Buying property the InvestorKit way
Ahh the research process. This section will help you understand and talk to the step-by-step research process InvestorKit uses to identify and validate property markets with strong growth potential and long-term resilience. When we think about the hundreds of thousands of potential properties that are available to purchase, there needs to be a systemised way we filter and find the top percent of properties for our clients. You will gain insights into the key metrics, tools, and strategies that form the foundation of our data-driven approach going from the macro of area research, drilling down to the micro of due diligence and property selection.
Our Research Process
At InvestorKit, research isn’t just something we do—it’s how we win. We invest over $500,000 a year into it, with a team of full-time analysts using advanced tools like AI and machine learning to stay ahead of market trends.
Here is a video of Junge walking us through how we weave our research magic to pick the right markets that outperform the national average year on year:
Resource link:
So in short, the research division is constantly reviewing and analysing the current markets we have approved, as well as looking for signs of up and coming markets that we should consider. Their process and approach can be broken down simply into the following for five categories.
- Market Categorisation - Analysing markets and where they are in their cycle
- Forecasting - Using AI, data and statistical analysis on the variables that create price growth
- Pressure analysis based on static data - Macro Research Reports
- Trend analysis - Manual interpretation of the data trends
- Data due diligence - Reviewing trends at a suburb level so only the best suburbs are selected
But how does that help us stay ahead? Well, let’s break it down further to explain. Click into each step to learn more
1. Spotting Emerging Markets
We’re always watching markets, tracking data and using forecasting tools to uncover markets with growth potential before anyone else.
2. Analysing the Numbers That Matter
We focus on key metrics that show a market’s strength, like:
- Price Pressure: Are prices stabilising in a cooler market or are they rapidly increasing?
- Demand: Are properties selling faster? Are there more interested parties looking to purchase?
- Established and future supply: Is supply currently tight and will it remain?
- Rental Yields: Does cash flow make sense for investors?
3. Looking at the Bigger Picture
Short-term trends don’t cut it alone, we need to understand what is happening economically within a market for long-term sustainable growth.
We evaluate:
- Infrastructure projects
- Job growth
- Migration patterns
- Economic reports
4. Continuous Validation
Markets are monitored for months, not weeks. If the data holds up, we move forward. If it doesn’t, we hold back and reassess.
5. Local Expertise and Hidden Gems
Once a market checks out, we dive deeper—examining industry diversity, demographics, and employment growth. Research collaborates with the acquisitions team to get an understanding of the suburbs locals like, the things to watch out for, how local agents + campaigns operate, set up area due diligence and even field trips. Taking our insights beyond the spreadsheets. We often find off-market opportunities through local relationships that others miss.
6. Confidence in Every Recommendation
By the time we present a property, it’s been through months of scrutiny. Every decision is backed by data, ensuring your investment is in the right market at the right time.
This process isn’t about guessing—it’s about making decisions grounded in research and results. That’s how we stay ahead and help you do the same.
Research Material
As you can imagine, the research team have a lot of spreadsheets and complicated models that help them determine the best possible investment markets at any point in time. This can be quite overwhelming, which is why they have simplified it to two main documents that we provide for clients.
Market Categorisation
The first is the market categorisation and buying areas document. This firstly explains the different types of markets that we purchase in, as well as overlays our current buying areas with where they are in their cycle.
Here is a video of Junge explaining the categories of markets we invest in for clients
Resource link:
Document -InvestorKit Market Categorisation & Buying Regions | InvestorKit
Region Reports
The second is a region report. We have these for all states where we are purchasing in, split into a capital city report and a regional report which can contain multiple regional areas. These go into the details for an area, with all the data and research on why we believe it’s a great area to invest.
Here is a video of Junge breaking down a Toowoomba research report from 2024, this will give you a clear understanding of how to read and interpret one of our reports.
Resource link:
Document -
Summary
InvestorKit’s research process combines advanced technology, extensive data analysis, and economic insight to identify and validate investment opportunities. By focusing on both short-term indicators and long-term fundamentals, we ensure that each recommendation aligns with our clients’ goals for sustainable property investment.
Our research is constantly developing so it’s important to stay across our content so you’re up to date. Clients are more informed than ever, and we are the face of research for them when they have questions. For them to have confidence in our advice, we need to ensure we know our investment philosophies back to front.
