What Is This Episode Even About?

Do you know what this video is about? Because Ben certainly doesn’t haha. Prepare yourself for some top quality banter and a secret that Ben has held from Ryan all these years.

Resources Related To This Episode

2 Properties To Financial Freedom

http://onproperty.com.au/523 – Visit the site for a full transcription and downloadable audio version of this video.

Transcription:

What are we doing? A video on? Hang on stuff and say, hey guys, it’s Ryan here for on property and Ben here from pumped on property, doing a walk and talk about something. Ben’s going to decide what we’re talking about. He put me on the spot. I had this. I had this plan before. So what are we saying? What does it feel like to have. No, not what does it feel like? I already did a video about that. What about um, what it was something about? Did we get from passive income or something? He’s so awkward right now. This is awesome. You guys don’t say this or you ever see is the confident us on camera and we’re just loving life and sometimes we spend like half an hour just kind of what are we going to talk about today?

Obviously a lot of designer. I can’t remember it, but I had it written down for you. As soon as you walk in, I’m like, yes, this is the video. What? Nah, man. All right, we’ll start again. We went. We weren’t really sure. What was that? Passive income. What does money? No, that’s what I did. That’s the video I did. How passive income change your life. See iron man throwing up. Hi Guys. Ryan here from on property. And today I’m with Ben from pumped on property. How are you guys? And we are doing another one at val walking talks along the water here at Ben’s office, which is about to move. Yeah. When selling the house and moving into another little office space which is going to be fun. Yeah. So another office space which will also be right on the water as well. So we can do some walk and talk to them.

There will be videos from my office. Actually the girls, they’ve got this suede office. I’m like, they’ve got all the time. I’m like check out the back. Got a little dodgy but dungeon room or something like the three by three dungeon room and they’ve got like them. That’s, but you know, they’re the ones that are doing the hard work so they’ve got to have the Va. And um, so today we wanted to talk about how passive income change our lives or how passive income affected our lives. It wAs just more of an effect. I’ve seen change too much. Not too much. Oh, I guess I didn’t.

Alright. Well why don’t you start, because I feel like, I know I’ve talked about this a fair bit and I will go into it, but you start. When did you first start accumulating passive income and like when did that first you first noticed that it started to impact your life? In what way? When I was like really good really are about this stuff. When I was like I think about my first two properties when I was 24 down in sydney and um, when I was about 26 or so, I really started to record this stuff. Like I was really into how much money I was making him the different income streams of my life. So there are two ways that I sort of defined what I was doing in terms of passive. One was how much equity I was making per year on my portfolio and then how much extra income after cost size making for my properties.

So I think by the time I was 26 or something, I’m lazier and laser, here’s my wife and I were at about property six or something like that, like we accumulated pretty quickly, maybe were 27. Um, and I had this head space where I was like, I need to earn three times. My wage was the number before I left my job from my passive income streams. And then I met ryan. So at this point you had acquired six properties, guessing it had some equity at the time. I don’t not sure what cashflow position you’re in, you’re in your positive, right? All this cash flow positive, but it wasn’t affecting your life. Like you were still working in a job, you were still just doing your thing. And while the extra money it was just getting reinvested at this point, every dollar that I was making that wasn’t spent like in my budget at that time was gorilla as well. Like it was very, very tired as you lost my wife. I didn’t have a car or anything like that was re invested 100 percent sense

a second we had another deposit. We would go and buy another property. Trump are flying over the top. Um, so yeah, I was making

probably that time somewhere between 30 and 40 k per year of passive income from the properties I bought because I bought some really good properties. Like my second property was a five bedroom house with a granny flat on it. That was cost me 200 k that was renting for like 700 bucks a week. So I had good properties from day one. um, but I was more interested in the equity at that time, which at that time I was making about a hundred and 50 grand a year in the equity just from a full percent increasing the value of those properties. So why were you so excIted about the equity? Just because it’s so much money. Just because I didn’t understand cash flow like I do now. Like cashflow is the most important thing, but at the time I was like yeah, I’m making 150 grand without going to work before I even wake up.

