First-Time Property Investor’s Guide To Achieving Financial Freedom (Part 1/4)
Welcome to this first-time property investor’s guide where we will look at how to reduce risk, maximise returns and achieve financial freedom through property investing.
Free Strategy Session: https://onproperty.com.au/session/
0:00 – Introduction
0:35 – A bit about Ryan and Ben and our financial freedom
2:20 – It’s both easier and harder than you think it’s going to be
3:22 – The simple property strategy that almost any investor can implement
5:24 – The 3 Phases of Property investing
5:40 – Phase 1: The Foundation Phase
8:00 – Phase 2: The Acceleration Phase
11:35 – Phase 3: The Freedom Phase
12:28 – What’s coming up tomorrow
Hey guys, Ryan here from on-property and welcome to the first time property investor’s guide, where we’re going to talk about how you can invest in property, how you can reduce your risk, maximize your chance of returns, and achieve financial freedom. So today I have with me Ben Everingham via his agent from pumped on property. How’s it going? Thanks for having me, Ryan. Excited. Yeah. And we’re really excited to share with you guys in this mini series that how you can invest in property achieved financial freedom, but also reduce your risk along the way and increase your chance of getting some good returns on your property investment. So, Ben, do you want to just let the people out there know a little bit about yourself and your business before we jump into the content? Yeah, sure.
So, um, my name’s Ben Everingham and I’m an investor. I’m over the last 10 years. My wife Lisa and I have stumbled through the property market and bought ourselves 11 properties. Um, thank gosh we don’t hold them all anymore because that sounds like a lot of work, but we’ve sort of learned some lessons. We’ve made some mistakes, we’ve also got some great gains and we’ve learned a lot from that and then about four years ago Ryan gave me the confidence to go out and start a buyers agency. I don’t even kick up the bum that he made it a kick up the ass. And since then as a business what we’ve helped by $350, million dollars worth of property for over 600 investors. I’m from Sydney, Melbourne, and around the world now. So Tracy did.
Yup. And I’m Ryan Mcclain, Iran on property.com that I use one of the larger property blogs out there and youtube channels and I hope people find it, invest in positive cashflow property and achieve financial freedom. I personally achieved financial freedom or the age of 28 through my online businesses. Then achieved it himself as well. Probably around similar age, similar age, like not a huge amount of financial freedom but enough to when that kick in the bum came leave work without stressing too much. Yeah. So in these videos, we’re not going to be talking about excessive wealth and how you can get rich quick and be a multibillionaire. That’s not what we’re about. What we’re about is lifestyle and baseline financial freedom, so you earning enough money that you don’t have to go to work, that you can live a nice life with your friends and your family.
You’re not going to be driving around in limbo as well. You can take it to that level definitely. But to start with that baseline financial freedom. And so in this episode we want to talk about how it’s both easier and harder than you think it’s going to be, so it’s easier in terms of your strategy. Doesn’t need to be extremely complicated and we’ll talk about that. But it’s harder than you think in the fact that actually doing the work and going out there, saving a deposit contend to be harder than you think it’s going to be. I remember like when I first got started at age 24, I was just like, yes. I’ve been reading them, getting the
property investment magazines. I’ve been watching some videos online. I’d been reading the hype and the books and I thought I’m going to go out there and get rich quick and like 10 years later I’ve realized that like overnight success or financial freedom realistically takes a bit longer than that. Um, in fact quite a lot longer than that. And now that I’ve made my peace with that and have more of a secure, longer term approach to the way I do stuff, you know, it’s taken a lot of pressure off me and it’s trending to much better life for myself and my family. But you don’t get anything cool in life without a little bit of work.
