Pay off your mortgage or buy another investment property?



hey guys and girls it's nathan birch here from be investor combo EU and they are talking about whether you should pay off your mortgage or pay down your mortgage should I say or put the money towards the next deposit and just in brief like there's two ways that we can go on that depends whether you want to buy more properties or whether you want to pay off your mortgage and have no debt and the there's no right or wrong for me personally I'll explain to you the differences probably the best way to explain it is to introduce myself in two different ways I can sit here and say hi I'm Nathan Burch I bought a property back in 2003 and it's 2014 now and I just paid off my house in seven years and I bought a second property so I earn a property that I bought two hundred and forty-eight thousand and now I own it outright it brings me five hundred fifty bucks a week rent and I've just bought myself a second property which is God fifty thousand dollars worth of debt on it and it brings in me three hundred bucks a week and you know life's pretty good I still work at my job but you know things are good to me that's one option the other option is that I can sit here and say hi I'm Nathan Burch I have I don't even know how many probably 250 properties my properties are bored you know for two hundred and forty eight thousand worth four hundred fifty thousand you know it returns X amount of dollars it's a positive cash flow of board and other 150 old properties after that because I leverage my money and that's the real simple answer to it the reality is is that a lot of people will go and you know if you're going to pay twenty thousand dollars off on your mortgage this year at 5% interest that is 5% of 20,000 is $1,000 you're going to save this year now you can save a thousand dollars on your mortgage that's cool however if it doesn't really bother you that much and you know you don't need to save that thousand dollars because you obviously save 20 grand and you can pay that off your mortgage if you use that as a deposit for another property and it's going to make up a scenario here pretend it's 30,000 and that's $1,500 same some numbers that say for instance you go and purchase a property for $200,000 which in the next year goes up by 10 percent whatever or $20,000 in growth and you bought it $20,000 below market value cause you're friggin awesome like me and it's a foreign student in that next 12 months you make 40 grand at 40 grand in growth live say for instance that property could give you a thousand dollars per year or 20 bucks per week positive cash flow could be a positive cash flow property puts a thousand dollars in your pocket it just depends how you look at the numbers they're all just numbers it doesn't matter if it's you know how it's it's personally as I said at the start of this film I couldn't sit here and say I have two properties or three properties it's nice comfortable lives all right all that sort of stuff or a consider your saying you know I've got 150 properties not being cocky about it I'm just saying I consider inside 100 properties you know probably portfolio worth 25 mil dead-on at 10 mil passive income stream 500 700 whatever the figure is at the moment a passive income you know the difference was because I talked to that approach and not paying the mortgage off but you know I understand other people are more conservative or whatnot and it all depends what you're most comfortable with if you're going to buy a property lose sleep over it get stressed out don't buy it if you can see there's a path that you want to take and you want to increase your wealth and be able to increase your asset bathe base faith base then that's an option I'd always go with building that portfolio don't get me wrong there will be a point or say no I don't wanna have any debt I might pay down some rent but the fact that it is is that if you build up a big enough passive income stream 50 grand a hundred grand two hundred grand five anagram whatever it is there's a say build a passive income stream of 100k per annum you could pay your mortgages down at 100k per annum and as you paying the mortgage is down by a hundred grand pattern when you say that is the day this is the day that I hang up the boots and I don't do it anymore the 100 grand per annum as that's saving you 5% per annum that's five grand a year extra cash flow so next year your cash flow will be a hundred grand plus 5k and we'll just continue to go and you did we'll come down and I think the most important thing is that you put a solid foundation property portfolio that'll help you you know achieve the dreams and goals of what you're trying to do so thanks for watching my two cents and once again as always not financial advice do your own research make sure you're happy make sure you're comfortable make sure it's in line with what you're doing catch up soon thanks again for watching

Should You Buy A Home Or Investment Property First?



hey guys and girls it's Nathan birch here from the bee investor come to you headquarters and today I'm talking about investment properties versus principal place of residence –is and can you use an investment property as a stepping stone to getting to your dream house for me you know I was only thinking about it probably a couple of months ago remember I moved into my dream house it's not my dream house it's my dream property I'm going to knock the house over and build a mansion just waiting for counselor finger but it's a separate issue with it I remember pack up some newspapers I do like to collect some mementos so I can show my children and grandkids that I wasn't just a boring old fart when when they think I'm in the future and the fact is is that I picked up these newspapers and also the front cover and it said Sidney's own Donald Trump there should be clear on something that was before everybody hated him and he became a wanker trying to be a president so there's no love there or love loss I'm leaving that to the side but they did make the reference to me being the Donald Trump of Sydney and the fact is I had a bit of a laugh to myself I had 150 properties at the time it was a few years ago and thinking back you know I'd built an empire for a property standpoint but I didn't actually own a principal place of residence that's quite ironic in itself and then when you break it down a little bit further is that I actually think a principal place of residence is an emotional purchase what I mean by that let's say for instance we've got a half million dollars if I'm gonna green here says cash it's my air cash it's like my air guitar but it's just cash let's go over to Half Moon bugs and I wanted to go on by car yeah I could go buy a Lamborghini maybe an Aventador had a few dents and or something but let's say I can buy Lambo just for the fun of it right there's going to be so cool I'm going to pick up so many chicks in that car but the reality of it is is that that car is an emotional purchase I could use that same 500,000 to go and buy 20 Ford Falcons and send them out to be taxis and to produce me an income so I can use that income to then go and buy a Lamborghini yeah so let's just break it down again you use your five hundred grand and go buy something that's going to be an emotional product which you know I could deal with the same five hundred dollar datsan it was to get me from A to B or I can use it to set up like a business if you use it from a business perspective those twenty taxis will bring in an income to pay fear Lamborghini and to pay for your boat and to pay for whatever else you need so the way that I looked at it is that I need to build a fleet of properties those properties where I need to be used as of business I couldn't afford a principal place to live in if it was going to be my principal place of residence there's