How To Own Multiple Investment Properties
You generally need to own more than one investment property to be financially free. But how exactly do you own multiple investment properties and what are some of the challenges you have to overcome to get there.
0:00 – Introduction
1:50 – Having the right strategy is definitely achievable for most Australians
3:02 – Have a strategy that helps you purchase multiple properties
4:59 – The sustainability of your portfolio is vital to pwning multiple properties
8:42 – Your portfolio needs to be able to survive difficult times
11:40 – Go back to the drawing board at each property and work out what you need to do
12:05 – Mindset is so important
17:15 – You need to develop your mental strength
19:16 – It’s a lonely journey
we’re currently sitting out the front of a client’s property this client actually now currently owns six properties ben obviously owns multiple properties in his portfolio as well so just wanted to take some time while we’re sitting in the street here to talk to ben about how to actually get to that point of owning multiple properties some of the challenges that come up with that and how to overcome that because obviously most investors only ever get to that one property but generally speaking you need to get to more than one property in order to achieve financial freedom so really excited to be looking at this property today which we did talk in more detail about in a previous video about how this client was able to get $70,000 of instant equity after they built this property so i’ll link up to that one down below but yeah why don’t you talk a bit then about what do you think it takes to be able to own more than one investment property
for me it’s one of those things i think you know i look back at my own journey it kind of just happened as much as i’d love to say it was this beautifully designed way of working through to where i am now it is really just been a mistake mistake mistake mistake until it’s sort of like now become a lot clearer what what i’m supposed to do and you know same for you with your portfolio moving forward so it’s really i think a lot of it’s just in your own mind like a lot of people feel like buying an investment property is like jumping out of a plane we thought with the attitude that’s gonna work where the reality is once you have done it is really just like stepping off the gutter especially if you’ve got the right team in place to support yeah yeah it’s not as difficult as most people would have had themselves believe
yeah so i think if you have the right strategy purchasing multiple properties is definitely achievable for most australians and that’s something that we want to get across to you and the walkthroughs that we do and the content that we create here is that this is actually possible for you if you have the right strategy that works for you and where you’re at and you’re not just diving in the deep end with no clear strategy because something that i see holds so many people back and i get emails about it all the time i know you speak to people all the time who have overextended themselves purchasing their first investment property or they’ve been sold a dud by someone who has sold them a house and land package dream in a remote area you know people people make mistakes and so i think going into your investment for portfolio with a clear strategy in place that will allow you to purchase multiple different properties is really important and if you haven’t already but you are interested in purchasing property and want to learn more about what strategy could work for you then we do offer free strategy sessions so if you go to onproperty com au forward slash strategy you can learn more about that and get talk to us one on one on the phone and get an idea of what strategy could work for you but let’s talk in this video a bit more about strategy and what sort of strategies help people get to 234 properties and what sort of strategies keep people stuck at one
yeah it’s such a good point because there’s so many things that we’ve learned over time mainly from speaking to just 1000s of people in the last five years and so you know a really common thing is that you know people know where they are right now it’s pretty clear to look at your bank account or your investment position or your job in and getting good accurate account of where you are a lot of people also know where they want to be in the future and that is a life filled with choices and financial abundance or freedom it’s just like what the hell happens in between that people struggle with it’s kind of like i know where i am i know where i want to go and so to bridge that gap in the middle the way that i look at it is effectively you know i start with a number so for me it’s you know 150 grand of passive income per year is what i want within 15 years for my family some people want a lot more than that that’s cool some people are happy with 50 grand and that’s fine as well but i know that’s my number and so to get there i’ve worked out that i need three houses with three granny flats and completely outright and three houses for me with three granny flats does not feel overwhelming at my stage of my journey paying them off right now feels a little bit overwhelming because like okay there’s a lot of debt there how do i do that but with little tips and tricks things that ryan’s taught me or things that we’ve talked about like paying principal and interest like using the tax benefits from the property to pay off debt like as the rent increases and the debt decreases the pay off the rent or pay off the debt rather than just taking the income like most people do and like you know making sure i’ve got the best interest rates at the right time all of those little things all of a sudden mean in 15 years time i’m well and truly on the way without even actually pulling any money out of my own pocket
so i think a big thing when it comes to trying to purchase multiple properties is actually the sustainability of it and the sustainability of your portfolio so obviously there’s been a lot of people in the past who would talk about capital growth strategies where you would purchase in a city but you would have a really low rental yield and be quite negatively geared and the idea behind that is that the property growth will grow faster than you’re losing in negative gearing now obviously we’re in turbulent times in the market at the moment and so not as many people talk about that strategy anymore i’ve been hammering on cash flow for you know since i met you man closing in on a decade of talking about positive cash flow and for me it’s really about the sustainability of your portfolio so when you purchase a property can you afford to hold that property and can you actually afford to go out there and purchase more properties and one of the problem with negative gearing is that the more properties you purchase the more you’re bleeding cash
