Subscribe
Share
Share
Embed
🎧 Real deals, real strategies, real results. Learn how to find, fund, and operate profitable property plays from someone who’s actually done it.
Hosted by Andrew Wright, principal of Professionals Southport and a commercial investor who rebuilt after losing a ~$15M portfolio during the GFC, this podcast gives you a straight-talking look at what it really takes to build wealth through property.
Each episode delivers practical frameworks, real deal breakdowns, and honest conversations with high-performing investors and operators across residential and commercial.
But it’s bigger than the episodes. The goal is to build a community of like-minded investors who share stories, swap insights, help each other grow and maybe even do deals together.
🔗 Join the community & learn more - leave your email at: www.andrewwrightproperty.com.au
📍 Connect with Andrew: hello@andrewwrightproperty.com.au
Hi, I'm Andrew Wright, principal of Professional Southport, and this is the Andrew Wright Property Podcast. I've built a multi-million dollar property portfolio delivering a seven figure annual rental income, and led my real estate team through thousands of sale and lease transactions in each episode. I share real deals and strategies that will help you find, fund and operate profitable property deals.
The aim of this show is to provide education and build a community of like-minded investors who can collaborate, share insights, and help each other in each other's journeys. You can make excuses or you can make money, but you can't do both. So come and join us.
Welcome back to the Andrew Wright Property podcast. I just wanna reiterate a little bit of philosophy that's in the intro to the podcast. You can make excuses or you can make money, but you can't do both. In Australia right now, we all have the same challenges, rising interest rates, difficulty in financing projects, and really expensive property.
A journey of a thousand miles begins with a single step, and as soon as you can get your property portfolio started, you start benefiting from the magic of compounding the eighth wonder of the world. Today's guest I've invited along to the podcast is Jared Foil, a 26-year-old property entrepreneur who has done exactly that.
He's got the ball rolling when others have stood on the sidelines. Jared, welcome to the podcast.
Thank you so much for having me.
Can you tell the audience a little bit about. Your background, how you got started in the property?
Absolutely. So my background is all in real estate and development. So significant amount of what I did is coming out of high school.
Uh, my dad was a lawyer with his own practice and he really wanted me to go into law. Uh, however, I did a few Head Start courses with USQ. Um. Figured out that during high school law, probably wasn't for me, didn't really have that attention span, but I always had a passion for architecture, um, property and investment principles.
So straight outta high school went into real estate. It was very dicey. Uh, you know, I think
What age did you leave school, Jared?
Uh, 17, well, 16 turning 17.
Okay.
And, uh, essentially started out with a, uh, couple franchises, I think, no more lasting than three months at the time. So it was very dicey to get into the industry.
And landed in development first and foremost. Um, you know, developer in the city that was specializing within land subdivisions, townhouses, and apartments
in nips, which,
uh, in Brisbane. And they were specializing with some land subdivision in Toowoomba, um, apartments in the city, north side townhouses.
Unfortunately, we didn't do a lot in EPS switch.
Okay, fantastic. So moving on to. After that job, um, you bought your first property at age 18, is that correct?
Correct, yes. It was a, uh, two bedroom, two bathroom, uh, one car unit in Zilm.
And how did you get that first finance approval to buy that property?
Well, I was very fortunate that I had some knowledge going in.
Um, we had an in-house mortgage broker at this development company, and one of the biggest things that I had to overcome was firstly income. So I was in a sales facing role. I was on a base wage of 40,000 plus commissions. I went through so much research into the calculators and such seeing, okay, if I was on 40 grand, what can I actually do?
I look at my commission, they shave, uh, 50% of that for my servicing. So I said, okay, I need to get a higher base rate. So it was a little bit ballsy potentially, but I went to the director of the company and I said, listen, I'm on a base wage plus commission.
Hmm.
Track me for three months. I'll do my commission spreadsheet.
Do not pay me a single dollar in commission if I outpace an extra $20,000 of annualized income. Just make my base wage $60,000. No commission. Went through a three month process. Um, my annualized commission was looking like it was be going to be 30,000. And that's a great deal, right? Yeah. I, I showed him that I could do it.
I for went three months of additional income, um, and took that sacrifice, but he was a man of his word and gave me a $60,000, uh, base wage, which serviced me at that time for around a, uh, 400 to 450,000 loan.
Wow. And do you think, uh, you got a good deal on that first property or you just paid fair market value?
Uh, I did get somewhat of a good deal. Mm-hmm. So this particular developer, um, I was looking to obtain the first homeowner grant. Um, and I didn't actually have a full deposit, so I looked at a couple different methods of getting in just as soon as I could.
Yep.
One, I had $15,000 for the first homeowner grant.
Two, I found, uh, this development, it was a small scale development. They had sold, um, 13 of the 16 apartments in the block. The remaining three at the time, they had just started ave another development down the road. So they told me, Hey, we really want these last three gone. This is essentially where most of their profit was within these last three units.
So whereas everyone bought for 380,000, uh, my entry position was 330,000,
50 grand difference. Wow.
$50,000 saving.
What a great start. And did you end up hanging onto that property, Jared, or did you end up selling it?
I held onto it for a few years. Mm. Um, and I did sell it after two and a half to three years time.
Um, but in the meantime it did unlock a few other things for me, such as, uh, entry into landlord hood, um, figuring out how to deal with tendencies, manage cash flow from rental, and if they pay a week or two or three late. Um, you know, it was definitely a learning curve. Um, but it did definitely set me up very well.
