Hello, everybody welcome back to the property apprentice training. I'm the author of the property apprentice out earn while you learn. And as fully by now you have seen that even while you are learning to mess in property, which takes time you already can make money and will make money if and only if you implement what I've taught you and take action, right? Nobody gets switched from thinking about it. But I give you all the tools, all the strategies to be a successful property investor. So the only one who can stop you is you.

Remember the mindset. Okay, so to internalize. What's that you are successful. A public investor you know what time it is? declaration declaration time yes okay so everybody also if you're watching this on the video Please repeat after me I'm a successful property investor I'm a successful property investor take action to get my goal is I take action to get my god laughs generating more and more passive income. I love generating more and more passive income I make money by not by I make money when I buy switch off my emotions when making investments decisions.

I switch off my emotions when making investment decision I overcome my fears. I overcome my fears less than grateful now that money comes to me easily. I'm blessed and grateful that money comes to me easily. I'm financially free. I'm financially free. Okay, great.

Thank you. Don't forget to switch on your motions again after we made the decision to Otherwise he'll pop on my mind. Okay, so let's go into the top of the pyramid, our next module, keep building equity. What is equity referred to in property. equity is the amount of, if you sold the property and paid off all of the debt or loans in the property, it's the man that you are that I'll be left over with as the investment. Alright, so equity basically, is the, in other words you mentioned correctly, it's the just I use different words is the difference between what the acid is was minus your liability against it?

Right. So that's what in property we call equity. I know the board has different contexts in different or different meaning in other contexts. bought in property. That's what it means. And in this module, we're gonna discuss how we can increase and build up more equity for our long term wealth building.

I am, I read a good quote the other day. It said, poor people focus on income. Rich people focus on networks. And that's what we focus on here. equity is building appeal networks over a period of time, by increasing the balance of your asset and decreasing over time, the amount you owe against it. In this context, we have actually also one thing that can help us potentially that normally people fear and dislike Which is inflation because if you have inflation as we discussed in an earlier module, it automatically pumps up your value of your asset and it at the same time makes money was less but he'll be talking about money that you owe.

So you owe less in terms of real money. That's why real estate is such a beautiful thing. Yeah. Okay, so let's get into it. Basically, as we already mentioned, just for the purpose of clarity like to have it on a slide, like equity in property means the difference between the market value of the property and its liabilities and the market value SPF learnt in the previous module. is of course determined by the market obviously, but in the strategy of force appreciation can be influenced by you as well by increasing the value of your own property versus the surrounding properties that are on the market.

So, that way we can also build up big micro teeth in that sense. So, in the long run, typically, property prices will appreciate because of inflation because of more population and many other reasons. Unless of course, it's it's not always the case obviously, as property also moves in cycles, what a long run unless there is certain structural issues in our area, like I was like to use Detroit as an example for that, or what's happening right now in Singapore. If the government interferes into the market and it's not left to the market forces, then of course, it might be a little bit different. It's pretty sure that if the government had not interfered in Singapore market, the price would have been climbing up over the last two, three years. Instead of slightly going down.

But left to its own device. Typically, property prices go up and built equity foil and so therefore, basically, any Sachi which means you hold your property, not fixing flip, buy, sell it right then you can't build equity. What an Excel sheet that is long term can help you to build up equity. You should tell you all at the view your property portfolio, which is actually something I started doing this morning. So as the year end and see what I want to do, what do I want to keep them or do we want to kick them out. Because if a property does not perform well anymore, maybe you know, it was some It was good for a couple of years, but now it's not so good anymore, to have better use for your money.

No emotions, kick it out and buy it. So that's something you would want to periodically means. At least yearly, maybe half yearly. I do it half yearly. Then now the opposite strategy is that you can utilize what I call sandwich options. You know what a sandwich is, right?

It's whatever flavor that you choose between whatever two slices of bread, whatever bread you like, right? So sandwiched in between. And what we do with sandwich options, we also sandwich something in between something. And that's our sales between a buyer and a seller of the option. So you've learned about purchase options. You can do a sale option as well, like for the let's say in the previous discussion we had about the developer When you buy an option from him, you're an option buyer.

