Yahoo Finance The simple property formula that works: a tip from a millionaire
The New Investors video series brought to you by Yahoo Finance reveals the secrets of the most successful entrepreneurs and business people in Australia today. This is the eleventh episode of the season.
Sam Bashiry is a household name in the Australian technology industry, but he has a side hobby that's doing quite nicely.
Bashiry has been developing property – buying land and building townhouses. But he has a very specific, repeatable formula which has served him well.
"I buy in one area and one area only – because I know the area quite well. And, I only do projects where I'll build three to six townhouses over one or two projects and I stick to that."
He purchases the land without looking at the house that is on it, as it will be knocked down. Bashiry is only interested in how many townhouses he can build on it.
He employs his own draftsperson, civil engineer and builder, and they get to work as soon as the land has been purchased.
"The project usually gets done over four or five lunches," he told Yahoo Finance's New Investors show.
"If I was to do a drawing, if I was to put two bricks together, I wouldn't have a chance. I'm terrible in design. I can't draw a straight line. I can't hang a picture frame up. I'm terrible."
Then Bashiry repeats the whole process when he finds another good plot of land.
"The trick is to build enough equity in each project. To be able to use that equity to do the next project without having to fund it out of my own pocket. So, I guess in that way, it has been successful because I have been able to build enough equity."
Hear more on Bashiry's property development formula in the New Investors video above.
The New Investors video series brought to you by Yahoo Finance reveals the secrets of the most successful entrepreneurs and business people in Australia today. This is the eleventh episode of the season.