Okay. I should have mentioned, uh, in the intro here that, uh, Jared at 26 years of age has purchased more than 15 properties. That's 1 5 15 properties at age 26. So when I started by saying, you can make excuses or you can make money, this guy is, um, is a. Classic example of having a go and making things happen.
So we were not gonna go through all 15 today, but we're gonna, uh, go through a couple of the transactions. Now, your portfolio, you've bought and sold, uh, up to 15 properties, but you still have five in your portfolio long term holds. Is that right?
Correct. Five long term. Um. My portfolio has been a mix of, some have been very much geared towards flipping and, you know, Reno renovating, creating that sweat equity and, and pushing them off so I can invest elsewhere.
Mm-hmm.
Um, but the five I hold right now, they are, uh, definitely long-term holds. I see, uh, with potential foundation for, uh, some future plans I have.
Fantastic. Just coming back to that finance scenario, um, straight away when you mentioned. Uh, deferring your commissions to increase your base salary. It just made me feel good because that's exactly what I'm doing with my son at the moment.
He's a real estate agent working in my business, and for the last 18 months, I haven't paid him any commissions. When he sells something, I say, look, we need to get your salary up so the bank can lend you some money so you can get into your first home. And that's exactly what I've been doing with my son.
It's a really good thing because again, from a finance standpoint, the shading of commission income. Is so dramatic, especially in your, if you're in a position that's so heavily geared for commission.
Absolutely, absolutely. And, and I'm, I'm pretty sure that nothing's changed on the lending side. I think the majority of lenders will not take your last 12 months of commission as a gospel for your capacity to repay.
No.
Jared, you mentioned you only had $15,000 deposit, um, for that $380,000 purchase. Uh, given all the costs of, um. Buying a property and, and stamp duty and all that sort of stuff. Presumably you got some sort of, um, government incentives or exemptions on stamp duty. How did that 15 grand get used and how did you have an up.
Equity there to buy your first property.
So one of the great things was a really creative mortgage broker and utilizing bank policies to, to suit me. I knew I wanted to get in immediately. Um, and there are still lenders to this day that still have this polity policy wide open. Some people can be really good earners, terrible savers.
I ended up having a car loan. I owed about $10,000 on it, but my repayment was $600 a month. I didn't increase my actual base living rate, but I was able to get a personal loan to one, pay out that car, um, but also give me, uh, the cash balance of $15,000 that I needed to get into this property. I did pay out that personal loan within, um, eight months after I purchased it.
Just out of diligent saving and, and paying down, but I was not really good at saving.
Okay. Gotcha. Do you wanna give your finance broker a plug, if you reckon He is really good.
Well, this one was back then, but my current finance broker, he's actually Gold Coast space as well. Okay. Um, Tyler Cornish from your advisor group?
Uh, he's done plenty of this for my clients, my friends, family, anyone I've referred to 'em as well. So
property is a game of finance guys, so you, you definitely need a good broker. I just, it's so easy to overlook this, but you were 18. Yeah. Um, that's incredibly young. So what sort of gave you the motivation to go out and buy a property that young, and how did you get enough confidence to actually, uh, pen a paper and press forward and do it?
I think it was a little bit more unique, um, my circumstances to why I wanted to get in so early. Uh, there were a couple. Different things playing at that same time in high school. You know, I told everyone that I'd be buying property at 18 and um, you know, it was always a goal. However, my father, as much as I say, uh, you know, he was a lawyer with his own practice.
Mm-hmm. Um, no, I didn't get any inheritance, um, or anything like that. Uh, he actually got diagnosed with cancer when I was in year 10, so. One of the things he told me was he really wanted to work really hard, um, so he could provide me a property. Mm-hmm. And I thought that is a shit thing to say, like, I don't want my dad working so he can pass something off to me.
Mm-hmm. I just told him, mate, spend it all. Um, he did that very well. He died bankrupt, uh, about six months bankrupt before he passed away.
Mm-hmm.
Um, so. With that, I had the motivation of being able to one, you know, achieve the goals I had, but to, um, kind of show him that, Hey, I can do this. It's okay. Just don't stress.
Mm. Wow. So that's, um, really, I can, I can just feel a, a, a backbone of strength in your character from, from what you've gone through there. So you've been working in real estate, uh, right from the start. Um. Did you have any mentors there? Like before you bought that first property, was it one of your bosses or one of those developers, did they actually become a mentor or was there an online mentor?
Were you listening to podcasts? How'd you actually get that information?
So back then I was very much in the car scene. Um, really, really loved, uh, having, you know, JDM Eurocar and going and meeting people. Mm-hmm. And very quickly you start to realize how expensive cars can be. And throughout that, you know, I was always going to car meets and meeting new people where I was working.
Um, you know, I could rely on, uh, my director for advice and such, however. Uh, you know, it was a little bit of a too busy kind of situation sometimes. Um, but he did provide good advice when, when I could get him, uh, you know, latched down. Mm-hmm. But throughout being in the car community and meeting people, uh, one of my mentors, uh, very early on was Peter Doja.
He actually, uh, runs a security company. At the time, you know, you look up to, to people like this because they have the supercars, um, you know, and they are approachable and they are very nice and they are willing to have conversations with you. Um, that's one of the most surprising things, right, where I felt a little bit more confident going and approaching these people because I had a backing of property.