The developer is an option seller. Now, you can do both at the same time, if you find the right property. And the person says the property is willing to grant you a buy option. And if you don't, if you then go around and find somebody else, you can sell the same property for as the seller of the option for higher price, basically, price differential, this could be the tenant for example. Or it could be anybody else. Right?

So simply, let's say, for example, you find this property that somebody wants to sell 400,000 so You're asking, I want to buy a property, as we learned before, you can make a better offer. But you don't pay now you get an option. Then you have the option buyer. So now he has an option to buy this property. Then you can, for example, ask the tenant, hey, in five years do you want to buy this property then you to sell off the option, right? So you sign agreement with the tenant or anybody else doesn't have to be tenant.

What is the easiest targets for that? Because he loves the property and maybe can't afford to buy it now, but in five years, he can save some money and then in five years, you can then decide same thing as before by the exercise the option to buy and the other party can also acts as a exercise daily options against you to buy or fuel Don't care because the price is higher. That's so that's what sandwich option means basically is simply combination of you as an option buyer and option seller at the same time for the same property but for different price. And this is long term, but it's not a one one hour listing is five, seven years again, all which you can build up equity because the property will go up in price and you have the price differential built into the contracts as well as the market and this doesn't mean that your tenant or your option seller, necessarily exercise the option five years against you.

So you see less, some upside potential if they don't exercise it for whatever reasons, and the market price has gone up. above what you have agreed with the original Or no, then you can make additional profit. And if it has gone down, you just simply don't exercise the option. Unless you get exercised by the other side, then you just exercise balls and then it just goes from here to there without you being involved. So that's what these strategies are the the purchase costs and transaction costs associated with these options, the same as if you're buying and selling the property directly. So for instance, you know, in Australia if you buy or sell a property, if you buy a property, you're gonna pay stamp duty.

When you do this transaction, do you have to pay the stampede, you would have to pay the stamp duty but only at the point when you exercise the option in five years. If you decide not to exercise it, then nothing ever happened and See probably still belongs to the original owner. Therefore there was no change in the land registry or whatsoever, then there's no stem to behavior. Right. But the differential between the purchase option and the sale option has to be big enough to account for stamp duty and profit and Ellicott in a way Yes, unless you are able to structure it properly so that you don't even get involved. Really.

I mean, theoretically. Yeah. I'm not totally sure. Just when you have to check with a legal professional if you want to do this, by law, you could structure it in such a way that the person who you've sold the option to who then gets to be a new owner of the property can buy directly from the person that you have the option with Without you in owning it in between these two if you are able to structure it, then this form is solved. But you have to check with a legal profession I not a legal professional, no. So I cannot advise you on that.

If that is not possible, then your rights then you would have to factor these numbers in. Okay, great. Sounds good. Thank you. So this is not really maybe directly equity, building a low swashy although it could be and I'm not going to discuss it in great detail also. Of course, we cannot only invest in residential properties, but also commercial or industrial properties.

Some of the things if you talk about potential versus commercial, less industrial are the same. For example, you only care about numbers and not a property property. But a lot of things are different from new residential markets. And even within the commercial markets, if you want to go into that, there's also different by different rules, for example, for an office building was a retail mall is quite different, obviously. Right? In terms of how we look at it and location, for example.

Let's say, for an office, you have an office building what would you say within that building within the same building, You have different units available, which would be the one you would prefer if they're available that sets a new launch in your first interview with a free choice of a new office building, which unit would you say is more desirable? All the ones on the top right, nice view and all that. Whereas retail shop, what's the prime shop location in the retail mall? balk at the entrance or the escalator. Yes. So, you have to know how these markets behave differently if you want to go into this kind of markets.

Also in industrial properties, industrial properties I'm not, I've done a number of commercial, but nothing real industrial yet for industrial property, mostly, it's for own use it somebody wants a factory, they build a factory for their own use and not for somebody else. So it's but it's something that if you want to look into it, you can, even Singapore or some of the amenda. Like what we call flats units. Flat, it means they're not only building like a flat in our residential, so the industrial units might be a few hundred square feet. And then the naval is a different company, but it's industrial use for production of furniture or shoes or whatever. Those can give reasonably nice yields.

