WOMAN IN FOCUS

Margaret Fort

Meet Margaret Fort who is this month's inspiring Woman in Focus a Perth mother of two grown up children, business owner and now full time property investor. Margaret became involved in property investing after her marriage of 33 years failed and she needed to find a way to support herself. Facing health challenges and a divorce left her too emotionally distraught to work at her business full-time. In only 6 short years Margaret is now an experienced renovator, developer, property manager and outstanding property investor.  With 11 property purchases under her belt and a portfolio of over $3 Million dollars she is set for life and someone who won't take no for an answer.

Learn how this incredible woman overcame her challenges, took action and turned her life around and started her amazing journey into real estate investment. 

STARTING OVER...TAKING ACTION THE KEY

Margaret was facing divorce after 33 years of marriage, wearing splints on both hands, and needing knee replacements, all while operating her own personal image consultant business. The problem was Margaret didn't feel physically or emotionally strong enough to work at her business full time at this stage in her life.

Her self-esteem was low, but she signed up for a 12-month property course that turned her life around.

"I started this course in 2005. I am dyslexic and learn by action. Since I don't absorb the written word well, I jumped in and took action and learnt by practicing. The disability turned out to be a gift in disguise since I started by when the property boom was about to take off."

Her low self esteem could have prevented Margaret from taking action, but if she had waited Margaret would have missed out on the biggest property boom Perth had ever seen.

BUYING HER FIRST PROPERTIES

Margaret bought her first investment property in Belmont at a private sale advertised in the Sunday paper on a cold, wet winter day. Margaret did her research and knew the median house price for homes in the area before she went. She paid $215,000 for that first property, which is now worth $400,000.

Margaret used the equity from her own house, which was unencumbered, to purchase her first two properties. Her house was valued at $600,000 which left $455,000 of equity to invest. She bought her first two properties with that money. Once she had the titles for both the homes, Margaret used the equity from those houses to purchase two more properties.

INCREASING CASH FLOW

In the early days one of the key issues for Margaret was ensuring she had enough cashflow to fund her loans and and her life.

"I changed from normal renting to Short Stay renting when the interest rates went up to 10+%...I am Queen of the Quokka, and dressed all the houses at very little cost with class.  I have now changed over to renting out room by room, as there is such a demand and it is a niche market I now have experience in, and this has allowed me to finally meet my monthly mortgage repayments after 6 years of putting in equity"

Margaret now receives $4,600 in rent per month - with mortgage repayments of only $2,800.

This is the project rent from the 5 x 4 I will be building property on no.6 (rear block I created) I am about to undertake as soon as I acquire more finance.

LIVING THE DREAM

When Margaret was younger she wanted to own a street. Her father was a policeman and the family didn't have any business or investing experience, but that didn't stop Margaret from dreaming big about owning her own property and even one day owning her own block.

She now owns three houses on one street in the eastern suburbs of Belmont. In addition, Margaret is planning to build on the same block, so her dreams of owning a street have come true. The properties are only four minutes away from the airport and make perfect accommodations for fly-in/fly-out workers.

She calls herself Queen of the Quokka (the buy, swap, and sell newspaper in Perth) and is always looking for great deals. Her ability to find bargains not only helped her purchase properties at a great price, but also helped her renovate houses at little cost.

Here are some of Margaret's amazing bargains...

New Italian Ilvie oven would cost $2,500 $4000 retail Margaret was able to pick this up for $1,000 I paid $1000	Sliding glass doors with fly screen retail at $9,000 Margaret picked these up for only $400

"I have discovered more abilities than I ever thought I had. Right now I'm dealing with engineers, geotech reports and getting my owner-builder license."

CASE STUDY

Property No 4 bought in 2005 for $230,000 purchased to use part of the block to create a rear Green Title block at the back for Property No. 2...It's value now is $420,000.

The property is only a 2 bedroom property - it's not as easy to rent for short stay as a 3 bedroom so Margaret is doing an extension on this property.

Here are the figures...

Margaret will increase her rent by $35,000 a year plus get an equity gain of $620,000 once completed!

"The downside to this house, is that it has been expensive in regards to maintenance issues, but I remind myself it has allowed me to create a block that is valued at $250,000 unencumbered and soon to take a slice off the side and create another rear block behind property no 10 next door that will cost $35,000 to create and sell for $250,000 as a house and land package."

FINDING FINANCE

Margaret's next challenge is to find the finance to build a 5 bedroom, 4 bathroom house on the back of one of her properties. ..but she is determined not to give up.

"Being 66 and having a $1.7m mortgage and not having a substantial income (apart from rental income). However I will not be daunted, they seem to finally be relaxing their lending criteria and I will get the $350,000 to build the 5x4 on the rear block I have created and let room by the room.  I will not give up, it will be a reality."

Property Women will be hosting a teleconference on Finance this Tuesday 11 October 2011 if you'd like to register send an email to goodnews@propertywomen.com.au

LESSONS LEARNED ALONG THE WAY

Margaret went in as an equity partner in two that turned into four properties. She regrets the decision and vows to do future deals by herself. The properties were sold after renovating and creating rear blocks, but she did not make a profit on those investments.

In addition, she has the following tips for investors:

• Research! Research! Research!
• Buy under the median price for the suburb.
• Have a walk away price and stick to it.
• Buy privately whenever possible.
• Add value by creating two properties from one.
• If the property value is not increasing, find other ways to increase revenue.

HOPES FOR THE FUTURE

Margaret is 66 years old and hopes that her property investments will create enough funds for her to stay in her own home with a carer to look after her when she can no longer do so.

"I will not go and live in a nursing home and I will not have the government support me. I recently had a company look at my goals and what I have created and come up with a yearly plan. I am pleased to say, I plan to sell a property every year, pay off part of the mortgage, and put part of it into a Super Fund. By the time I die (at 99), all the properties will be sold, there will be little cash, and my own home will be worth 4 million dollars for my children to inherit."

Not bad for a woman who started property investing only six years ago!

"Never say you are too old to create a retirement plan. I started at 60 years old and have created my retirement plan and it has been an amazing journey doing it."

BENEFITS OF BEING ASSOCIATED

Margaret would recommend Property Women to other women investors.

"Knowledge and support is vital and this is a great place to get it!"

If you'd like to view some of Margaret's properties you can visit www.shortstayperth.com.au

DIAMOND MEMBERS BONUS

Margaret will be joining Property Women on the next Diamond Members ONLY teleconference call on the 25 October 2011 - Diamond Members click here to find out all the details

To find out more about the many benefits of Diamond Membership click here