Um, and having those conversations, particularly with Peter. When my dad, um, passed away, he's the one who actually, uh, told me, okay, let's review what you do day in, day out at work. By this time we had actually, um, brought on a housing builder and we were doing custom housing land packages, um, and I was showing essentially what I do day to day in my job.
We looked at the profit, which was around $40,000 a deal. He saw that I was doing, you know, two to three to five a month, and he said, okay, you can replicate this. And that had never necessarily crossed my mind before. So immediately from there, um, he gave me the courage to just go ahead and give it a shot.
You set up your own business?
Correct. That's where Incline property was started, and it was mainly just, uh, dealing with builders and I, I specialize with, uh, infill blocks in better areas, not the land subdivisions and custom designs with a builder. I'd get paid 30,000 plus GST, uh, for each one of those.
But I was providing a really, really custom service for people.
Okay. What year did you set up incline property, Jared?
2020.
2020. So just, um, over five years. Fantastic. Just going through your journey here, I'm referring to my notes. It says, you, you bought your second property just eight months after your first, now you said you weren't a good saver.
How did you come up with the. You know, the equity required from to finance the second purchase in just eight months.
Uh, two things. One was the beautiful thing that is capital growth and buying a good deal. Uh, but the second thing about that was, um, uh, negotiating a rebate within the contract. Um, paying a little bit more, but getting, uh, some funds back so I could, uh, essentially fund some further renovations of that purchase.
Okay. Was that a unit or was it a house?
A house.
A house. Fantastic.
In Capalaba.
And you, did you end up flipping that one or have you kept that one?
That one was sold.
You made a profit.
Yes.
You are a flipper. You've, you've, in the past, you've, you've transacted, well, if you've bought 15 and you hold five, you must have sold at least 10 properties, which is a lot.
Talk to the audience and, um, I have. Not being a, an advocate of flipping simply because of the, don't like paying tax and stamp duty on the new ones we buy, but for some people it helps, particularly in the early stages to increase your uh, deposit. For the next one. Yeah. Tell us your philosophy about what I said.
You agree with what I said or disagree with my, I don't like the extra transaction cost, but I'm not right or wrong. We just all have different processes. Tell us about your views to flipping. Why it work for you and are you gonna continue doing that in the future?
Flipping has been a great thing for me personally.
Mm-hmm.
Um, it has provided me so much knowledge about buying property, understanding condition, understanding construction costs, and what can be done to create that sweat equity. Mm-hmm. Um. Initially, right. I was taking my wife house to house. These were personal residences that we were living in. Mm-hmm.
Um, so the, the tax side of it negligible. It's none, um, unless I'm selling within a 12 month period. Then my stamp duty is pro ratted from owner to gotcha investment standpoint. Um. So really, really gets a leg up where you are buying these properties that are in distress. You're buying them maybe in better locations than what you could have afforded if you just wanted something turnkey, ready to go.
Yep.
Um, and with that, you know, it really assisted with, uh, scaling up the, the property portfolio.
That is, uh, an awesome answer and I would 100% agree that that is an awesome strategy If you can use your principal place of residence. Add value and sell capital gains tax free. That is an, an awesome strategy.
Okay. So, um, moving on. Um, let's have a look at, you've, um, nominated one of your purchases to have a chat about, um, in Brassel. Uh, it looks like you only just bought it recently around Christmas last year, which is only a few months ago.
Yeah.
Tell us through that deal.
The 23rd
settled? Uh,
23rd.
23rd. So two day, the day before Christmas Eve.
Yep.
Tell us about that deal.
This one is a really unique purchase and I wanted to raise it because it has a few different elements to it. Mm. One I bought it for 895,000 and currently, uh, without having touched much on this property mm-hmm. Uh, it's valuing up at a million dollars flat. Um, there are definitely things I can do to push it a little bit higher as well.
Um, just with some further landscaping, repaint inside and such. This property though, um, was something that I maybe wasn't going to purchase. And it purely comes from the fact that, um, I had my daughter, uh, she's almost nine months old now.
Congratulations.
Thank you very much. And I was talking with the wife and I said, listen, I see the climate and I see how, uh, quick prices are growing and I can see the media.
Uh, how negative it is around home ownership for young people. So I said her name's Lucy. I created the Loose Goose Trust and um, essentially purchased this property inside of it. And this will be her property when she is older. And my goal is to have this fully paid out through either earned income or investments, uh, within that 20 year period.
Uh, so I can just give it to her. She can do what she wants in her future. She's not. Mandated by anything.
Mm-hmm.
Um, the reason why this property almost wasn't a reality is when I started looking, I said, okay, I'm looking at duplexes only. And the wife said, not she needs to live near us where we are going to be in our future.
And said, okay. So my strategy shifted to, I want to get, um, as new of a property on as big of a block as I can. So I was just very much on land size. I didn't even see this thing, um, at an open home. I just made the offer of sign the contract,
land size
2024. Wow. Half an acre.
Wow. So in, uh, IPS Ridge City Council, um, what is the requirements with low density residential to subdivide a block there?
Depends if it's a large home site or if it's in, uh, character areas or such.
Yeah,
generally 600 square meters is what you need. Um, and then the larger home sites are, uh, 1,012.
That particular site, does it have enough frontage, uh, and or are there any other constraints that might stop you subdividing that later?
