Timestamps:
Knowing When to Ask For Guidance
Working With a Buyer’s Agent
Having a Good Mentor
Guidance From Podcasts and Books
Educate Yourself
Luck Versus Skill

Resources and Links:

Transcript:
 

[17:52] I've really found the podcasts handy. Just finding out what other people in my situation — how they get their mindset around things, what education is available, examples of stuff that they've done that's failed, and other positive things that have happened.

           

This is Property Investory where we talk to successful property investors to find out more about their stories, mindset and strategies.

 

I’m Tyrone Shum and in this episode, we’re back with property investor, Grant Hubbard. He delves into his decision to use a buyer’s agent, and how this has helped him to achieve success. As well as this, he details some of the resources that he has used and the importance of educating yourself when at the start of your own property investing journey.

 

 **END INTRO MUSIC**

 

 

In our last episode with Hubbard, he mentioned that he and his partner purchased a dual living property in Marsden, Queensland. But, unlike his previous investments, he decided to use a buyer’s agent. Let’s explore the reason behind this.

 

[0.:24] I've seen sort of how much goes into doing a small development. You know, my brother's kept me in the loop. He hasn't shown me exactly what the process is, but I know that there was an — it's a massive process. And, you know, acquiring the land and the house for the right price is, you know, one of the main things. And, you know, I'm a beginner investor.

 

[0:50] So, I wanted a little bit of a helping hand to locate the place. I guess the confidence was a little bit low to sort of undertake that myself. So, Dragan really resonated with me on your podcasts with regards to he wants to find big land sizes that have, that you could manufacture growth. You know, subdivision and stuff like that really, really grabbed me at the time. So, yeah, I just needed a bit of a helping hand to get the ball rolling and yeah, he's been great.

 

[1:45] I did look into just buying, you know, regular houses, small blocks but the Dragan did like I said, he resonated with me with the larger blocks. And I've always had a little bit of interest in getting into development. You know, obviously starting smaller. We didn't start too small with Bellbird Park but that was back a little bit, so.

 

How did Hubbard and his buyer’s agent land on the property at Marsden?

 

[2:28] He comes to you and well, firstly, he wants a value. He needs to get your buying capacity and, or borrowing capacity, sorry. And you find out a value of which you can spend. Yeah, I sort of said to him, 'look, I've got this other development, you know, with my brother and I'm very interested in finding out, you know, what's entailed with that'.

 

[2:50] Yeah, I just sort of said, you know, I want to do a small development, small scale. I'm currently doing a little bit of training on development. So, this was kind of a plan for the future. So, I sort of said, 'yeah, I want a block that I can do a small subdivision in'.

 

[3:08] As for the area, I kind of left that in his hands. You know, I'm paying him a service to find me in the right area and the right deal. So, yeah, and he's done that. It's a great deal and I'll sort of work on my training in the development side and maybe a little bit down the future, we'll do this one ourselves.

 

Let’s hear about how this investment is treating Hubbard so far…

 

[3:52] We're currently getting like it's on a periodic lease at the moment. So, we're getting $550 but with the market we're going to up that rent when we take over when settlement happens. So, I want it to three subdivisions is the plan and yeah. It's a brick veneer house. It's as I said, six bedrooms [and] it's a great house.

 

[4:26] I believe a single family is in there at the moment. A large family and yeah, I think we'll keep those guys in there. They're pretty keen to stay but yeah, down the future there is a dual living capability. There is a kitchenette bathroom downstairs. [It is] two bedrooms downstairs and four bedrooms upstairs

 

The property is on a 1450 square meter block and unbelievably, Hubbard purchased it for under market value.

[5:50] We put in an offer at $609,000 thinking that there's no way, and yet lo and behold, it came back, and it got accepted. And yeah, went under contract and worked on finance. And we've got the ball over the line there. And actually, a funny story with that it still went to market. It still went on to realestate.com following the contract, sorry. And the owners actually got an offer of $730,000 after the contract. So, that was very interesting.

 

[6:32] So, I don't know what the owners’ plans are or if they made some sort of a little mistake there. But yeah, we were very happy with the price and, you know, for someone else to put in an offer of $730,000 — well, it's under contract, you can't go wrong with that.

 

Hubbard describes himself as a beginner investor, so this experience did make him a little nervous.

 

[7:15] It was very nerve racking that time when I heard sort of this other offer. I sort of said, are we right here? You're not gonna pull out and, you know, screw up our contract and away they go? But yeah, it's all gone through.

 

[7:33] We will settle next week I believe, or in the next couple of weeks. So, yeah, we're just finalising the all the finance stuff and we're good to go.

 

So, what is the plan once the property is settled?

 

[7:56] The tenants are already there. So, the tenants are established, and they'll just continue over. Yeah, I want to work on my education still with that with the subdivision. I'll work with Dragan in the future and see how that all goes. I don't want to rush into anything there for obvious reasons.

