Treat Property Investing Like A Business

Treating property investing like a business can dramatically increase how much money you make and your chance of success. Here’s why you should treat your investing like a business and some tips on how to do it.

Resources Related To This Episode

The Secret To Find Properties Under Market Value

Rich Dad Poor Dad By Robert T Kiyosaki

Transcription:

A lot of people invest in property in Australia in the hopes of making money, but they’ve never actually treat their property like a business and actually give attention to it in order to make sure that they make money. So today I’ve got with me none other than Ben Everingham, the buyer’s agent from pumped on property. Hey Ben. How’s it going? Yeah, really good. Stoked to be here with you today talking property as we do every week, but I’m excited as well. I felt just vibing on live today. I said it’s going to be a good thing. Yeah, and so this is something that may have been have. We’ve really seen property in this way for a long period of time, but we feel that a lot of average investors in the market than not treating their property investment like a business. The first time I ever heard about this concept in that treat your property like your business actually came from Robert Kiyosaki and in one of his rich dad books, he talks about not just treating your property but trading your entire investment portfolio as well as your personal finances as a business in and of itself. So like you’d go to work, but then you’ve got this separate business which is your personal finances and I really liked that view on things. Yeah, I really liked that.

Well, and I’ve read a couple of Robert’s books, but I, I spoke to this guy that was really, really successful a bunch of years ago. I had a sat down with him for coffee and pick his brain and economists and um, you know exactly the same thing you said investing is like a bicycle wheel. And I’ve always got these weird off the charts,

but he’s like, I’m looking forward to this iron man. So good

center of the oil is the oil. And that is like if you run a business, that’s generally your business. If you are an employee, it’s genuinely your wage from your job. And then around that is, you know, in an ideal world, um, he described like sort of somewhere between five and 15 other income streams coming into your world. This is longterm to create long term wealth coming into your world and his life at the start when you’re getting started, generally it’s your job or your business that is at the center, but he’s like over time you want the spokes coming in from the bicycle wheel to actually fill up at least the same amount of income that you’re generating from a business or from a wage. And I thought that’s a cool way of considering it. So since he told me that I’ve always traded each property like a different spoke ultimately setting me up to completely to replace my income long time. Yup.

That was definitely better than the ocean. That had zero sense to me. So no, I like that. That’s the idea of yeah, you have yourself in the center and you might be an employee or you might run your own business and your own income and eventually you just want these passive income sources to kind of feed the center and feed you in the center. Which is really cool and I think the problem that a lot of investors have is they’re not taking an extremely active role in their investments. You were just telling me just before we recorded the video that some of that 60 percent of Australians don’t make money in property as like how is this even possible when look at the average

long term return on investment in Australian property? That just blows my mind and what I think it was. I think 60 percent of his people do lose money is they’re buying the wrong product. They’re buying at the wrong time and they’re probably more importantly selling at the wrong time. So you know, it is a longterm game. As you and I talk about, everyone wants to get rich quick, but the reality is in property it takes 10, 15, 20 years to really establish that. You know, key pieces of income coming in that you own outright forever. So you know, I think there’s a tendency there to buy markets that don’t make sense. Byproducts that don’t make sense, overpaid, sell at the wrong time when everyone else is selling and you know, buy at the wrong time when she’s, when everyone else is buying.

Yeah. And so, so often like I’ve seen it in the property market, I’ve seen it in definitely the make money online market as well as crypto and like so many other markets where it’s just like, here is a way to make money without doing anything. And so many people are drawn to that, that yes, you know, it’s just this shortcut that I’m going to make money without lifting a finger or without adding any value to the world and we want to get away from that or get you guys away from that idea of just generating money out of nothing but actually thinking about your property as a business. When you run your own business, you need to create value that people are willing to pay for and the value needs to be greater than it costs you to create that value so you can actually make a profit.

