What can a property coach do for you

What can a property coach do for you?

Not many people know Ron but many have heard of Tofu Shop. For those of you who don’t know who I’m talking about, Ron Fong founded the Tofu Shop chain and is now a highly successful property investor. He’s accomplished so much in the property market to the extent that he has become a property coach. Yes, he’s paid to coach and teach people how to invest in property.

Which brings me to the topic of this post… What can you learn from a property coach?

Well, today I found this presentation given by Gary Lin. I first heard about Gary Lin in a previous talk by Ron Fong. Ron Fong coached Gary at one point and here I briefly summarise what Gary achieved from going through Ron’s coaching programme

• Just 3 years into the programme, he accumulated $1.3 million of equity. 5 years in the programme, he attained a portfolio worth $6.5 million. By the way, Gary is only in his 30’s and is already a millionaire. At least on paper he is.
• Gary Lin learnt to stay away from pythons, social welfare housing, plaster homes, and terraced housing. A good coach tells you what properties to avoid.
• Gary Lin recommends to avoid buying in low decile neighbourhoods but to aim for areas like Mt Wellington which are middle decile neighbourhoods (between 4 and 6 out of 10). A good coach shares with you his experience on location. This is where he believes you can get best value for your money.
• Bought at 4 one-bedroom units and renovated them into 2-bedrooms. This strategy helped achieve higher rents and increase the value of the property. A good coach can show you what areas to do-up which is usually the kitchen, bathroom and toilets. Getting advice from someone who has been there before provides you with assurance that you are going in the right direction. Plus you get the benefit of learning from their mistakes and making sure that you don’t repeat them.
• The greatest lesson he learnt was how to buy properties with no cash down. No in today’s society, I come across many people who are asset rich but cash poor and a learnt property coach can teach you how to tap into your equity to fund an investment property. You will need to get a valuation done. But that’s no problem, if you don’t know how to get a valuation, I will recommend a valuer.

What can a property coach do for you?

Having a coach does not mean you can cruise your way to a property millionaire. You still have to do the hard work and be able to come up with the funds. You still have to convince the bank to lend you money. You still have to do your research to find the right property. These are inevitable. But you know you are going in the right direction.

It’s sort of like having a good sports coach. They make you accountable and guide you along the way.

I like to quote Seth Klarman who used this saying but in a different context.

“It’s like driving in a foreign land without a map. You may eventually get where you are going, but the trip will certainly take longer, and you risk getting lost along the way.”

That’s how I feel about having a property coach. Some of you are familiar with investing in single family dwellings and don’t need guidance on what to do. But if you want to start to invest in apartments or buildings outside your expertise, it might be a good idea to get a mentor or coach. It may cost you some money upfront but at least it should save you time, and reduce the likelihood of repeating the mistakes others have made.

And that’s what a coach can do for you.

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