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It Wasn't Always Rosey For This Professional Property Investor

It Wasn't Always Rosey For This Professional Property Investor
3 min read

It Wasn't Always Rosey For This Professional Property Investor

Find mentors that can take you for a walk in their shoes, so you don't have ever to walk barefooted. Luke Bailey shares the secret to his success.

There comes a time in most people’s lives when they decide that now is a good time to invest in property. For me, that actually occurred when I was 15 years old. TV shows like The Block were just starting to get airtime and I realised that I wanted to do something that involved property.

My first thought was to get a trade because tradies can renovate houses and quite frankly I struggled to pass any subjects at school due to my complete disinterest from the unpractical nature of school, and knew university was never an option. I tried work experience as a plumber and didn’t enjoy it, but finally decided that becoming an electrician was the trade for me.

I then went off as a young 17-year-old and completed an electrical apprenticeship in the oil and gas industry. Although I enjoyed the trade and learnt a lot, I knew that property was the key to a better life. I saved an initial deposit and at 19 I bought my first investment property.

This is easy I thought so I bought another. Then time went by and these properties actually declined in value. But doesn’t property double every 7-10 years -  is what I thought?  This was my first experience that if you are going to win at the property investing game, you have to learn from people who have already achieved success.

The turning point

I met a man who owned more than 85 properties. I asked him if I could take him out for lunch and he said, ""Sure if you book in."" So, I did and paid him some money of course, to learn how he managed to become financially free through property.

To cut the story short in those 2 hours I spent with him, I learnt more than I did in the previous 5 years! He advised me on what to look for, what to study and how to go about it. I spent time developing a plan on how I was going to buy more properties.

One of the major things I studied was property cycles and the movement of money to generate a formula that could choose properties that would perform exceptionally well. My next purchase was in Glenelg in 2013 where I bought an undervalued townhouse for $495,000  which is now worth close to $750,000. From there I used the equity to purchase additional properties throughout Adelaide. I then realised that I needed to diversify for many different reasons and bought in Brisbane.

One of the things I discovered was to be successful you have to think and act differently. I turned my attention to the Tasmanian property market and bought in Hobart in late 2016 in the mid $200’s and that property is now pushing $400,000.  Subsequently, I bought properties on the north coast that have also performed quite well.

Many of these properties I have cosmetically and structurally completed renovations to add value, and in the areas where laws permit, added granny flats to boost the rental yield.

From two bad properties to fourteen worth several million

If I could put my finger on just one thing that made all the difference it was education. I don’t mean school or university. I mean seeking out mentors that can teach you the proper education needed to succeed. Mentors that can take you for a walk in their shoes so you don’t have to ever walk barefooted. The goal might be just one property or it may be ten. If there is one bit of advice I could give you it would be to find people that have achieved what you’re wanting to achieve and copy them.  This is the quickest way to success.

 

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