Learn How to become a Multi-Millionaire in Property Investment | Milan Doshi
This is guest post by Mr.Milan Doshi, Financial Trainer and Best Selling Author of “How You Can Become a Multi-Millionaire Real Estate Investor!”.
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Do You Know more than 90 percent of World’s Millionaire either Made or Parked their Money in Properties?
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It is a fact that Properties Investment provide an Excellent Financial Leverage!
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While Property Investing seems to be the way to achieve Financial Freedom, there are skills that you need to learn in order to avoid making financially painful mistakes.
This interview was done on 11 December 2009.
1) Why choose Property Investing as a main Investment Vehicle when there many Exotic Investment Option out there like Stock, FOREX, Option, Gold, Land Banking etc?
Unfortunately there is no “perfect” investment that gives you the best of everything.
Each investment vehicle have their plus and minus points.
Hence, there are No Right or Wrong investments.
You need to know what is available out there and find the right investment vehicle that suits your unique investment profile.
I choose Properties to be my main investment vehicle as real estate is able to provide Great Financial Leverage.
You only need to come out with a small down payment in order to own 100% of an asset because the banks are willing to lend money for the property purchases.
Your chances of becoming rich via Properties is Slow, Steady and Surer compared to other Volatile Investment like Stocks, FOREX, Options, etc.
One year from now, you can estimate up to 95% accuracy your Net Worth (ie Assets less Liabilities) in Property Investments.
In other investments, you will be unable to do so. Your investments may be up by or down by 50% or more.
“If you think education is expensive, try ignorance” -Derek Bok
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2) How to get start in Property Investment?
First, get the Knowledge by Reading Property Investment Books and Invest in Property Investment Seminars.
Just by doing these two things alone, you will be far Great ahead compares to people who do it via the more costly Trial and Error method.
However knowledge alone will be any Good if you do not take ACTION!
It’s good to start off with Low or Medium Cost Apartment to get the experience before going for higher end properties.
The first few property purchases are usually the most challenging as there is a lot of learning taking place.
The good news is that things become easier and easier in property investments. Subsequent purchases become very easy and you can literally buy with your eyes closed once you have purchased more than 10 properties.
3) What Are the Investment Formula or Strategies To be Use?
There are more than Ten Investment Strategies like Buying from Developer, Buying for Rental Returns or Capital Appreciation, Property Flipping, Commercial Property Investing, Auctions, etc
Based on your Unique Investment Profile, pick maximum three Investment Strategies and specialize in those three areas.
The Key here is Focus.
4) What is Zero Down Property Investment?
It simply mean Buy with little or zero money.
In another word, take out little Capital and Borrow to the maximum
5) Do Zero Down Property Investment Exist?
YES
6) How the Zero Down Property Investment is Possible and do you have any Real life Case Study?
Read my book called “How You Can Become a Multi-Millionaire Real Estate Investor!”
I have entire chapter dedicated to this topic.
7) What skill are needed to be successful in Zero Down Property Investment?
- Negotiation skill
- Ability to look up for not just Good but Great deals
- Very close and in touch with the current Property Market
- The most important is Patience. Only One out of ten properties could qualify for this Zero Down Property Investment method.
8.) Is the Negotiation skill an Inborn skill?
Almost everything can be learn and nothing is inborn.
In short, all Skills are learnable!
9) What is your advice to those who are Weak in the Negotiation skill ?
Read books on Sales, Neuro-linguistic programming (NLP) and Negotiation.
Other Highly recommended books to read are “How to Win Friends and Influence People” by Dale Carnegie and “Personality Plus” by Florence Littauer
10) Do you encourage to buy Uncompleted properties(buying from developer)?
As an investor, your Goal is to have Minimum Risk with Maximum Return. As long as the developer is reputable, the location is good and the property fairly priced, why not?
I have even encountered some occasions where the developer made a mistake in pricing in my opinion.
11) Is having a Supportive Spouse Important in Property Investment?
There is a saying that two heads are better than one. Having a Supportive Spouse or Partner is a huge plus Point as Property Investment involves Risk and Financial Capital.