 

[8:18] We'll sit on that one for a bit, just work on things. And we're actually going to look for our own place after this one. And yes, sort of settle down a little bit. We're in a one bedroom apartment here at the moment. So, we need to get out of here and get sorted.

 

 

Coming up after the break, we’ll hear about the mentors Grant Hubbard has had along his journey

 

[19:38] He's been really informative. Yeah, we have developed a little bit of a friend relationship, I guess.

 

He delves into what resources he has found to be the most valuable…

 

[17:49] I'm a beginner but I've really found the podcasts handy.

 

He shares some important advice…

 

[20:35] Education, I guess, I was a little bit slow on that to begin with my schooling.

And that’s next. I’m Tyrone Shum and you’re listening to Property Investory.

 

→ Insert Buyers Agent Australia Midroll

 

Having a good mentor can be crucial in property investment. For Hubbard, his brother and more recently his buyer’s agent, provided him with necessary guidance.

 

[19:38] He's been really informative. Yeah, we have developed a little bit of a friend relationship, I guess. We're communicating quite a lot and yeah, I definitely owe him a beer if I've managed to get down to Sydney at some point after this latest deal.

 

[20:06] Dragan was really good. He was, it was, we tried with about three or four other properties, and it just sort of didn't work out for different reasons. And yeah, sort of third or fourth time lucky and we got there and got it over the line this time.

 

 

In addition to his mentors, Hubbard received guidance from other resources…

 

[17:49] Like I said, I'm a beginner but I've really found the podcasts handy. Just finding out what other people in my situation — how they get their mindset around things, what education is available, examples of stuff that they've done that's failed, and other positive things that have happened. So, podcasts would be probably number one for me.

 

[18:13] I'm not a massive reader, to be honest. I have got a little bit into the reading. So, but yeah, Property Couch, your podcast obviously, Australian Property Mastery. I've got them sort of written down here, I'm cheating a bit. Also, the Brisbane Property podcast because, obviously, I'm in Brisbane and that sort of interests me going local.

 

[18:38] And then yeah, the few books that I have read. I've obviously heard Rich Dad, Poor Dad from almost every one of your guests that you've had, so I had to jump on that wagon. And that was a great book. It really helped with, you know, mindset and stuff like that and making sure you're doing the right decisions. 0 to 130 properties in 3.5 years. It's a great read. It's crazy how he did that. And My four-year-old the property investor. So, a lot of the beginner books. I'm sort of just working up to the more advanced stuff, but yeah.

 

[19:20] Podcasts and books. And I am doing this little property course on the side which is helping as well.

 

The property course that Hubbard is taking demonstrates some of his best advice…

 

[20:35] I guess I was a little bit slow on that to begin with my schooling but educating yourself and just having good relationships with people. You know, seeing their side. Seeing their side, developing relationships and, you know, just being relaxed. I'm a pretty laid back person. So, don't sort of get too serious and think about things too much. Just throw yourself into the game and go for it.

 

After hearing about Hubbard’s journey, let’s hear something that he would say to himself ten years ago…

 

[21:20] Go on that ski trip. Go to the snow. I don't have any regrets about doing that. That was, you know, a great period of my life doing that. So, that was around 10 years ago. So, I would say to myself, look, go and have fun and do your ski seasons and have a ball. And, you know, there's enough time later on to really clamp down and work on your education and your future and stuff like that. So, like I said, I'm a pretty laid back person. So, just have fun in the early days and yeah, work things out later on.

 

Hubbard does not regret any of his experiences, and they have led him to an exciting time in his life and its future.

 

[22:15] I just got engaged. Just got engaged a couple of weeks ago. So, we've actually, I bought this property together with my fiancé. So, yeah, we're gonna work on getting this development stuff happening as well [and] work on my education. We want to move to our own place.

 

[22:32] So, I guess, yeah, purchasing our own property. It may be not the dream home but something just sort of a leapfrog from this one bedroom apartment. I guess I'm getting on in age now. So, I guess maybe kids is on the cards in the next year or two. So, it's been a hectic few weeks now, and in the future, nothing's going to change.

 

[24:06] Well, Grant, I know we've talked a lot about, you know, some of the really interesting things [that] have been going on through your whole journey and stuff. How much do you think your success currently has been due to your skill, intelligence, and hard work? And how much of it do you think is because of luck?

 

[24:22] I did have a lot of luck in the early days. But, you know, there was a little factor of, you know, taking the leap of faith and, you know, I put a lot of trust in my brother. He did a lot of due diligence for me. And that's what family is for.

 

[24:41] So, you know, he did a lot of the work in the early days. So, a little bit of luck sort of begin with but, you know, if you work on your education and get the right people around you. I mean, Dragans done a great job helping me out there. So, yeah, as long as you're willing to reach out to other people and get a bit of help along the way. Yeah, it's just all about taking that leap of faith, I guess.

 

[25:32] I mean, if I tried to do this myself, there's no way I'd be in the position that I am.

 

 

Thank you to Grant Hubbard, our guest on this episode of Property Investory.