There is plenty of frontage. Um, the. The house position is fine as well. Mm-hmm. Uh, it can definitely be utilized and most of the block, uh, 'cause it's the end of a, a cul-de-sac.
Yeah.
Uh, most of the blocks are a thousand square meters,
so there's no flood overlays or anything like that. No, they're fantastic.
Well, that's gotta be a long term hold. Absolutely. Absolutely. Awesome. Okay, another site, um, you've purchased, uh, for 5 35, uh, in December, 2022.
Yep.
Can you tell us about that deal? It looks like you've got a fair bit of uplift on that one after just a few years.
Yeah. Coal falls. So initially when I purchased this one, um, my mate and I, we actually had properties on the same street, uh, in Collingwood Park.
We had really, really good uplift from COVID growth and such. And, uh, we, we created an entity, uh, to go ahead and purchase a property in. This one in particular, uh, when I did purchase it, uh, it was halfway through a renovation. Uh, they built a massive four car carport and the neighbor. When I, when I first talked to the neighbor, they were, uh, saying profanities, saying they, they built a bloody Bunnings warehouse next to me, this and that.
So, um, they went through council and everything. It was compliant. Mm-hmm. Um, the neighbor had no, no, uh, kind of recourse or anything.
Mm-hmm.
Um, but. They moved because I believe they were just, uh, over it. They didn't want the fighting with the neighbor and such. Um, so they made every attempt to just get up and abandoned ship halfway through their renovation.
So the kitchen was undone, walls were unpainted, um, different portions of the house. Uh, like there wasn't even a vanity in the second bathroom as well. Mm-hmm. Um. That's how I purchased it.
Was it online? Was it advertised on realestate.com?
Yeah, it was advertised on, on REA and Domain. Um, I just saw it because of the back balcony.
It was stunning. Uh, really, really nice set out with two double balconies, um, on a good size block. 900 square meters. Yep. Um, instantly the, the character kind of drew me to it.
So your purchase price December, 2022? Just over three years ago. 5 35. Current value,
uh, just got valued at 1.3 million.
Um, is that, uh, you on RP data or did you actually get a bank to send a value or to extract some equity out of it?
Here in Todd White. Yeah. Bank valuation and yeah, I extracted, uh, some equity out of that.
Fantastic. That's an awesome story. So 5 35 to 1.3, that's an uplift of $765,000, correct. In just over three years. That's, um, quarter of a million dollars a year, and this is why I love doing property podcasts. I mean, it doesn't matter how much money you earn, Jared's 26, the chances of him saving quarter of a million dollars a year in cash after paying tax on any kind of personal exertion is just a near impossibility.
So this is the power of compounding. This is the power of property, and it's just so exciting to see success stories like that. At age 26, I gotta be honest, like if you continue to push yourself, uh, in 30 or 40 years time, it's just gonna be a phenomenal story of success, Jared. So it's just so impressive at such a young age.
Thank you.
What, what did you actually see? Like what, why is it, just tell me why is it value up? Have you added value to that site? Why is it worth 760? I know Ipswich as a region has had a good uplift in the last three years, but have you actually done anything to the property?
So, one of the cool things about this property is when I did buy it, as I said, I bought it with a mate in an entity.
Mm-hmm.
We put $50,000 into it to paint and finish. Mm-hmm. Uh, the, the project. So. With that, it then jumped up, uh, very well to that $780,000 value.
Mm-hmm.
At that point, uh, my mate did, didn't want to kind of fund negative cash flow from what the rents were back then. Uh, so took the profit, paid him out, and uh, he went off that entity.
So it was just mine at that point. From there, uh, I was planning on maybe using it as a, uh, personal residence. So I did redo the kitchen again, uh, added a whole new bathroom, uh, did a few extra things, but in total I've spent less than $150,000 on improvements on this property.
150,000 up lists, 7 65. So it's still, um, uh, well over $600,000 of, uh.
Of uplift their,
but the fundamentals are still there. Again, why has it gone up, um, past 150 to thousand dollars of renovation?
Mm-hmm.
It's on one of the best streets. Mm-hmm. Um, you know, coal falls, wooden saddlers crossing, it's like a golden triangle for heritage buildings that people just love.
Mm-hmm.
Um. And most importantly, uh, the fundamentals of it's a five bedroom, three bathroom, four car home on 900 square meters.
Mm-hmm.
That's huge. Where else are you buying, uh, a property of this size?
Mm-hmm.
Apart from this, this home in this area.
Just, um, coming back to that heritage situation, my understanding is, uh, with ipw City Council, um, or it might be the state government, but I think they classify it.
Is it pre 1949 or is it pre 1959? Do you, are you familiar with that?
Generally 49, but it's if it's actually in a character area as well. Okay. Um, so one of the properties I've just purchased in Ipswich is in a character area. Yeah. So I do have to be a little bit more diligent with what works I do.
However, this coal falls one outside of everything.
Yeah. Right. So you just gotta be careful. If you see, um, uh, a, a pre 1949 house and you're wanting to sort of make changes or, um, knock it down or something, you might get a nasty surprise if the council says, no, you're not allowed to do that. So yeah, make sure you talk to someone who's got the experience there or a town planner and just make sure you can actually do something with the site.
That you want to do if there's a pre 1949 house there?
Well, I've got a tip for people. Um, if you're playing at home, uh, essentially, uh, create an account on a site called develop. Put in your properties that you're researching and you would like to purchase and within five minutes you'll have a full report, um, that gives you where the sewer lines are.