To gain further knowledge on research, please visit the below link which stores all the research:
Additionally: Section 13: How do I become the best strategist I can be? We also have our IKIT: Research Team WhatsApp chat if you have any further questions!
How we onboard new locations
Once we have a location that passes all of our data checks, our acquisition team go through an onboarding process check every single suburb with a location.
In this video, AJ goes through the checks involved in onboarding a new area
The team go through the multiple checks of:
- RP & REA Stats data collection (using REA & Corelogic)
- Insurance estimates data collection (via AAMI & Allianz insurance quotes)
- Council & water rates data collection (via Emailing sales agents)
- Phone calls & emails with agents - to understand market heat, and how locals operate with buying property
- Connecting with Property management contacts (calls & emails) - building relationships, collecting key info
- Pest & building inspector outreach - building relationships, saving key contacts
- Final data conclusion & summary based on online team data collection & phone call conversations
- There is also a ''Junge data sheet'' section where there is a due diligence check section that the Acquisition & Research team collaborate on
How We Buy Properties
Once we’ve honed into an area, the work doesn’t stop there! Our amazing acquisition team follow a rigorous process to source the best properties for our clients.
The Role of the Acquisitions Team
Our acquisitions division is the backbone of our property-buying process. These deal hunters are on the ground across Australia, building relationships and securing properties that align with our client’s goals. Their mission? To only buy properties that Arjun himself would invest in.
How We Train Our Team
Buying property isn’t just about having a licence—it’s about expertise. Every acquisitions team member is trained and certified by InvestorKit in the critical aspects of property purchasing, including:
- 21-Point Due Diligence Checklist: Every property must pass this rigorous test.
- Accurate Property Pricing: Understanding both sale and rental pricing dynamics.
- Cashflow Analysis Certification: Proficiency in InvestorKit’s custom cashflow software, ARI.
- Negotiation Mastery: Real-world negotiation skills for working with real estate agents.
- Client servicing: delivering a five star service experience with confidence provided To the customer every step of the way
Even after certification, our team undergoes weekly training to sharpen their skills and maintain a competitive edge.
Vetting Markets on the Ground
When our research team identifies a promising market, our acquisitions team goes in to validate it. This involves:
- Building relationships with top agents, inspectors, and property managers.
- Uncovering local information about an area that might not be available online
- Ensuring the market has reliable local resources to support long-term property success.
Sourcing the Right Properties
When the strategy team hands over a client brief, we don’t rely on a static inventory. Instead, we actively search for the perfect property to match the client’s goals.
- 800+ Calls Per Week: Our national team contacts agents across the country.
- 2,000+ Properties Sourced Monthly: With up to 70% being off-market.
- High Rejection Rate: 95%+ of sourced properties are rejected, ensuring only the best reach our clients.
What This Looks Like:
Out of 100 potential properties:
- 85 are not shown to clients.
- 10 are shown to clients as examples that fail due diligence or don’t suit their portfolio.
- 5 pass due diligence, but only 2 are purchased (the rest sell above our price range).
Client Property Presentations
We ensure clients have all the information needed to make confident decisions. For every shortlisted property, we provide:
- Region Report
- Due Diligence Report
- Comparable Sales and Rentals
- Cashflow Analysis
- Raw Photos and Videos
If the client isn’t comfortable with the property? No problem. We move on to the next one.
Negotiating the Deal
Once the client approves a property, our team of expert negotiators gets to work. Their goal is simple: secure the best deal without overpaying. Negotiation is what they do day in, and day out.
What Happens After Purchase?
Once the deal is closed, the client can relax while we handle the tedious details:
- Organising Pest & Building Inspections.
- Connecting with the Property Management Team.
- Managing any required work on the property.
- Preparing for the rental campaign.
- And most importantly, celebrate the milestones throughout (Purchase, Unconditional, Settlement and more)
Looping back to Strategy
When the property settles, the hard part is over. The client enjoys the equity growth while staying looped in with their strategist, who tracks the property’s performance and provides ongoing support with portfolio expansion guidance toward financial freedom.
Our Due Diligence Process
One of, if not the greatest strength of InvestorKit lies in our proprietary 21 point due diligence process. It's built on Arjun's years of experience at CBA and his journey building his own property portfolio. The process is vital because we've back-tested each factor against historical data. We know that every detractor we screen for has a measurable impact on price and performance. Since our goal is to source the absolute best properties for our clients, it's essential that every property passes these rigorous checks.