going to probably be negative geared anyway so I can go rent one of someone else the poor bastard that's going to be losing money every week I'll be renting it off them living rail want to live and enjoying the fruits of that but building my net worth on my asset position and then turn my properties into an income generating position to support my principal place residence which you know if I was just going to go buy principal place of residence to start off with there wouldn't be anything flash it wouldn't be anything sexy and it would just be a pretty standard sort of house but that wasn't going to be my dream house anyway so what point did the dream house what point was I doing anything else apart from stroke to my own ego by saying yes I own this house that I'm going to go to sleep in at night you know lots of people don't only houses they does rent houses fact is is that I just look at the property portfolio as a vehicle I knew that I couldn't buy my dream home when I first started investing I bought my first house ad in Western Sydney in the Mount Druitt area of Sydney people used to look at it as a bit of a rough spot be very careful and politically correct with my words that I use out there but it used to have a bad stigma about it okay that's all I could afford so I bought that and I've put myself into a position after buying lots of those sorts of properties that I could afford treating them like a business making sure the rents cover all the expenses all that sort of stuff until I can put myself in a position where I can build my dream home my dream home is going to be 2,200 square metres of fun if you put that into a bit of perspective over the block of 40 units which is 1950 six square meters so it's a pretty big freaking house if I'm going to build but that's what I want to build and I'm going to build that now because I can because I built the property portfolio beforehand you know there's lots of different ways I'm going about skinning a cab and that was the way that was going to work for me that's the way that's made me successful to who I am today and you know a lot of people whinging today that they can't get into the property market I heard the same ten years ago if your ending for the next ten years you're just going to be further and further behind pull your finger out go find something you can afford to buy and stop being a wanker that thinks you can have everything and complaining econ so I hope that helps and if you've got any questions keep watching the videos on this YouTube channel you can email us at Adam unit B investor comdata you or give us a call at one three hundred three six seven nine to five have an awesome day

Mortgages & The Power Of Leverage Explained | Property Investment | Real Estate Investing Tips



Leverage is very powerful in the world of
property investing, and understanding leverage is the topic of this video. Hi, I’m Andy Walker from monoperty.com where
I blog online about my journey as a property investor and landlord, sharing what works
for me, and what doesn’t, to help you start or expand your property portfolio. Leverage is about borrowing money and it’s
used to maximise your buying power and level of returns you can get back and the most common
method is by using a buy to let mortgage. So let me explain the benefits by using 2
examples with some simple pictures, the first one will be using without leverage and the
second will use with leverage. I’m going to keep the numbers and the details
simple so lets assume the buying price of the properties includes the buying costs and
lets say we have 100,000 to invest So you buy 1 property with cash. Brilliant.
Your over heads are going to be minimal which means you will be able to keep the majority
of the rental income that it produces. Overtime the property will appreciate in value, inline
with inflation, and lets say in 5 years time, because we always invest for the long term,
this property is now worth 125,000. You will have then have received a quarter of your
initial cash back on paper, with very little risk, whilst still enjoying a regular passive
income and cashflow from rent. Now in the second example lets look at using
your 100,000 as a deposit to buy 4 properties. You split your cash into 4 deposits of 25,000
and you buy 4 properties for 100,000 each meaning that you’ll have a mortgage of 75,000
on each of those properties. In total, you will have still invested 100,000 but now you’ll
also have 300,000 in mortgages. Your overheads are obviously going to be more expensive now
because you have got mortgages to service and your profit on each property is going
to be less compared to example 1. But because you now have four properties,
and providing you’ve done your homework and due diligence correctly, the total net
income of these four properties can easily surpass the total net income of buying one
property with cash. Now lets look 5 years into the future as we did with example one.
You know have 4 properties worth 125,000 each. That means you have capital growth of 25,000
in each which gives you a total profit of 100,000! You will have doubled your initial
cash investment in 5 years. Amazing! And that, ladies and gentlemen is the power of leverage. Now you can leverage at different amounts
by only borrowing 60, 50% or less to buy fewer properties, or you could leverage higher at
80, 85% or more to buy more properties. I prefer to gear at 75% and that’s a topic
for another video. Now I know some people can be very nervous
about taking on huge amounts of debt, but you have to remember that this is good debt
because it’s providing you a return, you’re buying an asset, and professional investors
like debt. They use it to their advantage. It’s completely different to taking on consumer
debt which you would use to buy a new car or go on an expensive holiday or something
that doesn’t provide you with a regular return. This is how I think about it to give myself
some reassurance. Firstly, I know I’ve done my homework and due diligence and I’m looking
at buying a good property that’s in demand on the rental market that is going to be producing
a good positive cashflow, and secondly, the mortgage lender will only loan me their money
when they have done their own due diligence and they’re happy that the property I’m
looking at buying will make a good buy to let. If they don’t believe that the property
will generate an income for me and that I won’t be able to service the loan and pay
them back in the future, then they won’t lend me the money. I see it as like a safety
net. They’re double checking my checks. Of course there are no guarantees and I know
some people have made bad investments in the past and that they’ve had to sell their
properties at a loss, but in my experience, if you buy right, you will survive market
crashes because rents don’t decreased in times of a recession, so when property prices
fall, I have still been able to service my mortgage without any financial problems, and
as market conditions have improved, I have then been able to enjoy the capital growth. Leverage is a great wealth creation tool and
it’s something that I’d like you to consider, but ultimately it comes down to your own level
of comfort with risk. And I would like to add, that buying one property with cash, is
better than not buying property at all, in my opinion. If you are new to property investing and you
have any questions about leverage, or if you’re an experienced investor and have something
that you would like to add, then please leave a comment in the box below or head over to
monoperty.com/leverage. If this is your first time to the channel,
please subscribe so you don’t miss any of my future videos that are all geared towards
helping you start or improve your property business. Thank you for watching this video
to the end, my name is Andy Walker and I will see you in the next one. bye for now.

