Just Do It! Financial Freedom May Be Easier Than You Think

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Financial freedom may be easier than you think, if you just go out there and just do it! Nike style

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2 Properties To Financial Freedom

Interview With Ben Everingham From Pumped On Property

Transcription:

One of the problems that people often have with financial freedom is that it feels like such a long slog to be able to do it, but with the new two properties to financial freedom strategy, we’re starting to realize that you can just go ahead and do financial freedom. You can just go ahead and do it by buying your foundational properties, and so we want to talk a little bit about this today. I’ve got a story that I want to share. Ben’s got some client stories or stories of his own that he or she as well, and your percent. I’m going to be like Lebron James today coming in with the dunk. Just do it. Not. He stopped. Yeah, and so the idea for this episode kind of came about. I was hanging out with some parents with school. I’m talking about doing my ultra marathon. They’re a bit older than me, probably 10 to 15 years older than me and he’s talking to this data about how, Yep, I’m gonna run this ultra, and he’s like, okay, so are you a runner?

Have you run a lot? I’m like, when’s it gonna Happen? I’m not four months. It was like, Damn your generation. They just, when they want to do something, they just go ahead and do it. He’s like, for me, people back in the day, people would train for years just to run a marathon and you guys just go out and you just run an ultramarathon within six months and that got me thinking about financial freedom and the two property strategy and this idea that the stages of property investing one stage been the foundational stage where you actually purchased the properties that will go on to deliver financial freedom and that the same as me with an old shaw is that you can just go ahead and do it and Ben I know is talking to clients now has worked with clients in the past where he’s actually purchased a foundational properties in less than 12 months and actually achieved not necessarily financial freedom but set it up for the future within a 12 month period. And I just thought that was an amazing concept that it’s not a 25 year struggle that you can just go and do it. Especially being in the financial position. It can be done in 12 months or less.

I remember years ago, one of the very first clients and when Ryan and I started doing this stuff together that Ryan introduced me to, I won’t say his name, but he’s such a great guy, absolute legend, and he had a good business at the time and he was in a position where he owned a house in CV. He just signed his one home in Sydney and he came to us and said, you know, ben and Ryan, I want to get myself into a financially free position within 18 months. It was like a pretty aggressive goal and this was before the two property strategy. Before all of these conversations either started and we sort of said, well, you know, how do you want to do this? This is what I think. And he sort of said, well, this is what I want to do. So we went out and we bought him a piece of land and we bought him building my house with a granny flat.

We then went out and bought another house which he renovated and built a granny flat on. We then went and bought another house which he renovated and built a granny flat on and this was three years ago, right. This is three years ago. So before we even knew this was a thing, he’d effectively gone out there and implemented the two property strategy three times and then he wanted one more property, which we went out and bought a four pack of units, which we don’t buy any more, but that was something that we bought at that time for him and you know, he ended up with effectively 10 strains of income within 12 months with us. And then his goal because he hadn’t spent a huge amount of money like across all of those 10 properties or 10 change of income, he’d actually only spend about 2 million bucks.

And then it was his goal to ramp up these business over the next couple of years to really do what he could to cement that financial freedom. Not because he wanted to stop working. He was a young guy because he just wanted to replace the income and take the pressure off his business. And you know, I hadn’t even thought about this story until we just started talking about it. Like you know, he just, he just went and did it and that’s the thing, that’s what we want to get across to people, whether I guess when you’re doing it by yourself, depending on your situation, obviously there’s more work in doing two properties to granny flats. Then there is just starting with one property and doing one granny flat. Not really because the amount of work is literally the, the work in property is upfront buying the house and building the granny flat.

So easy identifying the market, the suburb, the street and the property is the hard part. So it’s really just renting and repeating. It’s very, very simple because if you’re a smart investor, both properties are going to probably be in the same market at the same time in a very similar suburb just because it makes the most sense. Like diversification is only for people that don’t really understand markets. You know, there’s nothing wrong with putting two eggs in a very similar basket if it’s the right time for that basket with the right strategy as well. Exactly. If your, if you need the capital growth to and you need to access it in 12 months than sometimes spreading across two markets, you can increase your chances of at least one of them going up so you can leverage it into another one. So there are benefits to doing multiple markets, but I think you’ll be implementing this strategy and you’re talking about holding for the longterm.