Which is a really young way of thinking about stuff, you know? And that was the really interesting thing when we hung out at that point, because you had this property portfolio that was happening for you, you had this baseline level of passive income that wasn’t great. Like when you’ve got two kids, 30 or 40 grand a year is not a lot of money. So it’s not a lot of money. Yeah. But I feel like a lot of people get in that trap where they’re making equity but it hasn’t affected their life yet and they just wait so long for it to positively affect their life. And then for some people they get to that point and they get to experience the good stuff. But for a lot of people that I’d like to stop, it’s just like a mad.

But a lot of people I’ve been meeting, it’s just been like, they don’t even get to that point because they get divorced or something happens. And so then they’re like, they’ve worked and they’ve gained the equity, but they’ve never enjoyed it.

If I kept living like I was living then I’m like one thing about laser and I was like, we really did enjoy the let’s keep walking. I feel like I talked better and think better when we will laser and I were going through that phase. Like we still had a sick time. We’re goIng over say’s we’re still like living in places that we wanted to leave in, like we’re spending time together as a family and stuff. Like our priority was still that. But just my mindset was so bad. I think in that sense that it was just about succeeding in making money and buying stuff and going as far as I could that if I had have stayed like that one, it would have made me deeply unhappy because you can’t just the shave, you need to be fulfilled on that achievement. And then secondly, you know, there would have been only one mission and it would’ve been either money or lisa and I wanted, I wanted. My wife is, I love so much so.

Well, I think what passive income did for you was when we had that conversation was that you are like, it gave you the bravery to step out and to start your own thing. Whereas you were in your job and you’re like, okay, I need to earn three times my income before I’ll step out, and then we had that comment. I’m like, do you already have enough to get by? If you start a business and it fails, you’ll still be able to pay the bills and not live lavishly, but then you can go back and get another job later. Like you had that buffer iN place so you could step ouT and start your buyer’s agency, which has helped so many people today. Like it ended up working out. It didn’t work and if it didn’t then

it would’ve been fine. I remember when I left my job, like I literally came home driving the car home and I’m not a very emotional person as everyone knows, and these beads, unlike the analytical one, but I was literally crying in the car and the way home around. There’s twO people whose opinion I really care about, lIke when I’m feeling that way. Once my dad who’s been in business for a long tIme and gone through hates that shit in his life, that’s hard. And secondly, laces and talked to my dad on the way home. Actually I talked to lace in the way. I’m like, fuck, I’m sorry. I’ve just works over. It’s not hAppening anymore. I’m like, what are we going to do? Like literally that was that point. Like I had the buyer’s agency running in saying you Wait your job, but you didn’t tell lisa and then you told her after you quit.

Like basically what happened with this accident? I did not know that. What happened with my job was that I was working for a really, really talented young guy and a really good brand and I wanted to buy into a different business that was associated with that brand, but I didn’t tell him about it and so he found out about it and basically sat me down one morning when I walked into the office and basically said, we’ve got two options here and you’ve already shut the door on the first option because you’ve lost my trust. And he’s like, so did you get fired? This is, it goes. You never told me that you quit you. I always thought you just quit your job to stay in or anything, but you actually got a pilot. I’d like, man, like I literally got fired. Like I walked out that door and it was coming anyway, like two days before I’d talked to the guy who was looking to talk about buying the busIness off and I’m like, I can’t work my boss anymore.

He’s like, I said, what should I do? And he said, you’ve got to like obviously because good people is everything and if your head’s not here, you’ve got to go. And then he obvIously told my boss as well and he made the decision easier for me. So that was upset on the way home in the car because I knew I was leaving anyway. But having the month or two quIcker than i thought it would. Okay. Yeah. And so she had that passive income and lucky. But I also had the business at that point, which at the time wasn’t a buyers agency. It was just a blog with heaps of info where I was referring people to people and making money that way. And so I had the confidence that that was already working with me doing like 90 hours a week on it. Yeah. So what I did like this is the true stories.