Besides your spouse or partner, always mix with the other like-minded investors as your Property Investment journey can be very Slow and Boring.
With investment buddies, you can Challenge or Push one with another to make your Property Investment journey more fun.
12) What are sacrifices are needed in Property Investment?
Top of the list will be Delayed Gratification because you need to Save in order to get the Investment Capital for property investments.
Savings can only come by spending less or earning more.
13) What is your advice on Getting Bank Loan?
Bank Loans are given based on Your Earning Ability and Good Track record. All your credit application and late payments for credit cards, car and housing loans are recorded in the Central Credit Reference Information System (CCRIS).
If possible, get into professions where your Earning Potential is Unlimited like Sales/Marketing, Trading and doing your own Business.
This will make it easier to borrow more money from the banks.
14) What is your advice to those who want to achieve Financial Freedom?
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Keep Investing and Improving yourself.
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Take ACTION!
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Do not be afraid to Make Mistakes
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Network with Right Minded Peoples
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Earn and Save as much as Possible
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Invest Wisely as much as you can.
Mr.Milan Doshi has a Blog and you may sign up at moderated Getrichbook Yahoo eGroups
If you have any comments or questions on this interview, please leave the comment below.
Mr.Milan Doshi would personally reply to your questions.
[…] Learn How to become a Multi-Millionaire in Property Investment | Milan Doshi […]
Property millionaires share their secrets
It has been done over and over – making money out of property investment, but it is not without its share of peril. At a recent Property Millionaire Convention, four property millionaires shared their journey towards financial freedom.
The convention was organised by Paysolution Technologies Sdn Bhd. The company’s founder, Michael Tan, 34, channeled positive energy and vibes through a “motivational” approach by eliciting “I” from his questions. “Who wants to be a property millionaire?” and the crowd goes “I”. “Do you want to be financially free in five years?” And the crowd hollers, “I”. You get the picture.
The convention was also interspersed with stretching exercises and participants giving one another high fives. Additionally, each participant was given an egg to take care off. So right off the bat, it was an eye-opener for many participants.
Tan’s financial advice
Tan has been involved in property investment for approximately four years, with wealth accumulation of more than RM2.28 million. Through his mortgage broking firm, he has taught more than 220 students within 8 months and has helped them purchase properties worth more than RM8.07million.
He also advised all to find out how much one can borrow, to find out how much one is worth. “If you currently have rentals, then your income (level) goes up. For example, if your monthly pay is RM10,000 and rental income is RM2,000, the amount that the bank will calculate is based on RM12,000. Therefore the (borrowing) limit goes up,” Tan explains.
Tan also provided a few formulas. One included determining one’s Finish Line, which translates to determining how much you need to have in order to retire within your limits. Not surprising, all 150 participants’ figure ran up to the millions.
“Last time, to be a millionaire is a privilege. Now, it is becoming a necessity due to money inflation,” he explains.
Tan’s formula – calculate your required Pension Fund
Pension Fund (PF) is the amount you need when you arrive at your desired retirement age, in order to receive your Desired Monthly Income (passive income).
DI (Desired Income) = Ideal passive income monthly
CA (Current Age) = Current age, rounded down to closest 5 years (e.g. 48 becomes 45)
RA (Retirement Age) = Ideal retirement age, rounded up to 5 years (e.g. 48 becomes 50)
POA (Passing On Age) = Age of passing, rounded up to 5 years (e.g. 81 becomes 85)
PF = DI x (POA-RA) x 12 months
For example:
PF = RM10,000 x (75 – 45) x 12 months
= RM3,600,00
Which means, I would need to have RM3,600,000 in savings, so that I can retire by 45 years old and enjoy a passive income of RM10,000 per month (assuming that I pass on at age 75)!
Chin’s investment strategies
One of Tan’s convention co-sharer, Juanita Chin, 39, became a property millionaire in less than five years. She currently owns RM5.6million worth of properties comprising resort condos, shop offices and office suites. She cautioned would-be-investors to be rational and not emotional. It is all about money and sense.