In Singapore, I've seen six 7%. Some of them which invest actually only get one or 2%. So if you want to stay in Singapore that might be something to consider. But industrial market I'm not very familiar, this commercial. I'm familiar. I've done a number of commercial transactions in the UK.

I've got a office in Glasgow, I've got some thing in London and beware that HMO by the banks is also commercial. So, what is the real difference here that you need to know also for HMO if you want to go into the space is that evaluation by the valuer and the banks for residential and commercial is very different. So how does it do? I was just waiting to finish so for residential what what do you think they look at to come up with a market value for a residential property What does the bank or the valuer look at in terms of which factors playing a role? The mostly be looking at what they can sell a property for in a hurry. So comparable sales land value, that sort of thing.

Land value definitely location, obviously comparables, yes. decides to condition these are factors to look at in residential property. What is common with the commercial properties location? What's the patient's hopes important, but even location might be different, but if you talk about our example just now, to retail shop in the same building, the retail shop with the same size that sits on the ground floor right next to the main entrance will have a different valuation the same size unit on the third floor right in the corner at the end when nobody ever goes to will have. So the location is different even though the address is the same. street address is the same.

So for commercial what devaluation basically is driven by Location fecteau and the rent you can fetch. And that's why the the unit next to the main entrance is valued higher than the one on the third floor at the end of of the corridor, because it will fetch a much higher rent. So that, yes in residential, they devalue, they don't care how much rent you can fetch, like they go by these factors we just discussed, but for commercial, basically, they look at you know, how much rent Can you fetch in this location, multiplied was a factor. That's gives you the valuation and that's why one of the reasons why when you talk about change of use, you can make potentially a good profit. If you look at a property and you say, how much is devaluation? As a residential and how much is the valuation in this location for commercial units, and sometimes they might be similar, but sometimes they might also be very different.

And if you then apply that change of use strategy we discussed in the last module and then you just go to the bank and get some money out of that. Even if you don't want to sell it, you can sell it also. But even if you don't, just by changing the valuation methodology evaluation goes much higher and do without some equity from the bank for that you get a good profit to Apple. Yes. So is that that would mainly be changing from residential to commercial or Canet work in both directions what walk in either direction, depending I mean, there's no rule for that. I think it largely depends on the actual scenario.

The extra property that you're looking at and the surrounding areas what what is there right? And for example, if you in the city center and you have a house number 12 Smith Street and number 14 Smith Street, would you say the valuation might be different for commercial property? Yeah, I mean, depending on what your goal is and where 14 is and how big they are. They were built I saw I mean, same I'd like maybe like in many countries, all buildings still the same, right, that brick and so the buildings the same but What could be different between 12th Smith Street and 14 Smith street same size, same age could be different rent? Yeah, definitely the rent could be different. And I will be commercial one could be residential, mostly commercial.

My scenario. That's what I didn't tell you is number 12. Smith street is the corner unit with the intersection to another road and 14 is obviously next to it. And the corner units will definitely be higher because it phases to the streets. So that's something to look at. And you know what business McDonald's is in how to make money buying and holding Real Estate's the same money for real estate and franchise fees, but not from selling burgers.

Yeah, they know how it's done right. So they would go after 12 mistreat us It sits on a corner it can be seen from two roads rights, which is a much higher exposure to foot traffic to branding to visuals than 14 which is right next to it, but it doesn't have that advantage. Right. So that's that's the thing in commercial property. Then another thing that is different in commercial property compared to residential is units are almost always lead pair. That means empty four walls and nothing inside.

So the tenants would have to buy heating Eric on furniture, whatever they want to have in there, they do it themselves. Whereas residential, usually you would have at least a bare minimum, like he does our phones and follow these paint the walls and put in some basic stuff, potentially even fully furnished, and HMO definitely so in details potentially Also, my details I have, they're all also fully furnished. But commercial definitely is almost always like bear. What advantage for an investor Do you think this is one is very obvious for the other one, maybe less so. Two key advantages of letting their I guess living bear means that Any commercial tenant could rent the property because they have, they get to fit it out of the way and they want it to be as low maintenance for the landlord, because all that the landlord is responsible for is this shell on the tenant has to do the inside.