It’s not as big a deal. This is a longterm strategy like gone are the days of trying to get a 20 percent return in 12 months. It’s about, you know, that property getting consistent long term returns because it’s high quality, but more than that it’s about replacing your cashflow so that you’ve got choices in your life to do what it is that you want to do sooner. Yeah. So we’re gonna go and walk across the rocks over here now. So the camera might get a bit bumpy, but we’ll see how we go. If you can hear the background noise, if you’re listening to the podcast, we are at the beach at the moment is legit. Like just show them what we’re adaptable. Yeah, yeah, yeah. We’ll be all right. We’ll be okay. But what I was. Yeah, I think I want to get people away from this idea that you need to purchase one property and then you know, in a few years then you can purchase another and I think there’s some people

who are in that situation where they financially can’t do more than one and that’s totally fine, but there’s other people who are in the financial situation where they can do two at once. One hundred percent. Why not?

Like when I was just getting started, I could only do one property at a time. That is, you know, anybody that isn’t on a really, really good income at that time. But you know, now if I had the opportunity to restart again based on the salary or the business that I have now, I could easily go out and buy a couple of properties in a 12 month period of time. And there’s so many people that we talked to every week in that position. You’re just delaying the inevitable if you waiting.

Yeah, we’re going to have to jump down. It’s a bit of fun and I think as well, because a lot of people now are coming to work with you guys are hearing about this strategy and saying, okay, I want to implement it, but I want the help of an expert in order to pull it off. So they’re working, choosing to work with pumps and then in that situation where they can do multiple properties. Literally if you’re hiring a buyer’s agent to do it for you, it’s no extra work or very little extra work for you personally to do two properties or five properties compared to one because they’re doing all the work for you.

Wayside and clients, you know, if you’ve got 15 minutes a week to review the emails and 15 minutes a week to get completely educated on a phone call. Yeah. It’s the time commitment to outsource it to someone else. And there’s plenty of great buyers agents in Australia, you know, it’s about finding someone that culturally aligns to where you’re at.

Yeah. And so I think that’s the thing with financial freedom, we want to make a video probably our next one, which is talking about how it gives you choices in morality, how it gives you choices in your decision making process. But yeah, I think we want to get across the idea that financial freedom doesn’t have to be difficult and it doesn’t have to take a really long time. The bulk of the work is done when you’re choosing that market, when you’re buying those properties and you can go out and you can work hard and focus on doing it as quickly as possible and just do it like my generation ultra marathons, it’s just go out and do it and try it. And that’s the thing. Like with the ultra, I might not make it to the end, but I tried it. And why wait three years to try something that I can do in four months. The same with property. Why wait three years, five years to buy your first or your second property when you can just go ahead and do it and then it’s done. And then even if you buy one or you buy two brians down.

I forgot what I was going to say now. Even if you go out and buy one or buy two. Yeah, I still don’t. I can’t remember what else. I can’t remember the point that I had with that. I wanted to touch on something from there. Um, you know, we get a lot of people that we work with that just want to do one property at a time or that’s what they can afford. And I completely understand that. And then two, three years later they come back and say, I’d like to do another one. And we say that’s fine. And they say we’ll have liked to do it in the same suburb or the same area. And we say, well, you know, in some instances the property price could be the same. In some instances the property price has gone up hundreds of thousands of dollars and they’ve missed out on that opportunity when they are in a financial position to actually be able to take that action.

So it’s just a different way of thinking about it. Like I understand that. Is this why you recommend sometimes you say by the two properties first, then build the two granny flats rather than buy one property, build a granny flat, quite your second property, build a granny flat. What’s the thinking behind that? Was the thinking behind that? Is the granny flat is only constructed for cashflow. There’s no equity uplift from actually doing that. Yeah, what? I mean, you’re not going to make money from building a granny flat outside of the rent return. So sometimes it’s easier to go get another loan for another house than it is to get the loan for a granny flat on a place. It’s really weird, um, with the banks in the way that they go to these things at the moment, they just don’t understand the product yet. So you know, if you’re in a financial position to look at one house and you’re not going to be able to buy another one for five years because you’ve got to save another deposit, then building a granny flat and getting great cash flow for five years to help you save your next deposit, makes sense to not have that negative urine.

You’re not paying it out of your pocket. So let’s say that second deposit. But if you’re in a position where you could buy five properties right now, but you only feel comfortable buying one or two, buying a house and buying another house at the same time rather than coming back 12 months later and paying an extra 20, 40, $50,000 for the same thing makes a lot more sense. And as an investor personally who’s bought 11 properties in the last nine years, I like to go out and buy the asset because that’s the most important thing, to take control of the asset at the right time. And then I like to go and add my cashflow later. Like I’ve still got properties now I’ve talked to you about in Brisbane, which a reno which needed granny flat, but it’s not my priority right now and I’ll.