Like let’s get real. And so in terms of strategy, there’s a lot of different property investing strategies out there. You’ve got so many gurus spouting off different things that you can do development subdivision and the building blocks of unit strata, title and commercial properties. There’s a lot of lingo in a lot of different things that you can do. You can go out there and do that and be successful doing that for your average investor and someone who just wants to achieve financial freedom often that isn’t necessary and often that is more difficult than it needs to be, so we’ve been helping people for years invest using a really simple strategy which you would basically call a buy and hold strategy, but the focus is to buy high quality properties in good areas with good capital growth, with good cash flow so you’re not bleeding cash and then paying off those properties over time and maybe manufacturing some growth as well through something like renovations, but eventually the goal here is you purchase high quality properties. You get those properties paid off in the future and when they’re paid off, the rent then goes into your pocket and you can achieve financial freedom that way.
Yeah, like what I love about this concept that we’ve created over time is it is super simple. It’s not going out and putting yourself in a huge debt or huge risk. It has nothing to do with how the market is performing either so you can safely move forward. In the direction of whatever it is that you’re looking to achieve without gambling or taking on huge amounts of risk, which I love and it’s possible as well. Like that’s the thing I love about it, you know, with only seven point five percent of Australians actually ever investing in property is a whole population. Um, you know, it’s a strategy where you don’t have to go out and buy 10 or 20 properties over your lifetime to one day get there. In fact, you could potentially buy a couple over the course of a period of time and achieve what it is that you want to achieve over a 10, 15, 20 year timeframe.
Yup. And so you can achieve this quite easily. This is achievable for most Australians out there and it happens in three phases. So we’ve got what we call the foundation phase where then got the acceleration phase and then the freedom phase where we all want to get to. So let’s just talk a bit about that. So I’ll talk about the foundation. You can talk about acceleration. Yeah, sounds good. So the foundation phase is when you’re purchasing your foundational properties. And these are the properties that are going to go on to deliver financial freedom for you. So these are going to be high quality properties in good areas that are going to have longterm growth, but also longterm rental demand as well. So these are properties that you purchase. You may want to build a granny flat on these properties as well in order to increase the income on these properties.
And the goal is to basically pay these properties off over time, either through putting additional money on the mortgage when you increase the rents, putting that money on or doing things outside of those properties to maybe build up some equity in a property and sell it and then pay them off. That’s going to be in the acceleration phase, but the end of the day, the foundational properties are what’s going to go and deliver financial freedom when they’re paid off through the cashflow that you’re getting. In terms of the rental income. What I love about the foundation phase is that yes, it might take you two or three years to get there and and built and by those foundational properties. And that’s two to three years of your life where there’s going to be a little bit of pressure, a little bit of stress, bit of anxiety, and a bit of action, but once you’ve actually built a foundation or bought those properties that you need to achieve financial freedom, it can take the pressure off yourself and actually start doing more of the things that you really like.
Because the beauty about these types of strategies, the properties should up to a certain interest rate cover themselves roughly if you follow the strategy correctly. And you know that means that it’s not eating huge amounts of money out of your own pocket and lifestyle every week. And I love that. And we’re going to talk more in the next video about these foundational properties and how you can reduce your risk and maximize your chance of return on these as well as going to some of the details about how they can pay themselves off. But the idea here as ben was saying that you’re getting a cashflow neutral or cashflow positive position. And what that means is after you’ve gone out and done the hard work of purchasing these properties, they’re now paying for themselves and they’re also paying themselves off. So you might have a mortgage of maybe 25 years, but there’s enough cash flow coming in that the people renting your properties are actually paying off your mortgage for you.
And so even if you just left them for 25 years, eventually you’d have no mortgage left and would achieve financial freedom. But most of us don’t want to wait 25 years. And so that’s when the acceleration phase comes in. Yeah. So worst case scenario, you know, you’re going to be there in the future if you’re diligent. But there’s only one thing. One question I think that’s important to ask when you get to acceleration. And that is how can I actually make this happen faster? It’s literally that simple. And that means, you know, a whole lot of things that are popping into my mind. I could get maybe start a business or any, a bit of income on the side, a bit of a side thing. Um, you know, your partner could get an answer money, you could, um, you know, actively look at saving more money.
