Just made $190k in 15 minutes AMA (pic) (reps)

[FrankCostanza]

True

190k isn’t bad for 15 mins work though

Inb4 misc ceos



Sold one of my properties at auction. Was all over from go to whoah in 15 mins.

so it didn't take 15 minutes, but rather months-years? k I mean good for you, but the whole process is what counts.

[FrankCostanza]

Why haven't the Chinese mogged your real estate like they've done in Canada? Srs.

why is the world allowing Chinese pricks to own our shot 2hen we can't buy a single property over there per law?

[r32gojirra]

why is the world allowing Chinese pricks to own our shot 2hen we can't buy a single property over there per law?

This is an urban myth started by bitter millenials it’s illegal for foreigners to buy already-built houses in Australia

so it didn't take 15 minutes, but rather months-years? k I mean good for you, but the whole process is what counts.

Until the auction it was just an expense line-item

15 minutes later it’s a current asset in my transaction acct

What part of that is difficult to understand?

[RWNAT]

All I see is a piece of paper with numbers which any jackass can print

[MillerDecaXC]

True


Sold one of my properties at auction. Was all over from go to whoah in 15 mins.

I was hoping you wouldnt say this...FUK!

I have 6 houses and every single day im so tempted to sell them. Each one has around $70-100k+ in equity.

[r32gojirra]

I was hoping you wouldnt say this...FUK!

I have 6 houses and every single day im so tempted to sell them. Each one has around $70-100k+ in equity.

Do it man you never know what can happen on auction day we hit the reserve price on the second bid and then it started going up from there

Then re-up in more profitable stuff that’s how I got started

[Miscbob]

Well to be fair this was our first outing of this scale and we learned a lot through making some very expensive mistakes.

I’m currently working on a much bigger development which will have much better tax planning, much less involvement from me at the design stage and much better regulatory compliance, all of which should speed it up and make it more profitable in the end and less of a headache for me

Where did they goof on the tax planning?

[wiseass]

-all in for around $2million. That is about $800k on the land, $1mil on construction and $300k in regulatory fees, design fees, property taxes and holding costs (interest) but some of those are instant tax write-offs. So a bit under $700k per townhouse.
-borrowed it from the bank
-massively depends on your other income but the effective tax rate can be between 25-47% for someone like me already earning in the top tax bracket for my “job”. I’ve already provisioned for tax so $190k is pure after-tax profit
-tossing up between
a) reinvesting in quality fixtures/finishes for my current project
b) lambo




^^^That doesn’t sound like a very profitable business model

Lol at thinking you can buy real estate in aus for $150k



It’s posted in the op, $190k free and clear after-tax profit

One down, 2 more to go, wish me luck

nice work, which area? sqm? when did you buy? how many units? time from DA to completion?
if it was your PPOR, can you flip the lot tax free?
thoughts on the market in the next couple of years?

[lockdev]

Is that Aussie money?

Good job OP, you can now afford a large jar of Vegemite.

[Vitaly0]

Why does everyone feel the need to boast about their income online? Nobody is impressed. I don't know any one of my high income friends showing off to strangers on the internet.

that's probably because you don't have a lot of friends

[SSM12]

Lend it to me and I could lose it all in less

[r32gojirra]

nice work, which area? sqm? when did you buy? how many units? time from DA to completion?
if it was your PPOR, can you flip the lot tax free?
thoughts on the market in the next couple of years?

-inner city, 900m2 lot subdivided into 3 lots, around 113m2 living space each unit
-DA was 18 months because we had one thing go wrong after another had to sack the first architect and I drew it myself. Construction was one year, rented for 1 year. Felt good to go from a massive liability to a tidy little profit
-This one wasn’t a ppor so I have made generous provision for (concessional) CGT. I picked the best unit in the complex to use as my PPOR so gains will be juicy when it comes time to sell that
-dunno about short term fluctuations on the market and don’t care. Over time it will go up. I’m not highly leveraged so patience is my friend.

[r32gojirra]

Where did they goof on the tax planning?

The question was whether, if we sold the units brand new having never been lived in, it would constitute a “taxable supply” for the purposes of GST

We couldn’t get a definitive answer and I’m quite risk-averse in tax planning so we decided to rent it out for a year and avoid the risk altogether

There were some other issues about capex vs revenue but that was the main one

[NLNFunKti0nz]

True

190k isn’t bad for 15 mins work though

Inb4 misc ceos



Sold one of my properties at auction. Was all over from go to whoah in 15 mins.

what kind of property?

[snailsrus]

Nope

Redeveloped a single property into a townhouse complex

15 minutes is how long it takes to turn a liability into an asset

Miring bet it took a lot longer than 15 minutes to redevelop though. Flipped a duplex and man that was way more work than I thought it was going to be and took longer than I thought

[r32gojirra]

what kind of property?

Residential. Triplex townhomes (this was 1 sale out of 3 I’m hoping to close this FY)

Miring bet it took a lot longer than 15 minutes to redevelop though. Flipped a duplex and man that was way more work than I thought it was going to be and took longer than I thought

Yeah I learned heaps along the way with this process, really looking forward to the next one, will probably be about $3.5 mil into it before we even see any positive numbers on the balance sheet

It’s weird when the whole thing is over in 15 minutes but it’s a great feeling to get rid of those brackets on the profit/loss statement

Did you do okay financially out of it?