Due diligence is completed by the Property Acquisitions Analyst and involves them thoroughly investigating and evaluating a property before presenting it to the client, making a financial transaction or commitment, to ensure all relevant facts and potential risks are known and considered.
Video - Here’s the big man himself to explain more
Here are our due diligence resources below:
Due Diligence and Strategy
Before you read on: While you do not complete the Due Diligence process yourself, it is essential that you thoroughly understand what detractors we look for to ensure the properties we present and buy for our clients are the absolutely best of the best.
How does a house fail our due diligence process?
Passing as InvestorKit-level stock isn’t easy—around 95% of properties don’t make it through our strict due diligence process due to one or more hard passes. You’ll come across these often during your time here, but don’t let it discourage you. It’s this rigorous process that delivers amazing results for our clients—and helps you earn those glowing 5-star Google reviews!
In this video, AJ explains our Due Diligence process and details the hard rules to follow in passing or failing a property
Due Diligence for all properties is completed through our Due Diligence Bot https://bot.investorkit.app/#/. The bot asks you to enter information about the property, street, surrounding areas and provide evidence with screenshots for each relevant part of our 21 point DD checklist.
What does a Finished Due Diligence Report Look Like?
After completing the Due Diligence Bot for a property, you would’ve seen our Due Diligence Report that is automatically generated in Attio for that property. How cool is that!
Link: https://properties.investorkit.app/#/view-report/657db052-d676-475b-aa1f-53c6e81ba27c
Have a look at a completed Due Diligence Report here:
Here are the HARD rules in detail and in order to check, click to learn more about them:
Land
- All land sizes to be above 375 sqm
- Properties directly backing parks pass checks
- No triangular blocks under 600sqm
🛠️ Tool Required - REA Website, Google Maps or CoreLogic (this will be a link to module 4)
Bedrooms
- Must be minimum 3 bedrooms or more
- No 2 bed + study
- No 2 bed + sleep out
🛠️ Tool Required - REA Website or CoreLogic (this will be a link to module 4)
Highway / Motorway distance
- House backyard or directly in front must not be highway / motorway
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Road / Street checks
- Bus stops to be minimum 3 houses away from property
- For all roundabout we only fail corner house
- Speed sign: to be under 60 km
- If the house is on a busy road we fail, if the driveway is on a different street we pass
- 3-lane or 4-lane roads too busy / fail checks
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Backyard of property
- Cannot be backing: cemetery / schools / parking lots / creeks / daycare
- No in-ground swimming pools
🛠️ Tool Required - REA Website, Google Maps, Video Walkthrough (this will be a link to module 4)
Train tracks / Train station
- House backyard or directly in front must not be train tracks or train station
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Electrical hazards
- House backyard or directly in front must not have major powerlines or substation
🛠️ Tool Required - Google Maps (this will be a link to module 4)
External Property factors
- Garage conversions are fine as long as it's not a bedroom. Easily converted back to a garage if needed. (Sliding doors and flooring change, fine with that).
- Extension & rumpus: If SA. title insurance to be considered. In any other state: sale agent must provide approvals
- No back of a battle axe properties
- No shared driveway
🛠️ Tool Required - Google Maps, REA website, Floorplan (this will be a link to module 4)
Bedroom sizing
If the majority of the bedrooms are 3 meters it passes, if not fail
- Example: 3 Bed property (2.8 x 3) (3x3) (3x3.5) PASS
- Example: 3 Bed property (2.6 x 2.9) (3x3) (3x3.5)
- Example: 3 Bed property (2.6 x 2.9) (2.6x2.9) (3x3.5) FAIL
- Example: 4 Bed property (2.6 x 2.9) (2.6x3.1) (3x3.5) (3x3.5) Pass
- Example: 4 Bed property (2.6 x 2.9) (2.9x2.9) (3x3.5) (3x3.5) Fail
🛠️ Tool Required - REA Website or Floorplan (this will be a link to module 4)
Bushfire Risk
- House backyard or directly in front must not be impacted by fire
🛠️ Tool Required - Council Websites & Google Maps
Flood - For all councils/regions unless mentioned below
- House, backyard or directly In front of property must not be impacted by flood
Rockhampton Flood
- House backyard or directly in front must not be impacted by flood (Red color)
Townsville Flood
- House backyard or directly in front must not be impacted by flood (Green color)
VIC Flood
- House backyard or directly in front must not be impacted by flood (LSIO & FO)
Moreton Bay Flood
- House backyard or directly in front must not be impacted by flood (Orange and Light orange color)
Newcastle Flood
- House backyard or directly in front must not be impacted by flood (Red and Yellow color)
🛠️ Tool Required - Council Website (this will be a link to module 4)
Government housing
- Suburb to be under 20% housing hard rule (via microburbs)
- Property can’t be located on the same street as a housing commission complex.