You could budget, you could go buy a property, you could start businesses. Yeah, you can stop having children having have three children each and they are very expensive. Yeah. So my dream was like financial freedom in 10 years now that I’ve added three kids, that probably means 20 years, but acceleration can be done in, in so many different ways. As ben was saying, building a business and using the extra income, the business to pay off the debt or investing in property where you’re in a really high growth period of the market and so you’re getting some equity growth. You could then sell that property and use that chunk of money through the capital growth after you’ve paid tax to then pay off the debt on your foundational property so you could work extra job on the site and use the extra money from that to pay off the debt.
You could even renovate your foundational properties and get extra cashflow and use that extra cash flow to pay off the debt. So the acceleration phase is all about how can I pay off this debt as quickly as possible so I own these properties outright. And what I love about it is we love solving problems as investors. Like you wouldn’t be watching this video if you didn’t like solving the problem of how can I be financially free? So just asking yourself better questions. How can I get there? Fast enables, enables you to start thinking about all sorts of cool and different ideas. And the other exciting part of the acceleration phase is if you don’t want to work harder to get there faster, if you’ve got these foundational properties that are paying for themselves and paying themselves off, you can actually take your foot off the gas in terms of career.
You can start looking at careers that you may like to pursue because you know that in 25 years you’ve got your financial freedom set because you purchased your foundational properties already. Now you could start pursuing things that might not pay as much, but we’ll give you fulfillment in life. And that’s what we’re all about, is bringing your best self to the world. And being happy and fulfilled in your own life. Not working like a dog, just to be rich for the sake of it. I’ve got a mate who has two children and he’s just literally to take this a step up his game, um, but you’ll, you’ll know what I’m talking about in a second because he’s just moved into a caravan and he’s traveling around Australia. He said initially is going to go for three months, but he’s actually now decided this is two and a half years later and he’s still gone.
So him, his wife and his kids were in this caravan. They’re homeschooling them and they’re driving around Australia. And before he did that, he went and bought these two properties and he knows that if he pays principle and interest for 25 years, he’ll end up where he wants to be. And so he’s just gone off and done that. So he’s not stressing over this two and a half year period of what that’s costing him and career growth and everything because he knows his financial freedoms set. And I kind of love that. Like that’s an outlier extreme example. Not all of us are going to go and do that, but you know, that’s just cool to go. Okay. I’ve sort of set up financial freedom longterm. I’ll never be under pension now I’m just going to kick some ass for a few years, have a good time, and then maybe I’ll come back and I don’t know what he’ll do when he comes back or even if he can now there’s like two and a half years is a long time on the road. I’m sure we can all come back and then the last phase is freedom. When your properties are paid off, you now take the rent that you’re using to pay off the mortgages as quickly as possible and you divert that into your bank account and then you start living off that and living the life that you want. Yeah, and I think the coolest thing about freedom, it’s that simple. It’s not so much about the money, it’s
just the fact that you get choices, choices to spend time with family, with mates to travel more, to buy more property, to start businesses, to live wherever you want in the world. Yeah. Like just to do you without the fear of getting sacked or you know all of that other stuff that we carry all the time
and that’s really where the journey starts. Once you have freedom, then you can start exploring where you want to live, what work you want to do. Well, hopefully you’re doing that before anyway, but you just have that freedom to do that and then you can continue to grow your wealth at the same time. So your wealth journey doesn’t stop there. It keeps going. So in the next video that’s going to come out tomorrow, we’re going to be talking about those foundational properties and how you can purchase properties that are going to be solid and secure in good growth areas so you can reduce your risk, maximize your chance of return, maximize the chance of those properties always being rented and yet achieving financial freedom. I love that break down. So really excited before tomorrow’s video where we’re going to get more nitty gritty into it. It doesn’t have to be an extremely complicated and difficult to invest in property and achieve financial freedom, but there is a decent amount of work that goes into acquiring those foundational properties and that’s what we’re going to talk about in tomorrow’s video. So look out for that in your email tomorrow and until next time guys, stay positive.