[bigdownunder]

Nice work mate.

Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?

What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?

[r32gojirra]

Nice work mate.

Joint venture? Land costs sound too low otherwise, unless it’s not in Sydney?

What’s your estimated profit from the entire project? Enough to stop your day job and do this full-time, or do you still need the steady cashflow coming in?

^^^not in Sydney. That market is too volatile.

I think if I can pull $600k after tax on the whole project that would be nice but the best unit of the 3 is my ppor so might do slightly better than that

Haven’t looked at the balance sheets lately but I think I sunk maybe $70-$100k of my own cash into this with the rest financed so not too bad of a return

As for the day job, well that’s the big question now isn’t it. If I hated what I do the answer would be easy but I love my job and get paid very well for relatively few hours so yeah it’s a tough one.

Also after a lot of trial and error we found a great finance guy, accountant, architect, builder, engineers and sales agent so this “Side hustle” is not a full time job by any means, probably 0-8 hours in any given week

[snailsrus]

Residential. Triplex townhomes (this was 1 sale out of 3 I’m hoping to close this FY)



Yeah I learned heaps along the way with this process, really looking forward to the next one, will probably be about $3.5 mil into it before we even see any positive numbers on the balance sheet

It’s weird when the whole thing is over in 15 minutes but it’s a great feeling to get rid of those brackets on the profit/loss statement

Did you do okay financially out of it?

6 months of blood sweat and tears (did quite a bit of the work on my own and got a brokers license and acted as the general contractor and designer) after everything was said and done plus taxes 12k in 6 months on a 40k down payment and 15-16k improvements. Lived in the construction zone and had a tenant in one side for the majority of it which covered the mortgage. Learned a lot about the structure of buildings and for 23 years old not too shabby

[Schnitzl]

that's probably because you don't have a lot of friends

Who in todays world has a lot of what they can call real friends?

[keels141]

Nice work m8, guaranteed the haters will come out of the woodwork when you post something like this. It's as if someone else's success diminishes their own; you guys need to develop an attitude of abundance.

I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.

Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.

What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?

If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.

Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah

[r32gojirra]

Nice work m8, guaranteed the haters will come out of the woodwork when you post something like this. It's as if someone else's success diminishes their own; you guys need to develop an attitude of abundance.

I would have been a bit concerned through most of this year with the covid restrictions, some parts of the media were predicting 30% price falls in property. It must be a relief for you to get this converted into cash.

Are you going to put all your money into real estate for the next few years or invest some in shares? I currently have about 195k in cash earning 0%, I can see a 30%+ correction in the share market happening pretty soon (maybe 2% because some is in an offset account). The real estate market seems a lot safer, my borrowing capacity is non-existent right now though.

What was the tax plan then? Rent it out for a year and get the 12 month CGT discount, sell your property tax free under the main residence exemption and then sell the next one in the 2022 financial year?

If you are on the top marginal rate I would be tempted to take a year off work, and save a heap of money on tax.

Property development definitely increases the risk though, but it's good to see you got it over the line. Exciting times ahead for you brah

-yeah the hate is real
-when I saw the Covid news my first thought was “fuark I gotta buy my next development site while the sentiment is down” - which I did and got a steal.
-I’m going to start selling some of my old rentals because they suck up too much time for the amount of money they generate. My end goal might be to have 4-5 paid off properties generating around $200kpa to live comfortably
-with my compulsory super I have a lot ($1m+) exposure to the share market already. I also have a defined benefit from my days in the Govt so I’m pretty diversified
-I have 1 year of full time paid leave including long service I can take 2 years at half pay and come to think of it that’s not a bad idea. Reps off r/c

[whitepaper]

What do you do for a living Op, aside from the side hustle?

[OutdoorsBrah]

Congrats brah. repped



How much of that ~190K is profit after expense withholdings?

[r32gojirra]

Congrats brah. repped



How much of that ~190K is profit after expense withholdings?

$190k after tax profit

I can withdraw that whole amount and spend it on hookers and nose candy and nobody can say anything about it.

But I won’t. Probably.

Always on rc wichya bratok

What do you do for a living Op, aside from the side hustle?

Audit and risk advisory

[Casca]

That's not really making $190k in 15 minutes. Unless you bought it for whatever $$$ and then 15 minutes later turned around and sold it for $190k plus on top of what you paid for it 15 minutes ago. Besides the length of time, you bought it. What was the profit over what you paid to own it?

No hate, just saying you spent time and money owning the property.

[Aristotelian]

Good stuff, OP.

Was now a good time to sell? May be an obvious answer but any real estate market I am invested in is not a seller's market for sure.

And in some areas development costs are skyrocketing too - I'm still planning to convert some of my rentals into blocks.

[kopikum]

how did you get the money to buy the property in the beggining?
every young guy who is into real state i know comes from rich daddy, entry price is just too big for normal people

[ApeXXXPredator]

Good job selling your kangaroo house OP

[r32gojirra]

how did you get the money to buy the property in the beggining?
every young guy who is into real state i know comes from rich daddy, entry price is just too big for normal people

Did my time as a lawyer, then an economist and most recently an auditor. Grinded a few years doing controls And compliance testing but now most of my fees are from sitting on committees and boards.

That income was enough to get the money from the bank. Dream is to finance using my own funds.

Also I’m not young - age:40