Return On Investment (ROI) or Yield… Finance Analysis on Your Next Property Investment



if you walk into pretty much any estate agency across the country make it clear that your property investor and ask to see their finest investment property deals I can pretty much guarantee you they'll put some properties in front of you and start to quote you a percentage return that they feel that that property will actually give you this is called yield let me tell you what it is and why it's completely the wrong set of numbers for you to be focusing on hi there my name's Tony Thor from your first four houses and my channel is all about helping you get to investment property number four as quickly and as painlessly as possible so as I say you're in your local estate agent they've started the put some properties in front of you they're thinking were your property investor you're going to want to know what the yield is so let's start things off by looking at that actual equation so yield is the annual rent usually based on just a single family unit renting the property divided by the purchase price multiplied by one hundred and it's two that the yield that the estate agent is actually going to be quoting you so let's just pause for a minute and have a quick look at this equation the annual rent generally speaking it's going to be based on a single family unit renting the property and in truth there's not a huge amount that you can do so actually vary that amount of income that's coming in there are a few things that you could do but not a huge amount of vary that that particular number let's look below the line at the purchase price well the purchase price is the purchase price that's what you're buying it for again there's not really anything that you can do to actually change that consequently if you get four terraced houses for example in a row let's imagine we've got three bedroom houses to reception rooms if you look at the yield that you're gonna get on those they're all generally gonna be about the same in the example I've given you here they're say 5% now property investors people are actually doing this professionally use a whole different set of calculations they use return on investment now let's look at what that equation looks like so we got to take the annual profit we're gonna divide that by the cash that we've invested in the deal we multiply that by 100 and again that gives us our return on investment so again let's just pause for a minute and let's just have a little look above and below the line so let's start off with the annual profit well what does that look like what is it made up off it's made up of the annual rent that's actually coming in take away the annual costs that are going out so the annual rent that's coming in is there actually anything specific that we can do so actually vary that well the answer is absolutely yes there is you might choose the multi let the property you might use the la chase strategy you might split the property up in some way to increase and boost the income you might change it from commercial to residential or vice versa there's a whole bunch of different things that you could do to change the level of income that's coming in the costs going out is there anything that we can do to change that absolutely yes there is you might have a mortgage with a sizeable deposit meaning that your annual month sorry your monthly costs going out mortgage wise are less you might have a very small deposit with a larger mortgage going out you might have a number of different bills that you're gonna factor into this frankly the costs going out can vary enormous ly depending on what you're actually doing with the property so let's look below the line now let's look at the cash that we're investing invested in the deal so that's actually going to include the initial cash that you're gonna invest plus any refurbishment costs that you're going to actually put into the property so the initial cash that you're going to invest in this particular property can that vary absolutely it can you might decide to put 100% of your own funds into buying this particular property you might actually use an investor's money so actually to fund this particular project and in theory have none of your own money in the actual deal now obviously that's going to change a number of other parts of the equation but it's a fact that can vary dramatically or what we see somewhere in between you might have a high mortgage of low mortgage so that is absolutely going to change your refurbishment costs can they change of course they can depending on what you were actually going to do with the property they can vary wildly especially if you're going to change the class use for example so all four parts to this can dramatically change depending on what you're actually doing with the place so if we take those same four properties it's absolutely the case that you can get a 5% return you could get a 50% return on the house next door you might get zero on the one after that or if you've got none of your own funds in the property deal at all is absolutely possible that you could get an infinite return on your money and if I look at some of the properties that I've got in the right-hand column and the return on investment it absolutely says infinite as a return on my investment so please please please the next time you're looking at a number of different projects and you're trying to decide which one to go for please ignore yield if you can take the extra effort that it's actually going to take to calculate a genuine return on new investment and then please base your decisions or at least make one of the components to your decision the return on the investment I really hope that you found that helpful I really do this maternally investment calculation is something that is so dear to my heart and I genuinely think that a lot of property investors don't use this when they just want to decide what to buy if you found that helpful I would love it if you could take a moment to subscribe to my youtube channel if Facebook is more your thing please take a moment to like my Facebook page and this way I can keep you up to date well then the next property related video is available to you because all I want to do is to help you on your property investing journey my name is tony law from your first four houses i really hope that you found this one helpful look for the ceiling thank you

Investing in Property – The best way to build a property portfolio



hey guys brette alegre-wood here author of the 3+1 plan and chairman of ypc group where we help you to build a thriving property portfolio so you can live the lifestyle you've always dreamed of but in such a way that you're not creating a 2nd job or actually working yourself into an early grave so what I wanted to do today which just we've had been running the webinars now for a while and we've compiled hundreds of questions that you guys have been asking so I want to take those and what I've done is I've broken them down into you know a number of really key questions that most of you guys are repeatedly asking and and what I've done is I want to present them to you so you get that level of education I've always been you know a massive massive supporter of free education and so that's what I want to do for you guys today is really give you I guess what most people out there are concerned about in the market now about property investment about strategies about structures about all sorts of things the questions that you guys have been asking so you know it's not now me telling you what you should be thinking it's Moo guys actually feeding back and I love that about the social media and I love that