Lower costs for the landlord because they didn't pay for the furniture. Correct. So do those study obvious once a less obvious one. Although it is actually obvious, since it's in the next bullet point. Because of that, once they're in, they're in. They are quite sticky.

Even if you increase the rent, they and unless it's totally unreasonable, and all the randomize really bad, but in normal circumstances, if you increase the rent, they will just accept it because they don't Want to find a new unit, then if you let beta means they have to return, they also have to tear out everything they put in and move it to a new place, which is a big hassle. And if a business is well established in a place, and the customer knows it, and you know, they know how to find it, and they don't want to move, basically. That's the good thing about this. So, as long as you are increased rent, as long as reasonable, I'm not hundred percent. I just say, Okay, I'm a company as long as they're profitable, that is paid. That's it.

So be aware of indirect costs in your calculation stuff. Which you have to find out from the seller, that as the owner or the agent, how much he direct costs. You To pay like because in a commercial property that does lifts that escalators that's common lighting on the corridors sleeping security guards and so on which somebody has to pay and guess who has to pay for it? You Yes. So, it will be a number that is usually proportional to the size of the property to say they will tell you I mean, but it's maybe so many dollars per year per square foot that you probably occupies within a building. So just factor it in into calculation.

Okay, so, but this could be something that is quite nice also commercial properties. Obviously, you have a very different to diligence process to do and different target markets. But don't discard it. I mean, it can make very good investments too. And if you have a good tenant, like in my office in Glasgow, I have a multinational company, multi million dollar company. So they pay on time, they don't cause any hassle they but sometimes maybe it's the small little individual shop owner, one man show and they're struggling in a business and can't pay the rent of course, then it's also harder to take action against them.

So just be mindful of these kind of things when you move to commercial Okay, it's fair to say then that not all commercial tenants are equal same. So some small individual businesses much more than a multinational big kind of stable, existing company, not all are equal, same, like residential also can have the same form. And then we come to a tenant selection is considered. I wouldn't say unnecessary. It's small companies are no good, but I'm just saying, I mean, if the company do well, and it's fine, but I would say a bigger company gives you probably the less likelihood of facing trouble with you. But if there is any, then they also have resources to get a better lawyer than you.

Okay, anything Questions on on this. Now that makes sense. So now we have discussed 14 different strategies. Yes. Ah, sorry, there is one question. If I'm buying a commercial property does sometimes you buy it with a tenant in there or do you always typically buy them there and have to go find the tenant as well.

If you already have a tenant in there? I think that's if it's a good tenant. Even better, you already know who they are your know how much to pay. That's no more guesswork involved. I would definitely say sight is a good thing. If the tenant is the right tenant, which you can find out before you buy.

Okay, and then if, like, say you buy with a tenant in place and then that tenant leaves stripping the property out and making it best is that the landlord's responsibility or the tenant gets it bare, he has to return out there. Right? So that's why I said it's very sticky didn't want to do that dismantle everything. And they might have, depending on the circumstance, spend a lot of money or it might even be custom fit for them. And they just have to throw it away. And they have to spend money again to make the unit there.

So yeah. Okay, good. Okay, so now we have learned 14 different strategies that you can deploy. One thing you should now do, I will also ask everybody who's watching this is not to decide which one is for you, and which one might be not. Right. You cannot do all 14 also in your workbook, you can fill in these pages.

About different strategies and on the next page in the workbook is also what you will see on the slide now. Okay, this this small office in Glasgow By the way, on the on the third floor, not the whole house, the third floor is it's right in central Glasgow called 100 meter from the Central Railway Station, which I bought it or 20% bV put in a multinational company as my tenant. And guess about 8% yield also on the money. Okay, now, this was the slide I'm referring to. I don't want to waste time during this training to do that, but please do it afterwards or tomorrow. And also when you're watching this, give it some thought thoughts or listen to the recording again, what is stretches me and then decide Once all for you, you can put in percentage distribution, like I wanted to 30% by to that 20% HMO and whatever, it just has to add up to 100% in the end.

