already got the house at Sorrento, I'd be doing him a disservice to advise, or recommend what I normally would do. He's got the money to repurpose it or redevelop it or rebuild it. So it's a matter of what he wants to do and what is more comfortable.
And also what's more financially viable for him. And that's why I've had somebody else have a look at it because I don't know what the retail value of that bill will be. Whereas the person I've spoken to does nothing but sell three to 4 million properties in that area. He knows what it's going to be worth if I spend a million dollars on it.
So I get good advice to the client, not half baked what I think it might be worth. Absolutely. At the present time, I'm having more fun with duplexes than anything else. Okay. The challenge is finding them. Yep. But the returns have been enormous on a 850, 000 outlay, which was about 250, 000 from the client.
The rest was borrowed money. She'll return about 200, 000 net profit in 12 months. Wow. Wow. The one down at Coffs Harbour was 1. 4 million, which was about a 400, maybe 450 outlay from the client using existing equity in a property. So it wasn't even cash. You just had to borrow the money. Yep. That's returning, it's cost us 1.
4 million and we've got both on the market for 985 at the present time, which it will achieve. And because of the nature of what it is, he's not going to keep one, he's going to sell both.
Right.
Which will create a little bit of a tax problem, but that's up to his accountant to work out. Sure, yep. But, we look at it and say, should he keep one on the return on it for rent is not enough to justify the amount of money that's tied up.
Sure. So he's better off to roll both out, take his profit and go and do it again. Sure. Well, look,
this is something I'd really like to delve into a bit deeper. Cause I know you've done a fair few of these, recently, and, it is a fantastic way to get a great return really quickly. So I think for anyone listening now who wants to know more about this, But what I'm dubbing, Gordon's duplex deal, we will be doing a future full episode where we talk that through in, in great detail because, if we can find that, that the spot is what I'm understanding, Gordon, then, this is an absolute winner in the present market conditions.
Yeah.
How long it's going to be there for is another question because a month ago I sort of sourced out 11 blocks of land. Right.
Well look, if you're out there listening and you can see here just how much Gordon knows about all the types of ways you can you can put a property deal together using these seven ways to make money.
Property investing and, he knows the key people that can make this happen and, looks after you from start to finish. So look, thanks for tuning in. If you're ready to apply these strategies to, to your investment, reach out to Gordon for a personalized consultation in our outro this afternoon, you will hear, Gordon's got his number there for you to contact him on, his website as well.
Please do reach out Gordon's more than happy to have a chat and find out where you're at and what he could do for you. So join us next time for more insights and tips on creating generational wealth. And until then invest wisely and take care.
Thanks Adam.