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

What does $500,000 buy in Washington D.C.? | DC real estate VS Seattle real estate



welcome to Adams Morgan we're here in Northwest DC just a few blocks away from grocery stores restaurants and bars and we're here checking out a two-bedroom condo for sale this video is in collaboration with Austin Schneider out in the Seattle market so if you're interested in what five hundred thousand dollars gets in Seattle I'll list and link his video below this is what five hundred thousand dollars gets you in Washington DC let's go take a look we're here on the top floor and this is efficient city living we've stated the art Italian appliances vaulted ceilings and excellent natural light [Applause] oh hey I didn't see you there I'm just hanging out in my private rooftop terrace which of course comes with the unit along with off street parking Wow is off street parking extra nope it's included two beds two baths off street parking and a rooftop 535 that's what five hundred thousand dollars gets you in DC be sure to hit Austin's video to see what five hundred thousand dollars gets you in Seattle until next time create a productive day take care

Kevin O'Loughlin, the successful businessman who doesn't believe in working late



when you've got a strong pedigree of business in your family setting up your own is often the only way the question is what to do this is the architects of business Joe's weekly series of interviews with leading entrepreneurs in partnership with E Y entrepreneur of the year I'm Tigan rice and today we'll be hearing from Kevin o Lachlan for whom early access to a computer setup on the path to success devices you could come and talk to us today thank you for joining us at Joe and I guess some people might think of your field IT outsourcing IT as a kind of a commodity that anyone can can do it and it's the same no matter who you get it from how do you go about making sure that no sir actually is seen as different to that so that's an interesting question I have to say so yeah and and as well there are a lot of people in the field that we're doing both in Ireland and globally and it said it's a ballooning industry and and I suppose when we when we started out we didn't necessarily start out as an outsourced to IT provider original plan was around consolidation and making IT footprint smaller in companies and that kind of evolved over the years where we effectively found a demand and I suppose one of the key things that nasara is quite unique in is is we hire very specifically hire the right people so not necessarily technical experts but people who have a who have a really good personality really good at managing a customer expectations really you know kind of the bedside manner type type person and then we make sure we train them on whatever skills they need and in the role so you saying you hire relationship people rather than technical people pretty much yeah no that's that's probably an extreme example but my dad had philosophy which was you know you can you you can't her a good person and trained or he can't her a good person and trying to be a bartender but you can't her a bartender and trained it to be a nice person and so that was his example in simple terms and do you go straight on in there with that as your pitch to new clients so actually we hire people that you can get along with and will get inside your head and will get the job done not necessarily because I don't think it's a you know people necessarily understand the value of that and but what we do get is we get a huge amount of new business and referrals from existing customers and what they always say about it is our team our top class isn't is it a challenge to kind of live up to that promise at all times when you know you kinda like an emergency service and some degrees for companies that rely on their IT working well something goes wrong they call you up I mean is it a challenge to live up to that all the time nine years I mean and again like an emergency sir you know the managing pressure and being good under pressure is a key part of us um but yet like we would manage probably in excess of 3,000 servers and 25,000 s tops all across the world at the moment and and sometimes any one of those going down even a mouse failing in a boardroom ten minutes between a major board meeting or a server fall in over twenty minutes before a new site goes live you know they're all mission-critical urgent and can be stressful what are you sleepin I think I have a great team around me so yeah look you know again in all these scenarios it's about building the right infrastructure that's going to work and an understanding that when it goes down it's our job to respond you know it's not possible for anyone to build an infrastructure that will never fail and you know when you have a good relationship with a customer when there is a problem you respond you deal with it and and you have the right people that have the skills to do it take me back to the to the beginning – it's a little Kevin when you realized actually IT was was your thing yeah I suppose I'd I'd probably go all the way back I think to 1989 or 1990 know one of my brother's would probably correct me in the year but my dad bought an Amstrad 30 at the time so again in the for the Generation Y people listening I think if anyone sat down and looked at it today they probably wouldn't describe it as a computer would be more useful as a bookend or something but you know it was just a fascinating piece of technology and my eldest brother became you know quite good on it quite quickly and I was looking from a distance and then Tesco or Quinn's world at the time had a thing where you you know you go in your pack bags and you pick up the vouchers and you got the school's collected them I remember that and then yeah and then you got a computer for the school it was just an IBM PC at the time and and one came in and and we were – I was the only kid in the class who had one at home the teachers had