And so we’re kind of encouraging you today to take that same idea and apply it to property. So rather than take the approach that so many Australians tape and so many marketers tell people you can do, which is just just buy something and magic money will appear. Rather than that, let’s look at property from a more business standpoint and a value creation standpoint. So we’re going to go through three different ways that we think you should look at property as a business. The first one will be finding value in the market. So that’s like suburbs selection, choosing the areas that are going to go up in value so you can buy a property, do nothing to it and still make a lot of money, but you’ve got to find the right markets and find the markets where there will be more demand and more value for that in the future.

So that’s one of them. The next one would be manufacturing value, so being active in your property, that might be something like a renovation or subdivision or development, that sort of stuff where you can actually take a property, do something to it that makes it more valuable and you can create money that way, and then the last way we want to talk about is actually when you’re managing your properties, actually getting as much value out of them as possible because again, something like Robert Kiyosaki would talk about is that the investor makes the investment and so you could take an awesome investment that’s owned by someone who’s managing it really well, give it to a bad investor and they’ll turn it into a money move, money losing venture. Whereas if you take a bad product, give it to a investor, then they can turn that around and have it make money. So if you can focus on it as a business, manage it. Well, hopefully you can become of those good investors who can make money out of whatever’s thrown at you basically.

Yeah. I love that book. I really, really liked what you said and I actually don’t even have anything to add like he said that so. Well.

Well, I guess let’s just go into each of the sections. Right? So we’ve done, we’ve talked a lot about finding growth and finding value in suburbs selection, but I think let’s touch on it again today for people who haven’t listened to our old episodes because not everyone’s going to go back 100 or 200 episodes to find that sort of stuff. So what do you think when you think of finding value in the market?

Is there any for things I think people need to know and 200 episodes. I didn’t know how to say this, the way that I can say it today, which is good. The first thing is, and the number one thing is timing. The problem with property investing is everybody knows somebody who’s gotten rich from it. Um, you know, thinking about people that bought property in cd six years ago, um, between 2012 and 2017. They have done extremely well. Obviously same with people in Victoria. Like I caught up with the dude yesterday that’s doubled his money in four years in the Mornington peninsula in the last four years, so we all know that person, but I don’t really care about doubling my money in four years. It’s nice and sometimes in the cycle it happens, but what I care about is consistent long term results for the product that I hold long term over the next 20 and 30 years.

So the four things is firstly timing, which I think is the most important thing. The second most important thing is buying houses. Now if you look at the data that’s been released by coal but jake and mock them and to seek. It’s so clear in Sydney, Melbourne and Brisbane, which we’re 75 percent of the future gains are going to come from in terms of population growth, job growth and probably property price growth, um, is, you know, clearly houses almost every single year for the last 30 years have outperformed units. So that’s very important. The next thing is buying metro markets over the regional markets. Now there was an incredible article recently released by team Lolis, which looked at 20 years of property price growth in regional versus Metro and over the last 20 years the metro markets did 96 percent more, the seven biggest metro than the seven biggest regionals.

So I don’t want to lose 100 percent over the next 20 years if I’m buying it for $100 a day. So I’ll be using that as a rule of thumb. And then the full thing that I’ve just recently picked up with some data from Lockwood Matousek where it looked at properties from zero to five ks from the city, five to 15 or 20 cases in the city and then above 20 and by within 20 days of Sydney, Melbourne and Brisbane in the last 10 years would have made you an extra, at least one if not two percent more per annum by just doing that. So as an investor that’s looking for longterm value, if you follow the rules, if timing the right market at the right time, buying houses, buying markets, and buying close to the city or on the beach over a long term, you know they’re the things that I’ve, I’ve observed that actually helped you out. Performed market averages or at least get the best market averages possible based on the good and the bad times that comes through.

Yeah, and so it’s so important to choose the right suburb. Choose the right suburb in the right area because it’s not just the house that you buy it because if you buy a great house, but it’s in a poor area, there’s that saying that a rising tide lifts all boats, so if you’re buying a good property in a good area and that area is going up in value, then your property is going to go up in value. Even if you buy a house in a good area and the area goes up in value, chances are you’re going to make money even though you didn’t buy necessarily the right product in that area. But if you get the right house right, but you’re buying the wrong market and that market goes down, chances are the value of your property is going to go down even if you bought the exact right product for that market.