Like I came home and said I’m going to have to get another job and lacy’s like you’re going to be in the same position in 18 months again of hiding whoever he working with and needing to do your own thing. And so we went and did their own thing and you know, looking back, it was hardest four years of our life, but also the most amazing Turkey because working for yourself is filled with good times and challenges as well. You’re working for yourself. It’s tough sometimes sometimes. Yeah, just got to make everything up to be the one to make everything else on top of the responsibility. Um, I feel like this hasn’t actually been talking about passive income and what Is caught on that, but it’s been super interesting. Um, but I think for me I had the bravery without the passive income because I was working in a six figure job.

I was a pharmaceutical rep. I’m free car, free petrol, all that sort of stuff. And I had, I was making about $500 a month on the side online and decided to throw it all in. We had basically at the point where we’re about ready to buy a house as well. This was on the central coast and then throw it all in at that time when two kids, two kids. And then, um, yeah. So I already had the bravery, so passive income kind of didn’t give me that because I wasn’t too scared because I always knew that I could go and get another job or if I got in real dire straits I could borrow money from family. So I got a job, but I always knew that option was there, so I kind of had the bravery just hold it up a bit higher. OtherWise inside, under the chin, I’ll hold it. I’m a rookie on outta bounds again. So. But it’s worth it. yeah. And so, but then, I don’t know, I sacrificed, I was never about the

chunks of money and I know a lot of people went into business and they were all about getting money. Now I’ve got a mate who was just texting me the other day going, I need to make more money and he’s got this business. He was like, it sucks to be working so hard and still scraping to get by. That’s tough because he’s like bought a house and kind of overextended as well. And I never did that. I always gave up the money today and there was so many opportunities to make good money today, but I saw that in the future it wouldn’t deliver passive income and I would get reliant on those chunks of cash. And so I made so many sacrifices in the beginning in designing my business to be passive from day one. And so I worked so hard for so many years making little to nothing, like so much work for no money. and that’s the big thing with robert kiyosaki. He says the rich don’t work for money. like I lived that like I didn’t work for money. I worked and uh, nothing. But then the stuff that I did like three, four years ago that I didn’t get paid for is now paying off today and delivering me passive income through my businesses today.

And that business model that he created, his, you know, enabled you to have a really unique lifestyle. Like there’s no way like with the value that you’ve added in that community that you’ve tried in all the content you’ve produced, like that was so logical. I remember like years ago, like coming down to barely for skype with you and you like everything was about three years from now, like what that’s gonna look like and now it’s looking exactly the way you said it was.

It is. And then everyone today is like, man, I wish I had a business like yours that was passive. It’s five to seven years of smart decisions. But then they say, oh I need a business that shows that passive but I want to make more money today. And I, well like I did years making no money scraping by

fighting with my wife over money because we didn’t have enough because I knew that in the future that’s what we would have. And so it’s interesting that you say that man, because like my, because I already had the properties because I’d been working with these franchisees that were all multimillionaires and because I had some passive income coming in from the business properties and because I’m just like a different personality type. I was like, if my business doesn’t make a profit every single month from the day that it starts, then it’s a failure. And I was talking to my dad, we had a quiet month in january, the salad vichy like unusually quiet, but then by the end of june, this is sort of early january, I was expressing my concern and then by late january we smashed it again. And um, he was, yeah, that’s

business. Some months a good segments aren’t. And I’m like, so, you know, different ways of doing the same thing. But I suppose getting back to what I’ve picked up as I’ve gone through this journey, like it’s given me choices. What are we trying to help? People wIll hear us talk is this is one of those sharing ones where it’s just sharing what’s going on. Yeah, maybe it like choices. Okay. So once you get the passive income it gives you, it gives you like a baseline. I guess that’s why we’re talking about the foundational properties is when you have that foundation, you’re not crazy wealthy and can do whatever you want, but you have a foundation that backs you up. So rather than being centerlink, it’s like your own properties in your own passive income. And then you have the freedom. And the choices to decide what to do from there so you can make a decision like, oh I kind of do, which is we’ll all live with less but then do more in my relationships and do more in the like go surfing and go running and stuff like that.

Like I want to do an ultra marathon is legit. This is legit. Like I’m legit starting to train for an ultra marathon, 100 k I’m going to start with 50 k four. But like I would love to do 100 miler, which takes like 24 to 36 hours of running to do. Say that is a passive income business because she fucking train five hours every day. Yeah. So I’m happy to set massive goals and then changed my mind halfway through those. So I’ll set that goal and maybe aim for it. And then it might never happen because my life would change because previously my goal was to become really good at super smash brothers melee. And then I spent six months practicing that and then kind of decided, you know what? Like the amount of time that this is going to take is not going to be Worth it for me because that was really a 10,000 hour thIng.

Yeah, that was. I would have taken ages and even like the tournament experience and like when you go to compete and how much time that would take as well. Not just in training and I was like, yeah, no, probably not going to be my thing, but it’s interesting to hear that now ultra marathons eating, just like when you have passive income, you have choices to go, well I don’t want to work in a normal job. Right? So I’m not doing nine to five struggling to get by paycheck to paycheck. So it’s like well what do I want to do? And it’s like, well I don’t know, like I got no idea what I want to do with my life. Like or what I love because I spent so long just focusing on work and so then it’s like, well now I’m going to try super smash bros melee. Oh now it’s going to try ultra marathons on the. I’m going to try this other thing or you know, this week I’m just going to take my kids to school and hang out with my wife or you know, or this week I’m gonna work hard on something. I don’t know. It just gives you those choices. I love that name because we’re just so different in the way that we’ve. Stuff like

my tWenties because I wasn’t enjoying work, but I just worked all the way through my twentIes with other people mainly on up until I was 28 and a half. I did run the marathons in my twenties, like I did all the different stuff, like lots of partying, lots of traveling, lots of like having fun times, lots of exploring stuff. And then I got into 28 when I found my focus and my obsession between 24 and now has been pat like property. But my obsession also became my business on top of property from 28 til now. So I’ve been like sort of going through that phase of life and only really last year started to make better choices probably from hanging out with you more. I’m living in such a weird life. Yeah, maybe I’ll try something slightly odd. So for right now for me, like I’m just enjoying being present in the moment, like in terms of the choices that I’m making because of this opportunity that I’ve had and created.

it’s literally dropping my kids to school every day. I don’t work fridays anymore. Taking six to 12 weeks off a year, like working with my family, which is unorthodox for a lot of people, but for me works amazingly well. LIke just training, surfing, like playing baseball while we’re having meetings at work. Like that’s where I’m at. It’s just a really less is more approach at this stage of my life. I just enjoying that. But I’ve also got a four month old baby at the moment. So I suppose you’re forced to do that because of necessity because it’s harder to go and do everything as well.

Well I think it was really cool. Our converSation in the car we were talking about, you guys might’ve heard about two properties, so financial freedom thing that we’re talking about at the moment and the three phases of that, which is first you build your foundation so you’ve got your foundation phase. Then acceleration, so working hard to pay those off, and then the third phase is freedom, but then we realized there’s actually a fourth phase which is after your freedom can then can come wealth as well, so passive income can buy you the time to then focus on, okay, how now, how do I become really wealthy, but how do I do it in a way that doesn’t negatIvely impact my life? Like how do I do it in a way that I enjoy it, that I’m happy that my relationships are solid because I always had this thing like this deep core belief in me that it was like if I can’t become extremely rich but my marriage falls apart, like that’s not worth it. Yeah. That’s not success. And so I always had that thing and I’ve seen friends become wealthy and lose their marriages and stuff up their families and stuff. And I was like, no, that’s not more important to me. But yeah, once you have the passivity,

let’s stop for a second. [inaudible] we’re at the new office. We have walked here. Even the look, that’s absolutely awesome in that pool. That’s a good pool. So the girls will have a view of this and then ben will be in the back somewhere. I’ll be at the back looking at the child that they’re building behind it for other retirees. But yeah. So I think then you can build wealth, but you can do it in a way that doesn’t negatively impact your life. Because I feel like a lot of people do build wealth and they, they sacrificed too much to get it. I sacrificed too much for like I’ve talked to you about this person, the off camera. I traded too much of myself and I like my old boss for example, that had to sack me like we were really good friends. I was lucky in terms of performance.

I wasn’t the best traditional employee, but I was the highest performing employees ever had smashed it, result wise for him and I didn’t need to do that. like I didn’t need to be such a high, strong, ambitious person that I had to burn amazing relationships with amazing people and I look back at my past and I’ve, I’ve burnt some friendships, I’ve burnt some business relationships that didn’t need to happen that way and I went to that in the future, but you know, I couldn’t say any other way when I only had one direction and now you know, I realized that that direction sort of ebbs and flows and then again coming back to choices and experiences that enables you to do that as well. Yeah. So I think we’ll leave you guys with something to ponder, which is most ways people approach property investing. And this is what I guess we really want to challenge is that the way most people invest it is really about massive wealth creation.

Like back when you were looking at, I’m making 150 grand a year in equity law. That’s what most peopLe focus on. And so I guess what we want to challenge today is that there is an alternative to focus on which is getting to that point of freedom, not that point of extreme wealth, but then once you have that freedom and have those choices, then it’s up to you what you do. And I know that you’re stIll investing to build equity. Like I’m going to be investing to build financial security for myself separate from our businesses. So like we’re still doing that stuff even though we’ve got the baseline. That’s a big thing. Like the way that I’m investing now has changed so dramatically, but it’s still the same concept. Cashflow, capital growth. Should we turn around and head back? It might be better this way, this way.

Yeah. So now I’m excited to be on this journey, man. And I love doing these little bits and yeah. Yeah. well that’s the thing. I think it’s really exciting to see that, that we both have that passivity, but we’re both building wealth ally. Like we were still going at it. Like most people don’t talk about that, that once you get there you don’t stop. And uh, I went and had a meeting on tuesday wIth a business associate of mine. He’s 37. He owns, I don’t know, in different businesses. He’s got incredible commercial property that he owns or owns outright. He’s got heaps of residential staff. He personally developed about 100 to 1:50 units and townhouses the year just as a side thing. Like he’s got something like 40 different structures that he owns everything in and we sat down for two hours and he’s doing it in a way where he said this to me like his, he’s got two kids 37 years of age and he says then the most important thing is the next 10 years with my family because he knows that he’s going to have 30 years in business, but he knows his kids are only going to be young for the next 10 years.

And you’ve talked to me about this before as well, like where his ideas is about enjoying time, like his leverage himself out of it. And he’s only working about six months a year max. He’s all over the world with his family all the time. Drops his kids to school everyday, but he’s got to that next level which is wealth, which is having assets and other people working for you, creating income that continues to put him in a better longterm position. and I’m not saying I want to go there personally, but it’s inspiring to see that people. It doesn’t have to be hard work always. In fact, it actually gets a lot easier with time experiences and leverage search. Say,

all right, that’s it from glasgow has, um, if you haven’t checked it out already, go ahead and check out the video that we did on two properties to financial freedom so you can have a look at that strategy and have a look at whether or not you think that works for you. It’S not for everyone, but it might be for you, especially if you liked this random rambling video. And until next time, stay positive.

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