about webinars so yeah sit back relax and let's get started one of my favorite subjects guys is building people's portfolios and you know you find as an estate agent and when I first started out I was in a state agent and you know you're selling one home to one person and then you probably didn't see them again and maybe they would come back and buy another one if their going to move or something but realistically you know it was you put a lot of energy and a lot of emotion into you know helping them get their perfect property but the thing I love about what I do now is that I actually don't really get emotional about the property and I don't actually have much emotion about of properties that we're selling but what we do is we actually build people's portfolios so this question is probably one of the ones that I most enjoy dealing with and I most enjoy seeing the evolution over time happen you know with some of our clients our biggest client has 17 properties right now you know and they've been working with us for what is it it's about six years now you know so it will get some fairly sizable portfolios across there and you know we've got with one property as well but that you know the building of the portfolio is is really the thing that I'm most passionate about because over those who know those seventeen properties I've seen that in a husband and wife change you know as people and really you know change their fortunes change the way that they view their pension so you know one property is never enough anymore you've got to build a portfolio and so how do you do that well you know the question is how do you how do I build my portfolio safely okay now I'm going to deal with the building the portfolio first and then I'll add the safety safely on the end because I think it's one of these things where it's all it's actually very easy to build a portfolio okay if you you know and I've seen people build up portfolios of 20 30 50 properties but then they've lost them okay they haven't been able to hold them so the question is not about necessarily how to build up the portfolio that's a pretty easy thing to do it's about how to build it up safely okay and we'll deal with a safely bit first I want to show you how to build it then we'll come back and we'll talk about how to actually build it up okay so it's a really simple process okay and with property you know there's not too much complexity about it there is a lot of people involved in a lot of emotions and a lot of arm you know you know various stakeholders if you like and because of that you've got to have really clear lines of communication otherwise things fall over okay and things happen and you know for the most part you know one of the reasons why we work with teams of people that we've worked with for ages is because we know them we communicate well all of them we know that jobs they do and that's really essential if you're going to build a portfolio a large portfolio you want to have a solicitor's you want to have a broker use you want to have a sourcing cut you know so you want to have all these people that you know and you trust okay rather than just try and apply in people every every time fresh you know and that's one of the key things to building a portfolio but actually that's probably talking about the safely bit of it anyway how do you build it pretty simple depending on how much capital you've got anytime you've got let's say you can just start off and you build one you can buy enough money to buy one property now I always say you know if you look at the property here okay you'll see these little things drawn out okay each one of these is a two-year period because what I do I break my the old building and my portfolio management down into the two-year blocks okay two years is key because for me two years is far enough out that you know I can't just grab it and reach it okay but it's also not so far out that what's going to happen is that I just you know don't even think about it because there's a danger in putting something so far out but you just you know go under that something else so two years I find is a really good measure and especially when you think about mortgages you know two-year fixed mortgages and things like that it's a really good time frame to build your pop properly put fire to it also means that you know if you're looking at it and coming back and reviewing every two years then actually you're not going to miss too much opportunity the the property cycle moves in very slow and predetermined you know cycles and because of that you can take advantage of those cycles so let's have a look here so we bought our first property not only have we bought it with cash flowed up to two years now let's just say that for this particular property we spent all our money we haven't got any other spare equity we put aside the cash flow in a provisional account so we're safely doing it but the important thing is we've got that first property now how we're going to make either we're going to make money off the rent so off the yield that gives us if we've got a higher yield that gives us money back in our pocket that we can put in back into property later you know once it builds up or we've got income we'll get a higher income disposable income we put that disposable income or the other way is that what we need to do is we need to wait for property go up in value now there is another way and then the other way is that we sell this property take the profit and put it into a next one the problem I see with that is property is a relatively illiquid asset okay and because of that it actually costs 5% approximately and this is a rule of thumb 5% to get into a property 5% to get out so you know if you're going to buy and sell buy and sell buy and sell every single time then we'll lose 5% which really you don't have to because what you can do is buy and remortgage so as this property goes up in value what we want to do is go back to the which company whether it be they've been the one we with at the moment or a new one whoever's got the best deal obviously you know any user mortgage broker to find that out and take that money out now that we've got this equity from this one we can then and we've still kept this property this is important thing because we want to build a portfolio if we sell that but back at square one okay and all we're doing is we're now that prices have gone up we're buying into a market that's higher and with it's costing us five percent to get out and five percent and get back in so it's a ten percent net cost you feel like alright and we're still with one property alright so we use the equity from this one and we roll that equity through a remortgage into this one so we've now got two properties but the important thing is we need to cash flow this property for the next two years as well as this one all right so now what we're doing is we're you know assuming we've got no other money and there's not money from the rent coming in so we can't Bonnie we wait around and then him look it may not be two years it may be eighteen months it may be whenever you can get that equity and through using a portfolio manager you're gonna find pretty quickly that actually you've got that equity you can access it let's go through okay so here you've got the two properties let's say they both go up in beta now and as your facts this one's gone up let's say this time this two year cycle this one just sat around it nothing but this one went up we take the money from that one and then we roll it into another one here okay and let's say this one did nothing again you know the area is in a bit shady or whatever I was getting regenerated you know this one goes up again this