I’ll get back around to that at some point. Yeah. Well I think that’s the thing. If we can deal with short term cashflow loss because be negatively negative because you’re not getting the cash flow from the granny flat, but you secure that good solid asset in the good area and that’s kind of the hardest thing. Going back and building the granny flat is easier and the market’s not going to go up in value and then you’re buying back in at a higher price. Then the granny flat price might go up a little bit over time, but not probably not like the property market. If you brought in the right area, like I think talking about certain suburbs on the north side of Brisbane to people in videos now for 12 months. The average suburb that we’ve been talking about in those videos, and you don’t have to be a rocket scientist to figure out where they are, has gone up by nine point five percent in Brisbane in the same period of time, did one percent.

So I’m not saying that that’s always going to happen or that that’s normal in any way, but like the world does reward people that take focused action. And I was watching a really cool video on this from another person in the property industry in Melbourne this morning where so many people use sentiment in the wrong way. Like when sentiments would they buy and they pay a premium when sentiments low, they sit on the fence like everybody else does and they miss the opportunity. And I don’t know, something about my brain is just never been following what other people want me to do. I just don’t have that mental connection where we’re going to charge her pants. Pants might get word coming up. Um, but you know, I don’t have that issue where, you know, I want to go in the grain with where everyone else is going because if 80 percent of people are going towards the pension, then you know, I really don’t want to take in your chat what 80 people, 80 percent of people have to say about my financial life, you know, not that they don’t have great value in other areas of life that just financially I’m going to look at the people that have done it as opposed to the people that talk about it.

And I think as well, if you’re looking at the fundamentals of an area, if you’re doing your research into that suburb, you’d be know that this suburb is a good buy long term than short term sentiment plays less of a role in your decision making sure you look at it a bit because you don’t want to buy in a declining market. But yeah, it’s just not as. It’s not the be all and end all. Which for a lot of people I feel like sentiment is the only thing they look at and they get scared off. But when you know, when you’ve done your research, when you know your fundamentals and you know your strategy and then it’s a longterm strategy, it’s got to cashflow play in as well. Yeah. Then you can, you’re free to make those decisions. So interesting that you say that, man, because my entire strategy and we’ve been doing these bids together for almost four years now.

Whoa. Was that a first video? Was about four and a half years ago at that. Took that up in the description down below if you want to see. Don’t watch it. Some areas here for me, like in plate camera shyness. Um, but you know, like at the time I made things so complicated for myself. I had to make this amount of money on the way in. I had to time the market absolutely perfectly. I had to buy a renovator or something with opportunity. I had to do this, that and the other. I had to make short term returns and it was so transactional focus where I think you’ve taught me in business and I’ve applied that the property that it is a longer term opportunity and whether you do it today or you know, in terms of how it worked out for you, if it takes five years or if it takes 15 bible, 15 years just disappears like that.

You will be financially free when you arrived there and so you’re going to get there anyway. Yeah, and swinging back around to what we’re talking about at the start of this episode in that financial freedom can be done when you’re really transactional and when you’re just doing single property deals. I want to pull 100 grand out of this deal. You’ve got to do a lot of those to get to financial freedom, but when you buy a high quality asset that’s going to pay itself off over time and deliver you financial freedom over time. There’s work in the short term, but then it becomes easier and easier as time goes on. And then obviously if you want to expand you can go from there. So I think financial freedom is easier than what a lot of people think it is. Financial Freedom through property with this concept is easier than what most people think it is.

It’s not 10 properties in 10 years. It’s two properties plus two granny flats to baseline financial. Very people actually still believe that like you need to do a lot to get a result. And this like, I don’t understand that, like the path of least resistance is the path that I personally want to take the path least get highest cashflow, highest return on investment. Yeah. As opposed to just doing heat staff and hoping that some of it speaks like what’s the success rate in a 10 property strategy back in the day. I just can’t imagine people would have been getting any better attendance than they are from tif properties honestly. Yeah, I dunno. I Dunno. Um, but yeah, so that finishes off this video. If you haven’t checked it out already, go ahead and check out the two properties to financial freedom video that we did where we lay out exactly how that strategy works. That’s on-property Dark Honda. You four slash five. Oh, eight, which was the episode number for that. Don’t forget to subscribe to the channel as we got new videos coming out every week, day, and until next time, stay positive.

 

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