never used one so I became the expert even though I knew who to do nothing else nothing but I was the expert because I seen one before effectively so this is at the age of five only ten nine or ten yeah that kind of age and alert the training you heard of the Amstrad at home so you're saying they didn't quite prepare you for the the my were well I hadn't done what I didn't do much in the Amstrad to be fair I looked at my brother doing things but I really didn't have to not anywhere to turn it on I knew what a disk in what that was about it and he's saying he obliged your expertise at school pretty much yeah badly in fact I think the first function I did was the format a disc which I thought was the Lord a disc and an end of wiping math problem that we got but then obviously you you were picking up skills as you went along just by just by trying it out yet so again you know I had that very small step ahead and and I became the person who probably will have to learn it quickly in my view so as I could actually appear to continue to be the ask expert I was going home getting advice off my brother what to do gone back into school and applying it and then I kind of followed all the way true in secondary school and you know I the school that no computer I joined and they were looking for advice as to what the guess so again you know IT consultant Kevin came in yeah exactly even did the business cards Kol solution he's serious and it's that type of ambition I suppose I put you onto the the track you well you got on what was it just take me back a little bit though and remind or tell me when you kind of realized that you really like this I mean there's one thing kind of been having the responsibility for you said upon you but another thing kind of actually saying actually I like this doesn't really interesting one actually and I would take it to my leaving search here so I had done loads of again loads of computer work all the way through secondary school and again in United my leaving in 97 and at that point there was still very little knowledge in computer like computers most companies wouldn't even had corporate email addresses at that point and and I didn't know I was living at my career path and and you know I knew and everyone associated me as the computer guy so I went in there to give you our applications course and it just wasn't for me like software development Boston for me and and I didn't establish for a number of years after that that actually I love computers and I had a huge interest in them but I probably had more of an interest in building them and selling them and the business side of it as a host at a technical side and that I was long time learn and that the difference between the two and and and I suppose even from my technical point of view I would have stopped being an engineer in 2000 when I was 20 only three years and at that point I moved into the sales side and what I loved doing was solving a problem somebody telling me I want to do this and I'd say oh you can do it on the computer or you know here's how you do it on the computer and actually the the solving solving a problem and selling a solution became became my thing and what point did you realize that you know people always told look at the technology of the future and say this is gonna change everything and most people in that moment in time don't quite understand it who don't quite comprehend just how much is gonna change things and what would your evangelical moments where you're kind of telling people about how much computers and Technology were gonna change the world change their lives yeah well I probably again all the way through my teens you know it was it was an exciting thing to look computers but I was necessarily thinking about how much of an impact they were gonna have and I would say you know I got my first job in technology and I worked for a couple years as an engineer and and I started seeing at that point technology advancements which I thought were really really impressive and really clever and and it's probably the second drawn to change in IT you know so you had the initial where everyone got a computer and then I saw like him in at that point where then you're moving to the next stage of how can we get more out of them so the first major thing for me would have been cloud computing and so in 2007 when we started our business I just saw it as absolute sense you know and at that time at companies like Microsoft were encouraging businesses like ours to build our own infrastructure and share it between our customers rather than selling every customer and infrastructure so you know in simple terms Roger never even spent a 10 grand on the solution I spent 40 and sell it to each customer at 6 grand each and in fact at 60 grand rather than 40 grand for an infrastructure and everyone say is money and it made a lot of sense in every respect because what a customer could catch and be part of was much larger than they would be able to afford by in their own so while they're on a shared infrastructure it's better than not what they would ordinarily get and and I said as a huge sea change so we were you know the first company in 2007 we signed up with Microsoft to build our own what you know what was at that time called HMC 4.5 which commonly known today as office 365 so Doster built our own version of that with Microsoft in 2007 launched in an earlier age and then Microsoft announced in mid oh eight they were doing it themselves and we had invested a quarter of a million in our solution they were investing I think five billion in theirs and and they were cheaper so we made a very hard decision of shutting down our infrastructure and moving everyone to Microsoft's platform when I came out and which is a financially painful decision but it was the right thing from a customer point of view do you feel kind of hard done by by you know that you know the advice that you got from Microsoft at the time only to be kind of have that market snatched away from you by the big boys later so at the time I did but to be fair you know if I look at Microsoft gave advice to everybody and very few companies took them up on that advice and ultimately Microsoft knew where the market was going they had to compete with Google and everyone else who was in that space so you know they didn't get the traction that they needed if they had to make a different play and you know I don't think I mean if that had to be successful for us we'd be a much different company today and I'd prefer to be a service provider and an outsourcing company rather than a hosting provider if that makes sense I guess so and when you look back on getting into this field was it apparent to you that there would be so much money to be made out of it at the time and was that part of what drew you to it so no I would say money wasn't wasn't the key motivator for me and so I and I would still say you know again to build a business and you know we've you know we haven't made an enormous amount of money today and you know I think in the future we will do extremely well but the cost of building the type of business we have is not inexpensive you know and it's it's a very people intensive industry and business and to get the right people cost money and you know I'm there for you can put your margin under pressure you need significant scale for it to work and we're only really getting to that point now so we'll do but you know a little over 10 million euros this year and we're seeing that growing kind of 25 30 percent year-on-year and we just on an acquisition company called image which will add about two million to our revenue for the next 12 months and and you know it requires scale to make money so so what copy in was you know solving a problem I probably had the knowledge from a very young age and because I have a historical understanding of IT for me the problem to solve was quite easy people might when they look at the the the big corporate heavyweights of this age the Google's the Facebook's even like the Oracles the Cisco Systems they might be surprised to hear you say that there's not much money to be made in this game yeah well I think I think from their perspective they are tick very well and I know and don't get me wrong you know what I'm talking about I suppose our specific industry and our industry is he's outsourcing so we're a managed service provider we go to companies you know and typically work with CEOs and seals in organizations so non-technical people they want they want the righty to work and they want it not to be a hassle for the business they don't really want to get into the detail and they could have anything from 50 to 500 computers that they need managed and will you know take all the calls from the end users and manage all that piece and that type of business requires scale so if you consider if I take out one customer and they have one PC and they work ten hours a day seven days a week you know their own business or whatever I still require multiple people to actually deliver that service and so you're you need scale to make it work I'm interested as well in in in how you the businessman evolved you know from having this almost forced upon you persona of the IT guy at school you kind of came to realize that actually you were more into the business end of things and the sales and and the relationships that you say nostra kind of prides it's it's it's or bases its business model on and did you ever look at other businesses other ways of of making a living and making your money work for you yes or unfortunately unfortunately unfortunately so so yeah I probably like lots of people in 2001 to saw the property mark don't worry Renton and I I actually invested all of my earnings into property and bought bought a number of places and and I sold some of them to start an Astra which was a great positive in 2006 good time to get out but I kept someone which was a good idea and you know and that was certainly a painful experience to carry those over the last seven or eight years and thankfully Rebeck functioning now and I also diversified and and I suppose as I said a personal objective a number of years ago where I made a decision you know the type of person I am I I just enjoy helping people and that and that's just something that I like to do and I said a lifetime tires and to help a million people in my lifetime right so what that manifested itself was at the time I wasn't sure but I said that something I wanted to do so I ended up going into all sorts of different businesses at the at the bottom of the market I suppose in 2010 I got involved in some gems chiropractic clinic you know some some random things which ultimately are super businesses and and and I understood them and I was I was a user of that type of service and but you know you have to you have to know one thing really well in my opinion and IT was what I knew well so in me diversifying into those areas I just took my eye off the ball of my own business which had an impact on that and once I learned that lesson I got back and I was like well how can i how can I use my business to help people and I do that primarily by making sure that our team are extremely well looked after of people have challenges we help them true and we have a very staff centric organization and I suppose we want to build on national and agro action same with customers and other people talk to me a bit more though about that foray into into the property market because there's something that lots of people will will identify with us was anybody does that that did by around that time and of course the crash that that followed and not many people had the the spare cash to buy how many properties was it that you know how many could have put that much money – into property um did you make any mistakes or was it just you know we dragged down with that you know with with everybody else yeah I mean I suppose my view and one less than I have is I mean why was I doing you know in property I was in property to make money and and I didn't understand property I'm you know I think I think a lesson that I certainly learned is if I'm getting involved in a business I have to know an awful lot about us and you have to be passionate about the industry if you go into something to make money I my view is you'll never win over the people who already know everything about it so you know I made a decision number of years ago technology and cars two things I'm passionate about I'll invest in in those types of industries but outside of that absolutely not so in property look you know I bought some some places and the way it worked back then you know you buy you buy a house in you know off the plans a year before it's built by the time it's built it's worth 100 grand more your finance and 90% so yeah 60 grand check today you buy it and anybody not property over that check so I you know it was it was a silly time and it was very easy you know just I would you know I remember even put a deposit on a property and two weeks later it is it for me to live in two weeks later I'm back and said no I want to live here and the price had gone up by fifty thousand and my deposit was four K and I'm like okay well I need to buy that now because there's no point walking away from a 50 grand upside and that was just a madness of the times you know I was 2003 and literally week to week if you went to a new development on a Monday and a week later you went back he was up by five grand or 10 grand per house and that was every week so you know it was it was just easy crazy times gosh it's interesting to hear them brought up again um but then you decided to pack that in as it were yeah and and take whatever some of the money before the crash and put it into nostra yeah and what was it that you you wanted to achieve with not sure that you weren't achieving with the job that you had at the time so I think from a from a pretty very young age so I grew up in a pub in County leash and my dad was an entrepreneur he had several businesses but you know one point he would have run a pretty large farm we pulled in a shop which ma'am in fairness would probably earn more than him although he wouldn't admit that and and and he also had a quite large pork business called Greenville in Carlisle and so he was extremely entrepreneur quite a serial entrepreneur yeah yeah and and he was always on the phone in the car and you know he was just the definition in my view as as a kid as the entrepreneur you know that guy drive in America you know all of those things I suppose and I just admired him and I made the decision probably very early on I mean it wasn't even decision I just assumed that that's you know that that's what everyone did you weren't open you set up your own business so you know even when I when I had a job you know back in the early 2000s you know I would have been very open to say at some point I'm gonna I'm gonna start my own business and you know and I considered reasonably considered an MBO at one point in the business I was in as a management buyout management by a chair and you know it didn't happen and it was only talking significant conversation but you know when I knew that wasn't there wasn't going to happen for me I needed to go and do my own thing but you were in a high paying job you know you'd enough money to splash out in a few houses did any part of you or any person kind of say to you hang on you're you're writing quite a wave here don't take any stupid risks yeah so probably if I had a told people that I was thinking leaving they might have said that but you know I I'm somebody who took a team when I make a decision I make a decision and I you know I'd probably make a lot of decisions on my own which is something that as we scale as the business I'm trying to pull back from and take more of a groupthink but at that particular time I don't think I told a single person before I decided to leave I just you know made a decision it was a Sunday morning and I ran by Sunday afternoon and I was I was I had my notice in you must have had the confidence though that you know you're in at that stage was still kind of an emerging sector um looking the wind behind you did it feel like it was going to be a sure thing when you you decided to branch out by ourselves no I you know I was a Joe it and and also I would say you know I left without a plan right I didn't you know I decided was not travel for a while try and figure out what it is I wanted to do specifically again at that point I had a decision you know do I got a property roof and or do I go that the technology roof and I and I genuinely hadn't done hadn't see well committed to IT when he decided to leave no and in fact I did the property thing for a period of time for probably three or four months and realized that it definitely wasn't for me and when I say property I was I was you know looking at potentially joining my Brotherhood in a state agency in Portage and actually selling and potentially building and developing properties but it just again once you get in I'm still picking up the computer magazines I'm still you know reading about all the elements the technology which interests me I'm flipping right over the property pages in the paper you know so yeah you followed your heart followed my heart yeah and what did your heart tell you about what you wanted your company to be and how it was going to be different was it that relationship aspect or was there something else at that stage you know I think it was a big part of it you know I had worked in an office at probably 40 or 50 order people and you know like anything when you're working in a business they all become your friends so one thing that I wanted was to build a reasonable-sized organization where you know there were certainly lots of other people in the business and and I wanted to develop myself as a as an entrepreneur and I didn't fully understand I was at that point you know and I think one of the biggest challenges that I had is my assumption haven't been a sales manager and a service manager in an IT business that I knew it all and reality is it only kicks in very shortly after you start your business how little you know and unfortunately I had a seven or eight year learning journey and which I'm still on but you know the first seven or eight years it was just mistake after mistake so I suppose for me I when I started and when I got into the business I really didn't have a clue where it was gonna go it was I need to over the business I want to have people working with me get the right people will find a vision and a journey home oh gosh Kevin it was it was 2006 when when he started um just a few years later obviously history was be recorded with the worst financial crisis since the Great Depression um what were those early years like I was up getting it off the ground before yeah so so we started December 2006 when I say we started in December we signed a lease on a building and painted it in December and that was about the height and wrote our business plan so we officially open for business second in January 2007 and so the first year was a whirlwind you know we had two months of you know going out trying to knock on doors meet people you know convince people to have a conversation which um and and the challenge of that time actually was people were so busy making money that they didn't necessarily want to save money you know if you're if you're talking so you would save and 500 euros a month it wasn't a number that excited anybody in terms of the saving a move into a new provider or move into child technology or whatever and so it was difficult actually to get in the door and win some early deals so probably about March or April we got our messaging right and we started winning business so like we did a million-year-old between March and December and which was ahead of our first year objective and and that really came from you know selling quite large solutions to some big Irish companies and we did we were in a space of virtualization which is having less servers and more in simple terms but ultimately we were we were saving companies money and sometimes you know six-figure sums made quite substantial amounts so and we went all the way through the year we were very happy where we were can you Furby March of 2008 were phenomenal I think we did 900 grand in the first three months of the year and then ultimately the world and ended for us and so the big thing was technology leasing was a huge piece so we would sell a solution the banks would provide a technology lease first and at least would would ultimately mean a customer rod and spend a hundred grand on the solution it's been too right so it became an easy enough again in those times it was easy to sell so all the major banks stopped doing technology leases in April and May of 2008 and then we were gone into places and saying we need a check for 100 grand and they were going to look we will put the decision on hold then you had Northern Rock he had Lehman Brothers yet all those different things that happen around that time and in fact we are prospectus built but nobody bought so like we did 900 ran the first three months four hundred and fifty thousand in the last nine months of the year so we effectively fell off cliff and it was an extremely difficult time I mean you know we were we gone from 300 grand a month in in revenue to about 25 30 thousand a month and someone so we get you know five grand in revenue you know we built our team up to ten eleven people and so like in the first two years we lost nearly 500,000 euros and we were profitable by the end of the first year and a monthly basis so the majority of that last came from April to the summer of the second year and again you know each month your prospect list is building the customers want to buy everything was all positive we are losing business to our competitors but ultimately it was a nine-month point until we said right you know they're not gonna buy or they're not gonna buy for another couple of months so we now have to make some changes so we to make some redundancies and called salaries and do all those things in December of Ovation December oh wait so that being somewhere in the region are nine months after you first started seeing something was going wrong and those redundancies the salary cuts what was it like when you actually had to deliver that news to the people that affected so um so it was an interesting one you know we I fully expected I'd have to told the business and I rang two or three customers small customers and asked them could they meet me for a coffee and brought them in and said look here's my problem right I've got several issues in the business and and what do you think we should do and I think I need to close and they said well you know why don't you go on and you know do you need every one way to make two people redundant why don't you ask the staff will they take it 20 percent pay cause if they do then you can continue to trade and you get back close to a break-even scenario and then go to all your suppliers and ask them will they will they give you longer terms to pay the debts that are outstanding and I suppose it was an ambitious plan but when we went and met suppliers they were in the same boat with lots of people and those companies were closing and the money was being written off so at least we were offering them a scenario where they might get it back so they all accepted to my surprise all the staff practice you know they they really jumped in behind us and said look you know we understand we see this you know my friend has been let go my brothers after losing his job you know and they could see all the news so they were aware and they all practice and midnight some people say oh gosh I don't even need to be paid for December you know just you know we'd we'd incredible support from the from the team and really from that point on then we we spent all of online just just treading water we took investment at the end of all nine which really cleared our legacy and paid off everybody needed to get paid off and and then we we kind of had a couple years of just again struggling to get by and in 13 we kind of cleared the last of our legacy – we cleared all of the you know the history that we've been through financially and we had breathing room to grow and it was just in time I suppose for for the economy coming back and and we've done really well since then so like we've gone from since 13 we probably did 1.1 million in 13 and you know to do 10 million today so in that period we've multiplied by 10 it was really a case of battening down the hatches and I mean it's a case literally it sounds like you weathered the storm um when you look back was there ever any point where you thought you know we can't get through this and actually closure is inevitable because it says that you can hatch the plan and it actually went relatively smoothly yeah well I wouldn't call it smoothly if you lived you know it was it was just incredibly tough for me and it was it was day-to-day week-to-week him into his long periods when I didn't take any money out of the business so you're literally just taking a money for petrol and you know I had bought a car which was expensive about a Porsche in 2008 and I had more finance on it than it was worth quite considerably more than is worthy now you know all those cars were worth nothing so I couldn't sell it because I couldn't afford to write it write down the amount of it and yet it was unbelievably on economical so I could hardly afford the drivers you know and I remember occasions when literally I would have to stay at home for a couple days because it's never enough money for fuel to crash you know so it was it was a very very difficult time and I think without the support of the team that I had both financially and everything else I mean they were all they all believed in what we were trying to do and really I in 2009 I said right you know I need to get my health right I need to get fish which I never really been in my life um so I got fit and healthy decided you know face it all had on more energy and really focused on my own health and my own well-being and I think that then operated right throughout the company it's an interesting point in history which to have had that kind of health epiphany that when you know the proverbial has really hit the fan in terms of how the company's performing suddenly you discover exercise yeah well you know and probably the person who got me there was John Boyle of Boyle sports so you know I don't know if people would know his story I know he was she one entrepreneur a year at one point and but you know John he was probably 52 or 53 years of age when I first met him and John used to train every morning and and he would talk about you know the importance of eating right and you know he'd be he'd be at his age drive up and down the country and you know have this packed lunch and making sure it's all good and healthy and he'd go to the gym four times a week or five times a week and he'd be you know looking at people who'd be half his age with half his energy and his view was you know to be successful you have to get your own health right and I took that message you know and I suppose I operated from there and and it certainly premier proof in to be correct you know when you're when you're under most pressure you know a session and the gym is is one of the best ways of dealing with it and getting it out and but also users have more energy to take on a problem and instead of look at David tomorrow you get I'll deal with it now so what changes did you make why the laughs mmm so I started going to the gym everyday so I trained and still train every morning at half six I started eating much better than I used to so I very rarely would eat pizzas or any those things no by the way anyone who knows me looking at me gone you eat loads of chartres chocolate I'm not a you know like I would eaves many salads as I kind of week plenty of Miche you know I'm not you know I don't have the cleanest of diets by any means and but I would be quite healthy and I'd be quite fish and I would I would see that as a hugely important element of of my day and my routine and you know and I think having downtime is critically important so you know some might know I mean you could call it lazy or whatever but I've never I've never worked late it's just never been a thing that I've done you know so I would have always been an early riser in into the office early and leave as have five and go home and try and switch off for a possible so I mean obviously once a month you'll end up writing a proposal will go on til midnight or whatever but you know they're few and far between and always have been so that's quite at odds with what a lot of other you know people who start businesses might say this you have to put in you know 12 16 18 hours a day sometimes to get it off the ground yeah and I'm sure I'm sure those and again I mean I would have been criticized by my own team for not doing it but you know our office you know except for the people who work late would would actually clear up our five quarters at 6:00 every day you know it's you know my view is if if everyone can't get to work on the day we need more people and there's something wrong and also my view is if you actually relax in the evening take the evening off you're far more productive the next day and and again you know in my case if I go to the gym in the morning I have a much better date and if I miss a gym so you know if I don't go to the gym I genuinely find you don't get as much done is that one of the kind of shall we call them Kevin isms that you share with other people say in the eoy Network other business people about how they should approach their own lives and treat their own staff yeah no I think one thing I have learnt all is is that you know what works for me might not necessarily work for anyone else so yeah so no I don't I don't tend to be pushing for his eyes on others but but certainly you know our team we would be very encouraging of our team to do you know to do training