it puts you on a so much financial pressure losing money to hopefully make it one day now i have a really positive personal outlook on the australian market over the next 15 to 30 years and i am factoring capital growth into that i don’t believe we’re gonna say no growth for 30 years in australia but just in case we do if you know the pressure comes off when your property is breaking even or providing extra income every week it means it if i lose my job or i’ve got three young children so each time my wife has not gone back to work after the babies for a while and in fact at the moment you know we’ve made the decision for her to stay at home for the immediate future there’s not as much pressure because we don’t need all that extra income which is going into just paying you know debt or principal on a property that is losing you money every week it’s just as ryan said sustainability was you know means that if i lose a job or if my business declines a little bit i’m not forced to sell a property way before i should do
and then you never know what’s going to happen in life i went through a separation last year which is obviously a big ordeal was very expensive as well moving back into state going back to sydney and so things happen in life as well and if you’ve got a property portfolio that is bleeding cash and something happens in life or you lose an income or you lose your job or business goes down or something like that you can often be forced to sell your property or at least be forced to be in a position where you can’t even think about trying to purchase a second property whereas this property behind us is probably number six the investor who purchased this has a bunch of cash flow properties already and is in a very solid position to purchase this property which may be slightly negatively geared before tax may be neutral or positive after tax given that it’s a new build property with a pretty decent rental yield but yeah they have that opportunity to do something like this which is more capital growth play because they’ve already built up that cash flow and they’ve already got a really sustainable portfolio that they can then go into something that you know might be higher risk or might be negative impact on the cashflow because they’ve already got enough there to be able to do it and so i think that’s something people don’t think about like ben said the goal of 150 grand a year in passive income or whatever your goal may be you then need to flesh that out and say okay well how many properties do i need to own in order to make that a reality and then think about okay what is a sustainable way where i can actually invest in that many properties and get to that point because if you’re investing in negatively geared properties you might be able to afford one but if you need three properties or four properties or five properties to get to your goal can you afford the negative gearing on five you know not many people wouldn’t be able to do that not
when interest rates jump and not when people lose their jobs like you know you don’t want your portfolio to be a fear with our beautiful day portfolio you want it like this is a beautiful day i could sit here literally all day but the reality is a lot of people work out their numbers based on the current state of play which is one or two incomes
historically low interest rates
historically low interest rates maybe interest only on some of those loans maybe you know certain fees around the property maintaining as they are you know like i can tell you this that from experiencing everything that i’ve experienced personally my own portfolio that stuff happens like i just had a property sitting vacant in brisbane for nine weeks because i didn’t want to renovate it yet you know like i didn’t want to just go paint and carpet it because next year i want to do a full rent oh yeah and so i’ve just cost myself you know that’s interesting cost that i’ve been paying on a property for nine weeks like a couple of years back i had someone burn down a granny flat and i literally had a property sitting vacant there for seven months before i got paid out insurance and even then i didn’t get all the mist around it other times i’ve built properties and you know held them for longer there’s just things that happen right and i think you know from getting from one property to a second which is the purpose of this feed you know a lot of people go yes i bought my first As property, sometimes it aligns the way they want to be, sometimes it doesn’t. And then it’s kind of like, what I’ve always done is just come straight back to where I was, before I bought my first property, I kind of budget every single week, I pay myself first, every single week. And I’ve been doing that for 10 years now, I really reduce the fixed costs and variable costs in my life at certain times of my journey each year to accumulate as much extra cash flow and savings as I can, either to reduce debt, or to set up for another property by maybe in a year’s time. And a lot of people go, yes, I’ve achieved my big goal. And then they just get really loose on expenses for maybe one to five years, or they go through having young children and they forget about it. And then all of a sudden, you five, 710 years down the tracking like shit, that’s five, 710 years, I’ve
had to work, I meant to buy a property, and
I forgot about it. And that happens all the time, man.
And just because Ben said in the beginning, I just kind of happen, it didn’t kind of happen. Like it kind of happened, because you’re so diligent in life, and you’re so strict on yourself and what you do for so for you, that’s how you live your life. That’s just how I live it. For me, that’s how it happens. So it kind of just happened for you. But it just happened because you had your goals in mind, you know, and each property would ideally fit into your portfolio in a certain way to lead to another one. So I think when investing if you want to invest in multiple properties, thinking about sustainability, and thinking about how that first property investment will fit into a larger portfolio, and also how that first property investment will actually help you to purchase your second property investment as well and put you in a position where you can afford that. And then as Ben said, you go back to the drawing board after you purchase your first one and to say, okay, where am I at now? Where do I want to be?
