Mentored Advocacy – the Value of Homework

When we commence a Mentored Advocacy assignment with our locally based clients, the process is quite different from a traditional Buyer’s Advocate brief where the tasks are totally handled by the engaged third party. The essential process steps are the same, but the role our Mentored student plays is the differentiator.

Equipped with a tailored weekly itinerary, Mentored clients commit to a weekly inspection run followed by homework. It was the homework part which enabled yesterday’s dear investor clients to buy a fabulous townhouse in Altona with confidence.

Our brief had some fundamental requirements. Their experienced property investment finance broker had set some vital metrics which had to be met. The target purchase price was $650,000 and the required weekly rent  needed to exceed $400 per week.

My role was to design a brief which would not only meet these metrics, but give our clients an out-performance capital growth result.

The obvious selection was a nicely fitted-out townhouse (given the high rental yield requirement), but my mission was to find a townhouse in a great area on its own title. 

Difficult? Yes. Impossible? No.

Our search canvassed two areas which despite their locality differences, exhibited higher numbers of these types of assets. Coburg/Brunswick West/Preston and Altona were our defined patches, and our clients rose to the homework challenge with splendor.

For five solid weekends, they turned over every stone; inspecting with enthusiasm and energy, and exploring all of their ideas with detailed feedback. It was fair to say they were A grade students throughout.

“Red Light” selections (properties which were rejected for good reason) featured in the first few weeks and our clients quizzed me in week two with a bit of concern about their unwillingness to buy something which didn’t appeal. Naturally, we’d never want a client to buy a property which didn’t appeal, but I did have to explore the concept of appeal when it comes to investing. They later told me that my guiding words changed their approach dramatically:

“As long as it stacks up, you don’t have to like it, but you do have to be proud of it.”

That advice enabled them to focus pragmatically on what could work optimally for the target tenant, regardless of the fact that they’d never desire to inhabit the property themselves. Our first “Green Light” property was a reasonably dated but large floorplan townhouse on a battleaxe block in Blyth St Altona. Just minutes’ walk to the water and nestled nicely within the best pocket of Altona, it was disappointing indeed to miss the property once it sold to a higher bidder pre-auction.

Our clients never let the disappointment get them down. They were straight back on the horse, as committed as ever to their quest for a good investment asset.

When they sent through their “Green Light” report for 1C Boyd St Altona, I knew that the property could potentially suit. Further due diligence, (clinical assessment, building inspection and legal review) flagged it as purchase-worthy.

Not only did this property sit proudly on its own title, but it was located conveniently (again in Altona) and had a fantastic tenant who was already on a fixed lease of $421pw.

We excitedly secured the property yesterday at auction and the most rewarding part for me was knowing that our clients understood the brief and were proud of their property. Their collaborative approach, detailed feedback and commitment to the task made the critical difference.

Our Mentored clients have a unique role and we love the bond we share with them throughout their property journeys.

Imparting knowledge is what we love to do.

Wishing our lovely investors out-performance growth and future success.