The need for discipline and focus is required to achieve more. In Mike’s book, How to Jump into Property Investing Without Being Eaten By Sharks we share the story of golfing legend Peter Senior who has won over twenty titles in his time on the golfing tours of Europe, Asia and Australia.
Peter has had incredible success not only on the golf course but also in the world of property investing and kindly divulged some of his secrets with us.
“When I had enough money to start investing, if I didn’t know anything, I would outsource. There are always guys in this game that you play with, that are either real estate guys or bankers, or this or that. I used to pick their brains and say, ‘What’s the best way to go about this?’”
‘Spend more time smiling than frowning and more time praising than criticising.’
Just like the rest of us who are scared before the first leap into unknown investment territory, Peter too had his nerves – but take heart; he sees this as a good thing!
“You ought to be shit-scared the first time you buy an investment property,” he declares. “You’re thinking, ‘Shit, can I afford it?’It is a really scary step. That is why a lot of people don’t do it, right?”
Peter also made the smart move of building his own knowledge-base on the subject, so that he had an understanding of what was going on and what he was about to get himself into. This gave him confidence he was doing everything properly, right from the outset, which is a huge bonus in the investment game.
“My first property was on Brisbane Street in Ipswich. My brother had just invested in Cash Converters. It had been going a few years in Western Australia,” Peter tells us. “Things had been going pretty well and they wanted somebody to bring it to the eastern states… Jeff asked me whether I would be interested. I went over to Perth and had a look at it.”
After seeing first hand that this ‘upmarket pawnbroker’ looked like a rock-solid investment opportunity, with people flowing in and out of the business, he knew this was a chance too good to refuse.
“I bought the sub-master deal for Queensland,” Peter says. “We had to put in two stores. One was going to be in Ipswich, the other was going to be in Capalaba.”
“I brought one of my mates over from Western Australia, stuck him in the one in Capalaba, as a partner with me. The one in Ipswich, I went in with my brother. He was going to run it because I was still playing golf. We had to have a property, a big building. It was 850 square meters in the main street of Ipswich.”
“It was only $300,000 in those days. ‘$300,000,’ I’m thinking, ‘I paid 150 grand for the sub-master.’ I put $100,000 down on the store and borrowed the rest. I was getting into an area where I thought, hang on a minute, I’m spending hundreds of thousands of dollars here. You know I was a bit nervous about it, if things went wrong.”
“The stores took off. I paid for the shop in two years,” he recounts with pride. “The business was that good.”
Only a few years later and Peter had amassed a portfolio of 30 stores in Queensland, 15 of which he controlled himself.
“That actually gave me more money to invest in other things. I did a heap of other things. I put money away for June and I for later. There was a whole range of things that I could do now. I ended up selling a bunch of the stores. I’ve got six left. I own pretty much all of the buildings except for the ones up north,” he says. “I bought four different commercial properties last year.”
Peter wanted to reassure our readers that while nothing is quite as scary as making that first leap, “Your second one’s a hell of a lot easier,” he declares, “because you know what you’re into. You know what you got to do.” Do something, commit to the process and follow it through.
Couldn’t have said it better ourselves. Thanks Peter Senior – Legend indeed! Look out for the rest of Peter’s story in a future blog about how he got started in his golf career and what he worked out he needed to do to make it all happen.
If you would like to have a chat about how to get the best out of your investment property we’d be more than happy to help. Simply contact us at firstname.lastname@example.org or read our other blogs to learn our top tips on the subject: