How To Buy 2 Investment Properties: Step-By-Step

How do you get from 0 to 2 properties and what do you need to do to get there? What are the steps involved in buying 2 investment properties?

Today I talk with Simon Everingham who has recently secured his second investment property about exactly how he did it.

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0:00 – Introduction
1:10 – The journey begins
1:29 – Step #1: Get a job and understand property
2:51 – Step #2: Identifying your investment strategy
4:53 – Step #3: Save your deposit
6:10 – Step #4: Increase your income
6:30 – Step #5: Researching your market
7:05 – Step #6: Finding and buying the right property
8:41 – Two paths to getting to your second property
11:05 – Rinsing and repeating

Recommended Videos:

2 Properties in 1 Year – Simon Success Story

You Own 2 Investment Properties, What Next?

Transcription:

Ryan 0:00
i recently sat down with simon everingham the buyer’s agent from pumped on property and talked about how he was able to purchase two properties in just 12 months so went from zero to two properties within 12 months and in this video he shares exactly how he did that and step by step how you could do the same thing if you wanted to this was recorded back in february of 2020 so before everything happened worldwide so there may be a couple of references in there before all this happened but if you want the step by step guide of how to buy two investment properties then i think this is a really great video and you’re going to love it i hope you enjoy hey i’m ryan from onproperty and in this episode we’re going to be talking about exactly step by step how do you buy two investment properties and simon here has just secured his second investment property we’re just going to go on and go through you know the granular details of the step by step we’ve done the success story and talked about it in more detail if you want to go ahead and check that out i’ll link it below but step by step what did simon do to get to this position now where he owns two investment properties so let’s start back you know two years ago nearly

Simon 1:12
two years i think the journey really starts in 2017 january 2017 when i first started working full time

Ryan 1:21
yeah so this is a kind of a three year timespan yeah then for you so what what was step number one

Simon 1:28
step number one was to get a job and yeah get a job i’d been at university before that so if you’ve been at uni you know that lifestyle is like scraping the barrel week in week out but yeah got that full time job working here at pumped on property first step for myself was really understanding property to the basic level as you know why do people invest in property yeah so that’s what you really want to figure out why the people invest in property i think the best place to start is rich dad poor dad a book written by robert kiyosaki very very very successful property investor he just breaks it down in such a simple way and when i read that for the first time quite a while ago now kind of just completely changed the way that i looked at the world that i looked at the system that i looked at money that i would assets and liabilities and it just really solidified my plan which was to invest in property

Ryan 2:30
yeah and so so step number one is to look at why property and to decide i guess whether or not property is something that you want to pursue yeah and if you think that’s gonna be the best investment class for you because obviously the shares there’s businesses there’s other passive income models as well so it doesn’t just have to be property but so you work out properties for you get a job yeah i’m guessing you just spent time saving

Simon 2:52
yeah well i would take it even further from that and i would say that you know once you know why property and you’ve chosen property as your asset as your vehicle to financial freedom then it’s really about identifying the strategy so the best way to do that is to think about okay where do i want to be by the time i retire and mapping a strategy out to do that exactly so you know let’s say right now you’re earning $100,000 you might say i want to replace my income by the time i retire so i don’t have to worry about working anymore so you can start by that and then you go okay well if that’s what i need to do what do i need to purchase what assets do i need to purchase today in order to get myself there in the future so looking at the big picture and then scaling it back so if it is to replace $100,000 we have a strategy where you can do that with just two properties with two granny flats

Ryan 3:55
yeah so it’s about looking at the timeline looking at okay where do i want to be and then looking at the pieces of the puzzle and say okay what pieces do i need in order to achieve that and then scaling it back again to say okay well what is my next step or what’s the first asset that i need to acquire or purchase or create in order to start me along that journey and if you need help working out what sort of strategy could work for you and your situation and your goals then simon and the team over here at pumped on property do offer free strategy sessions so you can get on the phone to them talk about your situation where you’re at what you’re trying to achieve and then they can help you to map that out for yourself and to see what what do you need and what are your next steps so go to onproperty com au if you want to learn more about that and book in a time there okay so we’ve looked at why property you’ve got your strategy in place you’ve got some income coming in

Simon 4:50
yeah all that saving yet yeah well we’re saving this entire time okay but this sort of stuff doesn’t take too long to figure it out it’s only a few hours of focused thought to it figure out that strategy especially if you’ve got the right support team around you but then once you once you scale that strategy back and you know exactly what you need to purchase next in order to make that first step toward financial freedom then you know how much money you’re going to need to spend so that’s when you start obviously saving away and i would 100% recommend budgeting even though people hate it you need to budget you need to sacrifice you need to cut a few things out you need to maximize the amount of money that you can save and minimize your spendings while still making sure that you’re still doing the things that bring you joy doing the things that bring you happiness not cutting out everything but just finding that perfect balance where you can put away maximum amount of money you know and still enjoy your life and

Ryan 5:47
that’s the i think in this section of budgeting it’s important to enjoy your life and enjoy the process because otherwise you’re going to give up yeah and we’ve seen so many people who start budging and they just go too hard too fast and then they hate it and then they end up spending their money on a holiday to recover yeah from their budgeting and then the money’s all gone so enjoying your life yes cutting expenses and budgeting is important but i think something that’s not talked about enough is actually increasing your income generally you’ve done which is something that i’ve done and it’s just like yeah as you increase your income then obviously saving can get easier if you don’t just go out and spend the money thinks that you’re earning more so you can save more faster and then throughout that process as well there’s so much that we won’t have time to get into today but once you pick your strategy then it’s looking at okay where’s the australian market where each capital city at in their market cycles what sort of region of capital city do i want to invest in what sort of suburbs and doing your suburb research and so you’re doing all of this at the same time as you’re saving and we’ve done so many videos on this sort of stuff yeah in the past so you can look through the channel and see how to do some research and all that sort of stuff yeah you can learn about that over there but you’re doing this process saving and then ultimately you’re looking at properties in the suburb that you’ve chosen you find a good one make an offer exactly purchaser you settle on it

Simon 7:15
exactly is in a way as simple as simple as you just mentioned

Ryan 7:20
it’s simple but it’s not easy

Simon 7:23
yeah well it’s simple if you if you’ve done what you need to do if you’ve done your research if you’ve developed your strategy if you’ve got your budget together you’ve got your savings together you build the team around you to help support you throughout this process throughout this journey it does start to become simple and i always say it’s not about what to buy it’s more about what not to buy

Ryan 7:46
so let’s face it it’s basically a process of elimination it’s exactly you’re looking at the market you’re looking at the cities you’re like okay well i don’t want to buy in the city so what’s left and then you kind of picking out of what’s left and then the regions i don’t want to buy in these regions so what’s left in the suburbs as well you comparing them to each other and you’re like well i don’t want to buy in all these suburbs you end up with like two or three suburbs that you’re like okay

Simon 8:06
yeah exactly it’s that easy it’s easy to find what you do want when you know exactly what you don’t want yeah because when you’re looking at everything it’s impossible there’s 10s of 1000s of properties on realestate.com and domain can buy every single day it’s impossible to try and find what you want when you’re just looking so broad so you really need to get ultra specific and ultra dialed in on exactly what you need to buy so that you’re not looking at all this shit and you’re only focusing on the things that you know are gonna get you to where you need to be

Ryan 8:39
yeah and so once buying your first property there’s kind of two different paths you can take to get to your second you can do what simon did which is just save another deposit or you can kind of let the market do its thing or manufacture value and then get an equity loan on that property in order to fund the deposit for your second property so you went around of saving yeah another deposit and working you increase your income you worked hard you say todd you didn’t pull anything out of property number one to get property number two the good you

Simon 9:09
know yeah just use 100% cash deposit so the thing that took me it took me two years to save my deposit for the first property but then to get to the second property i had increased my income significantly compared to that first two years but what i did even though my ink my income had increased by i still had the same savings behaviors and budgeting behaviors and so i was still only giving myself this small income to live my life and still enjoy silica for brekkie once a week after dinner once a week you know buy a couple of beers go on a couple of holidays like still enjoying my life having enough money to do that but the savings just increased tenfold so not too bad it allowed me to get that deposit together and it took me pretty much to the day that i went unconditional on finance to have enough money

Ryan 10:08
yeah and that was how you were able to do it in such a short period of time in 12 months because generally speaking 12 months isn’t quite long enough for the market to grow enough to get an equity line unless you’ve done a renovation or manufactured value in some way or maybe purchased under market value or if you’ve been in a market that’s going crazy like sydney and melbourne can definitely do from time to time which we’ve seen in the last few months unless you’re kind of in that position you’re not really going to be in a position to refinance in 12 months time so saving a deposit or you can do partial as well yeah

Simon 10:44
partial savings partial equity growth which is what i’m planning to use to knock down these two houses and rebuild two brand new houses so at that point in time or use yeah what i was saying earlier 50% 50% or 50% equity and 50% cash savings to have enough deposit to knock down and rebuild yeah

Ryan 11:07
and i think something that allowed you to do it so quickly as well and made it easier is that you rinse and repeat it yep so you had your set strategy you had the areas you wanted to invest in and the types of properties you wanted and so you did that from property number one and then you just rinsed and repeated for property number two whereas a lot of people by not really have a strategy kind of just buy a property and it comes down to buying property number two and they got to start all over again because they don’t really know what their strategy is what areas they’re going to invest in what types of properties and so they’re just starting from scratch whereas you in that year of saving didn’t have to do a lot in terms of developing a strategy or you know researching the areas obviously staying on top of how things are developing in the areas and stuff like that but you you know you kind of knew everything

Simon 11:55
yeah yeah which is that makes the process so much easier as i was saying it’s so much easier if you know what you need to buy yeah and if you know you shouldn’t be buying

Ryan 12:06
yeah and in the last episode in this series we’re going to talk about what did you do differently for property number two versus coffee number one if anything at all so what did he learn from probably number one that he adjusted for property number two to go ahead and check out that video now allows him to next time stay positive

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