And what am I going to do together? Am I financially free yet? No. Then keep the head down. You know, that’s what I say to myself. Like, I’m not there yet. So I’ve definitely taken the pressure off myself, but I’m still working the plan. Yeah. Let’s talk mindset for one second as well, because, you know, I was reading a really good article on your website on property the other day, and it was about the percentage of Australians that own property in general, how did you find that article? It was awesome. I just googled it
out years ago,
I was googling percentage of Australians that own property, and yours was the first website that came up. I think it was even before you and I were doing videos.
Five years ago, something probably needs an update.
It’s a good article. But what I realized from reading it is that I think it was 19% of Australians own property, just straight up. And then if you get to two properties, in terms of the percentage of Australians, I think it’s less than, like, Don’t quote me exactly on
this five years ago, don’t ask,
but it was like, I think it was like 1.9% of Australians get to that point. And then it’s something you know, such a small percentage of investors get there. And the reason why I shouldn’t have said any of that stuff, like to tell the story. But the reason why I think it’s so important is if you go from one investment property to two, you’re in a very, very small percentage of people that get that, like, there’s, it’s not like you can walk down the street and be like, Hey, what’s your investment property man, or to all of the people on the pension or to all of the people like that never had the opportunity or the mindset to go buy a property. And a lot of people that own a lot of properties and that are financially free, do not share information, like the wealthiest people I know. Do not say anything about it,
you’re not really allowed to talk about your income or your financial freedom, because then it looks like you’re gloating, or you’re you’re bragging, or it makes other people feel bad as well, if you’re in a good financial position to then try and I just want to talk about money because I’m passionate about it. Let’s talk about money. I don’t actually care where you’re at,
to learn different strategies,
let’s just talk about it. But there’s Yeah, there’s definitely this stigma around talking about money talking about how much you earn, or how many properties you have, or whatever. It can be hard to find like minded people,
for sure. And that’s probably why we’re such good mates. And some of the people that I hang out with, they’re in similar positions financially, like I just went to Hobart with a bunch of my mates from school. reflexes like brace. But you know, all of us are in great positions, because for 15 years, we’ve been consistently doing stuff. Now some of them are in business. Some of them are in properties, some of them in development, some of them are in shares and stuff, but everyone’s heading in a similar direction. And so the conversations not so much. You know, where are you at? What’s your net worth? crap? Yeah, about ego. It’s, hey, what have you done this year? That’s super interesting. And like, this is what I’ve been doing and learning from each other. And I think, mindset wise, it’s just important to recognize that if you want to do something different, because the average person what gets a job at 18 works till they’re what 70 Yeah. how many years is that a lot
you know if the average person takes 52 years to end up on the pension then if you want to achieve financial freedom in 1015 or 20 there’s going to be some really uncomfortable stuff that comes up mindset wise that you need to be prepared for now like everything that you and i do how many times a week a day a year we tested so often and you’ve just you know some people look at that challenges that you face like the other day right i got a call from my builder on this place at my little alarm building and he’s like hey ben we’ve stuffed up the retaining it’s sitting above the legal height that council will approve it for we’ve got to dig up the entire backyard and do this and that’s what you saw this morning that was a guy running around the site was fixing that it’s like so you’re you’re basically telling me that you know i’m gonna pay interest on this property for another three weeks longer than the build should have taken because of your oversight but i’ve got aware that man like i’ve i’ve got to take the personal responsibility for this is a risk and so so many things are going to come out there’s going to be periods where your properties get trashed sometimes there’s going to be periods where you’re probably sitting vacant where you lose a job where you’re stressed out where you feel completely isolated and on your own where the markets declining in value and all you want to do is what everyone else is doing and that is stick your head in the sand or run away from everything but i promise you like if you want to work 52 years and do it the way that everyone else is if you want to do it in 510 1520 like the education and mindset is so important and just slowly recognizing that if you want to get financially free and 15 instead of 40 or 50 you’ve got to do a bit more in those 15 years and the average person does as well and that’s personal responsibility
and it’s actually not even a great deal more smart decisions right couple of smart decisions watch a bit less netflix it’s more just how much hate to netflix still granted ben so do you watch this this show on stand tv but in saying that i do watch a bunch of youtube so yeah but yeah just it’s it’s a little bit extra it’s just that mental strength that you have to have that when other people would just tune out put their head in the sand that you’ve got to kind of push through that mental barrier when you’re mentally fatigued and say okay i’m going to look at my finances or you know i’m going to look at property or i’m going to learn about strategy i’m going to take this time to educate myself or i’m going to save that money and not purchase that item that i want to purchase it’s just that bit of extra mental fortitude that you need in order to make this sort of happen so it’s not excessive amounts it’s about you know adding that into your life in little ways and trying to create habits around it as well so then it just becomes natural it becomes easier but as ben said when the tough times come which they always do come then it’s about okay i’m going to lean into this and find a way through this rather than just say okay this is too hard i give up i’m not going to buy a property when it’s too hard you’re going to say okay i’ve come up against this challenge how am i going to solve this and what am i going to do