Um, it's a prettier version of dial before you dig, and it's easier to look at at just a glance with two minutes. Is
this just an SWI thing or is this a Queensland,
uh, Australia wide.
Can you spell, spell out that website please?
Develo. D-E-V-E-L-O.
Fantastic. I'll, um, sub there. I've learned something, another thing there myself.
I'll, I'll do that when I get back to the office this afternoon. Okay. So if you've done 15 deals already, um, I'm hoping that you're not super, super lucky and that you've actually had a bad deal. Jared, have you had any bad deals?
I have had a bad deal one. And, uh, it was a flip project. It was from day dot.
I knew I was flipping it.
What happened? What were the numbers and, um, how, how much did you lose or did you break even? And did you make any mistakes?
So this one, uh, actually went in with two other mates, um, because, you know, we were doing fantastic things at the time with, uh, other, other properties and definitely made money.
Uh, this one. I was trying to travel outside of Ipswich and, uh, found a project in Jindal Lee. Uh, it was a tough sale because the house itself was octagonal, so it was undesirable from the start because it was very original eighties. Octagonal house in Jindal Lee, um, with this one ended up losing. $30,000.
So split between the three of us. 10 grand each
plus your time.
However, yeah, that was a big thing that I lost, so. Mm-hmm. Uh, the other two business partners, they weren't self-employed. They could, uh, you know, go through, go to work, they get their wage. Mm-hmm. This one because of how big the renos were and how time intensive they were.
Um, I essentially put everything. On hold for three months to mm-hmm. To get this thing done.
Wow. It's, uh, it, it's definitely an issue. In the podcast I released last week, I talked about walking away from aade and Gimpy because whilst it had potential up there, this site needed heap, heaps of work. And I would've been driving six hours, three hours to gimp and back every day to do the renovations.
And you've gotta have a look at the. Opportunity, cost of time spent in your own business, even if a deal makes sense. If you're gonna lose a whole heap of your time as a real estate agent or any other occupation, you've just gotta take all of that into account. Let's talk about flips. Um, what's a typical margin if you are gonna continue flipping, do you think you should be aiming for with a flip?
So with flipping, I generally try to target anywhere between 100 to $200,000. Um, but it's also time dependent too. I'll take any flip that I can make a hundred thousand dollars on if I am spending around a month to a month and a half on this project. But I will spend the three months if I'm making a couple hundred thousand dollars of equity.
Okay. And, um. Like that sounds, um, like in low price brackets under a million dollars like that, uh, that sounds pretty, uh, aggressive. Like you probably haven't worked out the exact numbers, but what's your success rate? Have you done that 75% of the time with the flips? Have you achieved that sort of goal?
Well, every one bar, genderly.
Gotcha. One of the opportunities that every person has, if they're struggling to come up with. The lending criteria to get a loan in their own right. Can you just tell us, this is not advice, you should seek advice on this, but how did you structure those joint ventures? Was it a unit trust or was it a just a company?
Yeah, so unit trust, um, you have shareholders, directorships. Um, there have been, again, this is, uh, being able to get in sooner and earlier. Um, some projects, you know. There's pooled funds. So it's, you know, two of us going in and we're sharing the risk load for these renovations and we're sharing the profits, which is fair.
Um, you also get someone else for opinions and, and having discussions because it can be a little bit lonelier if you are, especially if you're my age wanting to push through and purchase property when all of your mates might be at the club still, or, you know, trying to travel the world and such. Um.
Again, uh, being able to get in so early, there's so many different ways you can do this. Uh, some of my friends have even come to me, uh, advising I have savings, um, but I don't have the serviceability.
Mm-hmm.
Well, guess what? Me as, as someone who's self-employed, I have plenty of serviceability these days where I can actually assist people if they're doing a flip project.
Um, so. Again, you have to take it risk by risk and, and assess who you are working with because not everyone will be the right fit.
Mm-hmm.
Um, but if there's a will, there's a way.
Absolutely. So, you know, I think, um, it's been an incredible last five or six years in the residential property cycle for your strategies to where going forward, I'm actually not very confident that the market will be so generous for the next four or five years.
What's your views on are flips profitable now or will they be profitable now? And do you think there's a heightened risk given the elevated interest rates and the simple fact that you're paying so much more for sites these days?
I have a pretty big risk appetite and. Again, I'm, I'm still buying properties actively right now as well.
Mm-hmm. So I am adding to my, uh, flip schedule. Yep. And there's about three coming up within the next two months that are secured and finance approved, ready to go. Um, I find a lot of the risk is mitigated right now, though. Uh, the reason being, I know you say it might not be as fruitful or. It might not be as possible, but realistically, if you look at your replacement value,
mm-hmm.
You can buy townhouses in areas that are well below replacement value cost, even for the same spec, and that applies to houses as well.
Mm-hmm.
You cannot replace these houses. For the price you are buying them. Right now, if you've looked at, uh, the cost of, uh, constructing a brand new home on a typical, uh, lot that is flat with no dramas whatsoever, you could be spending $600,000 on a build very easily.
And that's if a builder will give you a fixed price contract, which at the moment they're not.
Yep.
So at the moment, the risk for building. Is way up here, it's so high.
Mm-hmm.
So that means all of these people who would consider building, they're going and buying, established, they're utilizing whatever grants that the government throws out.
Mm-hmm.
