The real power of property investment

Infinite returns. There are only 2 asset classes that give them — business and property.

Getting rich is actually really simple. Who am I to talk about it? Nobody really, but I live a pretty comfortable life in a nice house with my family with lots of toys (bikes, cars, tech etc.), lots of free time, lots of travel, 3 full-time domestic helpers and I can pretty much come and go as I please (oh, and my wife works her tail off running the house, looking after the kids and flying gyrocopters, and she’s not one of the domestic helpers ;-), they’re there to help her and to keep me sane). That’s my definition of rich. If it’s not yours, let’s start there. How’d I do it? Read on, young padawan.

Define Rich.

Seriously. Don’t just say.. I wanna be rich. Be specific. I want to be x rich. $1million a year income rich.. or $10million a year. Whatever. Write that shit down. Allocate numbers. You’ll find your idea of rich is probably cheaper than you think. The only thing I’ll say about this point is write it down as a monthly number you require to live that lifestyle.

Don’t quit your job

If you have one already, don’t quit it yet. I’m not joking here. I don’t care what all the guru’s out there are telling you about do what you love and it’ll never feel like a job. Bullshit. Everything worth doing has elements of crappy work to be done within it to realise a profit, so it’s not all happy-clappy, even when you do what you love. I can tell you this from experience. I’ve pretty much only ever done what I loved (at the time, because my interests shift and change with my curiosity) and every single time, I’ve had days where I woke up and DID NOT WANT TO DO WHAT I LOVED ON THAT DAY. It sometimes does make it easier, though, if you happen to do what you love, to face those days. What I’m saying here, is you don’t have to necessarily quit your job to get rich. Work with me for a moment, and I’ll tell you why in a sec (if you aren’t bored already and stop reading right here.)

Create surplus income.

How, I here you shouting. Spend less than you make or make more than you spend. Get a part time job, sell some more of your time for money. Sell your old crap lying around the house. Stop buying more crap for 12 months. Teach something you know well for extra cash. Waiter. Bartend. Pay down your most expensive debt (check the interest rates and terms, pay down the most expensive one first). Once you’ve paid down the most expensive debt, you should have that repayment as a surplus now available to be used to pay down the next most expensive. If you don’t know how to check the interest rates or terms, here’s the usual list, in order: Clothing / furniture accounts. Unsecured, short term personal loans. Credit cards. Overdrafts. Car loans. House loan. Every time you settle one of them, take that repayment you were paying on the newly settled debt and apply it to the next one in line. You should be building an ever greater repayment amount while settling debt faster and faster.

Don’t fucking borrow more money!

Seriously,(unless you apply point 6 below correctly). I’m saying don’t borrow more money for cars and other shit. Just drive your old car for a bit longer until you’re rich. Then buy whatever the hell you wanna drive.

What now?

Ok, now you’re out of debt (if you followed that simple procedure, most people can get debt free within 5–7 years, including their primary residence). What now? Buy some property.

Seriously. Buy property.

I’m going to hear all the investment gurus and financial planners and fancy shmancy people out there selling all sorts of investment advice, investment products like endowment policies, unit trusts, retirement plans, stocks, bonds, gold, silver, blah blah blah. I don’t see many of them living my lifestyle and if anyone can show me one financial product that can produce an infinite return on investment, I’ll change my tune. There are only 2 ways that I know of to create an infinite return on investment.

1, Create a business from nothing with no money down (yes, you can do this and if you want the simplest method, just sell some of your time for money and when you have that money, use that to create a business). Just remember, your job is also a business.

2, Invest in property that you buy for free, with no money out of your pocket. Suspend your disbelief that this is impossible for a second. Go google how to buy property for free and then buy some books and whatever. If you’re too lazy for that, just believe me that it’s possible because I’ve done it, continue to do it and it keeps getting easier and easier once you know how. But, if you are too lazy for that, here’s a newsflash, you’re not going to get rich, motherfucker!

Wait it out.

Once you start buying investment property and you figure out that what I’m telling you in the point above is true and possible, just let time do it’s thing. Most people won’t even try… but if you do, you’ll realise that to become rich, really really rich, you simply need to have more income coming in than you spend without having to sell more time to get it. There are only two ways to do this (yes, I know I’m repeating myself here. I’m doing it on purpose so you get the point!)

1. Create a business and
2. Invest in property. Once you understand that it’s possible to buy properties for free, all you have to do is wait it out. The reason I mentioned you should create a surplus first, is that if you want to shrink the timeline to financial freedom, use that surplus to pay down the properties faster, but it’s not really necessary if you’re prepared to wait 15–25 years to get rich. Do you think any financial planners, who are incentivized to sell you product to earn commissions will ever show you how to get their products for free? Property is the only asset class that you can buy completely for free. Go google that shit, there are many smarter people than me that will show you exactly how to do it and there are hundreds of methods to follow to get it right.

Effectively, you create two pillars of wealth that prop up your lifestyle. Your income you create from selling your time (job/business) and your investments that you pour that money you create into so it can work to replace the need for you to continue selling your time for money. Pick the investments carefully and you won’t have to be in that job/business forever, unless you actually want to (you know, because you love what you fucking do).

Do you want more property specific investment tips that I’ve applied to get properties for free? I can provide it right from bottom of the range residential stuff through to multi-million dollar commercial / development projects… if you want it, I’ll keep writing. Up to you.

Ok, not quite retire now, but it’s a plan worth pursuing if you’ve got nothing else in pipeline to get you there!