So they can really good point there probably because buying the right market is where 80 percent of the gains and made, but what I am specializing in now because I understand market timing very, very well, is how can I get that extra one percent in the suburb that I buy and a really good way to think about this is for anyone in Sydney and Melbourne that used to be able to buy a property 10 years ago for 510 k’s of the city. If you had a boat that property at the time for $500 dollars on a main road, that property’s still worth a million dollars today. But if you had a board that same property and spend an extra 25 grand at that time, buying a quieter street, so five slash 25, that gap of $25,000 10 years ago is now stretched to probably $300,000 because the quiet straight is significantly more premium to the owner occupier. And so even while a rising tide lifts all boats within a suburb, you can definitely outperform suburb, market averages by buying the right product to and you know, not enough people are talking about this nitty gritty stuff and you know, I’m, I’m driving for the weekend. So to bring it to the market to a lot of people said that they can not make those mistakes that I’ve personally had to make and we see people making every day.

Yeah. So that’s the thing. I guess this first part of trading property, like your business in finding value is really kind of, it’s very difficult to do, but trying to predict the future and predicting what’s going to be more valuable to people in the future. So we’ve talked about suburbs selection and choosing the right suburb. And also talked briefly about even streets and properties within those suburbs as well. Ben Touched on houses in quiet streets versus houses in main roads, which is going to be a big thing as well as houses over units can have a huge difference as well. So there’s so many little factors that go into purchasing something that is going to be more valuable in the future than it is today. You can’t just buy anything in the Australian market and it’s going to go up in value. You want to buy in the right suburb, in the right area within that suburb and then you want to buy the right product for that suburb as well. So do you want to talk a bit about that then? You know, like

different suburbs, people want different things and so choosing the right product for that suburb. It’s a really good point because let’s think about Perth or Melbourne or Sydney or breezy or any other capital city in Australia. It’s not really a city. Like we we get caught up in this concept of CBD minus five percent last year. I CBD 15 percent the year before. Like honestly, who gives a shit about averages, like if you actually care as an investor, lack of Robert case, Archi does all like I’m beginning to care. Then average is actually meant nothing to you. Like when I read the high end or the good calls and bad cause I’m just like, you’re completely missing the point if you’re following averages. But within each city there are markets within that bigger market or broader market and you know, let’s say that Sydney is Sydney eastern suburbs in a city, you know, southern Sydney, western Sydney and now northwest, southwest and all of the other markets that they’re slicing and dicing it.

Intern now, you know, within those markets, some of those areas of completely outperformed others. So let’s say that Sydney did on average 70 percent over the last eight years. If you were to look at the average return on the southern beaches, beaches or northern beaches of Sydney, it’s more like a 150 percent return in the last eight years. Like certain pockets of completely outperformed. And that’s because, as Ryan said before, there’s a strong demand for owner occupiers, investors plus speculators to get into those marketplaces because there’s such strong demand there. It brings up averages. So when selecting a suburb versus important to now the market, then the market within the market, you know, and then once you get to that level, there’s about 30 key performance indicators that I look at. I don’t mean to over complicate this, but if you really want to beat averages, you have to get that granular.

And what I do is I go, let’s say Brisbane. I like a really like North Brisbane right now, like epic Ehr and good population growth, infrastructure growth for example. I’m good longterm potential there in terms of demographics. And I go, well, North Brisbane is, you know, 80 old suburbs, how do I find the suburb within those? And that represents value. So I start looking at breaking down every suburb across as indicators. It takes me about five minutes to do. Now that I know how to do it effectively, I think there are suburbs against each other within about two hours. And distill it down to maybe 10 suburbs that I want to do further research on and I’ve got the luxury of being able to do this 50 hours a week. I get that not everyone does, but you know, if you’re only going to make a couple of investments over your entire lifetime, like let’s think about it this way.