one does nothing well then we take the equity from this one and you know and we basically roll this into the next one and let's say now all these properties go up this one we buy goes down let's say roll it in that one so the whole idea behind this is quite simply that we take the equity from this fund a role in this one the equity from boffo strolling that one equity from those ones to rolling that one and and it's life I've seen what they call it a snowball rolling down the mountain alright now the interesting thing is as this goes it gets quicker so you'll find you'll get one and then it may be two years or even three years before you can get another one okay safely all right then it might be two years this time safely then it might be 18 months safely then it might be six months you know if the market takes off you're going to find it every six months you can go back to your finance company and give him a further advance and as much as some of you might be saying there but banks aren't lending and they're you know they're going to subdue them they want okay the first chance they get to came free lending again they'll do it okay I remember being in a conversation with and I was about it was in the 80s the early 80s and I was probably 14 or 15 and remember having a conversation with and I don't even know the guy I can't remember who it was but I knew it was a multi-millionaire it was sort of know looking at this guy going wow that's a multi-millionaire and back then that was a lot of money multi millionaires and I remember him saying to me you know look he remembered back the previous boom and we're right into the middle of a recession of that stage and he said you know lending and subdued and he said basically he remembers when Lenin was crap you know it come bad and then it come good again then it went bad and that's what lending does it subdues and goes out so don't worry about the lending in that side and right now okay so in principle that's all we're doing okay and working with a portfolio manager and as you build your emotional intelligence and as you get better at this and understand strategy you want to know which properties you can remortgage when you can remortgage them how much you can take out safely okay so and you're just rolling okay and eventually now that's how you build the portfolio up now let's come to the safely bit because I've sort of already alluded to a lot to it if you want to build this safely okay you've got to make sure you've got these two cash flow periods so even if you're going to buy these three properties the fact is you're going to make sure you've got enough to cash flow these okay and we use things called mortgage cost calculations for mortgage cost averaging okay it's basically it's I stole it from dollar cost averaging and turnaround you know such a term I made up and effective what that is is I assume that say in the UK every time I do a mortgage it's going to cost me six percent now if I do that across my whole portfolio then I can see and I don't need to worry about fluctuations in the market because the interest rates going to fluctuate up and down around that six percent now right now we're very low okay which is great because what I should be doing is thinking that at six percent mortgage costs averaging you know three and a half percent let's say pay rate so did this extra bit I can be putting aside so when interest rates rise and they go above that six percent I can then draw on that money and what it means is I can safely grow my portfolio and it tells me a good speed to grow at the problem with most people and look either there's five gurus that are no longer out there okay and all of them had you know 15 million eighty properties this and that and all the hype and BS and all of them had built up their portfolios you know over a very short spitters period of time and what that effectively done was they hadn't cashflow this whole thing they literally just bought and bought and bought and bought and they figured that prices will continue to our prover they don't they work in a cycle here so that's a net continues to that and that's we're going to be very careful about people saying they've got 15 million worth of property because half the time they haven't and the other half the time is that they've done it very quickly and that's a scary situation and certainly as interest rates rise you'll find that a lot of those people go very silent you know including their companies may fall over and they may disappear to Cyprus or Dubai or you know any number of countries that I've heard these guys move have to move to back to Australia in fact one of them in fact two of whom we've gone back to Australia that's quite embarrassing isn't it but it's alright this at this point I hold up my British passport but um so guys you know the whole thing with this is how to build this safely is all about cash flow yeah look a lack of capital to buy more property is just frustrating there a lack of cash flow to hold your portfolio that's just plain dangerous okay that will send you off you know into a world of you know bankruptcy repossession all these sort of things very quickly okay a lot quicker than any frustration about not having a capital to buy this deal or that so guys you know I think that's seen that's a really important lesson it it's very easy to look at this and do this and certainly right now the market is pretty flat but as the market picks up you'll see how quickly this can come about and if you understand this you can use it to your advantage because these periods here may not end up being two years at some point there may be six months three months because if you have 10 properties you know you'll be really mortgaging one this month that one next month that one these months and ten months has gone by before you get back to that one go well it's gone up again so you know it's team roles and it happens very quickly when it does happen so that's why you know all of my investors right now I'm saying get in get prepared get ready for you know even if you're just starting out if you've got no properties right now get the first property you know because what that's going to do is deal with a lot of the emotions so when the market does take off you're you know sitting in the driver's seat so guys I'm sure you found that information really valuable the first step really now is that you need to get a plan you need to actually you know work out exactly how you're going to put this in place so what I encourage you to do is come in and sit down with us talk to us you know grab a coffee with us and what we can do is we can actually start mapping out what your plan is guys I'm looking forward to meeting you real soon at either one of our webinars or perhaps a seminar or if you come to one of our offices around the world have a great day and remember live with passion

Investment Fundamentals #1 – Take personal responsibility