But at the same time, build pricing is just going up. So yeah, I believe buying established property and uh, especially adding value through renovation is going to have somewhat of a, uh, a shield on it,
I guess. Um, I was just. Thinking through your response there as you are talking, and I guess at the end of the day, you are not even using Mark market growth as a strategy that may assist you, but you are looking to add value immediately anyway with what you're doing with the renovation.
So you in a way, you, you're not even relying on the market going up.
I have never accounted for market growth in any form of feasibility. Yeah. It has always been at this point in time. If I were to take the same property, un renovated versus renovated, what can I sell it for?
Mm-hmm.
And if, if it's gonna be a loss after renovation, it's not the right project.
Mm-hmm. Jared, have you come across renovation or flip deals where, I mean, obviously when you repaint something, you put in new carpets, there's a new, it looks good, it smells good, and all the rest of it, but there's a. A bit of a, um, uh, challenge when you're doing structural works because you can spend a lot more money and people don't actually see the difference.
So have you come across deals where maybe you walked away from under contract or you just didn't make any offers because even though it looked like a good deal, there's just too much structural work that if you invested the money, you weren't gonna get a return on it?
Absolutely. There was actually, um, a property, uh, in Helens Valley.
It during, during the cyclone, um, weather that we had, essentially it had a tiled roof and it was like cheddar cheese, you know, it had holes all throughout it, and that caused, um, significant damage. Insurance went through, did a make safe, and the cellar had essentially left that property locked up with just tops over the roof, which blew in the wind for probably.
Six months. So you then went through it and it was all moldy now?
Yeah. Right.
Um, and you know, I, I had a, I had an appetite up to $700,000 for this one. It did have good views of, um, surfers and everything. 'cause it was high up.
Yep.
Uh, they wanted seven 60 again, I just couldn't get to that point. I did have, uh, really good contacts for chippies roofers such like that.
And, um, everyone said, yeah, it, it is possible we can do this. However, the big killer, and this is coming out of me wanting to do things right, mold remediation, uh, for that job, purely because, not from the damage, but just for sitting there for so long. I had a quote of $90,000 for mold remediation. It wasn't worth it.
Wow. And was this during a due diligence period or did you actually have this under contract at that time subject to due diligence or some other clause?
This was through the negotiations. So because it was an off market deal. Mm-hmm. Um, and I was dealing directly of the seller. There wasn't a, uh, a pressure to act very quickly.
Yeah.
And. I look at everything, um, that mold remediation. Mm-hmm. Again, very expensive. What happens if I paid a carpenter of $60,000 to, uh, you know, put in all labor and new material to just rip studs out and replace them?
Mm-hmm.
I looked at it from every angle, and unfortunately there was just the disconnect between me knowing I wanted to provide a really, really high-end finish.
Mm-hmm. And a good structural quality. To it not making sense.
Yeah. Mold is a scary thing. I, I know we've spent, uh, thousands of dollars on, uh, properties in our rent roll fixing mold and sometimes six months later it just comes back. It might be a structural thing with the ventilation in the house or what have you.
And sure, we have had lots of rain the last couple of years, but it is, uh, something that you need to have a look at it with your due diligence. Um, mate, how long, how have you found, um, financing? Over the last, um, so this is what about, uh, eight years you've been traveling now? Yeah. Do you think it's harder now or easier or the same?
How have you seen the finance landscape change during that time?
When I started, it was definitely difficult. However, there still were ways, and again, that's just having conversations and making plans with finance professionals, right? Um, especially if they're in the same mindset of you as to getting in as soon as possible and scale.
Um, these people will help you. They will create a plan, and again, it's then up to you to, to execute right now. Um, you know, two, three years ago, I think financing was very, very easy.
Mm-hmm.
Um, it has come in a little bit more difficult now. Reason being, um, as someone self-employed, I could low dock with just an accountant signing off a letter.
Now it's a little bit, uh. Well, most insurance for accountants won't actually let them, uh, sign those letters now. So you then have to shift the strategy again, you know, provide bas statements, um, annual analyze reports and such.
Mm-hmm.
So it's getting a little bit harder depending on your structure now, but mm-hmm.
Uh, especially if this new 5% deposit scheme, I am seeing a ridiculous amount of buyers every weekend at every home that. Pre-approved. It's so easy they can just do it.
Yeah. Right.
Some of these are parental gifts. Some of this is savings. Um, and again, even when I purchased, uh, you know, my, my first property, that car, um, that I had paid out with that personal loan, I still sold that car and I bought a two and a half thousand dollars barina.
I bought the property and then a month later I then financed a new car. Um, but you know, I made those sacrifices because one thing was more important than the other.
Good on you. Good on you. And that's what needs to be done, say. I, I, I just point out on that finance, you are self-employed and I, I think, um, probably over the last 12 months, there has been a proliferation of lenders that will actually take one year of tax returns for a self-employed person as opposed to like three years.
I, you know, we used to have to put in. So, um, there is is some relaxation there. I'm an Ipswich Grammar school boy, Jared. I dunno if you knew that, but I went to Ipswich Grammar School.
Yeah.
Um, 1983 to 87. Yes, I'm old. But it is the best school in the world if you're, if you love sport. And I was a boarder there.
Why have you focused so heavily on Ipswich with your investment portfolio?
I think the first thing is comfort. So I'm originally born in South Australia. Um, we moved up to Brassel of all places. Uh, when, when I was five. I went to Brassel State Primary School when I moved in with my, um, father, uh, separated parents.