For you, Adrian, we can maybe briefly discuss it in our next call. And so I'm aware of what your priorities are, and focus on it a bit. For everyone else who's watching this recording, please, this is a very important decision. So don't do it in 30 seconds, give it some thought thought and then make a decision. And of course over time, this can change as we mentioned earlier, due to age job, or family changes, so you can change your strategy all the time, of course. So this concludes the stretchy sections.

Once you have made Your initial decision on strategies, then it's time to put them obviously into would use it because if you spend time and money for this course, but then do nothing with it it's kind of what I call self development instead of self development. You put a book on a shelf and collect dust and it was meant to be a self development course. why some people yeah, they they want to get more out of it. That's why I've created my mentorship program that can help people in better than this this class. And you will have to make a decision whether you This is for you or not for you. So let me briefly show you a short video by professor who's Chan of woodcuts University quite prestigious university To meet us on a TED talk, I assume you know what TED Talk is right?

Okay, so some pieces from their hard choice you'll face in the near future. It might be between two careers, artists and accountant, or places to live the city or the country. What makes a choice hard is the way the alternatives relate. And an easy choice. One alternative is better than the other, and a hard choice. One alternative is better in some ways, the other alternatives better in other ways, and neither is better than the other overall.

I remember thinking to myself, if only I knew what my life in each career would be like, if only God or Netflix would send me a DVD of my two possible future careers, I'd be set I compare them side by side. I see that one was better The choice would be easy. But I got no DVD. And because I couldn't figure out which was better, I did what many of us do and hard choices, I took the safest option. And I can tell you that fear of the unknown, while a common motivational default, in dealing with hard choices, rests on a misconception of them. It's a mistake to think that in hard choices, one alternative really is better than the other.

But we're too stupid to know which, and since we don't know which we might as well take the least risky option. hard choices are precious opportunities for us to celebrate what is special about the human condition that the reasons that govern our choices as correct or incorrect, sometimes run out. Now, people who don't exercise their normative powers and hard choices are drifters. We all know people like that I drifted into being a lawyer. I didn't put my agency behind loitering. I wasn't for loitering.

Drifters allow the world to write the story of their lives. They let mechanisms of reward and punishment. Pat's on the head fear the easiness of an option to determine what they do. But I, people who was trained and getting all this amazing content that you also get to hear right now and with only half done, why people don't succeed is they simply don't have the confidence to apply what they've learned the noise, but not really sure you know how to do it. Because in the mind, they might be afraid of the risks, which we'll learn in a future model how to manage it, or just making costly mistakes and they simply procrastinate and then don't go ahead and do it. Or they might start a little bit but in real life takes And maybe nobody holds them accountable for it and pushes them ahead and sort of fades away when life takes over.

And then it was studied shelf development. But what if instead, you could invest with confidence and certainty that your investment is gonna work out? What if you knew how to overcome your fears or objections you have, and be sure not to make costly mistakes. Would you go ahead then? What if you could rely on for the expert as your accountability partner to ensure you succeed? What do you do with them?

If otherwise he would not? Well, if you answered any of these questions, yes. Then listen to the solution. That's why I've created my mentorship program that helps you to gain confidence over time to leverage your money knowledge and expertise, make the right decisions for your property portfolio and hold you by the hand and be your accountability partner to guide you step by step in the right direction for you to succeed, to make money to build up as an income to become financially free. That's something that interests you. Then listen to how it works.

So my apology apprentice mentorship is a one whole year active mentorship program. That means I'll be there for you for an entire year. That's no rush. As I mentioned earlier, property is not a get rich quick scheme, but it's a get rich for sure. Slowly scheme. So one year I'd be there for you actively mentor you hold your hand to ensure your success and not even guaranteed you have absolutely nothing to lose.

No risk. So the benefits of this mentorship for you is I will be there for you. And you will earn already while you learn by getting your first or subsequent property that gives you money to your pocket already while you're still learning how to next one, so that over time you will gain the confidence that you need to make the right decisions eventually independently while you don't need me anymore. You will be able to do that right? Practice makes perfect as sometimes they say once you have done it a few times, then you definitely will have the right confidence and gain certainty that you will make the right investments decisions. avoid costly mistakes with my help with my experience and you learn how to yourself learning by doing and you earn in the process into your own pocket.