you know one of my favorite quotes is from a weird movie called into the wild which i love
i love that movie love had such a big impact on my life
same of course you know and every most people that i’ve spoken to it’s had a big impact on as i hope this isn’t the route to get run over on this driveway but you know this this movie it’s it’s got this quote in it at the end because effectively this kid runs off and he feels like he’s completely isolated on his own and he realizes at the end of it all too late that life is best shared and it’s something huge i took away that message from it and i also took away that traveling to epic and i want to check out alaska one day but go to the bus maybe not maybe just go for a drive around
the windows of the bus and stuff so people can’t stay there because we’re just going out i’m not sure it’s still there but i remember that a couple of years ago
but yeah so you know life is best shared and it can be a really lonely journey like working on your own mindsets one thing but having one or two people in your life whether they for me for a long time because i had no friends or no family members that had no friends i had my nights i just had no friends that were interested in property
questionable but you know like no no friends no family that got it when i was getting started into it like i was getting into it a bit earlier than most people do and even now i don’t have many of the people that i enjoy hanging out with that are into it and i found like i became really tight with my mortgage broker because he was 40 years of age when I was just getting started, and he owned 25 properties, you know, like, I found that I spent more time with my accountant is boring as that was be, I’ll just be picking his brain. And slowly over time, now that we’ve worked with so many cool people, and we get to speak to them, I’ve got this full community that’s on top. Anytime that’s like, you know, your clients that you can just call up, or they call you and you become friends. And you talk about this stuff with and you get your property fixed with each other. But I found that, you know, doing it with other people around you is powerful, even if it’s that one partner, or that one friend, or that one mentor that you’ve got in your life that you can just bounce ideas with, like how many things that we talked about this morning, on the way down in the car and an hour? Yeah, not so much stuff. And without you in my life, you know, half of those things wouldn’t happen. Like we effectively both just found a way to do much smarter business things,
some of the stuff we’ve been able to achieve in the last five years, we wouldn’t have done by ourselves, no, like the, you know, two parts is better than the whole on whatever the saying is, the whole is better than the two parts by themselves.
Even little things on my property portfolio for me, like I got the confidence because I thought I had to hold lots of properties and own them outright before I could be free. And, you know, Ryan’s taught me that like a couple of or three or four really good properties with great cash flow is all I need to achieve my dream. And it allowed me to release myself from the pressure of those negative good assets I was holding, replaced them with different things like just ideas, right?
Yeah. And then so you’ve got that strategy now, which is just a few properties, which is obviously a sustainable portfolio, which pays for itself, and then you get to do fun stuff and do developments and stuff like that on top of it to try and make more money. So I think we’ll kind of wrap this up, because we could just go on for this for ages. But basically, how do you purchase multiple investment properties, it’s not, it’s not easy, it’s not
easy, you need to have
the strategy in place from the beginning of how you’re going to do this. So you need an idea in mind of how you’re going to do it. Because we have seen so many people purchase their first property and purchase the wrong property. And it takes them years or even decades to recover from that to be able to get to their second property just to make up for what they did, or they overextend on purchasing the dream home first, and they’re unable to be able to meet the mortgage, let alone think about investing, as well as so you need to have the strategy in mind invest in a sustainable way, you need to have a mindset that’s going to get you through the challenges that are likely to have and you need to be diligent with it, and continually strive towards it, it’s not going to happen automatically. It’s something that you need to strive for, and try for. So if you do want to help getting a strategy that can allow you to purchase multiple investment properties, and hopefully lead you down that path towards financial freedom, you can book a free strategy session. So head over to onproperty. com. au forward slash strategy. And you can learn more about that over there booking a time that suits you, let’s get you clear on your strategy and how you can do this. And then you can start implementing it. And if you want to hire the team over Pumped on Property to help you do that, like this client has here with this property. Or if you want to go and do it yourself, that’s fine. completely up to you that sessions complimentary. So yeah, go to onproperty. com. au forward slash session. Check that out. Today, I will link up to the video we did talking about this property and how they got $70,000 of instant equity. So go ahead, check that out. And until next time, stay positive