Um, I was in Brisbane, so I went to Brisbane State High School and Music Industry College. Um, I found myself coming back to Ipswich because it was very much a comfort thing.
Mm-hmm.
I knew it. I was not born here, but, you know, raised here essentially. Mm-hmm. Um. That's the first thing. And then the second thing is just the, the livelihood of Ipswich when it comes to events held by council, um, infrastructure that is coming to the area and promoted.
Um, and the amount of things that are just happening from a family space. Mm-hmm. It makes sense. And again, you know, one of the best things that I see being in flipping is if I can see that other people are spending money on the street and you're buying the worst house in the best street. Mm-hmm. Because everyone's renovated, but this one's just hasn't had the funds to do so and they've lagged behind over time immediately.
That's, that's a great feeling, you know, that people are pouring money in. Um, and again. You can even use Bunnings as an investment indicator, right? They spend millions on research for locations, coal falls, brassel, well, you have West Ipswich, which services that ring of, um, you know, those, those western areas, but also race view and such.
Bun Amber, the original, well, they had bav, they moved it to Bunda. It flooded, got totaled and they rebuilt ndaba.
Mm-hmm.
There's not a reason for them to rebuild a flood resilience structure in Ndaba if it didn't make sense for them to have it there. And that means there's increased, uh, cash flow and spending into those areas.
People are improving their, their properties.
I agree a hundred percent. It's an exciting area and it was a lot more exciting five or six years ago when you could buy houses for $150,000. But I've always looked at Ipswich and not only the large sizes in square meters terms of the blocks of land compared to a lot of other places in Brisbane, but.
The beautiful character of the homes like this. If you ever drive through Ipswich, you can see all of these beautiful character homes with the massive balconies, the the Queenslanders, and it's just such a beautiful place. So, um, I'm a big fan. I've invested in Ipswich myself and, and will always do. So it's just a great spot.
Mindset, discipline, risk management. We've talked about you had to sell your car so that you could get into that first deal. What other sacrifices have you made? I mean. Quite clearly, you've invested a lot of time with all this flips, but can you just talk through the sacrifices that you've been prepared to make that up till now?
A lot of your mates you went to school with who are also age 26 haven't made, and perhaps that's why they don't have a five property portfolio at this young age.
Um, maybe my scenario isn't ideal because sometimes it has looked. A little bit like a yo-yo, for example. And the reason why I say that is yeah, time is a huge investment and generally speaking, um, I'm, I'm a little bit selfish in the sense that if I do make good profits and such, I will, uh, go down a reward route and.
Again, at my core, I am a car nut, uh, blame my dad for that. Um, so I will buy the things like cars and such. Mm, I'm not buying, um, you know, designer clothes or anything significant.
Mm-hmm.
Yeah. I've got a tag heel watch, but I'm not going crazy on things like that. Mm-hmm. So a lot of it is cars and experiences.
Mm-hmm.
Um. And I get to these situations right where I get kind of comfortable for three months, four months after a reno, then I go again. And sometimes in that situation I'm, I'm selling these toys. Um, for example, during a lot of the capital growth and such, I ended up having like. Two Audi, uh, sedans, um, highly modified.
I ended up having an Audi R eight, um, a Tesla and, and a nice SUV and a Ute.
Mm-hmm.
Well, when I came to the next project, it was sell down focused there. Uh, and then once that project was done, again, rebuying new toys, experiencing new things. So, um, so it's been a little bit like a yo-yo in that sense. Um, but the sacrifices I make are, uh, well balanced with the rewards as well.
And the biggest sacrifices aside from time will be, uh, when I'm going into really intensive, uh, renovation phases where it's towards the end. Cash flow does get tight, especially without renters in there. Or if some of the portfolio, um, which most of it is negatively geared right now.
Mm-hmm.
Um, you know, you're contributing more cash flow.
Mm-hmm. So I'll always let go of cash, so long as it's for property willingly without a doubt.
Okay. Good on you. So I, little bit of that, I'd summarize a little bit of that, uh, mindset into, uh. Work hard, but play hard as well. Like it's good to reward yourself if you're putting in the hard yards and, um, you've gotta enjoy your life.
So, uh, good on you moving forward. Um, I don't know whether you are, uh. Like a guy who writes down all your goals. I, I, I do tend to do that, but do you have a plan for the next five years? Like have you got a, something written down for yourself or is it in your mind as to what you wanna do going forward?
I originally had a written 10 year plan.
Mm-hmm.
Um, and achieved pretty well all that within, within five years. Um. Again, going into the last three years, it has just been a focus on, uh, kind of gaining experience and education within the construction principles and a lot more focus on building my business so I can build income to do more things, especially going into the future.
But right now I've identified that I'm kind of at that, at that road where I need to now look for new mentors. Now have more conversations about what other people are doing, for example, yourself. Mm-hmm. You'd, you'd be fantastic for kind of guiding me further and, and kind of creating a little bit more structure and strategy for long-term proofing.
Um, because again, it's that point in the road, I've been focusing on, uh, time intensive, uh, properties. And I've been getting a reward out of it. Mm-hmm. However, it has come to, uh, some of those sacrifices of cashflow and such. Whereas, you know, I know someone like yourself, uh, you talk about cash flow all the time and positive cash flow, not negative.