so like we do a thing if if somebody trains three days a week we pay for after gym membership to train five days a week we pay for it all you know we get healthy fruit balls in the office every day and you know we originally got the many at one ball for a week now it's like a ball a day and a big bowl of fruits actually and so you know we we very much encourage us and we're working with burner Brogan's company now pep talk and they're coming in and they've we all have an app in the office or kind of tracking or in teams I think of ten and so each team has a target number of steps and everything else good bit of banter between I'm dying to know what proportion of your staff are benefiting from that fully free membership gym membership how many of them are actually getting to the gym five days he promised to make what a couple yeah but again you know I can and you know we did some people who be you know gym memberships are expensive into a tree or four grand a year the personal training gyms so you know we would encourage everyone to do it but what people find and prickly an hour and hour business and you know can the time is often a challenge and we're trying to encourage people is look you know if you actually go to the gym you will get the time so if you spend a half an hour in the gym you'll probably save yourself an hour and the day by just being more focused is that one kind of aspect of the whole principle of kind of working smarter rather than working harder what other kind of Kevin isms either and in that field and so no I think so I'm I'm very much a people person so you know I I struggle with of the I suppose the challenges of modern business so you know if you take things like video conferencing which is an absolute necessity and and in our office in with four or five video conferencing pods and we worked them extremely hard every day with our customers and but you can never get away from a face-to-face meeting and a cup of coffee and shake hands with somebody so you know probably one of the Kevin isms is I do about 60,000 kilometers here he doesn't maybe even traveling between customers and I'd spend a huge amount of time on the road meeting people face-to-face and I think that's massively important personally and you know as we're scaling is a business that's become more and more difficult I suppose you know and the other thing I'm a huge fan of meditation and and I would probably again at the real bottom of the recession when things were just incredibly tough you know he didn't have enough money to clear your wages you you know you've the banks in telling you they're concerned your personal guarantees that are at risk of being called any of suppliers that you're not able to to pay on time we can't bike it to sell right so you lots of challenges and and I learned at that point about meditation and and I'd done meditation probably five times a week since 2009 what's your approach Heidi meditation well I do a number of things Andrew Johnson who's an app on the all the app stores I really like and I've probably been using that one for three or four years lots of the team would use headspace and you know loads of them at this point and but you know even even mantra meditation I find extremely extremely useful and valuable so where do you go to a special room or do you just do it in your office sir do you have an office no yeah no I do have an office no I don't do in the opposite of glass windows at the front so no I'll find a room and meet norm of the office clothes that are new to us probably mostly in the car so you know if I'm if I'm 20 minutes early for a meeting I might pop on a meditation at nighttime virtually every night should do one and then quite a lot of mornings you know if I get back from the gym to the office early I'll do one again in the car outside so yeah – – as many as I can in a week so I'd probably do maybe six hours over the course of a week of meditation and what does it feel like when you've you've you know come out of a session as it were well well for me you know I suppose well if I don't do them what happens is I think you know you can't see these 70 things that you need to get done and and it's very hard to get structured near the middle of one thing you're thinking about something else and for me what meditation does is it just slows down my mind and actually allows me to sit down and focus on what I'm doing and get it done and then start the next thing and you know draw up lists and you know just just the basic things and maybe they come natural to most people but for me I need a little bit of help from from we all do there's an app for everything yeah so what are you doing right now where is nostril is journey what's next so what's next is you know we've over the last couple years we've done a huge amount of work in I suppose understanding exactly what it is that we do right and so obviously we do good sourced IT but but for who and why you do people by office so we met lots of our customers and the key message we got back is you know we just make it simple for them so you know we we talk and play in English you know somebody says we're concerned about security we look at we see what they need we advise we put it in and then we tell them okay United secure right we can give you the detail behind it if you want but fundamentally we make sure they're okay and so once we establish that we started really growing because we started targeting you know I suppose messaging CEOs particularly and saying look you know our you know your backups are being done every night you know do you know if your system is secure do you know if you're patching all of your servers you know when to wanna crime oh did you know that you were okay do you know your antivirus is is a cross that we were you know do you know who has access to what information on the site and when you ask those questions often they're gone oh I don't know that I don't know we have backups I'm sure we do but I don't absolutely no and we often go in and do an audit for them and then handle macro reports and you know you do have good back up so you don't you do good patching don't and actually give them a you know as they often say for the first time every day know where they are I am and really from there we look and say well can we help we can we can manage the backup for you and give you a report once a month or once a week or once a day whatever you want and so we now know what we are and I suppose were really now on a growth strategy to add more customers and so for the first time in five or six years we're going to start doing some marketing and I'm trying to get ourselves out there a little bit more we've just completed our first acquisition as I mentioned an email and you know and supported by Bank of Ireland and AIB who are who are two suppliers and to actually use the bank for the company we bought and trying to you know really supportive overall Bank of Ireland up in our bank since day one and recently we've done some work with permanent ESPN and you know our view is all the banks are back open for business and they've been very supportive so our plan will be ruined – probably the first or second quarter of next year you know get 2018 out of the way which would be the first first year a really strong year in the business and then we're going to look at doing more acquisitions and acquisitions very much focused on getting people in so actually bringing in more expertise which is hardly higher yeah yeah and and then the second piece is obviously to get good customers so one of the things we've done a lot recently is companies where they're headquartered in Ireland but they have offices all across the world and so like we were working at the moment in South Africa in Australia and New Zealand in in the States in the UK loads of locations Netherlands Belgium and France so like you know we've we've customers who have offices all across the world and we're really good at remotely managing those locations and we hire partners to do the on-the-ground work of this record and so as well as we would like to have much more of a global reach Irish headquarters mmm and what about kind of doing new things as it were I mean you mentioned there the the the great advice you gave on things like security what about things like you know automation are you in that field and and I just wonder what road you think there's left to travel in terms of they think the digital revolution for for doing business yes okay it's a constant evolution right so if I look at technology today and you know and where it is everyone has the computer we log in we have our applications that we run and and and more and more technology is getting more and more straightforward so you know you know take an iPad as an example so you don't need an iPad or a technology person to set up an iPad right if you get an iPad no matter who it is even though even a five-year-old can take it out of a box and ultimately get it set up and functioning right and the five-year-old might need someone to help for the password and for the Internet but that's the boy – right and and technology is becoming more and more lockdown and I suppose when we look at it we're you know we're in five years time that the industry is gonna be the reality is our view is there would be less and less of the work that we do today in terms of putting in PCs configuring or management because they will become more and more iPad like where the user can just take it out plug it in it'll work more and more of our applications are going to be app based which again require very little input from us so we're we would see the industry going is we will become advisers and brokers and we were literally you know again deal with business owners who have a technology problem and we literally bring in you know solutions via apps for your iPad whatever and making sure that all the data is secure because you can if all your data is on your iPad and you lose it or you know a person brings it home then they have all the company data in their hands so we've to we have to look at where that that piece of ass so it's all in the cloud there's a lot of clouds in this country you clear skies but clarity goes Kevin O'Laughlin thank you very much for coming into thanks for joining us today on the architects of business thanks to our guest Kevin O'Laughlin our producer Patrick OE and all of the team here at Joe our program is made in partnership with a white entrepreneur of the year and next week tune in for our special edition with all the highlights from this year's awards ceremony I'm Ty gain rice thank you so much for being with us today and I hope to see you next week

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

Investing for Beginners: How to Invest in Real Estate



real estate investing can be an excellent way to diversify your portfolio and protect your wealth from the volatility of a stock market but with great upside also come great risk this is what you need to know if you're thinking about becoming a first-time real estate investor compared to other forms of investing buying real estate can require a large upfront deposit of cash if you want to purchase properties directly you'll need the money for a down payment maintenance costs insurance fees and property taxes if you're planning to become a landlord then you have to know the markets but you can properly price your rental do a market analysis of area of rent so that you can accurately determine what your incoming cash flow will really be this can be done through real estate websites like Zillow or you can call your competition directly and find out what they're charging for their property if you don't have the cash to buy properties directly you can invest in a real estate investment trust or re IP these investment vehicles allow you to purchase shares in a company that buys and owns income-producing real estate this is a good option if you don't want to be directly responsible for your investment properties for more investing tips visit go banking race calm