well it is my pleasure to welcome you along to a new themed week here on property tribes it's called investment fundamentals week and who better to join me than Graham Rowan investment consultant and Graham so great to have your input for this week you're going to be here the whole week and actually I have to thank you for coming up with our topics and I think you know a good place to start is to say that to build a solid investment portfolio whichever entity you're building that in whether it be property or shares and you've got to get the fundamentals in place and that's really what this week is all about isn't it yeah so I'm delighted to be here Vanessa and yeah I think it's it's one of the reasons I run you know the investor code myself is to try and help people to put some kind of plan and structure together for how they're gonna build that wealth and how they're gonna protect their wealth because let's be honest you don't learn this stuff in school or university they don't teach it in the workplace and despite loads and loads of new regulations all the time you never hear anyone from government or the FCA saying hey let's do something about financial education so yeah you've got to do it yourself absolutely now the starting point for this week is actually your story because that's really going to guide the week of how you became I guess financially aware and you know worked yourself towards your own financial freedom so perhaps if we could start off by saying you know give us your backstory and how it triggered that desire to start taking responsibility for your financial future yes certainly I guess you know people just need to get a box of Kleenex ready so that when I get to the appropriate point you know that they're prepared but for me I had a great job in the corporate sector I I was a director of a big American company called Texas Instruments and we were selling multimillion-dollar billing systems to telecoms companies all around the world so I'd be jetting off all over the place and you know the good news is I was making a lot of money but I really didn't have that at the time or frankly the inclination to manage it from a sort of investment viewpoint so one of my colleagues said why don't you get yourself a professional wealth manager like I have southern seems like good idea so when met them they came up with this fancy plan that said my freedom figure was 2.4 million pounds and this is how they were gonna get me there and they put my life savings into something called a Nasdaq which I have to say at the time seemed like a great idea because every morning I would wake up two or three thousand dollars richer than when I went to bed the night before and every June I'd go along for my annual valuation with these guys and the figures just went up and up and up then we got to June 2004 at the sky and computer systems didn't crash but you know the Nasdaq had gone down about 10 percent so I said hey guys you know should we take some money off the table and do something else and they said don't be such a wimp can't you recognize a minor correction in a raging bull market when you see one we're staying in ok you know best I went away to my busy lifestyle again came back in June of 2001 and it had crashed and burned and they'd lost me a hundred and fifty one thousand six hundred pounds in 18 months ouch and then they take me into a little side room and say unfortunately mr. Rowan these losses take your net worth below the level at which we look after clients so I'm afraid we're gonna have to let you go so I was fired by my own wealth manager because of the losses they had made on my portfolio so you know I was angry I was confused I was embarrassed had to go and tell my wife Daphne that we'd lost a huge chunk of our life savings and when I kind of reflected and processed a bit I thought you know it's easy to be angry with those guys but in truth it was my fault because I haven't just delegated my wealth management to these guys had abdicated it and just gone off on my merry way and at the lesson I learned expensively and painfully was that nobody else cares about your financial future you are not top of their agenda I don't care smart they are how many advisers you've got accountants IFAs none of them have got you at the top of their agenda the only person that has you at the top of their agenda is staring back at you in the bathroom mirror each day the biggest message I need to get across to people is that no one else cares you've got to take ownership even if you have a team around you you've got to be the orchestra leader absolutely as we always say on property tribes similar to yourself the best person to look after your money is the person that you see in the mirror every morning as you said and I guess what this week you're all about then miss cryptogram is that you had to go through that horrendous financial pain to have this wake-up call and really we're now giving the wake-up call using I guess your hindsight for other people's foresight well I hope so I think the hard part is that you know for me I'd gone through the pain then it became an emotional decision not just a logical when I was angry with myself and I think what I want to try and convey to people is that you know if you're not where you want to be at this stage in your life don't look for other scapegoats don't look don't blame the government don't blame the weather or the economy you know it's down to you you've got to take ownership and if you can do that without incurring that sort of losses and the pain I had to because you're watching this on properly tribe that's great you know you're so far ahead of where I was and you can avoid the pain and the grief and the cost that I had to go through absolutely and the sooner that people start to take responsibility for their own financial situation than this you know they've got a longer time to actually enjoy the benefits well that's right I mean what we're going to go through and the rest of this week is the specifics of how you go about this but I think it's important to just emphasize that there has to be this decision you know it's a little bit like you hear people saying about wanting to lose weight or something that's all well there are also full of good intentions but unless you really really really feel it and you're one that and you've got a strong reason why you want to make this happen you're gonna just let it all slide and life gets in the way you'll be too busy doing a B and C so my plea to people watching us is is to really sort of look in the mirror make an emotional decision that you're gonna take ownership and then you will take action on the stuff we'll cover in the rest of the week I think it's really about making a commitment to yourself and to becoming educated which indeed is the topic of our next video and then you know just taking sustained and intelligent action on a regular basis and that's really how people are going to build a kind of solid foundation for their future wealth no absolutely it puts me in mind of in one of my favourites of mentors was the the late Jim Rohn and yeah one of the things he used to say was that you know the difference between success and failure is small decisions you know repeated each day and if you make the right decisions over a period of time you'll see a phenomenal result if you make the wrong decisions over a period of time you get a very different outcome so it's really all about just those little things you do every day that are furthering your your whole process towards financial independence and once you take that decision and you start doing these little steps day-in day-out for weeks months and years you'll be amazed at how you can transform your financial circumstances and indeed people do have to take a long-term view and there's not really any get-rich-quick unless you win the lottery or something of that nature so people have to have a very long event horizon yeah I think unless you're gonna marry it divorce it or inherit it then you've got to go about creating and it's gonna take a long time but I tell you what you know what once you start the process you know you'll see some results quite quickly and I always tell people to celebrate those little results you it might it might be the first thousand pounds that you save or something but just you know celebrate those baby steps along the way and it they become habits and once they become habits you know then you're on the road you're on the