If you were to buy a $400,000 property today and hold it for 15 years, if you were to get a four percent return on that property per annum versus getting a six percent return on that same property in certain suburbs in north Brisbane to get to do four percent in the next 15 years, others are going to do six. The difference in terms of your net wealth or longterm position is about $239,000 in either growth or money that you’ve lost out on. And if you do that same exercise and million dollars over 15 years at four versus six percent. You told me about missing out on almost 600 k just because you didn’t spend that extra hour to do that extra research. So you know, it’s important to do 90 percent of buying properties, what you do upfront, the buying is the simplest part because once you know what you’re looking for, 95 percent of the market looks like absolute junk. Ninety nine percent of the market isn’t relevant for what you really want to do.

Yeah. Doing this sort of stuff for us. Okay. It makes a lot of sense and it seems really simple and it’s worth the time. For a lot of people it’s really overwhelming because they don’t know what key indicators to look at and there are courses out there that can show you some, if not all of these indicators. I’ve got a course out there on how to do it. I’d do it a bit differently to Ben. There’s so many other courses out there as well, but I think the idea here is that we spend the time to look at these sorts of things and a lot of people don’t. A lot of investors, they just by me where they live or they just hear something on the grapevine that says they should invest in this particular area of some mining town or something and they didn’t actually take the time to learn these skills and to find out where the value is and to develop those skills to find the value themselves.

And so I just wanna encourage people that even though it seems overwhelming, it’s totally worth it to jump in and to start looking at different suburbs, comparing them to one another. I’ll look at the growth over the past 10 years, look at all of these different indicators in the suburbs to try and find these better pockets. It can never perfectly predict it, but it’s going to increase your chances and it’s worth of work. So someone who’s trading property like a business is going to spend the time doing that. They’re going to spend the time choosing the right market because if you’re starting a business in a market that is growing versus if you’re starting a business in a dying market, um, then your chances of making money a significantly different. And so it’s the same for property, are you buying in a rising market, your chances are better versed buying in a dying market and so it’s really worth doing that research in the beginning in order to try and find where that value’s going to be in the future.

It’s so crazy bro. Like these indicators is so simple and they’re all completely free online. Like if you know how to Google then you can find them all. And as you said, it’s like what’s happened in the last 10 years? What’s happened in the last year? What’s the average time on market for a property to sell, you know, how many properties selling a year, but really, really simple basic stuff that a good to now. And then I’ll use that data in. A perfect example is like I could draw a circle of suburbs within 10 k’s in Brisbane or Sydney right now and I like to look at all those indicators and I look good. Then I jumped on Google maps and I go, well that suburb and this suburb look right, but the suburb has 16 major roads or you know, train stations running through it or whatever the hell and that means that there’s only a small percentage of the suburb where people would want to live and the rest of it’s chaotic versus the suburb next to it where there’s no major transport except for a train station and maybe one arterial road running through it, which means there’s more scope for more owner occupiers to live there because it’s more desirable because it’s quieter and you know, both might look the same on paper.

But then that quick check which you learn how to do if you’re trying to beat market averages. Like I’m not interested in just status quo it. Brisbane’s doing three percent this year. I want to do six percent. If when Sydney was doing 10 percent a year, I wanted to do 12 percent, 15 percent, 20 percent. Like. Because I know that compounded effect over the next 50 years completely changes your life. And you know, if you’re only going to do a few properties, it’s worthwhile, like figuring this stuff out a little bit before you jump into it and you will learn like the market will educate you. That’s the thing, like whether you do this upfront or not, you will learn, you know, either what you made or what it costs you. So you might as well do as much as you can to prepare for that before you get started anyway.

Well, and you might not be able to do it as well as ben does because he does this as a job every day for his clients and stuff like that. But whatever you can to. It’s better than doing nothing. So if you do want to check out my course, go on property dot Condo, you force us suburb and I’ve got a bunch of videos there. They’re just run through some of the indicators that we look at. Also leave the link so that in the description down below, but that’ll kind of get people started in a cost effective way if they want to do it. Otherwise, we have talked about this in three videos as well. If you don’t want to spend any money and so you can go back and check those out. I don’t actually know off the top of my head which ones they were because they’re done so many, so you may have to look through the archives.

Sorry about that. So that was point number one, which took longer than I expected.

I think that was a really good point to look at it because that is such a key vital part of investing in property. The second point is looking for ways to week we say manufacturer growth, but really it’s creating value in your property and so this can be done in a variety of different ways. One of the ways that we have talked about in the past is buying under market value and finding those properties that’s listed from an outside realtor where they don’t really know the price and putting pressure on them to get that price down or to get it settled before open houses and stuff like that. So you can buy under market value, but there’s also opportunities to subdivide or to renovate. Um, there’s so many different ways that you can skin the cat.

Went back to hurting little animals again. I don’t know where that saying came from. My Dad used to use it all the time. He was like this. So

what is the same that there’s so many ways to skin a cat, but

that is epic. The trace craze, cell size, last name. But Chris, he’s a repeat client of ours and he’s just such a good dude and he’s like, you and run it. Always hurting animals. Like what’s your problem? He’s like, your language is so violent towards little animals, man. Always laughing about it with him. He’s like, you’re always killing two birds with one stone or skin. And I’m just like, man, he’s such a legend. That sounds so funny. Like you’ve never had

think of that. Um, but yeah. Do you want to talk? Just touch on a few different value creation ideas. But really I want people to understand that when you will. So many people just buy property and that’s it. They just buy it and hold it and that’s fine, but you can buy property and you can create value and be an active investor in that property if you want to make more money faster.

I love what you said and how you broke it up because the number one thing you can do for value creation is understand the market, which we touched on previously and buy below market value. And as Brian said, that can come from an out of area agent that can come from somebody that I’m a property manager selling your property and underperforming sales agent, somebody who’s going through a divorce or a public trust based selling the property or the government selling the property. It could just be in a flat market. So that’s the first rule of trading value for anything you buys, trying to buy below market value. And that comes back to just understanding one suburb like the back of your hand and when that cheap property comes up, moving on it in the first week before anyone else gets a chance to buy it.

But then outside of that, um, you know, because we focused on houses and because I like housing, um, you can buy an ugly home and just do a little cosmetic renovation and that can be a really nice way to one Bible, a market value because a lot of people don’t see what it could be and to add some value through the work that you get. Um, a good cosmetic thing, which is painting carpets, you know, lights, door handles, fans, window finishing’s, tiding up the garden for every dollar you put in, you should be able to get at least $2 back out if you do it right. Then there’s the more like bigger level Reno, which could look at kitchens and bathrooms and stuff like that. Generally you only do those things if you’re looking to trade equity or before you sell a property, at least from my perspective because doing it outside of that just appreciates over time and it’s not worth it.

Um, then you’ve got like a more advanced strategy which is buying like a three bedroom home with a big floor plan in like an extra media room or something. Turning it into a four bedroom home or going from one bathroom, one car space, the two car spaces and two bathrooms like that can be a really good way of adding value that can be really simple to do as well. Um, you know, alternatively you could buy a house on stumps and didn’t fill in underneath the suburbs, right? That can be another great way of going from a three bed, one bath to a beautifully renovated five, bed two bath home. You’ve got yourself divisions and they sort of the ways to create equity or growth. And then from a cashflow perspective, you know, you can tidy it up cosmetically. You can also build granny flats, which can be an amazing way to get a really strong return on your cash investment as well if you’re at that stage. So, so many different ways to do this. And then there’s townhouses in subdivisions and stuff too.

It’s starts getting more and more complicated with higher investments, higher risk and stuff as well.

You’re not. I love that stuff because what’s the point of taking on the risk when you get the same return from doing something a lot easier, but there’s other people out there with different ideas.

I love that. You touched on the idea as well of manufacturing cashflow. I want to talk about that a little bit, but first I want to link people up to the video that we did on finding properties under market value because I feel like a lot of people will listen to this and want to watch that. So that was episode 446, so go to on property.com forward slash four, four slash six and you can watch that episode where Ben Talks about how he finds property under market value. That’s like that’s a really good episode that I think people should watch. But yeah, the idea of manufacturing cashflow as well as something that not a lot of people talk about. They talk about renovate for equity or flipping or. Yeah, all that sort of stuff to create equity, which is great, but also and as we’ll talk about in the next step and managing the cash flow of your property and managing it like a business, getting as much rent as possible from that property should also be a priority if you’re treating your property like a business you want the most rent coming in because then we’ll hopefully you’ve been a positive cashflow position and you’re also making the most money on that property year in, year out before you sell it or if you ever sell it, so you want to be making as much money in that way as well.

You don’t just make money in property through capital growth. You can make it in cashflow as well and so you can invest into things to generate cashflow. You know, ben already touched on them. Cosmetic renovations to make it more desirable as well as granny flats in certain areas can be great ways as well. So look at both ways to create value in the equity of the property as well as the cashflow of the property as well. And then the third point that we wanted to touch on was really the day to day management of the property and trading that like a business because so many people, they get their property, they get it rented and then they’re just kind of leave it and they don’t really assess their portfolio on a regular basis, which I know is something that you are like religious about. Then you’re always doing that and always looking for opportunities to maximize your cash flow.

Yeah. Because every single dollar that I save myself isn’t dollar pure profit like in my hand. And that’s the way that I think about it. I’ve thought about it that way for a long time because I’m at low risk, tight ask buy by hl. Like I can’t help myself. I’ve done 200 bucks away, Uni for too long or something and I still haven’t got out of that head space. So, you know, as my account once said me, he’s like, Ben, it’s a lot easier to save yourself 30 percent than it is to go out and, you know, make another 30 percent in business or in your job. Um, and I, I took that to heart, like if you can reduce your space, your income dramatically interest, if you can increase your income on top of that, then you’re doing some amazing stuff. But you know, the way I think about property is it is a business and at the end of the day you want to work on a number of properties outright providing you with a passive income stream for life so that you, your family and the people that you care about and have choices to show up on the day, how you feel like showing up if you want to work 20 hours or if you want to work no ours, that is your choice for the rest of your life.

And so we get caught up with property being this thing and we get this passion for life. I’ve definitely got the property bug. I love it. But what I, how I see it more days, diocese as something that’s going to get me from where I am to my goal. So you know, if I want 100,000 dollars per year of passive income, you know, I need to properties that give me a thousand bucks a week age or four properties that give me $500 or blah blah blah. Like that is how I say each property that I buy. And so sort of coming back to trading it like a business, you know, there’s a few core elements, you know, let’s pretend the visa real business. Um, you know, business has how’s, it has marketing, it has accounts, it has management, it has a few other little bits and pieces to it.

And property is no different. So the parts of your property business, your accountant and your tax depreciation specialist and 80 percent of people don’t have the right accountant and don’t have a tax depreciation report in place. As I was saying to Ryan before, I’ve just got a depreciation report on a property that are built a couple of years ago. It’s going to save me $10,000 a year in tax for the next 36 years. Like, you know what I mean? Like how the hell doesn’t everyone have a tax depreciation report right now? If you are in multiple properties and that was an expensive property to build a brand new, so don’t hold those numbers for your and secondhand the property, but you know, depreciation is very, very important as a business that is a cost base that you can add this time immediately right off. If things change with the government as I can do, then type priest video, the grant is out, you know, your accountant is your absolute ally and partner because there’s some accountants that understand and specialize in how to get the most deductions out of a property.

And then there’s others that have no idea what they’re doing because as specialize in personal income tax returns for employees. So you’ve got to have that team member in place. Um, I think it’s very important to have the right bait manager or mortgage broker in place. Now, an example of this was familiar. I saw a headline that the banks have been reducing their interest rates on investment loans are rung up. My mortgage broker, he said it’s sure are rung up. He said, you know, I said, how can I save myself some money? He said, ringing your banks. I made four calls to four different banks with that, have some of the properties that I own and literally saved myself $30,000 a year in interest from an hour of calls. Like it was that easy and it’s like people that don’t have an alert in their calendar or their diary once a year to call their bank and ask for a better rate up.

I couldn’t believe it, but I don’t know how long I’ve been paying too much for her, but I’m pretty aware of that stuff when interest rates are dropping, like is an opportunity there. So that’s why I’m like, you know. Then there’s your property manager, like what are their phase and what value are they providing, what are there extra fees on top of that that you can negotiate back with? Once you become less of a pain in their ass and have a good landlord, generally you can negotiate on their rates and that’s another opportunity to save some money. And then each time you transacting property, like you know, how can you get the right team in place of solicitors building and pest inspectors, etc. But obviously made sure they’re doing the right thing

for you as well. So I think constantly reviewing this sorta stuff and reviewing what expenses you are paying and where can you save money or waking yet Better team members in is going to help you in that acceleration phase that we talk about. They’ve been talking about saving 30 grand a year in interest, you know, that’s 30 grand a year that you don’t need to pay, that you can put towards paying off those properties, have them paid off faster and achieve financial freedom faster. So looking at your properties as a business, running them like a business, analyzing those expenses, analyzing the income, working, increase the income, working a decrease your expenses, that’s going to give you extra money and profit at the end of the day that you can either do or you can do whatever you want with it. You could use that to pay down the debt faster so you own that property outright faster. You could use it for your own lifestyle, you could use it to offset other properties or to save for a deposit, but that’s money that you’ll have in your pocket that you wouldn’t have otherwise and that money is really hard to go out as an individual and necessarily just drum up that money through your employment or through a side business or something like that, so it’s really don’t waste those opportunities to maximize your income and minimize your expenses.

I caught up with a mentor of mine the other day and now this guy is young. He’s like 37 or 38. He owned a building company which builds 100 homes a year. He ends up development business, which is about another hundred 10. Has he? He personally just for funders, about 150 units or town has a year just on his own. JuSt for fun, just for fun. LIke he’s got a property management business of 600 properties. He’s got like. He’s got like he owns. When video is you shut down, you know those little things where people go into a shopping center like highland movies through the dvd thinks he owns like 300 of them around Australia. Like this guy has got an that’s like five of these 40 businesses that this guy’s got and I asked him what is the biggest lesson he learned from trading property like a business and he’s like, you have to be the driver.

This is your money. You cannot rely on any of your partners to provide you with the information that you need to save yourself money so no one else can pick up the phone and talk to your bank to save you money. No one else can send that email to your broker and ask them to get you a better rate. No one can ask for the reduction. Every time someone gives them a price. You know you need to keep your accountant in check like they’re not just. Most accounts are just going to do what you tell them to do because that’s what accountants do, like order takers. But he said that when he goes into his account and you know, he lets him do what he does and any challenges, all of it because you know, if you can have a conversation that saved yourself $30,000 in tax, um, United States, thousand dollars of money that goes straight in you back pocket.

So, you know, I just, I just take ownership for all of this stuff. I’ve got a spreadsheet which has all of the expenses and all the income coming in, um, year on year that I provide to my accountant. So I don’t want my accountant punching him receipts last count and focusing on the strategic stuff. It’s my job to look at the incoming and outgoing expenses on my property each year. And then I also very accurately track what I paid for the property and what the exit costs were for the property so that when I do sell something appropriately, know what the capital gains taxes are and things like that. And these are things that you can start to learn. Like there’s lots of opportunities for smart people to figure out, you know, things like tax in it. In a more effective way with their qualified partners and really tracing good savings for themselves.

Yeah, and I think we’ll leave it at that. Like that idea of taking responsibility yourself and being the driver behind your properties is really what this whole video is about or this whole episode is about for those listening to the podcast as well. Is that. Yeah, you take responsibility for it. You be an active investor in it. Stay on the ball with your properties and look at ways that you can maximize it.

Allston brighton. That was fun.

Yeah. Cool. So that’s. Well I guess that’s it from us. Usually I like a sign off message that I’m like, you’re not going to elaborate on, but I feel like we just kind of nailed it on the head right there. Another analogy to. Alright guys, that’s it from us. We hope that you enjoyed this video. We hope that this encourages you to go out and to treat your property, investing in your business, whether you already own existing properties or whether you’re looking to purchase your first one. Thanks so much for tuning in and until next time, stay positive.

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