I will help To eliminate your fears, and concerns, which are really only excuses in your mind that stop you from making money. Yes, it's in your mind as is that and fears are easy to overcome. And all you are stopping yourself making money, but I will be your accountability partner to solve this problem for you and you will make money guaranteed because I'm your accountability partner, to ensure you do the right thing and don't do the wrong thing. But I will also push you ahead of it. Right if you don't do anything, I'm not talking about a single day or seeing the week if you want to go on vacation, that's fine. But all period of time if you don't proceed and you always procrastinate, I will push you but I do want speed we have an entire year of together.

So if we wanted to go bit faster. If you want to go a bit slow, fine. But if you don't want to go, I push you. You will also gain fantastic property deals for me for you. In the next module on sourcing, I will show you some of the resources that I have every day I get two or three good opportunities. And I can forward those to you that one of those will be right for you.

And you get them served on a silver platter really, I tell them and how much better can it get. Or I help you in finding your own property opportunities. If you don't like the ones that I have for you teach how to do it. Once you have it. I will help you to evaluate them to make sure pick the correct one. I will help you to overcome the finance challenge foil just to make it happen.

Take action, make it happen don't procrastinate in the right opportunity. It's it's really Really a no brainer, you can and will make money in whatever spreadsheet that is active or passive, it doesn't matter, it works. My best friend should be your new best friend leverage. Right? As I mentioned, you can not only leverage on money, you can also leverage on expertise, in this case, my expertise, you will have direct access to me for the entire year, email, WhatsApp, Skype, or potentially also in person. If you're in Singapore, or in a country that I visit, so you don't get stuck, and I can help you to overcome these challenges that surely will occur.

It's always something here and they're unexpected. But I've been there done that that's what a mentor is good for, to show you how to overcome these obstacles. And so often for you potentially, you might even be able to co invest Gotta sneak into some fantastic rate property deals, you can bet that if I put my own money into a property, that's a good deal. And I sometimes share this with my students actually the office in Glasgow that you have seen early on, it's not my property, per se. It belongs half to one of my mentees. We have done this.

We've done this together. So this is what what we can do if you partner up with me. So if you keen on really getting ahead, getting it done, say I want that. Right, I want that. So because if you now think, yeah, I'm gonna figure it out myself first, and maybe later I will join you. We're not just shooting your own foot, because later means never.

So what's the value of joining To gain confidence in all investments, you can take many calls such as for around $2,000 for that avoiding costly mistakes in property. If you buy the wrong one could easily cost you 30,000 potentially a lot more. There are many courses on how to overcome fears you can join those for around $5,000 to be my accountability partner, I can easily get $1,000 a month, I actually charge 500 an hour for private consultation. So 1000 a month is nothing 12,000 access to fantastic property deals. A ballot is a 20,000 because that's what my last mentee made when we bought this unit in Thailand together. We had 40,000 instant equity which we shared half half, but you can potentially get more but make you happen for you, sweetie priceless direct access to me Not my team, not my assistant but to me easily thousand dollar months.

I'm reachable seven days a week. I might not reply within a minute. But I will definitely apply as soon as I can. Because I love what I'm doing. So I don't mind I don't care Sunday Monday, they're all the same to me. So I'm there for you.

And potential to co mess together with me $20,000 which gives a value of more than hundred thousand dollars. It's literally the one of one of property investing for you. So I mentioned guaranteed I guarantee you that if you get mentored by me, you will definitely buy at least one property within a year and easily making the money that you paid for this mentorship back and more guarantee. It's I mean, there's no way you could fail. Nobody ever has, but if potentially you could not Make a small investment into this membership back within one year, then we'll extend it until you do. So you have absolutely no risk, nothing to lose, you can only gain that tremendous value of $100,000.

I know that question on your mind is, yeah, you're fine. But how much do I have to pay isn't really relevant? I think it's the wrong question. The question is, how much value do I get? And you've seen that, or do you have to invest? To get that money back is irrelevant.

It's a small number. And so for those of you who are interested to join my mentorship program, please contact me at the email address that I will show in a moment. And we can send Have a call and any questions you have, you might ask them and then see whether this is for you. Looking forward to hear from you.