All her properties are in Penang and her first property was with a low downpayment of RM5,000. The property was in Gurney Drive. Chin said, “It was a balance unit. On the 4th floor. Facing a graveyard. Leasehold.” After the chatter of amazement eased, she added that she did research and discovered that Japanese community favoured living in the area and preferred the lower floors. The first unit was rented out and fetched a positive cash flow of RM400. She has since purchased two more units and is getting a total of RM3,000 in rental from the three units.
Some of the strategies that she employs include:
• Knowledge – the more you know, the less mistakes
• Leverage on assets – refinance properties for extra capital to reinvest
• Joint-loans with family members
• Know your banker
• Look out for discounts and early bird specials from developers
• Find a group of people and negotiate for a “bulk” discount
Yee’s practical approach
Dr Peter Yee, a guest speaker at the convention, has benefited many times from property auctions. So far, he has purchased 14 properties, including terraced houses, bungalows and shop offices. Rental income and the sale of six properties have earned him profits of more than RM1million.
His straightforward candour and funny anecdotes during his sharing session were more than well received. He is perceived to be like a family’s funny uncle. His area of expertise is in the auction and secondary markets. He mentioned that he has paid tens of thousands in “tuition fee” – monies lost from bad purchases. As the years progressed, he stopped paying tuition fee, but instead made a tidy sum.
He also shared that it is important to know what’s going on. “See this shoplot. Beside the two lots owned by the same person. The owner of the two lots beside mine, did not know the next lot was going to be auctioned. I bought it and then the owner purchased it from me. I like people like this. Busy, hardworking people who don’t know what’s going on,” he said cheekily.
Yee also added that it is important to know an area well and adopt a wait-and-see approach. Look out for signboards at properties. If the owners are desperate, the prices will drop in time. Or if a piece of land is priced at a low value, due to the owner’s mistake, then it is to Yee’s benefit.
Doshi’s principles
Milan Doshi, a Singaporean residing in Malaysia and the convention’s second guest speaker, has been involved in investment property for more than 10 years. Currently, he has 19 properties, with one in Singapore. The loans amount to RM11million, with a positive cash flow of RM15,000 to RM20,000 per month.
“When I started working, my friends were driving second-hand cars. Two to three years later, they were driving new cars and I was still taking the bus and LRT. I knew something was not right,” Doshi shared.
“My first job was as a commodity trader. My boss told me that the sooner I learn that the four years in university is nothing but rubbish, the earlier you become useful to me,” he continued. It was years later that he found out what his boss meant because everything he learnt was theory, not real-world practical learning.
When he began investing in units in HDB flats in Singapore, he was doing well, until one friend told him to buy the most expensive property that he cannot afford. It made sense at the time, because the more the asset appreciates, the bigger the gain. But alas, as values can increase, it can also nosedive.
He has since moved on and has made many good purchases. To date, he has more than a handful of shoplots at Berjaya Times Square. Some of these lots are lesser than 1,000sq ft and were purchased for a price tag of more than RM1million each.
The six principles that he strongly advocates are:
• Learn as much as you can – from sales people, the market, entrepreneurs, experts
• Network – it’s who you know
• Earn as much as you can, as fast as you can
• Savings – invest in yourself e.g. save RM200 and spend RM200 on books, etc.
• Borrow – as much as you can and invest to gain returns that are more than interest rates
• Invest wisely, as much as you can
The gurus’ seminars
This property millionaire quartet conducts seminars and workshops throughout the year – individually and together with a few other speakers.
Tan, Chin, Yee and Ho Chin Soon (the maker of Malaysian maps that pinpoint the exact geographical location and information on properties) will be conducting a series of seminars titled “The Millionaire Start Up Programme”. Call 03-2283 1740 for details.
Property Intensive, a 3-hour seminar preview by Doshi, will be held on 9 and 10 April. For more information, call 1700 800 178.
The egg
Back to the egg. What was it all about? It was to represent a loved one and the reason one is striving financial independence for. In short, be grounded and remember loved ones and those in need even when one joins the millionaire club.
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