1. Master Class:
Treating Property Investment
as a Business
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2. Master Class:
Treating Property Investment
as a Business
Audio has commenced.
If you can’t hear us yet, please ensure
your speakers are on and turned up.
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3. Master Class:
Treating Property Investment
as a Business

4. We help investors
build and manage
their property
portfolios

5. In partnership with…

6. Real Estate Investar’s tools
Take the 21 day free trial at www.realestateinvestar.com.au

7. Portfolio
Builder
Portfolio
Manager
Portfolio
Builder
Portfolio Manager
Membership options to match your needs
Take the 21 day free trial at www.realestateinvestar.com.au

8. 21 Day Free Trial
No obligation – full access
www.realestateinvestar.com.au
We even set up & supply you with:

9. Portfolio Solutions Master Class
• Designed to share knowledge.
• Desire to provide extra value to our
clients.
• Great for both new and experienced
investors.
• Plenty of opportunity for Q&A
• Market leading industry partners invited
by Real Estate Investar to present and
educate.

10. Our special guest
Ryan Strous
Pre-Sales Specialist
Xero

11. Xero
• World’s leading online accounting system.
• Founded in 2006, dual listed on NZX & ASX.
• More than 900 staff worldwide.
• Trusted by more than 400,000 small
business owners and professional advisors.
• 100% cloud based. Nothing to install. Works
anywhere.
• Powered by daily bank feeds from 5,000+
banks.
• Same security as internet banking.

12. Treating
Property
Investment as
a business
How to use REI & Xero to
better understand and
manage your investments

13. 4 things critical to every business
• Team
• Strategy
• Goals
• Active Management
“Don’t treat property
investment like a game”.

14. Who do you need in your team?
Accountant
Mortgage Broker
Quantity
Surveyor
Property Manager
Legal Advisor

15. Portfolio solutions – Start your team here

16. Find REI & Xero friendly advisors

17. So what’s your strategy?

18. 1.75m
Australians
1 Property
2-4 Properties
5+ Properties
• Pays shortfall for
5 years+.
• Eventually sells
and pays down
personal debt.
• No retirement
income.
• Strategy &
numbers.
• Self funding
portfolio.
• $100-$250k+
passive income in
retirement.
• Has high income
or buys every few
years.
• Freehold in
retirement.
• Min. retirement
income.
Source ATO/ABS
3 levels of Property Investment

19. 1.75m
Australians
1 Property
1.266m
73%
2-4 Properties
457,000
25%
5+ Properties
28,345
1.7%
• Pays shortfall for
5 years+.
• Eventually sells
and pays down
personal debt.
• No retirement
income.
• Strategy &
numbers.
• Self funding
portfolio.
• End up freehold
• $100-$250k+
passive income in
retirement.
• Has high income
or buys every few
years.
• Freehold in
retirement.
• Min. retirement
income.
Source ATO/ABS
What level are you aiming for?

20. Poll:
How many investment
properties do you have?

21. • Pick the right strategy for you
• Pick the right strategy for now
• Keep an eye on what is going
on in and around the market.
Our top tips for 2015/2016:
1. Buy well (Get a discount)
2. Create Equity (Improve value)
3. Maximise Cashflow (Be creative)
Check out blog.realestateinvestar.com.au for more!
So how can you succeed?

22. 8 Type of Property Strategies
1. Capital growth
2. Discount
3. Renovation
4. Positive cash flow
5. Vendor finance
6. Strata titling
7. Subdividing
8. Development

23. Goal Setting 101
Remember ‘Smart’ goals are key:
• Specific
Who, What, Where, When, Which, Why?
• Measurable
How Much, How Many, What Amount?
• Attainable
Make sure you have the attitiudes, abilities, skills
and financial capacity to attain them.
• Realistic
You need to be willing and able to get there
• Timely
Make sure you have a timeframe

24. When setting goals:
• Create a big goal first
“I want to retire by age XX with an income
cashflow of $XXX,XXX per annum”.
• Break it down into smaller goals
“I want to be able to measure and track my current
investments for year on year comparison of growth
and cashflow”
“I want to add a property that will provide 25% of my
XX targeted income per annum”.
• Create action steps
“Create a report on my current position”
“Meet with my Accountant to review current position”

25. Let’s talk about Management & Tracking
So you’re investing in property?

26. The importance of tracking
• If you don’t track what you are
doing, how do you know how you
are going?
• When do you know the right time
to act next?
• What if you lose a receipt?
• What do you do at tax time?
• What will you do if you’re audited
by the ATO?

27. What are your options?
There are 4 different options for
staying on top of your investments:
1. Folders, envelopes & boxes.
2. Spreadsheets.
3. My accountant does it.
4. Systems & technology.
Each have their own pros and cons,
and you can also use combinations.

28. Folders, envelopes & boxes
The most common approach for the bulk of
investors. Documents stored away during the
year and pulled out at tax time.
PROS
• Simple method.
• Low effort required during the year.
CONS
• A lot of effort or cost come tax time.
• Easy to lose crucial documents.
• Things can be missed that might be claimable.
• No easily accessible data at a glance.

29. Spreadsheets
As investors add property, spreadsheets
become more important. Created for
purpose, or supplied by advisors.
PROS
• Readable high level data.
• Measurable.
CONS
• Require ongoing regular effort.
• Still requires files or folders.
• Need some basic technical skills.

30. My accountant does it
Under this scenario everything is simply
handed over to your accountant at tax time.
‘There you go mate!’
PROS
• No real effort required
CONS
• High cost and in arrears.
• Low visibility until you
get your tax return (and bill).
• Never market ready.

31. Systems & technology
Xero and Real Estate Investar have
integrated to deliver real time accounting,
management & tracking of your portfolio.
PROS
• Accessible anywhere.
• Live market and transaction data feeds.
• No more boxes of receipts.
• Less stress and accounting costs.
CONS
• Less work for your accountant.

32. Poll:
What best describes you?

33. &

34. 7 Tips to make next FY Simple
1. Add your properties to Portfolio
Tracker.
2. Request your complimentary Xero
organization to be set up and
connected to Portfolio Tracker.
3. Connect your bank accounts.
4. Commence reconciling your
transactions.
5. Add your trusted advisors to Xero.
6. Attach everything you can to Xero.
7. Send an email on the 1st of July to
get started with last years return!

35. Next steps

36. Poll:
How can we help you?

37. • Take the trial, or if an existing member, get
started with Portfolio Tracker.
• Add Xero by clicking the Xero logo on the
home page and completing the “Get
Started with Xero” form.
• Review the training videos and webinars
(including this one) available in our video
tutorial section.
• Real Estate Investar provide 5 hours of 1-
on-1 training to all new members as
required (valued at $745).
• Xero support is also available readily
through their website.
What can I do next?

38. 21 Day Free Trial
No obligation – full access
www.realestateinvestar.com.au

39. Plenty of resources available
Take the 21 day free trial at www.realestateinvestar.com.au

40. We also make it easy to find REI and
Xero friendly accountants
Take the 21 day free trial at www.realestateinvestar.com.au

41. 21 Day Free Trial
No obligation – full access
www.realestateinvestar.com.au
Questions?