journey and the rest will start to happen and even if you make the occasional mistake within that context of owning your financial future and taking steps every day it doesn't matter you know you will get there it really is a case of kind of like almost like a switch being flicked where somebody just has to have that realization that they now to take responsibility and just you know start moving forward and almost that kind of switch flicking on is the most important part and then you're away that's right and then that just gets reinforced with all the other actions and all the other topics we're going to cover for the rest of the week well I hope that has whet your appetite for the upcoming week of content that we are hosting in association with Graham Rowan of elite investor club I've got lots more really great stuff to come it's going to delve deeper and deeper into this topic of investment fundamentals and I guess Graham it doesn't matter what level of knowledge people have already there's good whether they're an absolute beginner or somebody very experienced we hope there's going to be something for them within the week no absolutely and I think you know that the fundamentals as the name implies are always true and so it doesn't matter where you are on the journey it really helps and it really pays to take a fresh look and yeah we all have our biases that some people are only in the property some are only into the stock market I want to try and broaden people's thinking a bit because if you want real firm foundations for your wealth you've got to understand the whole marketplace all the opportunities are open to you and you've got to understand you know how you're going to build wealth across a whole range of different assets absolutely so that's what we're going to be looking at for the rest of the week if you're watching this video on YouTube I invite you to hit the subscribe button and if you want to join our conversation and also where Graham will be interacting please click across to property tribes comm but stay tuned as investment fundamental week continues

Investment Fundamentals #2 – Get educated!



but welcome along to day two of investment fundamentals week here on property tribes where my guests for the entire week is elite investor chairman Graham Rowan and Graham and we're moving on to day two of our content and today we're going to talk about the importance of education and of course this is a topic very close to our heart here at property tribes because we believe that you can never learn less and actually the way to success is to actually make a lifelong commitment to get educated and that's something you subscribe to isn't it oh totally I mean my whole sort of mission has become to try and end financial illiteracy you know this is something that I I see everywhere and it's it's a mission that's taken me to the UN in New York to Harvard Business School in Boston houses of parliament you know Singapore yeah I just really want to get on my on my soapbox and talk about this because yeah we briefly touched on this in the first day's episode but you know you you you just don't learn this stuff in school or university or the workplace so you know once you've made that fundamental decision that you're in charge of your financial future you've got to start looking for where you can learn a bit more and it's it's a double-edged sword because there's so much out there now with the internet you know I mean when I was growing up you know you just had books in the library and whatever you know these days you've got you're bombarded with it so as much as anything it becomes a process of narrowing down and selecting what you're going to look at but really you've got to start with a fairly broad view of what's going on in the financial market so I I subscribe to a magazine like money week which is a nice succinct way of seeing what's going on the financial times especially the weekend edition I think is particularly helpful so just just starting to read those will put you ahead of ninety percent of the population in terms of having an awareness of the economy of stocks and shares of property of bonds what's going on in the marketplace then you can start selectively reading some books by people who are obviously in those fields and then you can start looking at content obviously you know property tribes is one platform where you can learn a lot there are similar platforms from stock market type investments you know for us we have specialized more an alternative investment so you start to learn about those through through elite but the idea is that you can go to some seminars read some books regularly read magazines the sort of thing I would avoid frankly is the kind of 24/7 CNBC kind of TV stuff where the stickers going across the screen and it's real time yeah nanosecond you know none of that matters that's just noise and distraction but if you can just have a perhaps a couple of hours a week of just dedicate that time plus occasional seminars that you go to I mean I I mean obviously been around this world for quite a while now but I I still probably spend ten thousand pounds a year going to seminars in in Britain and America to keep myself sharp you know and to see what the latest thinking is now I'm not saying everyone has to start at that sort of level you think a lot of these events are much much cheaper than that but you know go along to a few see what you learn see who you meet because another benefit of this and you know because those of us who are real into staff and onto a future we are weird you know I mean our friends and our family don't understand us sometimes your spouse doesn't understand you know so it's really nice to go somewhere where you've got like-minded people one of the best bits of feedback we get is the events we run I love to meet other investors who think like me because you know no one else in my circle does so so you'll find that it all becomes kind of reinforcing because you're starting to learn a bit more you're meeting other people who want to learn a bit more and you kind of help each other along that process and you know the main thing I would say is to start but don't get too many sources of knowledge or else you'll just feel overloaded and pressured by it so you only need a handful of things you know two or three books and magazines couple of seminars and a platform like like the property tribes that's enough you know but just regularly consume it and start growing your knowledge week by week indeed and I think you know when you're choosing a source of advice I think it's important to understand if there's any kind of agenda behind it and one of the great things about property tribes it's a hive mind of knowledge it's not a singular opinion it is a mass of opinions that people reading can take in and take away from it what they like Mull it over form their own opinion and that's a very very healthy way to learn but unfortunately a lot of people tend to get sucked into what I call the wealth creation industry which is where they're told they can be a millionaire in a year I can see the look on your face already and they don't need any money and you know once they get into those kind of marketing funnels they can actually end up paying thousands and thousands on education and maybe even end up with nothing to show for it and what what's your view on on those kind of property gurus that say you can be a millionaire in a year oh it really it really pains me to be honest I mean you know one of the places I at a couple of times a year is the property investor show I think it's where we met actually and it does pain me there I see gurus there peddling the same strategies that may