Well, look, Jared, even in my situation, I certainly would not want to have five, uh, negative li geared properties. Um, so, uh, yeah, you, you, you, you talk on the right lingo and maybe, um, over a period of time. Um, I hope that you get some exposure to commercial property. I'm happy to provide any help there where possible going down the track to get you into those higher cash flow investments.
The funny thing is too, that's where I'll need your guidance. And again, it's, uh, I can make the excuse or I can just have these conversations with people such as you. Um, I need to put something in a self-managed super fund for a tax advantage. Mm-hmm. And I did. Only just started this search two weeks ago.
Right. I looked at a property on Brisbane Street in Ipswich, not to occupy myself. 'cause I'm happy at your office. It's fantastic. I love it. Um,
Jared's renting one of my retail properties in Ipswich.
It's great. But, um, I looked at it and
make sure you gimme notice if you're moving out. Okay. I need to
find,
no,
no, I'm, I'm happy with where I am.
Um, but this one office on Brisbane Street
mm-hmm.
It's set across two lots and. Again, this is out of, uh, being in, in the market and knowing I get sent an information memorandum. Mm-hmm. And it does not have, it has outgoings for council and water. Mm-hmm. It doesn't have outgoings for body corporate. Mm-hmm.
So I ask that question.
Mm-hmm.
And I of course know it's across two lots. I'm thinking, I wonder if they've discounted one for them or if they're both. Equally assessed.
Mm-hmm.
Anyway, finally get that data. They want $550,000.
Mm-hmm.
The rental appraisal, 30 to 35,000 a year.
Mm-hmm.
Outgoings a 19,600 a year.
Yeah. Body corporate is 11 and a half thousand. That means a net yield of 1.9%.
Yeah. And it may be land tax implications as well. Maintenance. A lot of those properties in Brisbane Road S, which are very, very old and might need maintenance as well. Yeah, and you know what, um, Jared, um, a lot of the valuers on a deal like that and many others, commercial valuers will also plug in another 5% expense for property management fees, even if you're self managing it.
So when they do a valuation to give to a bank, they'll, they'll get 5% of the gross rent and take it off the, uh, the cash flow as well when they value it, and they'll multiply the net. By a cap rate, which absolutely hammers the, uh, the valuation.
So that's exactly where, um, you know, someone like you would be vital for advice like that because, uh, that to me screams bad deal.
And as much as. I'd love to buy it.
Mm-hmm.
I think that's the, that's a walkaway point, right?
Absolutely. Happy to help. And I'd also be very pleased to consider doing due diligence with you and one of those unit trust structures on a joint venture, because I absolutely love Ipswich. And, um, happy to chat further.
Okay, so rapid fire round. We are coming down. Just a quick five, uh, quick question. See if you can, um, see what comes at the top of your mind here. The best deal you've ever done.
It was actually one in Ndaba, uh, older gentleman who had owned it brand new since the seventies. Um, it had some termite damage and repaired it all.
Bought it for $320,000. Uh, repaired it all within $40,000 and it was sold for 610,000 within a five month period,
within a five month period.
But the work only took me a month. Wow. So I had tenants in it, some friends living in it for, uh. For that time and I just decided I wanted to sell it. So
fantastic.
The worst deal.
Ginger Lee. Too much. That's the, yeah, too much time. Lost money. Um, and put life in business and everything on hold for three months.
The most underrated strategy going forward for the rest of 2026.
If you are buying your first home. Buying a property that requires a little bit of work in an area where the median value is higher than what you're buying for and taking advantage of your principal place.
Residence tax advantages, um, seriously, this is even if you're buying a shack and it just needs a little bit of work, spend the time, buy it first and foremost, and use that to buy your dream home or buy an investment property or, or scale. At 12 months or plus, according to whatever your risk profile is.
A hundred percent agree.
If you had 20 grand spare, Jared, it's so hard to save money these days for, I'm no exception. Um, after paying tax, uh, trying to accumulate cash is difficult. But if you had 20 grand, what would you do with it? Don't say a car. Jared, please. We, it is a property podcast.
A car would be first, but, uh, going, going more to that, I'd just have a chat with my mates.
I'd see. Who is in a position and they might have 20 grand as well. Wherever it's 3, 4, 5 of us.
Mm-hmm.
Find something, pull it together. Buy something that you can make money on.
Jared, thank you for your time on the podcast. You're very inspirational and I, I know when I think back to when I was 26, I was nowhere near the level you are at.
Um, you've done very, very well. Thanks for sharing. Um, if you have any questions for Jared, where can they contact you? Jared, he's a real estate agent. If you're anywhere in the Ipswich area and you want some assistance, Jared, how can they contact you
so they can contact me on my mobile 0 4 1 8 7 1 1 3 7 6 or send me an email jf@inclinegroup.com au.
I am more than happy to have chats with anyone at any point in their portfolio. If I can help, I will. If I can't and I know someone who can help you, I'll put you onto them immediately.
Thanks, Jared. Do me a favor, um, subscribe to this podcast and send it to a friend and ask them to subscribe. So we wanna get some more subscribers so I can start bringing on more awesome guests like Jar here today.
Thanks for your time. Thanks Jared.
Thank you.
Thanks for listening to the Andrew Wright Property podcast. This is all about building a community of like-minded investors who can share real life stories, experiences, and collaborate with a view to helping each other. Join us. Get in touch through the link in the show notes.
I look forward to you joining me on the next episode.