In Show 066 – What to look for in an investment property with Scott Lachmund originally broadcast on Facebook Live on Wednesday 28 February 2018 we explore this interesting topic.
Download the workbook here 066 – Worksheet
Today we feature an interview with Scott Lachmund a real estate agent based in Caboolture. Scott is also the founder of 4510TV, a community run online TV station. Scott is a really interesting guy with a lot of great ideas about how to build a personal brand. He also some great advice about how to buy property as an investment.
Scott was born and raised in Caboolture and started working in the family real estate company shortly after high school. His first investment property was his first home that he purchased at 25 for $112 thousand and sold it for $250 thousand just a few years later. His experience building a business has largely been about learning how to manage people.
“Consumer behaviour has changed a lot over the last 25 years,” he says.
Scott decided to start 4510TV as a way to give back to the community. It started as a way to market the properties that his company was selling. Eventually he started to help market and promote local charities and other community events. The has resulted in a site that has garnered millions of views in just a few short years.
“It’s a community platform intended to share local stories that may be ignored by larger media,” he says.
Scott really believes that property is a sound investment. He has never used other investment vehicles because he loves the solid feeling of bricks and mortar. Scott has a number of recommendations for people considering buying. Location is the first consideration. Good access to shopping, schools and transportation is really important. He also says affordability and serviceability of a property has to be considered.
“You don’t want to be pumping money into a property that you can’t recover in rent,” he says.
There are ways to mitigate others risks like non-payment form a renter by using landlord insurance. You can also counteract the risk of a vacant property by purchasing in a location that is sure to have high demand for the foreseeable future. Much of this advice is applicable when purchasing your own home.
Scott says there are a number of people you need on your team before you purchase an investment property Getting good advice from an accountant is very important as well. They will be able to guide you through potential hazards like depreciation and taxable claims. The next person you need is a solicitor. Align yourself with someone that can guide you through the conveyance process. Navigating through title searches and other legal paperwork can be complicated so be sure to choose someone with lots of experience. A good real estate agent will have lots of information about a prospective property. From easements to flood reports there are lots of questions that need to be answered by your agent before you make an offer. Too often people end up purchasing a property without getting good advice. Don’t try and do this on your own!
Scott ended the conversation with a few book recommendations. The first is Tribe of Mentors by Timothy Ferriss.
“You can flip to any page and any paragraph in that book and find something relevant,” he says.
Scott added that Stop Thinking, Start Living by Richard Carlson is a book that every business owner should read.
“I think business owners have a tendency to overthink everything,” he says.
More about this Show
We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. There’s a startling statistic the underscores the importance of developing a solid plan. The majority of business owners are just seven months away from losing everything. A single aspect of your business that is not set-up correctly can shut down your whole operation very quickly. Legal advice is not cheap and even when you can afford it there is often a divide between lawyers and their clients. We want to close that gap once and for all. We want to put legal knowledge and tools into your hand to prevent the worst from happening to you.
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