🛠️ Tool Required - Microburbs (this will be a link to module 4)
The below is the paramters of where a SPAA may choose to proceed with a property that may be in the grey area. There is certain rules and requirements from an evidence perspective in order for an SPAA to proceed with a property and here and the rules and requirements that MUST be followed:
Highway / Motorway distance
- House is within 200m from highways, PAA to upload insurance, video walkthrough to assess noise and DOM checks, alongside commentary with screenshots
🛠️ Tool Required - Google Maps, Insurance, CoreLogic, Video, DD Bot
Road / Street checks
PAA to upload insurance alongside commentary with screenshots
- Long streets
- Street with multiple speed bumps or roundabouts (not a corner house)
- Same street with school car park and parking lot
- House within 200m from 3-lane or 4-lane roads
🛠️ Tool Required - Google Maps, Insurance & DD Bot (this will be a link to module 4)
Backyard of property
PAA to upload insurance alongside commentary with screenshots
- House is on the same street as a school
- Cemetery is visible from street view, and within 200m in distance
- Above ground pool or spa is fine, but agreement must be made in writing for the sellers to remove the product prior to settlement, must be part of the contract, only proceed if negotiations include removal as part of contract. If inground and not being removed, decline. “Make a note in attio”
🛠️ Tool Required - REA Website, Google Maps, Video Walkthrough, Insurance & DD Bot (this will be a link to module 4)
Train tracks / Train station
- House is within 200m from train tracks , PAA to upload insurance, video walkthrough and DOM checks alongside commentary with screenshots
🛠️ Tool Required - Google Maps, Insurance, DD Bot & CoreLogic (this will be a link to module 4)
Electrical hazards
PAA to upload insurance alongside commentary with screenshots
- Major powerlines is visible from street view or visible from the backyard but not directly backing or fronting property
- Major powerlines is within 200m away
- Electrical substations is within 200m away from the property
🛠️ Tool Required - Google Maps, Insurance & DD Bot (this will be a link to module 4)
External Property factors
PAA to upload insurance alongside commentary with screenshots
- Garage conversions
- Extension & rumpus: If SA, title insurance to be considered. If any other state: sale agent must provide approvals
- Damaged retaining walls
🛠️ Tool Required - Google Maps, Insurance REA website, Floorplan, DD Bot (this will be a link to module 4)
Bushfire Risk
- House is not backing, fronting, and within 200m, with BMO overlay, PAA to upload insurance alongside commentary with screenshots
- 🛠️ Tool Required - Council Websites, Insurance, DD Bot & Google Maps
Flood - For all councils/regions unless mentioned below
- If Major flood risk is within 200m from the subject property, PAA to upload insurance and DOM checks alongside commentary with screenshots
Rockhampton Flood
- House is on or within 200m from any color except RED, PAA to upload insurance and DOM checks alongside commentary with screenshots
Townsville Flood
- House is on or within 200m from any colour overlay, PAA to upload insurance and DOM checks alongside commentary with screenshots
VIC Flood
- House is within 200m from LSIO & FO, PAA to upload insurance and DOM checks alongside commentary with screenshots
Moreton Bay Flood
- House is on or within 200m from yellow (xxx) overlay, PAA to upload insurance and DOM checks alongside commentary with screenshots
Newcastle Flood
- House is on or within 200m from Green and Blue overlay, PAA to upload insurance and DOM checks alongside commentary with screenshots
🛠️ Tool Required - Council Website, CoreLogic, Insurance & DD Bot (this will be a link to module 4)
Government housing
- House is below 10 Houses away from redpatch PAA to do owner check and upload it as part of DD
🛠️ Tool Required - Microburbs, CoreLogic, DD Bot (this will be a link to module 4)
Our due diligence process for Commercial
Summary
Our acquisition process is built on precision, expertise, and transparency. From market vetting to negotiations and post-purchase management, every step ensures our clients get the right property at the right price, with a seamless experience from start to finish.
Well done, another module down.