have worked ten years ago and we know today from all the recent changes that they're not going to work and there's an awful lot of gullible people go to those events thinking they can get rich quick in real estate and they sign up for these programs and some of them are thousands and thousands of pounds deposit on a house actually indeed you know so so you know please so yeah be very very careful you have to have a bit of discipline about what you're doing you have to you know just by all means gather information but but don't be too quick with your credit card or your checkbook I mean I had a member in here the other day who's in this kind of education phase he went along to his first property auction the other day as part of that and he bought the property and I said really wouldn't have done that you know you were there to learn and you couldn't resist you got emotional and you bid on something and now you own this property that's 300 miles from where you live what exactly you're gonna do with that you know so you've got to be careful not to get then but the the idea that you can get rich in real estate or anything else I see the same in kryptos I see the same with financial trading of the stock markets oh yeah I'll remind people of the the nineteen ninety ninety rule on financial trading which is at ninety percent of people lose ninety percent of their money in the first 90 days when they get involved in this sort of day trading and so on so be careful this is the education of phase yes shouldn't be spending too much money at this point maybe a you're buying some boots you're subscribing to some papers or magazines and you're going to the odd seminar that doesn't mean you're signing up for the top-end mastermind program here whiz-bang whatever and and remember that you know a lot of people go for the things where they think they'll get rich quick back where I come from in Georgie land we have an expression which is fur coat and no knickers you know which really means you're going for that sort of top-end yeah Shoei high risky stuff but you haven't got any other fundamentals underneath you haven't laid the foundations this week's all about foundations and that stuff ain't foundation laying so don't come at this with a get-rich-quick attitude in fact I often say I reverse it and say look get rich slow that's the way that will last no I agree 100% and I do get very concerned when I hear these property gurus recommending that people go straight into HMOs for instance and I've been to those kind of seminars and was very concerned that they never once mentioned the word tenant and that's the person that's going to be paying your rent and servicing your mortgage and they they don't even mention them so you know I totally subscribe to what you say and you've mentioned quite a few sources that are free like property tribes or you know a few few pounds a week for a magazine or a subscription and maybe a couple of hundred pounds for a good day out at a seminar or indeed the landlord investment shows are free to attend as is the property investor show so there's lots of good sources of information out there but then do you also you know we need to talk about paid advice as well because paid advice is insured advice is this at the stage that you start thinking about working with a broker finding your tax advisor and starting to build those relationships well the thing I think that really should start you off depending where you are in the journey I appreciate we've got people at every different level that will be watching us but in the very earliest stages I always encourage people to open a bank account that's separate to their main bank account often with a different bank and call it your name wealth account so the John Smith wealth account and then get into the habit every time you get paid whether that's a salary or dividends from your company or whatever go and put a percentage of that money into your wealth account once you get into that and I say don't do this online do it have it as a physical branch in the high street so you've got to walk there and the only reason you're going there is to make a deposit in your wealth account you're not doing this for convenience you're doing this with a psychology of it the habit-forming side of it so then you've got money that's accumulating first that gets you into the habit of saving and frankly I don't care what you earn if you can't save on 20,000 a year you won't save on 200,000 a year it's a mental discipline and all the wealthy people I know we're saving money when they're on 20,000 a year so so you've got to get into that discipline first so once you start accumulating the wealth that sort of takes the pressure off your urge to sort do something quickly because that you know that's going on in the background so that just keep the saving going whilst you're educating yourself when you come into the point where you know I'm gonna pay that veiss I think certainly it's worth looking at perhaps getting referrals or recommendations to people from people that you know have been successful with them and you know obviously there are good and bad mortgage brokers good and bad tax advisers so the more you can find the right people who have already achieved success and see who their advisors are that's a great way into that and also you need to really get start to get some clarity on your strategy you know I mean this may be be heresy on on a property platform but you know that there are other investments out there apart from property that people should educate themselves on as well and the whole point about this it's a bit like you know whenever I meet somebody who's got all their money and buy to let or all their money in the stock market I I say well you know basically you're riding a unicycle you know you are kind of wobbling around on a single whee here and all your wealth depends on that one asset class if you start investing across multiple asset classes you've got a bike quality a trike quad bike or multiple legs on your table you know so so you need to learn about the whole market and real good long-term investment strategies are well diversified so there'll be property in there but the loss would be stocks and shares there'll be precious metals that commodities you know there'll be currencies and all the rest of it so we'll go through this later but you know you've gotta have a breadth of investments and then start looking at where you might source them from including advisors including sourcing deals and all the rest of it so you're building your network at the same time as you're building your knowledge and your education well fantastic so that is part 2 of our investment fundamentals week and we've been talking about the importance of education and Graham I think this week's just going to get better and better as we go on I'm so really just find the way you explain everything it makes it really really easy to understand and it's very engaging so thank you very much for that tomorrow we're going to be looking at your income engine and why you need to turbocharge it so we've got another exciting day tomorrow haven't we go to it so if you're watching this on a youtube I invite you to click the subscribe button and if you want to join our conversation we're gray and will also be interacting with property tribes members please do click across to property tribes comm that is where the conversation is hosted and if you pop over there you'll see that we've got over 45,000 members who contribute to our discussions and you can tap in to all their knowledge experience contacts and as we like set prosti tribes none of us is as smart as all of us so stay tuned and we'll be back tomorrow you